Consumer confidence in the UK has taken a significant hit. According to the latest EMEA Consumer Navigator Report from dentsu, which surveyed 2,000 people across the UK at the end of February, four in five of the UK population believe the economy is in poor shape, with nearly half of us struggling to afford some essentials such as food, utilities, and housing in the past month. This economic strain is forcing people to re-evaluate their spending habits, but rather than simply cutting back across the board, they are making more deliberate choices about where and how they spend.
For brands, this presents both challenges and opportunities. Understanding the shifting consumer mindset is essential for marketers looking to navigate a complex landscape, where engagement strategies need to evolve across media, customer experience, creative, and business transformation.
The changing nature of spending
Amid financial uncertainty, consumers are focusing their budgets on essentials, with groceries being a major area of increased spending. At the same time, larger discretionary purchases such as designer clothing, new technology, and home appliances are being delayed or avoided altogether. Yet, despite tightening their belts, many consumers are still finding room for smaller indulgences. Eating out and ordering fast food have seen an increase, highlighting the fact that even in difficult times, people seek moments of comfort and enjoyment.
This shift has clear implications for brands. Advertising and content strategies must align with the changing priorities of consumers, ensuring that messaging appears in the right context. Moments of affordability and treat-seeking are now key considerations, and brands that understand when and how consumers are most receptive will be in a stronger position to maintain engagement. Equally, the customer experience must be frictionless. With consumers making more considered decisions about how they spend their money, a seamless and convenient digital experience is no longer a luxury but an expectation.
Creatively, brands need to strike a delicate balance between acknowledging financial concerns and offering an optimistic outlook. Aspirational messaging may need to evolve, with a greater focus on attainable luxuries and the idea of rewarding oneself in small but meaningful ways.
The rise of social commerce and app-driven engagement
One of the most significant shifts emerging from the research is the growing role of social commerce. The report reveals that one in five shoppers plans to make a purchase through social media in 2025, with this number rising sharply among younger consumers. For Gen Z, platforms such as Instagram and TikTok are increasingly becoming spaces not just for inspiration but for direct transactions. The trend extends beyond retail, with a notable proportion of Gen Z saying they would even book travel through social platforms.
At the same time, apps are becoming the preferred way for consumers to manage their finances. Almost half of those surveyed expect to use an app to transact in 2025, and for millennials, this figure jumps even higher. While the move towards digital convenience is unsurprising, the research also highlights a countertrend: Gen Z, despite being digital natives, report a stronger preference for in-person banking than other generations. This suggests that while digital interactions dominate, there is still a need for human connection and reassurance, particularly when dealing with complex financial decisions.
For brands, this means that investing in social commerce capabilities is no longer optional. The seamless integration of shopping experiences into social media platforms will be crucial, as will the ability to provide intuitive, app-based interactions. Storytelling must also evolve, with a greater focus on short-form, interactive content that aligns with how younger consumers engage with brands.
Value, trust, and the evolving nature of loyalty
With economic pressures mounting, value for money is naturally becoming a greater priority, but consumer decision-making is not driven by price alone. The report highlights that loyalty schemes and rewards are particularly important for older consumers, with many Gen X and Boomer shoppers factoring these into their brand choices. For younger generations, however, personal values play a much bigger role. Sustainability, ethics, and brand purpose are key considerations for Gen Z in particular, influencing whether they engage with a brand or look elsewhere.
Trust also remains a critical factor, especially in the financial services sector, but its importance varies across generations. While older consumers are more likely to prioritise trust in their decision-making, younger generations place greater emphasis on other attributes such as convenience, ease of use, and digital-first experiences.
For brands looking to build stronger relationships with consumers, personalisation is becoming increasingly important. AI-driven insights can help tailor offers and experiences to different demographic groups, ensuring that loyalty schemes, rewards, and pricing models resonate with the right audiences. Meanwhile, brands that clearly communicate their values and demonstrate authenticity will be better placed to win the trust of younger consumers, who are more attuned to purpose-driven marketing.
Business transformation and the road ahead
Beyond immediate shifts in consumer behaviour, the research highlights a broader need for brands to evolve in response to long-term structural changes. Economic uncertainty is not a passing phase but an ongoing reality, and businesses that adapt with agility will be in the strongest position to thrive.
Personalisation will continue to be a major differentiator, with AI and predictive analytics playing an increasing role in anticipating consumer needs. At the same time, retail media is set to expand, as brands seek more efficient ways to allocate advertising spend and measure outcomes. Connected experiences, both online and offline, will also become more important, as consumers expect seamless interactions across multiple touchpoints.
For marketers, this means thinking beyond short-term campaign strategies and focusing on business transformation at a fundamental level. Customer experience, data-driven decision-making, and brand authenticity will all be central to success in 2025 and beyond.
What this means for brands
The findings from the EMEA Consumer Navigator Report make it clear that brands must evolve to meet the changing expectations of consumers. People are adjusting their spending habits, shifting towards more considered purchases, and placing greater emphasis on value, trust, and convenience.
Marketing strategies need to reflect these shifts. Brands that successfully position themselves around affordable indulgences, invest in digital-first experiences, and communicate their values in an authentic way will be best placed to maintain consumer loyalty. Meanwhile, those that embrace data-driven decision-making and invest in business transformation will be able to navigate an uncertain future with confidence.
To explore these insights in greater detail and understand what they mean for your brand, download the full EMEA Consumer Navigator Report or get in touch with dentsu to discuss how these trends can inform your strategy.