Rethinking Value During a Cost of Living Crisis

Key insights

6 takeaways

01
81% of consumers report being directly impacted by the current economic climate, necessitating a shift from traditional price-based messaging to strategies that emphasize personal agency and shared values.See it on page 40
02
Social capital is increasingly derived from 'knowledge flexing' and DIY expertise rather than material acquisition, with 69% of social media users in the US and UK relying on influencers to find cost-effective alternatives.See it on page 16
03
Consumers are adopting 'de-influencing' and 'artisanal peacocking' to gain status through the ability to navigate economic constraints, signaling a move away from luxury spending as a primary status symbol.See it on page 11
04
Brands must pivot toward facilitating community-led knowledge sharing and authentic, lo-fi content to maintain loyalty among consumers who are skeptical of institutional promises.See it on page 18
05
The 'tactical extravagance' trend shows that consumers will continue to prioritize specific, curated luxury experiences even while practicing broader austerity in their daily spending.See it on page 32
06
Gamifying the customer experience and emphasizing the 'joy of savvy' spending are essential tactics for providing the utility and emotional relief required to retain consumers during periods of financial pressure.See it on page 33

Summary

The global cost of living crisis is fundamentally reshaping consumer behavior, forcing a transition from traditional consumption patterns toward a redefined, multifaceted concept of value. As economic instability persists, individuals are increasingly skeptical of institutional promises and are actively rebelling against wealth inequality. This cultural shift is characterized by a move away from material acquisition as a status symbol, replaced by a focus on knowledge, sustainability, and personal agency. Data indicates that 81% of people feel directly impacted by the current economic climate, with 69% of social media users in the US and UK relying on influencers to identify cost-effective alternatives.

The analysis identifies four primary behavioral frameworks emerging from this crisis: new materialism, knowledge flexing, performative denial, and deliberate living. Consumers are increasingly engaging in "de-influencing" and "artisanal peacocking," where social capital is gained through DIY expertise and the ability to navigate economic constraints rather than through high-end spending. Simultaneously, younger generations are utilizing "recession-core" aesthetics and role-playing to cope with financial pressure, while others prioritize "tactical extravagance," protecting specific luxury experiences despite broader austerity.

For brands, the findings suggest that traditional price-focused messaging is no longer sufficient to maintain consumer loyalty. Success in this environment requires facilitating community-led knowledge sharing, embracing lo-fi and authentic content, and gamifying the customer experience to provide both utility and emotional relief. By shifting focus toward shared values, transparency, and the "joy of savvy" spending, brands can remain resilient. Ultimately, the research concludes that in an era of economic flux, value is increasingly determined by what a consumer knows and how they curate their lifestyle, rather than simply what they can afford to purchase.