The world has fundamentally shifted. The seismic events of the past few years – a global pandemic, rising inflation, and persistent economic uncertainty – have not only altered our daily lives but also had a profound impact on the world. They have profoundly reshaped the very fabric of consumer behaviour (Statista Plus, 2025). This has substantially impacted segmentation strategies. The familiar customer segments that businesses once relied upon are breaking down. This change is giving way to a new, more nuanced, and often contradictory consumer reality.

To thrive in this evolving landscape, businesses must move beyond traditional assumptions. They need to embrace data-driven insights to understand what truly motivates today’s buyers. A recent Statista Plus study, “The New Consumer Reality: Insights and Strategies for Shifting Markets” (2025), sheds critical light on these transformations. It reveals how businesses must adapt their strategies to stay aligned with evolving consumer expectations.

Shifting Value Perception: How customers use the price of a product to gauge its quality in an economy that is tightening.

One of the most significant shifts highlighted in the study (Statista Plus, 2025) is the re-evaluation of value. Consumers are increasingly making purchasing decisions based on a complex interplay of price and quality. This often varies dramatically by product category and demographic.

Key Shifts:

Everyday Essentials: Price Takes the Lead. Price sensitivity is rising for fast-moving consumer goods. Furthermore, the Statista Plus (Statista Plus, 2025) study reveals that 39% of consumers now prefer lower-cost food alternatives to premium brands, and additionally, 36% plan to switch to more affordable cosmetic products. The more frequently a purchase is made, the stronger the focus on discounts.

Durable Goods: Quality Endures, but Price Awareness Grows. While quality remains a dominant factor for high-ticket items like household appliances, consumer electronics, and automobiles, the landscape is not static. Forecasts indicate an apparent uptick in price-conscious buyers across these categories. This signals that even long-term investments are no longer immune to budget considerations.

Generational Divide: Younger consumers (under 40) tend to prioritise quality and trends, seeing products as extensions of identity. Conversely, older shoppers increasingly focus on a balanced price-to-value ratio. For them, value for money often outweighs luxury. This is especially true after age 50.

Income Dictates: Unsurprisingly, lower-income households are more price-conscious. Higher incomes allow for greater investment in quality. However, food is a notable exception. Regardless of income, most age groups (except those aged 18–29) are becoming more price-conscious when it comes to groceries.

Business Adaptation: “One size fits all” no longer works. Companies need to customise offerings, since a customer may want low food prices but expect high quality in a car. Strategic pricing, rather than blanket discounts, becomes paramount – clearly articulating the added value of a higher investment or offering flexible models, such as bundles and subscriptions.

Evolving Role of Brands: How are customers considering brands, and whether they can be trusted? 

In an increasingly competitive market, the power of a brand name alone is diminishing. While brands once served as an undisputed guarantee of quality and trust, their role is now undergoing a significant evolution.

Key Shifts:

Brand Loyalty Under Pressure: In everyday categories, brand relevance is declining. For many consumers, especially those in the food and furniture sectors, the label matters less than the direct value for money. This forces brands to re-evaluate their core promise.

The Shrinking Middle Market: Perhaps the most challenging trend for many established players is the “shrinking middle.” Consumers are increasingly polarising their choices, opting either for budget-friendly private labels or consciously investing in premium products. Mid-market brands, traditionally positioned around a balanced price-performance ratio, face immense pressure. They must clearly differentiate themselves from one another. The study (Statista Plus, 2025) notes a projected 6-percentage-point decline in mid-range buyers in the automotive sector. A 10-percentage-point rise in price-conscious consumers accompanies this.

Generational Trust: While younger consumers are influenced by trends, identity, and social belonging, often switching flexibly between no-name and premium based on look and experience, older generations (50+) prioritise consistency and reliability, consciously choosing well-known brands for durable products like cars and household appliances.

The Rise of Pragmatic Shoppers: More consumers are open to high-quality, lower-cost alternatives. The desire to switch brands is growing in the food (55%), household appliances (44%), and fashion (51%) sectors. This willingness to switch signals that “no-name” can be seen not as a compromise, but as a “smart choice.”

Business Adaptation: Brands Can No Longer Rely on Reputation. They must sharpen their profile, either through undeniable competitive pricing or exclusive quality and unique selling points. Building trust through transparency (independent reviews, product tests), offering genuine added value (personalised support, extended warranties), and fostering long-term loyalty through community initiatives are crucial. For mid-market brands, the imperative is clear: choose a lane – become a premium leader or an undeniable value champion.

Blurred Path to Purchase: Customers are approaching the marketing funnel’s decision-making process with more fluidity, which is shifting the emphasis on decision-making.

The traditional, linear customer journey is a relic of the past. Today’s path to purchase is dynamic, influenced by digital acceleration, social media, and the constant interplay of planned research and spontaneous impulse.

Key Shifts:

Merging Intent: The line between planned and impulse purchases is increasingly blurred. A customer who meticulously researches a new smartphone for weeks might spontaneously buy cosmetics or a fashion item. High-ticket items, such as household appliances, are planned in nine out of ten cases. Yet, social media and targeted offers can easily trigger an unexpected buying decision.

Digital Dominance, but In-Store Still Matters: Online comparison platforms and product reviews play a crucial role, with 45% of consumers relying on reviews for consumer electronics. Additionally, 51% use comparison platforms for household appliances. However, for complex purchases such as home improvement (43%), furniture (38%), and consumer electronics (35%), in-store consultation and expert advice remain highly valued.

The Power of Social Media: Social media can create buying trends overnight, as vividly demonstrated by the “Dubai chocolate” phenomenon. A viral TikTok video turned a simple product into a global scarcity and a luxury item. Brands that fail to react swiftly risk losing market share overnight.

Discount Drivers: Special offers remain a key driver of purchase. They influence 47% of consumers to make a spontaneous purchase. This trend is particularly true for older consumers (67% for those aged 50 and above). It is also true for middle-income households (62% for those with an income of up to €4,000 (AU$7,000)).

Business Adaptation: An agile, data-driven omnichannel strategy is non-negotiable. Businesses need to understand when consumers are strategic and when they are impulsive. This behaviour means being present and influential on price comparison sites and review platforms, while also leveraging social commerce and personalised offers to trigger spontaneous buys. Integrating online and offline channels seamlessly ensures customers can move fluidly between research and purchase points. Testing scenarios and continuously refining strategies based on real-time data will allow businesses to ride trends rather than chase them.

Adapting to the New Reality: Consumer behaviour is shifting, which is changing the strategic imperatives for businesses.

The shifts in consumer behaviour are here to stay. Businesses that acknowledge this and proactively adapt will be the ones that thrive. The “New Consumer Reality” study (Statista Plus, 2025) outlines five critical strategies:

1. Precise Positioning Beats the Indistinct Middle: Define What the Brand Truly Stands For. Differentiate through unique quality, competitive pricing, or a strong unique selling point to avoid being overlooked in the shrinking mid-market.
2. Strategic Pricing Instead of Random Discounts: Move beyond blanket discounts to a targeted pricing strategy that highlights added value. Explore flexible models, such as bundles or subscriptions, and create smart omnichannel purchase incentives.
3. Trust as the Key to Success: In an era of fading brand loyalty, trust is paramount. Build transparency through independent reviews and product tests, offer genuine added value like personalised support or extended warranties, and foster long-term loyalty through community initiatives.
4. Understand Target Groups Precisely and Address Them Effectively: Leverage analytical tools and undertake ongoing analysis of customer data to identify behavioural patterns early. Expand digital visibility across all relevant platforms and collaborate with strong partners for enhanced data solutions.
5. Connecting Strategic Purchases with Spontaneous Impulses: Master both dynamics by creating targeted, personalised offers based on customer interests. Implement flexible pricing and enhance omnichannel models to seamlessly integrate online and offline channels, achieving maximum impact.

The post-COVID market environment is complex. But the complexity also presents immense opportunities for those willing to adapt. However, by understanding the nuances of the new consumer reality, including shifting value perceptions, evolving brand loyalty, and fluid purchase paths, businesses can strategically align their offerings. They can build deeper trust and unlock sustainable success in this dynamic new era. The time for guesswork is over; the era of data-driven, agile adaptation is now here to help you manage your segmentation effectively.

Reference

Statista Plus (2025). ‘The New Consumer Reality – Insights and Strategies for Shifting Markets’, Statista