ROME (ITALPRESS) – With the prospects of a possible global economic slowdown in sight, consumers are refining their tactics to successfully navigate through this uncertain economic phase. According to an unpublished analysis from Afterpay based on proprietary and external data, spending habits are prudent mixed with concessions to small occasional whims. Distinct generational preferences emerge, with Gen Zers seeking comfort primarily in clothing and accessories, and Baby Boomers preferring to pamper themselves with travel and groceries. Brands are reacting to this dynamic scenario by integrating online and in-store experiences, in order to maintain a high percentage of customer loyalty and engagement. Sectors such as Fashion, Wellness and Beauty are adapting to respond to the growing demand for authentic and effective, while the Home and Garden sector is experimenting with a new attention to comfort and the improvement of living spaces for both work and relaxation. Children’s products are also inspired by adult trends, promoting inclusivity. The majority of consumers (55%) prefer to shop in stores that offer engaging experiences. Meanwhile, about a third of professionals say their companies are exploring experiential store formats. Currently, in the retail sector, the distinction between e-commerce and physical store sales is becoming increasingly blurred, with brands understanding the importance of mastering their omnichannel strategy and seeking to seamlessly integrate online and in-store experiences. Italians confirm a predilection for seasonal and promotional events such as Black Friday, Christmas and summer sales, during which transactions increase significantly. They mainly shop during the week and during lunch breaks, with Wednesday standing out as the most popular shopping day.” From our analysis a picture emerges of e-commerce which confirms its growth at a global level, estimated at over 7.5 billion euros by 2025 despite the complexities of the international macroeconomic context – comments Andrea Fumagalli , Country Manager Italy of Scalapay (in the photo) -. In these terms, the profile of our over 6 million consumers is that of people who are more informed, aware and prudent in terms of spending but not willing to give up small occasional luxuries. The favorite shopping categories are confirmed to be those linked to lifestyle and small daily pleasures (Clothing 26%, Shoes and Accessories 14.5%, Beauty 18.3%, Home and Garden 11.6%) whose product searches on our platform (website or app ) recorded a dramatic increase compared to the previous year, in some cases up to 320%. It seems clear that in these terms Buy Now Pay Later represents a real opportunity for retailers not only due to the significant increase (48% on average) in the average purchase amount and in the conversion at checkout (11% on average) but above all to allow its customers to realize their dreams or satisfy small desires, while maintaining control of their expenses”. Luxury is the category with the highest average order among Afterpay users in Italy in 2024 (464 euros). In 2023, the global luxury market reached an estimated value of 1.5 trillion euros, marking an increase of at least 8 percentage points compared to the previous year and setting a new record. Generations X and Y are the main drivers of luxury purchases, while Gen Z is influencing brand strategies with their focus on experience and meaning. By 2030, Gen Z is expected to contribute 25-30% of luxury transactions, and Millennials 50-55%. Despite the growth of online shopping, the offline segment remains important for luxury thanks to the unique sensory experience with brands focusing on expanding existing stores to offer more personalized and engaging shopping experiences. In 2024, fashion is experiencing gradual but stable growth, with luxury brands showing slightly superior performance compared to lower-end brands. Ecommerce sees fashion and clothing emerge as the main spending category for consumers, a trend confirmed by data from Afterpay. Sustainability is at the center of attention for both brands and consumers. Interest in second-hand clothing is on the rise, also reflected in Afterpay data from 2023. However, although 84% of customers prioritize sustainability in their purchases, they are less likely to pay premium prices for sustainable items A significant trend is the potential of Virtual Fitting technology, which allows customers to try on items virtually through live video feeds on their mobile devices. The average value of Fashion orders from Scalapy users in Italy in the current year is 120 euro.Forecasts indicate an increase in sales for the beauty industry of 6% per year globally. By 2027, e-commerce is expected to represent 25% of the market. Value and effectiveness are sought in products, opting for brands that offer authentic results rather than the most popular ones. Loyalty is no longer a given, with consumers increasingly willing to experiment with new products. The concept of the “lipstick effect”, which indicates the tendency of consumers to make small purchases even during periods of economic uncertainty, has extended beyond make-up to skin care, reflecting the desire for accessible yet accessible self-care rituals. rewarding. Generational differences are evident. Generation Z, in particular, is value sensitive. Unlike Millennials, they are less likely to believe that expensive products are more effective, showing a pragmatic approach to purchases. Both generations are attentive to sustainability, preferring socially responsible brands. The average value of Beauty orders recorded by Afterpay in Italy in 2024 is 99 euros. In recent years, self-care has transformed into an influential movement, involving various aspects of well-being in a holistic approach. The wellness industry, now valued at $1.5 trillion, is poised to grow even more, with a forecast of 5-10% annual growth through 2027. This increase is primarily driven by younger generations, with 73 % of Gen Z and 65% of Millennials demonstrate a strong interest in health, compared to 54% of Gen X and 47% of Baby Boomers. Consumers interested in wellbeing are increasingly attentive to ingredients, pushing the demand for ‘clean’ products without artificial additives. According to Scalapay data, the average value of Health and Wellbeing orders placed in Italy in 2024 is 80.13 euros. The global home furnishings and furnishings market was valued at $516.66 billion in 2022 and is expected to grow to $780.43 billion by 2030. The pandemic and the spread of remote working have brought a significant change. Millennials and Generation Z, aiming to buy a home, have often found themselves making compromises due to rapidly rising prices and high interest rates. As many have opted for smaller or older homes, they have increased their purchases in the sector. Furthermore, the increase in remote workers has favored a greater purchase of products to improve working environments and home comfort. The average order of the Home and Garden sector of Scalapay users in Italy in 2024 is the second by value, after the luxury, at 256.04 euros. The global children’s clothing market is growing rapidly, rising from $187.29 billion in 2022 to an estimated $318.34 billion by 2030. In the children’s fashion industry, there is a clear trend towards closer alignment with adult clothing. More and more gender-neutral and inclusive designs are emerging, challenging traditional stereotypes. Modern parents are looking for clothing that offers comfort and longevity, with high-quality fabrics that stand up to daily activities and regular washing. The preference for materials such as organic cotton reduces the risk of irritation and allergies in more sensitive children. Durability and sustainability are key values, with an appreciation for items that can be passed on to younger siblings or relatives. In Italy l The average order of the segment by Scalapay users in 2024 is 147.14 euros. – Photo Scalapay press office – (ITALPRESS).
