Like in all economic downturns, cost-conscious shoppers may be reducing their discretionary spending overall, but there's still a desire to indulge in small, everyday luxuries. According to behavioural economist 

, this is even more heightened in the current recession due to the pandemic's collective, still lingering trauma. 

, in particular, is helping younger people stay on top of their spending while making room for occasional treats. 

 has introduced a 'Naughty Rule' saving feature to help users find a comfortable middle ground between sacrifice and indulgence. Premium brand John Lewis has also been reinventing itself with a pledge to be there 'for all life's moments', aiming to connect with the 

 of Britons who agree that it's still essential to experience moments of joy despite rising living costs. While consumers are highly adaptable to new economic circumstances, research on 

 shows that habits die hard; they will change and adapt to new situations when met with a challenge but they will return to their normal behaviours as soon as possible.

Despite the cost of living crisis, the luxury sector is seeing growth, especially among Gen Z. A Vogue Business 

 from early 2023 found that around 60% of Gen Zers had made luxury purchases in the previous 12 months, while just 18% of Boomers did the same. Research from 

 suggests that the increased number of young people living with their parents is partly responsible for the increased popularity of luxury goods like handbags, jewellery, and watches. Consumers of all ages are keen to spend to feel good, celebrate and connect with others, especially during the holiday season. A recent report found that many Muslim consumers plan to increase their 

 spending in 2023, with people in UAE prioritising deals as they find the right gifts for their loved ones. 

 was also big in the US in 2022, with 40% of American shoppers reporting a desire to splurge.

Consumers are beginning to recognise the danger of easy spending and debt. When 

 to offer a BNPL option, not even its 0% interest rate proved enough to convince the public that this was an ethical move. Similarly, while the recent introduction of 

 feature is still in its early stages, it's unclear whether the company will implement additional safeguards to help users make more informed borrowing decisions. "It's clear that consumers are looking for viable credit options to help them through, but they’re being more demanding and want flexible credit options and to be able to manage repayments," 

, the European strategy director at Marqeta. 

 shoppers were once known for their willingness to use BNPL schemes to finance their purchases – however, the pandemic and rising inflation have prompted many to take a more cautious approach to debt. According to Canvas8 research from June 2022, just 11% of Gen Zers said they had used BNPL services in the last six months.

of Britons agree it's still essential to experience moments of joy despite rising living costs 

Faced with double-digit inflation, Britons are tightening their belts and cutting back on non-essential spending – but treats aren’t totally out of the question. From affordable luxuries to stripped-back hedonism, how can brands cater to this balancing act between luxury and saving?

How are Britons treating themselves amid inflation?

The cost of living crisis has forced many older Britons to reassess their finances, and buy now, pay later solutions are emerging as a popular solution for this demographic. How are retailers encouraging the use of this form of credit, and how can they protect users from any negative impact?

Why are older Britons turning to BNPL?

Conscious consumption continues to grow among HNWIs. This shift in mindset – driven, in part, by Gen Zers – sees many place authenticity as a top priority when buying high jewellery pieces. But why are HNWI shoppers embracing circular jewellery? And how can luxury labels tap into this shift?

How are HNWI shoppers embracing circular jewellery?

For its 140th anniversary, Breitling has launched a heritage-inspired pop-up museum. Visitors explore its history via the Time Tunnel and its air, land, and sea "universes." The experience appeals to Gen Z's love for experiential retail, highlighting a shift toward heritage-focused branding.

Breitling immerses visitors in its history with pop-up

Net-A-Porter x King's Foundation champions local craftsmanship and sustainability with community training programs for new talent. The initiative highlights how luxury brands can build deeper connections with their audiences while fostering local talent and building long-lasting, enduring value.

Net-A-Porter spotlights local craft and community values

IKEA has launched a peer-to-peer marketplace in Madrid to help customers sell their unwanted furniture directly to others. As the shift towards circularity gains momentum, brands that adopt eco-driven business models can extend their lifespan and deepen consumer trust and long-lasting loyalty.

IKEA trials peer-to-peer marketplace in circularity push

As the realities of climate change start to threaten the production of raw ingredients, businesses are having to pioneer adaptable strategies to meet demand. Production in the cocoa industry is especially high stakes. Innovation is becoming a core strategy to build trust and solve supply challenges.

Cocoa industry uses sustainable solutions to build trust

Down under, Australia is feeling the pinch of the cost of living crisis. While tightening their belts, they’re also manifesting their aspirations online through Pinterest – surpassing half a billion users in 2024. What does this exhibit about what Aussies are looking for in online platforms?

How Pinterest inspires Aussies through lifestyle curation

Fashion rental platform Rent The Runway is at the forefront of this sector’s revival, thanks to an influx of Gen Y and Z intrigue, smart use of AI, and a wildly successful thread of IRL events. So, what can brands learn from this thriving subsector of sustainable fashion?

How Rent The Runway renews fashionistas' eco values

Bookshop.org has launched a buy-back scheme, offering readers website credit in exchange for used books. As conscious shoppers look to balance ethical consumption with time constraints and financial strain, the move helps bridge the value-action gap by making sustainability a more convenient option.

Bookshop.org is incentivising ethical consumption 

Novel offline experiences help people to merge their online identities with a desire for meaningful IRL engagement. Maison Kitsuné’s pop-up in Shenzhen, with pastel colours and quirky activities, makes for ideal social media content, while also tapping into the desires of Chinese audiences.

Maison Kitsuné launches in Shenzhen with playful pop-up

Survey data shows that American Gen Zers are increasingly relying on social commerce for their holiday shopping sprees. In line with young people’s changing festive shopping habits, there’s an opportunity to get creative with interactive immersion to augment the joys of holiday gifting.

Gen Z take social-first approach to holiday shopping

Longchamp is set to host a multi-city pop-up installation to celebrate the launch of its AW24 collection. Beyond a desire to establish a community and cater to new shoppers, this move highlights the importance of creating memorable shopping experiences rooted in hyperlocal identities.

Longchamp’s multi-city tour courts experiential shoppers

Prepackaged cups of ice have been flying off the shelves of Chinese convenience stores this summer. As people continue to look for affordable indulgences, cost-conscious young shoppers are experimenting with drink combos to make cheaper cold beverages that don't involve a trip to a cafe.

Chinese audiences turn to ice-cups for affordable drinks

Netflix has partnered with Google to introduce shoppable features and ads to promote season 4 of Emily in Paris. The collaboration highlights the importance of directly engaging with superfans through innovative and exclusive offerings that help to further immerse them in their favorite worlds.

Netflix x Google offer fans immersive retail experience

Stores selling animation and gaming merchandise are gaining popularity among Chinese youth as places to connect with like-minded peers. With fandoms providing a crucial source of community building among Gen Z, ‘Guzi’ stores are generating appeal by creating moments of connection and belonging.

‘Guzi’ stores offer community retail for Chinese youth

After winning the hearts and wallets of British shoppers, Lidl has partnered with New York-based designer Nik Bentel to make a foray into fashion. The partnership will see the launch of a Croissant Bag, tapping into the supermarket’s cultural influence and people's interest in novel collaborations.

Lidl croissant bag taps into novel collaboration hype

India has a ghost mall problem, but omnichannel retailing might be the answer, especially among experienced and value-seeking Tier-2 city residents. What can brands do to connect to this growing market, and what does it say about what Indians are looking for when they shop IRL?

What do Indians want when shopping IRL?

Rodarte has created a capsule collection inspired by the upcoming film Beetlejuice Beetlejuice, available exclusively at Saks. Luxury and pop culture collaborations are courting younger fans who consider fandoms a key part of their identity, allowing them to signal their status and self-expression.

Saks-exclusive Rodarte collection targets Beetlejuice fans

Inspired by the success of brands, Lidl launched a limited edition set of GBP 20 ($26.4) mystery boxes for shoppers in the UK. Each box contained items usually found in the retailer’s notoriously eclectic middle aisle worth over GBP 100 ($132.2), meeting desires for thrifty indulgence.

Lidl’s middle aisle mystery boxes promote cheap splurges

Battling loneliness and tech fatigue, many Gen Zers are developing bonds with inanimate objects like water bottles, plushies, and journals. What do these emotional support objects reveal about young people’s sense of self and security amid personal, financial, and political uncertainty?

Why Gen Zers love emotional support objects 

Chinese beauty shoppers are becoming increasingly price-sensitive, and higher-end retailers like Sephora are feeling the heat. After incurring losses, the brand announced job cuts to its workforce in China, reflecting an economic and purchasing downturn.

Sephora China job cuts reflect spending slowdown

Data has revealed that Gen Zers are 'too busy' to follow a skincare routine and that multi-step practices often fall by the wayside. As skin maintenance gets more complex, people are looking to reduce the number of steps taken and are choosing an ingredient-focused approach instead.

Gen Zers 'too busy' to follow skincare routines

Returns have become a significant aspect of consumer culture in America, largely due to the widespread embrace of e-commerce. Yet while this service makes the shopping journey more convenient – often at no extra cost – it presents a major challenge for online retailers. What’s the solution?

What are the new norms of return culture in the US?

Political polarization, social shifts, and economic pressures are reshaping how Americans celebrate major holidays and personal occasions. Canvas8 spoke to eight people across the country to find out more about how they approach gatherings, hostings and traditions in the shifting world.

How are Americans celebrating special occasions?

As people in the UK continue to grapple with the cost of living crisis, it's having an impact on celebration spending for Christmas, Eid, Diwali and other occasions. Canvas8 spoke to eight people across the country to find out their takes on gift-giving, festive meals and shared entertainment.

How are Britons celebrating special occasions?

With the US government passing legislation in 2024 that would force the China-based owners of TikTok to sell the app, there’s a strong possibility that the entertainment-come-shopping platform could be banned. How might this risk the health of small businesses and drastically alter trend cycles?

How would a US TikTok ban impact social shopping habits?

Research has found that most infant and toddler foods sold in Australia fail to meet the WHO’s nutritional standards. As young parents have to navigate an overwhelming information landscape, brand credibility and trust will factor into their purchase decisions more saliently than ever.

Aussie parents faced with misinformation on baby food

As people grapple with a prolonged cost of living crisis, they’re continuously reconsidering their budgets and the ability to make them go further. Some are searching for cheaper ways to splurge and treat themselves, causing a shift in traditional notions and processes around luxury purchases.

Cheap Splurges

With an ever-expanding choice of products and retailers, people want shopping to be more than just a necessity or entertainment – many are viewing it as an activity that grounds them in the fast-paced and turbulent world. While some reach for tangible objects as a source of emotional comfort, others are using online and in-person shopping to connect with like-minded peers.

Purchase Communities

Why are city stores becoming third spaces, culture hubs, and peaceful sanctuaries? What drives how people spend on holidays, milestones, and cultural moments? Why are people seeking lasting emotional comfort from their purchases? Will cost-effective shopping change luxury for good?

Shopping Sector Snapshot: August 2024

Cultural shifts and economic challenges are driving a change in spending for holidays, milestones, and cultural moments. People are becoming more sceptical of occasions and promotions that are seen as purely for profit or outdated in terms of cultural attitudes. The appeal of coming together to celebrate, however, remains evergreen.

Celebration Shopping

From multi-store grocery shopping to shrinking living spaces, people are looking for brands to better cater to shifts in urban living. City centres can be exhilarating at best or overwhelming and anxiety-inducing at worst. In turn, retail spaces can act as accessible hubs to engage with local culture or offer a peaceful moment to relax and reset away from the hustle and bustle.




City Commerce 

Sinéad O’Dwyer’s SS25 showcase at Copenhagen Fashion Week has made headlines for its boundary-pushing commitment to equity on the runway. As inclusion efforts seem to have taken a backseat in the fashion world, the brand offers a blueprint on how to resonate with representation-hungry customers.

Sinéad O’Dwyer moves the needle on inclusive fashion

As Americans struggle to make ends meet, credit card balances are skyrocketing, with young spenders falling into delinquency at higher rates. While an inflationary economy has eased, many young Americans are still struggling to keep afloat and risking their economic future to do so.

Young Americans fall behind on credit card payments

The Mid-Autumn Festival's influence stretches globally, touching billions of people of Chinese descent. Specifically, Southeast Asia houses the largest concentration of China's diaspora. What do the region’s localised celebrations of the event look like, and how can brands connect with its citizens?

How have Southeast Asians localised the Mid-Autumn Festival?

The user base for ingredient scanning app Yuka is growing, but it’s attracting criticism around its reliability. As the wellness boom continues, health buffs are turning to alternative sources of authority, but there’s a need for brands to foreground a balanced, science-backed approach.

Yuka app gains traction with health-conscious shoppers

’Tis the season to gift, browse, and shop. Aussies haven’t lost any appetite for the Christmas season as a majority of the country continues to celebrate despite rising costs of living, spending most of their time and money with family. How can brands tap into the country’s holiday spirit?

How are Aussies shopping for Christmas?

Due to community feedback, The Ordinary is expanding into a new body care product category. The new line features affordable, ingredient-focused products. Building on its trusted reputation of straightforward education and accessibility, the brand has also found success on TikTok.

The Ordinary expands reach with body care on TikTok Shop

As more Chinese women advance in their careers, many are splurging on themselves. More than just shopping, these purchases are forms of self-care and self-discovery. In 2024, a ‘she-economy’ is rising in the country, with brands specifically targeting women and their new wants and needs.

Exploring China’s surging she-economy

Nibble AI, a chatbot that haggles with customers on behalf of online shopping platforms, has gained notoriety across the internet for the novelty of getting savings from a chatbot. This points to a growing gamification of shopping experiences via AI, as money worries push shoppers to deal hunt.

Nibble AI changes sales culture with haggling chatbot

Warner Bros., Roblox, and Fandango have teamed up to launch a virtual box office for the upcoming Beetlejuice sequel inside of the online gaming platform. Brands are moving onto gamified platforms to reach younger audiences, providing shopping experiences that bring together the physical and virtual.

Warner Bros. taps Roblox to reach new Beetlejuice fans

Anti-immigration violence in the UK has significantly impacted high streets, with local small businesses bearing the brunt of the damage. In the face of fragmentation, brands have the opportunity to make their values clear and help local communities repair and heal their streets. 

Far-right riots highlight need to rebuild community

With an unpredictable economic climate and a divisive election looming large, the 2024 holiday season is full of uncertainty – yet retailers’ profits depend on December as a bumper month. So, what do Americans want from in-store experiences, and how can brands meet their holiday expectations?

What do Americans want from in-store festive shopping?

Despite calls to de-stigmatise menopause, many women lack basic knowledge of its symptoms, let alone confidence to talk about it openly. Addressing this, Morrissons has unveiled dedicated bays to raise awareness of menopausal symptoms and offer women experiencing them targeted products.

Morrisons targets knowledge-gap with menopause campaign

Currys is looking to make shopping more accessible for customers with disabilities through a new app that allows people to pre-register specific requirements before a store visit. Demonstrating increasing awareness of disability needs, Currys' personalised approach speaks to changing expectations.

Currys supports inclusive shopping with assistive tech

Credit Karma reports that US Gen Zers continue to be influenced by social media when it comes to overconsumption, but they’re also resisting the allure of influencer-driven purchases. As brands navigate these tensions, there’s an opportunity to invest in non-paid UGC to drive long-lasting loyalty.

Young Americans fight back against overconsumption

Due to changes in price and fashion trends, younger generations in India are changing how they look at gold jewellery. They prefer minimal, stylish, low-carat designs over traditional heavy pieces meant for investment. What can brands learn from this shift, and where is this change headed?

Why do Indian Gen Y and Z want minimalist gold jewellery?

Social media is increasingly becoming a key channel for driving Gen Z purchases, as more platforms offer a one-click shopping experience that doesn't require leaving the app. With high expectations for seamless and convenient shopping, one-stop shopping experiences win favor with this cohort.

Study shows social media drives Gen Z retail behaviours

Chinese collectible toy retailer Pop Mart has opened its fourth store in Paris at the Louvre. As the blind box frenzy hits European shores, character goods lovers are seeking out immersive retail experiences that bring the joys of kidulting to life and enrich their engagement with IP worlds.

Pop Mart’s Louvre store sets sights on European kidults

With two incomes and no kids to spend their cash on, DINKs can splurge how they like – whether that’s on vacations, fancy dinners, or lavished pets. Christmas is an ideal time for brands to capture this group’s attention, but how can they appeal to their expectations and interests?

How can brands tap into DINKs' festive spending habits?

Thrifting is becoming more popular in Japan, driven by the rising cost of goods, weakening yen, and shifting attitudes towards sustainability. With the fashion industry among the top polluters worldwide, brands face new challenges to meet the needs of fashionable but price- and eco-conscious youths.

Behind the sustained rise of thrifting in Japan

Conversations around AI are often derailed by an existential fear that this fast-developing technology will engender a global catastrophe. Canvas8 spoke to Henry Coutinho-Mason about resisting the lure of the extreme when imagining the future of human-centred innovation.

Henry Coutinho-Mason on the future of consumer trends

Fast fashion giant SHEIN will open its first pop-up in Johannesburg, offering audiences serendipitous encounters with fellow brand fans. Even as digital-first brands nurture digital communities, the power of IRL activations offers a chance for deeper engagement and brand discovery.

SHEIN hosts curated exhibition pop-up to court fans IRL

Increasing awareness, economic independence for women, and a celebrity maternity culture are making pregnancy ‘cool’ in India, leading to tremendous growth in the maternity products and services market. What does this mean for brands looking to break into the country’s health and wellness sector?

How maternity products are changing India’s pregnancy landscape

Southeast Asia is emerging as a key location in the luxury landscape, with global brands courting the interest of the region’s high-end clientele. Countries like Thailand and Vietnam are also surpassing well-known destinations, like Singapore, in market size as they cater to wealthy shoppers.

How are Southeast Asian shoppers changing luxury?

Japan’s favourite flea market app, Mercari, is hitting multiple birds with one stone. Its website offers second-hand items to the masses and is an outlet for the Japanese people’s stockpiling behaviour – all while innovating with crypto and becoming the government’s aid to recycling waste.

How Mercari helps Japanese people declutter their lives and homes

The US economy may be performing well, but at a more domestic level, many families continue to feel financial strain. With the pressure of back-to-school purchasing heating up, Dollar General has rolled out generous discounts on a range of its products designed for both pupils and teachers.

Dollar General relieves back-to-school shopping anxiety

Research has found that a third of Australians will begin their holiday shopping before October, and one in ten will start before July. However, the bigger challenge for brands will be how they appear at the varying touchpoints at which Aussies like to start their shopping journeys.

People, not just brands, are planning Christmas in July

Costco has begun selling an apocalypse-ready emergency bucket stocked with meals that last over two decades in preparation for emergencies. As the future becomes more uncertain amid heightened social tensions, people are looking for tools to give them feelings of long-term security.

Costco's doomsday buckets signal desire for preparedness

Gucci's cultural initiative aims to pay tribute to the heritage of Korean culture by spotlighting the work of those who have brought local arts to a global stage. Luxury brands are localising their strategies, appealing to a growing group of shoppers in the world's largest luxury market.

Gucci’s new cultural project to celebrate Korean Arts

Lululemon is being taken to court as part of a class action lawsuit that claims the brand is greenwashing. This case highlights not only the expectation for brands to contribute positively to the climate crisis but also for these efforts to be transparent and authentic.

Lululemon taken to court in greenwashing case

The White Company has become one of Britain's go-to concept stores thanks to its curated minimalist aesthetic and clear messaging. By harnessing the power of off- and online marketing, it’s become the brand of choice for lifestyle shoppers who favour simplicity and a strong brand identity.

How The White Company is building on lifestyle branding

TikTokers are embracing #underconsumptioncore, a trend that challenges consumerist habits by advocating the use of fewer products. Building on de-influencing, frugality trends are gaining popularity as people seek ways to cope with the ongoing cost of living crisis and environmental concerns.

Frugality TikTok trend encourages underconsumption

South Korean Gen Y and Gen Z – known in the country as Gen MZ – prefer online shopping, but offline pop-ups are more popular than ever. What makes these IRL experiences so attractive to younger shoppers, and what does this say about the retail landscape in a place that's usually dominated by tech?

Why pop-ups are Korea’s go-to marketing strategy for Gen Y and Z

Liu Yexi is your favourite AI influencer’s favourite AI influencer. With her trademark blend of traditional Chinese elements and modern design sensibilities, the country’s most popular avatar might pave the way for virtual influencers to take over Singles Day, Asia’s biggest online shopping event.

How Liu Yexi humanises AI influencers for social shoppers

Sales of physical music have increased for the first time in 20 years, driven by big releases from popular worldwide artists such as Taylor Swift and Billie Eilish. As digital-first consumption becomes the norm, collecting physical copies of media is growing in its importance for fans.

Physical music sales increase for first time in 20 years

Ongoing inflationary pressures are set to dampen back-to-school spending in the US as parents take a restrained approach to consumption ahead of the new school year. Families are prioritizing value, and they look to brands that can help ease the pressure of back-to-school spending.

Financial strain squeezes US back-to-school spending

Shopping

People are continuing to shop somewhat frivolously despite the cost of living crisis

In the face of economic uncertainty, many people are still choosing to treat themselves despite facing increasingly dour financial outlooks. For some, budgets are going out of the window, savings are taking a back seat, and spending to feel good is taking centre stage. Small luxuries, greater indulgences, and retail therapy are all becoming new ways to cope with polycrisis.