Inflation, along with a constrained labor market and disruptions in the supply chain, has led to a surge in the prices of food and fuel, not witnessed in the past decade.
A new study by Havas Media Group Singapore called “Cost of Living” takes a deep dive into how the inflated cost of living changed the way Singaporeans go about their daily lives. The report offers five key insights into the attitudes and behaviors of Singaporeans across four generations while offering ways that brands can navigate challenging times.
The research was compiled based on responses shared by over 600 Singaporeans, revealing that the cost-of-living crisis is officially a top-of-mind concern today.
Across four generations (Baby Boomers, Gen X, Millennials, Gen Z) surveyed, a total of 23% ranked it as the biggest issue they face. A significant number (94%) of respondents feel the pinch, with older generations perceiving ‘larger increases in the cost of goods and services’ compared to the younger cohort.
“Rising costs have impacted households and their purchasing decisions and it has become more important than ever for businesses to provide affordable solutions that meet the needs of customers,” said Jacqui Lim, CEO, Havas Media Group Singapore.
“Older generations, including Baby Boomers and Gen X, focus on cutting back expenses and saving harder. In contrast, younger generations like Millennials and Gen Z embrace hustling and take on additional jobs or opportunities.”
“The findings in this report demonstrate the evolutions in consumer behaviors and expectations, the need for us to be more empathetic towards the feelings of consumers, as well as the opportunities for brands to engage in more meaningful and connected ways that will help them stay relevant.”
Five Key Insights
Havas Media Group Singapore prepared the following summary of the research findings
Inflation remains the primary concern for Singaporeans, though perceptions vary among generations.
23% of Singaporeans indicated that inflation and the rising cost-of-living is what weighs them down the most. Interestingly, whilst many feel the pressure, the perceived increase in costs differs across generations – with Baby Boomers and Gen X feeling the pinch far more compared to Millennials and Gen Z.
Brands can look at offering long-term promotional deals to drive short-term demand as well as help consumers in managing their finances.
A multitude of contributing factors dictate the crisis, with the government bearing the responsibility for providing aid.
The increased costs of living can be attributed to a variety of factors according to different age groups. Baby Boomers cite global socio-political factors, while Gen X blames inflation and Millennials point towards low wage growth. Gen Z identifies a mix of factors, including wage growth, unemployment, and financial conditions.
Despite the differing reasons, 65% of respondents feel that it is the government’s responsibility to provide assistance during this period, while only 25% believe that brands should do more to help.
Price increases span multiple categories, influenced by differing generational priorities.
The top five areas where Singaporeans have noticed increased price perception include travel, groceries, petrol, dining out, and energy. To understand the value perceived by different generations, the study breaks down these categories for Baby Boomers, who are mostly concerned about basic necessities such as energy, groceries, and automotive fuel costs.
“65% of respondents feel that it is the government’s responsibility to provide assistance during this period, while only 25% believe that brands should do more to help.”
Brands within these industries should focus on providing education and support to Baby Boomers, who may be more reluctant to seek assistance.
Inflation prompts spending behaviour adjustments, with some opting for moderation and others pursuing alternative strategies.
The survey reveals contrasting generational approaches to tackling inflation. Older generations, including Baby Boomers and Gen X, focus on cutting back expenses and saving harder. In contrast, younger generations like Millennials and Gen Z embrace hustling and take on additional jobs or opportunities.
This shift is influenced by the resurgence of the FIRE movement, which encourages financial independence and early retirement, and the rise of hyphenated careers, where people pursue passions alongside primary professions for additional income and personal fulfilment.
Gen Z demonstrates strong optimism regarding the crisis’ duration, while simultaneously expressing scepticism.
Amid predictions of slow economic growth and high inflation in Singapore, most survey respondents expect a 1-2 year challenging period. However, Gen Z is more optimistic, with 23% believing the crisis will last 12-24 months. Their flexibility, readiness to switch jobs, and early-stage earning power contribute to their optimism.
Yet, some Gen Z respondents also foresee a longer-lasting crisis of up to 5 years. High anxiety, stress, and struggling in the job market may prompt Gen Z’s pessimism, impacting not only everyday essentials but also major life decisions such as marriage, home-buying, and raising children.
To access the full report, go here.
