Consumer sentiment refers to the overall feelings, attitudes, and opinions that consumers have towards a brand, product, or service. It plays a crucial role in shaping consumer behavior and has a significant impact on a brand's success. Here is how women's confidence has changed over the last 18 months and what it means for brands heading into the last quarter of the year.
Confidence has been trending down for women since the general elections in 2022
According to Kasi Insight’s Consumer Sentiment Index, consumer sentiment has undergone several shifts over the past eighteen months, influenced by factors such as inflation and general elections. In March 2022, during the outbreak of the Russian-Ukraine war, the sentiment for women stood at 13, while for men was 12. This relatively stable outlook implied that women maintained cautious optimism, potentially due to local factors shaping their sentiment.
In June 2022, there was a decline in women’s sentiment to -2 and men’s to -5. This divergence highlighted that women’s sentiment exhibited greater resilience amid uncertain times. When the country held its general elections in August 2022, there was a notable increase in the women’s sentiment index to 8, whereas men’s sentiment remained at 1. This substantial difference indicated that women were more optimistic in anticipation of political changes, setting them apart from men in their perspective. However, in March 2023, the occurrence of antigovernment protests had an impact on women’s sentiment, making it decline to -3. This underscored women’s heightened sensitivity to economic challenges, potentially linked to the civil unrest.
The effects of the protests became more pronounced in April 2023, as the women’s sentiment index dropped significantly to -11, while the men’s index remained at -1. This difference highlighted the disproportionate impact of recent events on women’s economic sentiment. By June 2023, there was a shared decline, with the women’s sentiment index reaching -10 and the men’s index dropping to -15. This revealed the lasting repercussions of these events, affecting the economic outlook of both genders.
Women’s financial well-being is susceptible to macro events
In January 2022, both women and men shared an index of 30, indicating a parallel financial landscape for both genders. However, the subsequent months unraveled trajectories that reflect the influence of external events on women’s financial well-being. In March 2022, a pivotal shift occurred as women’s personal finance index dropped to 12, while the men’s index decreased to 19. This suggests that women’s financial well-being might have been particularly susceptible to the global turmoil, highlighting their vulnerability during periods of geopolitical unrest.
With the general elections in August 2022, there was a substantial increase in women’s index to 23, compared to men’s steady 19. This contrast implies that women displayed a cautiously optimistic outlook in response to the anticipated political changes associated with the new government. The protests in March 2023 marked a significant event. Women’s index decreased to 22 during this time, potentially indicating economic concerns amidst the civil unrest. This decline underscores the economic unease that can emerge during times of social and political upheaval. Throughout this period, women’s index values consistently mirrored or slightly trailed behind those of men, highlighting a tendency towards more measured financial reactions.
Women's spending rebounds in June following a five-month downward trend.
In March 2022, both women and men exhibited a relatively stable household spending index. This suggests that immediate impacts of geopolitical unrest might not have drastically altered their spending habits. The general elections in August 2022 brought about a different narrative, women’s spending index surged to 8, potentially reflecting their increased confidence in spending amid expectations of political changes. Throughout the subsequent months, women’s spending behavior maintained its distinct trajectory. The index values indicate consistency in some months, especially during the holiday season, potentially implying steady financial choices during the season.
In 2023, women’s spending behavior exhibits a sharp decline in March, aligning with the protests in Kenya. The index drops to -4, likely reflecting heightened economic uncertainty and security concerns. April 2023 continues this trend with a further decrease to -7, revealing the impact of ongoing challenges on women’s household spending decisions. The narrative shifts again in June 2023, as the household spending index for women returns to a positive value, potentially signaling a renewed sense of stability in financial choices.
Consumer sentiment and spending patterns among women offer brands opportunities to refine their strategies
The fluctuations in consumer sentiment and spending patterns underscore the dynamic nature of consumer behavior. Brands should adopt flexible strategies that can quickly adapt to changing economic conditions, providing consumers with relevant and timely offerings. Further, recognizing the distinct responses between women and men to economic and political events, brands can craft gender-specific marketing campaigns. Tailored messages that resonate with each group’s financial outlook and priorities can enhance brand connection and loyalty.
Additionally, brands need to address the significant decline in spending during times of unrest. Crafting marketing messages that emphasize financial security, stability, and value can alleviate consumer concerns and encourage continued spending. The consistent spending behavior during holiday seasons presents a strategic opportunity for brands.
Planning special offerings and experiences that cater to women’s preferences during these periods can yield positive results. Brands should focus on building enduring relationships rather than short-term gains. By consistently delivering value and addressing consumer concerns, brands can foster loyalty even through economic uncertainties.
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