French consumers are more concerned than their European neighbours about politics, as well as the broader macroeconomic situation, a new study by BCG has found.
BCG‘s study, which formed part of its 2024 European Consumer Sentiment Report series, was undertaken in July, directly following the French parliamentary elections, and found that 75% of respondents felt ‘bad’ or ‘very bad’ about politics, compared to a European average of 57%.
Pessimistic about the economy
French consumers were also more pessimistic about the economic situation, with 67% saying they felt ‘bad’ or ‘very bad’, compared to a European average of 49%, as well as the cultural and social atmosphere (50%, compared to 40%).
Just over a third (35%) of French consumers said that they felt good about their personal financial situation, compared to a European average of 43%.
At the same time, however, the study found that French consumers felt either ‘good’ or ‘very good’ about their mental health (64%), physical health (57%, compared to a European average of 56%), and the security of their personal data (30%, compared to a European average of 36%).
Tackling increased prices
Rising prices have added to the strain. In the first half of the year, seven in ten French consumers reported seeing higher prices for everyday items, while only 9% experienced an increase in income. In addition, more than 60% expect further price hikes by the end of the year, and many anticipating their savings will either stagnate or decline.
To counter inflation, French consumers have shifted their spending patterns. More people are increasing their spend on basic necessities, with 37% reporting increased spending on essential items. However, spending has declined in most other categories. For example, 45% are cutting back on apparel, and 35% have reduced their spending on home appliances.
Groceries, however, stand out as the only category with a net spending increase of 5%, despite many consumers trying to save by purchasing less, seeking deals, or switching to lower-cost brands. Nearly a quarter of respondents (23%) reported spending more on groceries, largely due to rising prices, BCG’s study found.
BCG adds that to strengthen ties with French consumers, companies should focus on product assortment, pricing, and promotions, ideally launching changes in all three areas simultaneously. Read more here.
