How is the Finnish consumer doing in 2024?
How is the Finnish consumer doing in 2024? Sanoma’s experts share the latest research
The uncertain times have taken a toll on the trust and wallet of Finnish people and turned the conscious consumer into a wary one. Research shows, however, that the hesitation is not entirely well founded – and the data on Finnish buying habits is also taking an optimistic turn.
Sanoma’s recent webinar took a deep dive into Finnish consumer trends in 2024. In this article, Veera Luoma-aho, Head of Department in politics, business, and economy at Helsingin Sanomat, and Customer Insight Strategist Jaana Jamalainen share the main insights from their fields. Let’s take a look!
The Finns’ plummeting trust in the economy doesn’t match the real-life situation
With the war in Ukraine, inflation, and rising interest rates, the Finnish consumers’ trust in the economy fell into a downward spiral in 2022. Since then, their replies to questionnaires have shown great uncertainty about the future. The twist, however, lies in the discrepancy between those feelings and what really goes on in the economy.
“Consumers communicate a lack of trust when asked about their views on the world and economy, but it doesn’t show up in their buying behavior,” explains Veera Luoma-aho.
Historically, the GDP and the Finnish consumers’ trust in the economy have gone hand in hand. In the past couple of years, the trust indicator has parted ways with the development of the economy. The same phenomenon has been reported in the US.
Feelings may change fast as the economy picks up again in 2024
The Finnish GDP didn’t look too bad at the end of 2023. There is a recession, but it’s short-lived and does not exceed a regular economic cycle. Not all consumers see a change in their personal finance.
“With the inflation and difficulties in certain industries, it is hard to get by for some households and companies. Still, there is no indication of mass unemployment such as during the depression in the 1990s,” Luoma-aho says.
In 2024, the real income of Finnish people will grow as inflation slows down. There are positive signals in the property market and world trade. Changes to the positive can have a big impact on the atmosphere among consumers, says Luoma-aho.
“A feeling is just that – a feeling. When reality and the trust in it don’t match, the positive is that the feeling can change quickly.”
Price will make or break a deal, but there’s more to making wise decisions
There already are signals of the wariness lifting. This can be seen in the biannual Consumer Pulse conducted by Sanoma questionnaire that measures the Finnish consumer behavior and attitudes.
At the beginning of January 2024, 69% of Finnish consumers said they are weighing their buying habits. 63% of Finns are more careful than before when making decisions, and 61% save on some purchases to be able to spend more on others. However, all these numbers are declining, which suggests an air of optimism.
“Generally, Finns want to make wise decisions and understand the benefits of the product or service. More than half of the respondents are increasingly searching for details about what they’re buying”, says Jaana Jamalainen.
What influences the Finns’ buying decisions?
- 98% of buyers say price is the most influential factor.
- 86% consider stock availability especially when shopping online.
- 84% appreciate an easy buying experience in brick-and-mortar stores.
- Brand, sustainability, and fast delivery also contribute to decision making.
Sustainability is a given – but the consumer craves more information
A Finnish consumer is a conscious one, and the Finns’ interest in sustainability remains high. More than half of the respondents say they choose Finnish and local products and services, and buying second-hand is on the rise.
As sustainability becomes a norm that can be expected, the consumer pays less attention to it. On the other hand, Finns seem to consider it difficult to find information on the sustainability of brands to support them making well-informed decisions.
“An important point for the marketer is that when a conscious consumer feels like information is hard to come by, there is more work to be done”, Jamalainen says.
Money-saving tactics are on decline as the turmoil settles down
Switching brands to save money has been a visible trend that is now on decline as buying is settling down in all industries. Young people, and especially women, are more likely to both reduce buying and switch from one product to another.
Comparing prices of services has decreased since October last year, and 35% of consumers say they don’t intend to compare any services in the next months. Finns are most likely to assess electricity, phone, and insurance deals before reaching a decision.
Almost a third of Finns have needed to postpone a buying decision because of uncertainty – but on the other hand, 47% say they have been able to make purchases as before. The former number is declining and the latter is on the rise, which shows light at the end of the tunnel for both Finnish households and companies.
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