“Little treat” culture and the changing face of indulgence.

The UK economy may have grown by 0.2% in August, but as the country awaits the announcement of the Autumn Budget, financial anxiety is rife. For most British shoppers, it’s been a long few years of tightened belts, with utilities skyrocketing and inflation affecting everything from train tickets to the cost of the weekly shop. 

Although the public mood around spending has felt distinctly hesitant lately, encouraging figures from the ONS show that UK retail sales increased by 0.3% in September this year. So to better understand the shifting priorities of shoppers, the Trinity McQueen team recently carried out some research to help unpack how “little treat” culture has evolved. Keep reading as we examine the survey results, interpret their meaning and discuss how brands can continue to win in the current economic climate. 

The increasing appeal of the sweet treat

While the economic “black hole” narrative coming from the new government isn’t very encouraging, the public seems to be responding with short-term pick me ups. Karen Johnson, Head of Retail at Barclays, recently remarked that baked goods are proving one of the most popular ways for consumers to treat themselves. 

This could be in part due to social media trends like the “crookie”, “cruffin” and the viral Dubai chocolate bar, but also because small, edible (and photogenic) treats are an affordable luxury that’s easy to budget for. In fact, our own survey data confirms that over half of us are still finding ways to treat ourselves, even if only in small, inexpensive ways. 

Making memories with events and experiences 

One area where spending seems more resilient is events and experiences, which — according to survey results — continue to be a pull for Brits. These industries are still in recovery since the pandemic, but a huge 50% of our survey respondents stated that, when splashing out, they’re more likely to choose a weekend away, meal out or tickets to an event over homeware, skincare or furniture. 

Some people commented on the long-term value of tickets to gigs or other performances, with making core memories being one of the key motivators. For instance, one woman who’d bought tickets to Taylor Swift’s Eras Tour said “my group of girlfriends spend hours discussing outfits, making bracelets, getting ready on the day itself. It was so special, I’ll remember it forever.” Events like this deliver a value that extends far beyond the actual show, bringing weeks of excitement beforehand and great memories to look back on afterwards, making them a more worthwhile investment for shoppers. 

How does social media play into this? 

There’s no doubt that social media has affected our spending habits. More specifically, the 2023 Commerce Report found that Gen Z and millennials are 51% more inclined to make impulse purchases online. With influencers showing an “aspirational” way to live, and targeted ads using audience data to maximise lead score, it’s no wonder that so many social media users are feeling inspired to purchase. On top of this, several of the people we talked to reported they feel pressure from social media to “be doing all these fun things”, particularly when they see their friends and followers going to events themselves. 

Interestingly, Gen Z and men are the demographics most prone to doom spending in 2024. With the younger generation, fewer responsibilities and a more optimistic outlook could be fuelling their habit of treating themselves, despite economic pressures. There’s an opportunity here for hospitality and entertainment brands to capitalise on the sentiment among young people — with strategic rewards and deals that directly appeal to the specific needs and priorities of this audience. 

The lipstick effect is alive and well

While a higher percentage of men are finding ways to treat themselves with larger purchases — the lipstick effect persists with the female audience, who are still indulging in smaller treats. One in four women told us that beauty and homewares are among their favourite little pick-me-ups, but our research also revealed that women in particular feel the need to justify spending on themselves. 

Women who are budget-conscious respond especially well to the feeling of having “earned it” when they spend — for instance, through brand loyalty, saving up for promotions, or making cutbacks elsewhere. Similarly, women are showing increased concerns around sustainability, and are often choosing to sell items of clothing to fund and make room for new ones, or considering the “cost per wear” of pricier garments that are bought to last the years. 

These factors should be a key consideration for brands whose core audience is made up of women, particularly when nearly 40% of people have reported that they’re ‘very worried’ about the rise of the cost of living. 

So how can brands win in the world of self-treating? 

Brits seem a little more optimistic about the need to keep cutting back on treating in the next year, but it’s vital for brands to get to grips with the motivators and nudges that can tempt shoppers. Some brands are utilising these techniques already, like LUSH asking “Need a little treat?” on sandwich boards outside their stores and in video content to promote their summer range, or Gail’s using the sentiment of memories shared with loved ones to incentivise the purchase of gift cards. 

To join the ranks of winning brands like these, here are few key points to consider: 

  • Making customers feel like they’ve “earned” their treat, through adopting credit and debit principles in comms and activation mechanics. 
  • Playing to the idea of more “mindful treating”, providing a clear justification for spending, by emphasising value. 
  • Altering tone in line with audience — for instance, raising spirits with imperatives in comms for Gen Z, while bringing in messaging around self-care for a female target. 
  • Trading on memory-making, with an emphasis on experiential and emotive messaging, when it comes to entertainment, tourism and hospitality brands.  
  • Incorporating behavioural science within marketing, to reduce friction and provide temptation that still enables shoppers to feel positive about treating themselves. 

Despite the considerable economic uncertainty shoppers are facing, “little treat” culture remains resilient, even if it looks a bit different across various demographics. Behavioural science can  show you how to cater to those individual audiences through targeted campaign messaging, rewards and more, making it an excellent next step for brands looking to optimise their marketing spend. 

To learn more about how Trinity McQueen can help you better understand your audience, get in touch on j.crane@trinitymcqueen.com.   

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