Shifts in Consumer Priorities During Downturns: What I’ve Learned
It’s not just that people spend less. It’s that what they value, why they buy, and how they make decisions evolve — sometimes dramatically. Let's talk about it.
Jenny Holly Hansen
By Jenny Holly Hansen | WBN News | May 6, 2025
Every time the economy takes a hit, I notice a familiar pattern: consumer behavior doesn’t just slow down — it changes.
Understanding these shifts has been one of the most important lessons for adapting my business and staying resilient through recessions. It’s not just that people spend less. It’s that what they value, why they buy, and how they make decisions evolve — sometimes dramatically.
The businesses and brands that recognize these changes early are the ones that stay connected to their customers and even find opportunities to grow, despite the uncertainty.
What Happens to Consumer Priorities During a Downturn?
1. Value Over Luxury
During good times, people are willing to pay for premium brands, experiences, and nice-to-haves. In a downturn, value becomes king. Consumers scrutinize purchases more closely, asking: Is this worth it? Will it last?
They aren’t necessarily looking for the cheapest option — they’re looking for the smartest investment. I’ve found that businesses that can clearly communicate durability, cost savings, or multi-use benefits do much better in recessions.
2. Essentials First, Extras Later
Spending naturally shifts toward essentials: groceries, healthcare, home maintenance. Discretionary spending — on luxury goods, travel, entertainment — often slows sharply.
If I'm offering a product or service that isn't essential, I’ve learned it's critical to reposition it:
- How does it solve a real problem?
- How does it make an essential task easier, safer, or cheaper?
3. Trust Becomes Non-Negotiable
In tough times, trust matters more than ever. Consumers are more cautious, skeptical, and selective.
- Is this company reliable?
- Will they stand behind their product?
- Are they treating customers and employees fairly?
Consistent, honest communication — even admitting when things are hard — builds loyalty that lasts well beyond the recession.
4. Local and Ethical Choices Matter More
Recessions often spark a renewed focus on local businesses and ethical companies. People want to feel that their dollars are supporting their community or values.
I’ve seen small businesses thrive during downturns by emphasizing their local roots, sustainable practices, or commitment to giving back. In uncertain times, consumers want their purchases to mean something.
5. Flexibility Wins
Consumers want more flexible options when budgets are tight:
- Payment plans
- Cancel-anytime subscriptions
- Try-before-you-buy offers
Businesses that lower the risk for customers — by offering easy returns, transparent guarantees, or "pause" options — remove barriers to buying.
How I Adapt to Shifting Priorities
Every recession reinforces for me that flexibility, empathy, and clear communication are not optional — they’re essential.
- I reframe my messaging around value, reliability, and practical benefits.
- I listen more carefully to customer feedback and changing needs.
- I find ways to offer flexibility without undermining my business’s sustainability.
- I double down on trust-building — even small acts of transparency can set a brand apart.
I remind myself: It’s not about selling harder in a downturn. It’s about connecting deeper.
Final Thoughts
When the economy shifts, so do people’s priorities. It's natural. It's human.
By understanding and respecting these shifts — rather than fighting against them — I can lead my business with empathy, adapt my offerings with creativity, and build customer relationships that endure far beyond the tough times.
Downturns change what people want. But they also reveal what people value most. And if I pay close enough attention, that's where opportunity lives.
Let’s Keep Talking:
Jenny is a business insurance broker with Waypoint Insurance.
She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.
She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/. Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social
Let’s Meet Up:
Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4
TAGS: #Jenny Holly Hansen #Recession-Proof #What, Why, and How they Buy #Value over Luxury
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