University students in the UK have, for the third consecutive year,
increased their average spending despite initial beliefs that the
COVID-19 pandemic could have reduced it.
The ‘
UCAS Freshers Report 2022
’ published by UCAS reveals that university students have both
increased their fresher’s week spending and their average weekly spend
during other times in the year.
Since 2019, students have spent, 14.4% more during Fresher’s week and 9.8%
more on an average week. The average weekly spend has climbed to £243 and a
whopping £421 during Fresher’s week. It is also important to note that
average inflation has also increased by 1.611% in the two years
since. Despite this consistent rise in spending from students, how they are
spending their money and what on, has seen a shift.
Unlike previous cohorts before them, 2022 students display a solid set
of values driving their shopping decisions
Trends emphasized in the report show Gen Z shoppers are increasingly
conscious of where they are shopping and the impact their consumption has
on the planet. Many students told UCAS that small and independent brands
were their favourite way to go when spending their cash. Big brands and
designer labels are no longer a huge concern of students, instead, they
desire quality items, with their cost relevant to value. Students are also
demanding brands with strong morals and brand transparency. Brands such as
PrettyLittleThing and Shein, shown to have poor working conditions for
staff were the most likely to be abandoned by students. In contrast, brands
that promote gender and racial equality are increasingly popular with
ethnically-driven students. Since the events of BLM and the gender
disparity highlighted by COVID-19, both female and Black-owned businesses
have been supported by students who aim to use their purchasing power to
reverse injustices in society. Overconsumption and fast fashion are also on
the minds of students’ the UCAS report recognises that you are “more likely
to bump into Gen Z in the budget aisle or a charity shop than amongst the
designer rails”. Thrifting in vintage or charity shops allows students to
express their individuality, limit their spending and protect the planet.
Students are logging off and returning to the Highstreet
In the age of one-click checkouts and door-to-door delivery within a day,
students are craving the traditional shopping experience. Despite the
growth in the use of services such as Deliveroo, Netflix, and Amazon Prime
students want to engage with brands through real-life interactions. This
also stretches to university study whereby students are increasingly
calling for a complete return to in-person teaching. Now we have emerged
from the restrictions of the COVID-19 pandemic, students are increasingly
spending their money on the high street. For example, 91% of students are
buying their groceries in-store, compared to only 83% in 2021. Crucially,
for brands and businesses wanting to connect with students, rethinking
their digital experience versus in-person experiences may be warranted.
‘The TikTok Revolution’
It would however be naïve to suggest that students are logging off
completely from the digital world. One trend which has not ceased since the
pandemic has been the unprecedented rise of TikTok, the video-sharing
social media platform, as a student go-to for endless scrolling. Its usage,
particularly among students, has increased 10x that of any social media
rivals, such as Instagram and Facebook, which provides an interesting
opportunity for advertisers. For brands wanting to connect with
undergraduates, TikTok’s short and snappy video style promotes high
engagement rates and an opportunity for both businesses and their products
to go viral to students. You can even follow us on there-
@accommodationforstudents!
The pandemic has slowed the pace of life and students are embracing
spending on health habits and their home environments.
According to the study, the fastest-rising brand was Dunelm, the home
furnishings powerhouse. This indicates an increased willingness invest in
kitchen and home furnishings and supplies, from students. Undoubtedly this
trend has been spurred on by the COVID-19 pandemic and the accompanying
lockdowns which vastly slowed down our social lives and confined us to our
homes. A recent
Study Living Survey
has similarly highlighted that in 2022 students are spending an average of
13 hours in their student accommodation, there is no wonder students are
willing to spend more on making it a more pleasant environment. TikTok
trends such as #nesting which has over 2 million views, further show an
increased interest in slower, home-based student lives. This information
demonstrates that students are progressively more aware of their
accommodation environment. Therefore, accommodation providers and landlords
may want to further explore the offerings of their properties and the types
of spaces that students may want, both in private rented accommodation and
purpose-built student accommodation.
What can we learn from this report?
The UCAS report highlights that we cannot escape the legacy of the COVID-19
pandemic, particularly where students are concerned. Their consumption
comes along with a greater sense of purpose, and they have sharpened up on
what matters most to them. According to UCAS “this year’s freshers look for
value over cost, for physical and digital experiences, for brands which
mirror their values, and for more homely lifestyles than we once associated
with students”. Therefore, brands need to strategies accordingly, to align
their values with the UK’s students and respond rapidly to maintain their
relevance in the student market.
