US Businesses Evolve as American Consumers Prioritize Experience and Adventure

NEW YORK–(BUSINESS WIRE)–American consumers prioritize risk-taking, adventure and living an
exciting life when it comes to making purchases, according to global
research by HSBC. This structural shift among US consumers’ purchasing
habits is prompting companies to rethink existing marketing and business
strategies.

According to the HSBC report, “Future
of Consumer Demand,” changing demographics and consumer behavior
will present new opportunities for savvy American companies in the
coming decades whilst posing threats to traditional business and
marketing strategies.

Authored by Trajectory, the report takes insights from in-depth
interviews with business thought leaders and surveys of 90,000
consumers, including over 6,000 in the United States.

American consumers prioritize experience and adventure

Half of U.S. consumers surveyed said adventure, risk-taking and living
an exciting life were among their top considerations when making a
purchase. Comparatively, the global average among consumers from
advanced economies was 44%.

Cate Luzio, EVP & Global Co-Head of International Subsidiary Banking for
HSBC believes this phenomenon is requiring companies to “adapt or risk
falling behind.”

Luzio continued: “American consumer behavior is changing rapidly. This
means businesses – particularly those providing high-value services like
fashion and retail – need to be alert to these changes so they can
respond positively to drive business growth.”

“To beat the competition, it’s not enough to merely understand what your
customer needs and wants – you also have to consider their behaviors and
more importantly create the right experience.”

American consumers favor ethical brands

U.S. consumers prioritize products that align with their personal values.

More than 7 in 10 (70.9%) of U.S. respondents place a high importance on
buying goods and services ethically. In contrast, the global
average among consumers from advanced economies who prioritized ethical
brands was 41%.¹

“With greater choice and access to information, the digital revolution
is allowing consumers to live out their value system online. Whether
it’s an experience, an adventure or a brand that aligns to consumers’
values, one thing is clear – consumers are changing and companies must
too,” Luzio said.

Americans are the top online shoppers globally

The report also shows that American consumers are among the most active
online purchasers globally, with nearly three quarters (68%) of
Americans having bought something online in the past month, according to
a recent report by We Are Social.²

Luzio concluded: “U.S. consumers’ preference for digital consumption is
prompting companies to redesign their online strategy. Nowhere is this
trend more apparent than in fashion and retail, where our clients are
redefining the shopping experience.”

Notes to editors:

Footnotes
¹ HSBC
Commercial Banking; The Future of Consumer Demand – USA Supplement (2016)
²
We Are Social, Internet Use Report for 2016

About HSBC Bank USA, N.A.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.), with total
assets of US$198.8 bn as of 31 March 2016 (US GAAP), serves 2.4 million
customers through retail banking and wealth management, commercial
banking, private banking, asset management, and global banking and
markets segments. It operates more than 229 bank branches throughout the
United States. There are over 145 in New York as well as branches in:
California; Connecticut; Delaware; Washington, D.C.; Florida; Maryland;
New Jersey; Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A.
is the principal subsidiary of HSBC USA Inc., an indirect, wholly-owned
subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a
Member of the FDIC.

Contacts

Media inquiries:
HSBC Bank USA
Elizabeth Byrne, +1
212-525-0616
elizabeth.x.byrne@us.hsbc.com