Consumers worldwide are returning to brick-and-mortar stores in search of personalized service, according to research.

The findings of the latest edition of EY’s regular global survey, Future Consumer Index (FCI), which involved more than 23,000 consumers in 30 countries, show that 32% still want the personalized service that only shopping in physical store.

Also, the 57% of consumers surveyed want to ‘see’, ‘touch’ and ‘feel’ products before they buy, while 68% seek expert advice on high-value purchases to ensure they make well-informed choices.

The research points out that while 68% of consumers are happy to receive and trust AI-driven personalized updates on offers and promotions, 49% are dissatisfied with “smart” chatbots that do not respond effectively to their queries.

33% of consumers are concerned that AI-generated recommendations are biased towards specific products or brands.

With these challenges in mind, the research suggests that consumer-facing businesses combine personalized service with technology.

The success of both brands and retailers lies in striking the “perfect balance” – that is, attracting the customer at the right time with a message or offer that is relevant to them and that they can trust.

The research reveals that there is also a “gap” in the digital customer service experience that technology alone cannot fill. For example, 26% of respondents report that they are concerned about getting a refund or exchanging or replacing a product when shopping online. Meanwhile, 30% also cited poor customer service/support and difficulty connecting with a customer service professional.

While consumers are returning to brick-and-mortar stores for high-value purchases, research reveals that the home continues to evolve into a center around which more and more consumer activities revolve. After the pandemic, more and more consumers are moving away from convenience services and digital streaming and are less interested in following the latest trends, spending less on grocery delivery (38%), streaming services (35%) , fashion (35%), beauty (37%) and consumer electronics (41%). Instead, many are turning to a more down-to-earth lifestyle, with 68% rethinking how they spend their time. For example, nearly half (47%) plan to cook more at home, up from 39% a year ago.

This preference for home experiences over “convenience” services is a reaction to the lingering inflationary pressures that continue to strain household budgets. The survey shows that 85% of consumers are worried about their finances, while 72% will look for the greatest possible value from their purchases (value for money) in the future, especially when it comes to the affordability of groceries and other essentials species.

This trend is not limited to older age groups (Gen X and baby boomers) – 38% of whom plan to spend more time at home. More than two-fifths (43%) of younger generations (Gen Z and millennials) – often seen as the most social – also turn to activities at home. According to the survey, more than half (54%) of younger consumers plan to cook more at home, while 37% plan to have friends over more often.

The cost of living crisis and inflationary pressures are having an impact on consumer preference for private label products over branded products. While at the start of the FCI research series in 2020, fewer than one in three consumers reported choosing private label products over branded products in response to rising costs, this edition’s research highlights that this trend is now a permanent habit. 66% of respondents consider that this cheaper alternative meets their needs just as well as branded products, while 38% state that they do not plan to return to branded products.

It is characteristic that, according to the research, this trend is not limited to the lower income groups. Higher-income consumers plan to buy private label products in the future, too, and are considering it in every category, including fresh food (60%), home care (56%), packaged food (52%), of clothing, shoes and accessories (49%), personal care items (49%), and beauty and cosmetics items (39%).