“I like to pursue better value, to
help maintain my lifestyle and to get
the most from the money I have”
1
“I like to pursue better value, to help maintain my
lifestyle and to get the most from the money I have”
•
The financial crisis has fundamentally changed
attitudes to the marketplace and what represents
good value; consumers are smarter and savvier
with their money and more willing to shop
around than ever before.
•
Even the attitudes of those who are financially
comfortable have been affected, acknowledging
that it would be foolish not to be more cautious
with their money. Budgeting is now the norm for
many, who have devised tools to keep their
spending in check.
2
“I like to pursue better value, to help maintain my
lifestyle and to get the most from the money I have”
•
Being a well known brand is no longer enough as
consumers look for more proof points of the
benefits products claim to offer, whether taste,
quality or nutritional value.
•
People are devising their own solutions to get
more for their money: buying and cooking in
bulk, opting for loose vegetables rather than prepacked, substituting cheaper alternatives for
regular purchases and finding ingredients that
allow variety and creativity in their use.
3
People are having to be more considered in all
purchasing behaviour – from day to day buys, to
splashing out
„I like to splurge on some products and services,
even if it means I have to economise more radically
in other areas1‟
% Agree
2008
60
57
2009
2010
57
54 53
50
2011
47
47 46
49
43
40
51
45
41
39
35
43
38
33 33
36 36
30
20
10
0
Ireland
UK
Western Europe
USA
The number of people agreeing ―I
find myself thinking twice before
making even the smallest day-today purchases‖ has increased
from 48% to 63% in the UK, and
from 58% to 72% in Ireland
between 2009 and 2012.2
BRIC
Source: 1. Global MONITOR. See appendix for base sizes; 2. Feeling the Pinch 6
4
Consumers now have more tools than ever to make
savvier choices
Rise of offer culture in Ireland
In Ireland, in the three months to the end of
August 2011, €10 million was spent on
various Daily Deal sites such as Groupon
Pigsback and GrabOne.1
Internet and peer reviews help
consumers make more informed
decisions
Comparing products online and reading
online reviews have become well engrained
consumer behaviours.
In the US, 42% of millennial internet users
said they post comments on social
networking sites about positive product,
brand or service experiences in order to
share their experience, compared to just
17% of baby boomers.2
Source: 1. Irish Daily Deal aggregation service, www.sift.ie,; 2.Kelton Research, January 2012
5
Own-label propositions continue to evolve and offer
more compelling alternatives to branded goods
A new breed of own-label has emerged
Tesco has announced that it is retiring its iconic
blue and white striped ‗Value‘ range that was
launched in the wake of the recession in the
early 1990s. Consumers have moved away
from buying the cheapest products, and are
now demanding higher quality ingredients and
better choice from own label ranges. The line
will be replaced with an ‗Everyday value‘ line
with higher quality ingredients.
―We‘re delighted that Irwin‘s is
the first local company to come
on-board and develop a range
which reflects the quality, taste
and value our customers want.‖
Asda‟s Northern Ireland
category director, CJ AntalSmith, March 2012
―This is a different recession than the one that
spawned the honest, stripped down values of
the Value range. Tesco‘s rivals have moved
beyond the idea of basics and, with ranges like
Waitrose Essentials and Morrisons‘ M Savers,
put the emphasis on affordable quality.‖
Management Today, April 12th 2012
Asda launches own-label
Northern Ireland food range
Asda has recently updated it‘s
own label ‗Chosen by you‘ range
of foods specifically in Northern
Ireland, incorporating high
quality, good value products
from local producers, such as a
selection of 13 bakery lines
from Irwin‘s of Portadown.
6
Key takeaways
•
Consumers are more in control than ever, with an acute sense of what good
value represents, and the tools in hand to make more informed purchasing
decisions. Counselled consumption is becoming the norm as people turn to
trusted sources for advice on what best meets their needs and budgets.
•
Food and drink continues to make up an increasing part of people‘s spend,
particularly as prices have continued to rise. This has made savvier shopping
and strategies for minimising spending and maintaining lifestyles even more
imperative. People are developing a more astute understanding of offers and
promotions and the true value that these can represent.
•
For the less financially constrained, the pursuit of expert status continues to be
relevant, particularly as they are now able to showcase skills and knowledge to
a wider audience through social media channels.
7
Drivers
Sub-trends
Redefining value
Proliferation of new media and
telecommunications
technology and devices
Increasing availability of
information
The deepening desire for good value
beyond price alone
Tangible benefits
Focusing on proof of real tangible benefits
and established quality
Exclusive choices
The demand for exclusivity and rarity
Continuing economic
uncertainty
Growing market competition
and choice
Counselled consumption
The rise of specialist advisers and peer
reviews for all consumption matters
Expert status
Growth in pursuit of knowledge and
discernment for identity and status
8
SUB-TRENDS
9
HOW IS THE SUB-TREND EVOLVING?
Redefining value
TOWARD
The deepening desire for good
value beyond price alone
Value seeking is well entrenched in
consumer behaviour, with people more
adept than ever at shopping around and
securing the products they want at the
best prices. New consumer-oriented
buying models have emerged that allow
people to dictate what constitutes good
value, and price transparency is giving
people more power.
handsup.cn aims to hand power
over to customers by asking them to
recommend products they want to
buy, as well as the price tag, China
Wine retailer Sterwijnenthuis
undercuts top-rated restaurants
and tells consumers the price
difference, The Netherlands
FROM
More innovative ways to
pursue value to maintain
lifestyle choices
Fractional ownership
website allows
consumers to share or
rent higher cost items,
Global
Greater transparency and new
buying models put more power
into consumers‟ hands
Growth of offer
culture with
websites such as
Groupon and
Pigsback, Global
Not just for sandwiches
– Philadelphia cheese
can be used in over
500 recipes, GB
10
SUB-TREND: Redefining value
The deepening desire for good value beyond price alone
Versatile cream cheese,
GB
Transparent prices, The
Netherlands
In its TV spots, Philadelphia
Cream Cheese proposes a
number of ways in which
consumers might use the
product, other than spreading it
on bread. The brand‘s website
contains over 500 recipes for
meals that include Philadelphia,
underlining its value as a
multipurpose product.
Online retailer Sterwijnenthuis
sells the very same wines that
top-rated restaurants serve, but
at dramatically lower prices.
Next to each wine it sells the site
lists the name of the restaurant
whose wine list it came from. By
making their markups on wine
plain for all to see, the effort has
drawn considerable outcry from
the Dutch Alliance
Gastronomique and individual
restaurateurs.
Recommend products you
want to buy, China
Handsup.cn invites users to
submit and vote for the products
they would like to see on its
virtual shelves. Hoping to create
an ―infinite‖ range of available
products and services; the site
also allows consumers to
suggest how much they would
like to pay. A greater number of
votes for a particular product
increases the likelihood of the
price being lower.
11
HOW IS THE SUB-TREND EVOLVING?
Tangible benefits
TOWARD
Focusing on proof of real
tangible benefits and established
quality
As people become more considered in how
they allocate their limited resources, and
as expectations around transparency and
authenticity increase, people are looking
for tangible proof of a product‘s qualities or
the unique value it offers.
Try on Tesco’s clothing
in a virtual 3D fitting
room, GB
Loyalty cards reward coffee
fans for being disloyal to
big brands and visiting
independent cafes instead,
Global
FROM
Brand assurances of better
efficacy
Detergent promises that
though it’s pricier, it gives
better results saving
money in the long run,
Brazil
Smarter sampling and more
effective communication of
proven benefits message
Sample & Try allows
consumers to select
products to try via a
website, India
Volkswagen website
demonstrates how VW cars
are better value over the
longer term than cheaper
alternatives, UK
12
SUB-TREND: Tangible benefits
Focusing on proof of real tangible benefits and
established quality
Proving lifetime value, GB
Disloyalty cards, Global
Volkswagen has created a ‗True
Life Costs‘ website which shows
what people spend over a
lifetime and demonstrates how
VW cars are actually better value
over the longer term than
cheaper, but less reliable
competitors.
Inspired by a scheme in London,
‗disloyalty cards‘ are cropping up
in cities around the world to
reward coffee drinkers for
choosing small, independent
cafés rather than big chains. The
card is stamped each time
consumers purchase a coffee
from one of the participating
cafés and, once the card is full,
they return to the original café to
receive their free coffee.
Virtual 3D fitting room,
GB
Tesco has launched a virtual
fitting room for its F&F clothing
range that enables customers to
create 3D digital versions of
themselves and then try on
different outfits. Customers
simply upload two photos and
the F&F fitting room creates
their very own virtual body, to
look exactly like the user and
then suggests sizes based on
the details submitted.
13
HOW IS THE SUB-TREND EVOLVING?
Exclusive choices
The demand for exclusivity and
rarity
People continue to desire products that are
only available to the few. Exclusivity is
moving into more day to day products,
with the rise of ‗invite only‘ access to
goods, services and content.
TOWARD
Invite-only access to exclusive
content and products
Get exclusive recipes
while you grocery shop
via augmented reality,
GB
Invite only milk delivery
from farm to door, India
FROM
More everyday exclusivity
and the satisfaction of
being one of the few
Hidden stores add to the
reward of tracking down
new edition products for
Adidas, US
Pepsi limited edition
summer flavours
that only the few get
to sample, Japan
Invite-only flash sale website
offering premium fashion,
housewares, food, and
travel, US
14
SUB-TREND: Exclusive choices
The demand for exclusivity and rarity
Invite-only flash sale, US
Gilt Groupe is a flash sale website
that offers premium fashion,
housewares, food, and travel to its
members, who must be invited or
approved to join the site. Sales
start at a certain time, with high
quality merchandise available in a
limited quantity, creating a
competitive, but exciting,
atmosphere for the
best items.
Invite only milk delivery
from farm to door, India
Gowardhan, one of India‘s
largest private dairies, has
invited a select group of South
Mumbai elite— a mix of political
families, corporate executives,
celebrities and expats—to sign
up for its new milk delivery
service: Pride of Cows. The milk
is extracted every morning by
machines from its herd of
specially imported JerseyHolstein cross-bred cows
Exclusive recipes, GB
Waitrose‘s mobile augmented
reality advertising app allows
smartphone users to hover their
smartphones over Waitrose print
ads to view Delia Smith recipes
and other exclusive content.
Consumers point their camera at
the screen to access exclusive
content, which also includes
interviews with Heston
Blumenthal.
15
HOW IS THE SUB-TREND EVOLVING?
Counselled consumption
The rise of specialist advisers
and peer reviews for all
consumption matters
The proliferation and sophistication of
mobile technology means that relevant,
up-to-date information is available at the
touch of a button. People expect to access
advice wherever and whenever they need
it.
FROM
Increasingly personal
advice delivered to your
fingertips
Cocktail Advisor users
enter in their preferred
tastes to come up with
suggestions of cocktail
recipes, US
Expert selections of
coffee sent to your
door, GB
TOWARD
Real time information and advice
for a broader range of
consumption decisions
Real time ethical
shopping guidance, US
Mobile and location-based
apps search for services,
shops, or deals in real time
and include user reviews,
China
Crowdsourced gift
recommendations based
on recipients interests, US
16
SUB-TREND: Counselled consumption
The rise of specialist advisers and peer reviews for all
consumption matters
Crowd sources gift ideas,
US
No Sweaters in the US is
enabling gift-givers to get
personal recommendations
from other users based on the
interests of the person
receiving the gift. Information
such as interests, gender, and
relationship to the gift-buyer
and age, are provided in order
to help the community decide.
Other users then choose a
suitable present idea.
App for real time user
reviews, China
Dianping is a mobile and
location-based service that
allows users to search for
services, shops, or promotional
deals in real time as they go
about their day. Each option also
includes user reviews, enabling
consumers to find the ideal
option based on a range of
factors.
Real time ethical advice,
US
The Ethical Company
Organisation‘s Good Shopping
Guide mobile app lets
interested shoppers make realtime product comparison tables
in relation to a company‘s
environmental, animal welfare
and human rights record. It
features comprehensive
research on over 700 brands in
72 categories from food & drink,
to travel, energy, and fashion.
17
HOW IS THE SUB-TREND EVOLVING?
Expert status
TOWARD
Growth in pursuit of knowledge
and discernment for identity and
status
Expert knowledge about a subject of
interest continues to be an important and
desirable asset for many people.
Technology not only offers people with
improved access to knowledge, but it
allows them to draw attention to their
expertise and establish themselves as an
expert to a wide audience.
FROM
More instant opportunities
to build expertise in almost
any aspect of life
Learn to cook with a
Michelin Chief, GB
Showcasing expert status or even
monetising expertise
Independent beauty
blogger becomes
spokesperson for global
brand and launches own
line of products, US
Creating your own food
service business from
home, The Netherlands
At Apfelgalerie,
customers can
become an apple
expert, Germany
Get an on-the-go
guide to the
Franciacorta wine
region via your
mobile phone,
Italy
18
SUB-TREND: Expert status
Growth in pursuit of knowledge and discernment for
identity and status
Become an apple expert,
Germany
Apfelgalerie in Berlin is a shop
exclusively for Apples. The nofrills specialty shop is lined with
row upon row of apples, all of
them regionally grown and
including a number of rare
heirloom varieties. Whether
sweet or tart, crisp or butteryfleshed, expert consultations
ensure each customer meets
their perfect apple match.
Create a food service
business, The
Netherlands
Tweetjemee is web service for
home-based cooks to serve
people nearby. The idea is that
anyone with cooking skills can
prepare some extra food and sell
it on to others who don‘t want to
cook. A neighbourhood chef
starts a so-called ‗webtaurant‘ by
signing up on the Tweetjemee
website, after which the chef can
tailor the site to reflect his/her
restaurant.
Showcasing expertise,
Global
Beauty blogger Michelle Phan
has moved from amateur to
expert status with her record
breaking beauty tutorial videos
on Youtube and beauty blog.
Lancome recently asked her to
become an official spokesperson
for their brand and showcase
their products in her blog.
19
COUNTRY RELEVANCE
How does this trend play out in Ireland and GB?
This trend is more relevant than ever, as consumers adjust to the economic realities whilst trying to minimise
lifestyle compromises. The economic crisis has fundamentally changed attitudes to value – even of those who
are more financially comfortable who acknowledge that it would now be foolish not to be more cautious with
their money.
Ireland
• With increasing food prices and squeezed
incomes, there are few who are untouched by
the need to be mindful of spending.
• Shopping around, and buying own label remain
key strategies, though there still remain
branded products that consumers will not
substitute.
• Though price sensitivity has increased, other
consumption values, such as supporting local
producers or growers remain key – with people
seeking out good value home grown products
whenever they can.
• Expert status and exclusivity remain
aspirational for most.
Great Britain
• As offer culture has become well engrained,
people have become smarter at scrutinising the
real value promotions offer – with many
developing a more acute sense of what good
value represents.
• Buying in bulk to save money has been
replaced by concerns around the financial cost
of waste for many.
• The concept of the ‗one stop shop‘ is
diminishing – as discount retailer‘s choice and
quality of products has improved, they now
form part of the repertoire of shops people
routinely use for grocery shopping.
• For the financially secure, buying from
specialist shops or markets to develop
knowledge of foods and drink (such as cheese)
still appeals.
20
COUNTRY RELEVANCE
How does this trend play out in Ireland and GB?
Ireland
Great Britain
Redefining value
Redefining value
Tangible benefits
Tangible benefits
Exclusive choices
Exclusive choices
Counselled consumption
Counselled consumption
Expert status
Expert status
The deepening desire for good
value beyond price alone
The deepening desire for good
value beyond price alone
Focusing on proof of real tangible
benefits and established quality
Focusing on proof of real tangible
benefits and established quality
The demand for exclusivity and
rarity
The demand for exclusivity and
rarity
The rise of specialist advisers and
peer reviews for all consumption matters
Growth in pursuit of knowledge and
discernment for identity and status
Strength in 2012:
The rise of specialist advisers and
peer reviews for all consumption matters
Growth in pursuit of knowledge and
discernment for identity and status
Cooling
Still warm
Heating up
21
SHOPPER DIMENSIONS
22
SHOPPER DIMENSION
How does this trend play out for shoppers?
In store and online visualisation,
sampling and guidance is helping
shoppers reduce the risk of purchase
With growing choice and limited resources, shoppers will continue to
look for ways to reduce the risk of making a purchase. As peer to peer
and consumer review culture has grown, more people are now able to
research a product or service before they buy – and increasingly, in
store and online technology is adding a new dimension to this.
Technologies such as augmented reality are allowing consumers to try
out or visualise products both in store and online. Tesco‘s 2012 trial of
augmented reality (AR) allows shoppers to experience three
dimensional visualisations of a range of products – better showcasing
product features and allowing shoppers to get a feel for the physical
product without having to go to a store.
Similarly, new trialling technology – like cosmetic company Sheisedo‘s
make up trial booth – allows shoppers to ‗try on‘ a range of products
in store before they buy. Virtual consultants are also emerging in the
isles to help provide shoppers with purchasing guidance and advice.
Glimpses of the future
Tesco uses
augmented
reality to
improve virtual
shopping, GB
Tesco is trialling the use of AR to
allow people to better visualise a
whole range of products available to
buy on their website. By holding a
marker image in front of a webcam,
consumers can get a moveable 3D
image of their product – helping
them get a better idea if it is right
for them.
Virtual sales
consultants,
Russia
Virtual consultants created by 3D
projections, recently appeared in
pharmacies in Moscow and St
Petersburg, providing consumers
with advice and information about
different drugs.
23
SHOPPER DIMENSION
How does this trend play out for shoppers?
Real time and location based technology
is transforming „savvy‟ shopping
Mobile technology is making the concept of ‗savvy shopping‘
increasingly sophisticated by providing real time and location based
discounts, coupons, vouchers and loyalty programmes.
People can now compare products at the point of purchase, and they
are increasingly able to access the best deals on these products based
on their location or position. AR allows digital information, such as
coupons, product reviews, or discounts to be applied ‗on top‘ of
physical locations when viewed on a mobile device. This allows
retailers to layer offers, promotions or reviews onto their physical store
or product for people to access through their mobile phones.
Location based technology that uses global satellite positioning (GPS)
is also allowing retailers to ‗tag‘ their stores and provide shoppers with
tailored offers that can be picked up on their mobiles when they pass
by. So called Geo-tagging could make cutting out coupons obsolete in
the future.
Glimpses of the future
„Attaching‟
coupons to
specific
locations,
Global
Layar is a mobile app that allows
digital content to appear on top of
physical world locations through
the camera of the device. This can
be used to layer promotional or
discounts ‗on top of‘ specific retail
locations.
Discounts for
frequent
„check-ins‟, GB
This Foursquare app allows
consumers to check-in to
Wetherspoon on their phones
every time they visit one of its
pubs. The person who checks into
the pub the most becomes ‗mayor‘
of the pub and receives a 20%
discount off food.
24
POINTS TO PONDER
Consumer
Shopper
•
How can you be more transparent about the costs
that make up the price of your products to
demonstrate value to consumers?
•
How can you reduce the risk of purchase for people by
providing in-store and online sampling and
visualisations?
•
Can you communicate the tangible benefits your
products deliver to people?
•
•
What kinds of exclusive benefits or rewards could
you offer people? How can you effectively link these
to your products or brands?
How can you take advantage of location-based
technology to provide people with real time and
tailored information about products and promotions
when they are on the move?
•
Could you provide shoppers with access to peer or
expert reviews of products at the point of purchase, or
on shelf?
•
Do you have a clear understanding of who your
consumers go to and rely on for purchasing
guidance and advice? Do your brands have
permission to credibly tap into peer to peer
networks to drive positive word of mouth?
•
Can your products or brands help people showcase
their expertise in an area of interest?
25