“I like to pursue better value, to help
maintain my lifestyle and to get the
most from the money I have”
“I like to pursue better value, to help maintain my lifestyle
and to get the most from the money I have”
The proliferation of choice and information has empowered consumers,
allowing them to be more selective in their purchase decisions. Rising
economic anxieties and financial constraints have led to greater scrutiny
of the market place, driving a stronger focus on value and a need to
make smarter choices.
Deciding what is good value has become more complex. The relationship
of quality to price remains. However, trust, familiarity, provenance and
even wider environmental and social concerns can now form how a
consumer sees value.
Room for luxury and indulgence remains. Cheaper does not necessarily
mean better. Big splurges have been replaced by more considered
choices; a desire for discernment is still strong and rarely now expressed
by buying the most expensive option.
The changing shape of the trend as the recession
continues
Consumers in
control
COPING
with the pressures of
change
Financial anxiety causes consumers to place
greater emphasis on coping strategies and
solutions
Smart
shoppers
LESS INTENSE
From trading
down and
trading up, to
a pursuit for
greater value
through all
aspects of our
purchasing
EMBRACING
the opportunities of
change
MORE INTENSE
Consumers feel less inclined to embrace new
opportunities, particularly if they carry a
premium
People are focussing more on value in all their
purchase choices
I like to splash out on some products or services,
even if it means I have to economise more radically
in other areas
% Agree
60
2008
57
2009
57
54
47
50
49
46
39
40
41
37
35
30
20
10
0
Ireland
GB
Rest of EU
Source: Global MONITOR 2009
USA
BRIC
Sales at discount
retailer Aldi climbed
by 14.8% in 2008
compared to the
previous year, with
an overall market
share of 3%.
Source: www.guardian.co.uk
2009
But it is not always about buying the cheapest;
defining value has become a more complex equation
I usually choose the cheapest products available
(Disagree)
2008
% Disagree
45
40
40
2009
38
35
35
31
31
37
34
31
30
25
Buying own brand is
an increasingly
popular consumer
strategy for saving
money, however
growth has not been
significantly greater
in the recession
Source: TNS World Panel 2009
20
23
20
15
10
5
0
Ireland
GB
Rest of EU
Source: Global MONITOR 2009
USA
BRIC
A strong desire for indulgence remains, but on a
smaller scale
L‟Oreal recently reported growth of
5.3% in like-for-like sales of its lipstick
lines. The „lipstick effect‟ shows that in
a recession sales of lipstick do well, as
consumers opt for accessible luxuries
whilst cutting out bigger ticket items.
Source: marieclaire.co.uk 2009
Marks and Spencer are offering a
restaurant quality two course meal for
£10 in store. Choose from roast
chicken, pork medallions, roast
potatoes, vegetables, stuffing, fudge
pudding, cheese selection and loads
more. You can also choose from great
wines by the bottle to compliment
your meal.
Drivers
Rise of new media and
communication technologies
Sub-trends
Value seeking
The deepening desire for good value
Accessible luxury
Luxury items at more everyday prices
Increasing availability of
information
Exclusive choices
The demand for exclusivity and rarity
Counselled consumption
Economic anxieties
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
Growing market competition
and choice
Just right for me
The shaping of products and services to meet
individual needs
Key takeaways
• Value - and its pursuit - has been the dominant theme in recent
times. A greater emphasis has been placed on the function and
performance of products, rather than the more emotional aspects
of brand values. How people view value has changed and their
frame of reference has become broader as cut backs in all parts of
their lives have often been needed.
• As bigger ticket purchases and lifestyle expenses have been harder
hit; many people have sought to compensate for their loss through
more indulgent choices in everyday purchasing behaviour.
• People are seeking advice in navigating the marketplace. The
desire for greater knowledge is often intertwined with a desire to
make a good choice.
SUB-TRENDS
SUB-TREND:
Value seeking
The deepening desire for good value
Ensuring good value on products and services is increasingly important for people as budgets
get tighter. In today‟s world „cheap‟ no longer needs to represent a compromise. New forms
of ownership and collective ways to pursue value have emerged allowing us to hold on to
parts of our desired lifestyle.
HOW IS THE SUB-TREND EVOLVING?
People use team
buying to successfully
demand group-rate
discounts, China
THEN
Price comparison
sites help people
save money, Global
The rise of collective power to find the best
value
‘essential Waitrose’
effectively
combines quality
together with an
affordable price,
GB
Fractional ownership
website allows
consumers to share
or rent higher cost
items, Global
Smart apps to
check prices onthe-go, Global
NOW
More innovative ways to pursue value to maintain
lifestyle choices
SUB-TREND:
Value seeking
The deepening desire for good value
Private Label offers
quality at good prices,
GB
Sharing ownership of
costly items, Global
New apps for price
comparision, US
Waitrose Own Label lines have
always been produced to a
superior quality and have even
sold as a stand-alone brand in
supermarkets throughout the
world. „essential Waitrose‟
effectively combines the quality
customers have come to expect
and the reassurance of
Waitrose‟s values, together with
affordable prices.
Shared ownership is gaining
popularity, as consumers feel the
squeeze of tight finances.
Websites such as
FractionalLife.com allow
consumers to rent big ticket
items such as a designer
handbag for short periods of
time.
Often retail stores advertise with
prices much higher than usual
for a product. The BestValue app
on iPhone can protect you from
paying to much for a product in
retail stores. It gives you the
ability to check prices for all
kinds of products.
SUB-TREND:
Accessible luxury
Luxury items at more everyday prices
People continue to pursue greater luxury in all aspects of their lives. However, the pressures
of trying to make ends meet means a shift away from the bigger indulgences to small
luxuries that provide an everyday experience. As larger lifestyle expenditure is reduced,
everyday items still offer an affordable outlet for more indulgent purchasing.
HOW IS THE SUB-TREND EVOLVING?
Celebrity designs
on the high street
through H&M,
Global
THEN
‘EasyCruise’ offers
budget cruises,
Global
Beer served in
champagne-like
bottles to give an
extra sparkle to an
everyday drink,
Spain
More luxury experiences at high street prices
and premium versions of everyday items
Premium organic,
exotic flavoured
popcorn adds more to
the popcorn occasion,
US
Premium ready meals
continue to thrive as an
alternative to eating out, GB
NOW
Trading down from bigger lifestyle to everyday
treats and rewards
SUB-TREND:
Accessible luxury
Luxury items at more everyday prices
Luxury supermarket
ranges, UK
Premium popcorn, USA
Chocolate Treats, Global
Tesco Finest is now the UK's
biggest grocery brand with sales
of £1.2bn in 2008. The
supermarket's premium ownbrand range, which was launched
a decade ago, has now overtaken
its Value and Healthy Living lines.
Many consumers are choosing a
premium meal over going out.
479 popcorn is made to order in
exotic flavours such as
Alderwood Smoked Sea Salt,
Ginger Sesame Caramel and
Black Truffle & White Cheddar,
bringing premium choices into
everyday.
Swiss chocolate makers bucked
the recessionary trend with
record sales — nearly 185,000
tons, an increase of 2% over
2007, sold domestically and in
140 export markets.
SUB-TREND:
Exclusive choices
The demand for exclusivity and rarity
People‟s desire can be heightened by the feeling that a product is only for the few. Rarity can
make the product feel special and super-premium pricing can raise the allure of products for
some. Even in harsher economic times, people are looking for goods and services that show
discernment and separate them from the masses.
HOW IS THE SUB-TREND EVOLVING?
Designer wine by
Roberto Cavalli,
US
THEN
Kopi Luwak is a coffee
whose taste is
affected by passing
through the ingestion
system of a Sumatran
Civet Cat, Global
More novel forms of rarity and superpremium choices
Vodka filtered
through
diamonds for
greater
purity, US
Hidden stores add to the
reward of tracking down
new edition products for
Adidas, US
Pepsi frequently produce
limited edition summer
flavours that only the few
get to sample, Japan
NOW
More everyday exclusivity and the satisfaction of
being one of the few
SUB-TREND:
Exclusive choices
The demand for exclusivity and luxury
Diamond filtration
process, US
Secret sneekers store, US
Limited edition flavours,
Japan
Diaka Vodka from TransBorder
Spirits US is packaged in an
embossed bottle. Made in Poland,
the vodka uses a filtration
system that uses around one
hundred diamonds, all around
one carat in size. The
manufacturers claim that the
diamonds ensure that the vodka
has a clarity and smoothness
unlike any other vodka in the
world.
Adidas created a 'pop-up' secret
showroom in Chinatown NY to
build hype around the brand. For
its limited existence, access was
granted only to those who knew
it existed and could find 'Vinny,
the man dressed head-to-toe in
Adidas' who gave the lucky few
the password and directions to
the store.
Pepsi frequently produce limited
edition summer flavours for the
adventurous Japanese market.
Ice Cucumber proved such a hit
that only a few managed to
sample the unusual flavour
before it disappeared off the
shelves.
SUB-TREND:
Counselled consumption
The rise of specialist advisers and peer reviews for all consumption
matters
The desire for advice from both experts and peers continues to grow, as people are more
keen than ever that they make the right product or service choice for them. Both technology
and more personal services are enhancing the experience of counselled consumption.
HOW IS THE SUB-TREND EVOLVING?
Online shopping
comparison site invites
consumers to leave
reviews on individual
sellers, Global
THEN
Scan in a barcode
to find out what
others have said
about that
product, Japan
Seeking the opinion of others
The garment and the
magic mirror
communicate via RFID
technology and assist
the consumer
identifying the same
garment in other sizes
or colours, Spain
Cocktail Advisor invites
users to enter in their
preferred tastes,
ingredients and textures
to come up with
suggestions of cocktail
recipes, US
Consumer coaches
guide shoppers
around store, US
NOW
Increasingly personal advice delivered to your
fingertips
SUB-TREND:
Counselled consumption
The rise of specialist advisers and peer reviews for all consumption
matters
Consumer coaches, US
Be guided to your ideal
cocktail, US
The smart mirror, Spain
Many consumers want to know
that they are making the best
nutritional choices for their family
but may not know how to shop
for them. The newest solution in
the US is in the form of
registered dieticians, who give
supermarket shoppers nutritional
tours to change the way they
shop.
This website invites users to
enter in their preferred tastes,
ingredients and textures to come
up with suggestions of cocktail
recipes that match their
requirements.
At the last Bread&Butter fashion
week in Barcelona, Avery
Dennison has presented a magic
mirror that helps clients to take
decisions in the changing room.
The garment and the mirror
communicate via RFID technology
and assist the consumer
identifying the same garment in
other sizes or colours and
proposes similar pieces available
in the shop.
SUB-TREND:
Expert status
Growth in pursuit of knowledge and discernment for identity and status
People increasingly have the opportunity to become expert in almost anything they choose;
from the more mundane daily activities to an in-depth knowledge of the finer things in life.
New communities of interest have developed and technology provides people with improved
access to knowledge.
HOW IS THE SUB-TREND EVOLVING?
Get technology tips from
the experts at Apple’s
Genius bar, Global
THEN
Learn more about
wine with the
Conran kit, GB
Experts thrive in specialised areas
Become an expert
shaver, GB
Learn to cook with a
Michelin Chief, GB
Get an on-the-go guide
to the Franciacorta wine
region via your mobile
phone, Italy
NOW
More instant opportunities to build expertise in
almost any aspect of life
SUB-TREND:
Expert status
Growth in pursuit of knowledge and discernment for identity and status
Become an expert
shaver, GB
Learn to cook at The
Kitchen, GB
Mobile regional wine
guide, Italy
London-based grooming shop
Geo F. Trumper now offers
classes on how to shave properly.
Customer demand led to the
introduction of the one-to-one
sessions, in which a barber
shows a customer the best
techniques for shaving and how
to avoid unsightly problems such
as ingrown hairs and razor burn.
At The Kitchen you experience,
first hand, how to create great
tasting food from the finest
ingredients with Michelin Star
Chef Thierry Laborde and his
team. Whether it's creating
meals, cooking lessons, food
appreciation courses, wine
tasting, or simply a chance to
spoil yourself, The Kitchen has a
course for everyone.
The Franciacorta wine region in
North Italy has recently
launched an online service
accessible via mobile phone
that provides a full guide to the
region‟s wines, allowing
consumers to become expert in
situ and on the move.
SUB-TREND:
Just right for me
The shaping of products and services to meet individual needs
People have always been interested in customising products to suit their own needs and
preferences. As expectations around personalisation rise and technology becomes a greater
enabler, people increasingly look for ways they can shape all aspects of the product
experience.
HOW IS THE SUB-TREND EVOLVING?
Print your own
message or
face on M&Ms,
Global
THEN
Customise your
own Anya
Hindmarsh
handbag, GB
Cosmetic tailoring of products to deliver a more
personal touch
Potato Chip kits in
the US come with
seven seasoning
blends to add, US
Create your
fragrance, Australia
Create your own
personal muesli online, Germany
NOW
Shaping the product from the basic ingredients
to ensure the best fit
SUB-TREND:
Just right for me
The shaping of products and services to meet individual needs
Potato chip kits, US
My Muesli, Germany
Custom perfumes, Australia
Limited-edition Kettle Potato Chip
kits come with four bags of plain
crisps and seven seasoning
blends — you‟re encouraged to
get creative with your own
ingredients and combinations.
Using a simple and user-friendly
on-line interface, customers
build their own personal muesli.
First, they pick a foundation
(oats and other grains), then
add fruits, nuts and seeds, and
finally extras like organic gummi
bears and alfalfa.
Customers can
.
name their mix, which is also
assigned an ID that's printed on
the muesli box.
La Tete is Australia‟s first and only
natural perfumery and boasts the
expertise of perfumer Simon
Dunks. Dunks creates
individualized perfumes for clients
from all over the world using
some of the most precious
essential oils, extracts, absolutes,
tinctures, resinoids and concretes
available, some of which are up to
a hundred years old.
COUNTRY RELEVANCE
COUNTRY RELEVANCE
How the trend is playing out in Ireland and GB
This trend is accelerating due to the recession, as consumers in both markets look for ways
to save money whilst continuing to ensure they get the best deal. The desire for luxury and
indulgence is not lost; instead people look for more everyday solutions that are being traded
off against larger lifestyle choices.
Ireland:
• The pursuit of value is very relevant as Irish
consumers are feeling the impacts of the
recession. Money saving strategies have
superseded the need for convenience. Many
people are crossing the border to find better
deals, as well as shopping around at home.
• Aspects of the trend that are more about higher
order needs such as exclusivity and premium
choices are less resonant elements of the trend,
as consumers are less interested in
demonstrating conspicuous consumption
behaviours.
GB:
• People are increasingly aware of the need to save
money. However, they prefer not to make
sacrifices, preferring instead to make trade-offs
and compromises.
• Knowledge is critical and people are seeking the
advice of others or building their own knowledge
in order to choose the best food products and
enjoy the status that being expert confers.
COUNTRY RELEVANCE
How the trend is playing out in Ireland and GB
Ireland:
Value seeking
The deepening desire for good value
Accessible luxury
Luxury items at more everyday prices
Exclusive choices
The demand for exclusivity and rarity
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
Just right for me
The shaping of products and services
to meet individual needs
Strength in 2009: Cooling
GB:
Value seeking
The deepening desire for good value
Accessible luxury
Luxury items at more everyday prices
Exclusive choices
The demand for exclusivity and rarity
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
Just right for me
The shaping of products and services
to meet individual needs
Still warm
Heating up
BEYOND THE RECESSION
BEYOND THE RECESSION
What might the next 2-5 years bring?
•
The pursuit of value is likely to remain
even after the recession and what
represents value will always be more than
low price. People may explore ways of
hedging prices by taking a share of the
company or by fixing prices longer-term,
especially if prices increase.
•
People will want to deepen their
knowledge of production, and even be
prepared to get involved in the processes,
to get better value and build their
expertise.
•
Products that offer a luxury experience
will increase in appeal again as prosperity
returns. Innovation should focus on
adding genuine value and experience to
product ranges through the full user
experience.
TAKING A SHARE
The King of Shaves is offering
people the chance to invest in a
3-year bond, giving a 6%
interest payment and free
product throughout the duration
of the bond.
PERSONAL ADVICE
At The Kitchen you can
create a weeks worth of
meals with a Michelin Star
chef for as little as £35,
cheaper than eating out or
cooking from scratch
MORE LUXURY IN EVERYDAY ITEMS
Part of Method‟s
success story is
attributable to their
use of design in
creating a distinct
and recognisable
identity.
POINTS TO PONDER
POINTS TO PONDER
Navigating the challenges
of today
•
Can you more effectively communicate your
value for money proposition to consumers?
What are consumers using to judge value in
your category and what are their reference
points?
•
How can you position luxury and indulgence
as an everyday lifestyle choices and
necessary treats in harder financial times?
•
How can you help consumers learn more
about your products and the expert skills that
go into making them? How can technology
play a part in facilitating this or, can you offer
a real learning experience?
Planning for the
longer term
•
Could people take a stake in parts of your
production process e.g. give them the
opportunity to own a tree, field or animal in
return for a better price over time?
•
Can you add value to your product range so
that it gives people a little more luxury in
their everyday lives? What role can packaging
play in delivering a more premium
experience?
•
How can you form communities of interest
and knowledge around your products? In
what ways can you connect people who have
shared interests in your products and the way
they are used?