Rising food and petrol prices is impacting on how much shoppers spend. They are actively trying to cut back and be more 'responsible' about what they buy. Shoppers are becoming more time pressed and while they need to plan to save money, this often doesn't materialise. They are becoming more difficult to engage as they cut back on 'nice to haves' and think more carefully about their purchases. The first things to go are holidays, eating out at restaurants and take-away's, however shoppers still need their rewards (although they are not currently buying them). Entertaining at home is likely to increase. Shoppers are placing more importance than in 2005 on products that make them feel good about themselves.
So what are the implications for retailers and manufacturers?Shopper behaviour changes can have a significant impact on retailers and certain categories. Shoppers are doing fewer trips and there is likely to be a trend of 'one stop shopping' for essential goods. Although shoppers are intending to do larger, bulk trips, in real terms they are just doing larger top ups. There is less likelihood of shoppers going elsewhere if their products are out of stocks, and are more likely to switch brands. There is more price consideration and awareness of promotional items as budgets are scrutinized more.
So what can you do?Shoppers are going to be looking for value, and retailers and manufacturers need to demonstrate this by highlighting this through relevant POP communication. In-store reminders will need to play an important role in stimulating purchase. More focus on affordable convenience solutions will drive the value proposition. Quality is particularly important and many brands provide this assurance. POP tactics will therefore need to be more impactful and creative. With home entertaining likely to increase, there is an opportunity to deliver shoppers affordable treats / rewards through the retail offering. Look at creating entertaining solutions for shoppers. Trigger the consumption need at the POP to entice shoppers and remind them why they need it. The type of promotional activity needs to be relevant to the needs of the shopper. The opportunity in challenging trading times is for retailers and manufacturers to accelerate shopper-centric thinking. Driving a shopper-centric agenda is becoming more important than ever before and claiming that share of a much more 'prudent wallet' can only benefit retailer and brand loyalty into the future.
For more information on how Inperspective can assist you in bringing Shopper into the heart of your business agenda, go to our web-site at: www.inperspective.co.za
