Study: Shoppers leaving big brands behind
The study also showed more than half (65%) say are ‘are more open’ to buying store brands. Other interesting findings include:
• 25% of shoppers say they’ll 10% pay more for ‘innovative products’
• 33% say they’ll pay more for ‘craft versions’ of food/beverage products
• 55% say they use digital channels to research products
• 48% say they use digital to compare prices
“This is a critical moment for consumer product companies,” said Barb Renner, vice chairman, Deloitte LLP and U.S. Consumer Products leader. “While the majority of consumers say they are committed to sustained frugality year after year, our findings point to early signs that they may finally be responding to a belated but increasingly strong economic recovery. It creates tremendous opportunities and risks for companies in this sector, given households’ lack of commitment to national brands brought on by years of stretching dollars to the limit. Brands that get things right can use the economy’s momentum to regain their place on consumers’ shelves, but those that move too slowly could very well be left behind.”
Researchers believe the change could be because of the way consumers are now shopping. Whether ordering online or using mobile devices to find coupons or deals, many shoppers are looking at price and half (51%) make their purchase decisions at the shelf.
The report also indicates:
• 89% of shoppers impulse buy because of discounts
• 81% impulse buy because they’ve seen a product on shelves before
• 63% impulse buy because ‘they want to try’ new products
“Although price remains the single biggest factor influencing at-the-shelf purchases, many other aspects can also catch shoppers’ attention,” said Rich Nanda, principal, Deloitte Consulting LLP and co-author of the study. “CPG companies should step back and consider challenging the status quo, rather than immediately resorting to discounts and promotions. Focusing more effort on non-price related triggers might seem risky in the short-term, but may improve long-term brand health, loyalty and margins.”
