BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Ecommerce archives : June 23, 2015


Study: Shoppers leaving big brands behind

As more shoppers change the way they shop - from using mobile devices in stores to ordering everything online - they are making another change and leaving big name brands behind. That is the takeaway from new Deloitte research which indicates three-quarters (73%) of CPG brands have declined in the 'must have' category.

by Kristina Knight

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."






Image via Shutterstock

Tags: CPG trends, Deloitte, ecommerce, ecommerce trends, retail trends, shopping trends








Subscribe to BizReport







http://www.bizreport.com/2015/06/study-shoppers-leaving-big-brands-behind.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.