Post-recession shoppers are changing their attitudes to brands
Rod Street SymphonyIRI Group
Europe is now entering its sixth year of economic turbulence and this is changing shoppers' attitudes to brands, possibly forever.
Across Europe, shoppers are concerned about household finances and 73%, according to the most recent shopper survey from SymphonyIRI Group, believe that the economic situation is worse in their country than a year ago. More than half believe that theConsumers are adapting to the squeeze on their household budgets by taking control and buying more carefully, cutting back, trading down, buying more retailers' own labels and reducing the frequency of purchase. Pre-planning shopping is also becoming more important. More than 75% of shoppers now write or memorise a shopping list and 16% use a list more now than they did in 2011. This is contributing to the fact that 62% of shoppers know which categories they will visit and which brands they will buy before they arrive at a retailer. Economic hardship is forcing consumers to pay more attention to prices than they did last year. The research they conduct at home is contributing to the fact that 12% are now more likely to buy private label rather than national brands. Finding value is paramount as shoppers remain cautious about the cost of their shopping basket. This has resulted in national brands boosting trade promotion activity: products on deal now account for an average 25.6% of all groceries sold in Europe. The level of promotion is highest in the UK at 56%, up 3.6% on last year, and lowest in Germany at 11.6%. In major categories across Europe, confectionery has the largest volume of products sold on promotion (29.2%), followed by non-alcoholic drinks (28.9%), personal care (28.8%) and alcoholic drinks (28.5%).