Recent consumer research from Mintel shows people around the world feeling pessimistic and trying to change their lifestyles, but still finding ways to lighten the mood.
At the end of last year, Mintel forecast five global consumer trends for 2009. Mid-year, the market research specialist uses insight from its expert analysts and market research to take stock of how these trends are playing out, noting nuances and the new set of values being adopted by people around the world.
Harry Foster, global analyst at Mintel, says: “Reviewing the key trends Mintel forecast for 2009 demonstrates how these trends have impacted consumer behaviour. At the end of last year, we knew 2009 was going to be difficult for people across the globe. But as we review our five consumer trend predictions, we see that optimism has steadily balanced out stress and economic hardship. The first half of the year was especially challenging, but with tentative, recent green shoots of recovery, we expect people’s attitudes to brighten considerably in coming months. Consumers have a resilient ability to stay positive amid tough circumstances.”
Trust is 2009’s paramount concern, as banks, food manufacturers and government officials suffer from losing people’s trust. In the UK, loss of trust in financial institutions has been inevitable, but across the spectrum brands have been fighting to establish themselves as the brand to be trusted. Trust has been key to keeping consumer loyalty as cash-strapped shoppers look to cheaper own-label options that are more of a threat than ever. Mintel research shows 39% of Brits on a budget are looking to switch to own-label. US food companies are at risk too, as six in 10 Americans worry about food safety.
When the financial bottom dropped out last year, already choosy consumers found another reason to grasp for control – security. In the UK, as many as six million Brits (13%) intend to increase their savings in the next year or so, while a further three million people (6%) who are not current savers intend to start saving soon.
Meanwhile, a Mintel survey of US mass affluent adults shows two in five saying they intend to permanently spend less and decrease their reliance on credit cards, thus increasing control over their finances. Control has become more than just economy related – it’s about a lifestyle change, which is giving consumers greater control over choice and consumption.
“We see a new value set taking hold as people adapt to today’s tighter economy,” says Harry Foster, global analyst at Mintel. “Conservative and pragmatic are in, excess is out. Consumers feel pessimistic about the future, so they’re taking cautious steps to ensure their safety and happiness now.”
Despite negative feelings about the economy and pressure to cut back, people still want to enjoy themselves. Helping them achieve balance, manufacturers around the globe have been releasing quirky, light-hearted new products in 2009.
Playfulness offers a necessary way to escape, engage and build relationships between consumers and brands, but the interest in happiness goes deeper and ties closely to what we need from the brands people come into contact with. Ultimately, the economic crisis is spurring innovation as consumers alter their behaviours to cope with the new world. Playfulness offers a way to look at the new innovations and needs that will blossom in the future.
In work and play, consumers around the world continue seeking simplicity. Manufacturers have followed suit globally, launching more products to appease people’s desire for products with clear functions and packaging. FMCG products, therefore, must do all they can to cut through that clutter already out there and be the products that the consumer focuses on.
Simplicity of language and clear communication of a product’s purpose or benefits is an area that has seen considerable development. The language cues tell a clear, easy-to-understand story that often sums up what the product is all about and has been highlighted in an increasing amount of simplified packaging in 2009.
Restaurants and supermarkets have extended this trend by offering all inclusive prices for meal deals, being up-front and transparent about what consumers will get for their money. Connecting simplicity, convenience and assistance will be crucial for consumers living in today’s economy.
Trying to save where they can, consumers continue trading down in their shopping habits. Some 54% of Brits are buying more food on special offers and multi-buys, while over a third (36%) are trading down and buying more budget own-brands from supermarkets, and one in five (21%) are buying more from discount grocers.
In addition, 51% of Brits say they’re eating out less, and the British public is re-igniting its love of frozen food, with sectors such as frozen desserts forecast for 8% growth this year after years of stagnation. Meanwhile, eight in 10 Americans say they’re cooking at home more, while a full 52% admit to spending less at restaurants this year than last.
With so much trading down, however, many consumers also trade up in some instances to reward themselves. Small luxuries such as fine chocolate or perfume are a common treat, while other shoppers purchase gourmet food at the supermarket because it’s still more affordable than eating out.
Source: Mintel
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