Magazines Archives - 2009 February
Global downturn dictating consumer choices
COSMETIC products and soda are the first to go as consumers the world over tighten their expenses in light of anxieties over the global economic uncertainties, according to UK consumerinsights
Explaining the findings, Mike Sherman, Synovate’s global director of knowledge management and insight, said consumers were likely to have made compromises across categories in terms
And consumers who allow themselves little luxuries like perfume or music might scrimp on other categories, while those whose cultural inclinations veer towards imbibing alcoholic beverage
“I suspect the story behind these numbers is that people are choosing to drink cheaper rather than drink less. The mistake would be to assume that everyone will respond in the same way,”
There is also a growing preference for generic products, according to the survey, which covered Malaysia, Hong Kong, Taiwan, Canada, the US, Mexico Brazil, the UK, Belgium, Bulgaria, Denmark,
“In general, more people have already switched to cheaper brands than [those] still planning to do so. However, there is still a significant number of people planning to switch, and room to manoeuvre for marketers,” the research firm maintained.
Based on its data, 18% of consumers have already switched to cheaper brands for canned goods, while 10% — mostly in Malaysia and Mexico — were planning to. The majority (58%) claimed
“There are more changes in brand leadership in a downturn than in good times. Clearly, there are good opportu-nities for generic or cheaper brands; and for the most expensive brands, it is a time to build on loyalty to protect, maintain and build on position,” Sherman noted.
Synovate’s findings on private labels dovetailed with The Nielsen Company’s survey results for Singapore showing such labels gaining popularity, with middle- to high-income households
This proves that house brands are no longer confined to the country’s lower-income segment, said Ooi Pin Pin, retailer services associate director of The Nielsen Company Singapore.
“Households with the highest combined income of above S$6,000 (US$3,970) registered the biggest jump of 46% to make up 28% of house-brand buyers. In fact, middle-class households with a
Nielsen found the staple and paper categories the most sought-after housebrand items while of the 80 grocery categories tracked by the company, rice, bread and cooking oil emerged the top three in demand.
“While house brands tend to compete on price, retailers should take heed of consumers’ receptiveness to move beyond this value proposition, and focus on quality and innovation to grow
“It is evident that house brands have shed their generic and inferior image of yesteryear as consumers search for the bargains that best meet their needs in these tough times,” she added.
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