Consumers are likely to cling to familiar brands following a year of economic turmoil and food scares, according to predictions from research analyst Mintel.
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Crumbling economic markets and food scares including the melamine scandal, have fuelled an era of doubt and insecurity, said Mintel, resulting in people seeking out “trusting, open relationships” wherever they can.
Consumers will want to know all about the products they buy, from where they were sourced to how they were manufactured. Because of this, people will be looking for products with a sense of familiarity.
Looking ahead to 2009, Joan Holleran, director of research at Mintel said: “In the coming year, it will be more important than ever for businesses to respond quickly and creatively to changing consumer needs and desires, as we all become more selective in how we spend our money.”
As purse strings tighten, consumers will also look for ways to make their pennies stretch further by trading down to cheaper store brands. Mintel predicts that shoppers will mostly trade down to “budget-friendly” solutions to save money but occasionally, will need to indulge in small, affordable luxuries, like premium chocolate.
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By GlobalData“The middle market will increasingly be squeezed and is going to have to prove its worth when faced with competition from newly improved basic lines,” added Holleran. “Beyond this, many companies will position their products as a more affordable alternative to going out. For example, expect premium ready meals that give a restaurant experience at home or beauty products that bring a spa-like feel to the bathroom.”
As consumers become more confident and demanding about how they spend their money, even as the recession hits, they will want to stay in control of their choices wherever they can, Mintel said.
Consumers will seek out products and services that give them exactly what they want, when they want it, especially as their budgets tighten. And the Internet will be key as it shows people every option available and gives them the power to demand more, while also allowing them to influence others through user reviews and feedback.
Holleran believes manufacturers will respond with products that suit people’s specific needs and lifestyles. “Those companies that give consumers precisely what they want or give them the freedom to customise their purchases will do well. Companies that fail to do this will see consumers walk away.”
