CHICAGO — The latest research from SymphonyIRI Group’s Times & Trends, “2012 CPG Year in Review: Finding the New Normal,” reveals that budget restraints are still causing consumers to remain frugal in 2013, despite signs of economic recovery.
“For 2012, we forecasted that shoppers would continue to define value largely based on price, manufacturers and retailers would pass ongoing commodity price increases on to the shopper, and private label sales would continue in their current ranges,” says Piyush Chaudhari, president of the Americas, SymphonyIRI. “These predictions largely came to pass, and we expect 2013 to resemble these same trends in many ways.”
SymphonyIRI identified the following trends in 2012 that it expects will continue in 2013:
Shoppers will reduce the number of channels they visit. Share of consumers shopping at fewer than five channels grew three percentage points between Q1 and Q4 2012, and SymphonyIRI believes this will continue as shoppers limit spending to channels that are perceived as offering the best value.
While an increasing number of positive economic signs are emerging, count on shoppers to remain intensely focused on value. There is enough negative news about the federal budget deficit and costs of the new healthcare law, for example, to reinforce shoppers’ frugal behaviors left over from the last recession.
Millennials are becoming the new baby boomers. They are a 50-million-strong-shopping group now forming habits and loyalties. Tailoring offerings to this group and providing outstanding service will pay dividends for decades to come, both literally and figuratively.
“New” media is rapidly becoming traditional media. The trend of shoppers leveraging the Internet for information and deals is growing and will continue to gain momentum, as millennials age and a new generation that is even more tech savvy than the millennial generation enters the market.
”The nation is far from having a firm foothold on growth and stability, and consumers and marketers alike are very aware of this reality,” says Susan Viamari, editor of Times & Trends, SymphonyIRI. “Consumers’ pursuit for value is as intense as ever, and it has served to amplify industry competition. Inn