The impact of crisis on purchasing intentions
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Transcript of The impact of crisis on purchasing intentions
How does the post-recession consumer review his purchasing intentions?1st July 2010
Contents
Is the crisis behind us ?
Nothing will ever be as before !
Purchasing intentions in 2010
Do A-brands still resist ?
All men are equal… What about consumers ?
What does today’s shopper expect ?
Conclusions
Is the crisisbehind us ?
More positive feelings ?
National universe ; 18-54 years ; May 2009 & March 2010
I fear for loss of job
I fear for the future
I try to put money aside for harder times
I think several times before spending one euro
12%
20%
39%
38%
13%
22%
38%
42%
2009 2010
National universe; 18-54 years ; May 2009 & March 2010
Ends of months are hard
We are doing very well
Without opinion
Less money worries ?
2009 2010
34% 32%
44% 44%
22% 24%
2009 2010
39% 35%
38% 41%
23% 24%
Obligation to give up the extras
We spend a lot of money to enjoy ourselves
Without opinion
2009 2010
43% 39%
24% 28%
33% 33%
No possible savings
We put quite a lot of money aside
Without opinion
Nothing will ever be as before !
The post-recession consumer is likely
to consume
very differently
!
Experts and observers agree…
We’ll live in a new business landscape !
• Financial• Social• Culpability• Hyper-
consumption• Values
Crisis
• Sudden awareness
• Readjustement of the modes of purchase
• Ethical & environmental concerns
New reflexes
• Back to the essential
• Simpleness• Responsibility• Useful
expenditures• Smart shopping
Structural changes
It’s now trendy to be frugal & thrifty !
National universe ; 18-54 years ; May 2009 & March 2010
I pay much attention to promotions
I'm careful with my expenses
I regularly use coupons
49%
52%
55%
Current purchases
Attitudes 2010 – Top 3
I save on the extras
I often stay at home or I do things at home because it's
cheaper
I avoid or I limit famous brands for clothes & shoes
35%
38%
40%Leisure activities &
equipment
Attitudes 2010 – Top 3
Purchasing intentions
Fast Moving
Consumers Goods
FMCG : expenses are not irreducible !
National universe ; 18-54 years ; May 2009 & March 2010 ; buying intentions
2009 2010
11%23%
72%
69%
15%7%
decreasing expenditures
stable expenditures
increasing expenditures
don’t know
FOOD
2009 2010
16%28%
71%
66%
10%4%
DRINKS
FMCG : expenses are not irreducible !
National universe ; 18-54 years ; May 2009 & March 2010 ; buying intentions
2009 2010
12%28%
75%
67%
11%4%
decreasing expenditures
stable expenditures
increasing expenditures
don’t know
HOUSECARE
2009 2010
22%32%
64%62%
9%4%
HYGIENE & BEAUTY
Leisure
Let’s go, but with less money !
National universe ; 18-54 years ; May 2009 & March 2010
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
25 27
37 39
10 7
81% 78% 86% 79%
-4% +10%
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
33 33
41 43
5 3
-8%
Trips & Holidays
Restaurant
87% 82% 92% 82%
-6% +12% -10%
Total customers
Decreasing budget
New customersDon’t know
Equal budget
Increasing budget
The most optimistic intentions !
More necessary than it appears !
National universe ; 18-54 years ; May 2009 & March 2010
statements 2008
intentions 2009
statements 2009
intentions 2010
23 24
3237
31
New customers
Don't know
Increasing budget
Equal budget
Decreasing budget
Total customers
70% 61% 79% 66%
-13% +29% -16%
Time outReality goes far beyond
the intentions !
Crisis, always crisis! And what about me?
National universe ; 18-54 years ; May 2009 & March 2010
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
14 19
3539
42
62% 56% 74% 64%
-9% +31%
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
16 17
2530
22
-14%
Sport
Relaxation & well-being
54% 46% 67% 54%
-16% +45% -19%
Total customers
Decreasing budget
New customersDon’t know
Equal budget
Increasing budget
Largest increase between 2009 & 2008 !
Personal equipment
No more place in my wardrobe, anyway !
National universe ; 18-54 years ; May 2009 & March 2010
statements 2008
intentions 2009
statements 2009
intentions 2010
2837
6155
7 3 New customers
Don't know
Increasing budget
Equal budget
Decreasing budget
Total customers
99% 98% 99% 97%
-1% +1% -2%
ClothesA large part of
decreasing budgets !
Temptation is strong…
National universe ; 18-54 years ; May 2009 & March 2010
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
27 25
40 44
2 4
82% 73% 87% 76%
-11% +20%
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
28 26
33 37
1 3
-13%
PC, games, …
Audio & hi-fi
74% 66% 84% 70%
-12% +27% -17%
Total customers
Decreasing budget
New customersDon’t know
Equal budget
Increasing budget
Reality goes far beyond the intentions !
Household equipment
Home sweet home…
National universe ; 18-54 years ; May 2009 & March 2010
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
26 25
36 35
13 17
86% 83% 89% 82%
-3% +7%
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
24 24
38 36
4 7
-8%
Home
Garden
76% 71% 79% 71%
-6% +12% -10%
Total customers
Decreasing budget
New customersDon’t know
Equal budget
Increasing budget
The most optimistic intentions !
The dog is man’s best friend !
National universe ; 18-54 years ; May 2009 & March 2010
statements 2008
intentions 2009
statements 2009
intentions 2010
8 11
4240
3 2 New customers
Don't know
Increasing budget
Equal budget
Decreasing budget
Total customers
60% 55% 62% 59%
-8% +11% -4%
Pets The greatest stability !
Not expected breakdowns ?
National universe ; 18-54 years ; May 2009 & March 2010
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
22 23
3542
32
74% 67% 85% 73%
-10% +27%
state
ments
2008
inte
ntions
2009
state
ments
2009
inte
ntions
2010
16 18
2535
4
4
-14%
Small appliances
Big appliances
59% 55% 76% 63%
-6% +38% -16%
Total customers
Decreasing budget
New customersDon’t know
Equal budget
Increasing budget
Reality goes far beyond the intentions !
Do A-brands
still resist ?
Globally, the highest preference rate !
« Dove, Dreft, Danone,etc »
« Delhaize, 365 (Delhaize), Cora, Carrefour, Everyday (Colruyt) »
« Numéro 1 (Carrefour) or brands by Aldi, Lidl, Leader Price… that are not A-brands»
% A-brands
% Private labels
% White products
National universe ; PRP 18-54 years ; base = total users ; average 40 FMCG categories ; May 2009 & March 2010
2008 2009 2010
62.8 61.3 59.9
26.4 26.6 23.6
10.8 12.1 16.5
Amongst 40 registered FMCG categories
Snacking
Food (total)
Drinks
Housecare
Hygiene & beauty
Cooking aids
Average 40 FMCG
-1.2%
-2.2%
-2.8%
-3.3%
-4.1%
-4.2%
-2.9%
Sectors : the biggest challenges ?
2008 2009
63% 61% 60%
83% 80% 79%
59% 56% 58%
67% 64% 63%
59% 57% 56%
54% 54% 50%
62% 62% 59%
Preference rate of A-brands
National universe ; PRP 18-54 years ; base = total users ; May 2009 & March 2010 ; evolution in points 2010 vs 2008
2010
Evolution 2010 vs 2008
How do the FMCG categories behave ?
Milk
Deep-frozen food & ready
meals
Cheese
Coffee
Still mineral water
Oil & butter
Washing products
Toilet tissue & kitchen roll
Canned food
Toothpaste & buccal hygiene
Special beers
Cereals
Shampoo
Fruit juice
Soda
Hair products
Pils beer
Tissues
Jam
Cola drinks
Stain remover
Soap & gel
Chips
Face care products
Yoghourt
Household products
Sugar candy
Dressings
Energy drinks
Probiotic drinks
Candy bars
Vitamins & mineral salt
products
1st quintile
-7.8%2nd quintile
-4.2%3rd quintile
-1.9%4th quintile
+1.2%5th quintile
+4.8%
Washing up products
WC products
Deodorant
Biscuits
Ice-cream
Ready desserts
Chocolate
Body care products
National universe ; PRP 18-54 years ; base = total users ; May 2009 & March 2010 ; evolution in points 2010 vs 2009
49.2% 55.7% 63.4% 63.9% 61.6%Preference rate of A-brands
All men are equal… What about consumers ?
Consumers’profile
What is the profile map made of ?
March 2010
1. We are doing very well2. We spend a lot … to enjoy
ourselves3. We put quite a lot of money aside
1. I think several times before spending…
2. I try to put money aside for harder times
3. I fear for the future
1. Current purchases : I’m careful with my expenses
2. Leisure : I save on the extras
Average for 40 FMCG categories
Similar budget1. Current purchases :
food, drinks, housecare, hygiene & beauty
2. Leisure : trips & holidays, restaurant, time out, sport,
relaxation & well-being
3. Personal equip : clothes, PC & games, Telecom, Audio & hi-fi
4. Household equip : big appliances, small appliances, home, garden, pets
Positive fi
nancial s
ituatio
n
Positive fe
elings
Positive a
ttitu
des
Prefe
rence ra
te o
f
A-b
rands
Current p
urchases
Leisure
Personal e
quip.
Household e
quip.
70
80
90
100
110
120
Transposition into affinity index
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120Singles
Households : some obvious observations…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120Singles
Households : some obvious observations…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120Singles No kids
Households : some obvious observations…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120Singles No kids
Households : some obvious observations…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120Singles No kids With child. 18+
Households : some obvious observations…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120Singles No kids With child. 18+
Households : some obvious observations…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120
Singles No kids With child. 0-5 With child. 6-11
With child. 12-17 With child. 18+
Households : do not explain everything…
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
Positive
financia
l situ
ation
Positive
feelin
gs
Positive
attit
udes
Prefe
rence
rate
of
A
-bra
nds
Current p
urchase
s
Leisure
Personal e
quip.
Household
equip
.70
80
90
100
110
120
SG 1-4 SG 5-8
Social groups : completely different consumers !
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Buying intentions = similar expenses
100
20 40 60 80 10020
30
40
50
60
70
80
SG 1-4 : more ‘good’ spendings in FMCG
SG 1-4 SG 5-8
% preference rate of A-brands
% s
imila
r ex
pen
dit
ure
s
Food
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
Drinks Housecare
HygieneFood
Drinks Housecare
Hygiene
What does today’s
shopper expect ?
Some strategies analysed in Fact…
Your customers
PRICEPragmatic strategies
BRANDProgressive strategies
RETAILInstore strategies
WORD OF MOUTH
Strategies of membership
PRODUCTStrategies of the
offer
To preserve the purchasing power
To show oneself skilled and/or responsible
To provide satisfaction and
pleasure
1. PRICE sensitivity
40%
51%
57%
25%
20%
19%
35%
29%
24%I always look for
products in promotion
without opinion
National universe ; PRP 18-54 years ; May 2009 & March 2010
I collect coupons & participate to contest
actions
I look as much as possible for cheaper
products
I do not pay attention to in-store promotions
I have neither the time nor the desire to collect coupons & participate…
I’m very critical towards cheap products because…
UP in 2010
(48% in 2009)
(38% in 2009)
(53% in 2009)
A- brands Brand lovers
loyal to favourite
brandLoyal
shoppers
purchase in
promotion
Good deal shoppers
try different brandsZappin
g shoppe
rs
Preference in terms of types of products
(A-brands, Private labels, White products)
Types of shoppers amongst
brand lovers
Types of shoppers amongst
loyal shoppers
A-brands, PRICE sensitivity and loyalty
National universe ; base = total PRP 18-54 years ; average 40 FMCG categories ; March 2010
promo purchase &
cheapest shop
Price hunters
No promo purchase, no
cheapest shop
Price unsensitive
60% brand lovers
42% Loyal
shoppers
(70% brand lovers)
21% Good deal shoppers (50%
loyal)
3% Shop hunters (7% loyal
)
10%
Zapping
shoppers
(17% brand lovers)
Preference in terms of types of products
(A-brands, Private labels, White products)
Types of shoppers amongst
brand lovers
Types of shoppers amongst
loyal shoppersNational universe ; base = total PRP 18-54 years ; average 40 FMCG categories ; March 2010
8%
Price hunters (19% loyal)
10%
Price unsensitive
(24% loyal)
A-brands, PRICE sensitivity and loyalty
National universe ; base = total PRP 18-54 years ; average 40 FMCG categories ; March 2010
A-brands, PRICE sensitivity and loyalty
Loyal brand lovers
76% « price sensitive »
Brand lovers
67% « price sensitive »
2. PRODUCT attractivity
19%
32%
41%
25%
25%
23%
56%
43%
36%
without opinion
National universe ; PRP 18-54 years ; May 2009 & March 2010
I’m very attentive to
the composition of products
I buy products without looking at their composition in detail
I am ready to pay more for products recommended for
health
The consumption of products « good for health » is only a sellling argument
I am attracted by “amazing” products
(ingredients, new form of packaging, etc)
I especially pay attention to the practical aspects of the products
3. BRAND promises
29%
31%
33%
37%
33%
33%
27%
27%
38%
36%
40%
36%
without opinion
Durable development is only a fashion phenomenon
I’m ready to pay more for durable
products
I’m ready to pay more for products
from socially responsible …
I’m not sensitive to the manufacturers’ reputation in terms of social responsibility
National universe ; PRP 18-54 years ; May 2009 & March 2010
I prefer to buy A-brands because they
invest in product innovation
I prefer to buy A-brands because they have more
know-how & experience in the manufacture of products
I’m not particularly interested in everything new
I’m equally confident about the private labels’expertise in the manufacture of products
(40% in 2009)
(33% in 2009)
DOWN in 2010
DOWN in 2010
Look
for c
heap
er p
rodu
cts
Look
for p
rodu
cts in
pro
mot
ion
Attrac
ted
by a
n in
-sto
re p
rom
otio
n
Colle
ct co
upon
s
Prom
o sh
oppe
rs
Good
deal
shop
pers
Shop
hunt
ers
Price
hunt
ers
Compo
sitio
n of
pro
ducts
Produ
cts re
com
men
ded
for h
ealth
"Am
azin
g" p
rodu
cts
Attrac
ted
by a
new
varie
ty
Durab
le p
rodu
cts
Know-h
ow A
-bra
nds
Socia
l res
pons
ibilit
y
Inno
vatio
n A-b
rand
s70
80
90
100
110
120
Brands’ strategies overview
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
100
Price sensitivity (general)
A-brands & price sensitivity
Product attractivity
Brand’s promises
Look
for c
heap
er p
rodu
cts
Look
for p
rodu
cts in
pro
mot
ion
Attrac
ted
by a
n in
-sto
re p
rom
otio
n
Colle
ct co
upon
s 70
80
90
100
110
120
SG 1-4 : more inclined to consume !
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
100
Price sensitivity (general)
SG 1-4
SG 5-8
Look
for c
heap
er p
rodu
cts
Look
for p
rodu
cts in
pro
mot
ion
Attrac
ted
by a
n in
-sto
re p
rom
otio
n
Colle
ct co
upon
s
Prom
o sh
oppe
rs
Good
deal
shop
pers
Shop
hunt
ers
Price
hunt
ers
70
80
90
100
110
120
SG 1-4 : more inclined to consume !
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
100
Price sensitivity (general)
A-brands & price sensitivity
SG 1-4
SG 5-8
Look
for c
heap
er p
rodu
cts
Look
for p
rodu
cts in
pro
mot
ion
Attrac
ted
by a
n in
-sto
re p
rom
otio
n
Colle
ct co
upon
s
Prom
o sh
oppe
rs
Good
deal
shop
pers
Shop
hunt
ers
Price
hunt
ers
Compo
sitio
n of
pro
ducts
Produ
cts re
com
men
ded
for h
ealth
"Am
azin
g" p
rodu
cts
Attrac
ted
by a
new
varie
ty 70
80
90
100
110
120
SG 1-4 : more inclined to consume !
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
100
Price sensitivity (general)
A-brands & price sensitivity
Product attractivity
SG 1-4
SG 5-8
Look
for c
heap
er p
rodu
cts
Look
for p
rodu
cts in
pro
mot
ion
Attrac
ted
by a
n in
-sto
re p
rom
otio
n
Colle
ct co
upon
s
Prom
o sh
oppe
rs
Good
deal
shop
pers
Shop
hunt
ers
Price
hunt
ers
Compo
sitio
n of
pro
ducts
Produ
cts re
com
men
ded
for h
ealth
"Am
azin
g" p
rodu
cts
Attrac
ted
by a
new
varie
ty
Durab
le p
rodu
cts
Know-h
ow A
-bra
nds
Socia
l res
pons
ibilit
y
Inno
vatio
n A-b
rand
s70
80
90
100
110
120
SG 1-4 : more inclined to consume !
National universe ; 18-54 years (A-brands = PRP 18-54 years) ; March 2010
100
Price sensitivity (general)
A-brands & price sensitivity
Product attractivity
Brand’s promises
SG 1-4
SG 5-8
Quality is more essential than ever !
7%I pay less attention to quality if it makes a difference in the
wallet
16%I often choose less expensive
things even if their life expectancy is shorter
30%I prefer to buy less than
to loose quality
Current purchases
Equipment
National universe ; 18-54 years ; March 2010
19%
39%
22%
26%
59%
35%
National universe ; PRP 18-54 years ; March 2010
Word of mouth or personal experience ?
I recommend the products that I find
very good & disadvise those…
I don’t bother people with my good or bad experiences of products
I often listen to the advice of my peers for the choice of a
brand
According to my personal experience, I’m used to decide by myself about the brand I’m going to buy
without opinion
Conclusions
Crisis led to a change New standards
Belgian shoppers & A-brands The love story continues… But loyalty is more fragile…
Let us be optimistic ! Gap between intentions & final expenditures Consumers with financial means & convictions
The gap does not have to grow ! Let us talk to the right target … with the right words
Conclusions