Final thoughts
Innovation and appreciation could boost the day after tomorrow
Now more than ever, shoppers navigate through fields of tension. Though not a new challenge, it is amplifying due to budget constraints and ongoing digitization.
On one hand, shoppers desire a wide variety, or at least the perception thereof, craving freedom of choice, maximum flexibility, and a sustainable lifestyle with occasional indulgences. At the same time, they are reluctant to sacrifice comfort, simplicity, or control, and must remain frugal in what they spend. Balancing these opposing forces presents a significant challenge.
A bit of a spoiler to start with: For the first time since the cost-of-living-crisis started, shoppers seem to see a silver lining. Looking at the latest survey and report, we analyzed five aspects to substantiate the initial signs for a tipping point, exploring
1. Shoppers are cautiously optimistic
There is a change in tonality. Shoppers still need to wiggle budgets but are less susceptible to purely rational incentives; as it is not easy to win shoppers back from private labels, brands need to ‘shine’.
2. There is a mindset of “basic comfort”
Shoppers will try to make room for little pleasures (or cheat moments for younger generations), but not at any price, seeking escapism while keeping their basics in check. It is important to understand whether your brand can deliver on this, because the match counts.to what extent this is translating into shifts in grocery shopping strategies,
3. Brands need incremental innovation
It takes a visible effort and value-add to make shoppers switch back. A new flavor alone will not do the job, as we are still not in a try-out phase. With high on-shelf competition, it is about real improvement, also to the category, and being indispensable to need fulfillment.
4. Retailers have to appreciate shoppers’ needs
Put emotion back into the game and put the shopper back into focus; making shoppers stick requires changing the narrative from price to appreciation, to address shoppers’ requirements.
5. Support the constructive transformation of lifestyle
Retailers can be curators of perfect choice, and brands act as supporters of the “day-after-tomorrow”-aspirations and lifestyle positivity: good for me and good for the planet; credibility is everything – function, emotion, responsibility: it needs to match the core of the brand.
NOTE: All YouGov reports referred to herein are available for purchase.
Retailers covered: top 10 retailers per country
The EU-18 report, including country splits, covers the following categories:
- Staple foods, e.g. rice, flour, sugar, pasta
- Bread and bakery products
- Fresh fruit and vegetables
- Drinks, e.g. water, juices, lemonades
- Alcoholic beverages, e.g. wine, beer, spirits
- Confectionery, e.g. chocolate, bars, pastries
- Frozen food incl. pizza & other ready meals
- Ice cream
- Hot drinks, e.g coffee, tea
- Dairy products, e.g. milk, yoghurt
- Cheese
- Meat, sausage, fish
- Butter & Margarine
- Detergents & cleaning agents
- Toiletries
- Cosmetics incl. make-up
- Canned food, e.g. fruit, vegetables, ready meals
- Cooking oils
Single country reports, including additionally Ukraine, Switzerland, and Norway, are available for purchase upon request.