The recession may have finally ended for the FMCG market, with more shoppers than ever before claiming that they are unaffected.
Shoppercentric, a leading independent shopper research agency, have been monitoring the effect of the financial crisis through a series of reports. Their latest research indicates that shoppers now feel that they can spend freely, and reflect talk of a recovery for the industry.
Back in January, consumer confidence was at an all-time low, with just 8% of shoppers claiming that they were not at all financially impacted by the recession. That figure had risen to 18% in July. The number of people identifying themselves as planners, who don’t need to make changes but do so incase of future issues, decreased from 8% to 6% during the same period.
Parting customers from their cash still requires some savvy selling techniques, however. 28% of UK shoppers admitted to hunting around for bargains, up from 14% in January 2009. Shoppers are still keeping their eyes on prices, with 23% claiming that they record prices and are far more aware than they used to be, and 33% of shoppers admitted to avoiding shops which have a reputation for being expensive or up-market.
The thrifty mind-set is here to stay, too. 28% of shoppers claimed that they actively seek out ways to make products last longer, up 12% from 2009, and 24% of shoppers plan out what they’ll buy before they enter a supermarket, an increase of 10%.
Danielle Pinnington, the Managing Director of Shoppercentric, has claimed that the thrifty habits consumers have learnt during the recession are here to stay. “Even if confidence is starting to grow, the fact is that shoppers continue to show strong feelings towards budgeting and careful spending/consumption…Retailers and brands need to continue to work hard to tune into shopper needs and ensure that promotions reflect this. Retailers need to proactively sell – helping and inspiring shoppers to spend whilst providing good value.”
Do you agree? Are brands and retailers going to have to learn new marketing methods for a thriftier future, or do you think the economy stabilising will promote pre-recession spending levels?
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