Retailers and suppliers will need to adapt to consumers’ new shopping behaviour to succeed in the current marketplace and during any recovery, according to a study.
The report by PricewaterhouseCoopers and Retail Forward, called ‘The New Consumer Behaviour Paradigm: Permanent or Fleeting?’, says shoppers will be “more deliberate and purposeful” in their spending, as “conspicuous consumption will give way to more conscious or practical consumerism”.
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It adds that “deal-seeking” will be replaced by more purchase selectivity and the use of shopping techniques and tools discovered during the recession. Additionally, the affluent segment of Generation X and the young Generation Y will lead spending in the recovery.
“The recession has tempered the rampant and excessive consumption, giving way to more mindful choices as shoppers increasingly seek out online and mobile coupons, comparison shopping sites, and loyalty and rewards programmes,” the report noted.
It added that retailers need to make promotion and savings-related information more easily accessible across all shopper touch points. Additionally, the explosion of online resources and new mobile phone shopping apps has made it easier than ever for consumers to find a specific item. This makes it “imperative” for retailers and manufacturers to “optimise” their search engine and paid search vehicle activities, the researchers said.
In assessing the new shopping environment, the report emphasises that although shoppers will retain some of their recession-induced behaviours, the post-recession shopper will be characterised as “purposeful, rather than panicked”.
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By GlobalData“Today’s consumer will practice a more reasoned and rational trading down with deal-seeking behaviours like coupons and comparison shopping remaining post-recession”, the report noted.
Private-label brands, the report said, will remain “a significant factor” due to their “increasingly higher quality and low cost” since retailers don’t have to advertise or promote them to the same degree as national brands.
“Although we’re starting to see signs of shoppers getting tired of trading down, they remain cognizant of today’s economic realities and need to balance that with personal desires to reward themselves. Retailers and suppliers can take advantage of this “frugal fatigue” and offer affordable do-it-yourself alternatives to pricier products,” the report said.
