TrendSights Analysis: Informed Shopping - Meeting the needs of informed and critical consumers
Consumers are becoming increasingly discerning in their shopping habits. This takes place across three broad dimensions: premiumization, price saving and ethical shopping. This is facilitated by improved technology and online platforms. The availability of information through novel technologies has raised consumer awareness around the social impacts of shopping decisions. In a circular process, consumer awareness drives the creation of new platforms and increasingly granular sources of information. Consumers now have instant access to comparisons of price, product quality, and brand ethics.
Consumers have various reasons for being more informed whether it is saving money or environmental and health concerns. Informed shopping offers all consumers a more effective way to make shopping decisions.
While informed shopping applies to almost all categories of consumers, it applies most clearly to parents, who are the most motivated to make both child-safe and ethical decisions; and younger consumers, who are most comfortable with the technology to obtain information.
Informed Shopping is driven by following aspects -
Societal: Rising awareness of pressing environmental and ethical issues pushes consumers to be conscientious shoppers. Consumers are opting to vote with their wallets by being informed and purchasing products aligned with their beliefs.
Health: Health concerns prompt consumers to be better educated about product formulation. This includes a heightened awareness of ingredients as well as sugar and calorie content
Economic: Stagnating incomes and economic uncertainty means consumers have a higher propensity to save. Consumers are compensating by seeking better deals and better value through online comparison platforms.
Brands should seek to emphasize environmentally friendly, safe, and efficient products. Where this is not possible brands should seek to cultivate strong social and ethical values both online and offline - as the amount of information becomes overwhelming consumers will rely on brand values to guide their decisions. Providing ingredient sources, brand history, and being transparent about product formulation all help convince consumers of positive brand values
The report TrendSights Analysis: Informed Shopping examines the ways that information and informed shopping influences shopping habits and product choice. It look at what informed shopping means as a consumer trend, why it is important, who the relevant consumers are, how FMCG brands can best capitalize on the trend, and the future outlook of the trend.
Companies mentioned in this report: Kashi, Seeds of Change, Gippsland Dairy, You've Dalandan it Again, Temple Turmeric, Ice Break, Garnier, Eucerin, Bulldog Skincare, Glenfiddich, 123 Tequila, The Respect Co., Aekyung Trio, Farmers Market.
Information coming from online reviews, social media, and other online sources combined with the accessibility of information on mobile devices is reshaping consumer shopping habits.
79% of consumers check prices online before making a purchase.
56% of consumers use price comparison websites to compare different prices at supermarkets.
55% of consumers are more likely to trust blogger/user reviews over brand claims.
45% of consumers are willing to boycott a brand whose values do not reflect their own.
Reasons to buy
Understand which audiences are most affected by the Informed Shopping trend.
Compare the presence of this trend in each industry across the FMCG space, and learn what the key opportunities are.
See the steps that major brands are taking to meet the needs of informed shoppers.