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.Scope
Reasons to buy
- 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.
- 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.
- Executive Summary
- Content to help you learn from the past, understand the present, and see the future
- Addressing the needs of informed shoppers
- Informed Shopping
- Informed Shopping is part of GlobalData's Smart & Connected mega-trend
- Informed Shopping is one of the 63 trends in GlobalData's TrendSights Framework
- Informed shopping sits at an intersection of Smart & Connected and Easy & Affordable
- Responding to the needs of increasingly critical and tech savvy consumers
- Which sectors is this trend most important to?
- Focus on: Food & Non-Alcoholic Drinks
- Focus on: Personal Care
- Focus on: Alcohol
- Focus on: Household Care
- Focus on: Pet Care and Tobacco
- This trend is shaped by a number of drivers and inhibitors
- Information helps consumers make better decisions across several dimensions
- Younger consumers are the most aggressively informed shoppers
- Parents and those in the global south also have a strong impulse to be informed
- Examples we like: Food
- Examples we like: Non-Alcoholic Drinks
- Examples we like: Personal Care
- Examples we like: Alcohol
- Examples we like: Household and Pet Care
- Suggested Innovation Implications
- Growth Prospects for the Informed Shopping Trend
- Future opportunities to align with the Informed Shopping Trend