2020 Changes in Shopper Behavior & the Implications on CPG Brands
BACKGROUND
Shopping behaviors have undergone enormous disruption in 2020 thanks to the global pandemic. The lockdowns, restrictions, fear and shifting needs have impacted what we shop for and how we shop. We have been monitoring this change for several of our clients. The results of this work is summarized in this white paper.
Our analysis covers findings from Europe, the Middle East and the United States and together with our own research, includes insights from reports released by McKinsey, Nielson, WSJ, WARC, GWI, IGD, Horizon, Metrics that Matter Stiglitz, BCG, Retailer Gazette, The Drum, and IGD.
This is intended to provide business leaders with a perspective as they begin to plan for, and reimagine a ‘new normal’. We recognize that events around the pandemic have evolved very quickly and businesses have had to contend with many pressing issues to react swiftly and protect their employees, customers, supply chains and financial results. Consequently, planning is more dynamic to cement the interim resilience for the business. This document seeks to provide thinking on the stage after by providing some examples from around the world.
There are 3 areas we have explored: Consumer trends, Shopper trends, and Retail trends.
CONSUMER TRENDS
We see 8 major trends that surface the complex and intimately beautiful relationship between the fragility of life and the beauty of life – on a global scale. For details against each of these trends download this white paper (see below).
SHOPPER TRENDS
We see 8 major trends that indicate a reprioritization of values. This is evidenced by rapidly changing purchasing habits that will likely be permanent because life moments and global life events change purchasing habits. Old solutions for new problems will not work. For details against each of these trends download this white paper (see below).
RETAIL TRENDS
We see 8 major trends that underscore that retail is working fast to re-invent itself. If retail was competitive before, going forward only the very best and most responsive to change will survive. For details against each of these trends download this white paper (see below).
IMPLICATIONS FOR CPG COMPANIES
As the retail landscape responds to a changing landscape with dynamism and pace and has increasing market power (for context, the top 10 retail companies market capitalisation currently equals that of CPG companies, up from 62% 10 years ago), CPG brands have to sharpen their approach. Here are 4 ways to do so:
1. Effectiveness in the age of this new world means rethinking on the basics
- Packaging – delivery the new moment of truth
- Product, place (GTM), pricing and promotion
- New media choices and budget organisation to ensure better investments
- New internal organisations and WOW? New technologies for productivity and agility
- Excellence in execution, deep understanding of shopper behaviour and operationalising it
2. Brand remains as important as ever
- In the world of limitless choice and eroding confidence, brand recognition and trust translate into pricing power. This also translates to category leadership
3. Content: Communication & experience excellence in old and new formats
- The importance of mastering digital assets for ecom
- Leveraging the shoppability of social media
- Exploring live streaming but remaining holistic and consistent to brand strategy and all-channels content (omni).
- Excellence in execution, deep understanding of shopper behaviour and operationalising it
4.Brand purpose inextricably linked to profit and to be reflected in all that you do
If you are interested in exploring For details against each of these trends download this white paper (see below).