The Retailer Summer Edition 2022

THE RE TA I L ER

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WHAT THE EVOLVING CONSUMER MINDSET MEANS FOR RETAILERS AND BRANDS

James Humphrey VP EMEA Salsify

E uropean Buyers Demand Product Data Transparency, Forcing Brands and Retailers to Adopt New Strategies Changing consumer behaviour is creating new challenges for manufac turers and retailers. A large proportion of today's consumers prefer a more sustainable and healthier lifestyle. Shopping habits for consumer goods, be it food or cosmetics, clothing and electronics, are strongly influenced by these expectations: the demand for locally produced goods, nutritionally healthier products (with a 5-Colour Nutrition label/ Nutri-Score of A, B or C) and more environmentally friendly products (instead of disposable items) is increasing. Companies that meet that demand are rewarded. For example, IRi’s market research found an increase in annual sales of around 5% for Nutri-Score A products after the nutrient-labelling system was adopted. Buying with a Conscious The consumer figures of the European Commission published in the Consumer Conditions Survey 2021 substantiate these developments in purchasing behaviour in Europe: • 67 % of European consumers prefer to buy more environmentally friendly products, even if they cost more • 59% of UK consumers pay attention to the environmental impact before purchasing a product. • 81% of European consumers prefer to shop close to home to support local businesses • 59% of over 20,000 Europeans surveyed for EIT Food Trust Report 2021 reach for healthy food and 51% reach for sustainable food when given the choice. Manufacturers and retailers respond To address changing consumer behaviour, retailers and brands have already launched several initiatives, first by presenting and making acces sible a range of accurate and transparent data on a product's materials, origin and ingredients. Electrical appliances provide information about their energy efficiency and follow the better labelling requirements to comply with the " right to repair, " which stipulates that goods must be more durable, long-lasting and repairable.

It’s all about the right product information

Providing customers with the product information they want, clearly and at the point of purchase, is becoming a crucial competitive factor for retailers and brands. When consumers choose between two retail ers or two products, they will choose the one that offers the most comprehensive information. According to Salsify’s Consumer Research 2022, 41% of shoppers in the UK rank the quality of product details as a top-3 reason when choosing where to shop, and 46% of the surveyed British consumers abandon their online cart if they don’t find the product information they look for.

Consumers trust transparent retailers and brands Today's informed and digitally connected consumers want as much information as possible about the products they buy. Information on the energy content and the nutritional values of fat, saturated fatty acids, carbohydrates, sugar, protein and salt have had to be included on food packaging for a long time - and uniformly throughout the EU. As the Food Standards Agency’s (FSA) ‘Food and You 2’ survey shows, trust in food safety, authenticity, and the food supply chain remained high even during the COVID-19 pandemic. According to research from IRi and Nielsen, sales of A and B rated foods increased while sales of C and D rated products decreased in the past years. Younger consumers are more likely to take the Nutri-Score into account when deciding what to buy.

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