A new report from Advantage Sales details the shopper attitudes and behaviors transforming the retail and consumer goods industry.
Key takeaways in “2019 Industry Overview: Looking Ahead to 2020,” published by the Analytics, Insights & Intelligence (Ai2) team, include:
- The U.S. is in its longest period without a recession and consumer spending remains steady.
- Consumer confidence is improving most among younger segments and those with household incomes of less than $50,000, but uncertainty remains about policy changes, debt bubbles and other factors that could contribute to a recession.
- Established brands are feeling competitive pressure from private brands and emerging companies. While 25 of the largest food and beverage companies drove 3% of total category growth, the smallest 20,000 companies drove nearly half (49%).
- Shoppers’ demands for convenience and speed are being met via the omnichannel. Three out of four Americans buy both online and offline. Store-based retailers must succeed both in-store and online, leveraging stores as assets for online fulfillment and pickup.
- Most consumers fall into one of two groups: value-driven (41%) or purpose-driven (40%). How retailers and manufacturers meet these consumers’ needs will determine how successful they are at attracting shoppers and building loyalty.
- A top consumer priority for selecting products is health and wellness, which for some includes ethical and environmental considerations, such as sustainability.
“While many factors are influencing the seismic shift in the retail and consumer goods industry, brands and retailers who follow the shopper will succeed,” said Kimberly Senter, executive vice president, Ai2. “Why? Today’s shoppers have the power to buy the products they want, when they want, at a price they’re willing to pay — and receive those products in a way that works best for their lifestyles.”