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TrendSights Analysis: Value

TrendSights Analysis: Value

  • December 2016
  • 40 pages
  • ID: 4755213
  • Format: PDF
  • By GlobalData

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TrendSights Analysis: Value

Summary
Value is an undeniable goal with every purchase, although its importance may vary depending on the shopper and the specific proposal offered by brands and retailers. Consumers tend to develop complex equations where the perceived value of products is a combined result of multiple factors such as price, time scarcity, and convenience.

Consumers, retailers, and brands have been developing their own strategies regarding the importance of price in product choices and preferences, which became particularly vital during the recent financial crisis. While consumers became experts in searching for comparable products at lower prices (digital sources here play an active role), brands and retailers redefined their businesses in order to satisfy cost-saving consumers without compromising the sustainability of their profits. However, consumers’ perceptions of value may be altered by introducing variables that are able to extend those perceptions beyond price, as they are willing to pay more for additional benefits that are not purely restricted to money.

Trend drivers
- Consumers remain insecure concerning their financial status.
- Significant skepticism about the claims of premium products makes retailers rethink their value proposal.
- Online shopping now allows quick price comparisons, highlighting any gaps between retailers.

Consumer targets
- Women exhibit shopping behavior more focused on cost-saving purchases than men.
- The hunt for lower prices is less appealing for senior consumers.
- Higher-income consumers are willing to pay more for benefits beyond the intrinsic value of products (e.g. donations to charity).

The report “TrendSights Analysis: Value” analysis covers what the trend is, why it is important, who is most influenced by it and how brands and manufacturers can capitalize and identifying where the trend is heading next and how long it will last.

Companies mentioned in this report: L’Oréal, Morinaga, Red Island, John McCann, Sagra, Nature’s Own, Sainsbury’s, SunnyD, Sprite, Tesco, Woolite, Purex, Map, Dettol, Balea.

Scope
- Consumers remain insecure concerning their financial status.
- Significant skepticism about the claims of premium products makes retailers rethink their value proposal.
- Online shopping now allows quick price comparisons, highlighting any gaps between retailers.

Reasons to buy
- Gain insight into the different routes through which products can align with the Value trend including examples of best-in-class innovation.
- Compare the presence of this trend in each industry across the FMCG space, and learn what the key opportunities are.
- Identify the innovation implications of the Value trend for your sector.

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