Thursday May 27, 2010

2010 Means Business As Unusual

The economy has changed the way U.S. consumers will shop for at least the next four to eight years, according to Thom Blischok, president of global innovation and strategy for SymphonyIRI Group.

Blischok told EXPO attendees on Wednesday morning that shopper values have changed, and the way retailers and manufacturers approach consumers with products has to change as well.

Today’s consumers are shopping through a “lens of affordability,” he said, adding: “they are trying to live better lives on much less.”

According to Blischok, the next generation of shoppers will increasingly use mobile devices to find savings, and he predicts smartphones will soon outnumber personal computers in homes. He encourages manufacturers and retails using this medium to "remind and reward" instead of promoting products.

To find savings, shoppers are visiting more stores searching for deals, with the average consumer hitting 2.7 stores per week. While grocery has seen the highest increase in spending, he says no single channel is fully capturing the wallets of consumers.

When buying candy, trust in brands has a strong influence on purchasing decisions, followed by price and a request by a member of the household. Consumers are most often picking up candy to boost their energy, manage stress and snack on-the-go, he said.

More consumers are putting candy on a shopping list to manage spending, and Blischok said 48 percent of shoppers have reduced impulse buying habits. Still, he said 80 percent of consumers finalize their candy buying decision when they enter the aisle.

He said when it comes to candy, 58 percent of the purchasing decisions are made in the home versus 38 percent who decide in the store. And when consumers are deciding what candy to buy, 59 percent base the choice on brand, while 75 percent choose by segment.