Retailers need to continue to adapt to the growing demand for personalisation and convenience, and take into account the growing differences in shopper behavior among different generational groups. That’s according to our partners Bridgethorne and 1HQ, who also emphasise the continued importance of demonstrating ethical and sustainable practice.
Mark Artus, CEO of brand design agency 1HQ, gives his top five insights for the coming 12 months:
- Family nutrition will take on a whole new meaning with the blurring of lines between the scientific and emotional benefits. This will create new products and categories that don’t exist today.
– more gut bacteria more mass-market appeal
– vegetarian mainstream as producers find tasty alternatives
– non-alcoholic will also become mainstream with better alternatives
– this will also extend to pets and what they are eating (family nutrition means just that, the whole family)
– skinny will become the enemy
- DTC (direct-to-consumer) will transform the retail landscape and allow brands to create ‘real brand experiences’ in the spaces left vacant.
- Consumers and shoppers will continue to demand ‘just in time’ deliveries allowing more time for better and more fulfilling experiences.
- Brands with ‘real purpose’ and sustainable credentials will also take center stage and will drive a higher price.
- Jacks will take a serious bite out of the discount market place as the UK focuses more on ‘home grown’.”
John Nevens, co-founder of retail consultancy Bridgethorne:
“The differences in shopping behaviour between the different demographic groups – for example, Millennials, Generation X and the retired – will become even more apparent and both brands and retailers will need to adapt their strategies to target each group individually.
“In the retail space, there will be steady but continued growth in online grocery with a consequent increase in home delivery versus in-store visit. There is also likely to be a number of new entrants coming into the home delivery part of the market.
“There will be continued demand for craft and provenance-based products. This will tap into growing demand for sustainability and ethical practice, which will become as important at the lower end of ranges as it is among premium products. Shoppers will not necessarily see there having to be a trade-off between affordable and sustainable shopping.”