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People are feeling pressed for time, says dunnhumby’s report. One issue at play is that more women than ever before are in the workplace, juggling family and career obligations, while men are widely yet to pick up their fair share of the responsibilities at home. Complicating matters is that technology, arguably meant to save time, is actually eating into it, as the nine-to-five office day gives way to a 24/7 expectation enabled by messaging and smartphones. But how can independent natural food retailers appeal to convenience when their healthy eating philosophy relies predominantly on home cooking? “Look at convenience from a different angle,” Highley says. “Part of this trend is an interest in easier and quicker scratch cooking, and not necessarily wanting a packed meal.” (Look no further than the popularity of delivery services like Blue Apron for proof of this.) Retailers can help frazzled shoppers out by offering meal plans, shopping lists and nutrition plans to make cooking at home a breeze.
Many shoppers are still feeling the effects of the recession, and even more have experienced an entire attitude shift on spending, the report says. It’s not only socially acceptable to be frugal; it’s celebrated. And frugality easier than ever, as price comparisons are only as far as the nearest smartphone. That said, independent retailers don't need to indulge in a race to the cheapest prices. “People are also making an evaluation on quality and value, so play to that,” Highley advises. “Our research shows that there are highly price-sensitive shoppers who are also very focused on health foods, so it’s not necessarily that they want bargain basement prices on everything. Rather, they’re making selective choices where they’ll save money to afford better quality elsewhere.” Independents can also appeal to value-based shoppers by offering smaller volumes and pack sizes than big box stores, which minimize waste and allow thrifty shoppers to buy only what they need.
Increasingly, says dunnhumby’s report, consumers want products and services that are tailored to them personally, and they also want communications that target them directly. On a large scale, we see this with personalized M&Ms and Coca-Cola bottles; on an individual scale, we see success in places like Etsy, which allow artists to reach a mass audience. “Independent stores have the ultimate in personalization,” says Highley. “You’re able to almost forget technology and go back to the original personalization, which is that you know your customer by name, say hello, and smile, and that is what technology is trying to get back--a degree of human interaction. In some ways, stores have an edge in that they can do it for real.”
It seems odd to think of a time when people dedicated energy to surfing the internet. Today, instead, we are online all the time, in the here and now, thanks to smartphones. And within that broader online community, there are a multitude of networks and apps through which consumers connect and interact at all hours of the day. dunnhumby predicts that the physical and virtual worlds will become increasingly intertwined going forward, both as a commercial channel and communication medium. In practice, Highley says, this is good news for independent stores, since “as with all things, what was once the reserve of only major corporations becomes increasingly accessible.” This means that stores can easily jump in on virtual conversations via social media and other networks; on the business end, “tablet-driven solutions can allow small mom-and-pop stores to manage their inventory and track sales or make credit card payments,” he adds. “The technology is there to have a more immersive experience.”
It’s obvious that social media and the internet are changing the ways in which consumers perceive and interact with retailers. But it’s also changing how businesses think about their customers, dunnhumby says in its report. That’s because businesses can now easily engage with their shoppers online, either by gathering feedback or, more importantly, creating and nurturing community. The good news for natural food retailers is that community building is often the backbone of their business and healthy living is “something you can get people to rally around, for sure,” says Highley. “This is cause-driven marketing--it’s about a retailer caring for you and enabling you to care for yourself and your family.”
As more and more people move around the globe, cultures and traditions move with them, says dunnhumby’s report. This means that retailers and brands--and the foods they market--are becoming multicultural, and “traditional” options are no longer the default; but it also means that cultural events are becoming globalized as well, Highley says. “It’s not just about products,” he adds. “Retailers can use events like Chinese New Year, for example, to celebrate other cultures and cuisines.”
Independent natural food retailers will be happy to know that dunnhumby recognizes health awareness as a major trend driving consumer behaviors. The report found that more than 70 percent of consumers globally believe they are less healthy than previous generations and are looking to food manufacturers and retailers to support them in leading a healthier lifestyle. With rising rates of obesity, diabetes and more in the news, consumers are more aware of the fact that healthier behaviors can have a major impact on their lifestyle, and they are also more aware of food transparency issues than previous generations. Local and fresh are attributes in high demand.
What does it mean to be “old?” Turns out, the definition is changing, says dunnhumby, as traditional notions of demographics morph to accommodate a growing, active aging population. Additionally, most life events like weddings, childrearing and home buying are happening later in life, and when these milestones are hit, they don’t look like they used to. Many families are single-parent, and “nuclear” families are seeing shared responsibilities between both parents. Retailers would be wise to assess their communities to see what a family looks like, as it will be different in every community. To appeal to aging populations, specifically, independent retailers should consider smaller pack sizes. “As you get into later years, you’re likely to have a smaller household size,” says Highley. “These individuals don’t want the cheapest product; they’re willing to pay an increased price per unit, but they do want a smaller pack size because they're not sure they’ll use all of what they buy.”
Good for the environment is good for business. dunnhumby found that shoppers are inclined to look more favorably on products and companies that demonstrate social responsibility, rewarding them with greater loyalty and increased spending. Equally, consumers will punish brands they perceive to be unethical. So natural food retailers with sustainability at the heart of their missions will continue to resonate well going forward.
Good for the environment is good for business. dunnhumby found that shoppers are inclined to look more favorably on products and companies that demonstrate social responsibility, rewarding them with greater loyalty and increased spending. Equally, consumers will punish brands they perceive to be unethical. So natural food retailers with sustainability at the heart of their missions will continue to resonate well going forward.
As part of its 2020 Consumer Trends Series, market research firm dunnhumby highlighted nine trends shaping the future of retail--with a twist. Instead of spotlighting product trends, this report zeroes in on consumer behaviors: how consumers live and, by extension, how their lifestyles influence the ways they shop and spend. Here’s a peek into shoppers’ lives and some tips from study author and Global Director of Consumer Knowledge Julian Highley on how retailers can translate these behaviors into better business.
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