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Shopper Behavior Trumps Regionalism, Says Ipsos Survey

October 4, 2010
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A propensity to plan consumer-packaged goods purchases and price-sensitivity define a majority of today’s shoppers, not just in the United States, but internationally, according to a just-released survey by Ipsos Marketing. That bargain hunters, price-driven shoppers, and responsible planners make up fully 56 percent of global shoppers is good news for private label retailers.


 

A propensity to plan consumer-packaged goods purchases and price-sensitivity define a majority of today’s shoppers, not just in the United States, but internationally, according to a just-released survey by Ipsos Marketing. That bargain hunters, price-driven shoppers, and responsible planners make up fully 56 percent of global shoppers is good news for private label retailers.

 
“Private label plays such a pivotal role in today’s markets,” Donna Wydra, SVP-Consumer Goods, Ipsos Marketing, Chicago, tells PL Buyer’s eReport. “With this survey, we were looking to demonstrate that regional approaches to marketing have their limitations. Clearly, though, private label plays a disparate role for each of these categories of shoppers.”
 
The ‘price-driven’ category involves shoppers on fixed budgets who do price comparisons, says Wydra. “In their search for lowest prices they are most open to base-line private label. ‘Bargain hunters’ and ‘responsible planners’ are less price-constrained but may see value in higher-tier private label as well. Some bargain hunters, though, buy in bulk so as to afford favored brands.”
 
Two additional shopper categories, “brand lovers” and “indulgent” – either because of highly favored brands or to save time – are less likely to succumb to private label’s allure.
 
Shopper categories defined by Ipsos and what percent of all shoppers they represent are:
 
  • Price driven (23 percent) – on fixed budgets, these shoppers make a shopping list, compare prices and look for stores that offer same.
  • Responsible planners (17 percent) – on fixed budgets, these shoppers compare prices, are likely to buy online and are motivated by sustainability issues.
  • Bargain hunters (25 percent) – less price constrained and more impulsive, these shoppers buy in bulk and are less interested in shopping online.
  • Brannd lovers (19 percent) – influenced by store staffs and seeking convenience, these shoppers spend money on more expensive brands.
  • Indulgents (16 percent) -- attracted to new products and more likely to choose taste over health, these shoppers take their time and don’t mind paying more for branded products.
“Our findings demonstrate that retail strategies should align with shopping styles. Brand lovers dominate across China, India, Russia and Turkey. Marketers can take advantage of opportunities that this provides as brands become more affordable in those growing economies,” says Wydra. “On the other hand, there is a need to continue to promote and meet the needs of the bargain hunters found in the U.S., Canada, Great Britain and Australia for whom smart shopping has become a way of life.”
 

Private label is becoming more brand like, concludes Wydra. “More and more of our retail clients have brand groups and brand strategies. That’s keeping our brand manufacturing clients up at night. Consumers feel empowered by private label. They get a good product at what seems like a good price. They’re sticking with it.”

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