Shoppers are happy to pay for an easier life, or for a product that is highly relevant to their needs.
This reflects a major difference compared with consumers’ behaviour during COVID. In 2022, the performance of the food sector was basically driven by the normalisation of behaviours, while the performance of the non-food sector was largely driven by increased demand for cosmetics, personal care and household products as the market reopened.
Both food brands and non-food brands are likely to face a tougher market in 2023. There’s a saying: “when the tide is out, we know who is swimming naked”. The top priority should be to remain competitive, whether through pricing, product proposition or product assortment.
Brands must be laser focused and very precise in their activations and investments – based on the two main growth drivers we have identified for 2023: (1) convenience and (2) value perception.
There are two simple reasons why these will be the key factors this year. First, shoppers will be more willing to pay for convenience which helps them to save time or avoid hassle. Second, they will be more willing to choose or pay for a brand if the product gives more value and is more relevant to them, due to the experience it provides or the occasions it serves, for instance.
In the laundry detergent segment, to give an example, we are seeing a shift towards liquid formats alongside a rising trend for capsule detergent which is priced at more of a premium. Shoppers are willing to pay for the convenience and less hassle the product provides, making it easier to store and handle for instance.
In dishwash, too, shoppers prefer value-added ranges such as those that are anti-bac, natural, or gentle on the skin. These cater to shoppers’ needs and address the pain points they face, which makes them appear better value compared to other products.
If brands are able to master the art of understanding shoppers, they will be one step closer to being their first choice.
