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PEER-TO-PEER REVIEW SITES HAVE GIVEN CONSUMERS ADDED CONFIDENCE THAT NON-BRANDED ITEMS WILL PERFORM AND ARE A HUGE INFLUENCER OF BUYING BEHAVIOUR FOR THE MILLENNIALS.
65%
Offering different sizes of products to suit different budgets is a business model which FMCG companies originally designed for emerging markets, and later successfully introduced to the US and Spain during the recession. It seems a natural step that these smaller sizes could now be rolled out to the UK: they could play an important part in the battle to retain customers who have a limited amount to spend.
After all, once the fl ight to non-branded value has begun, it is hard to reverse. Consumers have got used to value and so as wage growth gathers momentum, and the pressure on budgets eases, they will still seek out the best product on the store shelves which best suits their purse.
Peer-to-peer review sites have given consumers added confi dence that non-branded items will perform and are a huge infl uencer of buying behaviour for the millennials. This group endorsement via social networking has helped to reduce the snobbery around brands and has encouraged consumers to switch between and try non-branded products.
This new, highly fl exible, attitude to brand could shake the big brands’ dominance for the fi rst time; younger brands like Baylis and Harding are already gaining traction with both retailers and consumers, because they deliver on both price and product.
say product reviews impact purchasing decisions.
28% 32%
say the most infl uential reviews are those made by other health and beauty shoppers.
have
started buying new brands as a result of discovering or learning about them via social media.
Reacting to this shift in consumer demand is crucial. Retailers like Aldi, Lidl, Waitrose and M&S carry a narrow range of branded products and are seeking out manufacturers with the latest “must have” innovative products, which their consumers will love. The big FMCGs need to react to this or they could lose their spot on the shelf to a new market entrant, whose products are simply better geared to what consumers want now.
Liz Claydon, UK Head of Consumer Markets T: +44 20 76943483 E:
liz.claydon@
KPMG.co.uk
Liz is the Sector Head for the Consumer Goods & Retail Sector at KPMG and has particular experience in advising food & drink and FMCG companies including Unilever, Premier Foods, GSK and United Biscuits.
Source: Consumer Insights Panel & IGD Shopper’s Vista
Liz is a transaction services specialist with over 12 years experience. She has advised on some of the largest cross border deals of recent years and leads domestic and multinational transactions in all areas of mergers, acquisitions, demergers, disposals, joint ventures and IPOs.
© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
FLIGHT TO VALUE
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