December 2022
ertonline.co.uk
1: Affordability In a survey of 2,000 consumers, we asked people what were the key drivers that would persuade them to make a considered purchase? The number one reason, perhaps unsurprisingly, was that it was within their budget. At the recent ERT Turning Point Conference, AMDEA revealed that pressing the ‘eco’ button on a washing machine or dishwasher could help save consumers on average £90 a year. And knowing that affordability is a critical criteria for consumers, brands can smartly promote the long-term savings they can offer, perhaps paying back the cost of the appliance within five years. When you multiply these savings across several appliances in the home, they soon add up. Furthermore, the energy-saving ‘eco’ modes can
provide a win/win of appealing to sustainability- minded consumers, particularly Gen Z, who also want to save money and the planet.
2: Essential trumps desirable For 73 per cent of consumers in our survey, the idea that a product was ‘essential’ was a key reason it was a considered purchase. Therefore, positioning your products ranged as ‘essential’ items in the psyche of your target audience is important as part of the marketing mix. Perhaps the days of assuming there is an implied need for the categories are no longer relevant due to changing consumer lifestyles and habits. Disposable income in all households, even middle earners, is becoming more scarce. They may want a product and they may feel that they need it… but unless it’s absolutely essential and integral to their life, they are not going to buy it. So think about how you can convince them otherwise…
Highlight why your ranges are essential to their needs; how do they add genuine value to their lives? Why is it potentially going to be a product they cannot live without? Tapping into the primal needs of the user in these turbulent times is a way a retailer can craft their story and resonate honestly with their target audience.
3: Durability
As an extension to being essential, people will need to feel that the item they are buying from your store is built to last. So focus on the quality – this should be the starting point for a conversation about how that product will stand the test of time. The hardiness of it, particularly
at the top of the range, is crucial; no one likes being mis-sold an item, but people are far less willing to tolerate buyer’s remorse in a recession. Consumers are also now genuinely asking, ‘why do I have to pay more for quality? Surely, even if I’m buying at entry-level, it should still be a quality product’. The craftsmanship of its build needs to be communicated to the customer clearly and honestly by your staff without bias. Indeed, we are now in a new reality where brands have to accept quality and durability is delivered at a more affordable price point – certainly if they want to maintain market share. Long-term thinking needs to trump short- termism; this changes the way in which you sell to your customers of all demographics.
4: Sustainability
The longer something lasts, of course, the more sustainable it is, and this is a huge driver for younger generations. In our research, sustainability came through as a top driver for 23 per cent across all age groups – and rising significantly to 38 per cent for Gen Z. And new research from SAP reveals that despite the cost of
forms part of the sales process enables these factors to be included in the discussion.
5: Innovation living crisis, over half of
UK consumers aged 18-34 are actively looking to shop more from retailers with strong sustainability credentials this Christmas. They want to understand that a product is not destroying the planet. This is not ‘greenwashing’ but understanding that this generation will do their research about the full life cycle of a product. The good news is the extent to which communication
A prime example right now is air fryers – where innovation and value has been a winning combination. According to research by price comparison website, PriceRunner, demand has soared by 3,000 per cent since 2021! This an opportunity not to be missed this gifting season! Critically, the air fryer answers several current consumer needs. People are eating at home more but also eating healthier, and these kitchen gadgets address these growing trends. But most importantly, the money/energy that can be saved through air frying is probably the biggest selling point. Already on Black Friday it became a sell- out line in numerous bricks-and-mortar stores, and Curry’s stated it sold more than 18,000 during the week of Black Friday! In summary, retailers do need to recognise changed behaviour and a new paradigm on the back of a series of interconnected trends and crises. These centre on changed lifestyles that are more based in the home, a growing movement for sustainability and most crucially the need to save money.
Consumers simply won’t invest in the way they did before, meaning retailers need a laser- like focus on their customers’ new desires. To remain relevant in this tough climate, the narrative from retailers needs to change. For some, it’s still yet to happen, but for others it’s already the new normal.
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