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The evolution of food shopping Conlumino [email protected] | 020 7936 6663 e evolution of food shopping seph Robinson – Conlumino
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The evolution of food [email protected] | 020 7936 6663
The evolution of food shoppingJoseph Robinson – Conlumino
The evolution of food [email protected] | 020 7936 6663
Agenda
The backdrop
Shopping trends
Market dynamics
Implications
Agenda
The evolution of food [email protected] | 020 7936 6663
GDP growth patterns, year-on-year change (%)
The backdrop
Economic growth
2009
-5.0 +1.4
Recession Recovery Normality
2010 2011 2012 2013 2014 2015
+0.8 -0.3 +1.4 +2.1 +2.4
Double dip Recovery
The evolution of food [email protected] | 020 7936 6663
Total retail consumer expenditure growth
The backdrop
Retail growth
1.6%1.1% 0.9%
2.2%
3.1%
2010 2011 2012 2013 2014
3.4%
2015
The evolution of food [email protected] | 020 7936 6663
Forecast sector growth rates for 2012
The backdrop
Sector level growth
Home -0.5%
Food 3.2%
Beauty 3.3%
Electricals -5.1%
Books -2.3%
Fashion 2.9%
DIY -3.7%
Furniture -7.4%
Music & video -6.0%
Eating out 1.9%
Toys -1.3%
Gifts 1.4%
The evolution of food [email protected] | 020 7936 6663
Growth in food:inflation versus volume
Volume growth (%)
Inflation growth (%)
The backdrop
Food: inflation vs. volume
The evolution of food [email protected] | 020 7936 6663
The backdrop
Summary
Still in a period of change
Consumers remain under pressure
Retail still in the mire
Inflation easing in food
The evolution of food [email protected] | 020 7936 6663
Single occupancy households Working from home
1971: 18% 1991: 27%2011: 29%
2011:1.3m home workers
3.7m occasional home workers
Convenient meal solutions‘top-up’ shopping
LocalityOnline convenience
Evolving shopping trends
Lifestyle trends
The evolution of food [email protected] | 020 7936 6663
OnlineEvolving shopping trends
Total online spending
Online spending and growth rates 2010-2020
£bn %
Online retail expenditure (£bn)
Growth rate (%)
23.126.2
29.633.5
37.140.1
42.3
48.1
53
57.9
63.216.1
13.4 13.0 13.2
10.7
8.1
5.5
13.7
10.29.2 9.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
2
4
6
8
10
12
14
16
18
The evolution of food [email protected] | 020 7936 6663
Shopping online
Internet spend, penetration by sector for 2010 vs. 2015
Evolving shopping trends
Online spending by sector
The evolution of food [email protected] | 020 7936 6663
Evolving shopping trends
M-commerce
Reach value Influence value Sales value
£49bn £1.83bn £1.06bn£207bn £39.66bn £14.19bn
The value of mobile to retail
The evolution of food [email protected] | 020 7936 6663
Lifestyle factors influencing behaviour
Rising online penetration
M-commerce is next battleground
Evolving shopping trends
Summary
The evolution of food [email protected] | 020 7936 6663
Evolving market dynamics
Prioritisation
Household expenditure on food
2007Pre-recession
2012After-recession
£5,092 £5,840
44.7% 49.6%
(£11,393) (£11,772)
The evolution of food [email protected] | 020 7936 6663
Evolving market dynamics
Promiscuity
2007Pre-recession
2012After-recession
£2,037 £1,428
£5,092 £5,840
Total spend and average number of stores used for food shopping
The evolution of food [email protected] | 020 7936 6663
one
28.2%
51.2%
two
55.4%
42.8%
three
12.3%
5.8%
four
3.7%
0.2%
five+
0.4%
0.0%
2012
2002
2012
2002
The number of store types used for food shopping
Evolving market dynamics
Piecemeal
The evolution of food [email protected] | 020 7936 6663
Retailers
Piecemeal:Evolving market dynamics
Piecemeal
The evolution of food [email protected] | 020 7936 6663
I am thinking much more aboutthe food I’m buying
Buying more expensive foods to substitute eating out
Switching to retailer own brands to save money
Buying cheaper brands and foodstuffs
Cutting back on the amount of food I buy to save money
69.3%
54.3%
44.9%
31.1%
17.1%
Evolving market dynamics
Polarisation
The evolution of food [email protected] | 020 7936 6663
Retailers
Polarisation: trading upEvolving market dynamics
Polarisation
The evolution of food [email protected] | 020 7936 6663
Retailers
Evolving value expectationsEvolving market dynamics
Polarisation
The evolution of food [email protected] | 020 7936 6663
Retailers
Evolving value expectationsEvolving market dynamics
Flexibility
The evolution of food [email protected] | 020 7936 6663
Food representing higher share of budget
Consumers shopping around more
Value expectations are evolving
More different types of stores being used
Evolving market dynamics
Summary
Transactions becoming more disparate
The evolution of food [email protected] | 020 7936 6663
Convenience is key One size does not fit all
Implications
Implications for packaging
The evolution of food [email protected] | 020 7936 6663
Packaging for an online world Packaging as wider marketing tool
Implications
Implications for packaging
The evolution of food [email protected] | 020 7936 6663
Implications
Implications for packaging
Packaging to communicate brand values
The evolution of food [email protected] | 020 7936 6663
Convenience is key
One size does not fit all
Packaging for an online world
Packaging as wider marking tool
Implications
Summary
Packaging to promote brand values
