Commentary
Redefining Value
- by Todd O'Donald , July 29, 2009
According to recent research by IRI, 70% of shoppers note they have fewer savings than they used to, and 71% agree they have less total wealth. The financial and psychological impact of the past nine months has taken its toll on consumers, and they are responding with evolved purchasing behavior.
In turn, consumers are becoming more resourceful and strategic when planning their purchases for meals, wardrobe, home and automobile maintenances and personal care.
According to the IRI survey, 60% of individuals are wearing clothing multiple times to reduce laundry costs. They are not just extending the use of existing items; they are also seeking low-cost substitutes. Nearly 44% of consumers are trading their doctor for information on the Internet. There is a plethora of information available on the Internet, and consumers are relying on it more and more to help inform their product purchases.
This purchasing evolution is not only impacting what they buy but how they buy. Thirty percent are making bulk purchases with others who are not in their households to secure low prices, and 35% of those shoppers intend to continue doing so when the economy recovers. For consumer product companies, the message is clear: consumers expect more value. They are taking more care over their spending decisions, seeking out information online, and taking the advice of family and friends to heart.
Conventional wisdom is that "green" sentiment is a luxury. However, according to the May 7 UBS report on consumer attitudes toward environmental concerns, 36% said they were prepared to pay more for natural/organic cosmetics and 52% said environmental considerations will impact their future auto purchases. Despite the state of the economy, consumers are still willing to pay more for specific eco-friendly claims.
Consumers remain receptive to green products especially when they offer a direct health benefit or a longer-term financial payoff. For other green products, price remains an impediment for growth. According to the UBS survey, 66% of respondents said they had bought more green/fair trade products over the past year; however, 44% said that any increase in such purchases depends on price.
The opportunity for CPG brands is to connect with the evolved definition of American values. With the "American Dream" farther off than ever, consumers find themselves taking stock of their predicament and making changes toward a sustainable future. As a by-product of the financial crisis, dismal economy and the "Obama effect," consumers are taking responsibility for their future and looking for corporations and brands to follow suit. As "green" becomes mainstream, CPG brands must connect with the evolving needs of consumers by providing brand values that resonate beyond instant gratification.
Consumers are taking a fresh look at their purchases and looking for brand relationships that reflect a commitment toward a brighter, more sustainable future. Corporations must discover the synergy between environmental and financial sustainability and CPG brands must connect with the evolved set of consumer values to instill brand loyalty and grow market share.
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"evolved set of consumer values" - descriptive way to put it, Todd.
I have experienced a lot of these evolutions as a consumer myself - and find it very telling that the values-based buying that has been more tied to "women's ways" of buying previously are now.. the rule. The classic female shopper has long looked for a lot more than instant gratification and bad times have now forced everyone to do the same. It is indeed an interesting re-calibration of the marketplace (brands absolutely can't ignore this evolving consumer) and I am really interested in the continued study of how consumers perceive a brand's path to more sustainable practices.
What is exciting is that the smaller, entrepreneurial brands like Terracyle have a huge advantage (and didn't give the women's market a second thought, but serve women...naturally) Thanks for the great piece.
DEAR FRIENDS & PARTNERS,
OK FIRSTLY THANK YOU, BUT OF WHICH GREEN MARKETING GO TO HELP ME.
FOR 3 WEEKS I have put my brain has alternative, the difficulties after 1 years have to support my business has boils arm, I had you that a solution must present itself to me in a manner rather urgency
as you know it and is not itself to inspire pity but my reality and that I live with my assurance benefit about 1.000$ to do a round figures, no other source of income,O
Same jet of the cutting on my own essential needs, but the I do facing an alarming financial position….
As all are well, my business begins collecting the fruit, the success and the popularity begins, my page of website is temporary and begins to done shame threw sensible for some days but false promises here, My blog mull medium with A video of me that presents my objectives and contents, fresh items, being very contains that for a new businesses technologies, this is very primal.
Jet two options the first ones to leave for a certain time to walk it English, to be only in french. More needs of bilingual secretary, 80 % less than work And affiliations with sponsor french, the problem if I am in English the sponsor French does not want and vice poured.
Or sell my domain and my url that is KING, jet recue of the offers. Is to return later.
I am to encourage and you have me to give a second breaths but how to be going to help me and can in a manner rather quick…
If I understand several offers for pub and u Not possibility of contacts, I am born seized to 100%.
For venture finally this is Growthink venture that wants to sell me a bootcam it is funny 10 minutes before the e-mail of green marketing, they send an e-mail to say me dispatches you has to sign 347.00$ promise that green marketing, the jet well seen, not to sign and green my to contact … I AWAIT the news I am all yes, And you thank enormously can imports the post or function I will seize it with pleasure.
RESPECTFULLY
Jean-Francois GUILBERT
Todd, really like how you put some hard numbers behind how the economy and green values are effecting the purchases of consumers. I am curious if anyone has quantified purchase behaviors changes such use of "FreeCycle", thriftstore purchases, increase in maintenance and repairs over purchasing and replacement, etc.
David
PS - really liked the site - ecomii.com never heard of it before but like what I see. Good luck.