With retailers gearing up for a busy sales period over Christmas and New Year, retailers must highlight why their products are essential to the lives and lifestyles of consumers, rather than just desirable.
It appears that shoppers may only browse for the products they need – rather than those they want, as a recent report by marketing agency, Gekko, revealed the key factors driving considered purchases in the current economic climate.
Number one on the list was if a crucial home appliance or device was broken (76 per cent). Second was if the item was essential to a consumer’s day-to-day life (73 per cent). Interestingly, a promotion only scored third on the list tied with longevity (37 per cent) only half as important. Next was if it was related to a hobby or personal interest (35 per cent).
The same report revealed that nearly half of consumers are prepared to switch brands for non-essential items with the current squeeze on household budgets, versus just 10 per cent who would stick with a preferred brand.
The study – carried out by YouGov of 2,000 consumers – also revealed two thirds of respondents had reduced spending on non-essential items overall.
On the back of the findings, Gekko urged brands, retailers and those on the shop floor selling products to adopt “a truly customer-focused mindset” and understand the changed need state of those struggling in the current cost of living crisis.
Managing Director of Gekko, Daniel Todaro, commented: “Our research paints a fascinating picture of what is driving consumer behaviour in these challenging times. The message has come through loudly that essential trumps desirable in today’s world.
“Also, it is illuminating that the often ‘go-to’ strategy of merely putting something on promotion is not actually cutting as much ice today. Brands should focus first on what the product can deliver in terms of value and how long it will last. Brands that don’t connect with consumers emotionally and ethically risk missing out in this vital pre- and post-Christmas sales period.”
