Shopper Digest: Leverage on the Pester Power?

With the rising inflationary pressure, the consumer sentiment index (CSI) remains below the optimistic threshold (87.1 as of Q1 2024, source MIER). With the worsening exchange rate coupled with the increased cost of production, many manufacturers have no choice but to consider price hikes. The multiple economic setbacks have resulted in reduced purchasing power, causing shoppers to be more cautious about where they spend their money. As such, it is crucial to identify and target shopper groups (or influencers) that can give us an edge in this predicament.

THE GROWTH OF FAMILIES WITH YOUNG CHILDREN (NESTING FAMILIES)

Selective categories within the impulse sector have experienced strong growth from nesting families, contributing to double-digit growth in value year-on-year, even by maintaining the shopper base (penetration%). As a result, they are one of the key contributing groups to the growth of the impulse sector, which was able to maintain its sector value growth at 3%.

NESTING FAMILIES BUYING MORE DESPITE NEEDING TO PAY AT A HIGH PRICE POINT

The impulse sector as a whole has seen an increase in prices, requiring shoppers to pay more than they did last year. Many shoppers have chosen to buy less in volume, causing an overall decline in volume per buyer of -4%. However, nesting families have still managed to maintain their overall household volume purchased, indicating the relevance of these categories to their households. This has caused them to spend more on the impulse sector, while the rest of the market either maintained or declined.

Identifying categories that appeal to certain target audiences is very important. It helps businesses to better capitalise on opportunities, from (1) planning and strategising to (2) execution and implementation. 

Despite inflationary woes, categories that appeal more to younger audiences could benefit by being ever-present physically and mentally for them. By empowering them to have a say in what they want to buy and consume, young ones can influence the final purchase made by the decision-maker.

Placing products at the appropriate eye level for their height or having campaigns and activities that generally appeal to these age groups can help ensure the brand consistently engages both parents and younger audiences, striving to become the brand of choice for the category.

In the Worldpanel division, we consistently track shopper metrics (penetration, shopping frequency, basket sizes, volume & value sales, etc.) on a 4-weekly basis. This allows you to see trended performance at both category and brand levels.