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Nielsen forecasts consumer spending habits
for 2010
Consumers are going to continue to be frugal in 2010, and grocery
consolidation will likely change the retail landscape, according to a report of
the top five consumer goods spending trends from The Nielsen Co.
The New York-based market research firm reported that food departments
outperformed non-food, health and beauty and general merchandise
departments at U.S. retailers in 2009, evidence of the number of Americans
cooking at home instead of eating out. Supercenters, club and dollar stores
and online retailers reaped the most benefits, as retailers in other segments,
such as home improvement, office supply and pet supply outlets, were hurt
significantly, according to the report.
The U.S. is behind other countries in recovery, especially when it comes to
consumer confidence, so shoppers in the states will continue to use more
coupons, restrain discretionary spending and sniffing out values, report
author Todd Hale, senior vice president of consumer and shopper insights,
wrote.
The top five consumer goods spending trends for 2010 are:
1.Restraint remains the new normal;
2.Value is a top priority;
3.Store brand growth continues;
4.Grocery consolidation intensifies; and
5.Assortment wars escalate.
In the report, Hale suggests that manufacturers and retailers that take an
active role in innovation
and ad spending are likely to be the big winners, because value messaging
must differentiate beyond pricing.
Although the produce department isn’t as store brand-laden as the inside of
the grocery store, private label has been picking up in fresh produce, as well.
The Nielsen report suggests retailer focus on store brands has never been
stronger.
Also within the store, retailers are expected to continue with efforts to simplify
the shopping experience, often by eliminating side displays.
“Retailers may lose sales as they shift away from in-store merchandising that
drove impulse buying and built shopper baskets,” the report states. “Look for
brands caught in the trap of greater store brand focus and assortment
optimization to forge alliances with key retailers, enter of step-up efforts as
store brand suppliers, and/or explore direct-to-consumer sales.”
The bigger picture prediction is that local and regional independent retailers
may find themselves to be acquisition targets for larger chains. Those larger
chains are also expected to shift their focus to their most profitable formats
and banners, and likely cut investments to the less profitable, the report said.
for 2010
Consumers are going to continue to be frugal in 2010, and grocery
consolidation will likely change the retail landscape, according to a report of
the top five consumer goods spending trends from The Nielsen Co.
The New York-based market research firm reported that food departments
outperformed non-food, health and beauty and general merchandise
departments at U.S. retailers in 2009, evidence of the number of Americans
cooking at home instead of eating out. Supercenters, club and dollar stores
and online retailers reaped the most benefits, as retailers in other segments,
such as home improvement, office supply and pet supply outlets, were hurt
significantly, according to the report.
The U.S. is behind other countries in recovery, especially when it comes to
consumer confidence, so shoppers in the states will continue to use more
coupons, restrain discretionary spending and sniffing out values, report
author Todd Hale, senior vice president of consumer and shopper insights,
wrote.
The top five consumer goods spending trends for 2010 are:
1.Restraint remains the new normal;
2.Value is a top priority;
3.Store brand growth continues;
4.Grocery consolidation intensifies; and
5.Assortment wars escalate.
In the report, Hale suggests that manufacturers and retailers that take an
active role in innovation
and ad spending are likely to be the big winners, because value messaging
must differentiate beyond pricing.
Although the produce department isn’t as store brand-laden as the inside of
the grocery store, private label has been picking up in fresh produce, as well.
The Nielsen report suggests retailer focus on store brands has never been
stronger.
Also within the store, retailers are expected to continue with efforts to simplify
the shopping experience, often by eliminating side displays.
“Retailers may lose sales as they shift away from in-store merchandising that
drove impulse buying and built shopper baskets,” the report states. “Look for
brands caught in the trap of greater store brand focus and assortment
optimization to forge alliances with key retailers, enter of step-up efforts as
store brand suppliers, and/or explore direct-to-consumer sales.”
The bigger picture prediction is that local and regional independent retailers
may find themselves to be acquisition targets for larger chains. Those larger
chains are also expected to shift their focus to their most profitable formats
and banners, and likely cut investments to the less profitable, the report said.
Consumer Shopping Site Reports On HDTV
Buying Habits
Retrevo.com, a leading consumer comparison site in the consumer
electronics industry, is out with a study on consumer spending habits just
when consumers are at their most enthusiastic, spending best.
Conclusions From The Report Include:
• It's all about the deals: 51% of buyers don't care if they make the purchase
online or in-store, as long as they get a good deal.
• 45% said they would NOT need to see the TV pre-purchase, so long as it had
good reviews, their friends liked it, and it had good brand recognition.
• HDTV is still new to many people: 48% of respondents buying an HDTV said it
would be their FIRST HDTV
• Small is beautiful: TVs smaller than 37 inches overtook large TVs by a margin
of 170% (see chart in full story)
• LCD TVs dominate: 80% of respondents prefer LCD TVs, 17% want Plasma, and
only 1.5% want rear projection
• Shoppers are getting savvy: Only 25% of buyers didn't care about TV features
like refresh rate and LED back lighting.
In the eyes of Rtetrevo.com, the picture looks very rosy for HDTV this holiday
season and beyond with a large number of savvy consumers looking for, and
finding good deals on TVs. Whether it s watching high definition sports,
escaping into a Blu-ray movie, playing 1080p games or just watching your
favorite TV show it's clear that despite a shaky economy consumers want their
HDTV.
Buying Habits
Retrevo.com, a leading consumer comparison site in the consumer
electronics industry, is out with a study on consumer spending habits just
when consumers are at their most enthusiastic, spending best.
Conclusions From The Report Include:
• It's all about the deals: 51% of buyers don't care if they make the purchase
online or in-store, as long as they get a good deal.
• 45% said they would NOT need to see the TV pre-purchase, so long as it had
good reviews, their friends liked it, and it had good brand recognition.
• HDTV is still new to many people: 48% of respondents buying an HDTV said it
would be their FIRST HDTV
• Small is beautiful: TVs smaller than 37 inches overtook large TVs by a margin
of 170% (see chart in full story)
• LCD TVs dominate: 80% of respondents prefer LCD TVs, 17% want Plasma, and
only 1.5% want rear projection
• Shoppers are getting savvy: Only 25% of buyers didn't care about TV features
like refresh rate and LED back lighting.
In the eyes of Rtetrevo.com, the picture looks very rosy for HDTV this holiday
season and beyond with a large number of savvy consumers looking for, and
finding good deals on TVs. Whether it s watching high definition sports,
escaping into a Blu-ray movie, playing 1080p games or just watching your
favorite TV show it's clear that despite a shaky economy consumers want their
HDTV.
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Home Buying Trends in 2010
Smaller in Size, But Big on Amenities
Current home buyers are searching for new homes built to reflect their own
personal lifestyles, while at the same time, offering a great value and a
thoughtful floor plan. High-performance and quality over quantity take center
stage for today's new home buyer.
What Do Most People Want in a New Home?
Newly built homes for today's consumers reflect open floor plans, with most
offering master bedrooms on the first floor and updated appliances and
granite countertops in kitchens. Whether buyers are interested in downsizing,
moving up or buying a first home, they still want amenities. Consumers in
general want a home that is cozier, more organized and more economical in
terms of operating costs.
Now, That’s Entertainment!
Much like their owners, homes have the ability to attract a crowd or keep
people at a distance. A home's floor plan can either be the life of the party or a
reason to skip dessert. Many people want a home where others will feel
comfortable, whether that's staying for the weekend, enjoying Friday night
poker games or a movie on the big screen.
Homes go beyond formal introductions to reveal conversations on a whole
new level, literally. Basements have become entertainment showplaces,
where custom built-in bars, theater areas, exercise rooms and guest suites
give friends and family an open invitation to stay for a while. Homes have
become a source of entertainment for owners who want to trade in a night on
the town for take-out and a movie on the flat screen.
New Home Buyers are Willing to Pay for Energy-Efficiency
According to industry experts, home buyers are becoming more aware of how
their home functions and are willing to invest more upfront on products to
make their home more energy efficient.
The Builder/American Lives New-Home Shoppers Survey indicates that nearly
half of new-home shoppers will pay at least an extra $5,000 for energy-saving
features, particularly high-performance windows, high efficiency HVAC and
insulation that exceeds code.
According to a Better Homes & Gardens survey, 91% want an energy efficient
HVAC system, and 65% of buyers want a front porch and outdoor features,
even in smaller homes. In addition, access to themed parks, walking paths and
nature trails are attracting home buyers. While many shades of green have
been used for years by designers to reflect a certain mood or atmosphere in
homes, homeowners now turn to green before they even begin picking out
paint colors.
Smaller in Size, But Big on Amenities
Current home buyers are searching for new homes built to reflect their own
personal lifestyles, while at the same time, offering a great value and a
thoughtful floor plan. High-performance and quality over quantity take center
stage for today's new home buyer.
What Do Most People Want in a New Home?
Newly built homes for today's consumers reflect open floor plans, with most
offering master bedrooms on the first floor and updated appliances and
granite countertops in kitchens. Whether buyers are interested in downsizing,
moving up or buying a first home, they still want amenities. Consumers in
general want a home that is cozier, more organized and more economical in
terms of operating costs.
Now, That’s Entertainment!
Much like their owners, homes have the ability to attract a crowd or keep
people at a distance. A home's floor plan can either be the life of the party or a
reason to skip dessert. Many people want a home where others will feel
comfortable, whether that's staying for the weekend, enjoying Friday night
poker games or a movie on the big screen.
Homes go beyond formal introductions to reveal conversations on a whole
new level, literally. Basements have become entertainment showplaces,
where custom built-in bars, theater areas, exercise rooms and guest suites
give friends and family an open invitation to stay for a while. Homes have
become a source of entertainment for owners who want to trade in a night on
the town for take-out and a movie on the flat screen.
New Home Buyers are Willing to Pay for Energy-Efficiency
According to industry experts, home buyers are becoming more aware of how
their home functions and are willing to invest more upfront on products to
make their home more energy efficient.
The Builder/American Lives New-Home Shoppers Survey indicates that nearly
half of new-home shoppers will pay at least an extra $5,000 for energy-saving
features, particularly high-performance windows, high efficiency HVAC and
insulation that exceeds code.
According to a Better Homes & Gardens survey, 91% want an energy efficient
HVAC system, and 65% of buyers want a front porch and outdoor features,
even in smaller homes. In addition, access to themed parks, walking paths and
nature trails are attracting home buyers. While many shades of green have
been used for years by designers to reflect a certain mood or atmosphere in
homes, homeowners now turn to green before they even begin picking out
paint colors.
Predictions 2010: Consumers
It wouldn’t have taken a crystal ball last year to predict that consumer
spending would be under intense pressure in 2009. But as we look to 2010,
there are some conflicting signals about how the coming year will shape up.
1. Consumers will go back into hibernation after the holidays.
Even if sales this holiday season trounce the modest expectations that are out
there—as I expect they will—don’t expect the spending to continue after the
decorations get packed away.
Consumers are looking for deals this holiday season, and retailers are not
disappointing. Shoppers are also smart; they are not going to pass up
opportunities to restock their closets and treat their loved ones to a nice
holiday.
After the new year, many consumers, especially those in middle incomes, will
continue to watch their spending carefully, and focus on continuing to whittle
down their credit card bills, and stash away money, if they can, for a rainy day.
This will continue into 2010 as unemployment remains high.
Consumers have learned they can get by with less, and that’s what they’re
going to do for some time.
A desire to shop smartly has led more consumers online, where it is easier to
research products and compare prices. Recognizing this shift, Wal-Mart is
taking another stab at bulking up its online offerings and attempting to stab at
the heart of Amazon’s business.
Amazon is going to fight hard to defend its territory. It claims it is comfortable
fighting on price, but the company will ultimately recognize that its leadership
on the Web isn’t only about the cost of the items.
Wal-Mart will struggle and the battles will shift from price to state legislatures,
where the retailer will lobby to close loopholes that allows Amazon customers
to get products without paying state sales tax.
In the background, while these two giants battle it out, consumer products
manufacturers will attempt to reclaim some of their own power by finding new
ways to sell their products directly to consumers.
3. Stores devote more attention and support to their private-label brands,
which will continue to gain market share even as the economy comes back.
Stores have realized that private label doesn’t have to always mean low-price
alternative to a national brand. Although bargain-hungry consumers have
been switching to store brands for commodities like sugar to save money,
they also have been increasingly looking to private label offerings for a wide
range of products.
Part of that is that several retailers have revamped their private label brands,
providing them the imagery that is far from generic. With better quality and
packaging, consumers are seeing these brands as a way to save, and will for
awhile.
We'll see how these predictions do. The Consumer Nation blog was launched
in early February 2009, so there's no track r4ecord to speak of.
However, in our first entry, we said we expected to see consumer "living off
their fat", shopping their closet for clothes and postponing purchase for
months to come, and they have.
We also expected to see additional retail bankruptcies, and there were
several notable ones that followed that first post, including Fortunoff, which
filled for chapter 11 bankruptcy protection two days after that entry was
published.
Continued:
It wouldn’t have taken a crystal ball last year to predict that consumer
spending would be under intense pressure in 2009. But as we look to 2010,
there are some conflicting signals about how the coming year will shape up.
1. Consumers will go back into hibernation after the holidays.
Even if sales this holiday season trounce the modest expectations that are out
there—as I expect they will—don’t expect the spending to continue after the
decorations get packed away.
Consumers are looking for deals this holiday season, and retailers are not
disappointing. Shoppers are also smart; they are not going to pass up
opportunities to restock their closets and treat their loved ones to a nice
holiday.
After the new year, many consumers, especially those in middle incomes, will
continue to watch their spending carefully, and focus on continuing to whittle
down their credit card bills, and stash away money, if they can, for a rainy day.
This will continue into 2010 as unemployment remains high.
Consumers have learned they can get by with less, and that’s what they’re
going to do for some time.
A desire to shop smartly has led more consumers online, where it is easier to
research products and compare prices. Recognizing this shift, Wal-Mart is
taking another stab at bulking up its online offerings and attempting to stab at
the heart of Amazon’s business.
Amazon is going to fight hard to defend its territory. It claims it is comfortable
fighting on price, but the company will ultimately recognize that its leadership
on the Web isn’t only about the cost of the items.
Wal-Mart will struggle and the battles will shift from price to state legislatures,
where the retailer will lobby to close loopholes that allows Amazon customers
to get products without paying state sales tax.
In the background, while these two giants battle it out, consumer products
manufacturers will attempt to reclaim some of their own power by finding new
ways to sell their products directly to consumers.
3. Stores devote more attention and support to their private-label brands,
which will continue to gain market share even as the economy comes back.
Stores have realized that private label doesn’t have to always mean low-price
alternative to a national brand. Although bargain-hungry consumers have
been switching to store brands for commodities like sugar to save money,
they also have been increasingly looking to private label offerings for a wide
range of products.
Part of that is that several retailers have revamped their private label brands,
providing them the imagery that is far from generic. With better quality and
packaging, consumers are seeing these brands as a way to save, and will for
awhile.
We'll see how these predictions do. The Consumer Nation blog was launched
in early February 2009, so there's no track r4ecord to speak of.
However, in our first entry, we said we expected to see consumer "living off
their fat", shopping their closet for clothes and postponing purchase for
months to come, and they have.
We also expected to see additional retail bankruptcies, and there were
several notable ones that followed that first post, including Fortunoff, which
filled for chapter 11 bankruptcy protection two days after that entry was
published.
Continued: