Learnings from the FMI Show 2010
Since Monday, I’ve been at FMI 2010, the Food Marketing Institute Show in Las Vegas. As with every industry, the economy has impacted grocery shopping, but unlike most other retail segments, we can’t stop eating. We’re just spending less.
In seminars, speakers focused on private label, defined value (not just by price) and demonstrated the importance of making an emotional connection with the consumer. Retailers and manufacturers are recognizing the need to deliver information using technology to reach target audiences with information they want, when they want it and in the way the want it. This includes mobile platforms to deliver recipes, online couponing, and presence on Twitter and Facebook.
“Simplicity, nutrition, health and wellnes, safe food, environmentally friendly, family first, time-saving, quality, affordability, and most important, price. These are the things that motivate today’s value driven customer,” said Leslie G. Sarasin, President and CEO of the Food Marketing Insitute. “They’re savvy, time starved, looking for bargains, less impulsive and more than ever, arriving at your store prepared to shop. ”
Some interesting statistics from FMI research:
- 52% of total shoppers are spending less, but they are seeking value in what they buy
- 77% only buy what they need and 45% buy it on sale
- 61% are using coupons from print sources and 32% from the Internet – a changed behavior up 11% since 2009
- 23% are checking Web sites for specials before going to the store
- 54% of shoppers are actively comparing prices at different stores compared to 50% in 2009
- One in five consumers plans to buy more private brand products this year; 26% of all shoppers buy store brands every time they shop
- When buying a product the first time, 75% consider price a deciding factor and 78% are influenced to buy a product the first time by a coupon
- Low prices are the most important feature used by 75% to decide where to shop followed by high quality fresh foods and sales and specials; 77% want locally grown foods for their freshness
- 96% of shoppers are preparing as many or more meals at home in 2010 – only 4% are preparing less
- 85% are making home-cooked meals more than three times a week – up seven points from before the recession
- Gen X and Gen Y consumers are preparing even more meals at home – up 64% - from a year ago
- More than a quarter of all consumers and 30% of younger consumers make their lunch at home and bring it to work
- 62% feel their diet could be healthier
- 45% of shoppers are concerned about nutritional content in food purchased at the supermarket
- More than half of shoppers are trying new recipes and half have tried a new healthy recipe
- Sodium is now their top label concern followed by fat, artificial sweeteners and calories in 2009. Whole grains and fiber have moved up the list for nearly half of all consumers.
