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The evolution of food shopping Joseph Robinson – Conlumino

The evolution of food shopping Joseph Robinson – Conlumino. Agenda. Agenda. The backdrop. Shopping trends. Market dynamics. Implications. The backdrop. The backdrop Economic growth. GDP growth patterns, year-on-year change (%). 2009. 2010. 2011. 2012. 2013. 2014. 2015. -5.0.

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The evolution of food shopping Joseph Robinson – Conlumino

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  1. The evolution of food shopping Joseph Robinson – Conlumino

  2. Agenda Agenda The backdrop Shopping trends Market dynamics Implications

  3. The backdrop

  4. The backdrop Economic growth GDP growth patterns, year-on-year change (%) 2009 2010 2011 2012 2013 2014 2015 -5.0 +1.4 +0.8 -0.3 +1.4 +2.1 +2.4 Recession Recovery Double dip Recovery Normality

  5. The backdrop Retail growth Total retail consumer expenditure growth 3.4% 3.1% 2.2% 1.6% 1.1% 0.9% 2010 2011 2012 2013 2014 2015

  6. The backdrop Sector level growth Home -0.5% Forecast sector growth rates for 2012 Gifts -1.3% 1.9% 1.4% 3.2% Food Toys Eating out Beauty 3.3% Electricals -5.1% Books -2.3% Fashion 2.9% DIY -3.7% Furniture -7.4% Music & video -6.0%

  7. The backdrop Food: inflation vs. volume Growth in food: inflation versus volume Volume growth (%) Inflation growth (%)

  8. The backdrop Summary Still in a period of change Consumers remain under pressure Retail still in the mire Inflation easing in food

  9. Evolving shopping trends

  10. Evolving shopping trends Lifestyle trends Single occupancy households Working from home 1971: 18% 1991: 27% 2011: 29% 2011: 1.3m home workers 3.7m occasional home workers Convenient meal solutions ‘top-up’ shopping Locality Online convenience

  11. Evolving shopping trends Total online spending Online Online spending and growth rates 2010-2020 £bn % Online retail expenditure (£bn) Growth rate (%)

  12. Evolving shopping trends Online spending by sector Shopping online Internet spend, penetration by sector for 2010 vs. 2015

  13. Evolving shopping trends M-commerce The value of mobile to retail Reach value Influence value Sales value £49bn £1.83bn £1.06bn £207bn £39.66bn £14.19bn

  14. Evolving shopping trends Summary Lifestyle factors influencing behaviour Rising online penetration M-commerce is next battleground

  15. Evolving market dynamics

  16. Evolving market dynamics Prioritisation Household expenditure on food 2007 Pre-recession 2012 After-recession £5,092 £5,840 44.7% 49.6% (£11,393) (£11,772)

  17. Evolving market dynamics Promiscuity Total spend and average number of stores used for food shopping 2007 Pre-recession 2012 After-recession £5,092 £5,840 £2,037 £1,428

  18. Evolving market dynamics Promiscuity

  19. Evolving market dynamics Piecemeal The number of store types used for food shopping one 28.2% 51.2% two 55.4% 42.8% three 12.3% 5.8% four 3.7% 0.2% five+ 0.4% 0.0% 2012 2012 2002 2002

  20. Retailers Piecemeal: Evolving market dynamics Piecemeal

  21. Evolving market dynamics Polarisation I am thinking much more about the food I’m buying 69.3% Buying more expensive foods to substitute eating out 54.3% Switching to retailer own brands to save money 44.9% Buying cheaper brands and foodstuffs 31.1% Cutting back on the amount of food I buy to save money 17.1%

  22. Retailers Polarisation: trading up Evolving market dynamics Polarisation

  23. Retailers Evolving value expectations Evolving market dynamics Polarisation

  24. Retailers Evolving value expectations Evolving market dynamics Flexibility

  25. Evolving market dynamics Summary Food representing higher share of budget Consumers shopping around more Value expectations are evolving More different types of stores being used Transactions becoming more disparate

  26. Implications

  27. Implications Implications for packaging One size does not fit all Convenience is key

  28. Implications Implications for packaging Packaging as wider marketing tool Packaging for an online world

  29. Implications Implications for packaging Packaging to communicate brand values

  30. Implications Summary Convenience is key One size does not fit all Packaging for an online world Packaging as wider marking tool Packaging to promote brand values

  31. www.conlumino.com @conlumino.com

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