And what are they craving?
Decision making is largely constructed of two main components, logic and emotion. Impulse buying has traditionally capitalized on the latter of the two, tapping into the consumers’ emotional desires and moods to make purchases that don’t involve much thought.In this model logic follows emotion as consumers rationalize or justify their reason for making the purchase, whether it be big or small. As brands continually deepen their understanding of the consumer experience they will not only increase their revenue through impulse purchases, but open new In 2011, US$7.5 billion of US consumers’ money went towards individual impulse sized chocolate confectionary.opportunities to strengthen their brand with the consumers – creating long-term, profitable relationships.The Core ‘Impulse’ CategoriesWithin the food and beverage industry, the most common impulse purchase is confectionary; an affordable indulgence that brightens the day. In 2011, US$7.5 billion of US consumers’ money went towards individual impulse sized chocolate confectionary. Manufacturers like Mars, Kraft and Ferrero all plan marketing and distribution strategies around impulse purchasing. But with changes in disposable income has led to changes in impulse purchasing patterns. The question is what long lasting impact will this have.Shrinking Size and Lower Unit PricesChocolate and sugar confectionary along with chewing gum retail sales were up 3.4% in 2011. Brands like Kraft and Wrigley are hoping to make their impulse appeal even stronger with consumers by releasing gum packs with fewer sticks at a much lower cost. Trident and Stride currently offer 5-stick packs for 50 cents and Wrigley plans to launch a similar pack format this year. The goal is to land more pocket-change purchases, mainly from Gen Y and Gen Z targets.While these are small, inexpensive items they are enough to help consumers relieve stress and anger. With the added frugal mindset brought on by the economic downturn, these examples do not cost enough to give the consumer spending guilt. There is a sweet spot between spending guilt and buying something that gives the consumer a short but sweet delight. Brands need to understand where that opportunity lies, and importantly, which can be specific to their category.New Media Outlets for Impulse PurchasingImpulse buying could see a substantial increase as Smart TVs become more mainstream in the marketplace – and they are well on their way. In 2011, 17% of all TVs shipped in the US had Internet connection capabilities. The market is expected to continue to expand and reach approximately 123 A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumersmillion shipments by 2014. As these devices become more common and advertising media becomes more sophisticated it could open a new channel for brands to capitalize on a consumer’s emotional state influenced by a show to prompt them into an impulse purchase directly from their TV.A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumers based on emotional, impulse purchases that bring revenue in for the brand and delight to the consumer.
Prestige beauty needs a new approach
Despite the ongoing economic difficulties faced by many consumers in developed economies, the global prestige beauty market is expected to grow by 6% in 2011 (Reuters).
The need to be transparent in today’s sustainable market
Words such as organic, biodegradable, sustainable sourcing and Fairtrade undoubtedly resonate with the consumer. Moreover, sustainability is becoming a prerequisite business practice in today's market.
Building closer connections between consumers and brands
Technology is giving consumers unprecedented access to brands, connecting them in ways never possible before. This is particularly prevalent in the beauty market, where brands not only sell a product, but also expertise and even lifestyle.
Over the past five years the male grooming sector has expanded significantly in terms of acceptance and range.
The beauty market seems immune from the recession
Even when they are strapped for cash, women consider the basics of make-up as essential purchases.
Consumers care about the science
Since ancient times, cosmetics have been used to embellish and enhance human appearance.
The Scent of Departure is a new fragrance collection that captures the essence of a city in a bottle. Each perfume explores a city, giving a scented memento that evokes memories of trips to that location. As sense of smell is such a strong device for recollection, this is something that could help travellers remember their trips as much as photographs.
Inspiring runners to train harder, run further, and race faster
Previously we have written about the plethora of devices that are giving consumers a greater understanding of their bodies. Last year we saw the Withings e-scale that shares your weight, body-mass index and body fat each time you step on; Fitbit that tracks your daily activity level; and Zeo that enlightened users of their sleep patterns. All these devices offer a way for consumers to understand their bodies better and resolve to make changes to improve their health.
From March Walmart will be retailing GeoGIRL, a beauty line targeting tweens (ages 8-12). They believe that this market is highly profitable, with an estimated $2 billion buying power.
The male grooming market continues to grow apace
Long gone are the days when lipstick and eyeliner were reserved for women, as men increasingly take more care of their appearance. The men’s grooming market is a key area of growth for the cosmetics industry.
Mesoestetic has developed an advanced cosmeceuticals range for men. Each product has been especially formulated to cover the needs of men’s skins.
Innovating in emerging economies
The common perception is that consumers from emerging economies are looking for the most practical, cheapest solution. This is fast being challenged by a number of the world’s largest CPG companies looking to enter new and emerging markets in Asia and South America.
A new luxury spa care line has been created to enhance the wellness of your skin, body and mind.
NuFace - www.mynuface.com
This year we have seen a revolution in the beauty category, with a number of new brands coming to market with devices that are touted to offer better results than what can be achieved via the use of traditional chemicals alone.
Soso salt - www.dfraile.com
This year we have seen even more emphasis put on package design, as more and more products compete for our attention and as each brand has become more sophisticated in its use of design.
Our morning routines are moving more into the bedroom
No matter how rushed a person’s work schedule may be, they still find time for relaxing. On an average day, 96% of Americans spend time doing leisure activities. Some of these leisure activities include watching television or surfing the internet — activities that are increasingly done in the bedroom.
Many women’s hair doesn’t match ‘down there’, and while many women spend a lot of money getting their hair color just right, there was previously no solution (other than using the same product) for all body hair.
Fast, easy and convenient retail experiences
Retailers are ushering in a new world of self-service buy-and-pay applications, with consumers increasingly using self-checkout stations at grocery stores, paying for travel through airport check-in kiosks, renting movies from self-service DVD rental kiosks, and motorists are refueling their vehicles at pay-at-pump gas stations. Restaurant diners can even order from touch-screens at fast-food chains and use hand-held, pay-at-table devices at sit-down restaurants.
As the economy recovers pragmatic luxury will be the growing trend
As the economic climate begins to improve we will likely observe growth of luxury, indulgence, and brand names. It is unlikely that luxury will return to the same extent, but it is predicted that we will see smaller, regular indulgences in both mass and premium channels. Luxury is constantly being redefined and is now within reach of a much larger consumer segment.
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A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumers based on emotional, impulse purchases that bring revenue in for the brand and delight to the consumer.
We explore the rapidly changing world of laundry - how it is becoming more effortless and sustainable through innovations in appliances, chemistry, and textiles. In the future will our clothes need to be cleaned at all?
Exploring the changing global beauty industry - one that is experiencing massive growth in the emerging economies
This episode looks at the the changing culture of men, and how today's youth are growing up without any stigmas of beauty products.
Here we explore our increasingly hectic lives and what it means for our lives.
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