© IGD 2010 Michael Freedman, Senior Consumer Analyst, 13 May 2010
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© IGD 2010
Michael Freedman, Senior Consumer Analyst, 13 May 2010
© IGD 2010
• Over 700 members from across the international supply chain, including farming
• At the heart of the industry for 100 years• Total supply chain perspective• In-house team of 100
– Over 30 analysts with relevant industry experience
• Well connected– Board and operational level links throughout the chain– Reliable source for government departments and MPC– Strong engagement with leading think tanks
• Funding– 20% Subscriptions , 80% Trading company
Who we are
© IGD 2010
Supporting farmers and small businesses
• IGD is proud to support UK farmers and small food businesses
• We provide a series of free shopper trend reports on key commodities– Lamb– Potatoes– Beef
• We have trained hundreds of farmers on shopper trends and consumer marketing
• Fully funded ‘Centenary Scholarships’ to our postgraduate course for many small food businesses in 2009/10
© IGD 2010
An introduction to Shopper Insight from IGD
• Proprietary research programme to provide a landscape perspective of shopper behaviour
– Plus client-specific, customised projects for a ‘deep dive’
• Primary GB shopper research methodology
– Mixture of both qualitative and quantitative research
– Feedback from 1,000+ GB shoppers, including accompanied shopper trips,
depth interviews, focus groups and national surveys
• All research undertaken by IGD in-house team
– Our consumer analysts also conduct the primary research, to provide the
highest quality insight
© IGD 2010Source: ONS, December 2009 - Shows measure IHYQ
5 consecutive quarters of economic contraction. Recession is severe
- a sudden downturn Deep economic contraction
© IGD 2010
Impact of the recession on shopping behaviour
Changed for good - made changes and will stick with them
Changed for now - expect to go back to normal
Expect to cut back if it gets worse
As normal and don’t expect to change
77% of those who have made changes expect to stick with them
+8%
-5%
Source: IGD Consumer Unit
© IGD 2010
2012 expectations – careful without compromise
Source: IGD Consumer Unit
Price of food
Approach to shopping
Quality of food
© IGD 2010
Shoppers are even more focussed on price
Source: IGD Consumer Unit
Store choice Product choice Improvements
1.Price
2.Layout
3.Accessible
4.Parking
1.Price
2. Ingredients
3.Fat content
4.Brand
1.Price
2.Local foods
3.Promotions
4.Farm shops/mrkts
+11%
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Increased promotional activity
© IGD 2010
Want multi-buys on everything
Want multi-buys only on fresh not on ambient products
Want multi-buys on ambient but not fresh products
Don’t like multi-buys at all
Don't know
Split opinion on fresh food multi-buys
Source: IGD Consumer Unit
Yes 54%
BUY ONE GET ONE FREE
No 40%
© IGD 2010
A focus on reducing food waste
I used to go shopping once a week and buy fruit and
veg on offers and throw half of it away. We now shop more frequently and buy
less on each trip..
I have always been conscious of waste. Multi-buys on fresh produce are not ideal unless you are a
big family.
Sheffield, Post family, C2D
Sheffield, With young children, C2D
Source: IGD Consumer Unit
© IGD 2010
Shoppers are looking for value and values
Value Values
Heritage
Provenance
Pack size
EthicsSustainability
Performance
Promotions
Price
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Waitrose – focus on sustainability
Source: www.waitrose.com
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‘Ethical’ products bought in the last month
Locally produced Fairtrade High animal welfare Organic Environmentally
friendly*
Source: IGD Consumer Unit
2006 2007 2008 2009 2010%
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What are shoppers prepared to pay a bit extra for? 2005 2007 2010
High quality ingredients Free range Locally produced Fairtrade
Source: IGD Consumer Unit
© IGD 2010
Local or regional foods
Foods with high animal welfare claims
Fairtrade foods
Organic foods
These trends are expected to accelerate by 2012
Source: IGD Consumer Unit
© IGD 2010
Shoppers would like more local food
Source: IGD Consumer Unit
No price increases for the food I buy
More locally produced foods available in the supermarket
More special price promotions available in the store
A farmers’ market or farm shop in the area
More discount stores in the area
1
2
3
4
5
Improvements shoppers want to see:
© IGD 2010Source: IGD Consumer Unit
Important to identify local food shoppers
Uncommitted
Non local3%
Choosers
Activists
Don’t know
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Opportunities for local fruit and vegetable growth
Source: IGD Consumer Unit
© IGD 2010
Meeting different shopper needs for more local food
Source: IGD Consumer Unit
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Promote the key benefits of local food
Source: IGD Consumer Unit
2006 2008 2010
Support local producers Support local retailers Keeps jobs inthis area
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Personalising the impact
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Provenance: reinforce local sourcing credentials
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Overlap between working conditions and local sourcing
63% It is more important to use British suppliers
69% It is more important for companies to
provide good pay and conditions to workers in poorer nations
10% 53% 16%
Source: IGD Consumer Unit
© IGD 2010
Local food is about juggling priorities
Price
Animal welfare
Organic
Seasonality
Year round availability
QualityFreshness
Source: IGD Consumer Unit
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A fine balance on whether to buy in season
Source: IGD Consumer Unit
© IGD 2010
A fine balance on whether to buy in season
Source: IGD Consumer Unit
© IGD 2010
What does the future hold?
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Implications
• Appetite for more locally produced food remains strong
• Understand your shoppers
• Reinforce importance of supporting local economy
• Focus on ‘value’ and ‘values’
• Make choices easier
© IGD 2010
Thank you
Michael Freedman
Senior Consumer Analyst, IGD
+44 (0)1923 851 913
www.igd.com
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