Driven by economic uncertainty and rising costs of living, UK shoppers have evolved into bargain hunters with a keen eye for savings at the supermarket.
According to new research by Datamonitor, 69% of UK consumers consider it important to find bargains when grocery shopping – well above the global average of 58%. To highlight the various strategies that shoppers employ to save money on groceries, Datamonitor has created an infographic which offers a snapshot of some of its research findings.
Brands need to do more to grab the attention of the UK’s bargain hunters:
As the drive to economise becomes a major part of the UK grocery scene, Datamonitor found British shoppers are placing considerably more trust in private labels. With half of UK shoppers actively buying more private labels to save money, lower-priced store brands are clearly growing their share of basket among value conscious consumers. However, marketers need to explore other ways to appeal to consumers’ sense of value besides simply dropping prices.
Personal care products for example deliver superior value by offering multi-functional benefits that not only save money, but also time and storage space. Food and drinks manufacturers are also leveraging this by offering customization or emphasizing versatility to serve multiple needs at once.
Katrina Diamonon, senior analyst at Datamonitor, notes that “value-for-money” positioning must be implemented carefully so as not to infer a sense of compromise.
“Particularly in the premium market, value-focused brands need to balance the emotional desire to treat oneself with the rational appeal of saving money,” she said.
“Positioning products as ‘affordable luxuries’ or ‘earned indulgences’ are effective and credible ways to convey superior value-for-money.”