If you missed last week’s webinar on lower-income shoppers and spending trends you missed a great discussion on how different categories of lower-income shoppers intersect key CPG growth platforms. The presenters, Sean Seitzinger and Brent Baarda, touched on a variety of topics and shoppers, such as millennials, baby boomers, store brands and healthcare.
The webinar was based on SymphonyIRI’s fourth annual research report, “The Lower-Income Shopper Report: Serving Lower-Income/Multicultural Shopper Micro-Segments.”
Detailed in the graphic below, you can see how both the report and webinar worked to dispose of many conventional views on lower-income shoppers. For example, lower-income shoppers represent a smaller economic opportunity. FALSE! In fact, lower-income household CPG spending growth has outpaced higher-income households since 2007 – and it will generate $115 billion in the next decade!
If you aren’t already following @SymphIRI on Twitter, chances are you missed the live Tweets from the webinar. Here is a recap of the 14 Tweets that we posted over the course of the webinar to give you a high-level overview of what was covered…and what you missed:
1. Understand spending behavior and attitudes of lower-income micro-segments that will drive CPG growth in the next decade.
2. The lower-income report provides overview of government programs for Americans, including Food Stamps and Women, Infants, & Children programs.
3. Walgreens leads the charge in attracting lower-income shoppers in urban stores to help change overall behaviors within these communities.
4. Lower-income grocery budgets are impacted by several primary factors: food inflation, cost of gas, and available cash on hand.
5. Retailers: Make sure the assortment on the shelf reflects the needs of the lower-income consumer!
6. Driving growth in food categories: Older households = yogurt sales growth; Younger and Hispanics households = frozen pizza growth.
7. Younger households and households with kids concentrate spending at one-stop supercenters and Walmart, likely due to time constraints.
8. Grocery Channel is losing relevance with lower-income shoppers and retailers are expected to increase value formats to recover shares.
9. Lower-income shoppers spread spending across channels and toward value channels (i.e. Walmart, supercenters, and dollar stores).
10. Blanket price deflation and strong marketing by major branded manufacturers has slowed private label growth since mid-2009.
11. Lower-income shoppers have been a key contributing factor in maintaining the relative health of the CPG industry.
12. Successfully adapt and localize by targeting shoppers and providing relevant solutions across channels and categories.
13. How is the economy changing lower-income shoppers? Where they shop, what they buy, how they use coupons?
14. Dollar stores have grown 20 percent among the lower income segment!
For more great insights, visit our Webinars archive here: http://www.symphonyiri.com/Insights/ArticleDetails/tabid/146/ItemID/1159/View/Details/Default.aspx