NEWS27 November 2014

Price isn't factor for majority of European grocery shoppers

Europe FMCG News

UK — Despite the popularity of discount grocers such as Lidl and Aldi, shoppers buying FMCG in Europe are largely influenced by factors other than price according to Kantar Media’s TGI Europa study of shoppers in Britain, Germany, France and Spain.

Two shopper behaviour segments are identified in the study as being predominantly driven by price – ‘strategic savers’ and ‘promiscuous purchasers’ – but these account for only about one third of all shoppers.

The study found that shopping motivations in Europe are a complex mix. For example despite being particularly badly affected by the European recession, there is still a significant group of Spanish shoppers who favour premium brands. ‘Quality crusaders’ – they like quality and premium – make up 20% of Spanish shoppers and 23% of British ones, compared with 17% as the average across the four markets.

Spain does have the highest proportion of ‘promiscuous purchasers’ – people who have an extensive brand repertoire to keep costs down.

British shoppers are the least ethical: only 6% are influenced by ethical considerations – ‘ethical empathisers’ – during their purchases, compared with 12% in Germany and 11% in Spain.

Compared with other countries, France has proportionately around twice as many ‘convenience kings’ (driven by anything that makes shopping more convenient e.g. locality, opening hours and parking) as any of the other three countries. This may be a reflection of the prevalence of enormous hypermarkets in France, selling everything under one roof.

Germany accounts for more than half of all ‘conscious connoisseurs’ in real terms. These are people who are passionate about food and absorb information about it at every opportunity, from various sources. However, this is the smallest of the FMCG groups, accounting for 7% of shoppers.

Anne Benoist, director, Kantar Media TGI, said: “The world of FMCG shopping is hugely competitive, causing brands and retailers to embark upon price-based promotions and in some countries create price wars. No-one is immune from commercial difficulties, as some of the most established retailers have been finding in recent years.

“It is therefore more important than ever that brands and retailers understand the different types of shoppers that exist across Europe and tailor their offer to appeal to the very different motivations that drive each group’s shopping behaviour. When sales are under threat cutting prices is seen by many as a quick fix, but the reality is that it will probably only sway a minority of shoppers.”