Rising costs of living have turned the majority of Australian grocery shoppers into bargain hunters, according to market research organisation Datamonitor.
According to new research by Datamonitor, 62 per cent of Australian consumers considered it important to find bargains when grocery shopping.
Brands need to do more to grab the attention of bargain hunters
As the drive to economize becomes a major part of the Australian grocery scene, Datamonitor found that Australians are placing considerably more trust in private labels. With 47 per cent of Australian shoppers actively buying more private labels to save money, lower-priced store brands were clearly growing their share of basket among value-conscious consumers.
However, Datamonitor said marketers needed to explore other ways to appeal to consumers’ sense of value besides simply dropping prices.
Personal care products, for example, could deliver superior value by offering multi-functional benefits that not only save money, but also time and storage space. Food or drinks manufacturers were also leveraging this by offering customisation or emphasising versatility to serve multiple needs at once.
‘Value-for-money’ positioning should be carefully implemented
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,” Ms Diamonon said. “Positioning products as “affordable luxuries” or “earned indulgences” are effective and credible ways to convey superior value-for-money,” she said.
To highlight the various strategies that shoppers employ to save money on groceries, Datamonitor created an infographic which offers a snapshot of some of its research findings and reveals 20 ways that shoppers save money.
