Over the past year, significant changes have occurred in purchasing habits, shopping baskets, and shopper profiles, impacting the dynamics of the consumer goods market in Spain. According to an analysis by in-Store Media, the close of 2023 shows a growth of 10.3% in the sector, driven by both price increases and positive demand in volume.
“This scenario has favored the advancement of private label brands, which reached a share of 49% in value and 58% in volume, driven by inflation and high prices,” the company notes. Among the different purchasing channels, large supermarkets stand out, accounting for over half of market sales and experiencing favorable growth of +12.6%. Additionally, regional supermarkets are gaining importance, accumulating 17% of the market share.
These market changes have directly impacted the composition of the shopping basket. Although the number of shopping baskets has remained stable, there has been an 8% increase in the average purchase ticket due to price increases. However, shopping baskets have tended to be smaller, showing an 11% year-on-year decrease. Furthermore, there has been a slight increase in the number of households exploring different chains when making their purchases.
These changes in purchasing habits have also shaped the profile of the current shopper. In search of the best value for money, shoppers have become more rational, homely, sustainable, healthy, and omnishopper-oriented. Thus, the new shopper prioritizes price and shows a preference for promotions.
Additionally, there has been an increase in the purchase of products intended for home consumption, such as dinners, parties, and celebrations, reflecting higher spending on home consumption. Furthermore, sustainability and health have emerged as two relevant factors in purchasing decisions, demonstrating consumers’ growing concern for these issues. Finally, the distinction between physical and digital environments is gradually fading, with 27.2% of shoppers purchasing both in-store and online.
Point-of-sale communication: a key medium to reach the new shopper
Impacting the new shopper at the point of sale becomes relevant to cover these new habits. Communication with the shopper becomes a key piece to adapt to this new reality: 70% of purchase decisions are made in-store, so brands must direct their efforts towards the point of sale to impact the shopper. Additionally, the point of sale is valued as the least intrusive medium, thus contributing to improving the shopper’s shopping experience, highlights in-Store Media.
Product innovation, promotional initiatives, and communication of sustainable and healthy practices become key elements to differentiate and capture the attention of shoppers.
It is in the physical store where brands find the opportunity to give visibility to their products and capture the consumer’s attention: seven out of ten shoppers discover product innovations in-store, promotional activations also have a significant impact, as price is a decisive factor for over 70% of shoppers when making purchasing decisions. Furthermore, for manufacturer brands, increasing communication in-store will be key to prevent private label brands from gaining more market share.
The results reflect that point-of-sale communication plays an essential role in strengthening brand awareness and increasing sales: it increases Top Of Mind by 54%, purchase intention by 44%, and sales by 19%. “In conclusion, the consumer goods market in Spain experienced growth in 2023 driven by changes in purchasing habits and shopper behavior. This dynamic scenario requires agile adaptation by brands to maintain their relevance and competitiveness, recognizing the importance of point-of-sale communication, which gains relevance as a fundamental medium for connecting with the shopper and responding to new trends,” concludes in-Store Media.
Source: Financial Food