Uncertainty has forced consumers to have to change their spending habits in several ways:

• Refocusing on home occasions – consumers have spent less time out of home so inevitably spending on these occasions has gone down, whereas others have gone up.
• Holding off on high-end luxury purchases but splashing out more on everyday luxuries.
• Deal seeking – We have all become increasingly promotion conscious, with products being sold at discounts climbing.
• Trading down – Consumers are switching to cheaper brands or own labels to save pennies.

• Shifting channels – With less footfall in store, there has been as seismic shift into online food & drink grocer sales as well as brands shifting into Direct to Consumer operation.

Social distancing rules have increased consumption of online media and significantly accelerated e-commerce, particularly in markets that already had a head start. For many discretionary categories, e-commerce has become the channel of choice as stores have closed. Amazon, eBay and direct-to-consumer (DTC) e-commerce stores are likely to build momentum in fresh food and packaged goods.

Consumer goods brands have long understood the need to adapt to digital shopping behaviours however, in line with current times, there is a sense of urgency. To keep up, brands must now act at pace, make brave decisions fast in order to review their commercial strategy and take multiple steps to sustain demand.

1. Grab online shelf attention through partners and search strategy.

Brand owners must understand and invest in the ‘zero moment of truth’ – that decision-making moment when the consumer researches a product prior to purchase. Win the category search and your product is automatically top of mind and top of the consumer’s browsing list, giving your brand a better chance of ending up in that digital basket. Online there is infinite shelf space. In physical retail, you win with scale with share of shelf (typically correlating to brand share) and incremental display equals incremental share, but online the same rules do not apply, so brands need new tactics to win.

2. Go beyond the old challenges of e-commerce growth

Long-standing barriers to online growth, such as minimum spends and unexpected product substitution downgrades, have been less of an issue during lockdown. A whole new demographic has embraced online – an older, less affluent, more rural audience which provides a brand reach opportunity. But what can you do? You need to understand this audience, their drivers, barriers and frustrations, in order to maximise the opportunity they offer.

3. Get Consumer-Ready

· Mental availability and distinctiveness – ensure your product has a USP to makes it onto either the digital or physical shopping list.

· Physical availability – Explore new partnerships with new distribution outlets

· Creativity – truly connect with your audience in creative new ways and extend this into product innovation.

· Promotion – adjust your offers and pricing model to sustain growth targets. We as shoppers often search for price and promotions, and this is also true online as well as offline. Thrifty shopping skills will be used even more.

At KICR we specialise in fast-paced change, accelerating the innovation process. We can help your business rapidly adapt to change, delivering bolder more incremental growth faster. Budgets are cut and consumer spending is tight so, if you need support sustaining demand and grabbing consumer attention on shelf, get in touch with a member of our team today!

At KICR we specialise in fast-paced change, accelerating the innovation process. We can help your business rapidly adapt to change, delivering bolder more incremental growth faster. Budgets are cut and consumer spending is tight so, if you need support sustaining demand and grabbing consumer attention on shelf, get in touch with a member of our team today!