06.23.16
The Great Recession ended more than seven years ago, but it had a profound impact on spending habits of US consumers, according to results of a new study by McKinsey & Company. Although fewer American consumers are feeling economic pressure today than at any time since 2008, only 20% of Americans expressed optimism about the country’s economy. That number has shown little improvement since 2011, when 18% of respondents said they were optimistic about the nation’s economic prospects. CPG companies should be concerned tthat slightly more than 30% of Americans said they’re cutting back on spending or delaying purchases.
With that in mind, McKinsey revealed five truths that CPG executives shoukd consider when marketing products to wary shoppers:
• In the search for savings, Millennial moms lead the pack;
• They are brand loyal, but look for ways to spend less on their brands of choice;
• They're now much less likely to "trade down;"
• Some splurge on alcoholic beverages and personal care products;
• They're willing to shop across channels.
To succeed with cautious consumers, McKinsey suggests marketers follow these tips:
• Create strong propositions for both the high end and low end;
• Understand the vareity of needs and behaviors within the most important consumer segments;
• Make assertive moves in high-growth channels;
McKinsey & Company notes, however, that consumer attitudes could change in the months ahead, as uncertainty grips the country during a contentious presidential election.
With that in mind, McKinsey revealed five truths that CPG executives shoukd consider when marketing products to wary shoppers:
• In the search for savings, Millennial moms lead the pack;
• They are brand loyal, but look for ways to spend less on their brands of choice;
• They're now much less likely to "trade down;"
• Some splurge on alcoholic beverages and personal care products;
• They're willing to shop across channels.
To succeed with cautious consumers, McKinsey suggests marketers follow these tips:
• Create strong propositions for both the high end and low end;
• Understand the vareity of needs and behaviors within the most important consumer segments;
• Make assertive moves in high-growth channels;
McKinsey & Company notes, however, that consumer attitudes could change in the months ahead, as uncertainty grips the country during a contentious presidential election.