Report summary RESEARCHSTORE

Transcription

1 The Global Economic Crisis: The Impact on Consumer Attitudes and Behaviors in Sweden The Opportunities and Threats Shaping Growth Prospects during the Recession Report summary Detailed analysis documenting Swedish consumers recessionary mindset and how this influences perceptions about current and future prospects Gain a detailed understanding of changing consumer attitudes and behaviors amid the downturn in order to determine appropriate recessionary strategies Insights highlighting how the economic downturn has affected perceived quality of life, emotional wellbeing and financial security in Sweden In-depth analysis of Swedish shoppers changing price sensitivity, value consciousness and attitudes towards private label across four major FMCG sectors Countries and categories covered: Sweden; food and non-alcoholic beverages, alcoholic beverages, personal care and household care

2 About this report Introduction Around 90 per cent of Swedish consumers believe that they are currently living in a recession. This is indicative of an intensifying recessionary mindset influencing consumer behavior. Symptomatic of falling consumer confidence is the fact that more than one-in-three Swedish consumers experienced falling job security and diminishing confidence in the housing market in Datamonitor has been tracking consumer and attitudes behavior across the globe to gauge the extent that recessionary mindsets are actually impacting consumers both attitudinally and behaviorally. This report looks explicitly at the situation in Sweden. It is designed as an initial point of reference for Datamonitor s ongoing (more detailed) research throughout 2009 and 2010, which will be delivered through our new Recession and Recovery service. Key findings and highlights One-third of Swedish consumers feel that their lifestyle has been impacted by the recession. Suddenly, they have been forced to re-evaluate their spending, including where they do their grocery shopping as well as their in-store choices. Nevertheless, they remain comparatively content and confident in their purchasing power. One-third of Swedish shoppers are also frequent buyers of private label products. Many are now likely to consider private label products to be on a par, if not better than market leading brands, although this mentality does differ depending on product category. For three-fifths of Swedish shoppers, lower prices have a high amount of influence over where people do their grocery shopping. Nevertheless, the quality of products sold has more influence over their (changeable) grocery shopping destinations. This is symptomatic of the steadfast focus on quality among Swedish shoppers in most FMCG purchases. Reasons to buy Gain a detailed understanding of changing consumer attitudes and behaviors amid the downturn in order to determine appropriate recessionary strategies Obtain country and sector specific insight about pertinent recessionary themes such as private label and Swedish consumers value consciousness Assist consumer segmentation and targeting efforts by accessing data from two waves of primary research conducted in August 2008 and April 2009 The severity of the current downturn has reminded Swedish consumers just how much financial security influences their wellbeing something many were increasingly taking for granted amid the recent unprecedented growth in global prosperity Daniel Bone, Datamonitor Analyst and Report Co-Author

3 Sample pages The Future Decoded The Future Decoded THE FUTURE DECODED The evidence presented in this report shows that most Swedish consumers, while fully aware of the economic downturn and feeling the impact on their daily lives, are not making wholesale changes to their consumption patterns in the grocery arena. Swedish consumers are particularly confident in their purchasing power compared to their European counterparts and this is reflected by a stronger focus on quality, a commitment to keep buying their favored brands as far as possible and a less intensive focus on value for money than elsewhere (although this is important nonetheless). There remain a effort to save money in light of the downturn. The propensity to save is likely a function of smaller behavioral changes such as cutting back on out-of-home entertainment and opting for cheaper alternatives in product categories that are deemed less important by consumers. Analysis further on in this report will explore this in more detail. Another important note here is that governmental monetary policy is not overly conducive to encouraging savings. The Swedish bank's monetary policy is expected to continue to focus on dampening the effects of the recession, with the historically low benchmark interest rate set to remain at 0.25% for the coming year. number of downturn induced attitudinal and behavioral adjustments that need to be acknowledged and acted upon. This report identifies those changes and considers the implications for consumer packaged goods (CPG) manufacturers and retailers. INTRODUCTION: Understanding how recessionary mindsets influence Swedish consumers attitudes and actual consumption is vital In June 2008, Datamonitor s Consumer Markets research vertical published its Recessionary Consumers & Product Choice report (DMCM4622). The report highlighted that the deepening international economic downturn, driven in large part by the negativity surrounding the US economy, was causing global consumers to adopt a recessionary mindset. The term recessionary mindset referred to the fact that, irrespective of whether different national economies were in a recession or not (that debate for many nations has since passed and is more heavily centered on if/when it will end), consumers had already been affected. Since then Datamonitor has been tracking consumer attitudes and behavior across the globe to gauge the extent that recessionary mindsets are impacting consumers, both attitudinally and behaviorally. It is designed as an initial point of reference for Datamonitor s ongoing (more detailed) research throughout 2009, which will be delivered through the new Recession & Recovery service (see Figure 1 below). Figure 9: Swedes are generally reluctant to sustain a reliance on credit QUESTION: Given the recent economic downturn to what extent do you agree with the following statements? I am going to use credit to maintain my lifestyle I am making an effort to save more money now Strongly disagree Tend to disagree Neither agree nor disagree Tend to agree Strongly agree % of respondents 100% 4% 2% 5% 8% 10% 90% 10% 18% 80% 38% 30% 38% 24% 30% 70% 14% 60% 50% 23% 40% 45% 39% 75% Still 62% looking to 30% 61% save More 20% money 39% credit 13% 10% resistant 12% 5% 8% 0% I'm going to use credit to I'm going to use credit to I'm making an effort to I'm making an effort to maintain my lifestyle maintain my lifestyle save money more now save money more now Figure 1: Datamonitor s Recession and Recovery portal will allow industry players to continually identify emerging opportunities and track what is happening as it develops (August 2008) Source: Datamonitor Consumer Surveys, August 2008 and April 2009 (April 2009) (August 2008) (April 2008) D A T A M O N I T O R Key takeouts and implications: Swedish consumers are losing satisfaction with their financial situation and there is only mild optimism of an improvement coming towards the end of 2009 The current economic downturn is impacting on Swedes personal financial circumstances with consumers being forced to re-evaluate their finances and spending patterns in a more considered manner resulting in a more prudent and controlled form financial management and spending. Symptomatic of falling consumer confidence is the fact that more than three-in-ten Swedish citizens Source: Datamonitor analysis D A T A M O N I T O R have experienced a worsening financial situation, falling job security and falling confidence in the housing market when the downturn was most severe in late 2008 and early But the most significant gloominess surrounds the nation s economy as a whole. Again, this suggests that a recessionary mindset has not yet been fully matched by a major impact on lifestyles. The Global Economic Crisis: The Impact On Consumer Attitudes & Behaviors In Sweden DMCM4688/ Published 08/2009 Datamonitor. This report is a licensed product and is not to be photocopied Page 9 The Global Economic Crisis: The Impact On Consumer Attitudes & Behaviors In Sweden DMCM4688/ Published 08/2009 Datamonitor. This report is a licensed product and is not to be photocopied Page 24 Contact our customer service team for more sample pages... Europe tel: fax: reports@datamonitor.com Americas tel: fax: reports@datamonitor.com Middle East tel: fax: reports@datamonitor.com Asia Pacific tel: fax: reports@datamonitor.com

4 Table of contents OVERVIEW Catalyst Summary THE FUTURE DECODED INTRODUCTION: Understanding how 'recessionary mindsets' influence Swedish consumers' attitudes and actual consumption is vital - The 'recessionary mindset' of Swedish consumers has intensified with the widespread belief that they're living in a recession - The economic downturn has had an impact on the lifestyles of around one-third of Swedish consumers, but a growing number appear to be 'resistant' to the recession - Key takeouts and implications: a 'recessionary mindset' has not yet been fully matched by a recessionary impact on the lifestyles of Swedish consumers TREND: Swedish citizens remain appreciative of their quality of life even if they are conscious of a worsening economic situation - Swedish citizens are somewhat negative about the direction of society, but are more appreciative of their quality of life - Key takeouts and implications: the mood towards the direction of Sweden has further dampened as the economic downturn has deepened, but more than half remain satisfied with their quality of life TREND: Swedish consumers have lost confidence in their financial security and are being more scrupulous in response - Satisfaction with one's financial situation in Sweden has clearly been tempered by the worsening economic situation - In perceptions about the economy, job security, financial status and the housing market in Sweden all worsened, although there is tempered optimism looking ahead to the latter part of Swedish consumers are managing their finances more closely with some even struggling to pay the bills - Swedish consumers are aspiring to be less reliant on credit while maintaining their efforts to save - Key takeouts and implications: Swedish consumers are losing satisfaction with their financial situation and there is only mild optimism of an improvement coming towards the end of 2009 INSIGHT: The global economic crisis has had a negative impact on the emotional wellbeing of Swedish consumers with levels of stress up and personal happiness down - Stress levels have all been negatively impacted during the financial downturn but tension levels are below global counterparts - Work-life balance in Sweden has worsened in combination with the deepening downturn - The happiness levels of Swedish citizens have declined in line with the global economic crisis - Key takeouts and implications: recessionary consumers in Sweden are in greater need of emotional and physical 'pick-meups' INSIGHT: Swedish consumers have become increasingly price and value conscious following the global economic downturn - Swedish consumers are less value conscious than elsewhere but are looking to save money when buying groceries - Price and value consciousness heavily influences where Swedish consumers do their grocery shopping and how they shop but quality is the overriding factor - Key takeouts and implications: value consciousness among Swedish consumers has intensified, albeit less so than elsewhere, and is reflected by how they determine where to shop INSIGHT: Quality conscious Swedish shoppers are trying to remain loyal to brands despite the negative impact of the economic downturn - Swedish consumers are reluctant to give up some favorite brands as they make more 'considered' choices - Private labels are becoming more attractive to Swedish shoppers in the downturn - Key takeouts and implications: private label is beginning to appeal to Swedish shoppers but many remain loyal to their favorite national brands INSIGHT: Swedish consumers are gradually embracing money saving tactics when it comes to food and non-alcoholic beverage purchases and preparation - Swedish consumers are slower than global counterparts in adopting various responses to cut back on food and beverage expenditures - Swedish shoppers are more familiar with private label food products than non-alcoholic beverages and this is somewhat reflected by penetration rates - Key takeouts and implications: a desire to cook more often at home has occurred while private labelers can capitalize on the uncertainties about the perceived superiority of national branded product equivalents INSIGHT: Swedish consumers have not been making significant changes to their personal care regimes or product choices - Around half of Swedish consumers are committed to looking their best in day-to-day life - Personal care/beauty shoppers in Sweden have not made notable changes to their shopping and usage in order to save money - Private label and personal care/beauty products have credibility among Swedish consumers - Key takeouts and implications: Swedish consumers' health and beauty regimes are proving to be largely recession resistant INSIGHT: Alcoholic drinks' consumption patterns and preferences in Sweden have not changed significantly during the downturn

5 Table of contents (continued) - Swedish consumers are careful about how much they spend on alcohol, but do not perceive that they have been making significant cut backs in the amount they consume - Swedish drinkers show little change in their alcoholic drinks consumption either at home or when out in pubs, bars and restaurants - Private label alcohol is not well developed in Sweden with many consumers having little experience or views on such products as viable alternatives to famous brand equivalents - Key takeouts and implications: there has been little to no change in the self-reported drinking habits of Swedish drinkers suggesting that alcohol is largely 'recession resistant' INSIGHT: Swedish consumers' household care buying preferences are increasingly shaped by price consciousness irrespective of an economic downturn - Price led value has established itself as the most influential factor for Swedish household and laundry care purchases, but preferences do reflect other important influences - The private label household care market in Sweden is small but potentially lucrative given shoppers' desire for price-led value - Key takeouts and implications: Swedish consumers associate hygiene and cleanliness with wellbeing and this, combined with their dislike of household chores, makes them somewhat quality conscious, but price consciousness has increased amid the economic downturn ACTION POINTS ACTION: Prepare an approach to delivering and communicating better value-for-money than the competition without alienating those still searching for quality - Actively demonstrate value-for-money by re-appraising marketing initiatives, including slogans - Understand consumer loyalty levels for your category - Adopt astute 'mix management' marketing - Ensure that the value gains for shoppers are instantaneous - Focus on quality to maintain differentiation and prove to consumers that quality really matters - Evaluate and adapt cost structures so that it is feasible to offer value-for-money solutions - Start planning for the longer-term by continually tracking Swedish consumers as an economic recovery begins to become a reality APPENDIX Methodology Further reading and references Ask the analyst Datamonitor consulting Disclaimer LIST OF TABLES Table 1: Consumer survey: level of satisfaction with "the general direction of how things are going" and "quality of life", in Sweden and globally, 2009 Table 2: Consumer survey: satisfaction with current financial situation and importance attached to wealth/income and having finances in good order, in Sweden and globally, 2009 Table 3: Consumer survey: perceptions of whether broader economic conditions, financial situation, job security/confidence and housing market confidence had improved or worsened in the six month previous and how each might change in the preceding six months, in Sweden, 2009 Table 4: Consumer survey: propensity to feel tense and the extent to which perceived levels of stress have changed in the last six months and are expected to change in the next six months, in Sweden, Table 5: Consumer survey: propensity to feel very tired and the extent to which perceived work-life balance has changed in the last six months and are expected to change in the next six months, in Sweden, Table 6: Consumer survey: happiness levels and the extent to which perceived happiness has changed in the last six months and are expected to change in the next six months, in Sweden, Table 7: Consumer survey: changing value-consciousness and desire to save money when buying groceries among Swedish shoppers, 2009 Table 8: Consumer survey: changing efforts being made to use coupons, change grocery store choice to save money, embrace more disciplined shopping and gather and utilize store price information, among Swedish shoppers, April 2008-April 2009 Table 9: Consumer survey: the relative cost/value and quality consciousness of Swedish and global consumers overall when purchasing food and beverage products in 2008 Table 10: Consumer survey: the extent to which consumers are making efforts to save money by adopting various food and drinks consumption and preparation approaches, in Sweden, Table 11: Consumer survey: perception about the relative superiority or inferiority of private labels versus well known or market leading famous brands in food, soft drinks and hot drinks, in Sweden, 2009 Table 12: Private label food penetration and spend ($ millions) in Sweden, Table 13: Private label non-alcoholic beverage penetration and spend ($ millions) in Sweden, Table 14: Consumer survey: the importance attached to looking one's best in day-to-day life, the pressure to look good, and satisfaction with physical attractiveness/appearance, among Swedish consumers, 2008 and 2009 For a full list of tables and figures please refer to

6 Interested in this topic? To achieve profitable growth, a company needs to identify large addressable growth segments and create propositions to meet these consumers needs. The NCI portfolio helps subscribers to make a first evaluation of a consumer segment by providing concise, practical information and creative ideas. The portfolio is a must-read for many client functions; Marketing, Consumer Insight, Strategic Planning, NPD, Sales. Other reports in this series Private Label Shopping Trends in Alcoholic Beverages This report analyzes consumer attitudes and behaviors regarding alcoholic beverage private label brand purchases. It explores shoppers' price and value consciousness and their attachment to manufacturer alcoholic beverage brands. Published: Jan-09 Code: DMCM4657 Recessionary Consumers and Product Choice: Implications for 2009 This report contains detailed trend analysis, insight and best-practice recommendations covering the impact of recessionary consumer attitudes and behaviors within the Consumer Packaged Goods (CPG) and Financial Services markets. Published: Jan-09 Code: DMCM4646 Private Label Shopping Trends in Food and Non-Alcoholic Beverages This report analyzes consumer attitudes and behaviors regarding food and non-alcoholic beverage private label brand purchases. It explores shoppers' desire for value and their attachment to manufacturer brands in these sectors. Published: Nov-08 Code: DMCM4648 Private Label Shopping Trends in Personal and Household Care This report analyzes consumer attitudes and behaviors regarding personal and household care private label brand purchases. It explores shoppers' desire for value and their attachment to manufacturer brands in these sectors. Published: Oct-08 Code: DMCM4643 Recessionary Consumers and Product Choice Explores changing consumer attitudes and behaviors regarding the current uncertainty in the global economic environment. Critically, it discusses what actors within the FMCG industry can do to profit, not just survive, from recessionary trends. Published: Jun-08 Code: DMCM4622 For more information about these products or to browse and purchase from our huge range of research please visit. Contact our customer service team today... Europe tel: fax: reports@datamonitor.com Americas tel: fax: reports@datamonitor.com Middle East tel: fax: reports@datamonitor.com Asia Pacific tel: fax: reports@datamonitor.com

7 Place your order now... 1) Confirm the licence type you require The Global Economic Crisis: The Impact on Consumer Attitudes and Behaviors in Sweden Single user licence Muli-user licence (Please refer to for up-to-date prices) 2) Complete your details 3) Complete your payment details Title Mr / Mrs / Ms (delete as appropriate) Name... Job Title... Department... Company... Address... City... State/Province... Post Code/ZIP... Country Telephone... Datamonitor products and services are supplied under Datamonitor s standard terms and conditions, copies of which are available on request. Payment must be received within 28 days of receipt of invoice. I do not want to receive future mailings from Datamonitor and its related companies. I do not wish to receive phone calls from Datamonitor. Occasionally, our client list is made available to other companies for carefully selected mailings. Please check here if you do not wish to receive such mailings. What is your preferred currency option? UK Euro US$ Yen How would you like to pay? I enclose a check payable to Datamonitor plc for... Please invoice my company for... Please debit my credit/charge card Amex Visa Mastercard Card no.... Expiry Date... /... Cardholder signiture... Cardholder address Please supply purchase order number (if required)... If you are an EU company (except UK) please supply your VAT / BTW / MOMS / MWST / IVA / FPA number... 4) Sign below to confirm you order X... Date... 5) Fax this completed form back (Europe) (Americas) (Middle East) (Asia Pacific) Alternatively you can scan and this form to reports@datamonitor.com