As consumers further tighten their belts, they are changing their consumption and purchasing patterns to match.

Several new and interesting trends are emerging, which are radically different to previous downturns. Here, The Oxford Research Agency shares their thoughts on some interesting emerging trends.

Conducting thousands of interviews every month allows us, as an agency, to have a unique insight into the changing patterns of consumer behaviour. The downturn in the economy is very different, with certain sectors seeing negative inflation (clothes, electronics, etc) and others seeing double digit increases in prices.

Across the agency, our researchers are picking up some new and interesting trends, which are different to those seen before. Here we highlight our top Recession Trends for food and drink

1.      Trading places

The rise of Aldi and Lidl should come as no surprise to observers. Both stores cater to a wide and diverse set of consumers, catering for lower income families on tight budgets whilst becoming a destination store for the upper classes in search of more exotic and European fare.

As more people are exposed to the continental offer, the simple and no-nonsense store layouts and the relatively cheap prices coupled with good quality, it is not surprising that belt tightening has led some shoppers to transfer away from Waitrose, M&S and others.

With consumers getting used to the offer from Lidl and Aldi, getting the consumers back into the premium stores may be a difficult task for the retailers. And with restricted access for UK brand owners to these stores, fresh challenges await trades sales team.

2.      Brand disloyalty

Having spent years building brand loyalty, consumers are voting with their feet and trading down to cheaper alternative brands, own label and switching out of categories altogether.

Price promotions are being used to stem the tide of switching, which in turn further erodes brand loyalty. And with a huge range of choice in retailers, switching brands is incredibly easy for consumers.

Building a brand strategy which enables consumers to trade down to an alternative offering from your company is one approach. However, brands need to take a longer term view on how to lock-in consumers to their brand, and whether the brand on its own really has the power to accomplish this.

3.      Feed for a fiver… or a tenner?

Sainsbury’s were very quick and innovative to bring the feed your family for a fiver campaign to TV. It was very interesting to see the M&S offering last month of feed two for £10. A different twist with the same overall theme.

Over the years, grouping products together to enable quick meal solutions has been trialled but rarely implemented well. With campaigns focused on quick, fresh and cheap family meal solutions, Sainsbury’s was ahead of the trend.

Brand owners should be looking to exploit this trend and encourage the retailers to build meal solutions around their brands… it could provide a useful pull back to the brand and a much needed boost to sales.

4.      It’s good…enough

‘Value Engineering’ was a hot topic throughout the 1990’s, taking expense out of product and replacing it with cheaper ingredients, some of which are no longer acceptable to consumers.

Consumers demand and expect, as a matter of course, that brands will provide good, high quality ingredients. However, with this now expected by consumers, trading down is less of an issue for them. Cheaper brands and Own Label provide as good a quality, and on a tight budget. Consumers are prepared to sacrifice the reassurance of the brand.

The need for innovation and improving product quality is critical for brands to evade this trend and ensure that trading down is seen and noted by consumers as a trade down in quality. Brands need to improve quality and continue to be noticed as being significantly better, in product performance, taste and appearance, to survive the tough market that exists today. 

5.      Saving the planet… tomorrow

Corporate and Social Responsibility is still high on consumers’ agenda, but when budgets are tight compromises will be made.

Although we still register high agreement with carbon, organic and fair trade statements in our studies, environmental issues will remain high on consumers agenda, but not for a price premium. It will, in our view, become a hygiene factor for all brand owners to care and have policies in place to ensure that their brands are acting on consumers concerns over the planet, but increasingly it will not be a point of differentiation.

For some consumers, saving the planet will be relegated to something that will have to wait, as priorities switch to feeding their families high quality food, within their budgets.

 The Oxford Research Agency specialises in NPD in the Food and Drink arena. To find out more, contact Chris Sinclair, Joint MD, on +44 (0)1865 728272, or email chris.sinclair@tora.co.uk