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Global consumer packaged goods shoppers should not be defined by their country but instead by their shopping attitudes and behavior, especially their attitudes toward price and their propensity to pre-plan their consumer packaged goods purchases.
These are the latest findings from a global segmentation study conducted by Ipsos Marketing, Shopper and Retail Research.
Ipsos Marketing has identified five different types of CPG shoppers that can be found around the world in varying degrees:
- Brand Lovers (19%): The distinguishing trait of these shoppers is spending money on brands that may be more expensive than alternatives. These shoppers are the ones who are more influenced by store staff and place a greater value on convenience.
- Price Driven (23%): With fixed budgets for grocery shopping, shoppers in this group are more likely to make a shopping list, compare prices and go out of their way to find the stores with the lowest prices.
- Indulgents (16%): The most impulsive group, this group is attracted to new products in store and is more likely to choose the good tasting over the healthy option. They are happy to spend more to save time and don’t mind paying more for branded products.
- Responsible Planners (17%): Shoppers in this group are also on a fixed budget (like the Price Driven shoppers) and always compare prices. They are the shoppers most likely to buy online and have changed their habits to shop in a more sustainable way.
- Bargain Hunters (25%): Shoppers in this group also hunt for bargains but are less price-constrained and more impulsive. They can afford to buy in bulk and are less interested in shopping online.
The segments were developed based on a consumer survey conducted by Ipsos in 23 countries. The segmentation analysis revealed two important implications for CPG marketers:
- Global CPG shoppers can be segmented based on their attitudes towards bargain hunting, promotions and price comparisons and the degree to which they stick to their pre-planned purchases vs. buying on impulse.
- Country of residence is not a strong factor in trying to classify global shoppers into different segments. In fact, data suggests that consumers in different countries may exhibit similar shopping behavior even though they are geographically dispersed and at different stages of economic development.
“Our data suggests that shopping styles transcend geographic boundaries,” said Gill Aitchison, president of Ipsos Marketing, Global Shopper & Retail. “For example, Argentina, Brazil, Italy, Mexico, Poland and Spain all fall in the middle of the spectrum when it comes to price sensitivity and pre-planning of CPG purchasing, despite the fact that they differ considerably in terms of geographic location and economic development. These cross-country patterns can help marketers adopt a multinational strategy based on common shopping traits.”
Donna Wydra, senior VP at Ipsos, agrees: “It’s natural for marketers to try to customize their merchandising strategies to countries or geographies – there is an intuitive logic to doing that. However, our findings demonstrate that retail strategies should align with shopping styles, which are not necessarily dictated by geography. For example, Brand Lovers dominate across China, India, Russia and Turkey – therefore, marketers can take advantage of the opportunities that this provides as brands become more affordable in these growing economies. On the other hand, there is a need to continue to promote and meet the needs of the bargain hunters found in the U.S., Canada, Great Britain and Australia for whom smart shopping has become a way of life. The bottom line is that shopping strategies should align to shoppers, not countries.”
Ipsos is a leading global survey-based market research company, owned and managed by research professionals.