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Is the consumer really price/health/ethically conscious?
by Glynn Davis
There has been talk (and some stats produced) about the downturn pushing many shoppers into throwing out their ethics, abandoning organic foods and forgetting about sustainability and the planet in general - all in the name of seeking out the cheapest prices.Not so, suggests a batch of research from grocery specialists IGD. It found that shoppers may well be scrutinising price a tad more than they were a year ag
This conclusion comes on the back of findings that show 17 per cent of shoppers say they bought more Fairtrade products than six months ago, 22 per cent purchased more high animal welfare standard goods, and 17 per cent bought more local goods than six months ago.
This all sounds pretty responsible stuff when we are led to believe that shoppers are so strapped for cash that they are even reducing their portion sizes for meals, making lunch at home to take to work, and starting to grow their own fruit and vegetables at home. All true again, according to the IGD research.
The problem with surveys and issues of a virtuous nature is that people tend to say one thing and do the complete opposite. So believing that we have entered the era of the multi-faceted shopper (who is price, ethically, and health conscious) should be taken with a pinch of salt - organic and not too much, of course.
glynnd@theretailbulletin.com
ASOS rules online for obvious reasons
When Boo.com went under pretty much every clothing retailer and industry commentator dismissed the internet as an unlikely channel over which consumers would shop for clothing.
Eight years down the line, try telling that to ASOS chief executive Nick Robertson who has built up an impressive business while others have remained sceptical about the opportunity for flogging clothes online. Consider that Zara and H&M have not even got websites.
What is most surprising is that many established high street retailers continue to hold back on committing resources to the online channel even though four per cent of all clothes are now bought over the internet and predictions suggest it could be 10 per cent by 2010/11.
This has enabled Robertson to build a sizeable business online - with sales behind only Next. The interesting this is that he is closing in on the leader while also increasing the gap between his business and the retailers behind that include Topshop and River Island.
This momentum could potentially put the company in a place where the competition will not be able to reach it. What is helping it push forward at a rapid rate is the number of brands it is now attracting who have decided it is not worth operating their own sites and are instead selling online through ASOS.
This opportunity has been recognised by Amazon, which is planning to sell various brands on its site. To many this could be seen as a threat to ASOS but because of the credibility of the company's site with the fashion conscious there is little concern at ASOS HQ.
This might well be true and Amazon could fail badly but at least it is acknowledging that there is a big market for clothes online. This is something that many major UK retailers are still oblivious to despite the threat to their businesses from the likes of ASOS.
glynnd@theretailbulletin.com
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