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Craft Businesses Benefit From Change in Consumer Behaviour
Listed under: News
Published: Monday, July 26, 2010
Up to 31% of customers are now making significant changes to their spending habits, according to a recent report from Shoppercentric.
Revealing that customers have generally become more prudent (87%), as opposed to economical (82%) with their budgets this year, the findings show that consumers will be spending far greater amounts of time at home, with 49% cutting back on nights out on the town and eating out, and 40% reducing their holidays abroad. Shoppers will also be buying less new clothing, seeing 51% purchase fewer items.
Whilst the statistics may be bad news for many businesses within the retail sector, they are likely to be hugely advantageous for the craft industry, as customers will inevitably be looking for much cheaper and enjoyable ways of entertaining themselves indoors.
Commenting on the findings and suggesting ways businesses can capitalise on the changes in consumer behaviour this year, Danielle Pinnington, managing director of Shoppercentric, says, “The report has flagged up some interesting, perhaps surprising results. The continuation of prudence by the shopper presents retailers and manufacturers with new challenges and promotions opportunities on ingredient items amongst others – to fire up enthusiasm for making things from scratch, for example.”
She adds, “Retailers need to continue listening to shoppers and their needs, and respond accordingly with good pricing and reward strategies. Likewise, the Government must recognise and provide support for the impact that the VAT increase will have on businesses.”
Revealing that customers have generally become more prudent (87%), as opposed to economical (82%) with their budgets this year, the findings show that consumers will be spending far greater amounts of time at home, with 49% cutting back on nights out on the town and eating out, and 40% reducing their holidays abroad. Shoppers will also be buying less new clothing, seeing 51% purchase fewer items.
Whilst the statistics may be bad news for many businesses within the retail sector, they are likely to be hugely advantageous for the craft industry, as customers will inevitably be looking for much cheaper and enjoyable ways of entertaining themselves indoors.
Commenting on the findings and suggesting ways businesses can capitalise on the changes in consumer behaviour this year, Danielle Pinnington, managing director of Shoppercentric, says, “The report has flagged up some interesting, perhaps surprising results. The continuation of prudence by the shopper presents retailers and manufacturers with new challenges and promotions opportunities on ingredient items amongst others – to fire up enthusiasm for making things from scratch, for example.”
She adds, “Retailers need to continue listening to shoppers and their needs, and respond accordingly with good pricing and reward strategies. Likewise, the Government must recognise and provide support for the impact that the VAT increase will have on businesses.”
