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THE IMPACT OF THE RECESSION ON VALUE AND PREMIUM GOODS
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THE IMPACT OF THE RECESSION ON VALUE AND PREMIUM GOODS
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The web-based questionnaire was hosted on commercial web space leased specifically for the project and participants were recruited through a variety of websites ix . This mechanism of data collection allowed a specific focus on (predominantly male) technology users such as computer gamers and music enthusiasts - two populations in which the consumption of counterfeit goods is believed to be frequent (ACG, 2003). The number of responses to the web-based questionnaire was 681. The overall sample size was 2370. . | WHITE PAPER sIbF THE IMPACT OF THE RECESSION ON VALUE AND PREMIUM GOODS By Tash Altay Commercial Director IRI UK INTERNATIONAL HEADQUARTERS Eagle House The Ring Bracknell rGi2 1HS TEL 44 1344 746000 FAX 44 1344 746001 The Impact of the recession on Value and Premium Goods BACKGROUND Recessions like any other part of the economic cycle bring with them challenges as well as opportunities for businesses. Consumer confidence across Europe is currently at a particularly low ebb as macro-economic factors force shoppers to reappraise their consumption habits. Issues such as rising fuel costs food and commodity price rises the tightening of credit and decreasing property values have all encouraged a more cautious approach to spending. On the CPG side inflation is hurting turnover as price rises in raw materials force firms to push up in-store prices. In some cases the price rises when combined with other factors are forcing customers to trade down to cheaper brands or private label products while other goods which are seen as unnecessary to their needs may even be sidelined altogether. However at the other end of the scale certain premium products are appearing more resilient to the recession as consumers sacrifice items in order to satisfy their need -whether societal psychological or emotional - for these goods. So what can retailers and manufacturers do to stay ahead of the competition and encourage greater consumption How do they pick the right marketing and promotional strategies in such challenging business conditions IRI has used its powerful Infoscan point-of-sale data gathering technology to compile a wide-ranging study into shopping habits over a range of categories during the past two years. The body of evidence provided in this paper is a result of this data gathering and analysis tool. The vast data warehouses of retailers across the UK France Germany Spain and Italy have been trawled to provide us with a comprehensive picture of shopping habits in these .
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