Introducing our 2015 FMCG trend report. We have looked at all the recent global and local trends on the FMCG category across the Consumer and Food Services industry. Enjoy!

1. October 2015
www.newrepublique.com
Trend analysis

2. 2
03
ABOUT US
05
THE CONTEXT
10
COMMUNITY CHEST
18
SUPERMARKET
SUPERPOWERS
28
NOT VALUE,
BUT VALUES
38
HEALTH KICK
46
FOODS FROM
NEAR AND FAR
54
NEED FOR SPEED
64
DON’T JUDGE A
PRODUCT BY ITS
PACKAGE
74
OMNIPRESENCE
84
CONCLUSION
86
METHODOLOGY
88
SOURCES
CONTENT

3. 4
ABOUT US
User Experience Brand
Data and
Analytics
CUSTOMER
EXPERIENCE
DESIGN Studio
Development
Creative
We’re a bunch of wildly passionate entrepreneurs with one
goal: to become the most desired agency to work with and for.
We position ourselves as experts in sales. However in today's
digitally connected, socially engaged, post GFC market - the
art of selling has dramatically changed. This is why today's
definition of a 'creative agency' must change.
Agencies like ours need to move away from selling ads to
focusing on designing exceptional customer experiences.
We do this by re-organising around three core disciplines of
Brand, User Experience and Data. These disciplines are then
supported by our traditional and digital creative, studio and
technology services.
Since our inception we have worked with clients to help
them re-define their customer experience and sales approach
by:
Re-designing how their brands move online (and vice versa)
Attracting and engaging customers via digital assets
Selling and re-selling to customers via data lead consumer
insights and personalisation
We believe that todays technically lead market needs an
agency that can bridge the gap between brands, experience and
technology, whilst being able to engage and excite consumers
with compelling creative and inspiring design.
To find out more about us please visit:
www.newrepublique.com
or contact us on: +61 2 9332 2218

4. 6
The Fast Moving Consumer Goods (FMCG) sector is
crucial for Australia’s GDP, but also for the health and
wellbeing of the nation. With an industry turnover of
$114 billion, it employs almost 300,000 Australians and
sustains approximately 27,469 businesses. Food and grocery
manufacturing is Australia’s largest manufacturing sector,
accounting for a quarter of total manufacturing, and its
products are consumed by 23 million Australians every day.
In the highly competitive field of FMCG, customers are only
as loyal as their options. Post-GFC consumers increasingly
hunt for the lowest price on the day, and this competition
and price pressure means that profit margins are reduced.
The post-crisis consumer is also more skeptical than ever
about large corporations and advertising, and brands are no
longer seeing as much success from ‘selling’ their products to
consumers through traditional means. Instead, consumers
With Masterchef, The Naked Chef, and a host
of other chefs on our TVs and in our Facebook
feeds, it seems everyone these days is calling
themselves a ‘foodie’. The food sections of 21
newspapers, such as Good Food, Taste, and Fresh,
have a total monthly readership of a staggering
5.9m people. Through these, as well as their
social worlds, consumers follow new trends in
food and diets, and FMCG companies need to
keep pace with their fast-changing preferences.
Food and grocery
manufacturing is
Australia’s largest
manufacturing
sector
respond to brands that represent
their values and are advocates of
particular lifestyles and beliefs.
Consumers are increasingly in
the driving seat, and in order for
supermarkets to maintain regular
customers, and suppliers to maintain
a slot on supermarket shelves, brands
need to innovate to keep in touch
with their customer’s desires.
THE CONTEXT

5. 8
Throughout the report we will use GRiP, New Republique’s
framework for determining how a brand can increase the
buyability of its products amongst today’s customers, to assess
the best ways to react to current trends. GRiP suggests that
to engage with the post-GFC consumer - a consumer who is
increasingly value-conscious, mobile, and digitally and socially
connected - brands must exhibit Generosity, Responsiveness
and Proximity.
Generosity refers to a brand’s willingness to give back –
which encompasses giving to the community at large as well as
to the consumer on an individual level, through monetary and
other benefits.
Responsiveness is about knowing the internal world of the
consumer - their dreams, goals and preferences. It’s about
using Customer Relationship Management, behavioural
tracking and targeting, data, and trend analysis to get to know
consumers on a personal level and feed into their desires for
individualised and custom products that suit their needs.
Proximity refers to being present in the consumer’s world.
Consumers are drawn to brands with a strong Proximity to
them, and this has four dimensions.
THE CONTEXT
1. ‘Me’ - At the level of the individual, Proximity
refers to integrating the brand into the consumer’s lifestyle.
This provides opportunities for retention of those who are
already customers.
2. ‘My world’ - In a person’s immediate world,
Proximity means that they are on a word-of-mouth-basis with
the brand, which exists within their personal social network.
3. ‘My community’ - This refers to interest groups
that the consumer identifies with or the way in which the
consumer defines themselves. It is within the second and
third dimension that brands create supporters and receive the
greatest return and leverage.
4. ‘The world’ - Brands can also reach consumers
through mass media and broad-reaching advertising and
communications.
It is when each of these elements of GRiP align that
a moment of ‘magic’ can happen, which transforms the
consumer’s world and ultimately works wonders for brands.

6. 10
Demographics of Australian societyWith a growing, aging
population, steady immigration and an increasing number
of Millennials in the workforce, the Australian community
landscape is changing significantly, with implications for the
demand for FMCG goods.
Australia’s workforce is increasingly made up of Generation
Y (or Millennials), which today number 21% of the workforce
but will grow to 35% in 2020. Similarly, Generation Z today
comprises just 2% of workers, but will reach 12% by 2020.
The next generation of shoppers, Generation Alpha, will be
the most educated generation Australia has ever seen, with
90% predicted to complete year 12 (compared with 80%
today). These are the shoppers of today and tomorrow, and
for them, Technology is a part of their makeup. Just like their
movies on Netflix, they want everything to be available to them
on demand. They are savvy, skilled shoppers, who know how to
use the Internet to their advantage when it comes to finding the
cheapest product or the next new thing. Globally, Millennials
Generation
Alpha, will be the
most educated
generation
Australia has ever
seen
make up over half of those who plan
to make a purchase online in the next
6 months, with Generation X making
up about 28%, and Baby Boomers
about 10%. Of Millennials who plan
to buy online, baby supplies, personal
care items, toys/dolls and of course,
alcoholic drinks, will take the most
significant share of their purchases.
COMMUNITY CHEST

7. 12
Our population is getting older, having added 6.8 years to
our median age and 6.3 years to our life expectancy in the last
20 years. In another 20 years, the ratio of workers to retirees
will be just 3:1, whereas today it is 5:1. As customers get older,
spending on many goods will begin to decline, but they will
have new needs. The next generation of over 70s are more
educated, more economically empowered, and more focused
on themselves than any previous generations. In their old age
they will have more desire to continue to be productive, and
they will want entertainment, enrichment, and leisure, as well
as health and quality of life.
13
As we leave marriage and kids until later in life, and more
Baby Boomers are becoming ‘empty nesters’, Australia is made
up of fewer traditional households. The couple-only family
has replaced Australia’s nuclear family as the most common
household type. This means that many FMCG products are
becoming smaller and more personalised. Products like ‘meals
for one’ and even specially-bred mini versions of vegetables
which can be used in one sitting are helping us avoid waste and
maintain value for money.
Over the last century, Australia’s population has grown by
18.5 million people. Our national growth rate is well above the
world’s average at 1.0%, caused by a steady growth in annual
births and net overseas migration. This overseas migration
has made Australia a multicultural society, which gives us great
exposure to new restaurants, recipes and flavours.
22%
21%
22%
22%
7%
11%
Builders (69+)
Generation X (35-49)
Generation Z (5-19)
Baby boomers (50-68)
Generation Y / Milennials (20-30)
Generation Alpha (<5)
COMMUNITY CHEST

8. 14
Companies who want to stay relevant to Australian
consumers need to be Responsive to changes in the community
landscape. Brands should consider how the needs of various
segments of the population differ to ensure they target the
right type of consumer.
With Australia’s diverse cultural makeup comes
opportunities to take advantage of niche tastes and our desire
to experiment with foreign flavours.
Millennials and Gen Z, with their fragmented use of
technology, are harder to reach with conventional advertising
or marketing. They are more diverse, less keen on large
corporations, and more likely to be multi-channel shoppers.
In their fast-moving world, finding the next new thing is no
big deal, and they are instead looking for the next thing that
accommodates their unique tastes, interests and aspirations.
Placing high value on individualism and entertainment,
they’ll buy less of what’s ‘popular’ and more of what suits
them and their niche interests. One way that brands can be
Responsive to this is by allowing them a part in the process of
creation through recreating and personalising products to suit
themselves. Many Quick Service Restaurants (QSRs) get this,
with their ‘make your own salad’ or ‘choose your own sides’
customisable menus.
COUNTRY OF BIRTH MEDIEAN AGE ERP
53.9
39.3
34.8
32.7
44.2
39.7
69.0
40.2
38.2
63.0
69.0
41.2
36.9
33.2
49.3
38.3
65.2
37.5
34.3
42.6
United Kingdom
New Zealand
People’s Republic
of China
India
Vietnam
Philippines
Italy
South Africa
Malaysia
Germany
greece
Sri Lanka
United States
Of America
Republic of Korea
Lebanon
Hong Kong
Netherlands
Ireland
Indonesia
Fiji
1,222,570
608,820
427,590
369,680
215,460
210,760
199,120
173,182
148,760
127,650
119,960
106,280
104,880
93,270
91,290
80,580
86,600
95,770
79,650
68,330
COMMUNITY CHEST

9. 16
Product co-creation is another engagement strategy, which
Unilever’s ice cream brand, Ben and Jerry’s, has seen great
success with. Their international crowd-sourcing campaign
‘Do the World a Flavour’ asked consumers to come up with
their own ice cream flavour. During the six week competition,
they received over 100,000 submissions. This succeeded in
creating creative new flavours and raising awareness about their
move to fair trade ingredients. Another of their projects, called
‘City Churned’, turned to town locals in several US cities to
look for ingredients that best represented their town. These
kinds of strategies engage Milennials, who like to feel that their
voices are being heard by brands and that products cater to
them specifically. To meet the needs of the aging population
17
For example, Proctor & Gamble has seen success with
their age-defying product, Olay Regenerist. In their own
co-creation strategy, they used their Connect + Develop
programme to outreach to innovators across the world in
search of new anti-wrinkle technologies. P&G was contacted
by a small French company, Sederma, who they then worked
together with to create the new product. It quickly became a
global market leader, beating boutique creams worth $350.
These kinds of
strategies engage
Milennials, who like
to feel that their
voices are being
heard by brands and
that products cater to
them specifically
brands should expand
their range of convenient
and functional products, and
services that make their lives
easier, like home delivery.
Consumers will also be looking
for products that help them
defy, enjoy, and deal with age.
COMMUNITY CHEST

10. 18
Every true Aussie knows that Coles and Woolies are fighting
an epic and ongoing battle for supermarket supremacy, with
the winner set to rule the country once and for all. Okay,
so maybe not quite - but the dominance of the two major
supermarket retailers is certainly one of the most prominent
aspects of the Australian FMCG market. With forays into
petrol, liquor, insurance, and now finance, their reach extends
far beyond groceries.
Competition between the two is fierce, resulting in price
battles and difficult situations for suppliers, who struggle to
gain and maintain the attention of the supermarkets. Coles
and Woolies are aware that there are very few brands that
consumers care about so much that removing them from the
shelves would be enough of a deal-breaker to cause them to
take their business elsewhere. The supermarket giants have
seen profits grow as they increasingly stock private label goods
on their shelves. While these used to occupy the cheap, lower
quality, ‘no frills’ end of the market, they now offer cheaper
It is predicted that
private label goods
will make up 40%
of grocery sales
within 4 years
alternatives of the same or
even better quality than other
products. It is predicted that
private label goods will make
up 40% of grocery sales within
4 years, as we look to follow in
the footsteps of the UK, where
they already make up 50%.
SUPERMARKET
SUPERPOWERS

11. 20
“Where we don’t see
innovation
from branded
manufacturers, we’ll use
the Coles brand to
innovate”
- John Durkan, Coles merchandise director

12. 22
The argument that the supermarket giants wield unfair
power over their suppliers was given weight last year, when the
ACCC launched its second large legal action against Coles in
six months. It accused Coles of engaging in unconscionable
conduct against five grocery suppliers, by forcing them to
cover gaps in its profits, pay fines for late deliveries and pay
for wastage in stores (which includes shoplifting). Coles was
found to have increased its profit at the expense of smaller
companies, and was forced to pay $11.2 million in penalties
and fees. The outcome of this case could have positive benefits
for suppliers - who need the competitive landscape to tip in
their favour - as the behaviour of supermarket superpowers is
increasingly checked.
The competitive outlook is also changing as foreign
supermarket chains have taken on the Australian stalwarts. Aldi
has had the most success, quadrupling its customer base over
the last eight years. 4.2 million Australians now shop at Aldi
in an average four-week period. While they’re not yet near the
8.8 million customers shopping at Coles or the 9.5 million
23
Metcash, owner of retailer IGA, has suffered the most from
Aldi’s success, but Coles and Woolworths are feeling it too,
with Woolworths posting its lowest quarterly sales growth for
over a decade in November 2014. It has been estimated that
Coles, Woolworths and Metcash will lose $250 million to $350
million of sales a year to Aldi.
Since entering Australia in 2009, Costco has launched
seven stores, and it plans to open more soon. German-owned
Lidl is also set to launch in 2015. There are even rumours that
global giant Amazon may try to enter the Australian grocery
market after success with its AmazonFresh delivery service in
the US.
4.2 million
Australians now
shop at Aldi
at Woolworths, Aldi’s long-
term gains in market share are
impressive and they look set
to continue, in part because
of the low cost alternatives
it offers value conscious
consumers.
SUPERMARKET
SUPERPOWERS

13. 24
There are approximately 30,000 independent retailers in
the Australian market , and these manage to hold onto 8% of
supermarket grocery spending.
Farmers markets, specialty stores, online niche retailers and
other smaller players are also growing. The retailers who have
seen the most success define themselves by the customers they
target, providing edited assortments of goods which are just
right for their specific target customer. Go Vita, Australia’s
largest health food co-op, now has over 150 stores, and Aussie
Farmers Direct has been Australia’s fastest growing franchise
business for three years in a row.
25
39%
34%
10%
9%
8%
Woolworths
Coles
ALDI
IGA
Other supermarkets
SUPERMARKET
SUPERPOWERS
It now has 226 franchises across six states, delivering 1.3
million food and grocery products each week to more than
130,000 customers. There are also over 160 farmers markets
operating across Australia, providing direct connections
between producers and consumers who want fresh food straight
from the source. They are estimated to have a 7% market share
of fresh food sales.
Despite food being concentrated in the supermarket
channel, a significant share of Australia’s food spending
also goes to independent fresh food specialists (like bakeries,
greengrocers, fishmongers, and butchers), as well as takeaway
restaurants and cafés.

14. 2726
With Proximity to customers such an important factor in
determining a brand’s success, having a place on supermarket
shelves is obviously a priority for FMCG brands. The
supermarket giants are looking for suppliers to innovate in
order to keep their position on shelves. Brands need to be the
leader in their category, such that they turn supermarkets into
simple distribution centres for their goods.
With shoppers voting with their wallets, brands need to
turn their customers into advocates that are strong enough
to demand their presence. A great example of this kind of
campaign comes from the team behind Thankyou Water. After
several unsuccessful meetings with Coles and Woolworths, they
had failed to get their products stocked on supermarket shelves.
So when they launched their body care and food ranges in
2013, they also launched a social media campaign designed to
The campaign saw great success, with thousands of people
posting their support, tens of thousands of people watching
the campaign video, and over 15 million media impressions –
plus both Coles and Woolworths agreed to stock the Thankyou
ranges.
Another strategy that suppliers can use is to look for specialty
stores which align with their own customer base, in order to
increase their Proximity to their customers by taking them
from the dimension of ‘the world’ to ‘my world’ - the world of
an individual consumer’s interest groups and communities.
Brands could also consider radical innovations like finding
new ways to distribute their goods to consumers directly,
circumventing the retailer. To do this, they need to create
relevance and connection by delivering on consumer’s
interests, needs and desires. But what exactly do consumers
want anyway? Two of the biggest factors determining their
choices – price and values – are discussed in the next section.
brands need
to turn their
customers into
advocates that are
strong enough
to demand their
presence
use customers themselves to
convince Coles and Woolies that
they should stock their products.
They asked people to post on
Coles and Woolworth’s Facebook
pages telling them that they’d
buy Thankyou products if the
supermarkets stocked them.
SUPERMARKET
SUPERPOWERS

15. 29
Despite how much we love to whine about the price of a
coffee, food prices in Australia are rising at a slower rate than
many parts of the world. For much of the past two decades, the
consumer price index for food in Australia has been lower than
the OECD average.
This is good news for consumers. Since the GFC, desperate
companies have trained consumers to expect price reductions,
rewards, and promotions as a matter of course. As people
purchased more food for meals eaten at home (owing to the
belief that it is cheaper than eating out), grocery retailers
responded by increasing the focus and intensity of their
promotional campaigns around ‘meal value’ and extending
their use of private label lines in staple products. This increased
the intensity of price competition between grocery retailers.
The high competition between Coles and Woolies has caused
the supermarkets to use extensive price-based promotional
strategies to win sales growth, passing this through the supply
chain in the form of price pressure on suppliers. Combined
desperate
companies have
trained consumers
to expect price
reductions
with a strong Australian
dollar, this has caused a
significant increase in import
penetration as brands struggle
to stay competitive in a country
with high costs and low
margins.
NOT VALUE,
BUT VALUES

16. 30
Australian families continue to be price-conscious, with
80% of Australians believing that price reductions make a big
difference, and 70% saying cost is the biggest influencing
factor when it comes to purchasing grocery items. Clearly,
brands who exhibit Generosity through price cuts, multi-buys
and other deals can reap immediate rewards from consumers.
Price is becoming an even more important factor with
the rise of the online shopper. Through the web, online
shoppers have greater access to information about prices across
supermarkets, and the ability to quickly find the next new thing
at even more affordable prices. The near-perfect information
and choice available online has further brought prices down.
With price such an important decision-maker, Australian
consumers are among the most promiscuous grocery shoppers,
as compared with other countries. Consumers are increasingly
disloyal to brands - happy to switch to whatever is on special -
and they are even disloyal to supermarkets.
31
As shoppers become fatigued with weekly promotions
and all of this downward pressure makes it difficult to be the
cheapest, supermarkets and brands need to get creative in their
marketing of products that are not leaders in their category.
Brands need to create meaningful reasons for consumers to
stick with them, despite paying a premium. New lines that
aren’t necessarily low priced can succeed - but they must have
the right offer which meets a consumer need.
70.0
52.0
35.0
17.0
00.0
Price or
special
offer
What’s in
season
Whatever
Ingredients I
need
Local
Produce
Dietary
needs
Don”t care
about cost
just
convenience
NOT VALUE,
BUT VALUES

17. 32
One reason customers are willing to pay a little extra for
their groceries is to fulfill social and ethical responsibilities.
People have come to expect brands to be Generous - not
just to individuals, in providing value for money, but also to
communities, the less privileged, and other causes like the
environment. Increasingly, consumers project their own
values onto a brand and use shopping as a proxy for their own
ethical contribution to society. What a brand believes in and
how it helps communities and the environment are becoming
important factors in consumer purchases.
Consumers want to know that their food has been ethically
sourced and farmed. This has seen organic options and grass-
fed beef gain attention, and 25% of consumers only buying
eggs if they are free range and chicken if it is RSPCA approved.
36% of people are willing to pay at least 5% more for ethical
and fair products, and 29% are willing to pay 5% more for
33
consumers
project their
own values
onto a brand
a product that minimises
environmental impact. In
today’s emerging generations,
these percentages are even
higher, suggesting that
this trend is only going to
strengthen.
NOT VALUE,
BUT VALUES

18. 34
Consumers today are understandably
concerned about sustainability, as de-
mands for natural resources continue to
challenge supplies. By 2030, the world's
population will reach 8.3 billion, boosting
demand for food and energy by 50% and
for fresh water by 30%. In this light, sus-
tainability is simply smart business.”
- Muhtar Kent, Chairman and chief executive, The Coca-Cola
Company

19. 3736
In response, brands such as Coca-Cola have embraced
sustainability whole-heartedly. They are reducing their eco-
footprint and reliance on fossil fuels with PlantBottle - a fully
recyclable plastic package made up to 30% from plants, and are
working to create a bottle that’s 100% made from plants. They
also want to protect the ingredients that go into their products,
like water. By 2020, they aim to give back 100% of the water
they use in their products.
The trend has also seen a rise of sustainable cafés and grocery
stores, which have grown by positioning themselves as not just
providers of products, but providers of lifestyles. Aboutlife,
which now has 5 stores in Sydney, embraces the grocery store
as a lifestyle experience. Not only do they focus on organic and
natural foods, but each store has a whole food café and natural
pharmacy. Similarly, in southeast Queensland, Wrays Organic
Market and Café has grown from humble beginnings to now
having 9 stores open.
Clearly, Generosity from brands on an individual
level, in the form of discounts, two-for-ones, giveaways
and competitions, is well appreciated by consumers. But
as maintaining significant differences in prices becomes
increasingly difficult for producers and supermarkets, profit
margins are squeezed, and consumers tire of seeing the same
deals, being Generous at the level of the individual may
not necessarily pay off in the long run, as consumers will
presumably take their business elsewhere as soon as your
brand is no longer the cheapest. Even being Generous at the
level of the community, while currently a factor of consumer
decision-making, will have diminishing returns as it becomes
the norm for companies and consumers simply expect,
rather than appreciate it.
In this light, being Responsive to consumers may actually
have more significant payoff for some brands. It will become
more important to differentiate and innovate, in order
to better respond to consumer values, desires and goals.
Supermarket loyalty cards provide an opportunity to capture
data on these consumer interests. Australians, being the
value-conscious shoppers that they are, are more than willing
to use these in return for targeted, relevant discounts.
14.5 million Australians are using FlyBuys and Woolworths
Rewards loyalty cards, meaning supermarkets can gather all
kinds of data on consumer habits, budgets and lifestyles.
Targeting specific consumer interests and becoming a
reflection of their lifestyle will put brands on the road to
magic.
NOT VALUE,
BUT VALUES

20. 39
For example, Coca-Cola’s newest release in Australia, Coco-
Cola Life, claims to have a third less sugar and a third fewer
calories than regular Coke, as it’s sweetened with a natural
plant extract, stevia.
As we become more aware of the health consequences of
certain diets, gluten free, preservative free, allergen free and
dairy free have become food buzzwords, and alternatives, such
as soy milk, almond milk, and rice milk are no longer hard to
find at a café or on shelves.
According to Australian Bureau of Statistics data, 51-70 year
olds are the most likely to be on a diet. Overall, the top types
of diet for both men and women over age 15 are weight loss or
low calorie diets, low fat or cholesterol diets, sugar free or low
sugar diets, and low carbohydrate diets.
38
It seems everyone is on a health kick these days. From
kale to quinoa, chia seeds to acai, a new ingredient seems to
reach ‘superfood’ status before most of us even learn how to
pronounce the last one.
Part of this is due to the fact that today’s consumers are
more educated and more engaged with their food than ever
before. As a result of growing concern over health and safety,
56% of consumers spend more time reading labels, looking
at ingredients and searching for additives than 3-5 years ago.
As they learn more about the benefits or otherwise of certain
foods, consumers are following trends in healthy substitutes,
trialing elimination diets, and taking up alternatives like Meat
Free Monday. ‘Clean’ or less processed food is on the rise, as
59% of consumers globally find food or drinks with as little
ingredients as possible appealing.
This has seen the demise of fatty foods, and an increase
in foods with less sugar, salt and fat. Foods which claim to
be low calorie or ‘natural’ are also on the increase. Healthy
alternatives to junk food are appearing everywhere - with veggie
chips replacing other
crisp snacks and veggie juice
becoming an alternative to
soft drink. FMCG companies
increasingly look for ways
to ‘disguise’ healthier foods
without sacrificing taste.
today’s
consumers are
more educated and
more engaged with
their food than ever
before
HEALTH KICK

21. 40 41
And it’s not just what we take out of our diet that’s
important. Consumers are also wanting to add healthier foods
to their diet and are paying attention to things such as their
vitamin intake. FMCG companies attract consumers through
claims of natural enhancers included in their products. We
all know beverages which have taken this route - think vitamin
waters and sports drinks - and supermarkets are in on the trend
too, with Woolworths partnering with Costa to create a range
of Vitamin D-enhanced mushrooms. Other types of enhancers
are being added to non-edible products too, as brands like
Nivea have brought out energy-inducing face wash.
People are increasingly curious about the ‘cleanse’
concept and green juices filled with kale, spinach and
other vegetables are popular at cafés. Sales of cold press
mechanical juicers have burgeoned, with claims that they
retain more nutrients from fruit and vegetables. Juices are
seen as a quick and easy way to get our fill of vegetables, and
55% of consumers globally say they are trying to eat as many
vegetables as possible.
Despite this, many people are not getting their
recommended daily dose of fruit and veggies. Australia ranks
highest for daily fruit and vegetable consumption amongst
all the OECD countries, yet only 5.5% of Australian adults
reach the recommended intake of 5 serves of vegetables and
2 serves of fruit each day, with women more likely to meet
both guidelines than men (6.5% and 4.5% respectively).
Older Australians are more likely to meet the guidelines
than younger adults, with 8.8% of persons aged 85 years
and over consuming the recommended intake of fruit and
vegetables, compared with just 3.4% of people aged 25-34
years. 54% of people believe it is too difficult to include
fruit and vegetables in their daily diet, with some claiming
it is too expensive, and others that they take too long to
prepare.
60.0
45.0
30.0
15.0
00.0
Weight
Loss - Low
Calorie
Low Fat -
Cholestoral
Sugar
Free - Low
sugar
Low
Carbohydreate
Male Female
HEALTH KICK

22. 43
HEALTH KICK
Obesity remains a major problem, with 10.8 million
Australians classified as overweight or obese. 26% of people
believe accessibility of junk food is a cause. The burger is
still our favourite fast food, with 26.5% of the total fast food
market spend, but there has been a five year decline in this
which is set to continue. Pies, sausage rolls, pasties, fish and
chips have declined too, while sandwiches, salads and juice bars
are unsurprisingly on the up.
Some QSRs are feeling the pinch as customers are
demanding healthier fast food choices. In 2012, compared
with a general growth rate of 5% across the Australian food
service industry, takeaway food grew at only 2%. Some large
fast food outlets have sacrificed profit margins for market
share. McDonald’s ‘Loose Change Menu’, aimed at attracting
customers with small, cheap snacks, is typical of this strategy.
Yet the growing emphasis on premium products with premium
‘‘One in three Happy Meals
sold in Australia includes a
healthier choice of either a
grilled chicken snack wrap,
apple slices, low-fat flavoured
milk, fruit juice or
water’’
- spokeswoman for McDonald’s
0.8 million
Australians
classified as
overweight or
obese
pricing has helped boost
margins. QSRs have added
fresher, salad-based menu
offerings, and this has largely
managed to offset potential
loss of business due to dietary
concerns.
42

23. 44
Consumer demand has been met with the expansion of
options in the high growth sector of sandwiches, salads and
juice bars. Subway has forged a dominant role in the market,
but other healthy option brands, like Boost Juice, Sumo Salad
and Healthy Habits have carved strong niches too.
By being Responsive to customer desires and habits, brands
can create and alter products to suit consumer lifestyles and
ultimately become a more appealing option on the shelf.
The fact that consumers display a strong preference for
eating healthy, but find it difficult to do so, displays a great
opportunity for FMCG brands. Providing low calorie, low fat,
sugar free and low carb options which don’t make customers
feel like they are missing out on taste will appeal to those who
are on diets. Creating convenient healthy options for busy
lifestyles will also make it easier for customers to integrate
healthy foods into their diet, and this presents a great
consumers
display a strong
preference for
eating healthy, but
find it difficult to
do so
opportunity for QSRs.
Producers and supermarkets
should also exhibit Generosity,
by finding innovative ways to
provide value to customers who
feel that eating healthy is too
expensive.
HEALTH KICK

24. 46 47
Consumer preference for local, yet diverse
As consumers become experts about food (how could they
not be after five seasons of MasterChef?), their tastes have
changed and they’ve grown to focus on how food is prepared
and where it comes from. While Australians prefer locally
sourced food, they also love diverse flavours and cultural
influences.
A large majority (71%) of us say it’s important to know the
source of our food, such as where it originated and whether it
was ethically farmed. Many people prefer to cook at home as it
means they have more control over their ingredients and where
they have come from. People look for ‘Australian-made’ labels,
and even more local foods from their own region, town or city.
Brands increasingly need to answer consumer’s questions
While Australians
prefer locally
sourced food, they
also love diverse
flavours and cultural
influences.
about where exactly
their food came from
and how it was prepared.
The ‘paddock-to-plate’
trend is also visible in
the growth of sustainable
cafés and farmers
markets.
FOODS FROM
NEAR AND FAR

25. 49
Reasons for preferring local vary. When it comes to fresh
produce, 85% of consumers prefer Australian-sourced foods.
This is partly because there is a perception that Australian fruit
and vegetable produce is of better quality and taste, but also that
local food is fresher. Our obsession with fresh food has grown
alongside the popularity of cooking shows - it only takes Jamie
Oliver to utter the word ‘fresh’ and everyone is out looking for
veggies that are still in the ground, covered in dirt. A whopping
82% of Australians now state that buying fresh is important to
them – up from 68% just 3-5 years ago.
While 55% of us believe that packaged goods are the same
quality whether they are Australian-made or from overseas,
many also choose to buy local packaged food because they
want to minimise environmental impacts or support local
producers, with 40% of us claiming to be passionate about
supporting local farmers. Woolworths reported that when
it switched to 100% Australian sourcing for its private label
canned goods in 2013, sales of canned fruit increased for the
first time in 3 years.
New types of grocery stores are emerging to appeal to
consumers who are emphasising fresh and local. Organic retail
outlets like Aboutlife are fitted out in natural, earthy décor
to replicate the look of farmers markets and imply a ‘back to
basics’ approach. People look to grocery stores like this as a way
of engaging with their local communities. They are looking for
a supermarket that is also a ‘lifestyle destination’, where they
can make use of in-store cafés and bars, and eat, socialise, and
be entertained.
FOODS FROM
NEAR AND FAR

26. 5150
The ubiquitous gourmet cooking shows, interest in gourmet
travel and the increased multiculturalism of our urban
communities have also contributed to Australia’s increased
palate for diverse foods from around the world, and produced
a great willingness to try new cuisines and flavours. Exactly
what we prefer to eat varies across age categories, but overall,
the range of options available and the varying tastes amongst
Australians shows a nation with sophisticated dining tastes and
consumers who aren’t afraid to experiment.
In many cases, customers hunt for more authentic versions
of traditional ethnic foods, or, in a trend which seems to be
going the other way, experiment with what have been called
‘mutant foods’ – foods which combine the cuisine of more
18-32
22-47
48-65
66+
0 25 50 75 100
Fast Food
Sandwich / Rolls
Pizza
Sushi
Salad
Crepes
Kebab
Chinese
Other
Foods most likely to be purchased in a
food court by age group
a nation with
sophisticated
dining tastes and
consumers who
aren’t afraid to
experiment.
than one country, like sushi
tacos. Recent times have seen
the introduction of cuisines
from places like Taiwan, with
tea chain outlets like Chat Time
and EasyWay, and Korea, which
has brought frozen yoghurt
chains.
FOODS FROM
NEAR AND FAR

27. 5352
As we become more passionate about experimenting with
food, ‘gourmet getaways’ have become trendy, with food and
wine ranking highly in holiday decision-making.
People are also willing to pay more for food that is perceived
to be gourmet. This goes for beverages too, with premium
coffee and teas increasingly popular. There are more specialty
tea stores and more sales of herbal, green and fruit teas. And as
coffee has become ingrained in our culture and lifestyle, cafés
have become places for socialising and business meetings. Not
only do people relish in the search for the best coffee in cafés,
but more premium options are being created for use in the
home, as we try to replicate the taste of café coffee. The likes of
Brands need to increase their Proximity to consumers by
tailoring their marketing of local products and providers.
One of the keys to the success of brands like Aussie Farmers
Direct is its sourcing of as much product direct from farmers
as possible. With sustainable grocery stores, products can enter
into the realm of ‘my world’ simply by being from a consumer’s
local community. Generosity plays a role too, as customers
look for the added value that grocery stores can provide to their
lives, over and above products.
Being Responsive to consumer preferences for gourmet,
diverse and experimental foods will help brands attract more
sales.
People are also
willing to pay more
for food that is
perceived to be
gourmet
Nespresso coffee machines
and pods have reached new
heights of popularity, and, you
guessed it – Coles, Woolies and
Aldi have released their own
alternatives.
FOODS FROM
NEAR AND FAR

28. As a society, we are busier than ever. We work longer hours
- both men and women - and our smart devices have become
extensions of ourselves, meaning we never really switch off.
Gen Y are so busy that they skip breakfast twice a week and
only half of them eat most of their meals at the dinner table.
And despite our love of all things gourmet, we don’t have the
patience to make a curry paste from scratch. In fact, 1 in 5 of us
couldn’t even name a single ingredient that goes into one.
We’re used to receiving things fast - with just a click of a
button we can order an outfit online and be wearing it within
three hours thanks to brands like The Iconic. We want the
same from our groceries. With 1 in 4 Australians doing their
shopping ad hoc and as needed, speed can be a decisive factor
when purchasing packaged goods. Whether it’s pre-chopped
vegetables or quick drying self-tan, we want products that save
us time and fit in with our busy schedules. Consumers are
Gen Y are so
busy that they skip
breakfast twice a
week
even making use of petrol
convenience stores, which,
according the Australasian
Association of Convenience
Stores, beat grocery on
percentage sales growth over
the 12 months from 2013-14.
NEED FOR SPEED

29. 56
Our obsession with health makes traditional fast food
such as McDonalds very much a ‘sometimes’ thing, but we
still want our food fast. This has seen an increase in on-
the-go options that are at the same time fresh and healthy.
Woolworths has seen great success with its in-store sushi
bars and prepackaged salads. Products that have focused on
the convenience of portion-controlled sizes and reduced
meal preparation have grown. Australians have shifted from
preparing meals from scratch to the convenience of semi-
prepared meals. We’re even willing to buy pre-cut bags of
carrots, despite the fact that they can cost between two and
four times more than whole carrots.
Despite a contraction in the café and restaurant industry
after the GFC, as consumers shifted from eating out to
eating at home, over the long term, Australians remain big
spenders on eating out. The average Aussie eats out four
times a month and spends $70 per week at cafés, takeaway
shops and restaurants, which equates to $60 billion across
the country. But the types of places where they eat has
changed. While average spend per month on fast food
increased by 23% between 2009-13, the average spend per
month on restaurant dining fell by 9%, demonstrating that
consumers have begun to prefer casual food options. There
has been a blurring of casual café outlets,
which have traditionally been based on a coffee offering,
with more formal restaurants, as consumers look for a dine-in
option that suits their needs. Breakfast has also become more
of a meal occasion through this channel.
With the trend towards casualisation, consumers are looking
for more single item menus or back to basics, comfort food
with fewer ingredients. 48% of people say that their favourite
dining experience is home-style cooking. This preference will
see restaurants continue to casualise their offering and simplify
their menus (hot dog only restaurant anyone?).
QSRs that have capitalised on convenience and meal value
have outperformed others. Franchise brands such as Domino’s
and Pizza Hut have developed online and app-based ordering
systems, which have made it easier and more convenient to
order. There is also an impact from websites that act as online
ordering portals, like Menulog.
NEED FOR SPEED

30. 58 59
Increasing numbers of online and app-based shopping
is another reflection of our desire for convenience. Apps
are seeing higher shopping frequency and conversion rate
- consumers are 5 times more likely to browse a retailer’s
products on a regular basis once they have installed an app.
P&G in the Philippines has seen success with their branded
apps. Having found that the in-store experience was the most
important moment in their consumer’s path to purchase, they
wanted to make their in-store marketers more relevant for
smartphone-savvy consumers.
Research has shown that 85% of shoppers prefer to use
their own devices to research products, and only 4% want
help from store employees, so P&G gave each of their in-store
marketers tablets and created interactive apps for 20 of their
brands to drive engagement. The apps gave information about
products and included reviews and product demonstrations.
For example, the Pantene Hair Health Care Check app allowed
consumers to specify their hair damage to receive
Desire for a more convenient way to shop has also seen a clear
trend towards Internet shopping across many categories, with
Australians who do not buy something online in an average
three-month period becoming a minority for the first time
in 2013. FMCG are no exception. Online grocery shopping
currently makes up just 1.2% of Australian supermarket
spending, but it is growing fast, with time-poor and tech savvy
consumers looking for an easier way to get their grocery shop
out of the way. Of all online shopping, the fastest annual
online sales growth from 2013-14 occurred in groceries and
liquor, with a 15.9% growth in sales.
consumers are 5
times more likely to
browse a retailer’s
products on a
regular basis once
they have installed
an app
personalised product
recommendations. As a result
of their app’s informational
features, P&G recorded a 32%
increase in the amount of
products sold by the in-store
marketers in just one month.
NEED FOR SPEED

31. 6160
Younger consumers, unsurprisingly, express the greatest
need for speed. 38% of 18-34 year olds use their mobile or
apps when shopping for food, in comparison to only 12% of
those over 35. Of those who plan to make an online grocery
purchase in the next 6 months, 56% are Millennials. Online
spending remains dominated by those between 35 and 44,
but the over 65s are catching up, with positive growth rates
often higher than those of other aged groups. They now
spend a large proportion of their online dollar (28%) on
Groceries and Liquor.
In order to have the best hope of attracting increasingly
time-poor customers, brands should be Generous in
setting up and improving online offerings. Investing in the
availability of customer service to provide ease of use for
online shoppers, and providing a range of convenient and
speedy delivery options will be important. Brands can also
exhibit Generosity through free apps and features, which
may not directly correlate to sales but improve customer’s
overall brand experience. For example, Woolworths’ app asks
for your local store so that it can tell you which aisle items on
your shopping list can be found in – clearly a time saver for
shoppers.
Brands could also exhibit Responsiveness to consumer
preferences for fast and casual options by expanding their
offering of semi-prepared meals and ingredients, and ready-
meals, which are at the same time fresh and unprocessed.
Time saving innovations for cooking will increase
convenience for busy households. Pre-chopped, washed and
packaged vegetables and salads, or frozen veggies and semi-
dried herbs, which translate to less trips to the shops, are
just some examples of convenience products. Consumers
will increasingly like to shop for entire recipes or meal plans
at once, and supermarkets should link fresh foods with
complementary products from other departments through
clever positioning. Shoppers also want to experience time
saving innovations at the checkout – both in bricks and
mortar stores (think self serve) and online.
NEED FOR SPEED

32. 62
There are other creative ways to make shopping experiences
more convenient for consumers. Coles has expanded to new
categories such as apparel, to attract consumers who want
the convenience of an all-in-one shopping experience.
Woolworths launched pop-up virtual stores in Sydney and
Melbourne CBD train stations, where potential customers
could go ‘in store’ and browse a range of product photos.
Using the Woolworths’ app to scan the QR codes on desired
products, orders were placed and finalised via the online store,
and then filled by shops close to the delivery address. Woolies
has also engaged customers with virtual stores on bus shelters
consumers
who want the
convenience of an
all-in-one shopping
experience.
and vertical scrolling
posters within train stations.
In this way, Woolies increased
its Proximity to customers –
being present in their physical
world, and engaging with
them online at the same time.
NEED FOR SPEED

33. 64
There’s one thing that consumer packaged goods have in
common, and that’s - well, packaging. It’s no surprise that
packaging has a significant impact on consumer choices, with
environmental considerations and health concerns some of
the major deciding factors.
As the environment increasingly ranks as a decision-
making factor when shopping, consumers look to reduce their
packaging footprint. Packaging that is smaller, reusable, or
even dissolvable, is on the up. In the UK, GreenBottle, an
alternative to plastic bottles made from a paper outer shell and
containing a thin plastic liner to hold liquid, offers reduced
reliance on petroleum-based materials. Pouch packaging
offers similar advantages and is being used for products
from juices to rice to readymade meals. KFC in the UK has
taken this a step further with their Scoff-ee cup – an edible
coffee cup made out of a mixture of coffee, cookie and white
chocolate.
65
0 20 40 60 80
Best before/ use by date
Fat content
Country of origin
Sugar content
Ingredient list in general
Saturated far content
DON’T JUDGE A
PRODUCT BY ITS PACKAGE

34. 66
With women increasingly in the workforce, more men are
taking on tasks that women used to dominate, such as grocery
shopping, cooking, and household cleaning. As a result,
marketers are paying more attention to the male consumer.
Consumer packaged goods companies are finding creative
ways to attract the male shopper and ease women’s concerns
that men will ‘mess up’, by, for example, using no-nonsense
messaging, a casual tone of voice and simple imagery.
Packaging is also becoming smarter and more technologically
connected. In 2014, Nestle became the first brand on our
supermarket shelves to use near field communication (NFC)
on its packaging. It used QR codes to connect shoppers with
oat recipes, developed in partnership with Woolworths Fresh
Magazine. This campaign was designed to strengthen the
launch of their new oats product at Woolworths. Nestle has
also launched a campaign called ‘Beyond the Label’, where they
use QR codes on more than 150 of their MAGGI products.
When customers scan the codes, they are taken to nutritional,
environmental and social information about the product,
67
more men are
taking on tasks that
women used to
dominate
including ingredients lists,
recipe ideas, sustainability, and
other information that they
would not be able to fit on the
physical packaging. This creates
a more engaging experience for
consumers.
DON’T JUDGE A
PRODUCT BY ITS PACKAGE

35. 68
“This type of edible
packaging is definitely aligned
with the global consumer mind-
set in terms of sustainability and
simplifying their life…
Millennials in particular want to
make sure an innovation is
functional, works and is right
for their lives”
- Shilpa Rosenberry, senior director of global consumer
strategy at Daymon Worldwide

36. 7170
Packaging can strongly influence our purchasing
decisions, whether consciously or not. Consumers
perceive products with green labels to be healthier, and
ticks and seals are subconsciously seen to indicate that a
product has met some certification criteria.
Some companies increasingly try to push legal
boundaries and loopholes in order to mislead consumers.
In 2014, the Federal Court decided that Coles breached
Australian Consumer Law by claiming its bread was
“freshly baked” or “baked today”, when in fact the bread
was partially baked in overseas factories and imported into
Australia. There are several other ways that companies
mislead shoppers too – and get away with it. Loose terms
such as healthy, premium, natural, and pure are used
to imply product benefits, without having any definitive
meaning.
While you would think that if ‘Made in Australia’
appears on a product, the ingredients were grown and
sourced in Australia, it may simply mean that at least
half the cost of making the product was incurred in
Australia. Instead, consumers should look for ‘Product
of’ or ‘Grown in’ labels, which do refer to locally sourced
goods.
Similarly, you would be forgiven for assuming that any product
described as ‘organic’ would be sourced from organic farming.
However, if there’s no certification on the product, there is
no guarantee that it has met any particular standards. Some
companies have tried to confuse consumers by registering the
word ‘organic’ as a trademark, and the ACCC recently forced
several bottled water companies who used the term organic
as part of a trademark to change their brands. A national
definition for free range is also on its way after Pirovic was
fined for promoting its eggs as free range, despite their hens
being housed in crowded barns. And let’s remember that many
consumers are willing to pay a significant premium for organic
products, and as much as double for eggs that are free range.
DON’T JUDGE A
PRODUCT BY ITS PACKAGE

37. 72 73
Other products claim to be superior, without specifying what
they are comparing themselves to. For example, Fountain’s
Smart Tomato Sauce’s label states it has 25% less added salt,
but on closer inspection, an asterix tells us it has 25% less
added salt than a regular Fountain Tomato Sauce 500ml
bottle. It still contains 410mg of salt per 100ml (while The
Heart Foundation defines low-salt foods as those with less
than 120mg per 100g). Similarly, Sun-Rice Naturally Low GI
White Rice states it is ‘cholesterol free’, which is actually true
of all rice. It is also low GI, but basmati rice from other brands
would have a similar GI. To stay relevant to consumers, brands
And as the ACCC cracks down on misleading consumer
packaging, brands should be aware that it could cost them more
than just a hefty fine. Consumers will become increasingly
skeptical of packaging claims and fatigued with brands that
are perceived as inauthentic. Brands should be Generous
in their provision of accurate details about their products.
Consumers are looking for brands who are trustworthy, honest
and even human. Brands that introduce frankness will be
more attractive. In fact, one study found that the number one
thing consumers want from brands is that they communicate
honestly about their products and services.products claim
to be superior,
without specifying
what they are
comparing
themselves to
should be Responsive to their
demands for environmentally
friendly packaging, and
Generous in their investments
in new styles of packaging which
benefit the environment.
DON’T JUDGE A
PRODUCT BY ITS PACKAGE

38. 74
In our multi-device, technologically connected world, we
are consuming less traditional media - like radio, TV and
newspapers – than ever before. Consumers are no longer
passive recipients of brand communications broadcasted on
TV or sent through direct mail – they are able to research
brands themselves to find out if the claims they are making are
true, and can be a part of a conversation with other potential
buyers.
Even if they are not always purchasing online, consumers
are using digital to help them select products and conduct
research, both in-store and at home. As many as 60% of
Australians are using a combination of online and traditional
stores to fulfill their grocery needs.
Audience attention may have fragmented, but that does not
mean there is no way for brands to reach consumers. In
fact, marketers have more avenues than ever before to reach
consumers. The challenge is that consumers flit between
channels easily, and they want brands to transition between
their worlds just as easily. Customers want an enjoyable end-
to-end experience, not just a product.
75
OMNIPRESENCE

39. 76
“Multi-channel is an operational view –
how you allow the customer to complete
transactions in each channel. Omni-chan-
nel, however, is viewing the experience
through the eyes of your customer, orches-
trating the customer experience across all
channels so that it is seamless, integrated,
and consistent. Omni-channel anticipates
that customers may start in one channel
and move to another as they progress to a
resolution. Making these complex ‘hand-
offs’ between channels must be fluid for the
customer.”
- John Bowden, Senior VP of Customer Care at Time
Warner Cable

40. 78
To be more present in customer’s personal, social and
wider lives, brands need to be using not just multi-channel,
but ‘omni-channel’ campaigns. This means engaging with
consumers in-store, online and through on social media, and
offering customers the ability to shop where they want, and
receive their purchases whenever they want.
FMCG companies need to take advantage of the multiple
opportunities to connect with consumers to create a better
in-store experience, as well as completely new shopping
experiences.
Pre-shop, brands can use channels such as social media to
engage consumers. Social media, which lives between our
second and third dimensions of Proximity, is increasingly
driving our food choices, as more people follow restaurants
and chefs, as well as major brands and even supermarkets.
Coles currently has over 800,000 Facebook fans and Woolies
over 700,000. Social media is becoming a low cost alternative
to traditional marketing channels, with brands able
79
At the sales or transactional level, social media can also be
useful. Aussie Farmers Direct, for example, has 10 staff
monitoring Facebook and supplying answers to customers’
queries in real time. During their shop, customers want an
easy and enjoyable experience. As online retailing continues
to grow, providing brand experiences in-store will become
even more important. Two thirds of Australians view grocery
shopping as an opportunity to try new innovations, which they
feel add to their shopping experience. Shops should respond
to consumer demands by making the shopping experience
personalised and interactive. New distribution models like
pop-up shops, virtual shops, ‘endless aisle’ in-store kiosks
for customers to shop for harder-to-find products, and the
grocery store as a lifestyle destination will continue to grow.
After their purchase too, customers want ease and enjoyment
of use and the satisfaction of their expectations. People are
prioritising experiences, and in return, brands are making
products fun, through games or customisation. For example,
India’s Lifebuoy colour-changing handwash goes from white
to green after 10 seconds of use, and Brazil’s Nestle Fast Suflair
Shake becomes more creamy the longer you shake it, effectively
customising it according to taste.offering
customers the
ability to shop
where they want,
and receive their
purchases whenever
they want.
to reach out to a community
of users, as well as their wider
communities. Brands are
leveraging social media for
co-creation, engaging with
consumers on product designs.
OMNIPRESENCE

41. 80
Coca-Cola Amatil has had great success with omni-channel
marketing in Australia. With a product range that includes
coffee, water, juice, tea, fruit snacks and alcohol, as well as the
famous trademark Coca-Cola brands, they have found ways to
use an omni-channel strategy to communicate more effectively
with their customers, drive brand preference and make more
sales. For example, they use digital screens in pubs and clubs
to display advertising for their products, with rich content
delivered to screens via the Internet. The content is able to be
dynamic, keeping up with current promotions, competitor
activity or even changes in the weather – something a paper
poster could never do. The screens also have built-in wireless
routers, which Coca-Cola Amatil uses for Proximity-based
marketing.
They provide deals such as ‘Buy a Jim Beam and get free Wi-Fi
for 30 minutes.’ This has seen sales increases of anywhere from
20%. By entering the Wi-Fi hotspot, customers also have the
opportunity to opt in to a digital relationship with Coca-Cola
Amatil, where they will receive relevant offers based on their
individual requirements and Coke will gain valuable customer
profiling and data which they use to find out how, when and
with what other products consumers are buying Coke products.
81
OMNIPRESENCE
The growth of channels also means data is available to retailers
from more touch points than ever, providing brands with
more opportunities to be Responsive and create personalised,
individually relevant offers. Consumers will indulge in
products uniquely suited to their tastes, interests and values.
Using social media, online shopping, and data at the point
of sale through means such as loyalty programme cards,
supermarkets can create long-term individual customer
relationships. They can get to know their consumers
intimately, and suggest items tailored to customer preferences
via email. The value chain is becoming more intimate, as
consumers share more information with retailers, but expect
more in return. Sophisticated data analysis will help retailers
be Responsive to customer’s desires, needs, and purchase
history and provide more relevant offers. Apps can sync with
loyalty programs in-store, to get people pulling their phones
out while browsing the shop, and allow brands to provide
recommendations and discounts in real time.

42. 82
Suppliers can take advantage of technology and increased touch
points to create their own market presence, as well as to listen
out to shoppers in their niche across many channels, to spot
trends, discover what they are looking for and respond to their
needs - and let them know how they have responded.
Retailers, cafés and restaurants should also offer experience-
enhancers such as free Wi-Fi. Not only does this give them
opportunities to deliver advertising or special offers to people
that connect to the service, offer benefits to those who share
their experience on social media, and gather data about their
spending habits, but it is also an act of Generosity which
customers appreciate, and could attract people who might not
have otherwise engaged with the brand. Engaged consumers
will comment on Facebook pages, watch branded YouTube
videos, give their email addresses and enter competitions. If
83
discover what
they are looking
for and respond to
their needs
they are engaged enough
through interesting,
informative and fun content
on a range of platforms, even
a promiscuous consumer may
choose to ‘go steady’ with one
particular brand
OMNIPRESENCE

43. 84
The world of FMCG is complex. Consumers have diverse and
often contradicting demands. But what analysis of these trends
has confirmed is that brands who focus on increasing their
Generosity, Responsiveness, and Proximity have and will create
moments of awe, wonder, surprise and delight for customers
– which just might translate into a bit of magic for the brands
themselves.
85
CONCLUSION

44. 86
Both quantitative and qualitative research methods were used
to create this report. A broad survey was conducted of available
statistics, information, discussions, research papers and articles
on the FMCG industry. While there are many current trends
in the FMCG arena, these trends were chosen to be included
in the report based on the impact that they are likely to have
on the industry in Australia in the coming years. Further
research was then undertaken on the wider cultural and social
background of each of these shifts, and how they came to
enter the FMCG field. Critical analysis provided suggestions
for areas of focus for companies in order to respond to the
current landscape.
METHODOLOGY
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www.newrepublique.com
or contact us on: +61 2 9332 2218

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