AUCKLAND, Tuesday:JCDecaux New Zealand has released the results of its latest IRIS audience research, which reveals consumers are scrutinising FMCG spend as the cost of living rises and household budgets are put under pressure.
JCD NZ strategy & insights manager Victoria Parsons said: “Our research found that New Zealanders are tightening the purse strings, with 91% noticing household budgets being stretched and a quarter of respondents reporting that they are actively cutting back.
“For New Zealanders noting reduced disposable incomes, grocery shopping is an easy place to make cuts. Shoppers are increasingly paying close attention to what goes onto lists and intro trolleys. It is interesting to understand consumer perceptions as to what is a necessity and what is a luxury; we see consumers justifying brand purchases as necessary for quite personal reasons.
“Everyday luxury brands are most at risk to spending cuts.”
“Out-of-home can be a powerful platform to impact and influence in-store and online shoppers throughout the day while they are mentally planning their shopping lists.
“Brands deemed an everyday luxury such as are most at risk to spending cuts.”
JCD NZ sales director Gary Rosewarne said: “What consumers deem an everyday luxury is interesting.
Respondents told us items such as coffee and tea, bread, self-care and dairy are non-negotiable in terms of buying favourite or quality brands, whereas for canned and frozen goods, and cleaning products, people are shopping the category based on price.
“Luxury does not mean premium, it means moments where you expect quality FMCG experiences and won’t trade down – you justify the price premium.”
“The research also reveals that the emotion or promise of brands can overcome price sensitivity. Consumers seek validation to define which brands remain as necessities on shopping lists. Brands without meaningful quality cues or unique brand benefits may be swapped out for cheaper alternatives.”
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