IRI Point of View

4/20/2009
Dissecting the Downturn Generation: Recognizing and Leveraging Permanence in Today’s Transformational Economy

Experts have made so many prognostications about the recession’s duration that at least a few are bound to be correct. But the central question for the consumer packaged goods (CPG) industry focuses not on when the recession will end, but how shoppers will behave five, 10, and 20 years into the future. IRI forecasts that today’s shoppers will adopt many of the practices Depression-era shoppers implemented both to weather the recession as well as to keep a close eye on spending long after the recession ends. IRI has dubbed these shoppers the “Downturn Generation.”

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2/23/2009
Discovering and Leveraging the Real Truth on Shopper Behavior in the New Transformational Economy

Today’s economy and the profound transformation occurring are perhaps the most widely discussed topics in the last decade. Consumer packaged goods executives at all levels at both manufacturers and retailers feel first hand the effects of rising food commodity prices, the consumer’s shrinking wallet, spiking energy costs and the other symptoms of today’s economic malaise.

Also clear are shoppers’ behavioral changes as a result of the ongoing economic transformation. Consumers are turning to private label, substituting hamburger for steak, opting for smaller portions and following other budget-stretching strategies discussed in multiple IRI Times & Trends Reports issued throughout 2008. Less obvious, however, is when the economy will level off and start to grow again, as well as the time necessary for consumers to regain their shattered confidence.
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12/9/2008
Re-Engineering the Marketing Function

This new dimension of shopper insight deepens knowledge surrounding the behavior of each and every shopper as they challenge traditional retail and marketing execution.

The ship that represents the American consumer is in peril. Buffeted by rising food and energy prices, uncertain credit markets and now a weak economy, shoppers are watching the lives they have carefully built over many years be threatened, both at home and at work.

Yet, consumers will spend this holiday season. Recent IRI research notes a renewed emphasis on family, friends and institutions that provide “comfort” will translate to shoppers opening their wallets for the holidays. They are tired of bad news and have decided to enjoy themselves. Two-thirds state they will buy the same or more gifts this year than in 2007, and 63 percent will spend the same or more on those gifts.
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12/2/2008
Successful Pricing Strategies

Today’s difficulties present new opportunities for manufacturers and retailers that gain the best information.

Americans are struggling to make ends meet in the current economy. They will continue to do so throughout 2009. We are in—and will continue to be in—a very challenging economic period. Foreclosures, bailouts, and the skyrocketing costs for food and energy are leaving consumers with empty wallets and heavy hearts. Despite the fact that consumers are resolute to open up their wallets during the holidays (see IRI’s new report Rethinking Retailing: 2008 Holiday Season Insights and Recommendations, October 2008), once the holidays end, shoppers will face continued price pressures, credit instability, and job uncertainty that has the potential result of a weakened long-term CPG manufacturer and retail sector. Unlike some market challenges, today’s difficulties present new opportunities for manufacturers and retailers that gain the best information, develop new and innovative strategies and act quickly.
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9/24/2008
Tough Times Create a Revival of the Dining Room

As a result of economic pressures, recent IRI research has found that many consumers are having difficulty affording their groceries.

Gasoline more than $4 per gallon and rapidly rising food prices have created severe, negative ripple effects throughout the U.S. economy, but they have also created positive results, some obvious, some more nuanced. A renewed drive for alternate energy sources, an increased
emphasis on conservation and recycling, and greater interest in addressing global warming are among the most obvious, new behaviors. A more subtle result is a revival of the family dinner, complete with home-cooked meals featuring fresh ingredients and increased spending on “home luxuries,” such as wine to accompany dinner. More than 60 percent of consumers reported they are visiting restaurants less often than they did as recently as January.
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