‘FMCG brand managers are facing an unprecedented and almost overwhelming combination of challenges, which are coming at them faster than ever. We have labelled this phenomenon the age of progressive FMCG – political and social tensions, culture wars, gender wars, warnings of impending environmental disasters, the obesity crisis and the collapse of trust in traditional media and other forms of authority. It makes for a darkly dystopian mix.‘ according to a report by FINN, a communications agency.
Despite all this change, FMCG companies continue to homogenise shopper characteristics by generational cohorts for different markets. While this worked well 30 years ago, when each generation had its own signature characteristics, today, this has changed.
Patterns across generations
These days, due to technological advances, there are similarities in shopper behaviour across generations that could be used to categorise shoppers rather than relying on generational similarities.
For example, each generation has people who adopt technology early. Not only that, but Baby boomers needed to undergo a ‘crash course’ in ecommerce and social media during the pandemic for everyday shopping and to keep in touch with their family.
As a result they found that e-commerce is a far more convenient channel for their shopping needs than travelling to stores. This is especially so for baby boomers who maybe mobility constrained & for those baby boomers living in emerging markets, where proximity to stores and traffic are deterrents to shopping at stores.
Another commonality across generations is the impact of price. While only 73% of Baby Boomers considered price a key factor influencing their purchasing decision vs 78% of Gen Z, the delta between the two is not significant.
Consumers across generations love a bargain, with 75% of both millennials and baby boomers agreeing that they’re more likely to purchase if they have a coupon or loyalty discount. For more information on multi generational retail strategies, read this report.
Pre pandemic studies on FMCG now out of touch with consumers
Most studies on shopping preferences and styles of the different generations were done pre-pandemic. These are now of out of sync with the consumers of today, and that includes baby boomers and Gen Xers.
A recent 2022 study by Hubspot on how each generation shops shows more similarities that differences between many of the generations. While 50% of Gen Z shoppers said that a brand’s ESG initiatives are important to them, 35% of Baby Boomers also said the same, with Millennials at 41%.
While only 25% of Baby Boomers say that ESG initiatives by brands influence their choices, 71% of those who agree want companies to take action on Climate change.
The key takeaway is that consumers across generations are concerned about similar things. The only difference is the percentage of each generational cohort.
Today, we live with spiralling inflation, geopolitical conflicts and the ever present threat of another pandemic. These uncertainties are impacting consumption choices yet again.
Perhaps it is time to regroup consumers by how they discover products & shop and what features/benefits influence their choices rather than relying on generational similarities to target consumers.