How retailers and brands are adapting to the changing lifestyles of consumers
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In 2018 we published our Wellness Trends report, highlighting that as technology advances the levels of personalization required to attract and retain
shoppers will increase, with retailers looking to brands to develop interesting concepts that can help strengthen their position as expert wellness providers. At the same
time, retailers are developing their own solutions, targeting wellness minded shoppers. This deck examines how both brands and retailers alike are reacting to address this changing need among consumers, and ultimately capitalize on this growing trend.
The Opportunity: Wellness as a Lifestyle Choice
Understanding wellness and how it affects the daily lives of consumers is vital for brands looking to explore this lucrative industry. Wellness is a concept that needs a broad range of products, services and solutions to support the needs of consumers actively choosing to lead wellness minded lives. As a concept, wellness spans categories such as travel (wellness tourism), the spa industry, beauty and healthy eating to name a few. As a result there are great opportunities for retailers and brands to explore wellness in new contexts beyond their core categories, and to meet new consumer needs in new unexpected places. As a result, those that can look beyond their core offerings, and blend in wellness to create products and services that support the wellbeing of shoppers, will be the winners of tomorrow.
Today, this primarily happens in four ways. From a brand perspective, companies are either (1) developing completely new brands outside their core category, or (2) creating brand extensions with a wellness message. Retailers on the other hand are (3) creating new store concepts, or (4) implementing new offerings and services into existing stores to drive footfall.
SUMMARY OF KEY LEARNINGS
Health-conscious and environmental-friendly shoppers are no longer discrete categories, but rather becoming the norm. The masses want to be able to continue to enjoy the brands they love, without making any sacrifices
New wellness-focused brands are emerging constantly and shoppers increasingly want products that are both good for them and the planet. FMCG companies need to be nimble enough in product development to create new products to meet these needs.
New stores seek to capitalize on the increased need to fulfilling shoppers’ health and wellness requirements.
Suppliers need to define their health and wellness strategy, and seek the lead in accompanying retailers in their efforts to differentiate.
Suppliers need to better understand how the growth strategy for bio categories impact the store, and other categories of their retail customers.
Suppliers need to seek alternatives for product display, and balance their listed product portfolio to seize a share of the growth.
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