“Value for money” has often been a phrase casually associated with cut-price and discount stores. However, GlobalData’s 2018 Q3 Global Consumer Survey shows almost half (46%) of consumers now relate this term with quality products and ingredients.
Consumer perception 2019
Why is this?
One aspect is the emphasis that high-end supermarkets place on marketing the alleged superiority of their offering. Waitrose is an example of a premium supermarket chain that pursues “mindful” consumers, that seek vegan options for instance. Emphasis is placed on ingredients that resonate with perceptions of higher quality – such as organic and free-range sourced products.
On the opposite end of the spectrum are German discount chains, Aldi and Lidl; once synonymous with budget-conscious customers for rock-bottom prices. However, both have grown extensively in recent years, largely due to the adoption of aggressive private label strategies. This is coupled with the targeting of mid-income consumers through wider selections and more upmarket offerings. These stores that traditionally represented value for money have redefined its very meaning as price-conscious consumers seek sustainable quality food and drink. These are most typically young adults, such as millennials and Generation Z.
In the face of weak European growth and the prospect of Brexit, younger consumers in particular, are prioritising purchasing power over premium. Private label has shrugged off its perception as a cheap alternative, with mainstream expansions demonstrating how low prices do not necessarily correlate with reduced quality.
What does ‘good value for money’ mean when you are buying food and drink?
Source: GlobalData 2018 Q3 Global Consumer Survey