There are some interesting findings in this report. Consumers are very interested in being able to find what they want in stock. This partly explains the success of superstores, and is one of FEET's competitive advantages over its competition. It also points out the continued shift toward more casual clothing and footware. The implication is that this is a social change, and not just a temporary fashion quirk.
NEW YORK, Feb. 2 /PRNewswire/ -- Consumer optimism is high for 1998, according to KSA's annual Consumer Outlook(SM) survey. A full 77% of consumers, the highest number in any of the last four years, say they are
optimistic about a bright 1998.
The survey reveals, however, that these same consumers who are feeling positive about the future are also more discriminating about where, and on what, they will spend their money. "Consumers are throwing down the gauntlet to manufacturers and retailers saying 'to open my wallet, you've got to invest the time and resources to give me what I want!' Becoming consumerized(SM) must be a top priority for this industry in 1998. That means developing true consumer insights by investing in information and processes that bring you closer to the consumer said Adelle Kirk, Manager of KSA's Consumer Marketing practice.
Survey results indicate that manufacturers and retailers who consistently meet consumers' expectations for quality, service and hassle-free shopping win their loyalty. Interestingly, the number of consumers who say they are "very loyal" to certain stores is at the highest level since 1993 -- a full 69%. Though shoppers are more discriminating about spending, they will pay a slightly higher price in stores or for brands that meet their value criteria.
Consumers are sending a clear message about what they want, but it appears manufacturers and retailers are taking a lot longer to hear them. Consumers are looking for a balance of price, quality, service, time, energy and a positive shopping experience, but they continue to be dissatisfied with their store shopping encounters.
The most important factors to consumers in choosing where to shop are 1.) in-stock, 2.) easy to find merchandise, store cleanliness, 3.) confidence in the merchandise and 4.) ease of shopping. Yet almost half the time, shoppers leave stores empty-handed because they cannot find what they want in the right style, size, color, fit or price range. They also express frustration with long check-out lines, and a great majority of consumers, 80%, say they think retailers do not care about their customers as much as they used to.
Lack of time continues to be a critical factor coloring consumers' attitudes toward shopping. In 1997, consumers spent less than one hour a week apparel shopping for themselves. Over the last few years, consumers have sliced shopping time thinner and thinner to weed out more time for family and work. They want to spend the leisure time they do have on activities that are fun and provide a pleasant experience. Shopping, it seems, does not fall into that category. "While some retailers like Old Navy and Barnes & Noble combine experience and fun into their venues, most are just riding the wave hoping consumers won't notice," said Kirk.
KSA's survey also reveals that consumers' spending priorities have shifted over the past few years. Saving money has now become the number one goal, as a large segment of the population is now faced with retirement and college costs for children. After investments and savings, disposable dollars go to vacations, with a trend toward shorter and more frequent getaways, and to dining out.
But the good news for apparel manufacturers and retailers is that, according to the KSA Outlook(SM), casual skirts and pants for women and jeans for men rank among the top five categories for consumer spending in 1998.
Consumers are embracing the versatility and comfort of casual dressing, a trend that has continued to gain ground over the last five years. The survey also found that 90% of consumers prefer versatile apparel and 88% choose
comfort over fashion.
In addition, consumers expect more than just convenience and entertainment, they have big dreams for the future. They also expect the industry to bring customization to the masses in both product and service. The call for product customization stems largely from consumers' current dissatisfaction with the fit of apparel and footwear. Consumers in all age groups complain that they cannot find clothes that fit well (a full 70% of women and 50% of men). Only 29% of consumers are satisfied with the fit of most apparel and 36% with the fit of footwear. Given this general dissatisfaction with fit, it is no surprise that more than a third, 36%, of respondents say they would be willing to have certain apparel items and footwear custom made and they will pay more for it -- from 12% to 15% for certain products.
Consumers are also choosing new venues for shopping. E-tailing(SM) --electronic commerce -- continues to advance as more and more consumers have personal computers at home. This year, 59% of respondents reported owning a home computer, up from 51% last year. Thirty-nine percent say they have access to on-line services through home or work. Even more interesting is that more than a quarter, 28%, say they go on-line one or more times per week. For many of them that is more often than they walk into a store. Further, 84% of consumers who have made on-line purchases say they were satisfied. The survey suggests that on-line shopping, still in its infancy, will grow substantially in coming years.
For more information on Kurt Salmon Associates or for a copy of KSA's Annual Consumer Outlook(SM) Survey, please contact Cara SaoBento in KSA's NY Communications Department -- cls@kurtsalmon.com.
Kurt Salmon Associates is an international management consulting firm specializing in the retail and consumer products industries.
SOURCE Kurt Salmon Associates
CONTACT: Cara SaoBento of Kurt Salmon Associates, 212-508-8320,
fax: 212-508-8497, cls@kurtsalmon.com |
