PRIVATE BRANDS & THE JOYMENT TREND

The world is in flux, shifting from geopolitical incidents to unexpected climate disasters, pandemics, and social revolutions. These events have a direct impact on the retail environment, affecting not only the rising price of commodities and the availability of products but also a decrease in consumer purchasing power. Coupled with the current inflationary climate, worry becomes the barometer for the levels of stress consumers have to deal with both physically and mentally.

GLOBAL VIEW

In times like these consumers turn to retailers and brands to find solutions that offer the balance they crave – to help them find the contentment sweet spot and the state of well-being around the feelings of comfort, nostalgia, peace, joy, and playfulness, coupled with the reassurance that positive experiences bring. Revealed poignantly during the peak of the pandemic with 60% of global consumers purchasing more comfort foods such as ice cream and confectionary¹.

Herein lies the opportunity for brands and retailers to explore a wide range of approaches working around the five senses, to deliver emotive solutions to their consumers that include flavours, textures, and colours as key product elements for consideration.

While 79% of Italian women who use cleansing or caring products on their face, feel that their routine helps relax them and relieve stress².
In the US, Target’s Good to Gather in-house brand launched back in 2019 and ahead of their time, offers quality, convenient food that is bursting with flavour - “fantastic value, all the good stuff you love without artificial flavours”. There is the importance of leading a healthy lifestyle on the one hand but also a partnered approach
to pricing on the other.

Daymons Global TrendwheelTM a proprietary forecasting tool, identifies, defines, and tracks the evolution of global consumer behaviour to help navigate changing retail landscapes. One of the key mega trends currently under the spotlight is the concept of JOYment that takes consumers on various paths of discovery - sensorially, through learning new things, taking part in interactive experiences and even, the element of surprise. Key considerations that will influence purchasing in the short and long-term.

Food for example affects pleasure and reward centres in the brain producing dopamine neurons that strongly influence wellbeing,
while purchases of life’s little luxuries allow people to unwind and relax. Sugar helps relieve stress by lowering levels of cortisol – making tucking into one’s favourite chocolate bar an event in itself. In the UK, 47% of consumers claim that cakes are an affordable luxury when on a budget².

Indicated in a recent report where 70% of consumers admitted they felt that prices for food and beverages have risen since mid-2021² - with the 2008-2009 global recession not even a distant memory. In 2008 despite the global pinch, Lidl successfully launched their Deluxe brand, giving consumers the opportunity to enjoy premiumquality products at lower prices.

For 68% of Middle Eastern and African consumers, how enjoyable or unique the product or service is, will often, to always impact product choice ᶟ. That said, consumers much like their global counterparts have become more price sensitive and reaching financial stability is a factor that is a key consideration as household incomes fell dramatically as a result of the pandemic. 69% of MENA consumers believe that the way they live has changed for the long-term due to COVID-19ᶟ.

With 57% of Saudia Arabian consumers and 43% of UAE consumers expressing concerns around personal finances². At the same time, in January of this year it was reported that 94% of people in the UAE are looking for new experiences to make them smile and laugh⁵.

Private Brands, aligning with the JOYment trend are taking centre stage such as Pick ‘n Pay in South Africa who launched their premium house brand, Crafted Collection. The newly introduced range includes infused olive oils, vinegars, preserves, and snacks serving a middle to top-end consumer who relates to flavours and feels confident using them. It is a sophisticated yet “mainstream premium” offering with decent price points. Woolworths South Africa added sweet potato churros with salted caramel to their Private Brand range. Considered an impulse category driven by emotions – this sweet and sticky sensory delight adds a new layer of joy with this unusual ingredient pairing.

So too, JOYment can be positioned around the shopping experience for consumers. In Carrefour UAE, Tokinomo a merchandising retailtainment solution was introduced that uses interactive shelf advertising robots, incentivising in-store promotions from drinks to detergents, coffee, and beauty products.

Retailers and brands should enable experiences that not only fulfill basic needs but also allow consumers to explore the world through these
joyful moments. A huge opportunity to connect emotionally to bring positivity and purpose to the lives of shoppers. As brands and retailers move to develop products and services that embrace the JOYment spectrum, the following considerations will guide the process:

(1) From the spectrum that JOYment offers, consider which one(s) are the most meaningful for customers and are aligned with the retailer and brands positioning in the market.

(2) Use Private Brand as an instrumental tool to bring affordable joy to shoppers.

(3) Run an assessment of current offers to identify products that can be promoted immediately to enhance the JOYment factor for shoppers, as well as other opportunities that could be developed for differentiation.

(4) And lastly – exploring experiential retail to create unique shopping moments that offer memorable, immersive, interactive, and shareable experiences.

Sources: ¹ FMCG Gurus 2021, ²Mintel, ᶟGlobaldata Consumer Survey Q1 2022, ⁴EY, ⁵Oracle