The off-premise liquor industry in Australia has reached a vital crossroads.
The market is experiencing a decline in shopper satisfaction that demands attention from retailers and suppliers alike. The behaviours of younger generations must become a bigger focus, since they are no longer simply passing fads or trends. A recent Shopper Intelligence webinar explored these points and found that 80% of liquor professionals believe there’s scope for their business to collaborate more effectively with trading partners and put shoppers at the heart of their planning.
Responding to occasion-based shopping
Some used to believe that only the very youngest liquor shoppers were heavily focused on buying for an occasion and for same-day consumption. Today, however, we know these habits are baked-in and that even into their thirties, shoppers’ habits are often shaped far more by occasions than by stocking up.
Shoppers aged 18–34, for example, are only marginally less likely to buy liquor for consumption with a specific meal than they are to buy for general stock up purposes, yet how much attention does this receive in the average category today?
Recognising how important it is to provide a range of diverse options for various moments, it’s crucial that the industry address both its pre-store communications and the way products are delivered in-store. Social occasions are very much back on the agenda right now, but the focus often remains on messaging around authenticity and premium ingredients – even though these aspects have declined fastest in importance since last year at an all-categories level.
Balancing quality, value, and service
Inevitably, given where we are in the economic cycle, many shoppers now have a keener eye on value than they did 12 months ago. More people are planning to buy the brand that represents the best value for money when they enter the store, and that shift is most pronounced among shoppers under 34. At the same time, the proportion of liquor shoppers willing to consider buying lower-priced brands they’re unfamiliar with has also risen, especially within the 18-29 age range.
Of course, these shoppers are not willing to forego taste and quality in the drinks they buy, but they are looking for help to identify what makes for good value in the off-premise. If you're a retailer, it's worth noting that the two aspects of delivery shoppers say have increased in importance this year are location – in other words, making it easier to find where products are in-store – and staff helpfulness. All of this underlines that plotting a path beyond this crossroads in liquor will take greater levels of partnership and collaboration between retailers and suppliers.
Identifying price-sensitive segments, shifting the emphasis in marketing to leverage occasion-based shopping, and making sure the story is consistent and coherent all the way through to the shelf, will be the differentials that set businesses apart in the coming 12 months.
Change is inevitable, and as always, some will wait for it to come to them. Others, however, will seize the moment and be among the 20% who get buy-in from their trading partners i.e. the 20% who have the most influence, alignment, and success with their customers.
Question is, which group do you want to be in?
For more shopper insights and behaviours to help you win buy-in from your trading partners, contact David Shukri at Shopper Intelligence.
Shopper Intelligence is a Commercial Partner of the Drinks Association.