Experimentation: Consumer & Innovation Trends

Brands must stay relevant to consumers over time. This requires understanding their propensity to try new things, and what triggers switching behavior. This research finds that experiences outside of an immediate or known frame of reference are increasingly desired. But choice is also characterized by the careful consideration of risk, and desire to simplify decision making by sticking to routine

• Pinpoint over 80 marketing and innovation 'platforms' that can be employed to entice new product trial. See how they relate to 'on-trend' examples
• Access a unique blend of consumer and innovation insight to understand consumers propensity to experiment and what can be done to better attract them
• Trend overview and sector specific analysis covering food, non-alcoholic drinks, alcoholic drinks, personal care, household care, packaging and retail

A "cosmopolitan mindset" is especially apparent in food choice. It broadens consumers' "sensory repertoire," i.e. exposure to, and acceptance of, new concepts, cuisines, flavors and scents. Globally, 43% acknowledge this by agreeing with the statement, "my taste in food has changed as a result of exposure to foods from other cultures"

Simply making good products is not enough anymore to drive growth. This is because consumers connect with products that are, in some way, unique. For long-term growth, CPG companies must give consumers new reasons to buy. This often depends on factors beyond core product features. Marketing innovation can spur a re-evaluation of preferences

70% of global consumers say experiencing new things is important to them. Novelty offers a pleasant escapism, or reward. Such sentiment makes consumers more eager to branch out from their routine, and experiment with new and unusual sensory attributes (i.e. flavors and scents). Indeed, "new world" quality cues put more emphasis on novelty.

• To what extent to do global consumers experiment and show interest in new products across the major FMCG sectors?
• What is the 'Experimentation' sub-trend? How does it impact consumers? What will it mean for core product and marketing innovation in my sector?
• What is the balance of consumer opinion towards a range of 'Experimentation' influencing issues? How does it vary by country and demographics?
• What are the key mega-trends, trends, and sub-trends that are shaping the consumer and innovation landscape. Where does 'Experimentation' fit?

Table of contents

OVERVIEW
•Introduction
•Summary
Sales densities suffer as a result of store expansion;
Stores get a new look, improving the customer shopping experience;
Expands online offer …
… but development of a multichannel proposition will be difficult;
Share of the value market slips as competitors perform better;
Impulse buy model means brands must be super-relevant as competition intensifies.

TK MAXX
•Online development & store refurbishments become a focus
•Recent key events
Slows down expansion and focuses on store refurbishments and online
•Proposition & customer profile
•Financials
Space growth continues to outpace sales
Current trading
•Space
Productivity becomes tougher
•Space allocation
•Sector performance – clothing
Growth in clothing to outperform total sales in
•Market shares
•Outlook
Growth gets tougher as consumers are less impulsive

METHODOLOGY
•Verdict Retail company briefing
•Financial information
Market size calculation
Sales density calculation
•Further reading
•Ask the analyst
•Verdict Retail consulting
•Disclaimer

TABLES
•Table: TK Maxx company information
•Table: TK Maxx store refurbishments in
•Table: TK Maxx retail proposition
•Table: TK Maxx (including HomeSense) UK key operating statistics 2007 – 12e
•Table: TK Maxx (including HomeSense) trading record 2002–12e
•Table: TK Maxx (including Homesense) UK store profile 2002–12e
•Table: TK Maxx space allocation
•Table: TK Maxx UK clothing sector sales 2007e–12e
•Table: TK Maxx UK clothing sector growth rates 2007e–12e
•Table: TK Maxx clothing and value clothing market shares 2007–12e

FIGURES
•Figure: TK Maxx entrance
•Figure: Clothing visitor share by demographic group
•Figure: Footwear visitor share by demographic group
•Figure: TK Maxx (including HomeSense) UK sales and y-o-y change to January 2007–12e
•Figure: TK Maxx (including HomeSense) UK operating profit January 2006–11
•Figure: TK Maxx space breakdown
•Figure: TK Maxx clothing sales mix
•Figure: TK Maxx clothing sales to January 2007e–12e
•Figure: TK Maxx clothing sales per sq ft to January 2007e–12e
•Figure: TK Maxx clothing, mens, womens, childrens and accessories market shares 2007–12e
•Figure: TK Maxx value clothing market share 2007–12e

Related research categories

By sector: Trends, Consumer (in Trends)