In Euromonitor's newly released webinar, Amrutha Shridhar, research consultant for consumer insights, explains that a 'consumer type' categorisation is much more helpful to brands and companies than basic demographic categorisation because the latter can give a skewed view of consumers' lifestyles, daily habits, and decision drivers.
This year’s report – generated through Euromonitor's global lifestyle survey (Jan-Feb 2020) – outlines a total of 11 consumer types. The report also provides insight into each consumer type's path to purchase, and how their purchasing decisions might have been affected by COVID-19, to help companies create targeted marketing and communication strategies.
Self-care aficionado 5%
Interestingly, this year's list of consumer types includes a new-comer which has evolved from the ongoing trend for natural and preventative health care measures.
Making up 5% of the global population, the Euromonitor report states the 'self-care aficionado' places a lot of importance and focus on themselves, therefore saving much of their purchases for products and services that will benefit their physical and mental wellbeing.
Shridhar explains: "The self-care aficionado prioritises their health and wellbeing by taking part in exercise regularly and placing a lot of importance in vitamins, supplements and balanced diet.
"They are highly likely to prioritise time for themselves, close friends and family and seeking spirituality with their daily experiences. Mostly, they are content with their lives and they do not feel stressed or pressured about their personal image.
"With their focus being on their own health and wellbeing, this consumer type is less likely to concern themselves with wider global and political issues. Though they are unlikely to spend much on the latest trends, or materialistic possessions, they highly prioritise spending on international travel and cultural experiences."
Looking into how this consumer type is likely to be influenced by the COVID-19 pandemic, Shridhar says their value on healthy living and healthcare is likely to increase further and they will likely be some of the early adopters of new preventative healthcare measures.
The impulsive spender
Referring to consumers who enjoy shopping and love to find a bargain, the impulsive spender makes up a sizeable 16% of the global population, according to the report.
Driven by low prices and quality, they are open to purchasing private label products as well as brands.
Shridhar explains: "They are seeking convenience in their lives and are willing to pay to achieve this, therefore brands offering a shopping experience across several channels tailored to the consumers’ needs are likely to resonate with these consumers.
"Post COVID-19, these consumers are likely to continue to place importance on experiences and convenience and value for money. They are highly likely to make purchases from brands with easy online interfaces and who clearly outline price and free shipping.
“Brands need to offer these consumers convenient and easy-to-use shopping experiences to facilitate quick purchases. Clear promotion of prices and discounts specifically highlighting value for money and bargains will facilitate impulse purchases."
The minimalist seeker - 13% (of the global population)
With a focus on living a simple lifestyle and placing importance on sustainability and community issues, the minimalist seeker values time to themselves and embraces opportunities to experience other cultures.
"They are unlikely to invest in their personal image and status or follow the latest trends," Shridhar explains. "They value their time – often looking for convenience and quick services to allow them to live a well-balanced lifestyle. They put a lot of emphasis on activities such as regular exercise, cooking, and spending time with their close family and friends.
They are focused on longevity and waste reduction, meaning they are likely to buy second-hand items and are more likely to try and fix something, rather than replace it."
According to the report, this consumer type will take their time to research products and they highly value price comparison services. It's their interest in getting good value for money that reduces their brand-loyalty so this audience has potential to be a great target audience for new product innovations, new brands and private label companies.
In this COVID-19 era, Shridhar says this consumer type will place more emphasis on shopping locally and making eco-friendly and sustainable purchases, plus they are likely to invest in products that will allow them to keep mental wellbeing during this time of uncertainty.
“Companies need to provide clear packaging Ad labelling information, in store and online, clearly emphasising eco-conscious, sustainable, locally sources, and high quality ingredients. The promotion of products with waste reduction features is also likely to resonate with this consumer.”
Secure traditionalists - 12%
Perhaps more likely to be of the older generation, secure traditionalists are set in their ways and actively avoid shopping. They are not influenced by trends so they are difficult to influence and rarely make impulse buys.
According to Euromonitor, these consumers will appreciate convenient shopping experience which make their transaction quick and painless, ideally in-store.
Shridhar suggests: “Brands should clearly mark promotional items and discounts and create a convenient and easy shopping experience.”
Empowered activists - 12%
The empowered activists are on the rise - with a share of just 9% of the global market in last year's report. They believe they have the power to affect change and they use their purchasing power in order to do this. They are likely to be concerned with global issues so they carefully consider their actions and behaviours to ensure these are inline with their values.
They will be likely to help those in need through charity work and by joining protests and they will often share their experiences of brands they've used to influence those around them.
Shridhar adds that this group of consumers will seek out products with green and sustainability messages and they tend to be very brand loyal, as they stick to the brands which share their ethos. They will also appreciate brand aligned with charities and with clear sustainability and welfare strategies.
She adds that, throughout the pandemic, these consumers will likely place emphasis on shopping locally and continuing to make eco-friendly and sustainable purchases. They are also likely to help charities and aid organisations to help those impacted by the pandemic.
The undaunted striver - 11%
The trend-driven undaunted striver is willing to spend their money to maintain their status and their social image. They will regularly make impulse purchases, prioritise name-brand and luxury products, and use technology to improve their day-to-day lives.
"They enthusiastically enjoy trying new things and experimenting with different brands, even if this means they need to pay more," explains Shridhar. "Their image conscious nature and interest in trends can facilitate companies in influencing this consumer type.
"They have a growing interest in digital media and celeb endorsements as these platforms often show a lifestyle they are looking to replicate. They are likely to seek tailored cultural experiences and customer-centric shopping experiences.
"After COVID-19, they are likely to continue investing in the latest trends in order to curate their online image via social media. These platforms will become even more important to them as they are unable to meet people in person.”
Conservative homebodies - 9%
With a reduced share of the market - down from 13% last year - conservative homebodies tend to prioritise family relationships and personal matters and are unlikely to place much importance on their image or following the latest trends.
They usually stick to essential purchases and place emphasis on their loved ones, rather than materialistic belongings. That being said, they do still enjoy the shopping experience and do not have strong brand loyalty so Shridhar says companies that offer memorable and unique experiences may be able to attract these consumers.
Digital enthusiast - 9%
Perhaps unsurprisingly, the digital enthusiast is a growing audience - up from 6% in 2019 - and surely will continue to grow through this global pandemic.
These consumers value and prioritise all things technology. They likely use online platforms for every day tasks and are interested in keeping up with the latest technological trends. They are also unlikely to invest in their personal image or the latest trends unless they are related to technology.
Shridhar suggests companies that have the ability to collaborate to provide digital experiences will highly resonate with this consumer.
Inspired adventurers - 6%
Cautious in how they spend money and often looking for high quality products, inspired adventurers are unlikely to place importance of personal image or status. Instead, they are continually inspired to better themselves, through their career, personal health, global issues, or relationships with family and friend.
"They place a lot of emphasis on physical and mental health and frequently invest in preventative measures for ageing – such as supplements. Life goals influence their overall actions and behaviours," says Shridhar.
"They are highly influenced by price and so are likely to sway between products and they seek quick transactions and convenient shopping experiences."
With the global pandemic increasing awareness of the importance of health, Shridhar says inspired adventurers are likely to become even more driven by this concern and will likely be some of the early adopters of preventative health care interventions.
Cautious planner - 5%
Well informed and very careful with their money, the cautious planner rarely makes impulsive purchases as they rely on previous experience or reviews to make their purchase decisions. They seek to save money to have a better financial future and are unlikely to be swayed by trends.
To win over these tough customer, Shridhar suggests brands must provide clearly outlined independent reviews and testimonials alongside a memorable and unique shopping experience.
Balanced optimist 3%
The balanced optimist seeks a balanced lifestyle, focused on enjoying the present and planning for the future, often prioritising time with friends and family. They are usually cautious with how they spend their money but they place a lot of importance on their happiness and the happiness of those around them, meaning they will be happy to frequently make small impulsive purchases to treat themselves or those around them.
They enjoy experiences and value their time spent by themselves as well as with close family and friends.
Shridhar adds that they appreciate simple shopping experiences that allow them to get the purchase done quickly, giving them more time to spend on things they value.