July 18, 2024
Licensing
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Eduard Ayrapetyan: on consumer market trends and new promotion tools
Russians choose quality over savings
Managing Director of Licensing at GPM Ads Eduard Ayrapetyan notes that nowadays, due to increased incomes, consumers are less meticulous when choosing basic goods and are once again considering not only practicality but also personal preferences in their purchases. His conclusions are based on a joint study1 by the GPM Ads team and Ipsos, which provided insights into how consumer behavior in Russia changed in 2023.
Over the past year, incomes of Russians have increased, leading to a return to previous spending levels despite rising prices. Shoppers are less frugal now. One in five respondents purchased small home appliances or electronics ahead of schedule. Only 19% of Russians were looking for a cheaper option for home appliances, and only 13% sought more affordable computers, tablets, and phones.
Eduard Ayrapetyan believes that retailer, given the current trends, should focus on setting reasonable prices in this situation. Russian consumers have adapted to the economic situation and are ready for additional expenses. However, price increases must be justified by unique values that encourage the buyer to choose a more expensive product.
According to the survey, the primary criterion for consumer choice is product quality. The majority (77%) of respondents consider quality to be the deciding factor when purchasing goods. Meeting this requirement (especially among audiences aged 41+ and 25–35 year-olds who are interested in a healthy lifestyle) can become a key area of development for companies. Experts, opinion leaders, bloggers, and media personalities can help companies win over Russian consumers. This can be a kind of quality seal in the eyes of customers.
The buyer is not looking for a product with the best set of features: in the modern world, such a choice is simply technically impossible due to the abundance of offerings. First and foremost, buyers subconsciously seek confirmation that their own choice is the right one. Having a media brand or celebrity they already trust on the packaging can help boost that confidence.
Consumers seek positive emotions
One of the most important purchase incentives is the desire for humor and positivity in what can be referred to as “joyconomy.”
Eduard Ayrapetyan noted that today the quality of the product is perceived not only in terms of its functional characteristics, but also in terms of the values that the brand represents. These should evoke emotions and feelings in buyers. Consumers seek positive emotions.
People need good news, vivid impressions, and positive emotions, including those they get from shopping. Comedic content tops the list of interests, comprising 54% of all content consumed. This is followed by news, travel, tourism, and entertainment, which account for around 40%. This suggests that people are tired of the stressful environment and are looking for distractions. Entertaining content helps them keep their mental health in check.
In his opinion, businesses can and should use humor and irony. If a product makes people smile or think about themselves and the world around them, it definitely sets itself apart from the competition and attracts attention
Humor is a strong motivator for purchasing licensed products, as an ironic inscription on a T-shirt favorable distinguishes it from the basic assortment, as it helps the buyer express their identity.
Popular artists, comedy shows, and viral memes on social media can serve as triggers for purchases. The trend of hiring a comedy star to be the face of the company remains relevant. Lifestyle products with jokes provide distraction and vivid impressions. When combined with recognizable images, the appeal of the product is multiplied.
Nostalgia for the 90s is a consumption trend
Adult audiences have important needs that must be met to ensure successful sales. They include the need for self-expression, gaming experience, and the desire to always be on-trend. People also like to reminisce about the past and indulge in nostalgia. According to the study, nostalgia for the 90s is one of the most sought-after trends among people of different ages. Today, many brands are capitalizing on this effect by creating associations with household items, apparel, accessories, cosmetics, and other products.
For example, popular TV projects like “Peace! Friendship! Bubble Gum!” take us back to that nostalgic era.
Russian brands are trusted. More than a third (35%) of Russians tend to choose locally produced products and prefer Russian brands on store shelves. This trend is prevalent not only in household goods, but also in media products. According to research, adult TV viewers prefer modern Russian films (43%) and series (59%).
Through the collaboration of products with popular media projects, companies can associate the feelings that viewers experience while watching television with certain goods.
Russians prefer licensed products
The study confirms that consumers prefer licensed products: 77% of the population have a positive attitude towards licensed products and are willing to purchase them. The percentage is particularly high among buyers aged 18 to 35.
Eduard Ayrapetyan notes that using popular characters and stories allows to create a connection between the product and the consumer, attract attention, stand out from the competition, emphasize the brand’s unique qualities, and increase sales.
The study also indicates that people are prone to spontaneous purchases.
The leading position of licensed products among buyers indicates a trend toward impulsive buying: beverages (74%), confectionery and snacks (74%), dairy products (65%), and ready meals and semi-finished products (63%).
Buyers prefer products in bright and unusual packaging, and more than half of all purchases are made after the buyer sees the product on the shelf. This highlights the importance of emotional interaction with the customer through visual design.
1The analysis of the modern consumer was based on data from the RusIndex syndicated study for Q1 2023. The survey was conducted among residents of cities with a population of over 100 thousand people, with a target audience of Russians over 16 years old. The study on attitudes towards licensed products was conducted in 2023 among residents of cities with a population of over 100 thousand people, aged 14 to 65, who regularly watch movies, series, programs, and TV shows at least three times a week.
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