Price savvy consumers will continue to shop around in 2010
Published: 4 January 2010
Customer loyalty continues to diminish, while home and garden leisure is bolstered by recession, as homeowners focus on careful budgeting.
The Horticultural Trades Association's (HTA) latest Garden Industry Monitor (GIM) Consumer Insight has revealed a new interest in 'professional budgeting' among consumers. It claims that people have become more savvy about their personal finances and are spending more time researching products before purchase and looking around for the best deal. 75% of consumers have made some sort of cut back, while 48% are 'carefully budgeting'.
Customer loyalty is also diminishing, with 53% of consumers stating that they are less loyal to companies now than they were previously. The HTA explained that "the rational, price scrutinising, discount-hunting professional consumer will be a permanent fixture of the new decade." However, it also stressed that the power of good service should not be underestimated. 40% of respondents said that they had taken their custom to a different shop or company in the past year because of poor customer service.
Meanwhile, home and garden leisure has been boosted by the recession, with consumers seeking solace in the safety of their home and garden, where they have been willing to spend money.
According to the HTA, 72% of consumers regularly socialise at home with friends and relatives once a month, while 58% have used their garden for socialising in the last year.
The grow your own trend also looks set to continue in 2010, with 41% of family stage consumers either already grow or are planning to grow their own vegetables in 2010.
HTA director Andrew Maxted said: "The garden industry is in good shape as we enter the new year. 2009 saw a return to growth for garden retail sales and a renewed interest in planting and garden leisure. The trends reported in this latest edition of GIM Insight highlight opportunities for retailers, growers and manufacturers to build on this interest in 2010. Environmental and leisure themes in particular continue to be very important to consumers, which s good news for the garden industry."