Recession-Weary Consumers Desperate for Fewer Choices
- Robert Pirsig, Zen and the Art of Motorcycle Maintenance
Retailers, reacting to the ongoing structural shift away from excessive consumerism, are beginning to choose quality over quantity.
Finally.
This morning's Wall Street Journal highlights efforts by stores like Target (TGT), Wallgreens (WAG), and Wal-Mart (WMT) to reduce their product offerings, limit shelf clutter, and generally simplify the consumer's shopping experiences. Suppliers like ConAgra (CAG) and Clorox (CLX) are also trying to get ahead of the curve, and are reducing the variety of their offerings.
As shoppers become more selective, confronting a dizzying array of salad-dressing options inspires many to simply throw up their hands and go with a brand they know. As one customer told the Journal: "There are too many choices. I just went with Kraft (KFT), because I know Kraft."
This trend clearly favors dominant brands, since smaller, lesser-known varieties will be muscled out by firms able to spend millions on marketing. And while this may stifle innovation in the cutting-edge barbecue-sauce industry, stiffer competition ultimately weeds out the weak, thereby making room for real future innovation. As sales become concentrated inside big, often stodgy conglomerates, nimble upstarts have a chance to move in with new and improved products.
In eliminating superfluous brands, products, and package sizes, retailers are also slashing inventories -- a key part of rebalancing consumer demand with supply, and a necessary component of any sustainable economic recovery.
Wal-Mart, the world's largest retailer, isn't just slimming down its offerings. After analyzing sales patterns, the company discovered that, in market segments with growing sales -- flatscreen televisions, men's shaving cream, and garbage bags, for example -- increasing variety actually helped sales.
On the other hand, when consumers begin to shun certain products (toilet paper, mouthwash, and microwave popcorn, for example), fewer choices actually helped stem the decline.
And while it looks like Americans now prefer frequent shaving over the regular use of toilet paper, swapping variety for simplicity represents a healthy shift in priorities. Consumer spending, once directed towards glitzy status symbols (hey, even fancy barbecue sauce became a social marker), is now focusing on the useful and necessary.
This -- despite its grim implications for purveyors of the sleek and pointless -- is a good thing.
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I have personal mental issue (one of many) that I call the "the book store problem". I can usually go in and find a book to entertain for me for a couple of hours at a convenience store or grocery store. 1 rack, very little choice.
However, plop me in the middle of Barnes and Noble and I'm lost. I usually walk out with nothing. Too many possibilities to sort through. I can buy books online because I'm actually searching for a specific topic, and so I still only end up with a rack of about 20 choices. I'm just plain old happier with less choices.
Sometimes we get burned out by the coercion. Some sooner than others.
It's one thing to be told face-to-face, "I made this just for you.", but quite another to be in a crowd of people staring at an aisle full of 'stuff' and wondering who all that cr..p is really for.
My favorite example is wine in a grocery store. You can reasonably assume its all mediocre and, assuming you know nothing about it, like me, your best benchmark is the price. Which is a pretty stupid/trusting way of picking wine in a grocery store. Yet I find myself standing there staring at the rack of wine, trying to decern where i get the best wine for my money, even though I have no clue.
So how do we choose the BBQ sauce, the salad dressing, the super glue. Its then all about branding, marketing and, as Depew would say, the simulacra.
Have a good weekend.
This is what so aggravating about modern shopping. Tons of choices, almost all mediocre and with no real information to be had because the product is safely buried under the packaging. Thankfully, since we went "natural" low carb, I spend most of my time in the produce and meat aisles. Very few brand names, a lot more "real" information (transparent or no packaging) and a lot less choices than the cereal aisle.
I need to read that book again...
















