Amrinder Singh, Director, Bonn Group of Industries outlines why retailers need to stock up on Wellness products
As the focus has once again been shifted to health due to the ongoing coronavirus pandemic, the brands too had to pivot their strategies and adapt to a “new normal”, where the demand is for high-quality health and wellness products.
Even the understanding of wellness products has been widened from lack of illness and disease to a more holistic state of being. Consumers’ expenditure has also gone up when it comes to spending on mental, physical, and emotional health products. They have increasingly become aware of their health and have no qualms about spending on fitness classes and activities, eating organic and natural foods, taking health supplements, and following special diets.
Gone are those days when owning expensive goods was the need, now people are showing a preference for participating in activities and indulging in experiences that promote their well-being – and sharing those experiences with their friends.
The demand and popularity of the health and wellness trend can be visible across consumer groups, irrespective of their age and gender. Eating healthily, exercising regularly, and monitoring one’s health have become a lifestyle choice.
Millennials: The Driving Force Behind the Trend
While this trend is visible across age groups, millennials are behind its popularity and demand. Their priorities and expectations are different from the other age groups because they were born during a time of rapid change in terms of every sector across the globe.
According to a survey, 72% of millennials like to spend money on experiences than on material goods, and that preference is forcing retailers to adapt as more millennials ascend into adulthood and increase their spending power.
For millennials, wellness is a daily activity and they have no qualms about spending bomb on them. Another research says that many of them bring fitness into everyday life visibly by wearing athleisure apparel for all kinds of activities other than working out. They also enthusiastically track their fitness training and sleep data through apps.
Grocery and household essentials see most buyers
With people have been losing jobs and getting paycuts, people have been spending judiciously as the coronavirus pandemic has hit the economy adversely. Groceries and household essentials are the only categories consumers will spend on.
Even many fast-moving consumer goods firms have quickly identified need-gaps to launch new products. Most of them focused on immunity-boosting products. A study shows that lifestyle as a category, which included travel and fine-dining, has taken a backseat.
Fine-dining, vacations, and recreational activities were a priority for just one-third of the respondents, though 46% of people in metros believed fine-dining will be a key need category under lifestyle. That’s probably good news for restaurants that are struggling to survive after having been shut for more than two months.
Even as they open for dine-in, they are likely to suffer a slump in footfall aggravated both by fear of Covid-19 and stringent social distancing norms that are rendering their businesses unviable.
Way Forward: Evolve with the Consumer
Brand affinity towards health-related needs, such as fitness, nutrition, health insurance, and medical consultation will continue till the coronavirus pandemic subsides. When it comes to communication brands, such as mobile networks, messaging platforms, and conferencing, 42% will be continuing with the same companies.
The trend of trimming budgets post-Covid-19 was the strongest among people in the age group of 35 to 44 years. This means that brands will have to fight harder for their share of wallet, which has also contracted.
With low income, consumers are shifting away from purchasing luxury goods in favor of splurging on wellness as a luxury, and traditional brick-and-mortar retail stores are responding by changing their offerings.
Regular shopping sprees as a form of retail therapy will no longer be there at least for a year. Experiential retail offerings are replacing traditional formats, and those retailers that evolve with consumers’ changing demands are the most likely to be successful.
