For all those selling goods to the public, the new year is sunnier than the last but the overall outlook is still partly cloudy. That's the news from the latest Nielsen Company survey as reported by Marketing Charts this week. The Consumer Packaged Goods or CPG market will see a few trends snap into place. Some of those key predictions include:
- Consumers will continue to be cautious with their spending in 2010. With unemployment still a concern, buyers will spend but with great restraint.
- Buyers will focus on value in what they buy. They will continue to look for the lowest prices and therefore threaten the margins of most goods sellers. Because retailers across the board will be discounting, the difference for the buyer will be value for their money.
- Store brands will also continue to be bought over name brands. Unit sales and dollar sales of store brands continue to grow, showing that buyers are looking out for a deal.
- Grocery retailers at the local and regional level will see consolidation. Because they can't drive profits well enough, many will be acquired.
- There will be more market share land grabs as stores try to make the choices simpler for the consumer. Therefore, small and medium-sized brands will try to elbow out store brands by forming alliances with certain retailers.
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