Market trends 2012

A prediction of market trends for 2012 in a Sri Lankan context by Marketing Consultant, Prasanna Perera

Consumers are looking for greater convenience in everything and this trend is spreading fast to the outstations as well. This is due to time pressures, as a result of trying to balance several responsibilities. Besides fast food, delivery services of all types are noted. Even Sri Lankan Airlines is encouraging passengers to book their journeys online, thereby offering greater convenience and price benefits.

Prasanna Perera

Consumers will become increasingly price conscious, given the inflationary pressures experienced. Rupee stretching will be the name of the game, as consumers tighten their belts and also try to save. For marketers, the message is to deliver consistent value through their products / brands and not to engage in fruitless price wars.

Modern Retailing will continue to grow across all product categories. The incumbent players will increase their reach, by opening up new outlets in different formats such as hypermarkets, supermarkets, express outlets, mini supermarkets to name a few. Consumers across all walks of life will migrate to modern retailing formats, to enjoy a better and more rewarding shopping experience. For example we observe modern clothing retail formats in the suburbs and outstations.

Eating out will continue to grow due to several reasons. Firstly, smaller family sizes does not make cooking at home economical. Secondly, time pressures faced by the modern consumer. Thirdly, eating out is seen by many as a way of relaxing with family and friends. We have already seen different types of eateries from Chinese to Sri Lankan, Indian to Korean and Western.

Self Service Apartments and Serviced Apartments are growing, particularly in the Western Province. The reasons are that apartments are seen as clean, easy to maintain, modern, safe and above all convenient. Building and maintaining traditional houses and gardens are seen as cumbersome and expensive.

Further, apartments can be rented out for both short-term and long-term.

Consumers are becoming more health conscious and are selective in the food and beverage products / brands consumed. There is a definite trend towards vegetarian food, confirmed by the growing demand for soya meat, soya milk and other vegetable proteins. Also food and beverage which contain less sugar and salt. There is also a growing preference for natural food and beverage, as opposed to artificial products. Kola Kenda stalls on the roads are a good example of this trend.

Digital Marketing will continue to grow as a result of consumers moving on-line to chat / socialize, obtain entertainment, seek information and educate themselves. Presently there are over 1.2 million Facebook fans in Sri Lanka. LinkedIn is also popular amongst professional and e-mail communication is growing. Mobile communication is very popular in Sri Lanka, with over 20 million mobile phone subscribers in the country. Digital Marketing and communications is a must for Marketers.

There is a large BOP (Bottom-of-the-Pyramid) market in Sri Lanka, which will aspire for a better standard of living. In many BOP households, at least one individual is employed abroad and remits money to the family monthly. This enhanced income will motivate them to aspire for better quality products and services. Presently, FMCG companies are actively addressing this segment with smaller and cheaper packaging. (Products and Brands)

There is a large population of Sri Lankans living abroad, estimated at around 1.5 million. This segment visits Sri Lanka at least once a year and provides an income stream for many retailers and other service providers. This migrant segment is an important group for Marketers in Sri Lanka.

Varied entertainment options will be demanded by consumers such as movie theatre's leisure parks and edutainment centers. There is opportunity for entrepreneurs to capitalize on this trend and venture into such industries.

Consumers will be looking to trade-in past purchases, and unlock value in their current possessions. We have already witnessed this trend in consumer durables, automobiles and furniture. In 2012, "trading in" will be the new buying. An excellent example is Levis that offers a certain value for an old pair of jean, encouraging customers to be up with the latest trends.

In 2012, consumers will continue to hunt for deals and discounts, but they will do so with great happiness if not pride. Deals are now more than saving money. It gives the consumer a kick, a certain degree of control and smartness. Basically, deals are becoming fashionable and sought after.

Even in developing countries such as Sri Lanka, brands will increasingly take back all their products for recycling and recycle them in a responsible manner. This will partly be due to greater social awareness and may even be as a result of new legislation.

Chinese and Indian consumers will dominate world markets across a range of products and services. Do not forget that CHINDIA (China and India) accounts for almost 35% of the global population).