France has been the first country to host the 2024 edition of the Shopper Experience Observatory (OSE) event. This event has been developed with insights from the annual OSE study conducted by ISM across all the countries where it operates, aiming to deeply understand the behavioral changes of shoppers, industry shifts, and their impact on Retail Media, to adjust communication strategies accordingly.
With a global approach, the OSE reaffirms ISM’s commitment to providing accurate and tailored data for each market. By thoroughly understanding local preferences, retailers and brands can refine their strategies and enhance their outcomes, ensuring effective impact and improving the shopping experience for shoppers.
Conducted in partnership with Ipsos, the OSE 2024 study for the French market reveals how inflation has influenced shopper behavior, from how they manage their budgets to how they make purchasing decisions at the point of sale. These key data points are essential for developing an effective in-store communication strategy.
The impact of inflation on consumption
The study reveals how inflation in France has directly affected shoppers’ purchasing habits. With 63% of buyers adjusting their daily budget to just €10, it is evident that French families are being more cautious with their spending. This budget control has a tangible impact on monthly expenditures, which have risen to €398 per family, representing an increase of €25 compared to 2022.
Economic uncertainty has led 51% of shoppers to visit multiple stores in search of better prices, while 71% resort to promotions to maximize the value of their purchases. This behavior reflects a trend toward savings and optimizing every euro spent, compelling brands and retailers to pay attention to the evolving expectations and needs of consumers.
Hypermarkets and supermarkets: the giants of french consumption
Despite the rise of digital commerce, hypermarkets and supermarkets remain the most important shopping channels for the French. Since 2021, these formats have not only maintained their dominance but have also seen an increase in the time shoppers spend on their purchases. These large retail outlets offer a wide variety of products and allow consumers to compare prices, making them the preferred option for those looking to control their spending.
The importance of communication at the point-of-sale to influence purchasing decisions
One of the key insights from the OSE in France is the crucial role that communication at the point-of-sale plays. Despite the rise of digital commerce, 84% of shoppers make their purchasing decisions once they are in the store. This data underscores the importance for retailers and brands to provide clear and engaging communication at points of sale to influence buying decisions.
Moreover, although inflation has led many shoppers to be more cautious with their choices, 35% are still willing to pay more for environmentally friendly products. This finding is revealing even in times of economic constraints, sustainability remains a priority for a significant portion of the population.
Retail Media: The latest tool to compete with private labels
In the current economic landscape, private label brands have gained significant prominence in France. Their quality proposition at competitive prices has been fundamental in making many shoppers prefer them over more expensive brands. These brands not only represent an economical option but also provide an attractive alternative for those looking to save without sacrificing quality. In fact, the study shows how these brands have evolved from being budget options to becoming a popular choice among more prudent shoppers.
Stay tuned for our upcoming articles, unveiling shopper behavior insights in Chile and Argentina
France has been the first country to conduct the OSE event this year, but others will follow. Soon, two key markets in Latin America, Chile and Argentina, will present the study, allowing for an expanded understanding of shopper behavior in the region.
