As we countdown to July’s summer games in Paris, and the world gears up for a thrilling summer of sport, new insights from Circana, the leading advisor on consumer complexity, reveal how consumer behaviours and trends will provide fresh opportunities for fast-moving consumer goods (FMCG) retailers and manufacturers to capitalise on these events.
Opportunities are at hand for retailers to re-engage consumers across a wide range of age, income and gender demographics in an attention-deficit economy and a fragmented media landscape.
These are the findings from Circana’s latest ‘Volume Vortex’ report, a survey of more than 3,000 consumers across Europe, US and South Africa, revealing insights for brands to capitalise on the summer games in Paris.
High costs and travel concerns impact attendance
Themed events and informal gatherings in office environments and holiday venues, rather than major city-centre hospitality locations, will dominate sales of food, beverages, and general merchandise during the summer games in Paris. This shift is driven by the high costs associated with travel, event tickets, and city-based spending.
Brands with limited budgets should consider targeting semi-rural and holiday areas where engaged, captive audiences are located away from busy cities. This strategy could lead to better marketing returns for retailers by focusing less competitive locations.
Retail opportunities
Traditionally, high-income consumers were expected to flock to bars and cafes for the summer games. However, Circana’s survey data reveals that 56% of high-income households across the top six European grocery markets (51% in the US) say they would prefer to watch at home, surprising many hospitality venues. However, 44% of consumers say they are open to or prefer out-of-home viewing. This dual trend presents a significant opportunity for grocery retailers and manufacturers to cater to both at-home (AH) and out-of-home (OOH) consumption preferences.
By strategically aligning product offerings, pricing, and promotional efforts, as well as investing in quick service delivery (QSD) partnerships, brands can significantly boost both sales and brand growth. Importantly, this approach offers a powerful avenue for local and challenger brands to achieve effective market penetration without the need for large budgets.
In an expensive media and promotion marketplace, demand forecasting and media strategy need to be as focused as possible which is why, across all regions, 24% of consumers said they are likely to make changes to the way they participate, purchase and consume during the biggest sporting event of the year. This figure was highest in South Africa at 40%.
Ananda Roy, Senior Vice President of Global Thought Leadership and Strategic Insights at Circana, said: “The evolving consumer habits around major sporting events, particularly the summer games in Paris, offer numerous opportunities and challenges for brands and retailers. The key lies in recognising these shifts and innovatively adapting media and advertising strategies to meet new consumer demands.”
Roy continued: “By enhancing at-home experiences, rethinking delivery methods, or focusing marketing efforts on non-traditional locations like workplaces, offices, and holiday destinations instead of sports venues, the sporting arena offers abundant opportunities for those prepared to innovate and take decisive action.
“In today’s attention deficit economy, characterised by an overload of information and numerous media channels vying for limited consumer attention, it’s important to understand and respond effectively to these shifts in consumer behaviour.”
Other key insights include:
* Adapting hospitality strategies – The trend towards at-home consumption offers an opportunity for the hospitality industry to adapt. The rise in demand for premium, health-conscious foods and non-alcoholic beverages enables QSD platforms to provide high-quality dining experiences at home.
* Metaverse marketing – eSports and gaming, traditionally separate from real-world sports events with hard-to-reach audiences, are poised for growth with the advancement of consumer electronics, VR, and AI. With greater convergence between eSports and upcoming sports events, with mixed audiences, this evolving metaverse offers significant opportunities for targeted brand promotions, particularly in snacking, non-alcoholic beverages, and enhanced nutrition and hydration products.
* Singles’ spending slump – 35% of singles across all income levels are less active in spending on leisure due to high costs and limited options. Typically, this group spends more on out-of-home activities and travel, but they are now cutting back. Brands focusing on the youth market will need to increase their efforts to engage this demographic, as their leisure spending is now viewed as becoming a discretionary choice.
* Senior spending power – Consumers aged over 45-years are likely to spend more at the summer games in Paris due to its unique history and significance, comparable to other global sports events. Brands targeting this age group can expect higher engagement, even though this demographic typically shows strong brand loyalty, tends to avoid switching brands, and is generally cautious with spending, except in certain categories.
