It's all about the consumer

Consumers emerged from the global financial crisis as profoundly changed individuals. They now seek "values, not just value," Howard Saunders, president of New York-based Twenty Second & Fifth, told attendees of the Private Label Manufacturers Association's (PLMA) PLMA Live! Breakfast, held on Nov. 17 during the PLMA's Private Label Trade Show in Rosemont, Ill.

The new consumer is the "post-apocalypse man," or "PAM," Saunders said. And that consumer wants "products for heroes" — the product as opposed to a product.

"No one wants a watch; they want the watch," the futurist stressed.

This new retail culture, where the consumer is the center of the universe, is posing a challenge to product marketers. But smart retailers and brands, Saunders said, are reacting. He pointed to Coca-Cola's Share a Coke campaign and McDonald's "Create Your Taste" pilot menu program as two examples of a current trend toward product personalization, or "bespoke products," that cater to the "me-centric" consumer culture.

Also of utmost importance to today's consumer is community, he added, helping to drive success for farmers markets and companies such as Eataly.

PAM has become much more worried about what he eats, too, post 2008, Saunders noted. Sugar, salt, bread, meat and soda are all of concern right now, and product marketers need to address these concerns.

"It's going to be 'food fads forever,' and we better get used to it," he said.

Consumers' desire for transparency here and elsewhere also is giving rise to more story-telling on the part of savvy marketers. Five Guys, for example, shares the origin of its potatoes with consumers, he said. Even IKEA's meatballs "have a story."

PAM's desire for transparency also means he doesn't trust big business, Saunders noted, allowing small artisan businesses to gain market share in the current "David and Goliath" culture. Big retailers and brands that lose consumers' trust will have to work hard to gain it back, placing an emphasis on transparency. He pointed to UK retail giant Tesco as an example of a retailer that is struggling to regain trust "since they got caught with horsemeat in their burgers and fiddling the books."

Ultimately, the consumer mindset today is that "nothing need be ordinary," Saunders said. Therefore, product marketers — including those on the store brand side — will want to approach new product development with an eye toward de-commoditization.