Why retailers should care about transparency
Retailers looking to drive sales should be making transparency a focus of their marketing strategy.
A new report released from Label Insight and Food Marketing Institute (FMI) revealed that grocery shoppers exhibit loyalty to those products that create deeper relationships through information exchange. The Transparency Imperative report found that shoppers increasingly demand transparency and a closer connection to their food, so much so that 75 percent are more likely to switch to a brand that provides more in-depth product information, beyond what's provided on the physical label. When shoppers were asked the same question in 2016 in a similar study by Label Insight, just 39 percent agreed they would switch brands.
"The new shopper mindset requires brand owners to think about their products well beyond the traditional label and respect a more digitally-minded consumer," FMI Vice President, Industry Relations, Doug Baker noted. "The study offers several considerations for how to make the best use of these findings, but overall, they require companies to recognize and communicate the importance of transparency and perform a thorough review of their unique consumer audiences and commerce channels."
The vast majority of consumers (69 percent) say it is extremely important or important that brands and manufacturers provide detailed information such as what is in their food and how it is made. Interestingly, online shoppers (80 percent), college graduates (76 percent) and higher grocery spenders – $125+/week (75 percent) – were more likely to agree with this sentiment.
When asked to further define what elements define transparency, older generations (Baby Boomers and Generation X) are more likely than Millennials to focus on a complete list of ingredients, ingredients descriptions, and nutritional Information. Millennials also focus on these indicators, but they are more likely than older generations to look at allergen information, certifications and claims, explanations of ingredient usage information, and other details such as animal welfare, fair trade and labor practices.
To read the full transparency report, click here.