Meet the Hybrid Consumer

Meet the Hybrid Consumer

Here’s the thing; consumers are not rational. They are complex individuals who switch between letting their economic sense and their heart decide what to spend their hard earned cash on. In a report from May 2013, the Dutch investment bank Rabobank gave this kind of consumer a new name: the hybrid consumer; a consumer that is putting the retailers at risk of ending up in the squeezed middle; which is what is happening to many of the big retailers now.
Let’s use Tesco as an example. Originally the pioneer in food premiumisation, Tesco launched their Finest range in 1998, giving the consumer easy access to affordable premium products whilst shopping for their everyday groceries. The black, cream and silver coloured packaging with the exclusive font, elaborate descriptions and engaging stories behind the products reassured the buyer that these were products worth paying extra for. No need to go into small, independent specialty shops anymore – all could now be found in one place.
With the retailers expanding their ranges to include premium food products as well as clothing and home ware, the small retailers started to struggle and lose their market share. Convenience dominated the market and the busy modern family could now buy all they needed in one place; the superstore. Or, if they wanted to make a day of it - the retail park.
So why is it that Tesco and the rest of the ‘Big Four’ are losing market share, if all the consumer wants is convenience? With so much choice comes the liberty to pick and mix across retailers and price points. Convenience is therefore no the longer the USP that sets retailers apart – especially not in the middle of a recession; value for money, on the other hand, is.
With the recession came the need to find new ways of feeding the family without breaking the bank. Although initially, few felt like being seen with an Aldi or Lidl shopping bag, discount retailers began to gain popularity and slowly the consumers started realising that they could have their needs met both in terms of choice and quality – and at a much lower price. 
What does this mean? It means that for everyday staples such as, toilet paper, some toiletries and cleaning products, the consumer will happily go to a discount retailer or one of the £1 stores that keep popping up on the high street, thereby saving a lot of money on the things their guests are very unlikely to see or comment on in their homes.
It also means that the money freed up from ‘going discount’ on a large number of everyday products leaves the consumer with extra resources to go all in for indulgence and special occasion treats. Here the big four are yet again losing their market share – this time to the more high-end retailers such as Waitrose and M&S….and on the plus side, consumers feel more comfortable putting premium products on the table rather than showing their guests that they have gone to Tesco or Asda to shop for their visit. We are what we eat – and that includes the brand images of the products we eat.
The fact is that even though consumers are more brand-aware than ever before they are also decreasingly loyal to brands. Not because they don’t want to be loyal, but because supply is so massive and choice is many and varied. Re-gaining market share is therefore not only about matching prices with the competition or having outstanding offers on; it’s equally about connecting with the customers at an emotional level. Without the emotional connection, customer loyalty will only last until someone offers a lower price than yours.