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IRI Assesses Impact of Economic Trends
A new study from US agency Information Resources, Inc (IRI) recommends that retailers should look at the state of the economy as a whole to help them forecast trends and plan new product developments in the consumer packaged goods (CPG) and healthcare markets.
The report, entitled Macroeconomic Trends: Understanding and Predicting Consumer Spending Patterns, assesses the link between US macroeconomic conditions and consumer spending on CPG and healthcare.
According to the study, when the US Gross Domestic Product (GDP) rises or falls, consumer spending increases or dips respectively. This impact varies according to the specific product category.
Data from the past decade reveals that non-food CPG products are more sensitive to minor GDP adjustments, while spending on food items responds only to more significant swings. At-home food spending is affected more quickly by economic downturns but suffers less dramatic swings than away-from-home food spending. Healthcare spending tends to be less affected by general economic trends.
Janet Eden-Harris, IRI Executive VP and Global Chief Marketing Officer, says the study 'will help retailers and manufacturers identify essential early warning economic indicators'. She adds: 'They can then act on these insights in their strategic and promotional plans and consequently win at the shelf by implementing the right marketing and merchandising initiatives at the right time.'
The complete report can be found in the Thought Leadership section of the IRI web site at www.infores.com.
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