This article serves to help companies to gain a better understanding
on the Millennials in order to capture their share of the market effectively.
Based on research and statistics, we drew the following
conclusions on the target segment and their behaviour.
1. Millennials want High quality food at
Cheap Price
2. Millennials are Health Conscious and
Price Sensitive
3. “Photogenic” Foods
4. Transparency of Food, and social
& environmental responsibility
5. Adventurous, keen to explore new and
innovative flavours
6. Rely on reviews for the choice of brand
7.
Willingness to pay more for premium products
1.
Millennials
want High quality food at Cheap Price
The Millennial generation values both quality and price competitiveness.
Food companies are now putting more emphasis on health and high-quality
ingredients in order to appeal to Millennials. For example, the makers of Oreo
launched “Oreo Thins”, a slimmed-down version of the original Oreo Cookie which
contains lesser cream filling and calories, which then generated USD $60
million in sales.
Additionally, cheap restaurant chains targeting Millennials
are gaining popularity in Japan recently. Major Japanese izakaya chains are too,
filling up their menu with lower priced snacks.
2. Price Sensitive
Although Millennials put much importance on health and the
quality of food ingredients, they are also price-sensitive. Fast casual
restaurants are hence growing at fast pace as they are able to satisfy the
Millennials by presenting a healthier, better quality alternative to
traditional fast food chains. Singapore is one of the leading countries in Asia
in regards to fast-casual industry. An example will be Singapore based Zest
Group who owns and operates 3 brands, and now owns more than 40 outlets across
Asia.
3. “Photogenic” Foods
According to Mintel’s 2014 research, 29.2 million of
Americans have posted on a food or drink picture at a restaurant on their social
media platforms. A recent study was done by Maru/Matchbox further stated that 69%
of millennials (out of a sample of 310 Americans) take a photo or video of
their food before eating. Other than keeping on a lookout for a cheaper food
option, a number of Asian Millennials also value “Instagram-able” food,
which is photogenic enough to be posted online. According
to a survey by MasterCard, 36% of millennials post comments and reviews of
their dining experiences online. With the results being more prominent for
Chinese and Thai millennials, where more than half of the young people post regular
reviews after a meal.
4. Transparency of Food, and social
& environmental responsibility
Millennials expect to know what is in their food and where
it came from. According to an analysis done by Nielsen, a Global Marketing
Research firm, 81% of the surveyed Millennials want to know more about how
their food is produced and 80% will want to “see the story behind the scenes”
of their food. Additionally, 51% of them check the packaging to ensure that the food
they purchased contributes to positive social and
environmental
impact.
5. Adventurous, keen to explore new and
innovative flavours
Millennials are interested in new products and are more adventurous
to try out new & innovative flavours than previous generations. It was
reported that 40% of the surveyed millennials like to try new kind of ethnic
cuisines and food that are new and different.
Nearly half of the millennials are also willing to pay a premium
for innovative products, as stated by a recent analysis by Nielsen, a Global
Marketing Research firm.
6. Words of Mouth (WOM)
According to a survey done by MasterCard on Asian Dining Trends,
consumers in Asia Pacific still prefer to rely on words of mouth and
recommendations from friends and family. Millennials too, trusting word of
mouth recommendations (52%) more than online reviews (38%).
7. Willingness to pay more for premium products Premium Products
Market Insights firm, Maru/Matchbox, reported that
millennials are willing to pay more for premium products such as “organic” and
“natural” products. Millennials feel that such products make them feel more
responsible and health conscious, and hence deserving of a higher price. According
to the report, 68% of the millennials are willing to pay more for organic foods
and 66% are willing to pay more for sustainable foods.
For local food supplier and local food distributor in the country, it is necessary
for their management to sit up and listen intensely to all these changes in
their operating environment. Paying attention to the end consumers’ needs &
wants will serve them well in the long term. For food distributor in Singapore such as Oregano Trading,
they have embarked a re-branding exercise
to keep themselves abreast with the latest trends and happenings. A revamp on
their brand strategy is also necessary
for them to maintain their leading position in the market and to achieve
sustained growth in years to come.
The management believes that brand promise is very
important. As a wholesale food supplier in Singapore,
whereby they also provide wholesale meat Singapore and
also a seafood supplier Singapore, freshness and
storage of the items are upmost importance.
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