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Surprising Findings and Fresh Ideas Can Mean New Opportunities for Marketers

Sometimes market research reveals behaviors and emerging trends that surprise even seasoned industry-watchers – and those surprises can sometimes spell big business for marketers. NPD Insights invited a group of NPD industry experts to share recent findings that they considered to be counterintuitive (or just plain surprising). We thought the data might surprise you, as well.

Food & Beverage and Foodservice – The Hamburger and French Fries “Diet”

Harry Balzer, vice president of The NPD Group and the company’s expert spokesperson on food and beverage and foodservice, likes to remind food marketers of the saying that "research is to see what everyone else sees, but to think what no one else has thought." One surprise in the restaurant industry is that when consumers say they want a "light" meal, the number-one food they order at a restaurant is a hamburger. Next in line? Fries, and then a chicken sandwich -- these "light" options all rank higher than salads! When consumers say "light," they still want the things they like. Balzer has already seen chicken "snack" sandwiches and variations on that theme take off in major fast food restaurants. He expects that someone will offer new, "light" versions of hamburgers and fries. In supermarkets, we're seeing an explosion of 100-calorie packs of some of our favorite foods and beverages. So "light" could be about portion-controlled versions of consumers' favorite foods.

Home Appliances – Buy Online; Spend More

While the conventional wisdom posits that people who purchase products online spend less money than those who buy from brick-and-mortar retail stores, Peter Goldman, president of NPD’s Home division points out that is not always the case. NPD data on home appliances reveals that in the world of new small kitchen electrics, personal care appliances, and home environment products (e.g., floor care), the Web commands higher prices than retail stores and catalogs. In 2006 the average price paid in a brick-and-mortar store for a small kitchen appliance was $33; the average price paid on the Web was $53. Personal care items at retail stores averaged $19, while Web shoppers spent $37.

Home Improvement – Women in Toolbelts

As women become increasingly comfortable tackling projects around the home and visiting home centers, NPD data shows the effect in the male-versus-female split in terms of category sales. NPD’s Director, Home Improvement Mark Delaney reports there has been a marked increase in the number of women purchasing some of the more appearance-oriented home improvement product categories, such as painting supplies, vanity cabinets, showerheads, and door hardware. The data also highlights a slight increase in the sale of hand tools (e.g., hammers) to women. This subtle demographic shift could be a result of the increasing distribution of hand tools in mass-market retailers; however, we could also be seeing a more systemic shift, as single women have become of the largest emerging segments of homebuyers. As a result, we expect to see these trends continue and cross over into other categories. Retailers that make efforts in merchandising to women and providing an inviting store environment will reap dividends from this groups' purchasing power.

Unit Share by Gender and Category
2004 vs. 2006, Point Change
Chart1

Source: The NPD Group/Consumer Tracking Service

Toys – Secondhand Often Parents’ First Choice

German consumers love “system” toys like Lego and playmobil – kids begin with starter sets when they are two or three years old, and continue to add new items throughout childhood. Long-lasting play value is important for parents in Germany; toys are considered investments and “culture goods,” like books. Werner Lenzner, NPD’s toy expert in Germany, says companies might be surprised by how many of those system toys and other plastic toys are purchased secondhand from online auction sites and local flea markets – consumers put the toys in the washing machine for a spin before selling them! He estimates these secondhand toys account for about 10 percent of the total toys market in Germany.

Consumer Technology – Is Pink the New Silver?

When it comes to the intersection of music and technology, we’ve seen a lot of changes lately. Digital music and video consumption has taken hold among consumers – in fact, 900 million blank DVDs and 1.2 billion blank CDs were sold in the last 12 months. Appearance matters here, too: Stephen Baker, vice president of industry analysis and NPD’s primary hardware analyst reports that while silver is normally the most popular color among iPod consumers, pink is the most popular color for the $249 8GB version of the iPod Nano.

Fashion – Women Shop, but for Whom?

We all know American women love to shop for clothes, but contrary to what many husbands might believe, women are less likely than men to purchase clothing for themselves. Instead, NPD’s Chief Industry Analyst, Marshal Cohen, reports they spend nearly half of their clothing budgets on purchases for someone else. Men, on average, spend 64 percent of their clothing budgets on themselves, compared to women who spend just 55 percent on clothing for themselves.

Surprising to many Canadian fashion retailers a definite shift in shopping patterns. Kaileen Millard-Ruff, NPD’s director of fashion for Canada, says unisex merchants such as Marks Work Warehouse and Old Navy are growing at a faster rate than women’s specialty. She’s also observed that men’s specialty retailers are losing market share as the unisex group gains influence. The women’s specialty retail market is still double the size of the unisex market, accounting for more than $4 billion in women’s apparel and basics sales in 2006 (up 7 percent from 2004), compared to almost $2 billion in unisex sales of the same in 2004. Men’s specialty was worth $970 million in 2006, down 7 percent.

Beauty – Are Men Actually from Venus?

When men buy fragrances for themselves, they actually have women in mind, explains Karen Grant, NPD’s beauty industry analyst. Adult male consumers tell NPD the most important attribute when buying fragrances for themselves is that a scent is "liked by women.” But a look at the attributes women care about reveals "liked by men" is never ranked first.

NPD research also illustrates just how big the makeup industry actually is in the U.S.: One eye shadow is sold in U.S. department stores every two seconds – and if you could stack every lipstick sold in 2006, it would exceed the height of three Empire State Buildings stacked end on end.

To find out more about how NPD information and insight can change your view of the marketplace – and how you can translate surprising findings into important opportunities -- contact Charles Camaroto at contactnpd@npd.com.

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