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Back to Basics
In a recent roundtable discussion among our Industry Experts, it became apparent that a return to the basics is gaining momentum in many of the industries NPD monitors. From consumer interest in apparel basics like jeans and athletic footwear to some of today's fastest growing food items such as burgers and pizza, the key for manufacturers and retailers seems to be offering new twists on tried-and-true basics. Here, our experts weigh in on the "back to basics" trend that's happening in many of the industries they track.
Basics are back in a big way in the apparel and footwear industries for two important reasons. First, no single trend has emerged that is worthy of risking inventory commitments. Second, consumers are in an investment mode for wardrobe building. Both reasons mean manufacturers and retailers are offering products that will stand the test of time and carry over from season to season or from one year to the next. We're seeing consumers update their wardrobe basics – they're buying basic pants that will coordinate with several seasons' worth of trendy tops. Instead of buying complete outfits based on the latest trends, consumers are demonstrating the desire to buy basic components. Adding on, versus buying a whole new wardrobe, continues to be big trend among consumers. And for manufacturers and retailers, basics offer less risk, wider ranges of target consumers and less perishable product. While basics bring less risk, they don't promote more frequency of purchase. Consumers will continue to buy on need more than impulse when basics prevail. Thus, less risk, but at the expense of higher rewards.
Marshal Cohen
Chief industry analyst, NPD Fashionworld
In the food and foodservice industries, taste is always the primary concern. And in most cases, that means doing something contemporary with basic tastes that are sure-fire winners. That's why we frequently see new twists on fast food restaurants' basics like burgers and chicken sandwiches – they change the sauce, introduce a new bread or slightly alter the presentation to capitalize on contemporary needs. Consumers recognize the product as a basic, but eagerly try the latest twist. Expect more food and beverage staples in the coming year to take advantage of the growing interest in low-carb, high-protein diets.
Harry Balzer
Vice president, NPD Foodworld
In the toy industry, the "basics" are the classic, traditional toys – and purchases by grandparents help keep these categories going. In the most recent 12-month period, grandparents accounted for approximately 16% of all traditional toy purchases. That translates to $3.4 billion in toys, making grandparents a formidable buying group, often seeking out classic toys and brands. Grandparents tend to avoid fast-changing, trendy categories like action figures, in favor of games and puzzles, learning toys and sports toys that are often considered classics. Grandparents often purchase toys without direct input from their grandchildren and they may not spend as much time with children as the kids' parents do. For this reason, grandparents may be less in tune with what's hot right now – and more interested in classic brands and licenses they recognize and can relate to. A few examples of "basic" or "classic" brands where we see that grandparents' purchases have a greater importance and share than in the overall toys market include Playskool, Tonka, Sesame Street and Radio Flyer.
Michael Redmond
Senior account manager, NPD Funworld
The beauty industry, while always interested in innovation, offers many examples of "the basics" – successful, traditional products that don't change from season to season or year to year. Many women's fragrance brands launched decades ago remain top performers today. For example, Chanel No. 5 was introduced in 1921 and Aromatics Elixir made its debut in 1971; both continue to be top competitors among women's fragrances, ranking in the top 20 year-to-date October 2003. Similarly, several men's fragrances that have maintained their strong followings are considered classics: Polo, launched in 1978, and Aramis, launched in 1965, remain competitive, both appearing in the men's top 20 fragrances, year-to-date October 2003. In skincare, brands such as Estee Lauder, Lancome, Clarins, Chanel and Prescriptives are the basics in terms of women's skincare regimens. These top brands are now seeing their most positive performance since 2000, with consecutive months of high single- to double-digit growth. Makeup basics like mascara, lip gloss and concealers drive today's growth in this segment of the beauty marketplace.
Timra Carlson
President, NPD Beauty
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