The importance of better understanding consumer needs and demands in the coming decade was underlined by the fact that respondents in the research were largely dissatisfied with their existing shopping options (online and physical). 
Although physical stores will remain the channel of choice for most consumers in the coming decade (especially for food products), the importance of online shopping will increase exponentially, especially for products such as books/music and electronics. The anticipated growth in online shopping may lead to new delivery models. For example, while the bulk of consumers want their online orders to be delivered to their homes, approximately 20 per cent said they would like a neighbourhood pick-up model, particularly for perishable food and DIY products.

Influencing factors
Consumer demands are likely to increase in the coming ten years as shoppers look for more than just the basics such as bread, milk or toothpaste. In many categories, they will want complete solutions (for example, where a number of items or ingredients are already combined) and an emotional experience (where additional services and/or information are included or an environment is created) as well as the product itself.
Sustainability and other environmental issues will increasingly influence shopping behaviour. Sustainability aspects that were identified as most important to consumers in their future buying decisions were energy/water usage (87 per cent of respondents), waste reduction/management (85 per cent) and sustainable manufacturing (84 per cent). Although sustainability was important to most consumers, the majority were willing to pay only a small price difference for such products.
Consumers appreciate receiving personalised offerings, although this differs per product category. More than half of respondents would value personalised offerings (such as special products and promotions that focus specifically on the individual consumer) for books/music and electronics but only about one-third would appreciate personalisation for perishable food.
Health and wellness will be a growing factor in consumer buying decisions. More than eight out of ten respondents said health and wellness issues (including diet and obesity care) would be important or extremely important to them over the next decade.
Consumers are becoming increasingly aware of a wide range of new and emerging technologies that can be used during the buying process. Many respondents were familiar with technologies such as web ordering, blogs/web forums, in-store kiosks, payment via mobile phone and mobile alerts. However, it may take time before some of these technologies gain significant traction. A smaller percentage anticipated using the different types of technology in the future, compared with the percentage who had heard of the technologies.
Regarding a dialogue between consumers and companies, it appears that overall, consumers are willing to share some types of information such as buying behaviour and lifestyle (approximately 50 per cent) but are reluctant about sharing their contact details (only 36 per cent willing to share contact information). Many consumers who were willing to share information expected something in return, particularly special promotions.

Price, product and service will matter most
There are some underlying factors that will drive consumers’ buying patterns in the future. To understand the impact of these factors, consumers were asked to rate the importance of five key attributes over the next ten years in deciding how and where to buy products and services:
• Access: Ease and simplicity of store layout/traffic pattern, availability of goods on the shelf, easy navigation on the website.
• Experience: Being treated with dignity and respect in a pleasant and inspiring atmosphere.
• Price: Fair, honest, consistent prices.
• Product: Consistently good quality of products, adequate assortment/range.
• Service: Good execution of service basics, such as returns policy, treatment of customers.

All five attributes were considered critical by consumers. The top-ranked attribute was price, mentioned by 91 per cent of consumers as important or extremely important. Price was followed closely by product and service. In relative terms, access and experience were mentioned less often but still scored above 80 per cent.
A few variances appeared when looking at demographic backgrounds. Older respondents rated each attribute more highly than did younger consumers. And women also rated each attribute as more important, compared with men.

What needs to change?
Consumer satisfaction with their current stores (online and physical) and shopping experience in all categories was low. For example, just nine per cent of respondents said they were satisfied with their perishable food outlets. At the high end of the satisfaction scale were book and music stores, yet with still only 19 per cent of happy consumers.
Consumer concerns fell into four primary areas:
• Products: Product issues included demands for more variety/more brands, innovation and improved quality, product sourcing, product availability and natural/organic items.
• Stores/outlets: Consumers focused their comments about stores largely on the online channel, better service, delivery issues and improved accessibility (for both physical and virtual stores). Many respondents were looking for more products online and an improved online experience.
• Packaging/labels: Packaging concerns centred on less packaging, environmentally friendly packaging and clearer, accurate labels providing more information, particularly about product sourcing.
• Prices: Of course, many consumers lamented today’s high prices in all product categories and wished for lower or fairer prices in the future.

What are the specific changes consumers would like to see in the food, health and personal care retail categories in the coming decade?

Perishable food: health and nutrition dominate
Health and nutrition issues dominated the consumer comments about the perishable food category. Consumers want healthier products and more nutritional information. Some consumers wanted to be able to buy more perishable products online but only if the items were fresh and if they could see the product on the screen before buying. However, many others said they would not buy perishable items over the Internet.
Environmental and ethical issues also factored into consumer comments about the perishable food category. One US consumer was looking for items that are “organic, ‘sustainably’ produced, non-chemical; only offer the real stuff.” And a UK respondent would like to see “more organic and fair-trade produce become the norm rather than speciality; also more focus on seasonal goods to reduce the miles food travels, and more information on sourcing.”
The growing interest in local produce came through repeatedly in consumer comments. “Fresh produce should be from local businesses and farms, in turn helping the local economy,” said a UK consumer.
Concerns about the cold chain and traceability were also expressed. Said a French respondent: “Increase the communication about the traceability of the products/produce and find a way not to break the cold chain during delivery.”

Non-perishable food: less packaging, more convenience
Also in non-perishable food, consumers are considering environmental and ethical factors in their shopping decisions. One US consumer asked for “more organic, fair-trade products, better ways to distinguish such products on the shelves and more knowledgeable clerks.”
Packaging issues, including less packaging and better product and nutritional information on labels, were also mentioned.
Convenience and innovative product solutions were also on consumers’ wish list of changes. A consumer from the UK suggested that the industry “produce food in kit form, allowing certain ingredients to be omitted during cooking such as salt, preservatives, fats and oils.”
Health and wellness concerns arose as well. “We should have more brands available online and indicate important things like the amount of calories, fat, salt, etc., online as well,” said a UK respondent.

Health and personal care: provide more information
Comments concerning health and wellness as well as environmental and ethical issues were particularly prevalent for the health and personal care category. Consumers asked for more natural ingredients, no animal testing, and more and better information.
Some consumers were looking for technology to provide them with better, more personalised information in this category. Said a respondent from the UK: “There should be the opportunity to have an immediate, face-to-face consultation with a pharmacist using the Internet or VoIP [Voice-over Internet Protocol] video phone.” And a consumer in the Netherlands wanted “to be able to make a profile indicating my skin type so that I can get a customised overview.”
Many respondents wanted the ability to test products in some way before purchasing them. Some also suggested having online links to websites that provide more information about each ingredient in a particular health and beauty product.
Convenience and personalisation were also common themes. One US consumer suggested that retailers offer customised product solutions: “This is one area where having so many choices has become overwhelming. I love the idea of complete packages based on personal needs.”
Consumers also expressed concern about the amount of packaging used for many health and beauty products. Said one French respondent: “Less packaging for the beauty products or the ability to return the empty packing to the store for re-use.”

Conclusion and recommendations
Companies need to anticipate changing consumer behaviour across a number of dimensions:

Shopper dialogue
Establish and maintain a true two-way dialogue with individual consumers. They will expect to have a true dialogue with companies – as long as it is relevant and brings them value. They will expect customised communication and in return they will provide valuable information about their true needs and preferences. Current shopper concerns relate to things like product issues (quality, availability), accessibility and navigation, packaging and information labelling as well as price perception. Take advantage of emerging technologies as consumers will increasingly use all kinds of new, especially mobile, technologies during the buying process.

Information sharing
Consumers increasingly research their purchases across various channels and they expect this information to be readily available, adequate and consistent. Manage consumer information (personal profiles) effectively. Consumers are willing to share information as long as they can trust that this information is being treated in a respectful manner and is translated into relevant offerings and promotions, fully in accordance with consumers’ wishes and needs.

Synchronised production
Personalise your offerings and be able to deliver. Consumers are increasingly expecting and appreciating personalised products and services. In some cases, this requires different scenarios to effectively and efficiently synchronise the actual individual demand with the capabilities to produce, customise, assemble, fulfil and/or service these demands.

Integrated logistics/home delivery
Extend your distribution chain to the consumer’s home. Consumers will increasingly order online and they expect these orders to be delivered to their homes. Consider new integrated approaches for streamlining neighbourhood services. A significant proportion of consumers are prepared to use neighbourhood pick-up facilities for online orders. Consumers also indicated that they want additional services around the product (such as on-site guidance and installation). Based on a broader set of consumer needs, this could provide a basis for further integration of different services (for example, postal service, health care, social services, parcel services) into a new neighbourhood services and distribution model.

Sustainability
Address sustainability in a serious manner and communicate about it. Consumers are concerned about things like global warming and CO2 emissions and they will take this into account when making buying decisions. A company’s ability to offer its products and services in a sustainable manner will be input for both public opinions and personal judgements. But be aware that consumers are not willing to pay much extra for products that meet their sustainability requirements.

Company culture and behavioural changes
Be open for new ways of working – driven by consumers. Consumers appreciate the value of innovation, so make sure that your solution and product development is driven by true consumer needs. And, if possible, involve consumers in your R&D process using new consumer technologies.

Kees Jacobs is a principal consultant in the Manufacturing, Retail and Distribution global Sector at Capgemini. Brian Girouard Capgemini’s Global Consumer Products & Retail Segment Leader. The full report on which this article is based can be downloaded from www.capgemini.com.