Don’t Fence Me In
March 18, 2008
Single person urban dwellings (or SPUDs) now account for 25% of all Australian households in 2008. More people are trading white picket fences for elevator access. But is the rise and rise of the SPUD being reflected in products and stores? Who is the SPUD shopper and what do they want and need?
While there is, no doubt, a variety of personal circumstances and reasons why a SPUD is a SPUD, one thing is for sure – it’s increasingly about freedom and choice. Don’t fence me in has become metaphorical and physical.
According to geo-demographic survey Mosaic 2008, 51.4% of Australian women are now choosing a singles lifestyle, and up to a quarter will never have children. Meanwhile more and more men are living alone and taking care of themselves – in fact a 2007 study from the US had 71% of men doing their own grocery shopping.
The whole picture really brings into question the traditional view of the ‘generic shopper’ as female, Mum, and buying for family as well as self. The reality is somewhere at the other end of the spectrum for a good proportion of the Australian population.
So, has your company considered how profitable SPUDs could be for them?
Some pointers to optimize your SPUD sales:
THE TARDIS PRINCIPLE
If you never watched Doctor Who (shame on you!), the Tardis is a space craft that is much bigger on the inside than on the outside – a veritable mansion contained in the size of a telephone box. What’s the point? Single Person Urban Dwellings are generally smaller than family homes, and SPUDs need things that maximize the internal space they do have.
Implication – smaller packs, smaller shopping trips
- SPUDs need day to day food and household items like everyone else (except for the nappies and baby food, that is). But is your product SPUD friendly? You won’t find them buying 12 packs of loo paper – no space! You will find them buying smaller pack formats, and items that neatly stack together on smaller-height cupboard shelves or in odd-shaped spaces.
- This begs the question, is your packaging shape the most efficient use of space? Can you make it shorter instead of taller? Does it easily stack in small stacks with other products? There is nothing more annoying to somebody with limited cupboard storage than a product that takes up too much space on the shelf because of some brand agency’s flash of brilliance that said the bottle should be shaped like a cow.
- How else can you cater to space-poor SPUDs? Can you include a branded storage solution gift with purchase that enables it to be hung, or stuck on the back of a door, or a space-saving dispenser, that also serves as advertising / reminder for at home usage? In some categories, if you help them to store it more effectively and visibly, they might use more of it, increasing your frequency. Cleaning and laundry products are ripe for this kind of innovation. Many ‘laundries’ are now part of a bathroom, or behind a kitchen cupboard. Where to put the washing powder when there is only one small cupboard in the bathroom that’s already full of toiletries?
- What about in store? SPUDs are far less likely to be doing big stock-up shops in supermarkets. Smaller top up shops, more often. Because this type of shopping mission is oriented around the perimeter of the supermarket (milk, bread and fresh food runs to the fridges), this is where you are most likely to catch your SPUDs for off-location displays, merchandising and in store media. If you’re a specialist retailer, have you thought about your offer for SPUDs? Obvious problem-solvers like Howard’s Storage World aside, there is surely room for some innovative thinking about how to do more with less space.
- Already, smart suppliers and retailers have recognized the role of the ‘outdoor room’ for SPUDs (and others too!): balcony/deck/patio/courtyard entertaining etc. It’s about extending space outside the 4 walls, and the retail and product opportunities arising from this. Such as décor e.g. shutters through BBQs, BBQ cleaning products, lighting and candles, and bug zappers/pest control such as Mortein and Aeroguard. How can you help your SPUDs with their ‘outdoor room’ or balcony?
THE NEED FOR SPEED PRINCIPLE
Many SPUDs are busy people. Working long hours, trying to fit in eating, exercise, out-of-work interests and social life. There’s a lot to pack in to a 24-hour period. How can you help?
Implication: dinner in five minutes, the rise of outsourcing
- The growth of ready-to-eat meal solutions is indicative of the rise of the SPUD (pardon the pun). Cooking complex meals for one is not a motivating idea when you don’t arrive home until close to 7pm as it is. Given that this segment of the population is expected to soar even further over the next 30 years, the demand for quality, healthy, fast meal solutions will continue to grow exponentially. Yet, the choices are still pretty limited. Soups, pasta sauces, dips or frozen. Time for Australia to take a leaf out of the UK’s book and offer a greater variety of quick, yummy, healthy meal solutions!
- What about cleaning? Speed and convenience rules. Services such as dry cleaning, car washing and domestic home cleaning are growing exponentially. Are these channels you could be distributing in (e.g. bulk cleaning products for service providers)? Or can you provide a better, faster DIY cleaning option for the SPUDs themselves, especially for those that feel ‘unjustified’ having a house cleaner for a small space?
THE OUTTA HERE PRINCIPLE
It goes without saying that many SPUDs spend a lot of time away from home. Working, eating out / drinking with friends, exercising… the list goes on. But are you reaching them outside the grocery channel, where they probably spend the least time?
Implication: away from home channels increasingly important
- Channels such as Foodservice, Entertainment & Leisure and Petroleum & Convenience are growing in importance and patronage. Do you have a clear picture of what the opportunities might be? Assessing new channels involves mapping categories to shopping occasions to shopper types (such as the geo-demo profile of SPUD) to channel types. Then sizing the selected channels for number of outlets and potential value, and comparing the size of the prize to the ease of execution (route to market dynamics) and brand fit. Sometimes there can be BIG wins in looking at channels in different ways based on occasion. Just look at CDs in Starbucks!
- One thing to remember with SPUDs is that while there is a need for speed on the home front, there is also room to help these people slow down and relax. The wine category comes to mind here – or any category / product that enables a little time out and quality R&R.
THE ASPIRATION PRINCIPLE
For many SPUDs, their lifestyle choice is a conscious one, and it’s about freedom, perceived quality of lifestyle, and choices. This can translate into an emotional connection to brands that represent certain choices and freedoms. Can you connect with the key emotional drivers of SPUDs in more meaningful ways to increase your sales?
Implication: SPUD-driven messaging for relevant products and retail offers
- The growth of Howard’s Storage World has been driven by SPUDs for purely pragmatic reasons - SPUDs live in smaller spaces. But what about destination stores and products that are more emotionally driven? Beauty, health and personal grooming products and services, fashion, fragrance, cars, personal technology (mobile phones, iPods, GPS etc.) – all of these can and already do play on messages of aspiration and personal branding. SPUDs are the more likely population group to be actively dating, and they may subconsciously associate your product or service with increasing the perceived value of their ‘personal brand’. If you’re dressed and groomed well, smell good and show the necessary signs of personal affluence and ‘up-to-the-minute-ness’, your marketability goes up, right? The strong category growth of male grooming products in recent years is testimony to this fact. Spending time on the emotional messaging behind your communication, with your target SPUDs in mind, will pay dividends.
- Part of an aspirational lifestyle choice is Rest & Relaxation for SPUDs. In fact, SPUDs are endeavouring to bring this into their daily lives rather than just on special occasions. So, there is a role for day spa products that can be found in pharmacies, supermarkets, and specialty stores. Disposable incomes plus dating = more money to spend on appearance and ‘I deserve this’ (L’Oreal) type pampering products. SPUDS are also gifting these products to other singles (particularly women).
One final consideration here is how you can leverage your in store communication to this group by focusing on the geographical areas where they can be found – and ramping up your occasion-based in-store messaging. Example high SPUD areas: Sydney - Balmain, Pyrmont, Bondi; Melbourne - Sth Yarra, Prahran, Richmond; Brisbane - New Farm, Fortitude Valley; Perth - Subiaco, Northbridge, and so forth.
So, don’t fence yourself in, either – have you considered whether this fast-growing segment of the population can help drive your future sales? If your offer represents more space, more time, more freedom or more quality or life you may have just hit the bulls eye.
Don’t overlook your SPUDs, they could be good for you!