Understanding Today's Consumer

We are all consumers and our needs and wants are constantly changing. Every year reports are produced on how consumers are changing and how business owners need to change to reflect those needs and wants. The Trend Report1 is a good indicator of the relevant consumer trends, and the 2014 report can be summarized as follows: • Status seekers. Over the last 5 years it has not been acceptable to flaunt success in downturned economies, even though some of those economies may now be stronger. Frugality has changed and status seeking has changed to reflect those new values. This may not result in a consumer purchasing a new Porsche or expensive luxury items, but it will be reflected in consumers being prepared to pay more for premium culinary food offers. • It is all about you. Of the consumers interviewed for the Trend Report, 47% mentioned that they were willing to share their location via a mobile device and to receive information via that device. This goes against the same research that indicated that 82% believe companies have too much information on us. It highlights that when there is a perceived benefit, consumers are willing to participate. It indicates that culinary tourist destinations can invite consumers to engage with them via their mobile devices. • Local love. Businesses that champion local issues and promote local products will increase in their perceived importance in consumers’ eyes. Of the consumers interviewed, 61% felt local companies should take a bigger role in local communities. • Guilt-free consumption. Consumers, and especially culinary tourists, expect more ethical and sustainable consumerism. Of those surveyed, 93% want more of the products and services they purchase to support social or environmental causes. As a result we have seen McDonald’s announce that it is joining forces with the Alliance for Healthier Generation and changing their food offer to include salads and fruit. Locals, an espresso coffee bar in Auckland, New Zealand, is a ‘pop up’ bar at weekends where consumers are asked to bring canned food for donation to the community and in return they get a free cup of coffee. The challenge for many farmers, growers and tourism operators is to understand how these global trends can be translated to the new culinary tourist at a local level and to identify their needs and wants. The term ‘food tourism’ is confusing in its own right and many people confuse this with ‘gourmet tourism’. According to the World Food Travel Association, gourmet tourism only makes up 8.1% of food tourism. Gourmet tourists are looking for the true authentic experience and are often prepared to pay more for that experience. Food tourists are interested
in food experiences; they lack the same amount of knowledge as gourmet tourists and are keen to learn more about food. Food tourists are prepared to learn. The lesson for tourism operators is to make sure they know their target consumer. Talking down or up to the tourist will be offensive; the operator may be perceived as a food snob in the eyes of the food tourist and they may never come back to that business or region again. According to the ICTA and ICTD ‘State of the Culinary Tourism Industry Report’2 there are 13 different types of culinary travellers. These tourists can be segmented as follows. 1. Adventure travellers; those travelling far and wide looking for food adventures. 2. Ambiance travellers; those looking for the experience rather than a specific food item. 3. Authentic travellers; they want the real thing. 4. Budget; money is a key issue. 5. Eclectic; those looking for a broad range of offers outside of the pure food offer. 6. Gourmet foodies; the top-end travellers. 7. Innovative travellers; those looking for new food ideas. 8. Localists; they want locally produced and prepared foods. 9. Novices; those new to food adventures. 10. Organic food consumers. 11. Social food travellers. 12. Trendy foodies. 13. Vegetarians. The top five tourist types in ranking are localists, novices, eclectic, organic and authentic. Tourists also include backpackers who may also work on the farm and Willing Workers On Organic Farms (WWOOFers) who will mostly be overseas young travellers who are working their way around a country. These ‘tourists’ may require accommodation and food, but are still part of the culinary tourist mix. They are in a particular location because they want to learn about organic food production and they can share ideas as well as time in developing a farm. They are often available at harvest time to help with a crop. What is Local? One of the most common questions we are asked by our clients is for the definition of ‘What is local?’ The dictionary definition is ‘somewhere near’, which does not help when developing a culinary tourism package based on local food journeys. One major food retailer promotes that local food is food that is delivered to the store within 24 h. Experience Renewal Solutions Inc. in a report in 2009 titled ‘On-Farm Marketing in Ontario –2009’3 carried out a survey to try to define ‘local’. Their survey of Canadian residents in the province of Ontario resulted as follows: • 52% questioned on what is local, said food from the province of Ontario; • 36% said from the county; • 95% from Canada; • 3% said from North America; • 1% other. The same survey revealed that 79% of the time-poor shoppers do not have the time to source local food; an example of the ‘time poor society’ in which most western societies live. While discussing the concept of ‘local’, it is worth emphasizing that the current indicators based on observations carried out in tourism in Australia are that for every $1 spent locally by locals, $4 stays within the community. When a tourist from outside of the area spends money on local products, $7 stays in the community. Research carried out by Tourism WA4 in Australia indicates that if a tourist stops in a town or small rural community they are likely to spend Aus$110 with local businesses during their stay in town. The concept of ‘Shop Local’ is about the financial aspects as well as the emotional aspects of the business. Apart from the segmentation mentioned above, there are also two other groups of culinary tourists that are based on age that also need to be considered. The first group are the ‘Baby Boomers’ and the ‘Greying Tigers’, those born in 1964 or before, who are now either facing retirement or who have already retired and are searching for rural experiences. Many of these tourists have paid off their mortgage and have a large disposable income. They are looking for quality experiences and this includes what and where they eat. They are especially looking for a quality experience when they visit food tourism destinations although they may not define themselves as food connoisseurs. They are often eager to promote good eating habits both to their peers, children and grandchildren and can become strong advocates on where the younger generation should visit during their vacations. The second group, in most western countries, and a key target for all retailers, is the ‘Generation X’ woman. The 35 year old Gen X woman has more spending power that any other age profile and is often health conscious and wants to understand more about what food she eats.