TABLE OF CONTENTS
Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Synopsis 2
THE FUTURE DECODED 16
INTRODUCTION: Authenticity reflects a combination of intrinsic and extrinsic product and marketing features shaping consumer perceptions 16
TREND: Authenticity reflects the confluence of a number of major consumer trends influencing what product features that shoppers desire 20
TREND: The notion of authenticity is also under threat from several forces 34
TREND: The desire for authenticity is reflected by the continuing growth of specialty food and beverage lines 38
INSIGHT: Authenticity cues emphasizing tradition and heritage are likely to resonate amid wider ‘Societal Pessimism’ 42
INSIGHT: Authentic credentials will appeal to individualistic consumers’ desire to choose self-congruent and personally expressive brands 49
INSIGHT: Origin and localism are important trends in isolation, but are heavily linked with authentic brand or product credentials 56
INSIGHT: Quality consciousness among more discerning consumers has accentuated the aura of authenticity 74
INSIGHT: Production methods and processes, including ethics, are strongly aligned with authentic brands because more discerning consumers now want to know the details 83
INSIGHT: The additional aura and cache that authenticity can impart on brands has added relevance in today’s economic environment and highly competitive markets 92
INSIGHT: There is a disconnect between the perceived appeal of authenticity led marketing claims and the influence of such claims on consumers’ product choices 97
ACTION POINTS 104
ACTION: Make authenticity core to a product rather than a contrived add-on tag 104
ACTION: Incorporate and leverage geographical provenance where relevant 118
ACTION: Embrace tradition for ‘old world charm’ where relevant 122
ACTION: Provide consumers with an ‘in situ guarantee’ with marketing communications and experiential marketing 127
APPENDIX 128
Methodology 128
Further reading and references 129
Ask the analyst 131
Datamonitor consulting 131
Disclaimer 132
TABLE OF FIGURES
Figure 1: Authenticity is most easily construed as the combination of intrinsic and extrinsic product and marketing features 16
Figure 2: Intrinsic factors of authenticity are threatened or undermined by modernization and economics 17
Figure 3: Extrinsic factors must support rather than replace intrinsic factors of authenticity to create a ‘synergistic branding effect’ 19
Figure 4: Authenticity has become a highly topical theme in commercial and cultural discourse because it reflects the confluence of numerous consumer trends 21
Figure 5: Authenticity reflects, in many instances, the antithesis of contemporary developed societies 23
Figure 6: Consumers’ self-identity—which is multidimensional—can be re-enforced by authentic products 25
Figure 7: There are multiple consumers issues influencing the wider interest in product origin 26
Figure 8: Experiential consumerism and premiumization represent key trends driving ‘authenti-seeking’ consumer behavior 29
Figure 9: Three important commonalities represent the crossover between ethical/environmental consumerism and authenticity 30
Figure 10: Authenticity is strongly aligned with the need to create more compelling and distinctive brand auras to help achieve marketplace differentiation and success 32
Figure 11: Authentic positioned products are now threatened by recession and changing consumers tastes and social trends 35
Figure 12: Globalization and its wider connotation impinges truly authentic products 37
Figure 13: Etsy.com reflects what is likely to become a growing phenomena in the future: the growing availability of specialty products made available through the internet 41
Figure 14: The issues that contribute to consumer concern and related societal pessimism vary by region 42
Figure 15: Dissatisfaction with the direction of society is prominent in many developed consumer markets and partly accounts for the positive halo attached to brands and products with genuine heritage 44
Figure 16: Societal Pessimism has been evident in many nations throughout the last decade, proving that it is a mindset that transcends more short-term economic sentiment 46
Figure 17: Consumers’ interpretation of authentic will vary by territory and is not always dictated by a rich heritage 48
Figure 18: Post materialistic values associated with most develop markets also drive the more proactive search for, and allure of, authentic products 50
Figure 19: Consumers in emerging economic powerhouses are more eager to opt for brands aligned with their personal values, although it is an apparent trait elsewhere too 51
Figure 20: Individuality and self expression are important values for global consumers that more authentic brand propositions are well placed to capitalize on because uniqueness is an important part of the perception of authenticity 53
Figure 21: The importance attached to knowing the origin of groceries by global consumers reflects, among other, a growing interest in re-connecting with the manufacturing process 58
Figure 22: Consumers across the globe perceive that they have become more pre-occupied with knowing the details about grocery product origin in recent years 60
Figure 23: Australians in particular are guided by the ideology of ‘buying local’ 63
Figure 24: Russian, Chinese and Saudi Arabian consumers are most likely to be making a conscious and genuine effort to purchase food and beverages produced locally 65
Figure 25: Consumers are more accepting of imported alcoholic drinks and in many instances inspired by such offerings, which is why locally produced credentials are deemed less influential by drinkers 67
Figure 26: Consumers are most trusting of their own country’s food and ingredients 70
Figure 27: The overall influence of origin is moderated by the place, the product and the consumer 73
Figure 28: Consumers are actively looking to trade up but find it difficult in recessionary conditions 75
Figure 29: Commonalities exist between authenticity and premiumization on a consumer and product level 76
Figure 30: In 15 out of 17 countries, shoppers attach more importance to in-store product quality rather than lower prices in general 78
Figure 31: Women in Western Europe and the US are more likely to follow experiential consumerism over materialism 80
Figure 32: Men are likely to seek tangible possessions In emerging economies 81
Figure 33: Consumers are generally attracted by the idea of knowing about product details via product packaging 84
Figure 34: Global consumers are more interested in ethical/environmentally-friendly purchases 86
Figure 35: Global consumers have become more conscious about their personal impact on the environment in the last few years 86
Figure 36: The importance of ethical groceries is low in the Netherlands and Japan 90
Figure 37: Under sustained recessionary pressures, some consumers have little option but to trade down on brands and categories that offer less value 93
Figure 38: Datamonitor’s Recession and Recovery portal allows industry players to continually identify consumers’ changing brand orientations as circumstances change 93
Figure 39: Consumer attitudes towards products marketed as ‘authentic, home-made or original’ are largely positive, albeit with notable variances by country 98
Figure 40: Outside of the Asia Pacific region and other emerging markets, consumers perceive themselves to be somewhat desensitized to authenticity related claims 101
Figure 41: There is a disconnect between the perceived appeal of authenticity led marketing claims and the influence of such claims on consumers’ product choices 103
Figure 42: The broad use of the word ‘authentic’ can be detrimental to the tag and its notion 106
Figure 43: The fact that private labels are explicitly branded as authentic reflects the diminishing impact of explicitly claiming to be just that 107
Figure 44: Superficial uses of authentic markers may meet with consumer disproval 108
Figure 45: Strong brands create a credible authentic meaning of their own 109
Figure 46: Company or brand size impacts authenticity credibility, but the relationship is not necessarily linear 110
Figure 47: Using the right ingredients is as important as absolute quality 112
Figure 48: These brands all make authenticity-based claims owing to notable ingredient and processing credentials 113
Figure 49: Green works shows the potential for natural home cleaning products 114
Figure 50: Ethical approaches must vary by brand / company size 116
Figure 51: Incorporate clear authenticity cues into packaging is often done in alcoholic beverages 117
Figure 52: Geographical provenance can be compelling but problematic 119
Figure 53: In the UK, Coors Brewers is promoting Carling as a regional beer, emphasizing provenance as part of its 'British barley' strategy 120
Figure 54: In the US, Meijer’s revamped Gold Line private label range leverages the products’ unique origin 121
Figure 55: Inspiration from history creates one of the most credible heritage-based authenticity narratives 123
Figure 56: Marketing campaigns that remind consumers of brand heritage are authenticity appropriators, but it must be done in a modern and lively manner for contemporary relevance 124
Figure 57: Jim Beam proudly proclaims the seven generations of brand heritage on the brand website 125
TABLE OF TABLES
Table 1: Specialty food and non-alcoholic beverage sales (US$ millions), in 15 countries across Europe, Asia Pacific, South America and North America, by country, 2004-2014 38
Table 2: Consumer survey: the degree of satisfaction with the general direction of how things are going in their country of residence, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 44
Table 3: Consumer survey: the importance attached to choosing brands which match attitudes and outlook on life, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2009 51
Table 4: Consumer survey: the importance attached to individuality and self-expression, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2008 53
Table 5: Consumer survey: the importance attached to individuality and self-expression, in 15 countries across Europe, Asia Pacific, South America, North America by country and gender, 2008 54
Table 6: Consumer survey: the importance attached to knowing the origin of grocery products, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2008 58
Table 7: Consumer survey: the perceived change in importance attached to knowing where groceries come from, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 60
Table 8: Consumer survey: the importance attached to choosing locally produced groceries, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2008 63
Table 9: Consumer survey: the propensity to buy locally produced food and drinks, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 65
Table 10: Consumer survey: the importance attached to whether alcoholic beverages are locally produced in influencing drinkers’ choices, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2008 67
Table 11: Consumer survey: trust in food products and ingredients imported from other countries, in 15 countries across Europe, Asia Pacific, South America, and North America by country, 2008 70
Table 12: Consumer survey: the perceived influence of product quality in deciding where consumers do most of their grocery shopping, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 78
Table 13: Consumer survey: stated importance of materialism and experiential consumerism, in 15 countries across Europe, Asia Pacific, South America and North America, by gender and country, 2008 81
Table 14: Consumer survey: the perceived appeal of information on product packages that users to see where and how a food or beverage product was made, in 15 countries across Europe, Asia Pacific, South America and North America, by country, 2008 84
Table 15: Consumer survey: the changing importance of consumers’ personal carbon footprint/individual impact on the environment, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 86
Table 16: Consumer survey: the importance attached to buying ethical or socially responsible products, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2008 87
Table 17: Consumer survey: the importance attached to buying ethical or socially responsible products, in 15 countries across Europe, Asia Pacific, South America, North America by country, 2008 88
Table 18: Consumer survey: importance attached to choosing Fairtrade supporting grocery products, in 15 countries across Europe, Asia Pacific, South America and North America, by country and gender, 2008 90
Table 19: Consumer survey: agreement about whether consumers are giving up some of their favourite brands to save money in light of the economic downturn, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 93
Table 20: Consumer survey: perceived similarities between store brand products (e.g. supermarket own brands) and market leading famous brands, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country and FMCG product sector/category, 2009 95
Table 21: Consumer survey: the appeal of any food or drink marketed as "authentic, home-made or original", in 15 countries across Europe, Asia Pacific, South America and North America, by country, 2008 98
Table 22: Consumer survey: the appeal of any food or drink marketed as "authentic, home-made or original", in 15 countries across Europe, Asia Pacific, South America and North America, by country and gender, 2008 99
Table 23: Consumer survey: the perceived influence of the claims for food or drink marketed as authentic, home-made or original, in 17 countries across Europe, Asia Pacific, South America, North America and the Middle East, by country, 2009 101
