The consumer market pertains to purchasers who buy products and services for consumption instead of resale.
Usually, consumers are not similar in their choices and buying manners because of various attributes that can differentiate one consumer from another.
The attributes include demographic, psychographic, and geographic characters.
Features of consumer markets based on demographics consist of life span, indigenous background, earning potential, job, educational background, household size, faith, and country of origin.
Characteristics of consumer markets on the basis of psychographic consist of interests, functions, views, ethics, and outlooks.
Attributes of consumer markets on the basis of geographic characteristics include market dynamics, location, population density, and the environment.
Global FMCG firms were functioning in a weak consumer scenario with deflationary pressure in Europe and reducing growth in emerging economies.
According to Graeme Pitkethly, Unilever’s Chief Financial Officer, “We expected tougher markets and we’re finding tougher markets. Consumer demand remained fragile. Volume growth slowed further in the markets in which we operate, with market growth weak in emerging markets, negligible in North America and negative in Europe.”
Experts believe the trend would continue to be volatile in the immediate future. Consumers are asking for more bargains prior to purchasing a product.
The consumption-oriented US economy is not doing too well. According to the Cass Freight Index (monitors freight transactions), freight movement in March 2016 decreased 1.5% in terms of quantity from the previously abysmally low levels of March 2015.
This is the lowest level the index has touched for any March since 2010. High levels of inventories have also contributed to the problem.
The household has reduced their expenditure and decreased their debt. Analysts feel greater spending and lower debts are good for the economy.
A continuous fall in the energy sector investment has also impacted business expenditure. The global economy is in a sustained period of weak growth, which is referred to as the “New Normal”.