Consumers are increasingly seeing entertaining in-home as a viable and desirable alternative to going out to socialise. As they make changes to how they spend, but stop short of cutting back on luxuries which they feel maintain their identities, entertaining friends at home seems a convenient solution.
According to Mintel, almost eight in ten (79%) consumers drank alcohol at the home in the last six months. Besides price concern, other benefits to drinking in the home were recognised, over a third (35%) of consumers consider drinking at home less hassle than travelling to a bar and 27% find it more intimate to drink at home.
These trends translate into opportunities for a wide range of retailers who can help in creating the desirable atmosphere, from alcohol and food, to furniture and technology retailers. Consumers who prefer spending a ‘night in’ rather than a ‘night out’ can be worth just as much to traders. Smirnoff , for instance, have reacted to this trend by providing a wider variety of drinks for the home that in the past have only been available in bars.
So, as consumers stay in to save money they are increasingly willing to spend more on luxury brands to help entertain in the home. As mentioned above, they are not prepared to cut back on all luxury.
The latest research commissioned by the WSTA shows a 30% increase for 2010-11, in the number of regular wine drinkers paying more than £7 per bottle to drink at home: a significant difference from the average price, £4.32, paid in the off-trade.
This change in consumer behaviour represents a real opportunity for the retail sector. In fact, any brand that can help the consumer as a host in the comfort of their own home can benefit.
Lauren Overton
Consumer Analyst
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