Consumers are now "risk averse" Future Foundation tells Wine Vision

By Richard Siddle

Published: 18 November, 2014

Technology and changing society has made consumers increasingly "risk averse" and more conscious of their behaviour which has direct implications for the wine industry, according to Barry Clark of the Future Foundation.

He told Wine Vision that younger consumers, the so-called Generation Y, were far more cautious than older generations as access to smart technology has made them more aware of the consequences of their actions.

Sobriety in society was now becoming the norm, he added. Not just in the amount of alcohol people are drinking, but in their willingness to go out on a limb and do things they know are risky.

He pointed to the rise in the use of health monitoring mobile phone apps where people can track daily what they are eating and drinking.

Hence the emergence of retailers and businesses that give consumers effectively "curated lists" that consumers know they will like, often based on their own past shopping experience, where there is no risk in what they choose to buy.

This is best shown in how we choose to travel and go on holiday, stressed Clark. Nearly 75% of UK consumers will research thoroughly the locations where they want to go on holiday and how to get there before committing to going.

Yet the world of wine appears to offer an infinity of choices by comparison, he added. A search, for example, on the Sainsbury's website for "wine" comes up with some 796 options.

The Future Foundation has dubbed this change in consumers as the "end of adventure" where they will go out of their way to avoid being disappointed.

But there was still opportunity, said Clark, for retailers and wine businesses to "manage" consumer choices by offering them elements of surprise in what they are buying providing the environment is somewhere they feel comfortable in. Hence the website or retailer knows what it likes to allow them to "chance upon" apparently spontaneous choices.

The challenge for business is to be able to find the "algorithm of surprise" to attract consumers in.

This new "risk adverse" consumer means it is now far easier for governments to introduced legislation and measures that ultimately control the way we behave. Hence the constant flow of messages around problem drinking means it is easier for a government to introduce tougher drinking laws with little kick back from the consumer.

Clark also warned governments are now far quicker and open to the idea of introducing "controlling" measures that have been successful in other countries. Like the apparently successful anti tobacco packaging in Australia is now likely to be introduced in other western countries.

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