Business Tips

Consumer Behavior

One significant behavioral trend of Sri Lanka consumers is the focusing on 'real' needs, not just sheer, indulgent wants. Hence, marketers of essential products and services would have experienced steady demand, while those of non-essentials would have experienced a lower growth.

Another trend is the attention given to the needs of children and not letting them suffer. Many parents have foregone their interests and given priority to the children, in terms of education, recreation, clothing and other requirements. Thus, demand for children's educational services and goods, clothes and accessories have remained steady.

The older people have brand loyalty and prefer to continue using the same products they have always used. They also believe in saving and cutting back on waste. The new generations on the younger adults prefer to experiment with new products and also like to spend and save less.

There is a significant demand for retail brands. These retailer brands are priced lower than manufacturer brands and offer great value to customers.

Further, an increasing preference for natural and herbal products is also observed in Sri Lanka, for example, natural cosmetics and personal care products.The growing health consciousnessis manifested in the trend for natural, traditional and herbal foods and beverages. Health and fitness service businesses can also expect a boom.

In the service businesses, the key word is “simplicity”, which is applied in many areas such as simple and cost effective restaurants, hotels, holiday resorts and hair dressing salons.

In sum, investors need to understand these modern consumer buying trends and adapt their marketing strategies accordingly.