It’s that time of year again. Costumes litter the house, pumpkins sit on the porch, and kids are asking, “How much candy will I get this year?” To say Halloween spending is on the rise is an understatement. Like many holidays, Halloween holds great potential for Consumer Packaged Goods (CPG). In many cases, untapped potential. Poor product information management (PIM) can also play a part in losing sales. If you’re a CPG company, don’t get spooked. Here are three ways you can better leverage the season.
#1: Don’t Underestimate Halloween
Sandwiched between back-to-school and the Christmas season, Halloween often gets lost in the shuffle. As Mike Gatti, a senior VP at the NRF, once said in AdAge, “People are standing in line with a pumpkin looking at Christmas ornaments.”
Yet the fact remains, consumers are looking for a chance to celebrate and have some fun. And they’re pulling out their wallets to do so.
The National Retail Federation (NRF) has published their annual Halloween Headquarters survey, conducted by Prosper Insights, to highlight consumer spending. According to the survey, consumers are expected to spend a whopping $8.4 billion on spooky essentials including candy, costumes and decorations. Spending averages out to $82.93 per consumer. This is an all-time high in the history of NRF’s annual survey.
Obviously, the largest purchase category is candy. In fact, 94.3% of Halloween shoppers plan to purchase candy this year. That’s an awfully big chunk of the $8.4 billion overall spend, and a major opportunity for CPG.
#2: Pay Attention to Omnichannel
Halloween shoppers are taking advantage of early-bird promotions both online and in-store as the fall season kicks off. In response, CPG companies are ramping up their promotional execution by creating seasonal packaging, producing more ads, and placing more in-store promotional displays. Yet to grab hold of sales in today’s market, CPG’s can’t ignore channels. They must ensure omnichannel product availability to truly succeed.
Though discount stores and supermarkets remain the leading Halloween candy hot spots, the market is starting to shift. According to NRF’s survey, the categories showing the largest growth this year include home improvement stores (32.1%), online (26.1%), and department stores (22%). Shoppers are also turning to catalogs for candy, costumes and decorations.
Like vampires in the night, the majority of Halloween shoppers (66.1%) only appear for a few weeks during the month of October. Therefore, product availability and product information consistency across channels are major success factors for retailers and CPG manufacturers alike.
#3: Consistent, Available Label Information is Key
CPG companies need to know that along with spending more than ever, consumers are paying closer attention to what’s in the candy they’re purchasing. Therefore, updated and accessible information on gluten content, allergens and ingredients is essential across all channels.
Let’s be clear. Food allergies are a life-altering and potentially life-threatening disease, and a growing public health issue. In the U.S., one in 13 children has a food allergy – that’s roughly two in every classroom. For these children, even a tiny amount of allergen has the potential to cause a severe reaction.
Many popular Halloween candies contain nuts, milk, egg, soy or wheat, which are some of the most common allergens in children. Additionally, many miniature or fun-size versions of candy items contain different ingredients than their full-size counterparts. When it comes to Halloween candy, parents want product information at their fingertips. When parents search online or shop at their local store, they want to quickly and easily evaluate the food items they are putting in their physical or virtual shopping carts. Brands must keep up with this demand for on-the-spot product information.
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For manufacturers of consumer packaged goods, managing product content and publishing it across multiple channels is necessary for success. Not just during major holidays like Halloween, but year round.
Download our PIM Value Creation for CPG Solution Brief to learn more about how EnterWorks can assist CPG’s in alleviating product data challenges.