Business challenge
Etos is one of the Netherlands’ largest and most trusted drugstore chains and forms part of global retailer Ahold Delhaize. Founded by Philips in 1919 to support the wellbeing of its factory workers, Etos has evolved into a dedicated health and beauty retailer with more than 500 stores nationwide and an established online presence.
As consumer needs and shopping behaviors evolve, Etos has sharpened its positioning around its ambition to become “The #1 Self-Care Drugstore.” To put this strategy into action, the business needed a clearer understanding of how shoppers perceive its proposition, what differentiates Etos from competing drugstore chains, and how A-brands contribute to customer preference.
Etos also wanted to translate these insights into a stronger story for its suppliers, identifying opportunities for mutually beneficial brand, category, and proposition development.
Solution & Research results
YouGov Why2Buy helped Etos understand the motivations behind shoppers’ retailer and category choices, as well as the role A-brands play within the overall Etos proposition. Insights from YouGov Behavior Change and YouGov Trend Reality provided additional context on the wider forces and trends influencing health and beauty shoppers.
The research found that:
- Amid global uncertainty, consumers are looking for health and beaty products for a greater sense of control and enjoyment.
- Drugstores remain a highly relevant retail channel within the health and beauty category.
- Competitive pricing and promotions are essential expectations, rather than differentiating benefits.
- Etos differentiates itself through the knowledge and proactive advice of its store personnel.
- Etos shoppers place greater importance on health and wellbeing than the average consumer.
- One in five Etos shoppers leave the store with a better product than the one they initially intended to buy.
- Shelf presentation and in-store storytelling also play an important role in the Etos shopping experience.
Together, these findings showed that Etos’ value extends beyond price and promotion. Its combination of staff expertise, assortment, advice, and in-store experience creates a proposition that is particularly relevant to health-conscious, A-brand shoppers
Business outcome / impact
The research gave Etos a compelling, evidence-led story to share with its A-brand suppliers.
Etos shoppers spend over 40% more on A-brands in their total FMCG grocery purchases than shoppers at other retailers; and Etos exceeds shopper expectations on this one. They particularly value access to their favorite brands, Etos’ broad A-brand assortment, and its portfolio of specialist skincare brands. Furthermore, Etos is highly valued for its engaged staff, who drive upsells by giving personal advice to shoppers.
As a result, A-brands account for a 12% higher share of spending among Etos shoppers than among shoppers at other drugstore chains.
By demonstrating the distinctive value of its shopper base, Etos was able to strengthen collaboration with A-brand suppliers and identify shared opportunities for partnership, category development, and growth. The findings were presented at Etos’ Supplier Day, where the session was described by the client as one of the events highlights.
YouGov translated the research findings into a clear and relevant story for our A-brand suppliers. The session was widely regarded as one of the highlights of our Supplier Day, providing valuable insights into the Etos shopper and the importance of the drugstore channel. We look forward to continuing our partnership and building on these insights.