Inflation and instability will stay with us at least throughout 2023 and shoppers will need to constantly review their personal situation, adapt and find ways to make best use of their household budget. To master these persistent behavior changes, here are some “temporary truths” for the near future.
#1 Strategize for the struggling – while the number of consumers struggling is increasing, invariably lower prices are not the only solution.
#2 Be incremental to your category – with some categories fighting to stay in the basket, it is important, in particular for leading brands, to bring shoppers back to the category.
#3 Saving gets personal(ized) – there is a need for creativity, making saving meaningful, in close cooperation with the retail channel.
#4 Be where your shopper is – as more consumers are shopping around, being at “arm’s length” is indispensable.
#5 Lead with the heart – despite rational behavior intensifying, brands need to stay emotionally connected: going silent would be a big miss. Investing in advertising and availability will be vital to come out as a winner.
