After decades of low inflation, consumers are grappling with rising living costs, prompting shifts in priorities and preferences. This report delves into four major consumer goods industries – apparel, beauty and personal care, drinks, and food – to unpack the nuances of “affordability and value” across product categories. The varied perspectives empower companies to refine strategies and thrive in the new reality where consumers feel the squeeze but remain discerning.
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This report comes in PPT.
The apparel industry stands at a juncture where it must weigh up the allure of cheap, fast fashion with the growing appeal of ethical alternatives that offer higher quality, value and profit margin per product. Instead of racing to the bottom, apparel players must differentiate themselves by providing high quality and durability, and help consumers achieve affordability through resale and reuse options.
Rather than compromising on quality to cut costs and reduce prices, beauty and personal care players need to focus on providing affordability and value through simplicity and multifunctionality. This allows consumers to save by buying fewer products and embracing self-care and uncomplicated beauty regimens, while also projecting brand value in terms of quality, purpose, and transparency.
The shift in drinking occasions towards the home presents opportunities for brands to innovate and cater to new consumer values, routines and occasions. This necessitates beverage companies to balance price, pack and channel mix whilst also reigniting experiential consumption through both physical and digital socialisation occasions.
It is not “cheap” food that consumers are after, even in times of financial strain. Therefore, food companies need to go beyond discounts and price promotions and focus on innovating, leveraging technology, and cultivating strategic partnerships to deliver cost-effective products that align with consumer values, encompassing quality, convenience, health, and sustainability.
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