Lauren Fernandes, Global Director of Thought Leadership, NIQ, shares her top consumer sentiment-driven strategies.
Promote with purpose
Acknowledge that there is a concerning value and volume slowdown occurring. As inflation decelerates, the slowing of value sales growth will no longer hide low or declining rates of volumetric consumption. Respond strategically to avoid over-promoting to support your bottom line.
Maximise assortment
Recognise that there are now hybrid views on the concept of “value”. Financial polarisation between affluent and vulnerable consumers is driving an expanded search for value options, blending quality and affordability uniquely. Anticipate demand for a new echelon of affordable product assortment in 2024 (and beyond).
Innovate to stay relevant
Understand that innovation growth should be targeted to support both value and volume increases. Companies who have continuously innovated have benefitted the most during times of market slowdown. Innovation isn’t only for premium-positioning, and companies will need to harness “value-driven” pursuits to breakthrough.
Reach consumers where they are
Remember that consumers move fluidly across channels to fulfil their needs. The shopping game continues to change—remapping where consumers discover, try and buy and who holds the cross-channel power. Embrace channel nuances to reach consumers who are seeking category staples around the world.
Make shopper-centric decisions
Personalise your approach to providing value to key consumer segments. Consumers are under pressure. Unemployment rates remain steady, but wages continue to lag behind inflation rates. As factors like global crises (and conflict escalation) rise to consumer consciousness, expect heightened competition for a smaller pie of consumer spending.
Takeaways…
Ultimately, any assessment of consumers’ outlook for the year is highly nuanced. The last four years (or longer) have reminded us that the global consumer ecosystem is heavily influenced by both personal circumstances and major societal change.
Headed into a year saturated with worldwide elections and multiple other disruptions and factors — such as escalating conflict, extreme weather events, supply chain hurdles and more — it’s never been more important to seize on growth opportunities aligned to consumer behaviour shifts.
Daily consumer decision-making and spending is rarely done in isolation of broader socio-economic factors.
Companies who succeed in capturing demand this year will need the broadest and fullest view of how people earn, think, plan and spend their resources.
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