This issue of Time & Trends explores how to compete in a transforming economy, which requires re-assessing nearly every consumer-facing business process, including product development, advertising, pricing, promotion, merchandising and assortment, to ensure alignment with shifting consumer and business priorities – and with far greater frequency than in the past, given the pace of market change.
Select Findings
- Over the past year, consumer change has been faster, more frequent and less predictable than at any other time in recent history
- Escalating prices have bred exceptionally high price sensitivity, driving declining demand across multiple categories, growth in private label, trial of lower-priced brands and accelerated channel migration
- Long-standing consumer purchase drivers, including convenience and health and wellness are losing some momentum; consumers are foregoing ultra-convenience, and some shoppers are unable to afford healthier foods
- Consumers are increasing purchases of basic ingredients and meal components due to reduced restaurant spending but are decreasing purchases of “non-essentials”
- Changes in consumer shopping and purchase behavior vary widely by segment (eg. income, presence of children, lifestage)