Consumer response to first difficult, then recessionary economic conditions and escalating CPG costs has run broad and deep. At-home meal behavior has increased significantly, self-care health and beauty rituals have become commonplace and a myriad of money-saving strategies have been embraced.
The economy has shown signs of improvement over the past several months. The financial markets have made positive movement, housing and credit markets have improved, and gas prices have moderated. Commodity prices have fallen, but manufacturer list prices remain elevated. Instead, promotional activity intensified.
Consumers are fully entrenched in savings mode. To make things more difficult, analysts expect that the deflationary period is coming to an end.
This year will be fraught with opportunity and risk for CPG marketers. The need for strategies which address conservative spending and consumption patterns is high. CPG marketers that deliver will reap great rewards.
This issue of Times & Trends explores current and emerging pricing and merchandising trends that define CPG marketer attempts to serve and satisfy consumers in a recessionary market.
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