Our industry is constantly having to adapt and react to new trends, changing customer behavior and macro effects – often these are exciting recalibrations that require innovation and new understanding of changing mindsets. But then there are times like these. And, currently, how large sections of society survive the cost-of-living crisis is sadly the biggest story in town.
With inflation set to hit 10% by autumn, economic growth likely to fall and prices continuing to rise, brands – no matter what their category or target customers – will find the cost of living is going to have an impact. So, how should they respond? When value is on everyone’s minds, how do you protect, or even grow, brand value without alienating customers?
- Accessible exceptional:
Even though many people are tightening their belts, the desire for occasional treats will continue. In a more recessionary mindset, moments of indulgence are often seen as legitimate splurges. - Luxury language:
Rather than over the top ostentation, luxury brands can connect better with local markets – shifting from exclusive to inclusive as they connect better with communities. - Sustainable sentiments:
Sustainability is broader than eco and the impact on environment – it also encompasses inclusion, equality and accessibility – all of which are just as, if not more, pertinent in the current economic climate. - Smart frugality:
In this climate, brands can take a different approach to frugality – sharing how consumers in any income bracket adopting this mindset are smart – that managing to do more with less is both a smart and an environmentally-friendly approach to consumerism.
Read the full article linked above to learn more.
