Brands need to prepare for Asia’s inflation worries | WARC | The Feed
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Brands need to prepare for Asia’s inflation worries
Across Asia, pandemic uncertainty has receded to be replaced by new consumer concerns about inflation, leading to them shopping less often and looking for cheaper products, a Kantar report suggests.
Why it matters
Kantar Worldpanel’s Anticipating Inflation in Asia 2022 & Beyond report suggests that shopping frequency in most SouthEast Asia markets are unlikely to recover to pre-COVID levels anytime soon and that “protecting and winning each trip will be key as shoppers continue to maximize each shopping trip”.
Marketers need to understand the various strategies consumers use to save money – from simply buying less to trading down to private label or even exiting a category entirely. That means looking at everything from price to pack size to product mix, while also considering how to maintain a new in-store/e-commerce balance.
- Shopping trips are likely to be more planned with fewer opportunities for impulse purchases – which may favour bigger trusted brands.
- Promotions help to generate more spend and trips, so how to use these effectively in each channel will be crucial (and that will depend on category and growth trajectory).
- Innovation can play an important role, addressing unmet needs, for example, or extra product benefits could support a premium price.
“Brands can continue to win shoppers despite inflation by justifying their value, continuing to drive penetration and trial through sustained mental and physical availability and by driving consumption through reinforcing brand relevance to the specific consumer need or occasion” – Alpana Titus, VP foods & refreshment at Unilever SEAT.
Sourced from Kantar Worldpanel [Image: Kantar Worldpanel]
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