Consumers are re-evaluating their spending! Ananda Roy of Circana shares how brands can adapt:
- Essentials vs. Discretionary: The line is blurring, with a rise in "transitioning essentials" bought less often.
- FMCG Impact: Core essentials see a small volume dip, while discretionary categories (e.g., household care) see a steeper decline.
- Winning Strategies:
- Innovate: Develop new options (e.g., cooking oil alternatives).
- Promotions & Research: Invest in brand awareness, promotions, and consumer research.
- Differentiate Essentials: Highlight value propositions to maintain brand loyalty.
- Adapt to Change: Understand the evolving relationship between essential and discretionary spending.