At every level of the consumer pyramid, the challenge is to present a proposition which represents 'value.'
Deep consumer insight and organizational agility are key to meeting needs at the bottom end of the pyramid.
At our meeting in December 2011, by contrast, there was a consensus that consumer behavior is becoming more predictable.
At every level of the consumer pyramid, the challenge is to present a proposition which represents ‘value’ – the point as expressed by one executive is that: “you can’t cheat the consumer.” Another commented: “if you provide a reason to purchase, give value for money, you can grow and get market share.”
At the luxury end of the market, companies noted that the consumer continues to evolve and there are sometimes shortages of luxury products due to high demand.
Consumers appreciate quality and brand experience more and more, putting pressure on manufacturers and retailers to get both the value proposition and the retail environment right.
By contrast, many of the companies targeting the mass end of the market seem to be finding it harder to make it work — create affordable products with a compelling value proposition and achieve margin, in an increasingly high cost environment.
Whatever level of the pyramid, everyone agreed that product innovation is key, particularly for premium and that consumers are not just loyal to brands, but to ‘new.’
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