For the last eight months, consumers have remained steadfast in their concerned-but-optimistic temperament. They expect economic impacts to be short-lived, and, as a result, they aren’t materially changing their spending behavior. When compared to macro indicators, like consumer spending and retail sales, it tracks.
What doesn’t track, however, is the stark shift in future priorities. In the 12th edition of the US Future Consumer Index, more consumers than ever before identify with “Affordability First.” So, how can consumers remain the same and change all at once? My assertion is it’s not concerns or behaviors at play here, but rather a new meaning for affordability, brand loyalty and trust.
With these core issues redefined, retailers and brands will need to pivot operations accordingly to drive agility and efficiency across price, product and data. And AI is the name of the game.
Pricing and consumer affordability: It is what it is … or is it?
Consumers are feeling the challenges of economic conditions and rising prices. However, in a story much the same as we saw in our last edition, there’s a grin, bear it and this too shall pass mentality.