McKinsey’s Latest Consumer Trends and What We Need To Do
Marketing is all about knowing your market. What are your customers thinking and feeling, what are their pain points and what can you provide for them that solves these?
A survey released by Mckinsey this week (link in comments) highlighted rising prices as the number one concern for consumers in the UK, regardless of age.
It also showed the majority of consumers will be spending less on Christmas this year than in previous years and that they are increasingly purchasing in discounters to seek value for money.
How does this play out in your business? Do you need to review your pricing, the people you are targeting, or indeed what you are offering them? Can you provide more value for money without reducing the price or impacting your profit? Do you need to consider your routes to market to find ways to be more cost-effective?
Also in the study, consumers plan to stop buying or buy fewer non-discretionary items and switch to less expensive brands in food, cleaning, pet care, and beauty products. In fact, Gen Zs and Millennials are most likely to have switched to different brands and retailers in the last three months. Are you seeing a reduction in your sales in this area? What can you do to engage this audience? What are you currently doing to maintain a relationship with this group of consumers?
Interestingly, whilst consumers plan to stop buying or buy fewer non-discretionary items and switch to less expensive brands, organic and sustainable brands will have a higher share of basket. Many businesses are at the start of their sustainable journey, but it’s undeniable the impact taking a more sustainable approach can have on the bottom line and long term security of your business (more of that in another post). This may be the right time to look at this for your business.
So whichever consumer market you are in, the current trends on consumers are going to impact you either directly or as an impact on the discretionary spend available. Take a temperature check on your consumers – what are they saying? How can you change your offerings, whether that’s pivoting to a new product or service or indeed packaging up an existing offering to create more engagement and sales?
Please message me if this has struck a chord with you and you’d like some support, please contact me