Heading back to normal, did we learn anything from Covid-19?
Do you remember the times where the entire world was in lockdown and our lives flipped on their head? We had to adapt and change our (consumption) behaviour drastically. Basically buying less but potentially better. Back then, did you expect this new behaviour of yours would change again if things were coming back to normal? Or were you convinced it was there to stay?
Well, although it’s ambitious to say this pandemic is behind us, we do observe that we’re heading back to normal. We might not be the same people. We might not consume the exact same things. But we made a turn again in the way we consume products.
It certainly isn’t solely driven by the evolution of the Covid-19 situation, but there is one striking phenomenon that elopes. During the pandemic, limited supply and willingness to frequently shop made us opt for premium products. Premium as non-mainstream, not the usual. The mindset of ‘I won’t buy much, so I can reward myself with higher quality (hence price) products’ was peaking. We were willing to spend more. And the average value of baskets relatively increased. Today, this phenomenon is progressively replaced by a feeling of restriction. And it impacts A-brands and private labels’ plans and strategy.
Price is climbing the decision tree again.
Not that it wasn’t of importance anymore during COVID. But it got challenged by other factors such as convenience, functional claims or emotional benefits. Now price sits on its throne again, and creates opportunities for more affordable products and private labels. It’s a no-bullshit period again. Give them price and bring them added-value.
What does it mean for A-brands?
What does it mean for A-brands? There has been change, but we are also back to pre-covid, don’t you think?
It is highly probable that brands that have created value, that have a distinctive positioning will stay sustainably strong. While brands that haven’t ensured their relevance, and are actively using promo pressure are risking turning into commodity and lose shares.
And you, what is your no-bullshit strategy?
Do you remember your strategy pre-covid? Time to pick it up again and build further on your added value, your innovations and your brand distinctive assets