How non-essential brands are using digital shelf intelligence to thrive in turbulent times
With inflation skyrocketing and consumer confidence spiraling down a black hole, how can non-essential brands use e-commerce to not only stay afloat but THRIVE in these turbulent conditions?
McKinsey reports that rising prices are the #1 concern in Europe right now and predicts that spending on non-food discretionary purchases will continue to sink. The current climate is daunting for categories like beauty, fashion, electronics and other so-called ‘non-essentials’. But we can take a cue from premium brands like Apple that have stayed true to its values, even achieving an impressive record Q3 sales in 2022 despite challenging economic turbulence like inflation and supply chain constraints. (No doubt the recent launch of the new iPhone 14 will help perpetuate their impressive revenue growth.)
4 lessons from premium brands for thriving in a turbulent economy:
- Hone your core values while embracing new trends. What part of your identity is timeless and where do you need to evolve?
- Resist aggressive discounting. Use best in class media to demonstrate your value and exclusivity.
- Keep your customers close. Know your audience and use their language when you describe your products.
- Remain agile. Keep on top of your data so you can identify problems and grab opportunities when they come.
Why you need to resonate with shoppers by reflecting their values
The global economy may be in upheaval, but brands can stand out by demonstrating their values and purpose.
A recent global study showed that most consumers don’t believe companies today have a clear and strong purpose (only 37% do). But check out what happens when they do…
- Customers are 4 times more likely to purchase from a brand with a strong purpose.
- 94% of consumers said it is important that the companies they engage with have a strong purpose
Our number one tip for brands wanting to survive the current whirlwind of inflation and supply chain nightmares: resonate with shoppers by reflecting their values in your own purpose and vision statement
Case study: Home Appliances
Home appliance brands are thriving in the current economy. Here’s why…
The home appliance category has proved impressively resilient in light of rising global inflation and a doom-and-gloom cost of living crisis that’s seen most shoppers think twice about non-discretionary purchases. While a cloud looms over many consumer categories, the sky is clear for home appliances. In Italy alone, large household appliances closed 2021 with a +18.8% increase in sales, with highest growth in the washing sector. Top qualities sought: performance, energy efficiency and durability.
We’re increasingly seeing that the most successful brands are putting their consumer values front and center in their digital shelf strategy. Driving sales is no longer only about price, but also value. Premium brands like Whirlpool and Samsung are effectively using persuasive media that pushes the benefits and values that their customers care about most.
Our top tip for all brands, whatever your category: optimize your images with text that reflects the benefits of your products that are at the top of shoppers’ minds. Is your product more efficient? Better for the environment? Safer? More hygienic? Tell your story with your product cards and benefit from the power of above the fold content that shoppers see first.