While consumers have been tight with their spending, Circana research shows this is about to change in 2025 with economic pressures easing.
It presents a chance to change the conversation from price and affordability, however, consumers will take time to shift from their cautious mindset, says Daniel Bone, Insights director Australia.
“When we talk about changing the conversation we’re talking about value and moving the dial towards benefit-incentives rather than only price incentives,” he explains.
“That’s how Australians determine value for money. It’s about price. But equally about benefits that signify quality.
“Changing the conversation helps protect brands against ongoing price sensitivity and also allows us to create permission-to-spend in more creative ways.”
Circana’s advice to brands and retailers to insulate against price sensitivity is to provide ‘permissibility platforms’ such as:
• Indulgent Insperiences—bringing out-of-home experiences into the home
• Amplifying affordability and inspiration—showcasing value with inspiring benefits; evolve the conversation beyond price
• Currency-of-convenience—finding the sweet spot between creativity and convenience for home-cooks
• Appealing (non) attributes—leveraging the trends resonating with a sufficient consumer audience e.g. sugar-free or high protein
• Blurring boundaries—blurring category and channel boundaries to create excitement
• Social sensations—social media currency contributing to outsized growth for brands
Technology will be another focus for brands and retailers in 2025 including the power of data and the need to harness it with greater precision.
“Everyone has access to data, however, it’s the quality of the data and how brands utilise it to deliver elevated customer experiences that will set the competition apart.
“AI will continue to play an important role in supporting productivity and creating opportunities for efficiency gains including assisted workflows in retail operations and marketing activations.”
