The consumer products divide
Lessons for consumer products companies in the light of income bifurcation

A recent Deloitte survey into buying patterns investigated how income divisions and changes in financial position impact purchase behaviour.  We found that the gap in income between the high- and the middle- and lower-income tiers is widening, and that this divide alters purchase behaviours. This plays out differently per category.


Four recommended strategies for consumer products companies: 

  • Focus on premium or value products. In order to capture market share and accelerate growth in the current climate, in which income gaps are widening.
  • Determine how sensitive your category and portfolio are to changes in consumers' perceived financial position. Understand how improving and worsening financial positions shift consumer behaviours (i.e. what, how much, and where a consumer purchases).
  • Choose the most important levers for effectively dealing with income gaps and a potential economic slowdown. Determine what you think the likelihood is of consumers cutting back on volume vs. switching brands when they perceive that their financial position is worsening.
  • Anticipate and influence consumer needs and behaviours. Adapt your brand, product, and portfolio strategies, resource allocation, and go-to market execution, by category. It is important in order to help you grow.


Understand which brands are winning in this era of bifurcation
Learn which factors drive consumer buying patterns and, in particular, how income cohort and change in financial position impact purchase behavior.

Download the full report and receive a deep dive per category, and learn how to win in your sector.


michiel-van-den-heuvel-110.jpg
Michiel van den Heuvel
Partner – Dutch Consumer Products Lead
T +31 (0)88 288 4542
 

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