Engaging the independent consumer

SUITS THE C-SUITE

- MARIA KATHRINA S. MACAISA-PENA

Consumers today are more conscious of their choices and prioritize quality products and services at reasonable prices.

They are not merely following trends; instead, they are actively seeking out what aligns with their needs and values. This shift toward a more independent consumer was highlighted in the evolving nature of consumer engagement, where the emphasis is now on creating meaningful connections through data, technology, and genuine human interaction.

According to the EY Future Consumer Index, which provides insights that reflect the current mindset of consumers and the implications for businesses aiming to meet their needs, understanding consumer behavior is crucial for brands and retailers looking to adapt to these changes. By adapting to the evolving consumer preferences discussed below, business can form strategies they can implement to stay relevant in a competitive market.

A SHIFT IN CONSUMER PRIORITIES

Consumers are increasingly viewing private label products as viable alternatives to branded items, often perceiving them as comparable in quality rather than just cheaper options. This trend is evident as more consumers express satisfaction with private labels, leading to a significant shift in purchasing behavior.

The growing acceptance of private label products is notable, with 48% of consumers indicating that brand names are not a major factor in their purchasing decisions. Additionally, 38% of consumers do not intend to revert to branded products after trying private labels, and 34% are open to purchasing lower-cost versions of popular items.

This change is largely driven by economic factors, as consumers seek to save money amid rising prices. As a result, private label products have become a habitual choice across various income levels, proving that they can meet consumer needs effectively.

THE EVOLVING ROLE OF BRANDS AND RETAILERS