According to the 15th edition of the EY Future Consumer Index, which polled 20,000 customers in 26 countries, including 1,500 in the U.S., 73% of American consumers have changed their buying patterns in response to price rises in the last 12 months. Even though many customers consider private-label items to be less expensive, 55% of consumers who sample them
As economic pressures persist, brands face growing challenges to maintain consumer trust and loyalty. More than half of U.S. shoppers believe private labels now meet their needs as effectively as branded products. However, 63% of consumers also notice price increases in private labels. Mark Chambers, EY Americas Retail Sector Leader stated, “of more value-conscious consumers, and retailers need to keep pace by evaluating and leveraging a mix of the tools available to them like pricing strategies, customer intelligence platforms and inventory optimization.” With marketing messages often missing the mark, companies are urged to refine strategies that connect better with consumers' needs and expectations.
