BRAND BRILLIANCE
In the fiercely competitive world of FMCG, some brands are getting it (very) right
In a world where some households are struggling to pay their bills, you’d assume the Fast-Moving Consumer Goods (FMCG) industry could be staring down a hard road. And yes, there are pockets of pain, but the resilience shown by some brands is nothing short of remarkable. But I’d ask you to hold that thought for a moment.
First, we should reconcile our reality. Global spending shot up by +4.8% in 2022, leaving the +2.6% growth of 2021 far behind. But we shouldn’t be too excited by those numbers. This so-called “value” is mostly driven by inflation's handiwork, not honest-to-goodness consumer demand.
And who (ultimately) pays these rising prices? Well, it's the everyday shoppers tightening their belts and changing their ways to make ends meet. They’re flocking to discount stores, spacing out their shopping trips in some parts of the world, and hunting down smaller pack sizes to manage the money that keeps the household afloat.
Brand Footprint investigates the performance of 37,000 brands across 53 markets and five continents
Put simply, shoppers are being forced to spend more and make tough choices. Though they are presented with roughly the same number of brand choices when they shop, they are buying less and paying more, opting for lower-cost alternatives in some categories and relinquishing others altogether. This pattern is likely to continue, as even when inflation is reined in, prices will stay high to tackle ongoing supply chain challenges and higher energy, production, and distribution costs. But brands are adroitly recognising and responding to consumer pain.
Amid this adversity confronting their customers, brands have exhibited a remarkable capacity for adaptation and growth. This display of brand resilience and empathy for shopper needs is a testament to the industry’s innovative spirit. Even when facing challenging circumstances and scarce growth opportunities, brands have discovered ways to prosper and help shoppers at the same time.
Our annual Brand Footprint study, the most comprehensive we have ever conducted, investigates the performance of 37,000 brands across 53 markets and five continents. The invaluable insights derived from this extensive analysis will provide you with a reliable compass to navigate these uncertain times and achieve true growth.
One particularly captivating discovery is the rise of smaller, newer brands that have carved out a niche for themselves, even in categories that appeared saturated. These "up-and-comers" have tapped into the power of empathy and understanding for struggling consumers, addressing their evolving needs and delivering positive results in the face of changing market needs.
At the Cannes Lions International Festival of Creativity in June, we will celebrate the resilience of brands that have weathered the storm and continued to innovate. Cannes Lions is the global stage where the world's most innovative and creative brands come together, showcasing their breakthrough ideas and campaigns and earning well-deserved recognition. We’ll be using the event to spotlight those who stand out to shoppers.
To further amplify the power of brands, this report offers a view of the strategies employed by winning brands that will hopefully inspire others to emulate their success and thrive.
