Chief Marketing Officer at Publicis Media, Ad Age's 2023 Agency Network of the Year. (I help people and brands find, hone, and share their stories.)
Anybody want some good news? It’s blowing in, my friends. The Conference Board's Consumer Confidence Index reached 102 in May, a level not seen since the early 2000s. (A reading above 100 indicates a strong and optimistic consumer outlook, making this surge a promising sign for brands and the agencies that serve them. As the kids say: LFG!) Consumer spending remains robust, as evidenced by the recent successes of companies like Dick's Sporting Goods (5.3% increase in comparable sales, largely driven by my relentless purchasing of pickleball supplies) and Abercrombie & Fitch (22% year-over-year jump in sales for the first quarter for a company that's finally turning the corner). These examples perhaps demonstrate that consumers are willing to spend when presented with compelling value (perceived worth relative to price). Rising consumer confidence and lower prices are like wind and sails for a ship – together, they can propel a brand forward with incredible speed and efficiency. Brands that effectively combine the appeal of value with the growing optimism among consumers will find themselves well-positioned to outsail their competitors. To harness this powerful combination, brands should consider emphasizing the long-term value and benefits of their products or services. By positioning their offerings as smart investments that will pay off over time, brands can tap into the confident and optimistic mindset of consumers. For example, a technology company could highlight how their latest smartphone model is built to last, with features that will keep it relevant and valuable for years to come. A home appliance brand could emphasize the energy efficiency and cost savings their products offer, appealing to consumers' desire for both value and long-term benefits. This combination has been witnessed before, notably during the 1990s economic boom when consumer confidence soared and value-driven brands experienced unprecedented growth. I remember it like it was yesterday! Grunge and flannel and free-spending, oh my! Sure, caution is also in the wind. As economist John Kenneth Galbraith once said, "The only function of economic forecasting is to make astrology look respectable." While the future is uncertain, the current alignment of rising confidence and value-driven messaging presents an opportunity brands cannot afford to ignore. Ambitious brands and their stewards must stay attuned to the evolving consumer landscape and pivot their approaches to harness the wind of rising confidence and the appeal of value. Those who effectively navigate these waters will find themselves sailing towards a brighter future. #ConsumerConfidence #BrandStrategy #ValueMessaging #NavigatingChange
Preeti Nadgar
1mo
Fabulous perspective. Thank you, Scott.
Chief Executive Officer at Screenvision Media
1moHere we go…