How inflation impacts FMCG shoppers in SEA?

“Inflation presents huge challenges for brands, but they need to be aware that shoppers, categories and markets are responding differently to the pressure of rising prices.”

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Inflation in South-East Asia presents huge challenges for the FMCG industry, pushing brands to be aware that shoppers, categories, and markets are responding differently to the pressure of rising prices. This playbook will explain how FMCG brands should react to South-East Asia’s rising inflation.

The playbook covers the following:

• Shoppers’ reaction to the inflation

Shoppers, of course, will have different reactions when facing rising prices. There are three factors that marketers will want to consider as they develop their strategies, which are covered in the playbook.

• Markets, categories, and shopper understanding

How much demand for each category will be affected by inflation will depend on whether it’s classed as an essential ‘need’ or a nice-to-have ‘want’. The former might include necessity categories like cooking oil and eggs, while the latter could include indulgent or occasional treats like hair conditioners.

• Choosing the right strategy

There are five options for boosting performance in an inflation-driven market; each has its condition and perks. Understanding how cash-strapped shoppers are encouraged or discouraged when selecting a brand is important for brands to choose the right strategy in each market.