Rising costs in the food and drink industry, what shoppers can expect from retailers this year and the impact of the healthcare industry on wellness. That and more on today’s episode.
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Q: How do the current food price increases differ from fashion, beauty and interiors?
“The food industry is more reactive to global nuisances as its production cycle and lead times are shorter compared to other industries. Hence, food inflation peaked faster compared to fashion and beauty, where production cycles are longer.
“In fashion, retailers try to secure raw materials between 12 to 18 months in advance, with freight negotiations also kicking off earlier than in the food industry. As a result, most of the products that landed in early 2022 didn’t suffer from the impact of the rise in energy costs, but just adjusted prices for the Covid-19 supply chain crisis in 2021 and 2020.”
– Alan Ruggiero, Head of Analytics, WGSN
Q: What shopping habits are expected for the remainder of this year and what will consumers expect from retailers?
“In the latter half of this year, the cost-of-living crisis will see consumers refocusing their spend on essentials and shopping less. When they do shop, they will want value, a sense of community and understanding from retailers.
“Brands will have an opportunity to show empathy to consumers. If lowering prices or altering messaging risks eroding your brand, retailers should consider launching a value range or a stripped-back service.”
– Rohini Wahi, Senior Strategist, WGSN Insight
Q: How are the emerging changes in the healthcare industry impacting the future of wellness?
“Over three quarters of consumers say the pandemic has made them pay more attention to their health. As the DTC market expands with new solutions to provide on-demand healthcare, consumers will expect more regular, accessible and personalised interactions from their healthcare services, whether or not they are a DTC brand.”
– Raquel Dommarco, Localisation Team Lead, WGSN