1、RESEARCH REPORTBUILDING RESILIENCE:Brand Strategies for Success in the Evolving European Consumer LandscapeDIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 2 O F 2 4With stubbornly high inflation,shaky consumer confidence,and rapidly shifting shopping habits,its no wonder many brands are asking a

2、critical question:What comes next?Given the speed at which the European commerce landscape is evolving,making firm predictions about what will happen in the future is likely a fools errand.The more effective strategy?Gaining the information and insights needed to make informed decisions and develop

3、resilient strategies for the future.Explore the impact inflation and falling disposable income are having on consumer behavior,how those factors interact with changing shopping habits,and what it all means for brand manufacturers in the U.K.,France,and Germany.Building Resilience:Brand Strategies fo

4、r Success in the Evolving European Consumer LandscapeP A G E 3 O F 2 4The European Economic Outlook.4Adapting To the Ever-Changing Consumer Landscape.115 Strategies To Survive and Thrive During a Recession.12Boost Brand Awareness and Discovery.13Keep Up With Consumer Consideration.15Take Control of

5、Purchases and Services.17What Comes Next for Brands in This New Normal?.20Table of ContentsDIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 4 O F 2 4The European Economic Outlook As we approach the midpoint of 2023,the economic situation in the U.K.,France,and Germany remains downcast.All three of

6、 Europes largest economies are grappling with multiple overlapping challenges,including the lingering effects of the COVID-19 pandemic,the war in Ukraine,the U.K.s departure from the European Union,and high inflation rates.While there are some positive signs of recovery,the road to economic stabilit

7、y remains rocky,and its clear that consumers are hurting.The growth rate in real gross domestic product(GDP)fell in all three countries during the fourth quarter of 2022.According to FRED data,France recorded growth of just 0.5%,while the U.K.saw flat growth,states the U.K.Office for National Statis

8、tics.Real GDP in the U.K.is currently 0.8%below its pre-COVID level.Germany was the only country to record negative growth of 0.4%,reports FRED.Despite economic challenges,however,all three countries are close to historic lows in unemployment rates.The U.K.Office for National Statistics reports that

9、 the unemployment rate in the U.K.is just 3.7%.France and Germany,which typically have higher rates of baseline unemployment,are at 7.1%and 5.5%,respectively.Its critical for brands to understand how consumers are faring in this economy,especially concerning one overwhelming and persistent issue:inf

10、lation.In January 2023,inflation rates remained above 10%in the U.K.,around 8.7%in Germany,and 6.2%in France.108642012Consumer Price Inflation99.19.49.910.110.110.110.510.711.15.95.94.85.45.86.16.26.266.25.95.95.66.37776.78.68.88.88.18.78.76.7FranceGermanyU.K.MAR.22 APR.22 MAY 22 JUN.22 JUL.22 AUG.2

11、2 SEP.22 OCT.22 NOV.22 DEC.22 JAN.23 FEB.23DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 5 O F 2 4FIGURE 1:CONSUMER PRICE INDEXThese sustained high levels of inflation have cut into the disposable income of consumers in all three countries.Real earnings in Germany fell 3.1%in 2022,according to

12、Destatis,continuing the declines felt in 2020 and 2021.In the U.K.,real wages were down 2.6%in the last quarter of 2022,despite pay growth of 6.4%,reports the U.K.Office for National Statistics.The French government reports that real wages fell 2.2%in the fourth quarter and were down 3.3%since the s

13、tart of the pandemic.And according to McKinsey&Company,around two in five European consumers reported having used savings to cover typical expenses during 2022.These challenges are leading to increasingly vocal demands and strikes for wage rises.Source:DestatisSource:DestatisSource:U.K.Department fo

14、r Business,Energy,and Industrial StrategyDIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 6 O F 2 4While consumer confidence across the Eurozone remains significantly below its long-term average,according to Eurostat,it has shown consistent improvement from its low in the third quarter of 2022.Gro

15、wth from Knowledge reports that the U.K.has experienced a similar pattern.Interestingly,in France which has managed to maintain relatively low inflation compared to other European countries consumer confidence hasnt fallen as sharply,nor has it improved in recent months.The European Central Bank(ECB

16、)and the Bank of England(BoE)have also raised rates in recent months.It seems likely that the ECB will raise rates even further,though overall interest rates in the U.K.may be reaching their peak.Compared to their European counterparts,U.K.consumers have more exposure to rate hikes,as mortgage rates

17、 are typically fixed for shorter periods.Rising interest rates increase mortgage payments and put upward pressure on rent,which eats into consumers disposable income.From a positive perspective,wholesale energy prices which spiked following Russias invasion of Ukraine,driving inflation even further

18、have fallen significantly in recent months,claims Ember.Inflation isnt consistent across product categories,either.Its been highest among essential items,such as food and energy.Destatis notes that German consumer prices for these categories have risen by 20.2%and 23.1%,respectively.In the U.K.,aver

19、age domestic energy bills increased by 74%in 2022,according to the U.K.Department for Business,Energy,and Industrial Strategy.As expected,these rising rates have had a negative effect on consumer spending.In Germany,retail sales in January 2023 were down 6.9%compared to January 2022,reports Destatis

20、.The U.K.Office for National Statistics states that retail sales volumes in the U.K.have been falling since April 2021 and are currently 1.4%below their pre-pandemic levels.A similar picture can be seen in France,says Trading Economics.In the U.K.,average domestic energy bills increased by 74%in 202

21、2.German food prices have risen by 20.2%German energy prices have risen by 23.1%74%20.2%23.1%-15.0-20.0-25.0-30.0-35.0-10.0Euro area 20 countries(from 2023)Germany(until 1990 former territory of the FRG)France2022-032022-042022-052022-062022-072022-082022-092022-102022-112022-122023-012023-02DIGITAL

22、 SHELF INSTITUTE:BUILDING RESILIENCEP A G E 7 O F 2 4FIGURE 2:CONSUMER CONFIDENCE IN THE EUROZONE,FRANCE,AND GERMANYSpending on ecommerce grew massively during the pandemic,both in real terms and as a share of retail spending.Both indicators have fallen back from their peaks,but remain significantly

23、 above their pre-pandemic levels.40.035.030.025.020.015.0ActualForecast(Linear 1.2)2019 JAN2019 MAR2019 MAY2019 JUL2019 SEP2019 NOV2020 JAN2020 MAY2020 NOV2020 MAR2020 SEP2020 JUL2021 JAN2021 MAY2022 JAN2021 SEP2021 MAR2021 JUL2022 MAR2022 SEP2021 NOV2022 JUL2023 JAN2022 MAY2022 NOVDIGITAL SHELF INS

24、TITUTE:BUILDING RESILIENCEP A G E 8 O F 2 4FIGURE 3:U.K.ONLINE RETAIL SALESAs seen in Figure 3,which compares the actual and predicted trajectories of online retail sales in the U.K.,the online share of retail sales remains 2%to 3%higher than expected.Across all three countries,there are significant

25、 differences in the size and share of the online retail market.Estimates by the Centre of Retail Research show the U.K.is by far the most developed online retail market in Europe,with total sales of 119 billion in 2022,accounting for 26%of total retail sales.In contrast,German online retail sales we

26、re just over 100 billion,with a 15.4%share.The French ecommerce market is considerably smaller,accounting for just 12.5%of the total,with sales of 67 billion.France Online Retail Sales:66,86 Share of Total Retail Sales:12.5%Germany Online Retail Sales:101,18 Share of Total Retail Sales:15.4%UK Onlin

27、e Retail Sales:118,73 Share of Total Retail Sales:26.0%DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 9 O F 2 4FIGURE 4:SIZE AND SHARE OF ONLINE RETAIL MARKETThere are also a number of factors that point to consumers cutting back on discretionary spending and big-ticket items.The Fdration E-Comm

28、erce et Vente Distance reports that online electronics spending in France fell by 15%between the third quarter of 2022 and the same period in 2021.Online and offline U.K.sales of categories like furniture,household appliances,and computer equipment are all significantly below 2019 levels,according t

29、o the U.K.Office for National Statistics.Not all categories are down,however.Apparel has largely recovered,and spending on cosmetics is around 10%higher than in 2019.For German and U.K.businesses,the restaurant booking site OpenTable offers a tool indicating the number of restaurant diners in real-t

30、ime.OpenTable updates the indicator daily,avoiding the lag associated with official statistics.Because restaurant dining is one of the first expenditure categories consumers cut back on during recessions,monitoring OpenTables indicator can help businesses gain insight into consumers willingness to s

31、pend.Figure 5 shows that dining rates steadily decreased throughout the latter half of 2022 but have seen a sustained uptick during the first three months of 2023.0%10%20%30%40%50%60%70%80%90%Poly.(Average of Germany)Poly.(Average of United Kingdom)Average of GermanyAverage of United Kingdom28/06/20

32、22-04/07/202205/07/2022-11/07/202212/07/2022-18/07/202219/07/2022-25/07/202226/07/2022-01/08/202202/08/2022-08/08/202209/08/2022-15/08/202216/08/2022-22/08/202223/08/2022-29/08/202230/08/2022-05/09/202206/09/2022-12/09/202213/09/2022-19/09/202220/09/2022-26/09/202227/09/2022-03/10/202204/10/2022-10/

33、10/202211/10/2022-17/10/202218/10/2022-24/10/202225/10/2022-31/10/202201/11/2022-07/11/202208/11/2022-14/11/202215/11/2022-21/11/202222/11/2022-28/11/202229/11/2022-05/12/202206/12/2022-12/12/202213/12/2022-19/12/202220/12/2022-26/12/202227/12/2022-02/01/202303/01/2023-09/01/202310/01/2023-16/01/202

34、317/01/2023-23/01/202324/01/2023-30/01/202331/01/2023-06/02/202307/02/2023-13/02/202314/02/2023-20/02/202321/02/2023-27/02/202328/02/2023-06/03/202307/03/2023-09/03/2023DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 0 O F 2 4FIGURE 5:OPENTABLE SEATED DINERS IN U.K.AND GERMANYThe Euro Area Purc

35、hasing Managers Index shows similar evidence for an improving situation.The index surveys private-sector businesses about new launches,business confidence,and optimism for the next 12 months.Fortunately,the index has shown consistent improvement since October 2022.Overall,the economic situation in t

36、he U.K.,France,and Germany remains mixed.While there are some positive signs of recovery,its clear that significant challenges lie ahead for brand manufacturers across Europe.And even though European economies might avoid a 2023 recession,consumers might continue to cut back on spending.DIGITAL SHEL

37、F INSTITUTE:BUILDING RESILIENCEP A G E 1 1 O F 2 4Adapting To the Ever-Changing Consumer LandscapeThe days of linear customer journeys are well and truly gone.Todays consumers follow complex,nonlinear paths across multiple online channels and platforms,moving back and forth between stores and ecomme

38、rce sites.To win and grow business,brands need to reimagine their business models through this omnichannel lens.They need to align supply chains,data-management practices,and marketing strategies with the way that todays consumers discover,research,and purchase products.The impact inflation has had

39、on shoppers disposable income has caused them to make different decisions at each stage of their customer journey.At the same time,the pandemic has fundamentally changed shopping attitudes and habits.A 2020 Digital Shelf Institute(DSI)report explored lessons that brands could learn from the Great Re

40、cession.While inflation imposes some different complications,todays consumers are dealing with similar lower disposable income and increased insecurity as they were during that period.To win and grow business,brands need to reimagine their business models through this omnichannel lens.DIGITAL SHELF

41、INSTITUTE:BUILDING RESILIENCEP A G E 1 2 O F 2 45 Strategies To Survive and Thrive During a RecessionHere are five things brands need to know to navigate recessions.1.Give Consumers PermissionAll consumers cut back on spending during a recession,even those without budgetary constraints.Marketing and

42、 branding should give them“permission”to buy by alleviating guilt and demonstrating product value.2.Streamline Product RangesMid-market brands have difficulty keeping pace as price competition with private-label goods and cheaper alternatives intensifies.In tough economies,streamlining product range

43、s reduces costs and appeals to consumers demand for simplicity.3.Give Premium Products a BoostPremium brands can capitalize on high-income consumers by enhancing their premium image through enriched content.4.Demonstrate ValueBrand loyalty and market share are up for grabs in a recession.Brands that

44、 demonstrate value can capture market share when consumers change their habits and reconsider their spending choices.5.Keep MarketingNow is not the time to cut marketing budgets.Brands that continue to spend during recessions bounce back faster than those that cut back,notes the Harvard Business Rev

45、iew.DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 3 O F 2 4Boost Brand Awareness and DiscoveryWhen a downturn hits,marketing budgets are often the first to go.As consumers become more value-conscious,however,marketing becomes increasingly important to maintaining and growing market share.Afte

46、r all,shoppers are more willing to try new brands and products if they see value in them.During the Great Recession,consumer packaged goods(CPGs)manufacturer Reckitt Benckiser Group increased its marketing spend by 25%,reports the Harvard Business Review.At a time when its main competitors the Proct

47、er&Gamble Company and Unilever were seeing profits fall,its sales grew 8%,and profits rose by 14%.A recent McKinsey&Company survey found that 80%of European consumers have changed their shopping behavior in response to rising prices,with at least 50%having recently tried alternative or private-label

48、 brands.The shift to lower-cost alternatives is even greater for CPGs,with 63%of consumers switching brands.Interestingly,value was just as important as prices and promotions in driving consumers decisions to change brands.Emphasizing value by highlighting build quality or health benefits,for exampl

49、e,is a potentially winning strategy for attracting less income-constrained consumers.Maximize Your Ad Budget in 2023Todays consumers see more ads than ever before between 4,000 and 10,000 ads per day across an ever-growing range of channels,reports Forbes.Its increasingly difficult for brands to cut

50、 through all that noise.Thanks to their environmental context,print and in-store ads tend to have better retention rates than digital ads.Digital out-of-home advertising,however,allows brands to capture the benefits of traditional advertising and gain far greater control over targeting,measurement,a

51、nd attribution.The same principle applies to branded product pages.Commerce media is nothing new.Brands have been paying stores for end-of-aisle displays or prominent promotions for years.The real change is the rapid rise of retail media networks(RMNs).RMNs allow brands to display targeted ads close

52、 to the point-of-sale system,on their app,on their website,or on digital in-store displays.They can offer attractive returns on ad spend(ROAS),too.A McKinsey&Company report estimates that consumer goods companies can increase their ROAS by three to five times by using RMNs.Source:IAB EuropeDIGITAL S

53、HELF INSTITUTE:BUILDING RESILIENCEP A G E 1 4 O F 2 4Harness the Power of RMNsUnlike the U.S.,which had an established RMN ecosystem prior to COVID-19,Europe is relatively new to RMN strategies.The rapid shift to ecommerce during the pandemic,however,prompted a rush of investment from retailers and

54、surging demand from advertisers.A recent report by IAB Europe found that 92%of advertisers and 74%of agencies have used RMNs to advertise to and reach consumers.Across the continent,major retailers have set up RMNs,including Sainsburys,Boots,and Tesco in the U.K.and Carrefour and Auchan in France.Th

55、ese allow retailers to bring together vast amounts of data on their customers shopping habits from across their brick-and-mortar stores and digital ecosystems.Brands with no or limited direct-to-consumer(DTC)capabilities lack the data required for a cookieless world.RMNs allow brands to leverage ret

56、ailers first-party data to bridge the gap left by cookie depreciation,enabling them to deliver targeted advertising at the point of sale.But brands and retailers can gain even more such as product innovation and connected campaigns from collaborating.Big global CPG manufacturers like Reckitt Benckis

57、er Group,the Kellogg Company,and Mondelz International are spending between 10%and 20%of total ad spend on retail ads,reports MediaRadar.Ad spend on European RMNs is forecast to pass 25 billion by 2026,up from less than 8 billion in 2021.Despite the benefits,RMNs do pose risks for brands especially

58、if they become a mandatory part of the retailer-brand business relationship.For CPG brands,however,slotting fees,markdown money,and other charges are a feature of many brand-retailer relationships.Brands are often far more dependent on retailers than retailers are on specific brands.But brands can a

59、dapt their brick-and-mortar strategies to their RMNs by diversifying distribution channels;using social and influencer media to form direct customer relationships and brand loyalty;and gathering data on consumer purchasing habits.92%of advertisers have used RMNs to advertise to and reach consumers.9

60、2%Source:SalsifyDIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 5 O F 2 4Keep Up With Consumer ConsiderationModern consumers have access to unparalleled levels of information about the products they buy.Before making a purchase,consumers seek out influencers,browse product information,read revi

61、ews,compare competitors products,and search for the best deals.In the past,this behavior was more common in younger digitally native consumers.But today,nearly all consumers conduct some level of research before buying.And as inflation continues to impact income,consumers are likely to expand their

62、research even further.A BDM study found that older shoppers in France were more likely to use marketplaces or brand and retail sites to conduct research,while Generation Z consumers were more likely to find new products via social media.About half of shoppers start their search for products on Amazo

63、n,so social media ads targeting older consumers should adapt to these patterns by focusing more on providing product information.Build a Fluid and Flexible Research ProcessNew social and marketplace behemoths are changing the ecommerce landscape:Amazon allows users to check product specifications,re

64、ad reviews,and compare prices.YouTube is replacing the in-store experience,enabling potential buyers to get impartial information on product performance and see the product in use.TikTok has become a haven for product research and consumer recommendations.Each platform provides an opportunity to con

65、nect with and influence the customer as they consider making a purchase.To best reach customers,content should be native to the platform,consider user intent,and provide consumers with the information they need to make an informed decision.When a customer finds your product,first impressions count.P

66、roduct pages that contain detailed product information and high-quality media convey your products value.A Salsify report found that products on Amazon France with higher-quality product pages,for example,generated 2.5 times more sales than other products.Products on Amazon France with higher-qualit

67、y product pages generated 2.5 times more sales than other products.2.5XDIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 6 O F 2 4For brands that typically sell through retailers,the online world provides new ways to communicate their value to consumers.Take The Bar from the multinational alcohol

68、ic beverage brand Diageo as an example.The Bar showcases its alcohol products alongside recipes created by famous mixologists.In the U.K.,the site operates as a DTC site,offering next-day delivery,free returns,and personalization.Social commerce a massive phenomenon in China is still in its infancy

69、in Europe,but its growing fast.One University of Almeria study found that influencers not only helped boost brand engagement but also increased consumers expected value of the brand and intention to purchase.Several brands are experimenting with social commerce.Bambuser,a Swedish ecommerce live stre

70、aming provider,has partnered with a range of brands across Europe including Bobochic,a French online furniture brand,and Kjell&Company,one of Scandinavias largest electronics retailers to provide customers with personalized customer service from in-store staff.Several fashion brands and retailers,in

71、cluding Gucci,Ted Baker,and Moda Operandi,have also experimented with live streams,partnering with stylists and fashion designers to enhance the shopping experience.Position Your Premium Brand To Stand Out OnlineConsumers become more value-conscious during recessions,which isnt quite the same as bei

72、ng price-conscious though good deals certainly help seal the deal.According to Salsifys“2023 Consumer Research Report,”96%of global consumers say that rising costs are influencing the way they shop,and almost three-quarters are actively looking for discounts.Salsify Interactive Report:2023 Shopper R

73、esearchDOWNLOAD REPORTPercentage of shoppers hesitant of return feesFranceU.K.Source:Signifyd77%56%DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 7 O F 2 4Take Control of Purchases and ServicesBrand manufacturers tend to lack control of the purchase and delivery processes.To address this chall

74、enge,brands should identify the areas in which they have influence particularly in their retailer partnerships and build programs that allow them to connect directly with customers via DTC channels or post-purchase loyalty programs.Consider Product Availability and DeliveryTodays consumers expect a

75、seamless,predictable,and fast experience from when they add a product to their basket to when they receive their purchase.But consumers in France,Germany,and the U.K.all have different expectations when it comes to delivery,fulfillment,and payment.In Germany,export.gov reports,the most popular payme

76、nt method is“open invoice,”which requires merchants to provide goods along with an invoice,allowing consumers to test and either return the product or pay for it within a set timeframe.Consumers love it,but for brands and retailers,it generates additional costs.Data Impact notes that in France,click

77、-and-collect has become a dominant force in online grocery.E.Leclerc is the click-and-collect market leader,with 22%of the overall grocery market,but almost half(48%)of the online grocery market.This model is particularly popular in sparsely populated,rural areas where home-delivery services are oft

78、en uneconomic.Urban click-and-collect has been growing rapidly in recent years.The battle to win shoppers has led to retailers offering a range of costly and,in some cases,untenable fulfillment services,including free returns and next-day delivery.Online fashion retailers,such as Boohoo and Zara,hav

79、e started to introduce return fees,which is a risky strategy.Signifyd found that a majority of consumers 56%in the U.K.and 77%in France report being hesitant to buy if there are return fees.But consumers dont value all services equally.Brands should work with their retail partners to ensure that ful

80、fillment processes meet consumers demands.Brands that control their fulfillment processes should consider scaling back costly offerings that dont significantly move the dial.For those services that consumers deem essential,brands can reduce costs by investing in inventory management systems,partneri

81、ng with third-party logistics providers,and optimizing delivery routes.DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 8 O F 2 4Prioritize Omnichannel CommerceThe rapid rise in ecommerce caused many to predict the end of brick-and-mortar stores.That hasnt happened.In-store sales are well above

82、their pre-pandemic levels,and todays shoppers hop freely between online and offline channels.According to a global survey conducted by advisory firm PwC,the percentage of consumers who report shopping online daily or weekly has fallen slightly,reflecting the partial return to pre-pandemic shopping h

83、abits.However,the survey also shows the dominance of multichannel shopping.According to the IBM Institute for Business Value,the physical store remains a critical part of the purchase process for three-quarters of shoppers,including 27%of global consumers who prefer hybrid online-offline shopping ex

84、periences like buying online and picking up in store(BOPIS).The best retail partners are already engaged in these kinds of digital transformation efforts.As those take shape,theyll create new opportunities for brands to partner with retailers to create more interesting and engaging experiences.In th

85、e meantime,brands should be asking how they can link online campaigns to in-store events to create consistency across all channels.Explore DTC OpportunitiesFrustrated by the lack of control over aspects of the retail experience,some brands are exploring DTC opportunities.Dyson,for example,has built

86、a DTC strategy based on maintaining its premium image and enhancing the purchase process,notes Intelligence Node.It has local sites in all major European countries,which each offer a number of benefits for buying direct,including price matching,a 30-day return policy,and authenticity guarantees.Othe

87、r premium brands,including KitchenAid and Nespresso,are adopting similar strategies.Another major advantage of building a DTC channel is gaining access to first-party data.The threat of cookie depreciation and rising privacy concerns are posing major challenges for brand marketers.At the same time,c

88、onsumers are coming to expect more personalized experiences.Armed with data,brands can tailor their marketing efforts to deliver these experiences.The physical store remains a critical part of the purchase process for three-quarters of shoppers.Source:Tata Consultancy ServicesSource:Tata Consultancy

89、 ServicesDIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 1 9 O F 2 4Loyalty ProgramsLoyalty programs are another solution to collecting first-party data and delivering personalized experiences.The Pampers Club,an app and rewards program created by the Procter&Gamble Company,for example,provides c

90、oupons,personalized offers,and a wide range of content,such as quizzes and guides,relevant to new parents.Digital loyalty programs work when theres a clear value exchange and when shoppers trust the company.A recent survey by advisory firm Tata Consultancy Services found big discrepancies between co

91、nsumers in different age groups willingness to share personal data in exchange for discounts and other benefits.Three-quarters(76%)of millennials were willing to share their data,compared to just 60%of Gen Zers.Only a third of those over age 58 were comfortable sharing data.Limit your data collectio

92、n to only the information needed to provide a personalized experience.A brand selling nutritional supplements may have valid reasons to ask members to fill out a survey on diet and exercise.They probably dont need to know other forms of personal information,and asking for more can break consumer tru

93、st.Brands may also want to develop multichannel loyalty programs that allow for customer segmentation and personalization.Requiring a Gen Z shopper to download an app may not be the most appropriate strategy when they are more comfortable interacting with your brand via social media.Likewise,offerin

94、g promotions for following your brand on social media is unlikely to appeal to someone who isnt active on those platforms.Gathering first-party data is only the first stage.Brands then need to build models that allow them to use that data to enhance the customer experience.As we enter an economic do

95、wnturn,offering promotions is often a better long-term strategy than simply cutting prices,which risks damaging a brands perceived value.Promotions can effectively retain price-sensitive but loyal customers and attract new ones.A smart first-party data strategy uses data to determine which customers

96、 are most likely to respond to promotions and when.76%of millennials were willing to share their data76%60%of Gen Zers were willing to share their data60%DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 2 0 O F 2 4What Comes Next for Brands in This New Normal?In 2023,will inflation peak and start

97、to fall?Are we facing a prolonged downturn,or will the economy recover?How the economic situation develops depends on multiple interconnected factors,from geopolitics to interest rates to labor markets.The same applies to shopping patterns:The channels and platforms that are driving growth today are

98、 unlikely to be the same as those driving growth tomorrow.The digital world is constantly evolving,and innovations like augmented and virtual reality are already starting to transform the shopping experience.Recent advancements in artificial intelligence are showing how intelligent voice-enabled sea

99、rch can transform the discovery and consideration processes.One thing is clear,though:To be successful,brands need to build agile and innovative organizations.Experiment with the latest technologies and ways of using data.Engage with your customers in new ways and on new platforms.In a world where m

100、argins are squeezed at every turn,brand and retailer partnerships can unlock mutual value.DIGITAL SHELF INSTITUTE:BUILDING RESILIENCEP A G E 2 1 O F 2 4Digital Shelf InstituteThe Digital Shelf Institute(DSI)is a community dedicated to developing and sharing the best actionable insights and strategies for brand manufacturers to win on the digital shelf.Become a Member