Cutting Costs

Strategies to cut costs during inflation also raise customer loyalty. The global economy is facing challenges due to inflation, increased trade costs, and slower commerce growth. Brands and consumers are looking for ways to cut costs, with shoppers seeking cheaper options and some brands investing in customer loyalty through new product lines or frozen prices. The key for brands that plan to raise prices is to emphasize their value to maintain customer loyalty, as the fear of recession looms and investor sentiment sours. For some brands, raising prices has meant introducing new products at a higher price, instead of making existing products more expensive. Others are making plays for long- term loyalty by freezing prices or introducing budget-friendly product lines. Savvy brands are betting on their customers by investing in them now, in the hopes it pays off in a future recovery.