current
Evolving Discount Landscape
The concept of "discount" is expanding beyond just price, encompassing value, health, sustainability, and convenience.
Timeframe
near-term
Categories
Subcategories
Detailed Analysis
Consumers are seeking value in various forms, leading to a redefined understanding of "discount." Affordability remains a key factor, but consumers are also prioritizing health, sustainability, and convenience. This shift is evident in the growth of economy price tiers, the increasing acceptance of private label products, and the willingness to pay a premium for products that offer lasting quality or enhance life satisfaction. "This isn’t to say that shoppers are averse to spending more, but rather that you’re going to have to prove to them what makes your product premium on a level that speaks deeply to them and their unique needs."
Context Signals
Discount price tiers captured over $6 billion in incremental sales share growth globally.
40% of global consumers would switch to a private label product they enjoy even if it costs more.
67% of consumers are likely to try a new brand because of its lower price.
Edge
Brands that can effectively communicate their value proposition beyond price will be more successful in attracting and retaining customers.
Retailers can leverage data and analytics to optimize assortment and promotional strategies to cater to evolving consumer preferences.
The rise of value-driven consumption could lead to increased competition and innovation in the discount segment.
