Personalized coffees and prestige skincare: Consumers snap up premium products despite cost-of-living crisis | CNBC

Personalized coffees, “prestige” skincare, and “elevated” sauces and spreads are just some examples of how companies like Starbucks, Unilever, and Kraft Heinz are tilting their focus toward premium products — and consumers appear to be loving it.

But why are companies zooming in on their pricier offerings when consumers are feeling the effects of the biggest inflation shock in decades?

“Customer insight is key for consumer businesses as the cost of living squeeze tightens,” Paul Martin, KPMG’s U.K. Head of Retail, told CNBC.

“Whilst it’s true that some consumers are having to increasingly turn to value products and watch every penny, it is also the case that other consumers are nervous about”…….Full Loaf Hot Link[read more]

Rising Dough

Rising Dough - the question(s) that we need to think about from the reading.Why are consumers still purchasing premium items knowing that the cost of living has been going up?

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One thought on “Personalized coffees and prestige skincare: Consumers snap up premium products despite cost-of-living crisis | CNBC”
  1. A good reason why consumers may still be dumping extra funds into ‘premium’ items is for the added social luxury. While there is a decline in your funds or the the amount of money you have in pocket, you are increasing the likeability of your character (thanks to todays norms), the confidence you have in yourself, or simply for better service based off personal preference.

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