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”…….[read more]
Why are consumers still purchasing premium items knowing that the cost of living has been going up?
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