3 Ways Small Businesses Can Win with Consumers During Inflation
Since the pandemic hit, Canadians have been more concerned about proactively managing their health. The growing appetite for healthy living offers an enormous opportunity for Canadian brands to tap into the natural, organic and wellness market. But with growing concerns around inflation, Canadian consumers are also becoming more mindful of what they put their dollars behind. So how do brands compete to get inside shoppers’ baskets during these high-priced times?
As Canada’s largest trade association dedicated to all things natural, organic and wellness (NOW), we are committed to helping our members get more healthy living products into the hands of more Canadians. One of the ways we help our members excel in this industry is by arming them with relevant Canadian data.
To help our community navigate inflation, we commissioned a study to determine how inflation impacts Canadian consumers and their shopping choices. We conducted our latest study in February 2023, seeking specific insights into how inflation affects different categories of food, beverage and natural health products (NHPs), like vitamins and supplements. We were searching for answers to questions like ‘How do natural, organic and wellness (NOW) products fare compared to conventional food and beverages?’ ‘How are consumers shifting the shopping across channels?’ and ‘Are consumers shopping for organic in more discount banners?’
Help Manage the Cost of Groceries
83% of those surveyed said they were looking for a deal when shopping for groceries and supplements. Take a look at your yearly promo plan and ensure you are maximizing opportunities to offer your customers a chance to save. To score a deal, those surveyed said they are checking flyers more, clipping coupons and shopping at the stores that offer them lowest price. Looking farther down the line, are there opportunities for alternate packaging formats, materials, or internal processes where you can reduce costs without impacting product quality or integrity? Are there any opportunities where innovations or technology can also help reduce costs?
Create and promote products that are suitable for the entire family.
When we asked what matters most to Canadians, we found consumers are seeking products that can please everyone in the family. Can you create family-size packaging or bundle or highlight family-friendly features through your marketing or merchandising?
Promote products as being “Free-From.”
When Canadian consumers shop for better-for-you foods, snacks and supplements, products promoted as being “free from chemicals” have really resonated. Brands and retailers can highlight products that are free from chemicals and add third-party certifications to add validity and emphasize this attribute.
Whether your business is in food, beverage or natural health products, inflation is seriously impacting how Canadians shop for your products. Inflation has impacted each category quite differently, and understanding the nuances will help your company respond in the best way forward. If you want to uncover more insights into how inflation has impacted the Canadian shopper and how your business can adapt to this new consumer, head to chfa.ca and dig into the data with our sample report. CHFA Members get access to our full reports – join our community to get more insights.
