2024年通货膨胀和商业营销报告（英文版）-MikMak

InflationandCommerce

Marketing:HowtoReduceCostsandDriveProfitability

Trends,Insights,andBestPracticesforMultichannelBrands

Featuring

“Consumerscontinuetospend.[...]

Anytimewhentherestofthemarket

isdoingbadly,ifyouareinaposition,

ifyouarefinanciallyabletoinvest,it’s

agreattimetogainshare![...]A

downturnisanopportunitytogain

share,forsure!”

-SucharitaKodali

VicePresidentandPrincipalAnalyst,

Forrester

ListenNow

Brandmanufacturers'

marginswillcontinuetocompress

in2024.Asaresult,brandswillneedtoperfectpricingelasticity,tapintoconsumerhabits,andmakesureadvertisingdollarsare

drivingprofitablegrowth.

AccordingtotheMikMakShoppingIndex,onlinebasketsizeshavedecreasedoverthepastyear.

Profitero’sstudy

revealedthat58percentofUSshoppersand55percentintheUKwillcheckdealsandpricesonlinebeforecompletingtheirin-storeshoppingtrip.Similarly,50

percentofUSshoppersand41percentintheUKcheckpricesonlinewhenshoppingina

physicalstore.Thisdatasuggestsanurgentneedforbrandstobemorestrategicincapturingthoseconsumerswhomayspendmorecautiouslyintheyearahead.

Inthefaceofuncertainty,brandsmustkeepadvertisingtomaintainandgrowmarketshare.Carefullytargetedmarketingbasedonatrueunderstandingofcustomerbehaviormakes

everyadvertisingdollargofarther.

InthiseBook,wewillexploretheimpactofinflationonshoppingtrendsgloballyandbysector,basedoncurrentconsumerinsights.WewillalsosharebestpracticesformultichannelbrandstodriveCommerceMarketingprofitability.

4

GlobalInflationTrendsandKey

Predictionsfor2024

7

InflationandShoppingTrendsbySector:

EuropeandUS

TableofContents

7

ConsumerElectronics&Appliances

Overview

9

Grocery

Inthisguide,webeginbyexamininghowinflationis

affectingshoppingtrendsglobally,inEurope,andintheUS.Wethendiveintotheshoppingpatternsimpactingspecificsectors.Finally,weoutlinethebestwaystocapitalizeon

thesetrendsandincreaseCommerceMarketingprofitability.

13

Alcohol

17

Beauty&PersonalCare

20

Toys

22

PetCare

24

HowtoDriveProfitabilityandReduce

Costs-BestPractices

HowInflationisAffectingShoppingTrends

GlobalInflationTrends

Inflationissimmering,butit’slikelytocontinuetoputpressureonconsumers

throughoutthenextyear.Accordingtoa

Euromonitor

report,globalinflationisexpectedtodropto4.4percentin2024from6.8in2023.Hereareafewfactorsthereportsaysarepushinginflationlower:

●Slowingeconomicgrowth

●Stabilizingcommodityprices

●Coolingrealestateprices

●Supplychainenhancements

EuropeInflationTrends

InEurope,inflation

tumbledto2.4percent

inNovember2023,hittingitslowestpointinovertwoyears.However,prolongedhighpriceshavecutintothetypicalshopper’swallet,withinflationpeakingintheregionat10.6percentinOctober2022.Sluggishgrowthmayalsoaccompanythisdowntickininflation,creatinganenvironmentwithevenmoreprice-sensitiveshoppers.

Trends,Insights&BestPracticesforMultichannelBrands4

KeyPredictionsFromMikMakandProfiteroFor2024

MoreStrategicConsumerSpending

At

MikMak

,we’veobservedayear-over-year(YoY)declineineCommerceconversionrates,andonline

basketsizeshavedecreasedoverthepastyear.Thistrendcoincideswithinflationandrisinginterestrates.

Basedonbasket-levelsalesdataatMikMak,weexpectconsumerstokeepspending.However,theywill

continuebeingstrategic,huntingfordeals,settlingformoreaffordableoptions,andfocusingonessentials.

DigitallyInfluencedShopping

Intoday'sdynamicmarket,consumersholdunprecedentedpower,drivenbyadesireforchoiceintheirpurchasingdecisions.TheimpactsofCOVID-19andinflationoverrecentyearshaveresultedina

customerwhoheavilyreliesondigitalvalidation,whethershoppingonlineorin-store.

Profitero’sstudy

revealsthat4in10shoppersresearchonAmazonbeforevisitingphysicalstores,atrendconsistentacrossdiversemarkets.Additionally,digitalinfluencesurpassestheimpactofin-store

marketing,with7in10consumersintheUnitedStates,6in10inCanadaandtheUnitedKingdom,and5in

10inGermanyleaningtowardsonlinecontent.

Theseinsightsunderscorethegrowingdominanceofdigitalinfluenceinshapingconsumerbehavior.

4in10

shoppersresearchonAmazonbeforevisitingphysicalstores

CalmingInflation,StubbornCosts

Overallinflationisstartingtodecline.However,forbrandmanufacturers,it’smoreexpensivethanevertobringaproducttomarket,keepitontheshelf,andmarketittoconsumers.Here’swhyweexpectbrandmanufacturers'marginstotightenin2024:

●AssupplychainsaremovedoutofChina,itcoulddisruptbrandbusinesses

●Thecostofmaterialsislikelytoremainhigh

●Moreregulationforretailmediamaycreepinfromgoverningbodies

HowBrandsCanGetAheadinaTight2024Economy

AseCommercebusinessesfighthighinflation,pinchedmargins,andlimitedcashin2024,therearestillpathwaystogrowth:

1.Increasemarketingeffectiveness:Brandsneedtoleveragetheirmarketinginvestmentsbettertocombatinflationpressurewithoutraisingprices.Thatmeanstargetingthemostprofitablesaleschannelsinthemoststrategicwaypossible.

2.Makeeverydollarcount:Inordertocombatmargincompression,brands

experimentedwithpricehikesthroughout2022and2023.Consumersarenowpushingback.Thatmeansbrandsneedtostartaskingthequestion,“Howdowemakeeverydollarwespendworkharderandsmarterforus,fromideationandinsightstocontent,media,experiences,andmeasurement?”

Giventhecurrenteconomicuncertainty,retailersandbrandswillbecomemoreandmoreconsciousoftheir

spending,andthey’llneedtomakesuretheirinvestmentsarepayingoff.

“The“e”willbedroppedfrom“eCommerce”anditwilljustbe“Commerce.”Inmanycategories,eCommercegrowthrateshaveslowedpost-pandemic;yet,timeonlinehasnot.Asa

result,brandswillbelookingtodemonstratethatdigitalinvestmentsaredrivingofflinesalestoo.”

—RachelTipograph,CEO&Founder,MikMak

InflationandShoppingTrendsbySector:EuropevsUS

1.ConsumerElectronics&Appliances

EuropeConsumerElectronics&AppliancesTrends

InEurope,

Statista

estimatesonlinepricesforConsumerElectronicswill

maintainapositiveinflationrateof0.82percentby2025.Onlinepricesfor

theseproductsdroppedin2020,andthedeflationmayhavedulledtheimpactofrisinginflation.ElectronicsandHomeAppliancebrandshavealsobenefitedfromrelativelylowinterestratesinrecentyears,alongwithagrowingdemandfor

innovativeproducts.Overall,Europe’sHomeAppliancesmarketispredictedtoincreaseby

$13.8billion

by2028.

HereareafewadditionaltrendsshapingtheEuropeanConsumerElectronicsandAppliancesmarket,accordingtoModorIntelligence:

●InWesternEurope,there’sagrowingdemandforpremiumappliances

●Multifunctionalappliancesareinhighdemand

●GermanyholdsthelargestchunkofmarketshareforHomeAppliancesintheregion

USConsumerElectronics&AppliancesTrends

PricesforConsumerElectronicsinNorthAmericaalsodeflatedin2020,andtheyarepredictedtoincreaseby1percentby2025.

ThepriceforUSapplianceshasswunginbothdirectionsinrecentyears,butaverageinflationhasdippedintothenegativessince1997.Accordingtothe

USBureauofLaborStatistics

(BLS),thecostofapplianceswas

morethan11.72percentlowerin2023thanitwasin1997.

Trends,Insights&BestPracticesforMultichannelBrands7

eCommerceConsumerElectronics

BrandsAreStrugglingwithConsistency

LeadersintheConsumerElectronicsspacearealready

investinginsocialeCommercetoconnectwithcustomers.However,manyarestrugglingtosendoutconsistent

productinformationacrossdifferentplatforms.Accordingto

Channeladvisor

,65percentofbrandleadersfindit

difficulttostrikethistypeofconsistency.

Thesamereportfoundbrandleadersplantoinvestmoremoneyindifferentsocialmediachannelsincluding:

1.YouTube

2.Facebook

3.GoogleAds

4.Instagram

5.Pinterest

MikMak&ProfiteroInsights:ListentoTheseBrave

CommerceEpisodesfromtheConsumerElectronicssector:

Lenovo’sCarloSavinoonwhatyoucan

controlduringunprecedentedsupply

chainissues

ChrisCowgerofDellonNavigating

Turnarounds

ListenNow

ListenNow

2.Grocery

EuropeGroceryTrends

FoodpricesinEuropehaveskyrocketedinrecentyears.Accordingto

Trading

Economics

,EUfoodcostsrose9.36percentinSeptember2023,comparedtoSeptember2022.Despiteremaininghigh,inflationforfoodpricesistumblingfromaMarchhighofjustover19percent.

Britishshoppershaveseenfoodpricesriseevenmore,andthefoodinflationratehitrecordhigh

19.1percent

inMarch2023.Since

then,theratehasdroppedtoaround10percent.Accordingto

Statista

,foodpricesarestillrisingintheUK,butataslowerpace.

Trends,Insights&BestPracticesforMultichannelBrands9

EuropeanGroceryShoppersAreAdoptingCost-ConsciousAttitudes

More

TheMikMakShoppingIndexfoundEuropeancustomersareadoptingmore

cost-consciousattitudes.Shoppers’basketsizesareremainingsteady

despiteasurgeinfoodprices,buttheaveragevalueofagroceryretailerbaskethasdecreased.Thatmeansit’slikelyconsumersarechoosingmorelower-pricedproducts,orprivatelabels,andmightbeshoppinglessfoodandbeveragesaltogether,tokeepabudgetforotheritems.

Europeanshoppersareincreasinglydigitallyinfluenced.Profitero’sstudy

Trends,Insights&BestPracticesforMultichannelBrands10

revealedthat30percentofGermanshoppersand25percentintheUKarecheckingpricesanddealsonlinewhilecompletingtheirshoppingina

physicalstore.

*PurchaseIntentRate:

Thepercentageofshopperswhoclickedthroughtoatleastoneretailer

*PurchaseIntentClicks:

Thenumberoftimesashopperhasclickedthroughtoatleastoneretailerduringasinglesession

ofGermanshoppersarecheckingprices

anddealsonlinewhileshoppingin-store.

30%

HereareafewmoreimportantEuropeaneCommerceGroceryinsightsfrom

MikMak’s“NewYearNewMe2024-Europe”report

:

●

64percent

ofconsumersstillpreferbuyinggroceriesoffline,but

today’sconsumersarefocusedondigital,impactingbotheCommerceandbrick-and-mortarpurchases

●ThroughouttheUKandFrance,GrocerybrandsarelandingacategorybenchmarkPurchaseIntentRate*of8.2percent

●TescoisthetopretailerforGroceryshoppersintheUK,and

IntermarchéinFrance,basedontheshareofPurchaseIntentClicks*.

USGroceryTrends

IntheUnitedStates,foodinflationslidto2.9percent,year-on-year,inNovember2023,accordingto

TradingEconomics

.That’samorethan3xdropfromAugust’s11.4percentpeakfoodinflation.

USShoppersAreTurningtoEssentialGroceryItems

Despitefallingfromtoweringhighs,manyUSshoppersarekeepingacloseeye

onprices.

Profitero’sDigitallyInfluencedShopperstudy

foundthat34

percentofUSshopperswillcheckpricesanddealsonlinewhenshoppinginstore,thehighestshareofallresearchmarketscoveredinthereport.

Arecent

Dunnhumbyreport

alsofoundthat:

●40percentofconsumersshopatmultiplegrocerystorestofindtheproductwiththebestvalue

●52percentofshopperssayit’s“extremelyimportant”forbrandstogivethemrelevantcoupons

ThatsamereportalsosuggestshighUSfoodpriceshaveeatenintoshoppers’bankaccountswith36percentsayingthey’veskippedordownsizedmeals

becauseoftheirfinances.

11

USGroceryTrends

Accordingtothe

MikMakShoppingIndex

,eCommerceYoYGroceryPurchaseIntentRateshavetickedlowerinrecentyears.Theyfell

from4.31percentin2021to2.7percentin2023.

GroceryConversionRates

Eventhoughhighfoodpriceshavehitconsumers,shoppersarestillspending.Theyjustappeartobebuyingmoreessentialitems.HerearesomeotherkeyMikMak

ShoppingIndexfindingsaboutGroceryconsumersintheUS:

●TheaverageGrocerycartincludes

12.4items

.

●Walmartdrivesthemostin-markettrafficforGrocerybrandsamongthetopfiveretailerswith41.2percentofPurchaseIntentClicks.TargetandAmazonaresecondandthirdwith22.1percentand18.6percent,

respectively.

●RetailersarerelyingonhotGrocerysalestooffsetmerchandisepullbacks:ForretailerslikeWalmart,strongGrocerysalesareoffsettingslower

merchandisesales.Thatmaymeanshoppersarecuttingdownonotherpurchases,suchastechnology,furniture,ortechnology.

Trends,Insights&BestPracticesforMultichannelBrands12

3.AlcoholTrends

Asshopperscutbackongroceries,they’redroppingalcoholfromtheirshoppinglists.Accordingtoa

JustDrinks

article,morethan50percentofshopperswhoreportreducingtheirgroceryshoppingsaytheyhavecutalcoholspending.

Still,notallshoppersaredroppingalcoholaltogether,andmanymaybeoptingforlower-pricedalternatives(likesparklingwineinsteadofchampagne).Theearliercitedreportfound33percentofshoppershavestartedbuyingless

expensivealcohol.

EuropeAlcoholTrends

InEurope,Alcoholpricesmaybeontherisethisyear.Accordingto

Eurostat

data,Alcoholpricesrose9.8percentinthelastyear,whiletheoverall

consumerpriceindexforcountriesontheeurosatat5.3percent.

EuropeanUnionMonthlyInflationRate:AlcoholicBeveragesandTobacco

Source

Trends,Insights&BestPracticesforMultichannelBrands13

Top5RetailersforAlcoholBrands

byShareofPurchaseIntentClicks

ASurgeinAlcoholeCommerceLaunchedtheNewYear

FR

IntheUK,thebestmonthsforAlcoholeCommerceby

UK

PurchaseIntentRatein2023wereFebruary,January,andApril.InFrance,January,March,andMayhaveseenthebestconversionratesforAlcohol.ItseemsthatAlcoholbrandsinEuropeshouldnotsloworstopcampaigningafterthe

end-of-yearfestiveseason.Especiallyforoccasion-based

opportunitiesatthebeginningoftheyearsuchasValentine’sDay,St.Patrick’sDay,andtheSixNationsrugby

championship.Afewmoreinsightsfrom

MikMak’s“NewYear,

NewMe”-report

here:

●FollowingSearch(paidandorganic),SocialMedia

drivesthesecondmostin-markettrafficwith20

percentofPurchaseIntentClicksintheUKand37.9percentinFrance.

●FacebookistheleadingsocialmediaplatformdrivingAlcoholeCommerceinEurope.

●IntheUK,Amazongetstheleadingshareof

in-marketshoppertraffic,with28.4percentof

PurchaseIntentClicks,followedbyGrocerygiants

Tescoat15.7percent,andSainsbury'sat9.4percent.

USAlcoholTrends

InNorthAmerica,pricesforonlinealcoholicbeverageswereexpectedtoclimbbymorethan5percentin2023,accordingto

Statista

.Thisinflationispredictedtorollbackto3.95

percentby2025.

Estimatedyear-over-yearchangeofalcoholicbeverages'onlinepricesinNorthAmericafrom2019to2025

At-HomeDrinkingIsontheRise

InflationmaybecausingmoreUSdrinkerstopourtheirownbeveragesathome.

Accordingto

TheSpiritsBusiness

,26percentofUSshoppersarespendingmoreon

alcoholforat-homeconsumptionthanatbars.Thoseat-homedrinkersmaystilloptforpremiumproductsdespitehigherprices.Theearliercitedreportfound45percentof

thosesameshoppersaremorewillingtobuypremiumalcoholproductsathomethanatanoutsidevenue.

AlcoholShoppersFillTheirCartsWithNearly6ItemsPerTrip

MikMakfoundtheaverageAlcoholcartincludes5.9items.Whiskeyismostoftenatop

10product,alongwithvodka,rum,beer,andliqueur.

CarolynBrownofABInBevon

ListenNow

innovationandinspirationinthebeer&

spiritsindustry

AlcoholPurchaseIntentRatesSoarattheBeginningoftheYear

IntheUS,PurchaseIntentRatesforAlcoholwerehighatthebeginningof2023,similartotheEuropeantrends.From

Aprilonwards,theytookanosedive.Weobservedanupwardtrendtowardsthelastquarterandtheend-of-yearholidayseason,andweexpectthistocontinuestarting2024.

MainBeautyCategoriesAreExpectedtoGrow

Accordingtoa

McKinseystudy

,demandforproductsacrossthefourmainbeautycategories;Fragrance,Makeup,Haircare,andSkincare,isexpectedtoclimb.

Fragranceisprojectedtogrowmost,atarateof7percentYoYthrough2027.Thenextthreeleadersareallprojectedtogrowatarateof6percenteachduringthattimeframe.

4.Beauty&PersonalCare

HighinflationputadentinBeautyandPersonalCaresales.Evenas

inflationcalms,it’sstillimpactinghowshoppersbuyandwhattheybuy.Hereareafewtrendstowatchforin2024:

ManyHotPandemicProductsAreTurningCold

AccordingtoEuromonitor,aseconomicpressuresqueezesconsumers,they’recuttingdownspendingonsomepopularpandemicproducts,

suchassupplementsandvitamins.

HealthProductsArePerformingWell

Euromonitoralsonotesthatover-the-counterdrugsremainpopular,andsalesareexpectedtoremainsteadyasexpertsanticipateanother

roughcoldandfluseason.

Trends,Insights&BestPracticesforMultichannelBrands17

EuropeBeauty&PersonalCareTrends

InEurope,higheconomicpressureappearstobecausingBeautyandPersonalCareshopperstoreducespendingandshopmorestrategically.Accordingto

CosmeticsDesign

,45percentofFrenchshoppersexpecttocutdownonBeautyproductspending.Additionally,

CosmeticLabs

foundthat37percentofFrenchcosmeticsshopperssaytheydon’tpurchaseuntiltheyfindadiscount.

MoreSelectiveShoppingDuetoPriceHikes

Accordingtothe

MikMakShoppingIndex

,Beautybasketsizesareshrinkingwhilebasketvaluesarerising.ThatmaymeanEuropeanshoppersareshoppingmore

strategicallyandpouncingonqualityitemstheyseeasessential.Hereareafewmoreimportantinsightsthisguidefound:

●BeautyhasclimbedtherankstobecomethethirdmostpopulareCommercecategoryinEurope.

●AmazonisdrivingthemostPersonalCareShoppertrafficinfivekey

markets.Ofthe

topfiveonlinePersonalCareretailers

,AmazondrawsinthemostPurchaseIntentClicks,andisthecategoryleaderinItalyandFrance.TheretaileralsoholdstheNo.1spotforBeautyinFrance.

●MetaisdominatingamongSocialeCommerceplatforms.Metahasa

higherPurchaseIntentRatethananyothersocialeCommerceplatforminEuropeandleadsacrossallfivekeymarkets.

Trends,Insights&BestPracticesforMultichannelBrands18

USBeauty&PersonalCareTrends

IntheUS,consumershavebeenstungbyhighprices

withintheBeautyandPersonalCaremarket.Inan

interviewwith

Glossy

,CharlottePalmerino,co-founderofskincarebrandDieux,saysmanybrandshikedpricestostayaheadofrisinginflation.Asof2023,theinflationforcosmeticsstandsat3.82percentaccordingtothe

USBureauofLaborStatistics

.

BeautyandPersonalCareInflationLagsBehindOtherCategories

Accordingto

NielsenIQ,

24percentofshopperssaytheyplantospendlessonBeautyproducts.Incomparison,29percentsaytheyexpecttospendmore.Inflationdoesn’tappeartohavehitthe

Beautyindustryashardasothers.InflationwithintheBeautysectorhasincreasedbylow

single-digitfigures,whereascategorieslikeFoodstreakedtodouble-digithighsinrecentyears.ThiscouldprovideopportunitiesforeCommercebrandstoemphasizesavings.

MikMak’s

2023BeautyeCommerceBenchmarksandInsights

reportfoundthatluxuryspendingisdecliningashighcostspinchshoppers’finances.Butsomemajorretailers,suchasAmazon,are

wideningtheirBeautyproductofferings.Hereareafewmorefindingsfromthereport:

AmazonIsLeadingBeautyRetailers

Amazonisbringinginthemosttrafficamongretailers,witha32.1percentshareofPurchaseIntentClicks.Walmartistherunner-upwith25.2percent.UltaandTargetareinthethirdandfourthspots,with18.4percentand17.8percent,respectively.CVSisinthefifthspotwith6.5percent.

ShoppersAreBuyingItemsinOneTrip

AccordingtotheMikMakShoppingIndex,theaverageBeautyshopper’scartisfilledwith6.3items.

Trends,Insights&BestPracticesforMultichannelBrands19

ToyConversionRatesTicked0.5PercentHigher

AtMikMak,we’veseeneCommerceconversionratestrickledownslightlyfrom2021,althoughtheywereafractionhigherin2023comparedto2022.

ConversionRatesforeCommerceToys

5.Toys

EuropeToyTrends

Highinflation,supplychainissues,andeconomicconcernscouldallbe

contributingtothenegativeoutlookforToysinEurope.However,

Euromonitor

stillexpectsWesternEurope’sToyindustrytogrowatarateof2percentCARGthrough2027.

USToyTrends

IntheUS,Toysalesfell8percentthroughSeptember2023,accordingtoa

Circanareport

.However,salesmaybepeelingbackfromlockdownhighsand

levelingoff.SomeHolidaysalesdatamightalsosignalaturnaroundinToys,with

thecategorybeingamongthetop-sellingcategoriesduring2023’s

record-breakingBlackFriday.

Trends,Insights&BestPracticesforMultichannelBrands20

HereareafewotherToytrends,accordingtothe

MikMakShopping

Index:

Single-ChildHouseholdsAreTopBuyers

In2023,UShouseholdswithonechildweremostlikelytobuytoysonline.

WalmartIstheTopRetailerforToyBrands

Rightnow,Walmartisdrivingthemostin-marketToyshoppertrafficintheUS,with40.5percentofPurchaseIntentClicks.

FacebookDrivestheHighestPurchaseIntentRates

With51.1percentPurchaseIntentRate(3xthecategorybenchmark),FacebookistheleadingsocialmediaplatformforToyeCommerce.

PurchaseIntentRatebySocialPlatform

PurchaseIntentforToyBrandsPeaksintheHolidaySeasonandinSpring

Whenlookingatthepastyear,asexpected,theMikMakShoppingIndexsawapeakinPurchaseIntentonDecember4th,leadinguptotheholidayseason.However,

thehighestPurchaseIntentRatesinthepastyearhappenedonMay9th,reaching57.5percent(3.4xthecategorybenchmark).Latespringandsummershowed

consistentPurchaseIntentRates.

Trends,Insights&BestPracticesforMultichannelBrands21

6.PetCare

EuropePetCareTrends

ThewarinUkraineappearstobeupsettingpetfoodsupplychainsinpartsofEurope.

Accordingto

AllPetFood

,Germanyand

FranceeCommercePetCarecompaniesareseeingadropinavailableSKUs.Germany’sSKUshaveplummetedby39percentand

France’shavefallenby35percent.

Thisslowdowninavailabilitymaybecausingpricestoleap.Accordingto

PetfoodNation

,lastyearsawmajorpricehikesforEuropeanPetCareproducts,includingthefollowingpriceincreases:

●Denmark:12percent

●Finland:12percent

●Netherlands:12percent

●UK:13.3percent

ThesearethetopEuropeanPetCaremarkets:

UnitedKingdom

GermanyFranceItalySpain

Source

DemandforPetCareProductsisClimbing

Despitehighprices,demandforPetCareproductsisexpectedtojumpinthefuture.AccordingtoFutureMarketInsights,theEuropeanPetCaremarketisanticipatedtogrowby

$11.5billionby2033

.

Trends,Insights&BestPracticesforMultichannelBrands22

USPetCareTrends

Highpetfoodpriceinflationdroppedto8.7percentYoYinAugust,accordingto

the

USBLS

.That’salmosta2percentagepointfallfromJulyhighs.Butthosecostsarestillhigh.Accordingto

ThePetfoodIndustry

,PetCareandFoodinflationarerunning3xhigherthantheconsumerpricingindex.

CatProductsandAmazonLeadtheWay

Hereareafewinsightsfrom

MikMak’s2023PetCareBenchmarksandInsights

:

CatLitteristheMostPopularPetCareProduct

AverageBasketSize

5.4items

1.CatLitter

2.Chickenflavoredcatfood(13.5lbbag)

3.Chickenflavoredcatfood(3.15lbbag)

4.Enalaprilmaleatetabletsfordogs

5.Carprofentabletsfordogs

Top5ProductsbyType(BasedonSales)

AmazonandChewyLeadRetailers

Whenitcomestoshareof

PurchaseIntentbytopfivePet

Careretailers,Amazonisthe

leaderwith31.9percent.Chewyisnextwith24.9percent.Petcoisinthethirdslotwith16.6percent.

Walmartisfourthat15.5percent,andPetSmartroundsoutthetopfivewith11.1percent.

ShareofPurchaseIntentbyTop5Retailers

ListenNow

PetcoCMOTariqHassanonkeepingupwithchangingconsumer

trendsineCommerce

Trends,Insights&BestPracticesforMultichannelBrands23

HowtoDriveProfitabilityandReduceCostswithMikMak

Becauseofitsimpactonconsumerbehavior,inflationinevitablyshapesbrands’advertisingandmarketingstrategies.Consumerdataandsalesconversion

analyticsaremoreessentialthaneverbeforetooptimize(andjustify)budgetallocationandspending.

MikMakallowsmultichannelbrandstocreatefrictionlesscommerce

experiencesacrossallmediaandbrandwebsites,acceleratingsalesbothonlineandinstores.Byusingourtechnology,brandsgettocollectfirst-partydataat

allstagesoftheshoppingjourneyandmonitorandanalyzecustomer

conversionconsistently.Here’showindustry-leadingbrandsincreasetheirdigitalmarketingprofitabilitywithMikMak:

ImproveMarketingEffectiveness

TooptimizeprofitabilityanddigitalmarketingROI,youneedtobeabletomeasureandlookatyourperformancesfromeveryangle.

TraditionalMediaMixModelingistime-consumingandnotableto

provideenoughgranularitytoidentifythebestperformingmarketingcombinationstodrivesales(products+platforms+creative+retailers,etc.).WithMikMakyoucan:

●Leveragereal-timetransactionalinsightsfromyour

marketinginitiativestounderstandhowaudiences,channels,influencers,andretailersconvert.

●Seewhatelseisinyourconsumers’shoppingcarts.Checkifyourproductpositioningandpricingmatchtoyouraudienceandtheircurrentneeds.Howdoesyourb