The ‘Upflation’ Formula: Halve the Ingredients, Double the Price
Jun 27, 2024
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Bloomberg consumer goods reporter Les discusses 'upflation' in consumer goods, where brands tweak products and raise prices. Topics include whole-body deodorants, inflation impact on prices, decline in personal care sales, introduction of premium products, and consumer shift towards sustainable consumption.
Upflation involves tweaking products and marketing for new uses to tap into consumer desires for premium items.
Companies are innovating with eco-conscious products to minimize waste and cater to consumer demands for sustainability.
Deep dives
Uplation: Tweaking Products for New Markets
Companies have responded to declining sales of staples like razors and shampoo by introducing upflation, a strategy involving tweaking products and marketing them for new uses. The trend focuses on creating more specialized and expensive products to tap into consumer desires for premium items. Notably, whole body deodorant has gained traction, showing that consumers are willing to pay for innovative offerings like this.
Head & Shoulders Bear Shampoo: Simplified and Costlier
In response to concerns about the medicinal nature of their regular product, Procter & Gamble introduced Head & Shoulders Bear shampoo with fewer ingredients. This new version is charged at a premium price despite being simpler, reflecting the upflation trend in the consumer market. The success of these upscale products is crucial for companies aiming to boost sales and cater to changing consumer preferences.
Wasteflation: Addressing Environmental Concerns and Waste
Another emerging trend in consumer products is wasteflation, driven by a desire to reduce waste and environmental impact. Companies are innovating by offering products that minimize waste, such as frozen vegetables that do not spoil. This eco-conscious approach responds to consumer demands for sustainable and cost-effective choices, indicating a growing awareness of environmental issues in product development.
You’ve probably felt the pain of inflation. And you’ve also probably heard about shrinkflation — when companies respond to inflation by keeping their prices steady and making their products smaller. But have you heard of ‘upflation’?
It’s a new tactic consumer goods brands are using to get people shopping again. From whole-body deodorant to more genres of razor, companies are tweaking everyday essentials and jacking up the price. On today’s Big Take podcast, Bloomberg consumer goods reporter Leslie Patton tells host Sarah Holder where to spot upflation in the wild – and how to avoid paying extra for everyday products.