Brand value between promotions, new consumers and demographic challenges

Italian society is changing, and shopping trolleys are changing with it. Increasingly smaller households, the over-65s are becoming more prominent, and consumers are entering shops more often but leaving with lighter bags. The frequency of purchases increases, but the average receipt falls. Less quantity, more selection. FMCG is now experiencing a new phase, no longer dominated by availability, but by reasoned choice. In this context, the role of the brand is put to the test every day. The Italian consumer, more than others in Europe, continues to recognise it as a distinctive value. According to the SWG-Centromarca survey, presented at the last Centromarca annual assembly, 81% of Italians see big brands as a driver of development, innovation and employment. Yet brand loyalty is won and defended in the field, every day.

In recent months, promotional activities have regained strength. After a post-pandemic period when 'being on the shelf' was sufficient, today retailers demand active, frequent, deep involvement. Promotions are once again the dominant sales lever. But beware: promotion is only useful if it is temporary, otherwise it risks eroding brand value and the resources needed to invest in innovation, sustainability and quality.

In a country where private label continues to grow but does not dominate, as is the case elsewhere, the Italian consumer defends the brand, but at a fair price. He looks for offers, but does not want to give up quality. The challenge for companies is clear: preside over convenience without giving up positioning. Offer value, not just price, even if this is important in the choice. And value, today, also depends on the ability to read social change. The average household has shrunk to 2.3 members and will be 2.1 within twenty years. Large families are thinning out, singles are on the rise, the self-sufficient elderly, and the over-65s with spending power. They are the new big spenders. The product must adapt, reduced portions, smart formats, flexible solutions. It is not just a logistical issue, it is strategy, it is analysis, it is vision.

In parallel, a young consumer who demands commitment is growing. Gen Z looks to brands that make clear choices, hence real sustainability, inclusion, authenticity. It is not enough to tell, you have to demonstrate. And it must be done without raising the price. Quality remains a non-negotiable condition, but today it is also measured through the values the brand represents.

For incumbent and family businesses, this scenario is not a brake but an accelerator. Investing in product and channel innovation, reading before others the weak signals of change, anticipating emerging needs, this is the approach that must guide us every day.