Most ecommerce businesses were prepared for sales to level off during the post-pandemic hangover, but the further descent of the economy in 2022 caught many brands off guard. Over 70% of businesses around the world are preparing for a potential recession in 2023.* They're adjusting their approaches to pricing, evolving operations, and shifting growth strategies to remain competitive.
Megan Sanchez, chief brand officer of Nature’s Select Pet Food, says, “We do our best not to pass cost increases down to our customers, but in 2021 we had two price increases on our core products, which is very out of the ordinary for us. We decided to write something that would explain why that's happening, with the cost of goods, fuel, trucking, and transportation.”
Other brands are slashing prices as a short-term way to boost sales. Although quick and deep cost cuts are tempting, brands should strike a balance between reducing immediate financial damage and investing in the future. The biggest key to flourishing beyond mere survival is investing in one brand asset: customer loyalty.