The U.S. consumer products industry is contending with a convergence of headwinds: elevated inflation, shifting consumer priorities, and a volatile macroeconomic environment. While the instinct in challenging times may be to pause or retreat, the companies that endure and evolve are those that lean in — making strategic choices rooted in clarity, purpose, and value.
Philippe Harousseau and Evan Eckman, fractional CMOs at Chief Outsiders, offer practical, time-relevant strategies to help CPG leaders manage uncertainty and position their brands for sustainable success. Their insights reflect not only deep operating experience leading diverse consumer product brand portfolios at companies like Unilever and Nestlé, but also learnings from Chief Outsiders’ 5,000+ engagements across more than 70 industries.
Consumer Sentiment and Spending Behavior
Consumer confidence is a critical indicator of economic health, reflecting the overall optimism or pessimism of consumers regarding their financial situation and the economy. Recently, consumer confidence has been on a decline due to various factors, including continued inflationary pressures and an acute sense of unpredictability. Inflation erodes purchasing power, making consumers more cautious about their spending. Peter Drucker once said, "The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic". This underscores the need for businesses to adapt their strategies to the current economic realities.
In uncertain times, the word “value” takes on heightened meaning. Consumers aren’t just looking for affordability — they’re looking for confidence in what they buy. Low price items may thrive, but not the cheap ones. Today’s shopper has little patience or budget for poor quality. Brands that are clearly positioned, well-defined, and consistently deliver on their promise will outperform generic or ambiguous offerings.
"In a value-driven market, it’s crucial to offer competitive pricing without compromising on quality. Bundling products can provide consumers with perceived value and drive sales growth."
– Evan Eckman, CMO at Chief Outsiders
In times of economic turbulence, a brand’s purpose becomes more than a marketing line — it becomes a compass. When brands authentically live their purpose, it helps guide decision-making, earn trust, and galvanize internal teams. However, purpose must be embedded, not performative. A hollow or purely philanthropic stance won’t move the needle.
"True purpose shows up when it's hard to hold the line. Brands with a deeply integrated 'why' tend to outperform those that rely on surface-level messaging."
– Philippe Harousseau
As Philip Kotler and Christian Sarkar argued in the Marketing Journal, Purpose has become the 5th “P” of marketing — a core element that drives positioning, preference, and greater resilience in times of crisis.
3. Optimize Pricing — But Do It StrategicallyDynamic pricing strategies — guided by customer data, demand patterns, and competitive insights — can help brands remain responsive without racing to the bottom. Bundles, limited-time packs, and right-sized SKUs can enhance perceived value while protecting margins.
4. Strengthen Customer Relationships and PersonalizationLong-term resilience is rooted in strong customer relationships. Now is the time to enhance loyalty programs, increase personalized communication, and demonstrate that you understand and support your consumers’ evolving needs.
"Excellence comes from human beings doing things of value that customers find memorable."
– Tom Peters
While tariff impacts remain uncertain, diversified sourcing and local partnerships can improve flexibility and resilience. It’s not just about cost control — it’s about continuity and speed. Redundancy and agility matter more than ever in a volatile environment.
"The best way to predict your future is to create it." – Peter Drucker
6. Innovate With IntentInnovation doesn’t need to mean big R&D bets. It means adapting to what matters most today. Introducing new product lines that cater to current consumer needs and preferences can drive growth. Adam Morgan, author of Eating the Big Fish, notes, "A constraint should be regarded as a stimulus for positive change—we can choose to use it as an impetus to explore something new and arrive at a breakthrough". This perspective encourages companies to view current challenges as opportunities for innovation.
7. Track, React, and Move with SpeedRegularly gathering and analyzing consumer feedback is vital for adapting strategies quickly. Staying informed about market trends and economic indicators allows companies to anticipate changes and adjust accordingly. As Drucker put it: "The relevant question is not simply what shall we do tomorrow, but rather what shall we do today in order to get ready for tomorrow." It’s a mindset that drives strategic adaptability.
The path forward isn’t about explosive growth — it’s about clarity, control, and consistent delivery. Brands that remain anchored in value, guided by purpose, and connected to their consumers won’t only survive — they’ll earn the right to thrive when the market turns.
Authors:
Partner & CMO Chief Outsiders |
Partner & CMO Chief Outsiders |