Leading advisors on consumer complexity, Circana hosted its annual State of the Industry event with experts delivering the economic outlook for the year ahead, recommendations on how the retail industry can maximise opportunities, and insights into consumer behaviour.

The economy has put consumers, and consequently the retail industry, under extreme pressure but Circana says this is set to change in 2025 with an opportunity to change the conversation from price and affordability; however, consumers will take time to shift from their cautious mindset.

Circana’s advice to brands and retailers is to provide ‘permissibility platforms’ such as:

  • ‘Indulgent Insperiences’ – bringing out-of-home experiences into the home
  • Amplifying affordability and inspiration – showcasing value with inspiring benefits and evolving the conversation beyond price  
  • Currency of convenience – finding a balance between creativity and convenience
  • Appealing (non) attributes – leveraging trends resonating with a sufficient consumer audience, such as sugar-free or high protein
  • Blurring boundaries – blurring category and channel boundaries to create excitement
  • Social sensations – social media currency contributing to outsized growth for brands

Circana insights director for Australia, Daniel Bone shares further insights brands and retailers need to consider to remain competitive.

Circana’s Daniel Bone presenting during the State of the Industry virtual event.

“When we talk about changing the conversation we’re talking about value – moving the dial towards benefit incentives rather than only price incentives. That’s how Australians determine value for money. It’s about price but equally about benefits that signify quality,” he said.

“Changing the conversation helps protect brands against ongoing price sensitivity and also allows us to create permission to spend in more creative ways.”

Technology will be another focus for brands and retailers in 2025, including the power of data and the need to harness it with greater precision. The quality of the data and how brands utilise it to deliver elevated customer experiences will set the competition apart.

AI will continue to play an important role in supporting productivity and creating opportunities for efficiency gains, including assisted workflows in retail operations and marketing activations.