Inflation Inflated: Part 1 and 2 – The Consumer and Business Outlook

Insight Exchange by L.E.K. Consulting

In this episode, Claire Davies, Rob Haslehurst and Emile Santos explore the irony of businesses attempting to maintain price increases in an inflationary environment, even as they struggle with the rising costs of labor, logistics and raw materials.
"We live in a competitive capitalized economy, and ultimately competitive action is what they're looking for and no business is going to hold prices in a world where competition is driving consumers away from them."
Claire Davies is a Partner in L.E.K. Consulting's Consumer Practice, specializing in the food and beverage, beauty, personal care and direct-to-consumer sectors. Rob Haslehurst is a Partner in L.E.K. Consulting's Consumer Practice, focusing on automotive, home and entertainment, and he specializes in consumer-led growth strategies. Emile Santos is a Partner in L.E.K. Consulting's Consumer Practice, focusing on automotive and mobility as well as consumer health.
Claire Davies, Rob Haslehurst and Emile Santos were discussing the historically high inflation and its impact on businesses and consumers. They found that 90% of businesses were feeling material inflationary impact on their cost of goods sold, labor and raw materials. To offset rising costs, businesses were attempting to pass on price increases or use technology to redesign models and become more efficient while also diversifying their supply chains. Ultimately, their conclusion was that while all businesses feel the impact, their ability to pass on price increases varies by sector and competitive action will determine the outcome.
In this episode, you will learn the following:
1. How consumer businesses are dealing with inflationary pressures and the actions of the Fed to contain inflation.
2. Strategies businesses are using to offset rising costs, such as automation, process redesign and supply diversification.
3. The implications of price increases on consumer behavior and how businesses are responding to maintain consumer loyalty.
Connect with our experts on LinkedIn:
Claire Davies: https://www.linkedin.com/in/claire-davies-00145b8/
Rob Haslehurst: https://www.linkedin.com/in/haslehurst/
Emile Santos: https://www.linkedin.com/in/emile-santos-1820745/

Visit L.E.K. Consulting at https://www.lek.com/