Published:15.07.2024
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Upflation: The New Trend Hitting Consumers' Wallets

Consumer goods manufacturers are introducing new personal care products with high price tags in a trend known as "upflation." Unlike shrinkflation, upflation involves creating niche products and marketing them at premium prices. This trend is seen as a strategy to recoup revenue lost as consumers cut back on spending due to inflation. Notable examples include high-priced total body deodorants and specialized razors for intimate areas.

The landscape of personal care products is undergoing a significant shift as consumer goods manufacturers introduce high-priced items in a trend dubbed "upflation." Unlike the well-known shrinkflation, where companies reduce product sizes while maintaining prices, upflation involves creating new, niche products marketed at premium prices. This approach targets consumers looking for specialized solutions, but it comes with a hefty price tag. Major brands like Proctor & Gamble and Unilever are leading this movement, offering products such as total body deodorants and specialized razors for intimate areas at significantly higher prices than their traditional counterparts.

Gillette's "Venus" razor is a prime example, designed specifically for "pubic hair and skin" to protect women's bikini lines from irritation. This razor is marketed at $15 for a pack of four, compared to $10 for a traditional razor. Similarly, Proctor & Gamble's total body deodorant costs $14 each, about twice the price of regular underarm deodorants. These products are part of a broader strategy by companies to offset revenue losses as consumers, grappling with rising prices for essentials, cut back on discretionary spending.

The shift towards upflation is also reflected in the marketing strategies of other industry giants. Unilever's research and development team highlights the growing demand for whole-body deodorants, citing surveys that show a significant portion of consumers seeking comprehensive odor control solutions. The Dove Men + Care line found that while only 2% of men currently use whole-body deodorants, 76% would consider trying them. This indicates a potential market growth driven by consumer interest in enhanced personal care.

However, experts’ express skepticism about the necessity of these high-priced products. Dermatologists argue that most people do not require total body deodorants and can manage body odor with basic hygiene practices such as using antibacterial soaps and changing clothes regularly. Despite these professional opinions, the marketing narratives around these products emphasize their specialized benefits, appealing to consumers' desire for enhanced personal grooming.

The economic backdrop of this trend reveals persistent inflationary pressures on personal care products. According to the Bureau of Labor Statistics USA, prices for personal care items rose by 1.3% year-over-year in May, with hair, dental, shaving, and miscellaneous personal care products increasing by 2.3%. This continued rise in costs has driven manufacturers to innovate in ways that justify higher price points despite consumer pushback against surging costs for necessities. The upflation trend reflects an industry adapting to economic challenges by reshaping its product offerings and pricing strategies.

 

Presented by the CzechTrade team in Chicago, USA

Source: seznamzpravy.cz