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NCSolutions (NCS) has joined Circana!
With this acquisition, Circana expands its media capabilities to help clients better plan, target, measure, and optimize media investments across channels... read more
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Understanding How Tariffs Impact Global Consumer Behavior
The situation around tariffs and global trade requires constant monitoring. Beyond the visible price impacts are the ways tariffs affect consumer behavior. Price sensitivity and priorities among consumers will drive their decision-making across categories and industries. Circana tracks all the aspects affecting consumer behavior and uses AI-driven methodologies to harmonize retailers' POS data alongside data from multiple proprietary panels. Together, this data allows brands to activate strategies aligned with changes in consumer shopping behavior and trends.
How Are Tariffs Impacting Consumer Behavior?
Price Sensitivity
Consumers can accept a margin of price increases for retail goods. But the uncertainty around tariffs and their effect have caused consumers to adjust their purchase decisions. Understanding price sensitivity for consumers is vital, as is understanding messaging that resonates with consumers facing uncertainty.
Compounding Circumstances
The U.S. consumer is affected by many factors influencing their decisions. Tariffs and the uncertainty around them are a piece of a larger puzzle impacting shopping behavior. Rising debt and elevated prices alongside lagging wages have weakened consumer demand, most notably in discretionary general merchandise.
Shifting Focus and Changing Brands
Circana's forecasting data shows that uncertainty caused by tariffs and other economic concerns will make consumers prioritize their purchases and increase their likelihood of changing brands across categories. Retailers need to understand their existing market share, consider strategies for retaining consumers, and identify data-driven opportunities to reach potential new shoppers by aligning products and messaging to the attributes consumers are looking for.
Featured Solution
Get the Circana Tariff Playbook
Navigate Uncertainty with Data-Driven Insights
As a leading advisor on the complexity of consumer behavior, Circana provides holistic market and consumer insights, robust analytical models that leverage macroeconomic variables, and trusted industry expertise so you can navigate tariffs with confidence.
Our playbook solution will inform your strategic planning and tactical decision-making with insights to help you know consumer sentiment, assess vulnerability, understand footprint, predict demand, and adapt pricing.
Get data-driven insights so you can navigate uncertainty, protect pockets of elevated risk, and identify growth opportunities for your business.
How Do Tariffs Affect Supply Chains?
Accurate Consumer Data is Key in Supply Chain Management
The impact of tariffs will be strongly felt by suppliers and manufacturers globally. Retailers and manufacturers need to rely on robust consumer behavior data to accurately model and forecast shifts in consumer demand. Every shift in consumer spending behavior has a ripple effect that can impact across categories and industries.
Retailers Must Adopt Flexible Strategies
Early collaboration between retailers, manufacturers, and brokers is critical to navigate changes. Scenario planning must rely on an understanding of the flexibility and dynamic shifts in both tariffs and their global effects. News surrounding this subject requires retailers and manufacturers to stay updated and invest in modeling technology supporting the flexible nature of tariff changes.
