EXPENSIVENESS
- Existing will cost more, with prices rising until the end of the year due to East-West conflict and value chain collapse.
- A questioning around the essential role of money between hyper-selective buyers and value-adding producers.
In 2020 the central topic was ‘pandemic.’
In 2021, ‘vaccine’,
Nowadays, everything is about ‘inflation.’
Regardless of how much you earn, where you live, your job, or political beliefs… the vast majority of humans today feel and experience at all times and sense what it’s about to check the bank balance to realize that actual money is just no longer enough.
According to the International Labor Organization global inflation index, this March registered a 9.5% growth compared with 2021. So, today it costs almost 10% more to exist compared to 2021. Sure?
Nowadays, you wake up every day to work with dedication seeking remuneration to build a future (or survive), only to be confronted with expensiveness, an emotional situation that, according to the American Psychology Association, affects the mental health of 26% of Americans.
It will be necessary to accept then that beyond materialism, consumerism, or communism, the emotional relationship with money is more profound than you think, and frustration related to its non-use/misuse can express through sleep lack, alcohol abuse, physical neglect, or sexual apathy, to mention some.
For consumers, the way to navigate expensiveness should be to find a better quality/price ratio beyond achieving the lowest cost. Never deprive ‘Premium’ experiences or products; instead, find those that stand out based on their tastes and expectations.
For companies, the goal will be to deliver products and services that add value compared to the average offer, affecting pricing strategy as less as possible.
Time to activate purchase strategies, generate aspirational imaginaries, or create economies of scale, always avoiding systemic sales. The price war is just around the corner.
When does the inflation train and expensiveness end? According to Deutsche Bank, at the end of this year, however, the economic collapse will follow in 2023-24, when the next global recession will be born. More significant than 2008 and 2020 combined.
We have been tense for three years since Covid.
Three years of reinvention.
Three years of accelerated innovation.
