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Low cost era: “More for less” goes mainstream.

Trend 10

Low cost era

Low cost era

“More for less” goes mainstream.

Trend axes

  • Lower costs
  • Home brand
  • Skimpflation
  • Shrinkflation

Some figures

11%

Share of low-cost petrol stations in Spain, including brands such as Ballenoil, Petroprix and BonÀrea, among others. A number that grew by 40%–45% in 2021.

75%

Share of consumers who expect prices to keep rising through the second half of 2022, according to a survey by Gartner.

46.2%

Market share reached by own-brand products in Spain, according to EAE Business School, an increase of 7 points in 3 years.

79%

Share of Spaniards for whom price is the most important criterion when buying clothes, according to the European Fashion Report.

Buying cheap and responsibly

The increasingly alarming inflationary economic context and the growing offer focused on low prices in practically every sector are leading to the resurgence of the low-cost era. People have to tighten their belts and try to make their shopping basket as cheap as possible.

This forced change in consumption habits has prompted an immediate response from brands, which are launching campaigns aligned with people's needs in the face of an imminent loss of purchasing power.

The market is filling up with low-cost brands and lines that satisfy consumers without them having to give up the moment of purchase. In sectors such as food, beauty, fashion and transport, low-cost options were already a first choice for many people, who find in these lines a satisfying alternative.

And although there needs to be a market for everyone, the rise of this trend can lead back to bad habits and invite uncontrolled consumption. We see it every day on social media. Hauls of fast fashion, home decoration and beauty routines for every budget flood the profiles of accounts whose content is based solely on consuming these products.

In response, well-positioned brands appeal to people's individual responsibility, since looking for and buying a product should be a consistent, long-term decision.

But is it possible to buy cheap and act responsibly at the same time? For experts, success will lie in knowing how to avoid the risk of consuming for the sake of it.

Cases

01 / 05

Zorraquino spotlights

  1. 01

    Although low cost is becoming established as a differentiated value proposition, it must safeguard fair human and environmental practices and not encourage hyperconsumption.

  2. 02

    The rise of low-cost products in sectors such as fashion and beauty must not justify consuming for the sake of it. Brands appeal to individual responsibility.

  3. 03

    Brands whose bad practices people detect, yet keep turning to them to meet their needs, lose credibility.

Zorraquino playlist

  • VintageGinebras · 2021
  • Luces SensacionalLos Látigos · 2005
  • Busco algo baratoMecano · 1984

More on the trend

References

Pages 196–216 of the report