Take a page from the CPG playbook
Diversify points of distribution. Establish or increase presence in value-oriented channels like mass-market retailers, warehouse clubs and dollar stores. Addresses consumers who: shift to more value-oriented channels, buy more private-label brands.
Emphasize preventive care. Focus on claims related to preventive health that can potentially limit traditional healthcare costs. Addresses consumers who: purchase fewer supplements overall.
Fine-tune price pack architecture. Build value offerings in non-club channels like drug and grocery stores where larger packs are not as readily available. Addresses consumers who: purchase smaller pack sizes, shift to more value-oriented channels, buy more on promotion.
Double-down on innovation. Bring compelling ingredients, new formats (e.g., “many-in-one” solutions) or other novel solutions to market. Addresses consumers who: buy more private-label brands, buy fewer supplements overall, buy more on promotion, shift to lower-cost formats.
Develop more targeted marketing tactics. Offer personalized discounts and other appeals to specific consumers. Addresses consumers who: buy more on promotion, buy more private-label brands.
VMS companies will need to prepare to ride out a downturn
Although VMS may be more resilient than other categories, shoppers say they expect to reduce spending if a recession occurs. By following strategies from other industries that have been effective during challenging economic conditions, VMS companies may be able to help consumers maintain their spend on brands they’ve grown to trust.