The recessionary/inflationary economic conditions impact every company and marketer.
Buying habits… response rates… leads, and sales are impacted.
And so is direct-to-consumer marketing… including E-commerce.
The supplement industry marketing is no different.
Here are 5 things you should know – Great lessons for not only the supplement market but for all marketers:
- Shifting buying habits because of the economy.
Consumers are being crushed by inflation.
Recession fears have changed buying habits.
Your prospects and customers are being impacted by the fear not only of rising prices but job stability…many having been laid off.
Those on fixed incomes or tight budgets are hit hard.
As a marketer, the realities of this marketplace must be understood.
Having been through six recessions, we know how your copy, offer, and strategy must adjust to new marketplace realities.
Otherwise, you get a lower response and fewer leads and sales.
- The supplement industry reflects the marketplace changes.
In this market environment, the supplement industry statistics are interesting to observe.
Over the years, my agency team has launched and helped multiple supplement companies succeed.
We pioneered the trend towards direct-to-consumer marketing and helped perfect E-commerce strategies that reflect marketplace realities.
Over 20 of the 104 Marketing Awards we have won are for the industry.
The supplement market today has grown dramatically.
It’s currently at a $61.1 billion market and got a tremendous boost during the pandemic.
Indeed, not only were there dramatically more people buying supplements to build up their immune systems and improve their health, but E-
Commerce took off, as people didn’t go to the stores.
The post-Covid dynamic naturally has resulted in a decline, but not by much: the supplement market had shot up 14.5 % during COVID-19 and back to a growth of about 1.9% at the end of COVID-19.
- E-commerce trends
E-commerce shows some interesting statistics that reflect how companies need to change their marketing and how the recessionary/inflationary psychology has impacted marketers.
In the last 15 years, E-commerce has grown dramatically for supplement marketers. During Covid it shot up a record 87.3% in 2020. It was up 30% in 2021. It went up only 5.7% in 2022. But it’s still going up.
- Consumer changes ahead
One of the impacts of the economy has been a transition by many consumers. They are cutting back on high-priced products and looking for low-priced substitutions or eliminating the product entirely.
Many marketers were caught off guard as their database, and prospecting copy did not reinforce or justify the expenditure when people cut back on purchases.
Further, some supplement buyers turned to retail stores for lower-priced supplement options.
And others searched for a cheaper product online.
All of this requires copy-ad strategy and preemptive changes.
- Catching marketplace trends
Despite the recession/inflation fears, the biggest bright spot in supplement marketing was sports nutrition, weight management, and those who are looking for protein, due to a tremendous increase in active lifestyle.
There is always a new trend… a bright spot.
Supplement marketers catching the trend are doing extremely well.
If you need help with marketing in this new environment or how to change your copy offer and strategy to reflect the marketplace realities to grow your business and retain customers, we would be glad to talk to you. We can discuss what you’re doing, give you some ideas, and see how we can help.
The best thing to do is let’s start with a conversation. Contact Michael at 615-933-4647 or email him at [email protected].