Brands are choosing transparency to communicate price changes—and consumers are still buying
. “Unfortunately, retailers and consumer packaged goods companies often approach price increases in a stealth mode,” he says. While some companies just raise prices, the trend of “shrinkflation”—keeping the price the same but giving customers less product for that cost—has also gained steam.For example, this year, a package of Hershey Chocolate Kisses may cost the same as last year, but the package weight has dropped to 10.1 oz. from 11 oz.
CEOs of bigger companies may feel comfortable with this sly tactic, but not so for those of brands like Oxford Pennant, which built authenticity and consumer-facing friendliness into its DNA. When Horesh sent the email and social media blast out in October, he made sure its tone matched the company’s irreverent branding. “We just felt that the right strategy was a PR communication strategy that was inclusive and helped our clients understand our reasoning,” says Horesh.