Leadership piece on inflation and reaction of Pakistani consumers . Arfa explains that inflation is a global phenomenon and one of the highest in the past 40 years, which means that there are generations of consumers who have never experienced this type of inflation.

The thought piece goes on to explain that consumer behavior towards categories varies and differs from category to category. She says that around 92% of consumers in July and August 2022 were concerned about inflation, and some categories, like food, are experiencing a reduction in demand, while others, like personal hygiene, are seeing people down trading in terms of brands and choosing alternative or value brands.

This suggests that marketers should learn from the past and not repeat the same mistakes, such as getting into a price war or a spiral of discounts. The discussion suggests investing in brand building and understanding how consumer behavior and decision-making is evolving.

The thought piece further explains that when brands compete solely on price, private label brands can end up being the winners, and it can harm the overall category in the long run, as operating profits will start getting hit, and it becomes difficult to invest in the brand.

Overall, the video provides some valuable insights into the impact of inflation on consumer behaviour in Pakistan, and the steps that marketers should take to navigate through these difficult scenarios.