When inflation hits, your pricing strategy inevitably feels the pressure. On the one hand, raising product prices will protect margins. On the other, you can’t risk pricing yourself out of the market. When consumers feel this pressure, their spending habits are likely to change, especially in developing countries and high-inflation regions.
In Asia, the introduction of a sugar tax aimed at improving public health has added extra tension, affecting FMCG brands - from raw materials to the point of sale. For instance, in the Philippines, the sugar tax now mandates a tax of PHP10/ USD 20 cents per liter of sugar-sweetened beverages such as juices and soft drinks. The rate will increase by 4% each year, with other countries, including Thailand, Vietnam and Malaysia, phasing in a similar tax over the next five years.
So how do you set prices in different countries when market changes like inflation and regulatory developments hit?
Taking the guesswork out of your pricing strategy is the first step to protecting your revenue. How well