Aug 27: For years, low prices have been one of the easiest ways for brands to attract shoppers. Discounts, flash sales and promotional offers encouraged consumers to buy more and buy quickly. But that approach is becoming less straightforward. Consumers are increasingly asking whether a product is worth the money rather than simply looking for the cheapest option.
This change is creating a more value-conscious consumer. Price still matters, particularly when household expenses are rising, but shoppers are also considering quality, durability, convenience, performance, customer service and the overall experience before making a purchase.
Research from McKinsey supports this shift. Its 2025 State of the Consumer research, based on more than 25,000 consumers across 18 markets, found that 79% of surveyed consumers were trading down. However, consumers were not simply moving towards the cheapest products. They were making different spending choices across categories, saving where they could while continuing to spend on products and experiences they considered worthwhile.
The Cheapest Option Is Not Always the Best Deal
A lower price can be attractive, but it does not automatically mean better value.
A cheaper product may need to be replaced more frequently, offer weaker performance or come with limited after-sales support. A more expensive product can sometimes make more sense if it lasts longer or provides better functionality.
This is changing the purchasing question from “How much does it cost?” to “What am I getting for what I am paying?”
That distinction is becoming increasingly important for brands competing in crowded markets.
Consumers Are Redefining What Value Means
Value means different things to different consumers.
For some, it means getting a good product at a reasonable price. For others, it means buying something durable, convenient or well designed. In categories such as travel and hospitality, value can also mean getting a memorable experience.
McKinsey has identified the emergence of a “value now” consumer who is making more deliberate choices about where to spend and where to save. Consumers may economise on products they consider less important while continuing to spend on categories that matter more to them.
This explains why a consumer can look for discounts on everyday purchases while still paying a premium for a product they genuinely value.
Rising Costs Are Making Consumers More Selective
Cost-of-living pressures are playing a major role in this behaviour.
When consumers feel financially stretched, they are more likely to research products, compare prices and consider whether a purchase is necessary before spending. Some may delay purchases, buy smaller quantities or wait for promotional periods.
McKinsey’s 2025 consumer research found that rising prices remained the number-one consumer concern across the 18 markets surveyed, while more than half of consumers said they look for deals on every purchase.
For brands, this means a discount may get someone through the door, but it may not be enough to convince them to stay.
Quality Is Becoming Part of the Price Equation
Consumers have more information available to them than ever before.
Online reviews, comparison websites, social media videos and creator recommendations allow shoppers to research products before spending their money. They can compare specifications, look at customer experiences and identify alternatives within minutes.
McKinsey research has also found that price and quality remain two of the most important product characteristics influencing purchasing decisions globally.
This puts greater pressure on brands to prove that their products deliver what they promise.
A product that costs less but performs poorly may ultimately be perceived as worse value than a product with a higher upfront price and better performance.
Durability Can Justify a Higher Price
Durability is becoming an important part of the value proposition.
Consumers may be prepared to spend more on products that they expect to use for several years. This applies to everything from electronics and appliances to furniture, footwear and luggage.
Warranties, repair services and replaceable components can further strengthen this proposition.
For brands, communicating product longevity can therefore be just as important as communicating the initial price.
Consumers Are Researching Before They Buy
The growth of digital commerce has made comparison shopping almost effortless.
Consumers can check several retailers, read reviews, watch demonstrations and search for alternatives before completing a purchase. Social media has made the process even more immediate.
A product can attract attention because of an advertisement or viral post, but customers can quickly discover negative reviews or complaints as well.
This has made the actual customer experience increasingly important.
Marketing may create interest, but product performance determines whether consumers feel they received value.
Discounts Alone May Not Create Loyalty
Discounts remain an important part of retail, but relying on them too heavily can weaken a brand’s positioning.
If customers become accustomed to constant sales, they may begin to question the regular price and simply wait for the next promotion.
Brands therefore need to communicate the reasons behind their pricing. Quality, performance, durability, service and product benefits can help consumers understand why something is worth paying for.
The objective should not always be to make the product cheaper. It should be to make its value clearer.
Value Does Not Mean Cheap
Being value-conscious does not necessarily mean buying budget products.
A consumer might buy fewer clothes but spend more on a well-made jacket. Someone may keep their smartphone for longer and eventually upgrade to a premium model when the benefits justify the expense.
Similarly, a traveller might take fewer holidays but spend more on an experience that feels special.
This is creating a “buy less, buy better” mindset in some consumer categories.
The New Consumer Equation: Price + Quality + Experience
The modern value equation is becoming more complex. Consumers are weighing price, quality and experience together rather than treating price as the only deciding factor.
A low-priced product that does not meet expectations may deliver little perceived value. A premium product, on the other hand, can justify its price when consumers believe it offers superior quality, convenience or a better overall experience.
The same applies to services. A traveller may pay more for a hotel if the location, service and experience justify the additional cost. A consumer may choose a slightly more expensive delivery service if it provides greater reliability and convenience.
For brands, this means perceived value is increasingly about the complete customer proposition, not simply the price tag.
What About Indian Consumers?
The shift is also relevant to India’s increasingly diverse consumer market.
PwC’s Voice of the Consumer 2025: India perspective surveyed 1,031 Indian consumers as part of a global study involving more than 21,000 consumers across 28 countries. The research found that Indian consumers consider several factors when choosing food products, including taste, price and nutritional value. Better value for money was also among the reasons consumers considered when switching brands.
The findings highlight an important point: price and value are not the same thing. Consumers can remain price-conscious while expecting products to deliver better quality and benefits.
Experience Is Part of Value Too
Value is no longer limited to physical products.
In travel, hospitality, dining and entertainment, consumers are increasingly considering whether an experience justifies its cost.
A hotel that costs more may still feel like better value if it offers excellent service, a convenient location or a memorable experience. Similarly, consumers may pay more for a service that saves time or reduces inconvenience.
As a result, the value equation increasingly includes convenience, experience and emotional satisfaction.
Sustainability Can Strengthen Value
Sustainability can also influence how consumers evaluate products.
Items designed to last longer, be repaired or be reused can appeal to shoppers who want to reduce waste. Resale and refurbished markets are also giving consumers more ways to obtain products without always buying new ones.
However, brands need to support sustainability claims with specific information. Consumers are becoming more aware of vague claims and are more likely to trust measurable details about materials, product lifespan and repairability.
What Brands Need to Do
The move towards value-based purchasing requires brands to rethink their marketing strategies.
Businesses can strengthen their value proposition by focusing on:
- Quality: Explain what makes the product better.
- Durability: Show how long it is designed to last.
- Functionality: Demonstrate practical benefits.
- Transparent pricing: Explain what consumers receive for their money.
- Customer service: Highlight warranties, repairs and after-sales support.
- Reviews: Use genuine customer experiences to build trust.
- Convenience: Show how the product saves time and effort.
- Personalisation: Make the offering more relevant to individual customers.
- Sustainability: Provide clear evidence behind environmental claims.
The goal is not simply to persuade consumers that something is affordable. It is to show why it deserves its price.
The Future of Value-Based Consumption
The move towards value does not mean that consumers will stop looking for discounts. Price will remain important, especially when economic uncertainty affects household budgets.
What is changing is how shoppers assess the relationship between price and benefits.
Consumers are becoming more selective about where they save and where they spend. They may choose a cheaper option in one category while paying more for something they believe offers better quality or a more meaningful experience.
For brands, the lesson is straightforward: competing on price can win a sale, but delivering genuine value can build trust and loyalty.
As consumers become more deliberate with their spending, the brands that succeed may not be those offering the lowest prices. They may be the ones that can clearly answer a simple question:
Why is this worth my money?