Great Brands Stay Great in Volatile Times

Marketing Resilience in the Face of Rising Tariffs and Perceived Inflation

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If you’ve walked through a supermarket in Kuala Lumpur or scrolled through an app in Jakarta lately, you’ve probably noticed something: people are thinking a little harder before they spend. That’s not surprising. Rising tariffs, taxes, and inflation headlines have made everyone more cautious — not just about what they’re paying now, but about what might happen next.

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And that’s the real story here. It’s not just the actual price tags driving behavior. It’s the expectation that prices will keep rising. That expectation is powerful — maybe even more powerful than the price increases themselves.

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Feelings First, Facts Second

Look at the numbers: inflation is easing across much of Southeast Asia. Malaysia’s inflation dropped below 2% in late 2023. Singapore’s inflation is holding at around 1.5–2%. But ask consumers how they feel, and the answer tells a different story.

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Nearly 70% of Singaporeans say they’re worried about losing purchasing power. In Malaysia, over a third believe the cost of living is worse than in neighboring countries. Many are reacting more to uncertainty — what they see in headlines, or feel in their wallets — than to official numbers.

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This gap between perception and reality matters. Because people don’t make buying decisions based on CPI data. They make them based on how secure they feel. And when fear of higher prices is in the air — whether driven by tariff announcements, new taxes, or global instability — many start tightening their belts before anything actually changes.

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So, What Should Brands Do?

When sentiment shifts, it’s tempting to panic. Some businesses do just that: they slash prices, cut spending, or stop investing in brand building. That’s rarely the right move.

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Strong brands take a longer view. They recognize that while prices may fluctuate, trust is an asset that compounds. They listen to their customers, stay calm, and adjust smartly — not reactively.

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That might mean introducing smaller pack sizes, so price points feel more manageable. It might mean creating value bundles, or offering loyalty rewards that help stretch a customer’s dollar. And most importantly, it means being clear and transparent when prices do rise.

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Take PepsiCo, for example. They raised prices by 15% globally in 2023, but saw only a small drop in volume. Why? Because people still saw the value. The brand didn’t hide, didn’t spin — it communicated clearly and stayed consistent. In the long run, that matters.

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Here in ASEAN, it’s no different. According to NielsenIQ, 80% of Singaporeans are now actively price-aware, and 59% are looking for deals. That doesn’t mean they want the cheapest product. It means they want fairness, clarity, and a little help making their ringgit or peso go further.

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What to Watch

If you’re running a business, you can spot the signs of price pressure early — long before they show up in your P&L. Watch for smaller basket sizes. Search spikes for “discount” terms. More people are using installment plans or budgeting apps. These are all signals that your customers are getting more careful.

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That’s not a crisis. It’s an opportunity to stay close. The brands that check in, show empathy, and make life just a bit easier will be the ones customers stick with when things improve.

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The Bottom Line

Volatility isn’t new — but it feels more personal now. People don’t want to be sold to; they want to be understood. If your brand can offer real value, communicate with clarity, and show up for customers when times are tough, you’ll earn something much better than a short-term sale: long-term loyalty.

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When uncertainty rises, people look for steady hands. Be that brand. Stay calm. Stay great.

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