Rising cost of living will be the ‘ultimate test of brand loyalty’ – AANA CEO Josh Faulks

“Now is not the time to cut marketing budgets. Now is the time for us to invest in brands to position for the inevitable recovery.” That is the assertion of AANA CEO Josh Faulks.

Speaking today at the AANA’s annual Reset conference, Faulks acknowledged the challenges the industry is currently facing through high inflation rates and interest rate hikes.

As brands ask consumers to pay more for their products, with less discretionary income, marketers would see the “ultimate test of brand loyalty.”

“There is plenty of research and evidence out there that supports the proposition that brands that maintain or increase marketing spend during a recession or downturn clearly outperform their competitors and are much better positioned for the recovery,” he said.

Faulk’s opening speech is not dissimilar to hisrecent conversation on the Mumbrellacast in February.

He told the Mumbrellacast: “We’re seeing it coming through now. Businesses are cutting costs, and cutting staff. Just look at tech companies, for example, and their layoffs, and I don’t think we’re seeing the worst of it yet.

“We haven’t seen this kind of inflation for decades, and it’s a new ground for our industry because our members are asking their customers to pay much higher prices for products than they did before when real incomes are dropping, and this is a real ultimate test of brand loyalty.”

Faulks,who was recently appointed CEO of the AANA, has been charged with revitalising the AANA, enabling it “to be that voice at a particularly challenging and important time for our industry,” according to chair of the AANA Board, Martin Brown.

This morning Faulks explained that this year’s conference theme, “Be Better”, spoke to the industry’s responsibility to be a force for good – helping businesses to grow and doing more to support positive change.

“This is when we step up. This is when we thrive,” he said.

The themes extend across the topics the AANA will be presenting throughout the day, with sustainability, the Indigenous voice to parliament and business as a force for good all to take centre stage, alongside economy, AI and the future of marketing.