Unpacking Q3 Trends: Consumer Brands' Resilience in the Face of Uncertainty

With Q3 squarely behind us, Ampla's extensive data analysis reveals intriguing insights into the performance of consumer brands. In this blog post, we'll delve into the key trends that emerged, shedding light on the broader macroeconomic landscape. Amidst inflationary pressures and ongoing uncertainty, the American consumer's steadfastness and brands' strategic focus on preserving their bottom line are evident.

The image shows a graph of Q3 revenue among consumer brands. The image is titled "Ampla: State of Emerging Brands - Q3 Report"

If you’re interested in seeing how your company is tracking against the insights and benchmarks below, get started with Ampla Banking and take advantage of our free insights tool. 

Apply for Ampla Banking today!

Working Capital's Crucial Role in Driving Growth

One of the standout revelations from Ampla's data is the remarkable 80% increase in revenue for brands utilizing our platform compared to others. This impressive growth, up 36% year over year, underscores the pivotal role of working capital for consumer brands. It's a testament to the fact that those who effectively manage their resources and investments are positioned for substantial growth in today's competitive landscape.

Resilience of US Consumers and Brands

Despite the prevailing economic challenges, both US consumers and brands have demonstrated commendable resilience. Q3 revenue for brands surged by 9% quarter over quarter and an impressive 20% year over year. This data point reflects a continued confidence in the market and a willingness of consumers to engage with brands, even in the face of inflationary pressures and economic uncertainties.

Improving Gross Margins: A Positive Sign

Another encouraging trend revealed by Ampla's analysis is the improvement in gross margins across the board. Brands experienced a 2% increase in gross margins from the previous quarter and an impressive 9% growth year over year. Notably, the beauty and wellness category emerged as a frontrunner, boasting the strongest margin profiles, while food and beverage faced margin challenges.

Strategic Shift in Discounting Strategies

In response to the need to protect margins, brands have made strategic shifts in their discounting strategies. The data shows a 7% reduction in the number of orders with discounts applied quarter over quarter. Additionally, the year-over-year increase of just 1% suggests that brands are becoming more judicious in their use of discounts, focusing on shorter promotional periods to safeguard their bottom line.

Diversification of Revenue Streams

Amidst the evolving market landscape, consumer brands are actively diversifying their revenue mix. Notably, e-commerce's share of total revenue decreased from 62% in Q3 2022 to 46% in the current quarter. This shift highlights brands' adaptability and their efforts to explore new avenues for growth beyond the digital realm.

Navigating Uncertainties with Strategic Precision

Ampla's comprehensive data analysis paints a vivid picture of the resilience and adaptability of consumer brands in the face of inflationary pressures and ongoing economic uncertainties. The substantial growth in revenue, improved gross margins, and strategic discounting measures all attest to the astuteness with which brands are managing their operations.

Furthermore, the strategic diversification of revenue streams showcases a forward-thinking approach in an ever-changing market landscape. These trends collectively affirm the ability of consumer brands not only to weather economic storms but also to thrive and innovate.

As we look ahead, it's clear that the brands poised for success are those that continue to prioritize working capital, adapt to changing consumer behaviors, and remain agile in their strategies. By leveraging these insights, brands can position themselves not only to survive in the current economic climate but to emerge stronger and more resilient in the quarters to come.

If you’re interested in seeing how your company stacks up against these benchmarks and more, get started with Ampla Banking and take advantage of our free insights tool. 

Sign up for Ampla Banking today.

Mike Grillo

Michael (Mike) Grillo is an advertising and marketing industry veteran who currently serves as VP of Marketing at Ampla. Prior to Ampla, Mike was the Head of Consumer Products and Retail at Calm, the #1 App for Meditation and Sleep and co-founder and CEO of Gravity Products, home to the world-famous Gravity Blanket. Under Mike's leadership, Gravity was named one of Time Magazine's Best Inventions (2018) and Entrepreneur Magazine's 100 Brilliant Companies. The brand was ultimately acquired by WIN Brands Group in 2021. Mike is an angel investor and advisor to several NYC-based start-ups, including Ampla Technologies.

Let's Grow Together

Ready to kick off your journey? 🚀

Image showing Ampla’s integrations with Quickbooks, pinterest, shopify, tiktok, and facebook to name a few. As well as conversion rates and funded status
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.