Australia’s consumers and the marketers tasked with engaging them have faced an unforgiving financial landscape over the past four years, shaped by persistent inflation, rising interest rates, stagnating wages, and eroding trust.

In these depressed market conditions, retreat isn’t a winning strategy. Brands that lead with genuine empathy, deliver real value and align their messaging with the emotional and financial realities of their customers won’t just survive, they’ll lay the groundwork for future growth.

To thrive, marketing teams must shift from volume and noise to precision, purpose-driven messaging, and rapid responsiveness.

Key Takeaways.

1.    Empathy Is Non-Negotiable.

2.    Trust Outlasts Transactions.

3.    Strategic Presence Matters.

4.    Agility & Value Over Price.

5.    Long-Term Brand Resilience.

Table of Contents.

1.    Can Brands Still Thrive When Consumers Are Struggling?

2.    Navigating a Market Under Pressure.

3.    Inside the Consumer Mind: Fear, Fatigue, & Frugality.

4.    Why Connection Is Critical Right Now.

o    4.1 The Cost of Silence.

o    4.2 Building Trust That Compounds.

o    4.3 Poor Behaviors During the Toughest Times.

o    4.4 Vendors Flaunting Their Profits.

5.    Strategic Pillars for Marketing in Tough Times.

o    5.1 Empathy-Driven Messaging.

o    5.2 Value Over Price Competition.

o    5.3 Smarter Channel Selection & Budget Allocation.

o    5.4 Agile Campaign Development.

o    5.5 Product Innovation & Adaptation.

6.    Lessons from Australian Brands.

o    6.1 Small Business Adaptation Successes.

o    6.2 Regional vs. Metro Market Dynamics.

o    6.3 The Rise of Localism & Ethical Branding.

7.    Daily Marketing Practices.

o    7.1 Hyper-Focus on ROI & Measurement.

o    7.2 Agile Channel Allocation.

o    7.3 Balancing Acquisition & Retention.

8.    Building Resilience for the Future.

o    8.1 Investing in Brand Equity.

o    8.2 Preparing for the Post-Crisis Rebound.

o    8.3 Creating a Marketing Survival Playbook.

9.    Conclusion: Opportunity in Adversity.

1.0 Can Brands Still Thrive When Consumers Are Struggling?

Australia’s economic landscape over the past four years has been defined by turbulence. Soaring inflation, aggressive interest rate hikes and a relentless rise in the cost of living have left everyday Australians navigating unprecedented financial strain.

Thousands of businesses have collapsed, and for many households, survival now means stretching every dollar with meticulous care.

Compounding this pressure is a surge in scammer activity, deepening consumer mistrust and amplifying economic anxiety.

Add to that inflated housing prices, a widening generational wealth divide, and the quiet sting of tax bracket creep and what emerges is a consumer psyche baked in caution, fatigue, and heightened frugality.

It’s not exactly fertile ground for marketing products and services beyond basic survival. But contrary to instinct, retreating isn’t the answer.

The real opportunity lies in understanding today’s emotional economy: how people feel when they spend, what they value, and where they place their trust.

Marketing teams and the brands they represent, won’t thrive in this climate by simply tightening budgets or raising their voices.

Instead, they’ll roll up their sleeves, step out of their offices, see firsthand what’s really going on, and above all, listen to what people are saying.

They’ll show empathy not just as a value, but as a strategy. Precision will replace volume, and clarity will replace spin.

Two reflections come to mind:

“In the middle of difficulty lies opportunity.” — Albert Einstein

“The object of all work is production or accomplishment… and to either of these ends there must be forethought, system, planning, intelligence, and honest purpose.” — Thomas Edison

Together, they remind us that adversity calls not for noise, but for meaningful action.  Not just effort, but intentional, purpose-driven presence.

This is not a moment to go silent. It’s a moment to illuminate your values and to bring forward your brand’s clearest, most human voice.

2.0 Navigating A Market Under Pressure.

As highlighted above, Australia’s economic indicators paint a sobering picture of consumer constraint.

The Consumer Price Index remains stubbornly high, while wage growth continues to lag behind inflation.

Since 2021, the country endured 13 consecutive interest rate hikes—a financial weight few will forget anytime soon. Although 2025 brought two modest cuts—

1.    February 2025: 0.25%

2.    May 2025: 0.25% again

These actions brought down the cash rate down to 3.85% and this relief has been incremental at best.

The financial pressure is still there and continues to squeeze mortgage holders and contract disposable income nationwide.

The result? A reshaped consumer mindset. While Australia may be inching toward economic recovery, persistently high electricity prices and cost-of-living burdens suggest few households are breathing a massive sigh of relief just yet.

Many Australians will still be exhibiting heightened price sensitivity and I doubt they will be recalibrating their weekly shopping limits any time soon, so the strategic hunt for the best possible value continues.

I imagine discretionary spending will remain tightened for months to come and the focus will remain on essentials and experiences that offer genuine, lasting worth.

3.0 Inside The Consumer Mind: Fear, Fatigue and Frugality.

Beneath Australia’s troubling economic metrics lies a deeper psychological shift, one shaped not just by numbers, but by lived experience.

After four years of relentless uncertainty and worry, many Australians are grappling with ‘uncertainty fatigue’, where ongoing volatility erodes confidence, heightens risk aversion and slows down decision-making.

This mindset has likely to have become a national habit. Before any purchase, there will be people out there saying, “Let’s sleep on it and see how we feel tomorrow.” That instinct to pause, reflect and reassess the next morning now probably guides a huge percentage of buying decisions.

I believe that self-preservation is still the Aussie shopper default and that plenty of purchases will be on hold until personal circumstances meet a certain threshold.  Emotional due diligence has replaced impulse: every potential buy demands thorough research.

Consumers aren’t merely hunting for bargain-priced products, they’re seeking economic reassurance. They’re looking for signs of stability and durability and they need those assurances delivered by brands they can trust.

Authenticity and honest purpose matter more than ever, helping Australians withstand and overcome ongoing financial uncertainty.

While the pandemic accelerated these trends, the cumulative strain of the past four years has truly “broken the back” of consumer confidence.

Australians now gravitate toward brands that speak honestly, act responsibly, and mirror everyday realities rather than glossy marketing hype.

For marketers or those in a role that promotes a particular brand, the takeaway is clear: your campaigns, what you say and write must, ‘read the room’.

Every radio or TV advertisement, every ad in print or online papers or the posts made on various social media platforms needs to resonate with people’s current mindset, demonstrating empathy, relevance and genuine understanding at the very moment they engage.

4.0 Why Connection Is Critical Right Now.

4.1 The Cost Of Silence.

History offers compelling evidence of the danger in pulling back during tough times. During the Great Depression, Kellogg’s continued advertising while its main competitor, Post (now Post Consumer Brands), scaled back dramatically.

By the time the downturn ended, Kellogg’s had not only retained its market share, it had actually expanded it, forging dominance that lasted for decades.

In today’s Australian financial climate, I’m of the belief that this the lesson holds firm. Reducing marketing spend risks more than short-term sales, it risks losing mindshare, emotional relevance and position in the post-recovery landscape.

Australian consumers remember which brands showed up when things got tough and were prepared to bend and twist as required to keep the populace happy.

4.2 Building Trust That Compounds.

Marketing during a depressed market isn’t simply about sustained moving of product. It’s about planting seeds of trust and emotional equity, intangibles that compound over time.

Brands that speak the truth with clarity, offer genuine value, and maintain meaningful communication during adversity become more than commercial entities. They become touchstones.

When the economy recovers, consumers wont forget and will tend to return not to the loudest voice, but to the most dependable and trust worthy presence. The one that stayed visible, authentic, grounded in truth and realistic.

4.3 Poor Behaviours During The Toughest Of Times.

Let’s imagine the product under scrutiny is a fictional staple: a Packet of Truth. Before the financial downturn, the typical pack size was 200g and sold for $4.00.

As economic pressures mount, some vendors engage in questionable tactics.

Here are a few practices that erode consumer trust:

1.    Shrinkflation: manifests in two forms: displayed and concealed.

a.    Displayed Shrinkflation: The product visibly drops to 180g, yet the price remains unchanged at $4.00. The reduced value is declared and obvious but still quietly felt.

b.    Concealed Shrinkflation: More troubling, this occurs when the packet continues to be sold for $4, the label continues to claim 200g, but the actual weight provided is 180g. The loss is hidden, eroding transparency and trust.

2.    False Specials:  Picture this: on Monday, the Packet of Truth sells for $4.00. On Saturday, it’s suddenly “50% off” Was $7.80, Now $3.90. Unless a consumer noticed the original price earlier in the week, this inflated markdown appears legitimate. Many shoppers, primed to chase savings, won’t question the offer. It’s an illusion of generosity rooted in manipulation.

3.    Exploiting the Source: In tough markets, some vendors seek margin by driving down costs paid to suppliers, the farmers, manufacturers, or small producers.  Even as the retail price holds steady, the source provider earns less, absorbing the impact without consumer visibility. The good news is though, unless the producers are forced to sign non-disclosure agreements (NDA’s), eventually the truth does come out and consumers make these discoveries.

4.4 Vendors Flaunting Their Profits During Tough Times.

At a moment when everyday Australians are shouldering relentless cost-of-living increases, some companies choose to trumpet record profits, adding insult to injury.

Publicly Listed Companies:  Their annual reports detail sky-high margins and large salary boosts for executives that delight those in senior management and shareholders. For consumers who have borne the burden of higher prices all year, those figures feel like salt being rubbed into their already festering wounds.

Privately Held Businesses: Executives pocket multi-million-dollar bonuses and post gleeful “we’re expanding!” updates, moving into HQs twice the size of their old offices. Meanwhile, customers struggle to afford basic goods.

This dissonance between profit-boasting and consumer hardship erodes trust faster than any shrinkflation tactic.

Business success during a depressed market, when times are toughest for the average Aussie battler isn’t measured by the size of your balance sheet; it’s measured by how well you stood with your community when they needed you most. It might be worth considering that the choices you make when consumers are at their lowest could come back to haunt you.

5.0 Strategic Pillars for Marketing in Tough Times.

5.1 Empathy-Driven Messaging.

The strongest brands in a depressed market move past surface-level price promos to address real worries about financial security, family wellbeing, and an uncertain future.

·         Tell authentic stories that recognise hardship without sounding patronising.

·         Swap “lowest prices” for lines like “helping families stretch every dollar” or “quality you can rely on when it matters most.”

·         Position your brand as a partner in tough times, not just another vendor vying for budget.

5.2 Value Over Price Competition.

Race-to-the-bottom pricing rarely sticks. Instead:

·         Spotlight durability, service, long-term savings, or other benefits that justify an investment.

·         Lean on testimonials, case studies, and social proof to validate your claims.

·         Demonstrate how your offering pays for itself over time—because real value outlives a discount.

5.3 Smarter Channel Selection & Budget Allocation.

With belts tightened, you need lean, high-ROI touchpoints:

·         Prioritise email, SEO, and highly targeted social ads over broad-reach mass media.

·         Use analytics and attribution models to distinguish true business impact from vanity metrics.

·         Don’t abandon brand building—just choose platforms where you can measure and optimise every dollar.

5.4 Agile Campaign Development.

Economic volatility demands speed and flexibility:

·         Build modular campaigns that can pivot mid-flight based on real-time feedback.

·         Shorten runtimes, increase A/B tests, and be ready to reallocate budgets at a moment’s notice.

·         Bake agility into your planning: a 6-week framework beats a 6-month commitment when conditions change.

5.5 Product Innovation & Offering Adaptation.

Downturns can spark creativity, if you side-step the “cheap” trap:

·         Introduce genuinely lower-cost options or bundled packages that deliver clear value.

·         Maintain quality and brand integrity, even at reduced price points.

·         Explore services or subscription models that smooth out cash-flow pain for consumers.

6.0 Lessons from Australian Brands.

6.1 Small Business Adaptation Successes.

·         Local restaurants pivoted to meal-kit and family-package offerings.

·         Retailers rapidly rolled out click-and-collect and curbside pickup.

·         Service providers launched flexible payment plans to ease cash-flow stress. These creative pivots strengthened community ties and demonstrated empathy in action.

6.2 Regional vs. Metro Market Dynamics.

·         Regional Areas: Stronger loyalty to hometown businesses; community-focused messaging wins.

·         Metro Areas: Higher cost-of-living pressures increase price sensitivity; shoppers more inclined to compare online deals. National campaigns must flex regionally, what resonates in Brisbane’s suburbs won’t always land in rural Queensland.

6.3 The Rise of Localism & Ethical Branding.

Economic strain has accelerated a shift toward:

·         Localism: Willingness to pay modest premiums for home-grown products.

·         Ethical Consumption: Preference for brands with transparent sourcing and social purpose. Authentic, locally rooted stories now carry real competitive advantage.

7.0 Daily Marketing Practices.

7.1 Hyper-Focus on ROI & Measurement.

·         Track performance daily with attribution models and lifetime-value metrics.

·         Prioritise channels that deliver quantifiable business outcomes over broad-reach vanity metrics.

7.2 Agile Channel Allocation.

·         Shift budget dynamically toward high-ROI tactics—email, SEO, targeted social ads.

·         Use real-time analytics to reallocate spend mid-campaign, avoiding long-term lock-ins.

7.3 Balancing Acquisition & Retention.

·         Acquisition remains vital, but retention drives higher lifetime value in downturns.

·         Implement segmentation and personalised outreach to nurture existing customers first.

8.0 Building Resilience for the Future.

8.1 Investing in Brand Equity.

·         With competitor noise down, consistent, empathetic messaging builds disproportionate emotional connection.

·         Brand equity earned now compounds once the economy rebounds.

8.2 Preparing for Post-Crisis Rebound.

·         Maintain visibility through the trough; consumer loyalty will fuel growth on the upswing.

·         Resist short-term cuts to marketing that undermine long-term positioning.

8.3 Creating a Marketing Survival Playbook.

·         Document flexible budget models, crisis communication templates, and rapid-response protocols.

·         Use this playbook to act swiftly in future volatility—and to keep your brand not just surviving, but thriving.

9.0 Conclusion: Opportunity in Adversity.

Marketing through a downturn isn’t about waiting for normal to return, it’s about thriving in the here and now and laying the groundwork for what comes next.

The brands most likely to emerge stronger are those that:

·         Lead with genuine empathy.

·         Hold fast to strategic clarity.

·         Pivot with agility as conditions change.

The real question isn’t whether you can afford to market, it’s whether you can afford not to. As competitors retreat and consumers search for support, you have an unprecedented chance to:

·         Deepen trust and emotional connection.

·         Capture hard-won market share.

·         Cement your positioning for the recovery.

In a depressed market, your actions today define your tomorrow.

Will your brand be remembered as the steadfast ally that stood with its community, or the distant echo that vanished when solidarity was needed most?