[News Terms] The US Response to Sales Decline Is 'Upflation'

Creating New Uses for Unnecessary Products to Raise Prices
"Somewhat Awkward Attempt to Recover Sales" Evaluated

U.S. consumer goods companies are adopting an 'upflation' strategy by developing products with unique features, such as full-body deodorants and groin razors, to create demand and raise prices in response to declining sales.

'Upflation' generally refers to an increase in inflation. Inflation describes the economic phenomenon of rising prices, and upflation is a term used to emphasize the increase or upward trend of such inflation. It signifies a situation where price growth rates or economic burdens are rising.

The upflation strategy introduced by U.S. consumer goods companies involves creating new uses for products that consumers previously considered unnecessary, thereby raising prices.

On the 2nd (local time), Bloomberg News introduced new products launched in the U.S. by consumer goods companies such as Procter & Gamble (P&G) and Unilever, including full-body deodorants, as examples of 'upflation.'

The price of the full-body deodorant released by P&G is $14 (approximately 19,500 KRW), which is twice the price of conventional deodorants mainly used under the arms. P&G promotes this product as usable from head to toe. Gillette’s groin-specific razor is priced at $15, $5 more expensive than a typical women's razor.

While companies explain that these products were created reflecting demand, Bloomberg News reported that some view them as marketing rather than genuinely new products.

P&G stated that a survey of 4,000 people to accurately understand body odor issues revealed mentions of not only underarms but also the groin, chest, and feet. P&G explained, "After talking with customers who take extreme measures such as showering three times a day or layering 12 different products, we developed a full-body deodorant."

On the other hand, Aletta Simons, a dermatologist in Nashville, Tennessee, said, "In most cases, full-body deodorants are unnecessary, and if odor symptoms are severe, one should see a doctor." Bloomberg News evaluated this trend as somewhat awkward attempts by consumer goods companies to recover sales in the $100 billion personal hygiene market.

Bloomberg News diagnosed 'upflation' as a U.S.-specific phenomenon. Unilever, headquartered in the UK, released its full-body deodorant only in the U.S. this year.