Staying Agile in a Stagnant Market with a Challenger Mindset

In the first quarter of 2026, modern retail channels recorded sales growth of just 1.7%, even as budget-friendly brands led the charge.

But what does this mean for your brand and, more importantly, your shoppers?

Slower market growth and rising price sensitivity are forcing brands to rethink how they connect with their consumers, leaving many to wonder how they can remain competitive.

In this article, I examine why staying agile in a stagnant market is key and how brands can do so without compromising product quality.

The Stagnant Market Landscape

South Africa's retail and FMCG markets are currently growing slowly, reflecting broader economic pressures. Alongside inflation and rising living costs, consumers are becoming more price-sensitive.

With stagnant markets and intensifying competition on the shelf, brands also face several challenges. This means retailers must remain visible, relevant, and adaptable if they want to continue winning the customer.

The Difference of a Challenger Mindset

A relentless focus on the customer defines a challenger mindset. Brands that adopt this focus are proactive, identifying opportunities and responding with speed and creativity.

For example, a small challenger brand in the FMCG sector may outperform a legacy product by quickly launching targeted promotions and leveraging real-time consumer insights to capture shifting demand.

They make rapid decisions, are flexible in their operations, rely on data-driven strategy, and aren't afraid to get creative when solving problems.

In our teams at Meridian, we apply the challenger mindset to help our brands anticipate and respond to customer behaviour. By pulling from our market insights and agile execution, we help brands stay relevant and competitive, even in stagnant markets.

With this approach, clients can act decisively to turn challenges into growth opportunities.

How Brands Can Stay Agile

Leverage consumer insights

Agile brands continuously monitor consumer behaviour using real-time data. Understanding shifts in preferences, spending patterns, and channel use allows brands to anticipate trends before they impact performance.

Operational flexibility

Quickly adjusting supply chains, promotions, and merchandising is essential in a slow-growing market.

When brands understand shifts in preferences and spending habits, they can respond better to sudden changes in demand.

Experiment and innovate

Testing new campaigns and channels allows brands to uncover growth potential without committing significant resources upfront.

Experimentation also opens up learning opportunities and positions brands to move faster than competitors.

Collaborate with partners

Strong relationships with suppliers, retailers, and distributors enable quicker execution and more coordinated strategies. These partnerships ensure that products are available and positioned where your customers shop.

Lessons for Leaders

Agility is quickly becoming a leadership essential. For FMCG leaders, adopting the challenger mindset is the best way to ensure their teams respond quickly and remain competitive.

When you model agility at the top, you are signalling its importance to the rest of your teams.

This results in businesses that can anticipate shifts, maintain relevance with customers, and identify growth opportunities even when the market slows.

Build a Brand That Thrives with Meridian

When markets are growing slowly, the brands that succeed are the ones that remain agile.

Meridian partners with brands to help them adopt this approach across strategy and execution. From consumer insights and operational flexibility to innovative campaigns, we pride ourselves on building brands that thrive.

Experience the Meridian difference for yourself. Reach out to us today to learn more about what we can do for you.