Trends In The Age Of Austerity
January 15, 2009 by ceo4aday
The current economic recession, has awakened a desire for many consumers to embrace a back to basics lifestyle, as our political leaders continue to prepare the nation for the Age of Austerity, by hypeing dismal economic news and lowering recovery expectations.
As corporations around the globe, wrestle with the implications of a deepening recession and implement their own back to basics plans, consumers are altering their behavior by spending less, seeking greater value and saving more.
Who will the winners be and what trends can we expect in this new consumer environment ?
Banks will see savings grow as a reluctant investor class that has lost faith in the stock market returns to a least risk portfolio. The very institutions that were principal catalysts in the financial crisis that contributed heavily to the recession, will benefit, as billions flow into low cost savings accounts.
Savings clubs as opposed to investing clubs will become the new rage as people compare their spendthriftness and brag about their latest value purchase from WalMart or Costco.
Family nights will become popular. With less money to spend and more meals eaten at home, parents will incorporate more family activities into their week. Social networking will continue to expand to a point where entire families present themselves to the world on new family oriented sights and spend their evenings surfing without ever getting wet.
White table cloths, will give way to more buffets and value meals, while comfort foods ( beef stroganoff, pot roast, grilled cheese sandwiches ) will rule the kitchen, providing big wins for marketers like Campbell’s, Con Agra and Kraft as soups, canned foods and Velveeta find new fans. Kids may even become familiar with Betty Crocker as they learn their way around the kitchen.
In retailing, WalMart , will continue to benefit from a value consciousness that will permeate consumer decisions over the near term as consumers delay major purchases. Retailers will also look to increasing their bond with consumers by increased promotion of their own signature brands.
It remains to be seen, whether or not consumers have the discipline to fend off creative marketers over the longer term and ultimately, as an economic stimulus winds its’ way through the economy and consumer confidence normalizes, if they will return to the carefree, spend easy days of the recent past.
Trends In The Age Of Austerity
January 15, 2009 by ceo4aday
The current economic recession, has awakened a desire for many consumers to embrace a back to basics lifestyle, as our political leaders continue to prepare the nation for the Age of Austerity, by hypeing dismal economic news and lowering recovery expectations.
As corporations around the globe, wrestle with the implications of a deepening recession and implement their own back to basics plans, consumers are altering their behavior by spending less, seeking greater value and saving more.
Who will the winners be and what trends can we expect in this new consumer environment ?
Banks will see savings grow as a reluctant investor class that has lost faith in the stock market returns to a least risk portfolio. The very institutions that were principal catalysts in the financial crisis that contributed heavily to the recession, will benefit, as billions flow into low cost savings accounts.
Savings clubs as opposed to investing clubs will become the new rage as people compare their spendthriftness and brag about their latest value purchase from WalMart or Costco.
Family nights will become popular. With less money to spend and more meals eaten at home, parents will incorporate more family activities into their week. Social networking will continue to expand to a point where entire families present themselves to the world on new family oriented sights and spend their evenings surfing without ever getting wet.
White table cloths, will give way to more buffets and value meals, while comfort foods ( beef stroganoff, pot roast, grilled cheese sandwiches ) will rule the kitchen, providing big wins for marketers like Campbell’s, Con Agra and Kraft as soups, canned foods and Velveeta find new fans. Kids may even become familiar with Betty Crocker as they learn their way around the kitchen.
In retailing, WalMart , will continue to benefit from a value consciousness that will permeate consumer decisions over the near term as consumers delay major purchases. Retailers will also look to increasing their bond with consumers by increased promotion of their own signature brands.
It remains to be seen, whether or not consumers have the discipline to fend off creative marketers over the longer term and ultimately, as an economic stimulus winds its’ way through the economy and consumer confidence normalizes, if they will return to the carefree, spend easy days of the recent past.
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Posted in economy | Tagged Age of Austerity, business, commentary, investing, lifestyle, marketing, recession, retailers | Leave a Comment
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