Post-Recession, Will Consumers Remain Conscious?
One thing a lot of companies are wondering about now is whether or not the consumer who is being considerably more frugal today will still be that tight with purchases when the economy kicks back in. I suggest that we WILL see a re-calibration resulting in a permanently changed consumer – but perhaps not to the frugal extreme.
The consumer market for your goods or services will probably not return to the whole-hog, buy-o-rama of pre-Fall 2008. However, as Sarah Kershaw put it in the August 16th New York Times T Magazine in “Consumed With Guilt,” an article on new brain research, retailers [and, to me, brands, in general]:
“…will most likely have to rethink their strategies, marketing more functional, less extravagant products with an increased emphasis on greater purpose and back-to-basics.”
It’s not as if the former level of consumer spending was sustainable. It makes me think of a Wile E. Coyote cartoon. The madness had to see an “end,” and consumers had to basically fall off the cliff to think differently. But, there happened to be a trampoline at the base of that cliff that bounced consumers to a point about halfway up. (Visualize that with me, if you will). The new more conscious consuming home base is a lot more stable and firmer a foundation from which to make buying decisions. This seems to be all for the good.
Kit Yarrow, a professor of psychology and marketing at Golden Gate University who has researched recessionary consumers, put it this way in Kershaw’s piece:
“… it’s not going to be austere or anything –but I think we’re going to see much more consideration about how people want to spend their money.”
If your brand has not been doing the research, interacting regularly and closely with consumers, and really learning how to serve them better in this lull – you’ll lose. Consumers WILL buy products and services that are based on more in-depth and intimate relevance. Your brand should long have been doing these things, but the post-recession conscious consumer, especially, will have you (and your products) no other way.
*Note: Thanks to Theresa Pantazopoulos for helping me locate the NYT link a week later!
