Rising Trends Of The Post Recession Consumer

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This presentation is a summary of the keynote speech delivered at "Consumer Day 2010" at Leuven University, Belgium in March 2010. …

This presentation is a summary of the keynote speech delivered at "Consumer Day 2010" at Leuven University, Belgium in March 2010.
It provides a framework for spotting and responding to consumer trends in post-recession Europe and is aimed at senior marketers and policymakers.

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  • 1. Rising Trends of the Post-Recession Consumer March 2010
  • 2. Consider how three consumer themes combine into one Organisations should consider three core perspectives for their understanding of consumers: –  GENERATION - how to group consumers –  ATTITUDE – how to interpret consumers –  TECHNOLOGY– how to enable consumers ©
  • 3. Spotting trends - the rule of ‘Individuals and Crowds’ Zoom in too close and everything becomes individual, so take two perspectives - close-up and zoom-out. ©
  • 4. The ‘Social DNA’ of Generations Fifty years ago, an entire generation of 20-30 yr olds across Europe struggled to find jobs and affordable accommodation. Now in their 70s and 80yrs, this generation has remained cautious in its spending and investment behaviour throughout their lives. Today, a new generation is experiencing the same struggle for financial freedom throughout Europe. How should organisations respond ? Time Magazine 2009 ©
  • 5. Generations move together and carry their past with them “To know where people are today, focus on their generation, not their age.” ©
  • 6. Where the consumer mindset goes, behaviour follows The Indulgence Era The Recession The Consequences Consumer Consumer Consumer (1985 – 2006) (2007 – 2012) (2013 - ??) Ambition Trading Up Economising Responsibility Sensibility Exuberance Anxiety Vigilance Mindset Bullish Sober Resourceful Orientation Self-expression Self-preservation Networks Adapted from “A Darwinian Gale” –Yankelovitch 2010 The ‘boom and bust’ economy shocked the European consumer from an indulgence mindset to one of ‘hard times’. In post-recession, consumers will seek a middle ground. They will try to learn from the past, rather than hide from it. ©
  • 7. Consequence 1: Responsible The shift from “worthy cause” to “worthy choice” Indulgence Era Consumer Recession Consumer Consequences Consumer Ambition Trading Up Economising Responsibility ©
  • 8. Consequence 1: Responsible Integrating responsibility into the value proposition Indulgence Era Consumer Recession Consumer Consequences Consumer Ambition Trading Up Economising Responsibility “Creating a Better Everyday Life For As Many People As Possible” ©
  • 9. Consequence 1: Responsible Making responsible consumption easy-to-find and simple-to-buy Indulgence Era Consumer Recession Consumer Consequences Consumer Ambition Trading Up Economising Responsibility ©
  • 10. Consequence 2: Vigilance Older generations rely on ‘experts’, to help ‘guard against’ as well as recommend Indulgence Era Consumer Recession Consumer Consequences Consumer Sensibility Exuberance Anxiety Vigilance Baby Boomers (1943 – 1960) ©
  • 11. Consequence 2: Vigilance Younger generations trust the ‘wisdom of crowds’ – preferably their own Indulgence Era Consumer Recession Consumer Consequences Consumer Sensibility Exuberance Anxiety Vigilance Gen Y / Milennials (1982 – 2003) ©
  • 12. Consequence 2: Vigilance Reaching new generations requires flex in brand and engagement channels Indulgence Era Consumer Recession Consumer Consequences Consumer Sensibility Exuberance Anxiety Vigilance Baby Boomer Engagement Gen Y Engagement via Avon’s Mark sub-brand ©
  • 13. Consequence 3: Resourceful Older generations marvel at technology, and seek freedom and efficiency Indulgence Era Consumer Recession Consumer Consequences Consumer Mindset Bullish Sober Resourceful Baby Boomer + Gen X - Resourceful ©
  • 14. Consequence 3: Resourceful – Enjoy Being Smart Indulgence Era Consumer Recession Consumer Consequences Consumer Mindset Bullish Sober Resourceful Brands are already using generations in their advertising to convey this theme (VW) http://www.youtube.com/watch?v=OVN2tzxXsTk ©
  • 15. Consequence 3: Resourceful Generation Y expect to BE part of the product – both uploading and downloading Indulgence Era Consumer Recession Consumer Consequences Consumer Mindset Bullish Sober Resourceful Milennials / Gen Y - Resourceful ©
  • 16. Consequence 3: Resourceful Older generations expect to pay, but younger ones blend ‘free and premium’ Indulgence Era Consumer Recession Consumer Consequences Consumer Mindset Bullish Sober Resourceful ©
  • 17. Consequence 3: Resourceful Consumers will demand joint decisions, and expect technology to visualise it Indulgence Era Consumer Recession Consumer Consequences Consumer Mindset Bullish Sober Resourceful Doctor - Patient Teacher - Parent Builder - Client ©
  • 18. Consequence 4: Networks Consumer orientation will shift from ‘me’ to ‘us’, to ‘my crowd’ Indulgence Era Consumer Recession Consumer Consequences Consumer Orientation Self-expression Self-preservation Networks ©
  • 19. Consequence 4: Networks Consumer networks will make their own rules for product price and distribution Indulgence Era Consumer Recession Consumer Consequences Consumer Orientation Self-expression Self-preservation Networks •  Wahanda offers heavily discounted spa treatments, but only on proviso that a minimum number of people apply. This is called a ‘mobdeal’, and encourages viral selling by people emailing the deal to their friends •  Bookcrossing is a community where people buy a book and then leave it in a public place, advertising its location through the network. The world becomes a library. It is a fun and free way to encourage reading. ©
  • 20. Consequence 4: Networks Consumers are starting to include barter/swap into mainstream consumption Indulgence Era Consumer Recession Consumer Consequences Consumer Orientation Self-expression Self-preservation Networks Sin Dinero (Spain) has graduated from traditional monthly markets attracting older consumer in small towns to trendier versions in Barcelona and Madrid, publicized by enthusiastic on-line networks. ©
  • 21. Consequence 4: Networks The ‘Mobile Phone’ will die out with today’s oldest generation (80-90 yrs) Indulgence Era Consumer Recession Consumer Consequences Consumer Orientation Self-expression Self-preservation Networks •  80-90 yr olds will ignore it •  70 yr olds will be taught it (by their children or grandchildren) •  40-60 yr olds will marvel at it •  Under 40 yr olds will take it all for granted ©
  • 22. Case Study of Post-Recession Consumer: Car Sharing Responsible + Vigilant + Resourceful + Network Indulgence Era Consumer Recession Consumer Consequences Consumer Orientation Self-expression Self-preservation Networks •  Responsible – environmentally friendly + less traffic •  Vigilant – a trusted provider, all drivers pre-approved and cars well-serviced •  Resourceful – fun convenient vehicles at low-cost, flexible pricing •  Networked – entire process of ‘book-use-return’ can be conducted via mobile device ©
  • 23. Use this framework to embrace consumer trends, not resist them ! Challenge your organisation to think and combine these three perspectives: –  GENERATION - how to group consumers –  ATTITUDE – how to interpret consumers –  TECHNOLOGY– how to enable consumers ©
  • 24. For help, advice and further information……. Rick Harris, Managing Director Customer Faithful rick@customerfaithful.com www.customerfaithful.com ©