Middle Class Crisis

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Middle Class Crisis

  1. 1. Middle Class Crisis ‘Squeezing’ tensions have long existed in middle class households but these have always been relevant to the climate. Where tensions existed they have been accompanied with continual strides towards improvement. Now this ‘squeezing’ has turned to ‘strangling’ and middle class households are beginning to witness a crisis.
  2. 2. Middle Class CrisisText From To Working Working hard Comfortable towards goals hard to stay afloat
  3. 3. Middle Class CrisisFood Poverty Income drop Income of household with children fell five times more than200,000 children live below the poverty line childless households between 2009-2010. While the income of the poorest household falls by 18%(Source: Irish Independent 2012) (Source: Irish Times 2012/ Journal 2012)Consumer Spending Back to school boost?Consumer spending has reached it lowest The back to school boost often enjoyed by retailers did not materialise this quartersince 2005 (Source: Checkout 2012) (Source: Checkout 2012)
  4. 4. Back-to-school pressures become insurmountable 80% of parents feel back to school costs are a burden A poll by Bernardo’s More than 115,000The department of found that parents families representingSocial Protection were paying €355 for a over 200,000 childrenreceived almost a child in senior infants have been receiving1,000 back-to-school and €770 for children the paymentsallowance requests going into first year in automatically secondary school Source: MCCP Trendstream™ Irish Times 2012
  5. 5. 238% increase in jobless headsof householdsHouseholds headed by theunemployed rose from 15,000in 2006 to 50,792 in 2011An increase of 238%Half of those households, noone is employed Source: MCCPTrendstream™/CSO 2012
  6. 6. Middle Class CrisisHomes and household charges are a major source of stress One in three people are concerned about losing their homes, whilst the amount of people worrying about homelessness has doubled since 2012* 105,000 household 17,993 have While 6,400 are non-payment letters registered for a awaiting resolution of were distributed** waiver queries The average annual cost of owning and maintaining a home in Ireland , based on todays house prices, is in the region of €15,400, which equates to 43% of the average current Irish annual wage which stands at €35,765*** Source: MCCPTrendstream™/*Journal 2012/**Department of the Environment / ***AA Ireland 2012
  7. 7. Middle Class CrisisStress is somewhat relieved by back to education The three main groups signing up for evening classes: • Those who are still in the workforce who are seeking to upgrade their skills • People who are out of the workforce but want to return to work • People who are seeking a social outletThe majority of those taking diploma courses arefemale aged 35-44The majority undertaking degrees or PGC’s tend tobe younger with 64% under 34, with it being splitevenly between males and femalesAn estimated 300,000 (that’s one in ten of the Irishadult population participate in education everyyear) Source: MCCPTrendstream™/AONTAS 2012
  8. 8. The solution is in ‘Micro Luxuries’
  9. 9. Micro LuxuriesChristmas Release Online LuxuriesIrish consumers used 70,000 tonnes of packaging over theChristmas period, an increase of 25% from last year, including 6 2.6 million Irish people spend €116 a month tomillion roles of wrapping paper, 5 million boxes of chocolates secure value for money purchases (Source: Digitaland 20 million soft drink cans (Source: Repak 2012) Hub Development Agency 2012)Retail Therapy Tech December retail sales were up in December 2012 for 71% of Irish consumers were predicted to have the first time in 5 years (Source: Retail Excellence smartphones by the end of 2012 (Source: Tony Ireland 2012) Keohane CEO Tesco 2012)
  10. 10. Micro Luxuries So What?Market in a way so that the consumer feelsno guilt over the purchase but still feels itis an indulgencePrice is important but the premium natureof the product will still influenceconsumers’ decisions in this area. Brandsmust focus on getting the value equationrightGive consumers an affordable way toexperience your brandA little and often is more relative in thenew normal
  11. 11. Micro LuxuriesWe Expect… Mini sized luxuries have been popular for the last few years but it We still find ways to enjoy ourselves seems like marketers have caught up and so while we continue to spend with consumers and are giving more more than average at Christmas ‘fun’ sized options than before. The than our European counterparts, anticipation of the event is half the we’ve planned every element and fun and 2013 is a year that we will are keeping an eye on the scale of be planning in advance so as to our activities guarantee that our schedule is peppered with positive landmarks
  12. 12. For more information pleasecontact claire@mccp.ie orenquiries@mccp.ie

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