When the going gets tough, the tough go shopping!
Posted on 09. Oct, 2009 by admin in Avusa Media News
Despite the recession and rising inflation, we can’t stop shopping because all of us have to buy food and fuel, replace the dead toaster, laddered stockings and umpteen consumables that make life bearable. Yes, we wax lyrical about growing our own vegetables, sewing the family’s clothes and learning how to fix that leaking pipe ourselves but the truth is – it’s all talk. The middle class are creatures of habit. While big luxuries may be out and we’re eating at home most nights, modern urban living is characterized by consuming ready-to eat/wear/use products and services. It’s a fact of life and it’s never going to change.
What has changed in this recession is HOW we buy. Those changes have a lot to do with our bank balances, personal ideologies, aspirations and gender. According to Performics’ “2009 Buyer Economic Trend Study”, women are far more pessimistic about the recession and as key purchasers in most households, their approach to spending money will impact on how the world recovers from this recession.
Women are buying the necessities, squirreling away cash for unexpected rainy day expenses, scrutinising the shelves for bargains and being adventurous with brands. No-name brands are in and well-known household brands are fighting to retain market share with aggressive ATL marketing demonstrating valued added benefits. While we may not be splurging on huge luxuries, products like lipstick are a great pick-me-up and far more affordable than a pair of Jimmy Choo’s.
Kellogg’s is an old master at understanding the rules of marketing within a recession and is currently flogging the “whole grains” health angle, hankering to the health concerns that all women have for their families. In the 1930s, Kellogg’s maintained its advertising during the Great Depression while Post (Post WHO?) did not! Hyundai gave new car buyers the opportunity to return their cars without incurring a penalty if they lost their jobs and GMSA followed suit by offering to pay 9 months of car instalments if one got retrenched! For a frightened and despondent consumer, these showing we care value add on, make all the difference.
Unlike the UK, USA and Canada, South African retailers do not seem to be taking advantage of coupons and while washing powder manufacturers like Unilever do in-store coupon promotions, it really is an unexploited recession busting tool. Consumers have become distrustful of big claims with research proving they are more likely to switch allegiance if offered a taste, a coupon – an incentive to change.
All this gloom and doom is depressing and so we continue to need to laugh, have a little fun and relax. Local travel agencies like Flight Centre, Sure Travel and online booking sites are on top of this need, offering value-added, all inclusive vacation packages. By their account, business is good.
Stressful economic downturns often result in permanent retail behavioural change especially among the older age groups. The trend towards conservative spending will be with us for a long time and that is going to be the key challenge for the market and marketers.