We’ve
all heard the line…the consumer is in control now…consumers are
more empowered and they are calling the shots. This remains true, but in the
downturn, where there is so much uncertainty, some of this control has
been taken out of their hands, especially as regards employment and
finance. Consequently, they are channelling their energy into specific
areas where they do have a greater degree of control. Here are some
observations where they are asserting control:
- Reigning in expenditure: It goes without saying that this is a top priority. Consumers are flexing their muscle to find bargains and brands that offer real value. Many are exploiting the army of tools online to help them make better choices, compare prices, and seek cheaper options. New start-up, Hunch.com goes one step further by aiming to help consumers make better decisions. Effectively, it aims to enable consumers to "get as good a decision as if he/she had interviewed a group of knowledgeable people or done hours of careful research online." We're having a play, so we will let you know our experiences.
- Enhancing the wage packet: Whilst making cost-savings is a key part of the equation, consumers are also looking at ways to make extra money. TRENDWATCHING.com's latest briefing looking at SELLSUMERS embodies this trend. Reflecting a broader entrepreneurial mindset, there are a host of examples in this briefing highlighting where consumers can increase their weekly budget from sub-letting physical spaces, energy and turning hobbies into a product or service. One of our observations is consumers sub-letting cars in urban cities. In our local neighbourhood, where most people commute by train, sharing cars is not only cost-effective but greener. It takes the concept of Streetcar a step further.
- Slowing down in an era of change: Travel publisher Alastair Sawday observes a more conscious decision-making process. This applies to looking for cheaper options, as well as removing excess. He notes that whilst consumers are travelling less, there is a need to travel better. In terms of food, eating less, but eating better. And in an age where excessive consumerism is being frowned upon, to consume less and recycle.
In February, The National Trust announced it would be creating over 1,000 allotments from its land, as more consumers look for a cost-effective, and also a greener solution to obtaining organic and locally-produced vegetables. London is also pushing the 'slow down' message as part of its Slow Down London campaign. It offers consumers a week of free entertainment to help them relax and be calmer in an era of so much change. The campaign runs from April 24th to 4th May 2009.
- Transparency & social responsibility: Although premium products, such as organics and green options may be too expensive for some right now, there is still expectancy over transparency and honesty. The requirement to know the story behind how products are made and companies operate remains important, no matter what pricing is attached to the brand. Major UK retailer, Sainsbury's Basic private label range has pushed the message that 'low price, does not mean low quality,' explaining on pack how they manage to keep their price lower. Together with promotional campaigns, this approach has been used to boost sales of the range by 60%.
