The New Era of Thrift: Changing Spending Habits in the Face of Recession

Date: August 22, 2009
Price:
US$ 1,950.00
Publisher: Euromonitor International Ltd
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: N4941025799EN
Leaflet:

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No-one is sure just how deep the current recession will be, or how long it will last, but the IMF recently downgraded its 2010 global projection for annual real GDP growth from 3.0% to 1.9%, with developing economies leading recovery prospects.

Rising unemployment is likely to be one of the main causes behind slowing consumer spending, at least during the first half of the forecast period. Unemployment is expected to peak in 2010 and then fall, although the rate of recovery will vary from market to market.

The psychological shock of the crisis is likely to have a longer lasting impact than the economic one. While consumers may carry on with their lives in much the same way as before, the shift in expectations will be dramatic, and few will be keen to increase their borrowing.

The next two years will see consumers continue to scale down and make more considered purchases, while splurging on treats every now and again to beat the recession blues.

Eventually, consumer markets will begin to recover, but the backlash against rampant consumerism, combined with growing environmental concern, may ensure that a more frugal way of life is here to stay.

As a result of this shift in attitudes, companies will need to alter their product development and marketing strategies to appeal to a new breed of thrifty consumers, which will mean creating an impression of saving money by offering a good ratio of quality to value.

The desire to cut down on waste will stay rooted over the forecast period, especially as green issues will be a core focus for governments, companies and NGOs, which will have a knock-on effect on all consumers.

As consumers continue aggressively to hunt out bargains, discounters and on-line retailers will be the main beneficiaries, while luxury retailers and department stores will be the largest casualties.

Families will in the future continue to become more centred on the house and home, as “uber-cocooning” takes a hold. This will spell bad news for the consumer foodservice and tourism industries in the short term, but will provide opportunities in other sectors.

Companies may need to streamline or adapt their brand portfolios to concentrate on those products which are most appealing to cash-strapped consumers, or those which convey an image of luxury and security, but do not carry a high price tag.

At the same time, marketing budgets should not be sacrificed in a recession. Statistics show that companies that increase their marketing – if only by a little – during times of crisis recover up to three times faster than their competitors.

Euromonitor International's The New Era of Thrift: Changing Spending Habits in the Face of Recession Strategy Briefings is a series of reports that alert you to global trends predicted to influence consumer markets. They offer insight to changing market conditions and the opportunities and challenges companies need to consider to maintain a competitive advantage.
EXECUTIVE SUMMARY

Drivers
Demographic Trends
Outlook

INTRODUCTION

Definitions
Profile of Gen X

DRIVERS

Gen X Moves Into Family Stage
Single Living
Education and Work
Income and Finance
Shopping Habits
Attitudes Towards Technology and the Internet
The Gen X Traveller
Attitudes Towards Health
Attitudes Towards Beauty
At-home Eating Habits
Eating Out
Drinking Habits
Home Entertainment

DEMOGRAPHICS

Country Trends

MARKETING TO GEN XERS

The Challenge To Marketers
Marketing To Families
The Search for Value
Nostalgia Marketing

KEY MARKET TRENDS

China
France
Germany
Japan
Spain
UK
US

FUTURE TRENDS

Trends To Watch
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