This morning I went to Lessons From The Recession, a presentation by Katrina Michel and Liz Bielinska from Planning Express. This particular event was in association with Orchard and, though I go to lots of these things, this one was fun and very informative. Below are a few key points. Hope you find it useful too…
1. IN LOVE WITH NOSTALGIA
• People are harking back to “when it was all good and things were happier” than in the current climate
• Brands have embraced this such as M&S with their 1p Bazaar
• There has been a sales increase in nostalgic brands and products, such as Stork, Cake Mixture, Beans, Bisto and Rich Tea biscuits
• Fray Bentos pies has seen a sales increase of over 40%
THE CONTINUING TREND
• In 2010 and beyond brands that scream nostalgia will continue to thrive
2. GET IT FOR LESS OR FREE
• The current trends are M&S Dinner for 2 for £10. Morrisons launching Christmas dinner for £2.75 a head! Audi offering two free services on their cars
• People want value for money
• Latest data shows 80% of people are actively looking for bargains and 50% are using money off vouchers
• Buying things on the cheap is no longer something to be ashamed of, illustrated by Stella McCartney doing a range for Gap and Jimmy Choo creating a range for H&M
THE CONTINUING TREND
• There will be a long-term resistance to paying full price. Due to the continued discounts and offers in store because of the recession, people have changed their perception of price and what things are actually worth
3. WASTE NOT
• Waste less, spend less
• Throwing things away now fills us with guilt
• Due to our lack of money, wasting things feels bad
• The humble shopping list is now back to discourage impulse buying and some supermarkets are considering putting a ‘shopping list holder’ on the front of the trolley
• People are now eating food way past the sell by date
• People now feel they have to recycle more as they have a moral duty to do so
THE CONTINUING TREND
• Recycling is here to stay
• BOGOF’s are dead as people now see this as wasteful, but money off is here to stay
4. A PENNY SAVED IS A PENNY EARNED
• There has been a mass awakening to the fact that we all have to save
• 86% of people now hate being in debt
• We are taking saving tips from our parents as they did it so well
• Due to the extension of retirement age, people now want to control their own retirement age and the only way they will do that is to save
THE CONTINUING TREND
• People will save save save
5. MEND AND MAKE DO
• Everyone knows they have too much stuff. People are now turning to mending things rather than buying new
• Shoemakers Timpson has recorded a 40% lift in sales due to people mending their shoes rather than buying new
• People are hanging onto products for longer, so cars, beds and kitchen appliances people are getting them fixed or making do rather than replacing
THE CONTINUING TREND
• Having more stuff is becoming un-trendy
• Buying purposeful stuff and less of it is trendy
6. INFORMAL SOURCES OF INFO/OPINIONS
• People want to hear from other people and value what other people say, especially online, across all sorts of products and services
• Even down to mybuilder.com where you can rate the service the builder/handyman has provided
• PR is at the heart of this
• People are now owning brands, not necessarily the marketing department
THE CONTINUING TREND
• Marketing/PR are now directing people’s opinions of brands not shaping them. Consumers are shaping brands
7. OUT OF SIGHT OUT OF MIND
• As we all know big brands have failed this year such as Woolworths GM Motors etc
• 53% of people are less likely to be loyal to brands
• The brands that have failed have been mediocre
THE CONTINUING TREND
• Brands/Companies should always ask “ If we didn’t exist/provide a service would there be a need for us to be invented”
8. LOSS OF TRUST IN THE BANKS
• People see the banks as greedy
• Only 30% of people trust banks
• The current Natwest “HELPFUL BANKING” advert people don’t believe the sentiment
THE CONTINUING TREND
• Anyone operating in Financial Services needs to be seen as truthful
9. BECAUSE IT AINT WORTH IT
• Organic food sales are down 40% and have been denounced by ASDA
• Value lines in supermarkets have come into their own as people buy them and work out the difference between them and branded goods
• Trading down is officially cool
• Fairy Liquid is one brand that has managed not to be affected by this and is still going strong – possibly because of its claim of washing thousands of dishes – people see it as good value
THE CONTINUING TREND
• Trading down to own brand or value is only going to continue
10. HOME IS WHERE THE HEART IS
• We are all staying in more
• 35% of us are going out less
• We are even exercising at home due to Wii Fit
• Staying in is trendy as more people invest in entertaining in their home, whether that be on a new HD TV or a PS3
THE CONTINUING TREND
• We will all go out again, but not as much, as now our home is at the centre of entertaining our friends and ourselves
11. BETTER THE DEVIL YOU KNOW
• Trusted brands are going to become ever more important
• Brands that have survived the recession are simply going to get stronger, as these are the brands that have helped people through the difficult climate, whether giving more value or providing discounts – it’s all about goodwill
• And it doesn’t matter what advertising says as never before have so many people been unconvinced by advertising messages
THE CONTINUING TREND
• Goodwill & great PR; advertising will continue to falter
12. KEEP IT SIMPLE
• There is so much technology but people are becoming resistant to higher functionality of products
• Gadgets that are straight-forward and do their job have more appeal
• As consumers we are being over-loaded with technology
• 76% of people just want a mobile to make calls and text
• We haven’t got time to learn new things
THE CONTINUING TREND
• Embrace technology but keep it simple
13. SOMETHING THAT MATTERS
• Grand gestures are out the window
• People now want something that matters “it’s the thought that counts” is now in full effect
THE CONTINUING TREND
• Thoughtful simple products are the way forward
By Gary Bramwell, Deputy MD
