The nation, and in fact most of the world, has been through a tough few years economically speaking. In the USA, many households have no more income than they did 8 years ago, and austerity has become a way of life among many people. Even with the economy recover and growth mode, the effects of the recession on the behavior and spending patterns of the people it affected is likely to be long lasting. This presents a challenge for businesses and marketers, as people are less likely to want to spend now, even if they are starting to regain their disposable income.
‘In a recent survey, a huge 80% of people said that after the experiencing a recession, they will continue to be more careful with their money than they were before the economic troubles. Being frugal has become the norm for a lot of people, which is why budget brands have been seeing so much success. This presents a challenge for businesses because people are going to be less willing to part with their money for at least the medium-term future, and that means that whatever you are offering will need to appear even more enticing and valuable for it to sell.’ Sonali Nandwani of Lux Life began.
‘When it comes to branding, it will become more important for a brand to represent excellent value for money. In the boom times, brands could do well by appearing to be exclusive or luxurious, but to the current consumer mindset, this may appear as needlessly expensive. High-end brands will always exist, but the emphasis we expect to see from them will be more on quality than general ‘flashiness’.’ she continued.
‘When it comes to business services, we can expect business owners to be just as cautious as regular consumers about where they use their budgets, and so business service providers will need to show that they add value in real, tangible terms to succeed.’
‘It will be an interesting time, but one that will present as many opportunities as it does challenges. People will still need to buy things, and so by choosing a brand image that fits with the time’s businesses can still prosper.’ Lux Life’s Sonali Nandwani concluded.