It's Independence Day weekend. The sounds of "Yabba Dabba Dooo" can be heard across the country as over-worked, over-stressed employees rush to get a day off. That means a lot of folks will skip checking their e-mails and ignore some of the trades as they try and sneak in a little "family time" or grab an extra bit of relax or re-charge time. In case you missed this piece from Jim Carnegie at RBR.com on Friday, I'm re-posting because I believe it's worth the read as you continue your planning for the remainder of 2009 and early 2010:Mediabrands, the media management unit of Interpublic Group, unveiled global research that gives depth to worldwide consumer sentiment and behavior during the current economic situation. Through Mediabrands’ consumer online panels across the world, comprising of 75,000 individuals, the research and analytics teams taps into data including media usage and attitudes across all consumer touch points, demographics, motivations and category purchasing at the individual level. Mediabrands utilized their panels to identify and engage 100 consumers who are at the sharp end of the current economic situation across three countries: US, China and Australia.
Mediabrands research teams across the globe conducted in-depth, detailed, open and frank discussion forums of 90 minutes with each individual group giving every respondent the opportunity to state how the current economic crisis has impacted them and their families and what the consequences will be going forward. In each country Mediabrands teams spoke to two distinct groups of consumers: mid market family and mid market pre-family. Both consumer groups live within the major cities of their respective country.
• The mid-market 'Family': Men/Women with kids in the home (at least one child aged 5+)
• The mid-market 'Pre-family': Single and Couples no kids (up to 45 years old).
Key Themes: The research delivered insights across five key areas as follows:
1. The recession is driving significant anxiety amongst consumers
2. Consumers have moved from a ‘want based’ society to a ‘needs based’ society
3. Internet and mobile have become as essential to life as food and water
4. Word of mouth (both online and offline) are now the key sources of information for consumers
5. The impacts of this recession will be seen even once the economy improves –the recession is a permanent “Game Changer”
1. Anxiety is rife amongst consumers• Despite large differences in the economic climate a ‘fear factor’ is present in all 3 countries
• This is true for everyone regardless of whether they have suffered directly or note.
• The prevailing feeling is a lack of confidence in spending money.
2. We are now in a ‘needs based’ society.• A complete re-appraisal of spending is taking place with a focus on ‘needs’ and not ‘wants’.
• Brand loyalists are trading down buying own brand or only on promotion
• Holidays and luxury items are on hold
• New behaviors are arising such as eating more elaborate meals at home rather than eating out.
• Consumers are also taking evasive action to avoid temptation such as leaving the kids at home to reduce pester power, shopping online to find the best prices, and actively avoiding advertising messages.
3. Food, water, internet and mobile are the bare essentials• Internet and mobile now seen as a critical part of everyday life, as critical as oxygen.
• They are described as essential ‘communication technologies’
• Whereas Pay TV and landlines are expendable. Consumers see Pay TV as a non-essential which can be replaced by either online TV or simply reverting back to terrestrial channels only.
• Landlines have become further obsolete because consumers view mobile phones as a more popular and cost effective way to communicate
• Other new or cool technology, or upgrades on existing technology, is put ‘on hold’ for the moment, unless it is absolutely essential.
4. Internet and WOM are the main information sources• This is the first recession where the internet has been readily accessible
• It has become THE source of information on the recession combined with on and offline conversations with friends, family and colleagues.
• There is a shift away from the traditional information channels of television and print.
• TV being seen as delivering ‘media hype’ and online as balanced
• This is resulting in people looking at the recession from every angle in order to create a full and unbiased picture and ultimately making up their own minds rather than simply taking the views of a particular TV channel or newspaper.
5. This recession is not just “life on hold,” but a permanent game changer.
• The recession is a game changer as consumers are clearly recognizing that their previous levels of spending are not sustainable going forward.
• There is a definite shift back to a world where money demands respect.
• The general consensus is that the reduction in spend on unnecessary items will remain permanent, and while other higher tickets items will eventually return, they will be saved up for rather than simply put on the plastic.
• The mentality is now very much about saving for the future, paying off debts and establishing financial security as quickly as possible.
• Consumers also speak about the positive impact of this recession in making them realize their wasteful ways, and the key lessons they have learnt about the importance of saving for the future and living a more healthy and sustainable existence.
