If you thought reports on the shifting attitudes in the US
about marriage and homeownership startling; then you too will be surprised that
US consumers are changing their attitudes about brands.
The
research
The Pew Research center recently reported that marriage rates among adults 18 or
over has fallen to 51%, with the median age at first marriage higher
than ever for brides (26.5 years) and grooms (28.7),
Only 65.4 percent of Americans own their homes, which may be the lowest level in 15 years, an alarming rate considering that 2004 marked the highest rates. According to data compiled by Bloomberg, the current rate however matches the average reported by the Census Bureau since it began reporting in1965.
Only 65.4 percent of Americans own their homes, which may be the lowest level in 15 years, an alarming rate considering that 2004 marked the highest rates. According to data compiled by Bloomberg, the current rate however matches the average reported by the Census Bureau since it began reporting in1965.
OK, now there's confirmation that changing lifestyles are also evident in shopping patterns too. In
a recent study sponsored by
Accenture, the economic downturn may not fully explain why
in-house, or store-brand product sales have increased. Admittedly 2/3 of
shoppers now buy store brands; and mostly they buy them for their economy, they
are cheaper. But half of the consumers surveyed expressed no discernible
difference in quality and 42% buy the store brand because its trustworthy. If
the study is right, 77 percent of shoppers say they will not decrease the
amount of store brand products they buy — even if their disposable income
returns to the same level as it was before the economic downturn.
Signs of the times or signals to change?
Change seems to be the hallmark of the times, life going
forward took an off-road turn with no evidence that it will return. The
long held if, then else causal assumptions associating purchase habits with key
lifecycle events enabled well-run brands to gain marketplace mastery and a
steady increase in profits. Cracks in the validity of these assumptions create
an additional speed bump on top of the recessionary pressures.
Brands, and the business of branding contribute significantly to economic growth.
The capital spent on furthering the awareness, reputation and quality of a
brand is all about ratcheting up or sustaining the association of a given
product or service and consumer purchase preferences.
Geoffrey James offer this simpler explanation.
...branding can associate an emotion with a product,
especially when pointed at highly impressionable buyers (e.g. young men who
watch beer ads), in the vast realm of B2B sales and even in most consumer
markets, there is one, and only one, thing that creates customer emotion: the
customer’s experience with your product.
So are
these shifts irrevocable, related, or will people snap out of their current
patterns? What consequences do shifting consumers perceptions of store
brands foretell?
Is the
decline of shopper interest a failure by the premium brands? In other words, do
consumers really feel as if their reputation of greater overall value, as in
higher quality, no longer warrants their higher price? Or, maybe
store brands are more successful in changing consumer's perception of their
brand's higher quality? The coincidence of lower prices with the effects of communications and marketing
efforts makes it a little more challenging to sort out.
Hold on before I go off the deep end on these findings, I need to point out that as surprising this news may be, my experience in interpreting consumer trends recognizes the pitfalls of relying on averages or raw counts to tell the story. Should I care who the 500 shoppers were? Would learning more about the distribution of the shopper's demographic characteristics be meaningful? Especially when no two shoppers are exactly alike, there are some things that will remain fuzzy. I'm willing to trust that Accenture managed to pull their sample correctly, that the results do accurately scale and project similar wider population shifts .
Hold on before I go off the deep end on these findings, I need to point out that as surprising this news may be, my experience in interpreting consumer trends recognizes the pitfalls of relying on averages or raw counts to tell the story. Should I care who the 500 shoppers were? Would learning more about the distribution of the shopper's demographic characteristics be meaningful? Especially when no two shoppers are exactly alike, there are some things that will remain fuzzy. I'm willing to trust that Accenture managed to pull their sample correctly, that the results do accurately scale and project similar wider population shifts .
Personally,
I suspect a high degree of interaction between all three of these
trends. It's why I raised attention to them in this post. After all married couples, more than likely with
double incomes , shop the decision process differs from single person
households. The shopper wants to please or surprise or endear themselves to
their partner, buy what makes them happy, or more comfortable. Brand loyalty measures
some of this when it also satisfies these experiential needs. If my
partner becomes unhappy, we can blame the brand not the shopper.
Do I really want to let the findings go so quickly? Toss them off as a by product of changing demographics ? Maybe its time brands stopped to smell the coffee, see which players are worth fighting and which shoppers are worth fighting to keep or win. Maybe it's time brand leaders acknowledge the obvious changes in the environment. As a climatologist mentioned this morning, in the Sahara no one talks about drought because everyone knows that the conditions are natural and that heat happens and will continue. If conditions have taken that off road path, time to set to work on alternative business models, relationships or collaborations!
Which arguments do you find more persuasive? Which paths would you stake your future? I'd love to hear your thoughts
Do I really want to let the findings go so quickly? Toss them off as a by product of changing demographics ? Maybe its time brands stopped to smell the coffee, see which players are worth fighting and which shoppers are worth fighting to keep or win. Maybe it's time brand leaders acknowledge the obvious changes in the environment. As a climatologist mentioned this morning, in the Sahara no one talks about drought because everyone knows that the conditions are natural and that heat happens and will continue. If conditions have taken that off road path, time to set to work on alternative business models, relationships or collaborations!
Which arguments do you find more persuasive? Which paths would you stake your future? I'd love to hear your thoughts