2012 Trends from Trendwatching.com

Observation:  Trendwatching.com published a solid summary of things they’re watching for 2012… and it’s a great way to end the year if you are an avid trend watcher.  Click here to see it.

Implications:   Think of the tumultuous time we have come through from 2007 through 2011.  May the opportunities and challenges we have conquered inspire your progress in 2012, as we move into a New Year with eyes wide open… and focused on consumers and consumer trends that can help you prosper.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Consumer technology played a significant role in 2011 holiday shopping season

Observation:  An analysis by Ipsos illustrates just how much people used their mobile devices and online shopping to solve their holiday needs.  Click here to see the press release.

Implications:   Reports like this help remind us that people always appreciate the opportunity to save not just money… but time.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Can you hear me now? More talk about mobile phone regulation.

Observation:  A recent story from the New York Times explains how talk of tighter rules about using mobile phones while driving is picking up speed.  Click here to see the story.

Implications:   With cell phones and smart phones so ubiquitous now, it will be interesting to see if regulators have any luck putting this toothpaste back in the tube.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Worthwhile consumer trends from Brand Keys

Observation:  We see a barrage of trends and forecasts this time of year, and it’s difficult to sift through them all.  But there are several that are worth sharing, including a two-part series from Brand Keys.  The set is called “Twelve for Twelve,”  a dozen items they offer in two separate Forbes articles.  Click here to see their first six forecasts, and when you’re ready, click here to read the second set of six items.

Implications:   Very often, a trend watcher can veer off the road and become a futurist… sometimes without solid basis.  But these forecasts are based on watching recent changes in consumer behavior and evolving consumer trends.  I thought this was a powerful set (or two) of trend and implication ideas… which could smartly influence the way a company is run, or the way a marketing message is designed.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Ads offering cars as a gift idea seem to miss the mark. (Or do they?)

Observation:  According to a recent story from Marketing Daily, few consumers are wooed by those campaigns that suggest a vehicle would make a great Christmas gift.  Click here to see the story.

Implications:   What the study does not adequately acknowledge is that Lexus is not after “most consumers” when they run a commercial suggesting their upscale cars would make a great gift idea.  They’re targeting folks for whom the idea does not seem over-the-top.

Personally, I don’t see myself buying anyone a car for Christmas.  But in this case, I’m not the target.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

More signs of inflation seen at the supermarket

Observation:  According to this morning’s newsletter from Phil Lempert, select grocery categories have marked some notable price increases.  Click here to see the story.

Implications:   Cost savings was one of the things that drove many consumers to dine at home more often during the recession.  If prices continue to climb, it will be interesting to watch whether the practice becomes less attractive.  (Could restaurants benefit?) 

This is an important category to watch because food prices influence the amount of income that is left for other more discretionary purchases. 

s fun to watch all the forecasts this time of year… and try decide which will come to fruition and which will not.  If the holiday season finds you with a few minutes to think about it… you might ask, “How are my customers different this year than they were two or three years ago?  Are they same people, or am I selling to a different pool of prospects?  Do these people have the same needs that they used to have?”

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Small business trends from Amex Open Forum

Observation:  Open Forum is a service to small business operators from American Express.  Here are a few of their seasonal trend offerings… most having to do with the relationship between small business, technology and consumers.  (Click to link.)

Implications:   It’s fun to watch all the forecasts this time of year… and try decide which will come to fruition and which will not.  If the holiday season finds you with a few minutes to think about it, you might ask, “How are my customers different this year than they were two or three years ago?  Are they same people, or am I selling to a different pool of prospects?  Do these people have the same needs that they used to have?”

Decide how your customers are changing… as those are the trends that will impact your company the most.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: 2012 food trends to watch

Here is an overview of the food trends we posted earlier today (see immediately below) from Phil Lempert, conveniently contained in a single one-page overview, courtesy of the Food Marketing Institute (click to link).

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Supermarket trends 6 – 10 from Phil Lempert

Observation:  To follow-up on my previous posting (see immediately below), here is the second set of trends about the packaged goods and grocery store industry from Phil Lempert, the Supermarket Guru.

Again, click on any headline to get the long form of his forecast or trend observation:

Trend #6:  Ethnic flavors grow in popularity (Consumers are enticed by new forms of product trial and experiences.)

Trend #7:  Men’s role in the family continues to expand (It’s not just about being a breadwinner anymore.)

Trend #8:  Extreme cooking to save cash (Preparing lots of food for little money, and saving even more with a “leftovers” strategy.)

Trend #9:  How sweet it isn’t (With more attention given to the harm of processed foods and added sugars, more consumers will push back to the basics of food.)

Trend #10:  Sensory considerations—beyond taste—of food (One example is how a chip company abandoned their new bio-degradable bag because it was too noisy!)

Implications:   It’s fun to hear insights from a grocery industry insider… and to wonder how similar changes in consumer behavior might affect industries well beyond the supermarket.

I’ll repeat the question:  “In your business… what’s next?”  Chances are, the best answers will come from the consumers you serve.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Supermarket trends 1 – 5 from Phil Lempert

Observation:  We have arrived in the season why posting for a consumer trends blog becomes easier—at least for a couple of weeks—because so many prognosticators are publishing their forecasts for the next year.  So here we go, with our first set of predictions and trends from the outside. 

I’ll start with the grocery and packaged goods industry, thanks to Phil Lempert’s Supermarket Guru website.  Here’s what Phil thinks we’ll see, according to his first five trend postings about 2012 (click on any headline to get the long form of his forecast or trend observation):

#1:  Higher food prices  (Commodity prices will rise in response to global supply and demand issues).

#2:  Online while in-the-aisle  (Apps and websites make us feel like we’re never shopping alone.)

#3:  Continued Baby Boomer influence (Why would we stop now?)

#4:  Increased focus on how food gets to market (Consumers will more closely watch the steps between the farm and the fork.)

#5:  The end of the checkout lane  (Self-service check-outs will become too easy to not use, thanks to RFID tags and other technology.)

Implications:   It’s fun to hear insights from a grocery industry insider… and to wonder how similar changes in consumer behavior might affect industries well beyond the supermarket.

In your business… what’s next?

I’ll provide the next batch of Phil’s trends in a subsequent posting.  (There are five more to go.)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Restaurant trends for 2012: Importing new tastes and ideas

Observation:  A recent Marketing Daily story featured insights from Mintel that point to more international flavors and styles coming to the restaurant business next year.  Click here to see the story.

Implications:   This MD piece cites many reasons why the out-of-home dining industry will reach across the pond for new ideas.  But one motivation that I did not see mentioned in the piece is that the U.S. palate, like its population, has simply become more diverse. 

With a broadening tapestry of race and ethnicity, it only makes sense that our menus would expand, too.

Has your company embraced new ideas from beyond our shores?  Has it recognized the changing composition of the U.S. population?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Amazon incentives designed to get customers to walk out of retail stores empty-handed

Observation:  Colleague and friend Kim Peek passed along this story from All Things Digital.  It seems that, beginning today, a promotion from Amazon is designed to train consumers to treat retail stores like showrooms… where they browse in a bricks-and-mortar store, but then go online to make the purchase.  Click here to see the story.

Implications:   Salesmanship training is bound to make a comeback, as retailers urge their store personnel to close the sale now… by offering helpful purchasing tips and value-added services that encourage the consumer to purchase on-the-spot.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Deals and free shipping spark online spending for holidays

Observation:  USA Today recently published a story that explores why e-commerce has gained traction this year.  Click here to see the story.

Implications:   There are two things consumers really like to save:  Time and Money.  If your company, product or service can satisfy those wishes, great.  If not, then instead of placing focus on what they like to save… focus on what they like to savor. 

What parts of your purchase experience would be difficult to replicate online?  Is it the atmosphere or ambience of your store?  Is it immediate gratification or your convenient, face-to-face return policy?  Could it be the friendliness or helpfulness of your staff?  Or is it the simple service that makes a purchase more fun than clicking on, “Add to cart?”

If you don’t offer one or more of these kinds of value propositions to help distinguish your business from the typical online store, I really hope you have a fantastic website!

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The impending shortage of resources

Observation:  I’ve written on more than a few occasions about the likely increase in prices for a wide variety of commodities (and products produced from them) due to the expanding economies of India, China and other countries.  This weeks’ newsletter from McKinsey elaborates on that matter considerably.  And you can see it by clicking here.

Implications:   If price is your only proposition, the market is about to become more complicated.  As the cost of goods increases over the next few years, price won’t be as compelling a story.  NOW is a good time to start talking about the value you add to the consumer’s life, whether through experience, service, or other satisfaction.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Gift cards make a comeback

Observation:  Today’s Research Brief suggests that gift cards have made a comeback during the 2011 holiday season.  Click here to see the story.

Implications:   During the great recession, many companies reported a decline in gift card sales, presumably because consumers could buy what seemed like more for the money, when choosing apparel, appliances or home electronics that “seemed like more” than the face value of a similarly-priced card.

This year, however, it seems the utilitarian value of gift cards—letting people choose their own gift and then assuredly get something they really want or need—has come to the forefront of consideration.

Are your gift card sales up?  It might be a good time to give them a higher profile as we approach the end of the holiday season, and people start grasping for great last-minute ideas.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Too much of a good thing: When consumers overdose on holiday cheer

Observation:  A recent story from Marketing Daily offered insights about how much is too much of a good thing, when it comes to the holiday cheer offered by retailers.  Click here to see the story.

Implications:   It’s easy to understand why retailers would pound so hard on the idea of holiday shopping… so much of their profit comes from the final sixty days of the year, they want to make sure they hit it out of the park.  But it’s good to consider when you have gone overboard.

This Marketing Daily Q&A article inspires some important thought… but it might be a great idea to talk with your sales staff to see if they can sense when customers have had enough.  Or, talk with your customers!

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

A post-recession mentality: Saving money, right to the end

Observation:  Today’s New York Times suggests that cremation services have risen in popularity… as one last strategy to save money.  Click here to see the story.

Implications:   This story is a good example of how families are examining their priorities, and considering the value behind all kinds of products and services.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

New or used: Some consumers upgrade to older but nicer cars

Observation:  A story from today’s Marketing Daily suggests that more consumers are opting to buy a pre-owned vehicle with nicer features, rather than buying a more base-model new car.  Click here to see the story.

Implications:   In reconciling what value means in a post-recession economy, it appears that consumers are getting creating about how they can enjoy the finer things.  Does your company, product or service appeal to that sentiment?

Does your marketing/messaging?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Another marketing technology to watch: Augmented Reality

Observation:  A blog post from Engage:  Gen Y this morning explains that, just like QR codes, Augmented Reality apps are an emerging technology that hold the potential to help company/consumer interaction.  Click here to see the story.

Implications:   The author of the AR posting is wise to caution that, used purely for novelty, Augmented Reality apps are likely to be quickly dismissed by the consumer as interesting but unnecessary.  So before you get in too deep—just like any other media or messaging tool—make sure your have relevant marketing strategy and logical tactics.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Shopping for apparel online gets one step closer to providing in-store service

Observation:  This morning’s newsletter from Springwise explains that up to 40% of online clothing purchases are returned… and the culprit is often a size issue.  However, one online company is helping clothes buyers obtain a size and shape profile, using only their webcam and a compact disk.  Click here to see the story.

Implications:   It is both scary and exciting to see innovations like this happening all around us, and around the clock.  But the best innovations aren’t as sophisticated as they are consumer-focused, and sometimes very simple.

Is your company innovating its products and services… or finding new ways to satisfy customers?  Sometimes, there is a difference between the two.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

It would appear that the line between restaurants and retail continues to blur

Observation:  A recent story from Marketing Daily suggests that as convenience stores expand their menu of grab-and-go offerings, consumers frequently skip the fast food restaurant in favor of the small stores.  Click here to see the story.

Implications:   I ‘ve said it before and I’ll say it again… it’s not enough to worry about competitors in your category; it is equally important to consider which categories you might compete with.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Mobile optimization is not enough… functionality matters, too

Observation:  Today’s Research Brief features research from Coremetrics suggesting that consumers increasingly expect desktop-computer-style functionality from their smartphone.  Click here to see the story.

Implications:   Oh how many businesses wish they could build a website or mobile strategy and call it, “done.”  But the now that so many consumers have upgraded their phone to an Android or iPhone, they expect an upgraded experience on the other end of the line, too.

Granted, the share of overall sales that can be attributed to shopping on mobile devices is relatively small.  But it wasn’t that long ago that one could have said the same thing about the Internet, 1.0. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Deciding where credit is due

Observation:  If it did anything at all, the Great Recession exposed flaws in the way both lenders and consumers decide how much debt they can handle.  Well, it seems that one consortium is about to expand the scope of financial behaviors that are scrutinized in the act of building a credit report.  Click here to see that story, which appeared in a recent issue of the New York Times.

Implications:   It has been suggested that many consumers have been working to shore-up their financial affairs, and be more careful with credit.  It would appear that lenders, too, will have better tools to gage their credit practices.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Auto industry to add back 30,000 jobs

Observation:  Over the next few years, it is projected that the automotive manufacturing industry will regain a significant number of workers that were shed during the recession of 2007-2009, according to this story from the Detroit Free Press (click to link).

Implications:   Just as consumers have been reconciling their spending to a new set of economic realities, companies and even entire industries have been reconciling their operating costs.  The auto industry, among others, has succeeded in overhauling union contracts and other employment agreements… leading to lower employment costs.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Teens practice and appreciate good digital citizenship

Observation:  Absent dramatic regulation or oversight, teens still report a self-disciplined use of the web—and good manners, in general—among users of the Internet, mobile devices and social sites.  That’s according to this recent Research Brief (click to link).

Implications:   I wish that kind of discipline could be seen among grown-ups on the highways at drive time!

Young consumers are never really known a world where there wasn’t an Internet.  They’ve grown up with it… and expect people who use it to do so responsibly.  Does your company website violate any common-sense “good manners?”  If it does, these young folks (and almost any consumer) are likely to call you out on it… or worse yet, just go away.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Signs of reconciliation continue... and that doesn't always mean "cutting back"

Observation:  A pair of recent stories from Marketing Daily serves as an illustration that while some people might be continuing their more pragmatic spending style, others have moved on.  First, there was an article about lowering expectations at Tiffany’s… which sources loosely attribute to the Occupy Wall Street movement (I personally think that might be a stretch, but the idea of being more conservative is easy to believe).  Click here to see that story.

Another posting explains how the use of private-label (aka store branded) credit cards is down.  Click here to see that story.  But not everyone is "cutting back."  

Implications:   Our description of the current consumer climate as “a period of reconciliation” seems to be more appropriate with each passing week… as families acclimate their spending behaviors to the new set of realities they have been dealt in the post-recession era.


That doesn't mean they've stopped spending.  Some families might be deciding that things have calmed-down enough that they can get back to the task of living.  This story from Marketing Daily suggests that some consumers are getting BACK to indulging on luxury brands, particularly where automotive is concerned.  (Click to link.)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The ugly side of economic stress: Theft… and much of it is an inside job

Observation:  Among the newsletters I subscribe to is the Food Marketing Institute update, which led me to this ABC News story about retail shrinkage (and specifically, how it increases during the holidays).  Click here to see the story, which ran Thanksgiving Week, and which reminds us that sometimes, shrinkage comes at the hands of people on the payroll.

Implications:   The Elm Street Economics consumer trends blog is designed to aid small business owners, managers and marketers.  I thought this story was an important operational issue to offer… even if it is among the less attractive of consumer behaviors.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Amplifying the optimism: Jobs report

Observation:  It’s always great to end a week with a positive note.  The jobs report issued today suggests the labor market is continuing to stabilize.  For more details, consider this version of the news release from the Washington Post (click to link).

Implications:   As I’ve said before, consumers hear enough bad news; it is incumbent on us to amplify the good news that is available!  Have a nice weekend.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Trends related to the workforce and education

Observation:  Last weekend, a story in the New York Times carried the misleading headline, The Dwindling Power of a College Degree.  I wanted to share it before filing it away because as I read it, the article struck me as less a story about education than it was about shifting business fundamentals in America.  The second half of the story points-out tectonic shifts which have impacted the art of making a dollar, including reduced regulations (which used to affect top earners), and declining labor unions (which used to hold sway over how low wages could go).  It was an interesting read, with regard to advancing trends among earners (aka, consumers).  Click here to read it.

Implications:   As the story opines in its closing paragraphs, it would be difficult to imagine what the new financial world order will look like as the post-recession economy starts to normalize.  But it would be reckless to not keep an eye on how things are changing… whether the chasm that defines the Dumb Bell Economy continues to grow, or whether the country resolves to equalize earning power and taxes in some way.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The world of extremes continues

Observation:  I’m waiting for a flight our of south Florida, and catching up on the week’s news.  In a single edition of the New York Times this week there is a story about the surging stock market  (the haves), and another story about the increase number of families who are taking advantage of free meals from their local school systems.   (Click here for the story on stocks, and click here for the story on schools.)

Implications:   The dumb bell theory continues.  (See the Elm Street Trends posting from November 16.)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Dear Santa: Please give my child… lower expectations

Observation:  A recent story in the New Yorks Times explains how one Santa Claus school is teaching their graduate St. Nicks to reduce lofty expectations.  To read this sign of the times, click here.

Implications:   Yesterday, I offered a post about “reconciliation,” or setting ones current lifestyle and spending habits to the realities of changing home values, incomes and job security.  A friend shared this story as an example of how that reconciliation, in many cases, is touching every member of the family.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.