More evidence that we've entered an age of "inconspicuous consumption"

Today’s USA Today featured a story about the shrinking size—and reduced glitz—of the RV’s that are growing in popularity in today’s economy.  Click here to see the story.

Implications:    It is interesting to note that there are still people out there who are ready to indulge in a big-ticket purchase like a new RV.  But they’re doing it in a way that’s a little less showy, and easier to rationalize as a common-sense purchase.

Over the past few years, I’ve even heard that some celebrities are shopping on Rodeo Drive, but requesting a plain, logo-free bag to carry their purchases in… so as to avoid showing-off that they spent money in an expensive store.  Do you sell an indulgent product or service… that people would like to indulge in (but keep quietly to themselves)?

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

Schools are hurting and you can help (and do well as you do good!)

The Engage:  Teens blog from Media Post launched a three-part series today about the state of education and school budgets.  While the opening premise seems to focus on the challenges that schools are facing (slashed budgets, too few teachers, and greater than ever scrutiny, for example), you’re also wise to consider how these issues might represent opportunities for your company, product or service.  Click here to see the story.

Implications:    If you’ve ever considered a cause marketing initiative that benefits education, now might be a great time to revisit the issue.  Parents are less likely to assume that government (even at the local level) can solve all of the fiscal challenges their communities are facing.

Could you sponsor a section of the local school library?  Provide snacks to after-hours school sessions?  Does your product advance the goal of education?  Could you run a promotion that generates cash for your local school district?

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

What the traditional American household looks like now

Today’s USA Today features an impressive story about shifts in the population landscape that have been discovered in the discourse of the 2010 Census.  Click here to see the story.

Implications:    Fewer children, more Hispanic and Asian Americans, more extended families living in a single dwelling… and 41% of babies are born to unmarried moms.

Things are changing.

Do you serve the same target consumer today that you did ten or twenty years ago?  The face and household composition of the U.S. continues to change… and it’s critical for companies to pay attention, if they are to realize the opportunity that these shifts represent. 

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

Technology impacts affluent consumers

Today’s Research Brief reinforces what most of us already knew:  More and more affluent consumers are using technology to make their shopping and buying faster, more efficient, and more considerate.  (Click here to see the newsletter.)

Implications:    Don’t consider the traditional web or smartphones to be “just something else to worry about.”  Often, these sites and devices are preferred channels through which prefer to do business.

Many people prefer to use technology to aid their shopping.  Do they prefer you?

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

Supermarkets: Expect smaller trips and more planning

Supermarket Guru Phil Lempert suggests that consumers will continue to carefully manager their grocery budgets… as prices on the shelves are expected to rise.  Click here to see the video.

Implications:    If customers are going to plan more carefully, are you offering tools online (and elsewhere) that help them plan?  And if prices are expected to continue their rise, we can expect consumers to continue their scrutiny.  Does it make sense to start bundling more products into a “meal cost,” much as one might see on the menu at a restaurant?  Just a thought:  Consumers continue to change the way they think about buying; that fact should influence the way we think about selling.

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

A street-level look at the political and economic landscape: Ugly

There has certainly been no shortage of chaos over the past week.  The debt ceiling conflict was solved (for now) last Monday and Tuesday (see this Denver Post story).  But it wasn’t accomplished without casualty:  By Thursday, polls had been published illustrating the dismal approval rating of congress (see this NY Times story), and the press has been no less brutal for the White House.  Late Friday, Standard and Poor’s reduced the U.S. credit rating (as published here by the Washington Post).

Implications:    On a positive note, the U.S. economy added more than 128,000 jobs last month… and that number would have been considerably higher if not for the state government shutdown in Minnesota, which temporarily shed 30,000+ positions.  But based on the few polls and considerable press devoted to public sentiment, I have to believe folks are fed-up with the way the system is working right now. 

Heading into an election cycle, we can expect the rhetoric to increase, and the discontent right along with it.  Waiting for the economy to calm is probably not an option.  Getting to know your consumers better than you ever have—and serving them more effectively and efficiently than ever—is going to remain critical for the foreseeable future.

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

Loss of home equity alters retirement plans for many

An important story in yesterday’s USA Today helps shed light on how retirement aspirations are changing for many people, in response to a loss of equity in their home, as well as other investment issues.  Click here to see the story.

Implications:    I’ll be talking with a home improvement contractor later this morning; that’s just one industry impacted by home values that shifted in response to the housing meltdown of 2006-2009.  There are many others, including some categories that are not, at first glance, directly connected to the real estate market.

Are you ready to serve the new age senior, as they move into their retirement years without quitting work?  How will the retirement needs of Baby Boomers be different than their grandparents’ needs during the same life stage?  What products or services do you offer that might help?

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

Coupons remain strong in 2011

Today’s Research Brief explains that coupon remain a strong savings tool for consumers, especially where packaged goods are concerned.  Click here to see the story.

Implications:    In print, online, or via SMS or QR Codes captured on mobile device, folks are still looking for ways to manage their family budgets carefully.  Have you considered the tactic to make your product or service an attractive alternative?

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

Parents hit the “off” switch on electronics

Sales of laptop computers and other electronic devices for back-to-school have been resilient even through the recession and most of the recovery; that is, until this year.  According to a report covered today in Marketing Daily, fewer parents intend to equip their kids with those gadgets before heading back to the classroom.  Click here to see the story.

Implications:    If you’re in the business of selling personal electronics, smartphones, touch pads or laptops… it would be a good idea to focus on the functionality of the product (what the machine will help accomplish), rather than the hipness of the product.

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

What spending cuts could mean on Elm Street

The debt ceiling compromise that passed the house yesterday (and which should pass the senate and be signed into law today) could have a significant impact on the recovery, according to this story from USA Today (click to link). 

Implications:   The original idea behind Elm Street Economics was to suggest that small business owners, managers and marketers should pay less attention to Wall Street and Washington, and focus more on their relationship with consumers; those folks who ostensibly live on the Elm Street cul-de-sac within a few miles from their place of business.

Experts fear (according to the USA Today story) that a fragile economic recovery (just 1.3% economic growth last quarter) could be hampered in the coming months by spending cuts included in the debt ceiling compromise.

Stay tuned.  It sounds like focusing on consumers will be just as critical in the next few years as it has been for the past four.

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

Americans spend less on food

Today’s Lempert Report states that American spend less on food than most of the rest of the world, as a percentage of household income.  Click here to see the story.

Implications:    The piece left me thinking about the way this simple fact leaves more money to be spent on everything else. 

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

The political “to do list” looks different today

A pair of stories in today’s New York Times signals a shift in the focus of U.S. government in coming weeks and months.  First, this story reviews the passage of a debt ceiling agreement (click to link).  Pundits expect the senate to approve the house bill by early afternoon and that it will be signed by the president later today... hours before the treasury department had said it would be unable to meet all of its financial obligations.  Secondly, another Times story suggests that attention will now be shifted to job creation and the economy (click to link).

Implications:    I’ve seen a lot of press focused on the frustration of people (aka voters, consumers) about their politicians, lately… and wondering why the debate about the budget and the debt ceiling has seemingly cost them months of getting anything else done.

It will be interesting to see, in the coming election cycle, whether people remember how much (or little) got done by their employees this summer.  (And I make that statement in a completely bi-partisan tone.)

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