Trade-in value: It's not just for cars anymore

Observation:   Back in October, we shared a posting about “Re-commerce,” where more consumers are trying to sell something they own before buying the replacement for that item (i.e., listing a couch on Craig’s List before spending the money for a new sofa).  Click here to see that Elm Street consumer trends story from October 4, which was based on an article from Trendwatching.com.

In today’s Marketing Daily, there is another story of interest to this trend.  It suggests that more women are considering resale value before they buy a product (and we’re talking about everything from clothing to electronics, no just cars).  Click here to see that story.

76% of the women surveyed indicate that they participate in a site where consumers buy or sell from each other.

Implications:   Should your company consider adding a trade-in policy for the products you sell?  Should it at least start thinking about the long-term resale value of the products you offer, and talking about those attributes with customers?

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

UPDATE: Opportunities hiding within state budget cuts

Last week, I suggested that some companies could become an important alternative when state and local governments cut back on spending and services (see “When states cut, can you gain” from June 2). 

In today’s New York Times, there is an article that explains the impact of spending cuts on state parks (click here to see the story).  If you operate a private campground, theme park, or other affordable, family-friendly, vacation destination, perhaps this Times story will help spark more ideas.

If you operate a sporting goods store that sells camping equipment, fishing tackle, paddle sports gear or hiking equipment, perhaps this story will foster ideas about making regional or state parks in your area the beneficiary of a cause marketing campaign.

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

The consumer might not be who you think

Back in September, 2009, I offered some thoughts about how the unemployment issues of the Great Recession were impacting men in different ways that women [see “Déjà Vu, Women in the Workforce”]. It simply asserted that companies did not just fire people during the downturn, they fired paychecks… seeking not to reduce headcount, but to dramatically cut payroll. This put a target on the backs of a lot of men in management and in the C-suite. Also, the recession was particularly tough on people whose jobs were tied to manufacturing and construction.

Yesterday, Advertising Age offered a story that explains one of the possible implications of that shift, explaining that more men are in control of the household’s grocery shopping chores. Click here for the full story.

Implications: It’s not enough for a company to understand who their target consumers are. They must understand, also, how their target consumer groups are changing over time. And this isn’t just about groceries and packaged goods. Who’s taking the kids to the doctor? Who’s more likely to have a commute (and thus, decide on the next vehicle the household will purchase and the gas station/convenience store/coffee shop to stop at)? Who’s more likely to purchase business apparel, and who’s more likely to plan the next family vacation? Who will balance the checkbook and pay the household’s bills?

Who will drive the decision about the product or service you sell?

Mike Anderson

Health and fitness: A national security issue?

Michelle Obama’s campaign against childhood obesity might be more than just a good idea. It could be an early initiative in a larger, longer-term focus on national health.

In yesterday’s New York Times, there was a story about the condition of new recruits when they arrive for basic training at Fort Jackson in Columbia, SC. (Click here to read the story.)

Implications: Again, I have little desire to assume the role of futurist; in fact, this NY Times story inspired me to look to the past, when poor fitness was recognized as an important problem… worthy of a nation-wide solution. I did a search for the original President’s Council on Physical Fitness (circa 1956), and came across this history at fitness.gov (click here to see the piece).

A country is only as healthy as its population; I don’t see issues like fitness, diet and overall wellness fading away anytime soon. That’s not a hint from the future, but one from our past.

Mike Anderson

Momentum (and opportunities) for "healthy lifestyle" habits

Michelle Obama has focused a great deal of attention on the issue of childhood obesity. And a variety of marketers—including soft drink manufacturers—are taking note. As a recent example of the response, see this story from today’s Media Post Marketing Daily.

Implications: The food and beverage manufacturing industries are smart to embrace the obesity issue, not just because of the celebrity and press coverage it is receiving, but because the issue enjoys such wide-spread popular support.

My question is this: Where else could the momentum of “healthy lifestyle habits” be harnessed to help companies do well, while doing good? I’m thinking about restaurants (healthy menu selections) and sporting goods stores (active lifestyle), for starters. But it seems to me that the possibilities are very broad.

Does your product or service facilitate healthy living? In a realistic and marketable way?

Mike Anderson

Store brands enjoy the dividends of frugality

And they might not be just for groceries anymore.

Evidence suggests that use of private-label (or “store brand”) goods is one of the recession-induced behaviors that is likely to remain strong long into the recovery.

In a recent Media Post Marketing Daily article, a survey (of 800 supermarket shoppers) by GfK Research indicated that 62% of consumers intend to purchase more private-label products going forward. 43% of those polled said they had recently ditched a national brand in favor of a generic purchase… up from 35% a year ago.

Another story focused on the topic of store brands just last week, this time in the Research Brief
from Media Post. One conclusion drawn by the article is that the idea of "lesser performance" by store brands, compared to name brands, is beginning to fade.

Implications: What interests me about this issue is the idea that store brands are no longer limited to backaged goods. Recently, I’ve noticed greater creativity and diversity when it comes to the idea of “store brands.” For example, I love to go camping and kayaking. So over the past year or so, it’s been easy to notice the new “store brand” at Dick’s Sporting Goods: Field and Stream. Specifically, I’ve been tempted by a Field and Stream hybrid solo canoe… and I’ve studied it closely enough to know that it was actually manufactured by Old Towne, a reputable boat maker. (I already own a larger Old Towne.)

If you abide by the laws of supply and demand, you will likely be giving your private-label goods a higher profile than you did before the recession… at least for the foreseeable future. But I’m wondering what other “next creative steps” might be in the realm of store-brand merchandise.

For smaller retailers, would it make sense to form (or grow their) buying groups to create greater leverage with manufacturers, so that more and diverse private label goods can be offered, even among smaller stores?

For packaged goods companies, does it make sense to partner with certain retailers to focus on specific products that can be sold as if they were store-brands? (For example, “Bounty, now the official store-brand paper towel of ____ supermarkets. And that means greater value for you.”)

[My thanks to friend and fellow trend watcher JoAnne Naganawa in Seattle, for emailing the Media Post story to me!]

Mike Anderson