U.S. automakers—and buyers—shift toward small

In case you weren’t checking-in with the New York Times over the holiday weekend, there was an interesting story about our recent shift toward smaller cars in the Monday edition.  Click here to read the story.

Implications:  The current economic recovery started in the fourth quarter of 2010.  Until that time, many car buyers had been putting-off this major purchase.  So the past six to nine months have represented the first major, sustainable car-buying binge since gas prices were above $4 back in 2008.   Also, a more contemporary price hike was on our minds as gas prices jumped over $4 earlier this year.  Fuel, like never before, has been a high-profile issue… at a time when more people have been in in a position to shop for a new vehicle.

There is still a truck or SUV in many household fleets… but if this trend toward smaller vehicles should continue (and I think it will), it might influence a number of unrelated categories.  For example, if you sell home furnishings, will affordable delivery become a more important criteria on the consumer’s consideration list?  Should spacious seating become something worth promoting to those who run a roadside restaurant?  (“Stop in and stretch out!”)  What will consumers do with that new found space in their over-sized garage?

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

Checking-in on long-term trends with real estate

This morning, there was a thought-provoking story in the New York Times about the state of the U.S. real estate market.  The article suggested that for many people—even those who can afford to buy a home—living in a rental property has become the lifestyle of choice.  Click here to read the story.

Implications:  It would be wrong to assume that home ownership is over; that’s not true, and not by a long shot.  But that having been said, more consumers are opting-in to a rental, according to this Times report.  For some, the idea of home ownership has lost some of its investment-value luster, and for others, a rental allows for greater flexibility (compared to the longer-term commitment of buying).

This story did not leave me thinking about real estate… but of all the categories and companies that might be impacted by these emerging trends.  If you sell home furnishings, for example, how does this affect you?  Should you be offering pieces that are smaller (apartment- or condo-sized, as opposed to Great Room appropriate)?  What if you sell mortgages or home improvements?  Investments or power sports equipment?  (If someone has gone from a three car garage to two underground parking stalls, where are they putting the jet ski or ATV?)

Are your prospects today the same as the people you thought of prospects five years ago?  Do those customers have the same reasons for buying as they did in 2006?

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

Leveraging the voice of your most passionate customers

A story in today’s Marketing Daily reminds us that the best way to gain new customers is often to harness the power of today’s best customers.  Click here to read the story.    

Implications:  This story happens to be about boating, but the principle applies to almost any category of business.  Consumers believe other consumers (people who have experience with a product or service they’re thinking about buying). 

Does your company have passionate fans?  Who are they?  How can you harness their favorable remarks to bring other prospects into your business?

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

Contrary to history and logic, major crime fell during recession

Traditionally, when the economy falls, crime goes up.  But that has not been the case in recent years—at least with violent crimes—as the U.S. crime rate for things like murder and assault have actually fallen.  That’s according to this recent story from the New York Times (click to link).

Implications:  Note that this story does not dive too far into things like theft or burglary… crimes that might be reasoned as a reaction to economic difficulty.  I’ll make it my assignment to look into those rates for the recession period, which I estimate to be late 2007 through early 2010… when those figures are available.

I wish there was a survey—absent the crime rate—which investigated the degree to which people felt secure during the recession.  (Editor’s note:  Our former home was the target of a break-in in early 2009.)

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

UPDATE: Something fishy is going on

As I continue to clean up my newsletter in-box from this week, I came across a story from Marketing Daily, indicating that consumers would be willing to pay more—both in taxes and in food prices—to make sure their food supply is safe.  Click here to see the full story.

Implications:  Again, self-regulation seems like a good idea to me.  The company or industry category which is pro-active about transparency and safety is likely to gain favor among consumers.

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

Another measure by which to judge (vehicles, and more)

We’ve long been able to compare prices and gas mileage.  But now, consumers can look at the emissions a car puts out, as well as the gas they’ll put in.  Here’s a story from the New York Times that explains (click to link).

Implications:  Watch for many industries and categories to be judged in ever more sophisticated ways by the consumer and your critics.  Paper or plastic?  Lots of people used to favor paper because it was thought to be more bio-degradable.  But depending on manufacturing techniques, paper bags can be just as—or more—harmful than plastic.*

When consumers think “environmentally friendly” or “sustainable,” chances are they won’t be thinking of a single issue (like consumption of fossil fuels).  As people become more educated about the many moving parts involved with manufacturing, consumption and disposal, they are likely to scrutinize a purchase in a variety of ways.

When you consider the life cycle of the product or service you sell… does it compare well to competitive alternatives?  What can you do to improve that product or service, and thus make it more appealing to the consumer’s growing sense (and sophistication) of social responsibility?

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

In the move from field or factory floor to the modern workstation, workers have gotten bigger

A workplace that is less physically demanding is now cited as another major contributor to obesity, according to this recent story from the New York Times.

Click to see the full story. 

Implications:  This NY Times article presents another angle of attack for anyone who is promoting health-consciousness, fitness, or weight-related products and services.  Remember that working out may not be about physique… but simply: staying healthy.

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

Bait and switch: Is something fishy going on?

A recent New York Times story indicates that as much as 20% of fish sold in the U.S. is labeled incorrectly, with regard to the type of fish that is being sold.  Click here to see the story.   The practice allows to overfishing of protected species, and/or cheaper fish being sold under the guise of a more expensive filets. 

Implications:  If this issue is beginning to receive such broad coverage, one might wonder why the fishing industry, itself, isn’t doing more to self-regulate the appropriate labeling of seafood.  Especially now that DNA bar coding (as it is referred to in the article) is possible… and especially since this kind of unscrupulous behavior could cause consumers to choose from something else on the menu, harming the overall industry/category.

If something like this were discovered in your industry or category, how would you respond?  Can you verify/certify that your ingredients are authentic and your suppliers are trustworthy?  Something to think about in an age of greater transparency.

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

Ladies & gentlemen: Start your yard parties

A brief story from today’s Marketing Daily suggests that consumers love entertaining outdoors during the summer months (75%, at least).  It also indicates that people consider some elements of home maintenance (lawn care, power washing the house) to be a part of that entertainment preparation.  Click here to see the story.

Implications:  If you sell hardware, home improvements or power equipment, are you thinking of the entertainment value of your products and services?  It would seem, according to the NPD research cited in this article, that your consumers are!

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

UPDATE: Gas pains won't prohibit vacation

This morning’s Research Brief suggests that while consumers are bothered by rising fuel prices, they plan to forge ahead with summer vacation plans.  Click here to read the brief for yourself.

Implications:  With falling crude oil prices lately, we’re all hoping that the price at the pump will fall soon, too.  But only 39% of survey participants said their vacation plans will be altered if gas prices stay high.

That begs the question… where will the money that people spend on gasoline come from?

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

Gas pains continue to affect other spending

A story from the New York Times this week explores how consumer spending is being impacted by higher gas prices.  Click here to see it.

Implications:  There is an inarguable relationship between what consumers are spending on gas… and what they can spend on everything else.  How is your company impacted by the cost (to consumers) of high fuel prices?  How can your company help the consumer manage this challenge?  (More accomplished on fewer trips to your place of business?  Online purchasing or planning?)

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

Some companies let their marketing grow a little older

A recent New York Times story featured examples of companies that have begun to target older consumers.  Click here to see the full article.

Implications:  The Baby Boom generation has been a favorite target for many marketers since the day were born.  Now, as they head through midlife and into their 60’s, this cohort of consumers will continue to receive attention.  But beware the term “upper demo.”  Because today’s 55+ consumers look very little like their parents or grandparents did at a similar age. 

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