Rents on the rise in many cities across the U.S.

Observation:   Many homeowners are feeling the frustration of the recent real estate meltdown.  But in many markets across the U.S., renters are feeling a bit pinched, too, as demand for apartments—and rent costs—rise.  Click here to see a recent New York Times story on the matter.

Implications:  Could high rents be one of the stimuli that cause renters to make a move toward buying?  How long will it be before the pendulum swings back toward home ownership?  Or will apartment building development resume, therefore creating more supply for this impressive demand for rental units?  As another source of rental housing, many investors have snapped-up single-family houses only to rent them to families who lost their homes through foreclosure.  Is that a long-term trend, or will those homes be sold-off again when housing supply and demand gets back into balance?

If you sell home furnishings, appliances or improvements, this range of possibilities affects you.  If you sell furniture, the goods you sell to an apartment dweller will be smaller that the goods you sold to the big homeowner.  If you sell to a former owner that is now a renter, your transaction is more likely to be in cash rather than credit terms.  Do your goods and offers reflect the current set of realities that your most important customers are facing?

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

About two-thirds expect a tax refund, and more folks intend to "save" it

Observation:   A recent story from Marketing Daily indicates more than 66% of respondents to a BigInsight survey expect a check from the government this tax season, and 43.8% say they plan to save it.  Click here to see the story.

Implications:   My question is, “Save it for what?”  Are they saving it for retirement?  Or are they simply planning to spend it more strategically on one of many big-ticket needs that has gone un-sated over the past several years?  They could be saving it until May when they buy a new car, or until Fall when they buy a new suite of appliances.  To many folks, “saving” money might just mean not squandering it immediately, instead spending it thoughtfully on something they might be able to afford with a regular paycheck.

What is your company doing to convince consumers that your product or service is worth their investment, whether it be using their regular income… or the extra boost their tax return often feels like?

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

UPDATE: Convenience stores are in the restaurant business, too

Moments after posting the story immediately below, I found this piece from Convenience Stores News about the expanding footprint that the ready-to-eat section has in the typical c-store.  Click here to see the story.  (To understand why that's important read my earlier post on the topic, found immediately below.)

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

Fast food meets the family dining room

Observation:   This week, I had the pleasure of talking about Consumer DNA with a really sharp marketing team in Orlando.  One of the things we discussed was the impending churn that we can expect in the in- and out-of-home dining category.  During the recession, lots of folks down-graded from upscale to family casual restaurants, or from family casual to fast food, or from fast food to eating at home.  As the recovery picks up steam, the folks who lost market share will try regain it, and the folks who gained share will try to retain it.

When I got back into the office this morning, an FMI newsletter led me to this story from the Orlando Business Journal, explaining how Winn-Dixie is expanding their take-home meal solutions menu.  Click here to see the story.

Implications:   This is another way consumers will be comparing Apples to Oranges… meaning that restaurants don’t just compete with other companies in their category; they must worry about another category they compete with (grocers).

Who are the direct competitors you’re focused on?  (The people who sell pretty much the same thing you sell?)  And while you’re focused on that obvious competition, are there other categories taking a bite out of your sector?  How might you defend?  Or, how can you play offense… and grow beyond your core business to find new veins of revenue?

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

Automakers introduce “Gateways to Luxury”

Observation:   An article from USA Today explains how luxury automakers are moving down-market, hoping to lure younger, perhaps less affluent consumers into the upscale car market a little bit sooner… and more gradually.  Click here to see the story.

Implications:   “Luxury brand owners tend to be more loyal,” and therefore, it’s important to “Capture, Land and Expand.”  What a great series of thoughts from people who work in the upscale car market.  Gain attention the market share you hope to (capture) and develop over the next few years, sell (land) them, and then grow (expand) the relationship.

Makes perfect sense to me, provide there are entry-level luxury vehicles worth buying, and provided there are enough buyers to go around in what appears to be an increasingly crowded space.

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

Men join the recovery in apparel spending

Observation:   A story in yesterday’s New York Times explains that men are spending more than ever on fashion accessories.  But perhaps more importantly, it points out unemployment and other recessionary issues impacted men differently than women.  Click here to see the story.

Implications:   It’s good to see men back spending again, and especially on themselves.  Both male and female heads-of-household delayed personal spending during the recent 2007-2009 recession… opting to support the needs of their family first.  Indulging a little more—or updating one’s wardrobe—might be another indication that the recovery and consumer confidence gaining a little momentum.

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

Are consumers talking about you behind your back (but in clear view, online)?

Observation:   Over the past few years, I’ve had dozens of conversations about the increasing influence of consumers in a transaction… before, during and after the purchase.  Today’s Minneapolis Star Tribune features a story about the extent to which consumers are using their technology tools to manage their consumer relationships.  Click here to see the story.

Implications:   Never has the consumer’s Word of Mouth been so loudly and immediately amplified into the marketing message as it is today.  It might be impossible to control what people are saying about your company, product or service on Facebook or Twitter… you still have tremendous control over the experience someone enjoys when they do business with you.

When a customers walks into your business (whether on foot, online or over the phone), assume they have the power to broadcast their experience to the world.

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

More on the changing composition of the American family

Observation:   In case you missed it over the weekend, the New York Times had a story about the growing number of women who give birth while unmarried.  For starters, unmarried mom is a title no longer reserved for women in their 30s or 40s who have yet to find a marriage partner and want to make their move before its too late; it is a role increasingly assumed by women in their 20s.  Among women under thirty in the U.S., more than half of all births are to unmarried moms. 

  Click here to see the full story.

Implications:   If you market to families, it is critical that you are aware of changes that are occurring to the family unit.  How should you portray a family trip to the theatre, theme park or restaurant?  How will cost be taken into account when unmarried moms and dads are pricing the family meal alternatives at their local grocery store?  And how will the social, financial and time pressures be different on moms in 2012 than they were in 2002 or 1992?

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

Smart phones eating into the camera market

Observation:   As the inboard devices become more sophisticated and take photos of higher resolution, lots of people are leaning on their phone for “spur of the moment” shots.  However, consumers still want a point-and-shoot or D-SLR for those really important shots.  That’s according to a story in today’s Marketing Daily.  Click here to see it.

Implications:   Every industry category seems to be going through change, either in response to technology and innovation, or in the aftermath of the recent recession.   

Do customers sometimes choose a cheaper alternative when considering the products you… but then come back to you for a need that is really important?  (Are you seen as the quality choice, or the low-price option?)  Is technology or an emerging competitor eating into your sales?  Sometimes, a shift like this can happen so slowly that you don’t realize the magnitude of an emerging competitor. 

Just ask Kodak.

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

Google/IPSOS study: Mobile devices gaining strength as purchasing influence

Observation:  This morning, I had the privilege of speaking to members of the Chamber of the Palm Beaches in West Palm Beach, Florida.  The essence of our conversation was that it is increasingly difficult to keep up with all the changes in technology and digital media… but that life becomes easier when you focus instead on how your consumers are using those tools, and why.

A recent article from Online Media Daily supports this premise and cites research from Google and IPSOS suggesting that people use their different devices for different kinds of shopping research.  Click here to see the story.

UPDATE:  Today's Marketing Daily also had a story about the retailers are flocking to e-commerce as a revenue stream.  Click here to read that article.

Implications:   In the room of 200+ participants this morning, I almost sensed a collective sigh of relief; focus on your consumer and how they’re using technology, rather than trying to know everything about everything. 

Do you have a way of gaining insight or feedback from your most important customers, with regard to what they want from your business in the digital space?  If you don’t know what customers like, it will be a challenge getting those folks to “Like” you on Facebook, or anywhere else.


[Personal note:  My thanks to the Chamber of the Palm Beaches and the Palm Beach Post... it's always fun to brainstorm with people who are eager to explore and embrace what's next.]

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

Smaller candy bars more healthy? Or just more profitable?

Observation:  There was an interesting pair of stories about companies that are changing the size or type of their products… in a quest to benefit the consumer.

The first artice came through Reuters, and indicated that Mars would stop selling jumbo-sized candy bars, in the interest of encouraging a more healthy snacking lifestyle.  Click here to see that story.

The second story came from Marketing Daily, and explained that Tropicana will be developing beverages that contain less juice and more water (even hinting that they are yielding to consumer preference).  Click here to see that story.

Implications:   Both of these stories sound like spin to me, but let’s wait and see what the marketing looks like.  Can Mars explain that the reduction in candy bar size is an effort to help people snack in a more health-conscious manner?  (Will the price of diet-friendly bars remain static?)  How will Tropicana sell the idea that people prefer watered-down juice beverages?  Will either company be seen by consumers as simply trying to adjust products as a means toward a price increase?

I’ve been a copywriter for more than 30 years… and I’m eager to see how these hands are played. 

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

Men more likely to be behind the cart

Observation:  Over the past few years, terms like employment and head-of-household have taken on all new meanings.  For example, consider this recent story from Supermarket News, which suggests that men are more frequently behind the handlebar of a shopping cart.  (Click here to see the full story.)

Implications:   It’s time to divide your target consumer into (at least) two groups:  Those who buy what you sell, and those who actually consume what you sell.  It might not be the same person.  (In a world like that, who makes the decisions, and why?) 

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