September Newsletter : Five Rules for the Recovery
Are we coming out of recession? Barring accidents the answer is YES. Will we go back to the way things used to be? NO. There’s a new spirit of value among New Zealand consumers and their counterparts in other recession-hit countries. Not just value for money but the value of things.
Here's five rules to help you make the most of the recovery.
1. Value for Money
In the last 18 months New Zealanders have opened their eyes to where their money goes. They’ve come to recognise value for money when they see it. And when they don’t. “I can’t afford it” is now an acceptable mantra for even the very well off. Each of the 25 most right for the times brands in its own way has a strongly developed value equation and a high degree of trust among consumers.
2. Welcome to Discount World
This is one side of that value for money equation – we now operate in a marketplace dominated by everyday low prices and incredible discounts. New Zealanders expect them. In food, in travel, in homewares, in apparel – everywhere. And they wait for them – just as Windshift predicted they would in our 2008 study ‘The Time of the Hunter’. To stand apart in this new Discount World takes a strong value proposition and an even stronger sense of necessity on the part of the customer. Why fight it?
3. Go New Zealand
Don’t under-estimate this. New Zealanders have been rocked back on their heels by this economic crisis – the unexpectedness of it and the lack of control they’ve been feeling. They trust their own first. If you don’t have the ownership credentials and you face local competition, you have two choices: you can learn to love us – and show it. That’s still working for Toyota – the only car brand in our top 25. Or you can be so akin to our core values that we take you to our heart. Right Bunnings?
4. Eco-friendly
There is a strong eco-segment in our 2009 research that lives and breathes a post-materialist eco-friendly lifestyle. They’re big enough to matter in any category. But beyond this there’s a whole lot more people strongly attached to the idea of a clean and green future. They may not want to be “greenies” but they’re open to practical ideas and useful products that are good for them and good for the planet. Just don’t try to green-wash them. They do notice.
5. Quality & The New Luxury
This is the other side of the value for money story. Not everyone’s preoccupied with the cheapest thing for the best price. For the more frugal and discerning, the quality of the products they buy and especially their durability has been adopted as a primary justification for the purchase. It’s toned down, far less flashy and status driven – all about the engineering, not the styling. Even if the styling is wonderful. And don’t think of this as simply a consumer products issue. Investments in education and retraining are also being viewed in the same light.
Well - that's my take on it. I don't usually succumb to such straightforwardness. But maybe this is a good thing.
Cheers
PS This is content our 2009 Right for the Times Consumer Report. Presentations and reports are now available at an accessibly low, high quality, very pro-New Zealand eco-frugal price. Need I say more. Click here for more information about content and cost.
Jill Caldwell is Director of Windshift Communications Ltd. Click Here to contact Jill directly This is a free monthly newsletter provided to direct subscribers and legitimate Windshift contacts only. No further use is made of subscriber information. [Copyright Windshift Communications Ltd 2006]
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