The recession and global financial crisis has changed consumers. Retailers around the world are adjusting to the new order and some are not going to make it.
As reported in the Booz & Co journal Strategy + Business, consumers are saving more and spending less with US unemployment levels now hitting 9.8% and likely to keep growing.
Some 55% of Americans are Spend Shifters and it's a global trend. According to the data, 53 percent of French consumers are Spend Shifters. In Greece, another hard-hit economy, 48 percent of people belong to the movement, as do 45 percent of German and Italian consumers and 44 percent of British consumers.
They are not spend thrifts, they're looking for value. They want products that are about kindness, empathy and connection.
The journal says: "By connecting through values, a company can become a category of one. Instead of selling shoes, such businesses are selling empathy and respect. For each pair of Toms Shoes that a customer buys, for example, the company sends a pair to a child in the developing world. Instead of serving food, companies are creating communities of hope. Instead of making cars, they are promising fairness, openness, and shared discourse."
This is a completely new world for retailers. It's uncharted territory and they will have to reformulate their strategies.
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