Despite slipping back into recession, sooner or later the UK economy will start to grow again. Recently I read a great article ‘Understanding the Post-Recession Consumer’ from Paul Flatters and Michael Willmott, about future trends in consumption for the near post-recession and longer term trends.
Flatters and Willmott identified 8 key trends as below.
Of these trends, three themes strike me as important for the longer term consumer vision.
1. Increased trust in businesses, governments and organisations.
Businesses have suffered a PR disaster over the last few years, with banks perceived as the cause of the recession, BP’s communication problems in 2010 and general distrust from the public. The government has suffered as well with the introduction of austerity measures. However, as the economy begins to grow, scrutiny on shareholder pay, corporate governance, tax avoidance and government spending is likely to subside. When firms create jobs and governments start spending trust is likely to be restored in institutions.
2. Efficient, simple and frictionless purchasing.
While the economy was growing, consumers were confronted with a complex choice of products full of add-ons, spinoffs and varying functions. Simplicity has now become a growing trend, projected to continue after the recession. For example, the success of the iPod shuffle demonstrates how important simplicity is to consumers. In a digital economy, purchasing will have almost limitless information for the consumer, placing the emphasis on the brand to deliver a clear message and benefit for the customer.
3. Increase in demand for ethical and environmental goods and services.
Green and ethical consumption has taken a bit hit in the recession due to concerns with paying bills and saving taking preference over more charitable and environmental concerns. However, longer term when disposable income increases these are two key themes customers will look for in products and businesses. Despite average charitable giving decreasing, the amount of people donating has increased. Ethical credentials can also serve as a point of difference between similar brands and create trust with customers.
Some of these trends will prevail more than others but there is little doubt the effects of the recession will influence behaviour in future years. Brands should take this into account when communicating with their customers.
Paul Barnes
Media Analyst
Get hold of the report from trajectory here
Picture courtesy of The Economist
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