The New Era of Thrift: Changing Spending Habits in the Face of Recession
Euromonitor International's The New Era of Thrift: Changing Spending Habits in the Face of Recession Strategy Briefings is a series of reports that alert you to global trends predicted to influence consumer markets. They offer insight to changing market conditions and the opportunities and challenges companies need to consider to maintain a competitive advantage
Chapters: 9 | Tables: 42 | Publication date: Aug 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Regional coverage
Western Europe; Eastern Europe; North America; Latin America; Asia-Pacific; Oceania; Africa and the Middle East
Table of contents
EXECUTIVE SUMMARY
KEY DRIVERS
Summary 1 Factors Affecting Thrifty Behaviour
CONSUMER MARKET TRENDS
RETAILING TRENDS
Outlook
Summary 2 Opportunities and Challenges in 2009 and Beyond
INTRODUCTION
THE END OF CONSPICUOUS CONSUMPTION
DIFFERENT PERSPECTIVES ON THRIFT
A return to post-war austerity
ECONOMIC DRIVERS
STATE OF THE ECONOMY
Table 1 Real GDP Growth in Selected Markets 2003-2008
THE IMPACT OF UNEMPLOYMENT
Table 2 Unemployment Rates in Selected Markets 2003-2008
SPENDING VERSUS SAVING
Savings ratio low in developed markets
Asian consumers better positioned
Women Spend, Men Save
Table 3 Savings Ratios in Selected Markets 2003-2008
RISING FOOD PRICES
Food price hikes cause concern in West
Rice and grain prices reached record highs in 2008
Prices stabilise in 2009
Table 4 Index of Food and Non-Alcoholic Beverages Prices in Selected Markets 2003-2008
ENVIRONMENTAL DRIVERS
GREEN CONSUMERISM
Renewed focus on reducing waste
Decline in willingness to pay extra for green products
Chart 1 Consumers Agreeing that “The Extra Cost of Environmentally Friendly Products Is Not Worth It To Me” 2008-2009
GREENER TRANSPORT
Decline in new car sales
Table 5 Number of New Passenger Car Registrations in Selected Markets 2003-2008
Eco-friendly alternatives
Table 6 Alternative Transport For Consumers Whose Transportation Habits Changed Over 2008-2009
LOCALLY-PRODUCED FOOD
Supporting local farmers
Consumption of local food highest in Russia, but soaring in US
Chart 2 Consumption of Locally Grown Food in Selected Markets 2009
SELF-GROWN FOOD
Vegetable plots in demand
India leads the way
Chart 3 Consumption of Self-Grown Food in Selected Markets 2009
SWAPPING, MENDING, BUYING SECOND-HAND
Re-using old clothes
Chart 4 Consumers Agreeing that “I Try To Buy Things “Used” Or Pre-Owned, Rather Than Brand New” 2008-2009, Selected Markets
Recycling in the name of fashion
Mend and make do
Chart 5 Consumers Agreeing That “I Prefer to Repair Something When It Is Broken Rather Than Replace It” 2008-2009 Selected Markets
CONSUMER DRIVERS
FRUGALISTAS
Women taking control
Backlash against fast fashion
COCOONING
The cheaper option
Home as an entertainment hub
Chart 6 Global Sales of Selected Consumer Electronics 2003/2008
EATING AND DRINKING HABITS
Back to Basics: A revival in World War II skills
Table 7 Global Consumer Foodservice Versus Retail Packaged Food Sales 2003-2008
Changing alcohol consumption patterns
Table 8 Global Alcoholic Drinks: Off-Trade Versus On-Trade Sales 2003/2008
BARGAIN HUNTING
Culture of value well-entrenched
Rise of Internet shopping
THE LIPSTICK EFFECT
Women reluctant to give up small luxuries
As long as the price is right
VOUCHERISTAS
From snipping to downloading
US consumers swayed by coupons
Internet coupons take off
Mobile coupons offer convenience and ecological benefits
DO IT YOURSELF
Table 9 Sales Through Home and Garden Specialist Retailers in Selected Markets 2003/2008
THE IMPACT OF THE INTERNET
Growing number of “netizens”
Table 10 Number of Internet Users in Selected Markets 2003/2008
PRICE COMPARISON AND MONEY-SAVING WEBSITES
Price comparison sites
Summary 3 International Price Comparison Websites 2008
Travel search engines
Money-saving websites
IMPACT ON CONSUMER MARKETS
PACKAGED FOOD
Benefiting from the stay-at-home trend
Back to basics
Chart 7 Global Sales of Selected Basic Foods 2003/2008
Indulgence Foods
Chart 8 Global Sales of Selected Indulgence Foods 2003/2008
DIY Lunches
Chart 9 Global Sales of Selected Packed Lunch Items 2003/2008
COSMETICS AND TOILETRIES
From premium to masstige
The “lipstick effect” in action
Chart 10 Global Sales of “Feel Good” Cosmetics and Toiletries 2003/2008
CONSUMER FOODSERVICE
Restaurants offer promotions to lure back diners
Fast food operators focus on value offerings
Chart 11 Global Sales of Consumer Foodservice 2003/2008
TOURISM
Slowdown in Arrivals
Table 11 Global Tourism Arrivals 2003-2008
International versus domestic tourism
Table 12 Global Tourism Departures – International Versus Domestic 2003-2008
Currency fluctuations
Table 13 Selected Exchange Rates Against The US$ 2003-2008
Low-cost versus scheduled airlines
Table 14 LCC Revenues as a % total LCC/Scheduled Airlines Revenues in Selected Markets 2003-2008
Downgrading
Camping regains popularity
Table 15 Revenues from Campsites in Selected Markets 2003/2008
IMPACT ON RETAILING
CHANGING SHOPPING HABITS
THE RISE OF HARD DISCOUNTERS
Table 16 Global Sales through Hard Discounters 2003-2008
SUPERMARKETS’ REPONSES TO RECESSION
Promotional tactics to attract frugalistas
Increasing emphasis on private labels
Table 17 Leading Markets for Private Label by Value 2002/2007
THE DOLLAR STORE BOOM
FASHION RETAILING TRENDS
Fast fashion appeals to bargain hunters
Discount designer wear
THE GROWTH OF INTERNET RETAILING
Table 18 Internet Shopping as a % Total Retail Sales by Selected Market 2003/2008
COUNTRY TRENDS
AUSTRALIA
Economic background
Table 19 Australia: Economic Indicators 2008-2010
Recession behaviour
Table 20 Australia: Per Capita Consumer Expenditure 2008-2010
CHINA
Economic background
Table 21 China: Economic Indicators 2008-2010
Recession behaviour
Table 22 China: Per Capita Consumer Expenditure 2008-2010
FRANCE
Economic background
Table 23 France: Economic Indicators 2008-2010
Recession behaviour
Table 24 France: Per Capita Consumer Expenditure 2008-2010
GERMANY
Economic background
Table 25 Germany: Economic Indicators 2008-2010
Recession behaviour
Table 26 Germany: Per Capita Consumer Expenditure 2008-2010
ITALY
Economic background
Table 27 Italy: Economic Indicators 2008-2010
Recession behaviour
Table 28 Italy: Per Capita Consumer Expenditure 2008-2010
JAPAN
Economic background
Table 29 Japan: Economic Indicators 2008-2010
Recession behaviour
Table 30 Japan: Per Capita Consumer Expenditure 2008-2010
UK
Economic background
Table 31 UK: Economic Indicators 2008-2010
Recession behaviour
Table 32 UK: Per Capita Consumer Expenditure 2008-2010
US
Economic background
Table 33 US: Economic Indicators 2008-2010
Recession behaviour
Table 34 US: Per Capita Consumer Expenditure 2008-2010
FUTURE OUTLOOK
Economic recovery on the horizon?
Table 35 Forecast GDP Growth in Selected Markets 2008-2013
Unemployment to peak in 2010
Table 36 Forecast Unemployment Rates by Country 2008-2013
Consumer confidence to remain weak
Spending will slow in short term
Table 37 Savings Ratios in Selected Markets 2008-2013
Frugal habits to remain entrenched
The need to reduce waste
The quest for value
Private label growth
Cocooning is here to stay
Eating out versus home cooking
Table 38 Forecast Global Sales of Packaged Food Versus Consumer Foodservice 2008-2013
Travel industry will be slow to pick up
Table 39 Forecast Global Tourism Departures – International Versus Domestic 2008-2013
Implications for marketers