By Doug Stephens<\/p>\n

You\u2019ve likely seen the relentless stream of news articles and blogs lately touting the \u201cnew consumer mindset\u201d.\u00a0 Terms like \u201cpost-consumerism\u201d, \u201cbelt-tightening\u201d, \u201cfrugal chic\u201d and other catchy slogans are being used to put a handle on sluggish consumer activity.\u00a0 It seems that if we can sum up a problem with a snappy catchphrase it makes it easier to rationalize.<\/p>\n

The range of opinion on today\u2019s consumer is wide and vacillates from day to day. One piece of data may show signs of a consumer comeback only to be negated by a different statistic the following day.\u00a0 All of this adds to both the confusion and desperation among retailers.<\/p>\n

The conservative view is that buying behavior will be negatively altered for the long-term.\u00a0 This camp suggests that consumers will radically change their purchasing habits and indeed even dial-down their lifestyles to accommodate the new normal<\/em>.\u00a0 In contrast, the liberal view is that as soon as the dark clouds of economic doom part, the consumer will return to their giddy pre-apocalyptic level of spending.\u00a0 Presumably somewhere between the two positions lies the truth.\u00a0 Attempting to weed through fact, fiction and journalistic hyperbole is a definite challenge.<\/p>\n

Fortunately, a good friend and former colleague of mine sent me a piece of research last week by Yankelovich and The Futures Company <\/a> that provided one of the most clear, reasonable and cogent points of view I\u2019ve seen on the subject.\u00a0 Firstly it made the point that in every economic downturn, the Press has tried to convince us that consumers will consciously live below their means for an extended period.\u00a0 In fact, this has never been the case…ever.\u00a0 Secondly, it suggested that what we\u2019ve really entered into is an era of increased personal and social responsibility.\u00a0 We\u2019ve awakened to the idea that we need to live within our means \u2013 not below them \u2013 but within them.\u00a0 Along with this sense of fiscal accountability there come residuals, like an enhanced sense of accountability for the health of our bodies, our communities and our planet.\u00a0 The live now pay later<\/em> philosophy is outdated.\u00a0 The days of on-the-spot credit approval and a free iPod with every approved credit card application are (thankfully) gone… for now.<\/p>\n

As a result of this new sobriety, consumers will gravitate toward retailers who they perceive will help them in their quest to be more responsible \u2013 that will help them do the right thing.\u00a0\u00a0 Assist them in buying the things that they need in a manner they can afford.\u00a0 Offer them products that are healthy in quantities that are sensible.\u00a0 Supply choices that reflect a higher level of sustainability.\u00a0 None of this denotes cheap, although price is and always has been a qualifier.<\/p>\n

Ironically, the response of many retailers has been to attempt to bait consumers into buying using (almost constant) price promotion.\u00a0 Simply beating the price down to the point where, need it or not, the consumer might give in and buy.\u00a0 Clearly this doesn\u2019t address the underlying needs and I believe that\u2019s why it\u2019s largely failed to stimulate activity to this point.\u00a0 If anything, convincing consumers to buy something they may not truly need doesn\u2019t solve the problem, it exacerbates it.<\/p>\n

However, resurrecting programs like layaway plans<\/a> might help, especially for younger consumers who could benefit from the buy-with-cash lesson.\u00a0 Recommending products that last longer and therefore save money in the long-run is another form of responsible guidance to the consumer.\u00a0 And here\u2019s a thought…how about rewarding customers who pay with cash<\/em> instead of credit<\/em>?\u00a0 There are many ways we can recalibrate store and company policies to help the consumer to be more conscientious.<\/p>\n

In the end, consumers will always aspire to having more.\u00a0 No recession has or will eradicate the fundamental human desire for an improved lifestyle.\u00a0 What has changed is how we go about acquiring the things that furnish that lifestyle.<\/p>\n

I expect that retail winners over the next number of years will not simply be those with the lowest price.\u00a0 The companies that rise to the top will be those that become trusted by consumers to help them do the right thing \u2013 the responsible thing, for everybody\u2019s sake.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Doug Stephens You\u2019ve likely seen the relentless stream of news articles and blogs lately touting the \u201cnew consumer mindset\u201d.\u00a0 Terms like \u201cpost-consumerism\u201d, \u201cbelt-tightening\u201d, \u201cfrugal chic\u201d [\u2026]<\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[15,25,31],"class_list":["post-1931","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-retail-marketing","tag-retail-sales","tag-retail-trends"],"yoast_head":"\n