Crack the Crunch with the Crunch Breaker
Another post recession trend; Monday to Friday lodgers.
December 20th, 2009
It started when a friend told me down the pub about a great way to earn some extra income without a big hassle. She had taken on a lodger.
So, what’s so different about that, you may ask?
This is a ‘Monday to Friday’ lodger, who only stays with you during the working week. So the weekends revert back to normal.
My interest was tweaked.
Monday to Friday (www.mondaytofriday.com) have been going for a while, but have come into their own during this recession. And it makes sense all round.
Many professionals work in London from other parts of the UK and beyond but can’t afford (or don’t want) to rent a flat for the full month. Plus there are many employees who have to pay for expensive hotels each week for consultants to work in the capital.
Monday to Friday theoretically makes sense.
So I took the plunge.
We now have a Monday to Friday lodger who’s from Dublin but has to be in London each week. She spends 3 nights a week with us – her company are ‘over the moon’ because we are much cheaper than a hotel and our lodger has her own room and bathroom and tells us it’s ‘home from home’.
Monday to Friday are on a growth surge and so they should. Like ZipCar, it’s a simple idea that makes sense.
Another successful post recession trend.
Gosh! Strawberry bonbons! It’s like the tuck shop all over again…
November 5th, 2009
Childhood.
My prep school was a Harry Potter-type place – it was great fun. It was a boarding school in the depths of Yorkshire where I was sent for months on end.
At the age of 8, my parents took me up to London to Kings Cross station at the beginning of each term to catch the school train. Grey shorts, shirt and tie with flannel jacket, with a cap on my head – trunk and tuck box in tow.
We caused havoc all the way to Yorkshire on our ‘Hogwarts Express’, throwing fireworks out of the window as we passed each station.
And my parents thought they were giving us the best education possible…. I loved it!
On a Sunday afternoon we were allowed down to the tuck shop where big jars of sweets were stacked along shelves. Sherbet dib dabs, strawberry bonbons, chocolate mice, sheets of toffee and home made fudge, each weighed out and put into little paper bags as we spent our precious pocket money. This was Billy Bunter stuff.
And it’s back! It seems that the recession has prompted a fit of nostalgia in old fashioned tuck-shop treats.
The downturn has fuelled a demand in comfort foods (Tesco report a 200% rise in demand for sirloin steak). M+S has reported a 350% surge in demand for sugary confectionary – wine gums, fizzy cola bottles and rhubarb creams are now all the rage.
The demise of Woolworths ‘pick and mix’ in the UK plus the recession has led to a 9% growth in the sector, set to be worth £2bn in 2010.
So get down to M+S or House of Fraser for your tuck!
But don’t buy liquorice. Liquorice was for losers.
Half of Brits feel no worse off one year into the recession. And London leads the way.
September 16th, 2009
Almost half of British consumers think they are financially no worse off than this time last year, according to a recent study.
45% of the 5000 consumers surveyed say that their financial situation is the same or better than it was 12 months ago. Despite the national and international gloom and despondency, a surprising 15% actually believed they were better off.
London leads the way too – despite a cull of jobs across the City (the financial district), London tops the league table with almost a fifth (19%) claiming they are a lot or a little better off than this time last year.
Men are generally doing better than women, and younger groups faring the best – only 1% of 55-64 year olds said they were feeling better off during the recession.
The research, from TNS, also sees a significant proportion of the population who see the recession as an opportunity rather than simply as a threat, with many resolutely determined to fight the challenge head on. These people are likely to see the current climate as an opportunity to profit from the situation – buy property at knock-down prices, take advantage of low interest rates to borrow more or look for great for the best discounts to find the best bargains out there.
There is a significant group out there who are in employment, who have seen their mortgage repayments drop due to lower interest rates, who are bombarded with the latest discounts and special offers from retailers and restaurants; even some major car brands are offering unbelievable deals.
Everywhere you look there’s a special deal to be had. If there isn’t – just ask! (I tried this last week, asking if I could have any more discount if I paid cash. There result was a 25% discount!).
From the ‘Credit Crunch Lunch’ to the ‘2 for 1’ specials on offer in almost every category. Such as Orange, my mobile phone provider, who offer me a ‘2 for 1′ at my local cinema AND a ‘2 for 1′ at the adjacent pizza restaurant each Wednesday night. It’s now even called ‘Orange Wednesday’.
I even subscribed to vouchercodes.co.uk and now get a weekly email telling me where the best deals are to be found.
Will we be able to stop doing this after the recession? My guess is that we will expect more of the same.
Consumer recession strategies – will these become post recession trends?
September 11th, 2009
TNS, the research giant now owned by WPP, has come out with a study that makes very interesting reading. The study indentifies six core recession strategies used by consumers. Will these become post-recession trends after the current downturn?
Firstly, not everyone is suffering in this recession. There is no universal response.
Secondly, consumers are driven by far more than rational needs.
We’ve all become used to so many brands offering us generic recession response: everyone is suffering so it makes sense to focus on price and product and offer us all a better deal. But is it working and is it good for the brand?
TNS have come up with six core strategies used by consumers:
1. Fight and Exploit – you’re looking for something extremely cheap that allows you to exploit the recession rather than fall victim to it. If you can beat the odds by taking advantage of a ‘50% off’ you feel you have got one over on the situation.
2. Compete and Win – you’re looking for enduring value. You are looking for quality of course, so it’s not about the deals but something that’s going to last over time.
3. Strategise and Plan – you want to make a smart choice and so take a long term focus; the initial cost may be lower but the longer-term value is higher.
4. Retreat and Defend – you have to see it as saving money; you like to feel the company is sacrificing something so even small discounts are OK; and you want your loyalty rewarded with discounts.
5. Collaborate and Accept – you’re not going to buy it just because it’s cheap; you’re happy to get a discount on something that really demonstrates its practical value.
6. Avoid and Indulge – you’re looking for something for nothing; it might be the chance to win something or just a fun experience; as long a s it gives you the opportunity to indulge.
The research found that individual consumers can embrace different strategies, embracing several responses across different categories. It’s possible to Strategise and Plan when it’s time to replace a car, perhaps being wary of ‘deals’. The same person might want to Avoid and Indulge when buying a mobile phone, opting for a price plan that allows then to call their ‘mates’ as often as they like, Yet with weekly food shopping the Collaborate and Accept strategy might emerge, with a tendency to make small cutbacks across the range.
Consumers adopting a Fight and Exploit approach will respond well to a ‘Rebel Brand’ enabling them to make the most out of a recession. Virgin has had a good recession because it’s a Rebel Brand, appealing to those who are prepared to take advantage of good deals.
Strong brands understand the language of archetypes. Finding and working with the right archetypes lets you connect emotionally with your customers and provides a powerful platform for brand building.
The Breaking of Generation Y. The post recession landscape.
September 3rd, 2009
“My parents told me to save. They also told me not to go to bed with a guy on a first date and not to pop E’s. I ignored all of it”…… (woman, 28, California)
The credit crunch has squeezed the incomes of the retired. It has forced those in their 50’s and 60’s to delay retiring by years.
But the biggest impact of the credit crunch is likely to be amongst people in the 25 to 35 age group.
• This was the generation who bought housing at the top of the market in 2006-2007, and who have seen the biggest collapse in their home’s value. Having only saved for a small deposit, or taking out a 100% or even a 125% mortgage, they are now holding nothing but negative equity.
• This was the generation of easy credit, who discovered that a credit card was better than cash, because if you played it right, you never had to pay the money back. NOW IT’S PAYBACK TIME.
• This is a generation who never learned to save and therefore don’t have a cushion of money to fall on. Older adults always try to have an ‘emergency fund’ of £20,000 / Euros / Dollars to fall back on in hard times. Young adults never saw the point of saving. NOW IT’S TOO LATE.
• Younger business leaders have never seen how banks operate – offering long credit lines in the good times and withdrawing it when it gets tough. Many are in shock with what is happening to their businesses.
Recessions impact younger consumers hard because they cannot believe how easy it is to lose all their money.
Innovation of the year! Is this a post recession trend?
August 24th, 2009
It all started when I was handed a flyer when rushing for the Tube (subway, metro) near to where I live in West London. Some guys were strategically standing in my path (the same way as ‘chuggers’ do) giving out flyers. My first reaction was, as always, to avoid them and (in a very London way) to keep my eyes down, avoid any eye contact whatsover and get to the Tube by the shortest possible route.
I could’t avoid the flyer though and just pushed it in my pocket. I short while later, when looking for something else, I found the (offending) flyer. Zipcar.
Hmmm.
Later that evening I rushed past the same guys still handing out flyers, again doing my best at avoiding them and making eye contact. On my walk home I passed a smart VW Golf with a small sign next to it which said simply ‘ZipCars live here’.
My interest was tweaked, so I got online to find out more.
Well, the net result is that I no longer have my gleaming Beamer but have chosen to use ZipCar instead. It’s brilliant. And I am sure that this recession will lead to a lot more people doing the same as me. I save a fortune AND I become a carbon footprint saint….
Just think – you find a car very near to where you live using the Zipcar website, access the car using a credit card type devise, find the key, use it by the hour, day or longer and just return it to where you left it. No insurance, no lease, no congestion charge to pay, no tax disc or residents permit. No searching for a parking space late at night. AND just think of the environment!
So when I realised how much I was paying for NOT using my car, ZipCar made complete sense.
I think it’s a great innovation that can only be a winner – in fact everyone seems to win. Obviously it’s of no use to someone living out in the country or miles from anywhere, but for city dweller it’s perfect.
I see this as a very real post recession trend. I wonder if it’s taking off elsewhere. It deserves to.
Us Brits lose our appetite for eating out
July 27th, 2009
I love looking at trends and other pieces of information – I’m a real junkie for this in a nerdy sort of way, ever more so during this rollercoaster time we’re in. So when I saw an article in the Times recently on changing eating habits, my interest was tweaked.
I guess I’m a fairly good example of someone who lives a reasonably affluent lifestyle in West London. Nothing over the top (I can assure you), but I do enjoy a bit of retail therapy, have the occassional overseas holiday and eat out 2-3 times a week. Well that’s what I did anyway.
For some reason I’ve changed my habits and I am not on my own. This recession has affected people in different ways – some have lost their jobs, others have had salaries cut, whilst all of us have had to change the way we live.
Some of us have flocked to retailers where we would never have dreamed of entering before. In 2007 in Germany for example, the more affluent German shoppers wouldn’t be seen dead in Aldi or Lidl, but now they see it as ‘chic’ to show off their austerity by using Lidl shopping bags to carry their Prada purchase.
But the trends for change in this recession have been most marked in the way we eat out. Certainly in the UK, and especially in London, eating out has become a way of life, and has been one of the big success stories over the past four decades. But this recession has brought the phenomenal growth in informal eating to an abrupt halt. Research published by Allegra Strategies has shown that UK spending on infornal eating – typically where a meal costs £20 ($30) or less has fallen for the first time in 40 years.
The research has shown that in the UK, 15,000 jobs have been lost in this sector and they continue to drop. The report says that the trend is supported by a huge array of offers from supermarkets such as ‘feed your family for a fiver’ or ‘dine in for a £10′ currently being promoted by Sainsburys and Marks + Spencers.
The report says that people are cutting back in all areas – from sacrificing a morning coffee to visiting restaurants less frequently – establishments that typically charge around £20 have been hardest hit. These include the Chinese ‘ethnic’ category as well as Indian establishments.
The report concludes that restaurants will have to become more consumer-focused as customers won’t forget what they have learnt in the recession. Eating oout may have become an everyday experience in the good times, but post-recession people won’t pay over the odds for a meal.
People may still continue to eat out but the overall value of the meal will no doubt decline – instead of buying fish and chips, peope will perhaps buy sausage and chips at half the price. Prices are definitley down across the board.
Trend predictions for the post recession landscape
June 23rd, 2009
I had to share some thoughts and comments that came up recently in a meeting on future trends – in particular in relation to what the social landscape may look like once we come out of this recession.
Sure – some is a bit tongue-in-cheek but there are some interesting nuggets too. So here is what I found out;
When an expansion turns to bust, the fashions, attitudes and styles that accompanied the good times suddenly start to seem out of date. Consciously or subconsciously people start to dump them to reflect the newer, more sombre mood.
The crash of 1929 put an end to flappers and the minidress, replacing them with a decade of decadence and Jazz.
The recessions of 1973-75 marked an end to the hippy era, to be replaced by Punk and skinheads.
The recession of the early 1980’s and 90’s didn’t just kill off the steel and shipbuilding industries – it killed off disco and big hair.
So what for the 2007-2009 post recession phase?
- ANGRY BECOMES THE NEW MOOD. Expect the Emo youth trend to become something angrier and darker.
- AGEING FASHIONS DIE. Expect noughties fashions to become rapidly unfashionable as women continue to wear them into their 30’s and 40’s. Low rise jeans can’t be that sexy if your Mum wears them too…
- UNEMPLOYMENT BECOMES COOL. Being out of work loses its stigma and becomes a mainstream lifestyle among the young. In the 1980’s recession cool bands such as UB40 became ‘de rigeur’. (a UB40 is a UK government unemployment form for those of you not familiar with the UK).
VIVA LA REVOLUCION. The recession of 1990 saw the collapse of communism in Central and Eastern Europe and the end of socialism as a standard philosophy in Western Europe. This time round recession is a direct result of a major failure of capitalism.
Expect radical socialist and extreme beliefs to make a comeback amongst young people.
- A NEW GENERATION GAP. By 2010 expect youth to be in revolt over what they see as capitalisitic greed of older generations born in the 1970’s and 1980’s. Expect a new gap to open up between those who tasted the riches of capitalism between 1993 and 2007 and those who have to look for their first job in 2009 or later.
Lost money on your house? Serves you right you filthy fascist speculator pig…..
- GREEN ISSUES GO ON HOLD. Green was a major issue in the 1980, and Germany in particular was concerned about the effect of acid rain and its effect on its forests. The recession of 1990 ended all that as consumers focussed on protecting their income and families.
Expect the environment to take a back seat for a year or two, despite Obama’s endeavours.
- INTO THE NEW DECADE. Expect the noughties mood to crystallise as the decade disappears over the next year, and for people to become increasingly nostalgic for the time when wearing white earbud headphones was trendy, and people had money, credit and prospects.
WE OFTEN ONLY RECOGNISE A ZEITGEIST AS IT PASSES