Interesting post called "Retrenching: From Consuming To Saving" in the Engaging: Boomers feed from MediaPost. The focus of the article is on changes that have come to be with Boomers and their spending habits...
"In one of the most dramatic reversals in post-World War II history, Americans - who in recent years have had negative savings rate - are expected to flip those patterns," wrote O'Leary in Adweek, "with Goldman Sachs now saying the U.S. savings rate could be as high as ... 10% this year." "This is a tectonic, structural shift, a global realignment," according to Havas Media Lab's Umair Haque, who was quoted in the article. Dennis Jacobe, Gallup chief economist noted that "a fundamental change is taking place."
"The last cataclysmic event was 9/11 ... It was patriotic to get out and shop," according to global client services director, JWT New York's Alison Burns. "This downfall is of our own making - greed, mismanagement and all sorts of things much closer to home. Now it's not patriotic to go shopping. It's all about being prudent, back to basics, valuing the things we have more highly."
Question is, will this shift be of long duration or not? And what does it mean for consumer product companies? When spending is cut, so is production, new product roll-outs and potential product innovations.
As boomers who are closer to retirement cut back on their spending, perhaps for good, will younger demographic groups who are accustomed to being "ever more acquisitive in a world of instant gratification and easy credit" as the article aptly states - change their spending habits? And if they don't, will their spending be enough to offset boomer cut-backs in the larger economy? These are very important questions. "
How can you impact spending with your audience? Is it value propositions or forcing a shortening of the buying cycle by offers that are too good to pass up? In today's economy it is whatever it will take for the consumer to buy, help you clients find out what that is.