Posts Tagged ‘Business’

A head-spinning 24 hours in the life of a bike and our consumer culture

Translating its signature design into a special line for Target, Missoni no sooner launched than it caused a stampede in-store and a crash online. Never has one day in the life of a bike (and clothes, luggage, and home goods) said so much about the consumer psyche.

Not only did the $399.99 Missoni special edition bikes sell out at Target – before the day was out, they were already showing up on eBay for $1500.

One lucky buyer who managed to score some merchandise, planned to keep her acquisitions for herself until she noticed the Ebay factor.  “Once I saw the high upsale, I said, you know what, I don’t need it that badly,” she said. (source: CNN Money).

What does all this say about the American consumer?

• The thrill of thrift is alive, and here to stay

52% of adults say that “thrifty” describes them very well/perfectly (2011)
42% said they were “thrifty” in 2005, the first year it was surveyed

• The real thrill happens when we get a great price – and “the best”… (or whatever we perceive to be the best or most wanted)

61% say, “When I buy anything, I always do my homework and am very careful to be sure I get the best I can get” (DYG SCAN® 2011)

And… consumers around the country are telling us they wouldn’t mind having a little delight in their buying experiences while they’re at it.  Design can be that extra element of positive surprise (think Apple…and now Target/Missoni).

But beware The Big Reversal…the practical takes precedence over the want

Like the Target consumer who decided she “didn’t need it that badly” and took the eBay profit, most Americans now look at costs and risks before allowing themselves to want.  And that is The Big Reversal from our free-spending days.

Business Implications: In our current climate of The Big Reversal, it isn’t enough simply to create want for our brands and products.  Now marketers have to remove constraints and risks and give consumers “permission to want” – one more big step on the way to consumer spending.