Reading the headlines, it is easy to despair that we will ever survive 2009. Recent local research from JWT Philippines suggests that the average Pinoy sentiment has moved from indifference about the country’s perpetual crisis to deep concern. Many know of at least one person who has lost, or could lose their livelihood.
Blending the latest JWT Trendletter with local research, JWT Philippines’ Executive Planning Director Pam Garcia shares tips on how brands can stay remain relevant to consumers in economic jitters:
Trend 1. RECESSIONARY LIVING.
Consumers are cutting back, trading down, choosing quality over quantity. Expect an uptick in home entertaining and DIY. More brand decisions will cross categories; competing not only with similar items, but with anything else that aims for your consumer’s time or money. Locally, adversity begets creativity, as consumers scrimp and stretch, maximizing dosage and extending usage (i.e. baby oil as gel for dad, moisturizer for mom as well as for baby). They will prioritize their children’s needs over their own, or find ways to satisfy the whole family with each spend.
TIP: With consumers looking at value for money over any other attribute, position your product to show “ critical proof of value” at every purchase.
Trend 2. SIMPLE PLEASURES
Consumers will find new ways to enjoy what they have, what they can truly afford. Splurging on treats will give way to simple pleasures: outdoor markets rather than glossy malls, small cost/big-impact purchases like lipstick rather than expensive shoes. Locally, consumers are (literally) counting their blessings: mixing and matching clothes, choosing small indulgences like food, turning the once-ordinary weekend movie into a treat (vs. waiting for the DVD and watching at home).
TIP: Work out your product’s price-pleasure ratio. Offer the most pleasure through the product — or enhance its surrounding experience — at the most affordable cost.
Trend 3. THE ENERGY RACE
While lower oil prices and urgent economic concerns have taken some of the spot-light from energy, consumers have already committed to saving fuel. Globally, brands like Google, Shell and BP are looking into alternative energy; locally, consumers now know they must conserve regardless of gas prices. From timing aircon usage to sharing rides to teaching their kids to turn off lights, Filipinos have internalized the need to use the planet’s resources as wisely as possible.
TIP – Look for opportunities to align your brand with resource-saving ideas.
Trend 4 – THE SMALL MOVEMENT.
Everything is shrinking, from stores and fastfood outlets to cars to gadgets to packaged goods (and buying power – Ed.). Detergent, coffee and many products now come in concentrated forms. Locally, Filipinos practically invented “sachet” and megadose retailing. Similarly, “small” can take the form of consumers wanting more compact and more portable but equally powerful products.
TIP – Look for ideas in your brand that can demonstrate small = powerful.
Trend 5 – THE MOBILE DEVICE AS EVERYTHING HUB
As wireless broadband and the phones to use it become more affordable, the mobile device becomes the preferred activity hub. (In developing markets like China, the phone becomes the first PC.) Locally, the phone as the Pinoy’s “everything” hub is relative. For some it is simply texting; for a call center employee, it is his entertain-ment center and web access on his two-hour commute. Another young father uses his phone’s music player as a social hub — his ‘party anywhere’ device to turn any gathering into an event.
TIP: Diverse forms of mobile marketing will become imperative for brands to connect to diverse consumer markets.
Trend 6 – CAREER REINVENTION & EXTENSION
More people will find themselves facing a career break (a.k.a. being laid off), and many will question returning to the same line of work—either because it wasn’t fulfilling in the first place or because more lucrative opportunities now lie elsewhere. Some will shift to ‘more demand but less risk’ jobs like education, government or medicine. Locally, sites and content have sprung up to help the Pinoy with options in case of a lay-off. Consumers cite the following as good back-up businesses: food, communication (phone cards and load), repairs, lending, internet cafes, online training, delivery and transport.
TIP – Look at how your brand’s core offerings can help consumers through the turmoil of life and career changes. Likewise, consumers need a “Plan B” for income generation, and to be ready for anything.
Trend 7 – DISTRACTION AS ENTERTAINMENT
Faced with multitasking at any age, content creators are turning what could be a negative (distraction) into a positive (an ‘all-around’ experience). By layering different media in one experience, they create content designed to engage on many levels (example, authors suggesting playlists to accompany their books). This is not just a high-tech trend; locally, Nestle’s Chuckie chocolate milk gets kid appeal with a box that becomes a toy in itself, but also contains a password to a online game. It is a good start at simultaneously engaging kids in three platforms: in-store, experience media and digital.
TIP – Introduce entertain-ment with your products, as an opportunity to simul-taneously engage customers on multiple platforms.
Trend 8 – AUTHENTICITY MATTERS.
Burned by crisis, consumers now demand transparency, from their President to their products. Likewise, the melamine scare has made even value shoppers conscious of where their purchases come from. Authenticity can come from experience as well as origin. Locally, Red Horse Beer’s Muziklaban rock concerts allow users to experience strong beer in a raw rock experience.
TIP – Play up your brand’s authenticity through genuine consumer experiences, or hype up your origin as consumers demand accountability and reliability.
Trend 9 – REDISTRIBUTION OF POWER.
The coming years will see a widespread shift of power in almost every major sphere: economic, social and political (between the once-rich West and newly-rising Asia, for example). Locally, consumers cite the power of the young and females in politics. On the micro level, watch for a redistribution of brand decision-making (i.e. more men doing grocery shopping, cooking and laundry) as more women become breadwinners.
TIP– Look at new markets for your product, such as targeting male consumers for products that are originally targeted for the female market.
Trend 10 – THE COLLECTIVE CONSCIOUSNESS
With the increasing ubiquity of online technologies and a new global mindset, people are thinking less about “me” and more about what “we” can do. Locally, the study found a large portion of the below 30s and single below-40’s joining “small causes”, via simple donation programs or sites like Handsonmanila.com.
TIP: How can your brand or its properties make a difference in the community?
