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THE CASSANDRA REPORT 1.09
The Intelligence Group is a market research and trend consulting firm focused on understanding consumer culture and translating that to actionable insights. We are passionate about consumers. We immerse ourselves in their lives, their environments, their concerns, and their desires. Through a variety of proprietary tools, we stay ahead of emerging attitudes and trends, using this information to generate fresh ideas, relevant strategies, and actionable plans. We do not simply study consumer culture—we build creative solutions for our clients.
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IG is about intelligence, insights and innovation. The Intelligence Group is the foremost expert on Gen X, Gen Y, and consumer culture, and offers a full range of research, consulting and trend forecasting services. Our in-depth understanding of the consumer allows us to apply our knowledge to a variety of businesses and product categories. Our clients represent a wide range of industries, including entertainment, technology, packaged goods, fashion, retail, and non-profit organizations. Youth Intelligence, our best known division, is the premier research and consulting group focused on Gen X and Gen Y (ages 14 to 39). Having studied these generations for more than a decade, we’ve gained a deeper understanding of how their behaviors and attitudes have changed over time. In addition, The Intelligence Group is well versed in specific niches including Tweens, new parents, Latino culture, and global trends. We offer three related business services that enable clients to develop a thorough understanding of consumer culture: Consumer Intelligence, Trend Intelligence, and Consulting Intelligence. Each approach builds upon the others, providing us with a more complete picture of consumer opinions, attitudes, and behaviors. Within each business category, we offer several proprietary services that can be applied to various age segments, life stages, and cultural groups.
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The Cassandra Report 1.09 The Future Issue
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WELCOME TO THE FUTURE ISSUE OF THE CASSANDRA REPORT! November 4, 2008 will forever remain one of the most important dates in the lives of Generation Y. While there has been endless chatter over the past several years about the collective power of the generation, never before had they seen such a tangible result of their banding together as with the election of Barack Obama as the 44th President of the United States. Gen Ys played a tremendous role in the campaign, making it the ultimate “WEvolution” of their lifetime. But while they are notably optimistic about America’s future, they, along with the rest of the country, are also still grappling with the most devastating financial crisis since the Great Depression. Hoping for the best, they are dealing with the worst, and as a result, are re-evaluating not only their spending habits but also their outlook on life in general. In this issue of Cassandra, we cast our macro trend lens specifically onto this new era and predict a new Current¢y emerging where money isn’t exchanged for goods and services; a Cool Americana movement for the nation; a new escapist trend, called The Great Escape, that captures the mood of the times; and how Xers and Ys will need to rebuild and transform who they are due to the Identity Theft they have recently experienced. We’ve also highlighted the Future Trends you need to know about, and our Recession Special section gives you an in-depth look into how young people are feeling and spending in this Great Recession, with opportunities and insights for brands. This is a scary, as well as exciting, time for marketers right now, and we hope this issue provides some future insight, inspiration, and hope for the coming year!
Happy New Year! The Intelligence Group
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The Intelligence Group is a market research, trend analysis, and consulting firm focused on understanding consumer culture and translating that knowledge into actionable insights for our clients. In addition to The Cassandra Report, The Intelligence Group offers a wide range of syndicated studies and proprietary services, which are detailed below. If you are interested in learning more about specific reports and services, please contact Elizabeth Gray at egray@intelg.com. OUR REPORTS
Latino Intelligence: Latino Intelligence is our yearly syndicated study of Latino youth, ages 14 to 24. The study includes Latino youth trends, statistics and insights. The study is based on an online survey of 1,000 young Latinos in the top Latino markets. The sample is recruited for age and gender balance, and interviews are conducted in the language of the participant’s choice. In addition, focus groups and individual in-person interviews are held in New York, Los Angeles, Miami, and Houston.
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OUR SERVICES
Consumer Intelligence: The Intelligence Group is constantly connecting with consumers. In an average year, we conduct over 500 focus groups and talk with more than 5,000 diverse individuals. While we do use traditional techniques and settings for these exchanges, we also excel at interacting with consumers in their own worlds. It’s in the coffee houses, at the music festivals, on the streets, and in the comfort of their own homes that we are able to extract the most honest, trueto-life opinions and reactions from respondents. Some of our Consumer Intelligence services include focus groups, ethnographies, intelligence panels, store tours, custom blogs, and quantitative studies. Brand Intelligence: The Intelligence Group expands upon and customizes the knowledge gained from the Consumer Intelligence and Trend Intelligence divisions to create innovative strategies for building and strengthening brand identities. We work with clients on projects such as brand consulting, new product development, brand
audits, brainstorming sessions, and promotional strategies. Our Brand Intelligence consulting services are dynamic, insightful, and result-driven. Trend Intelligence: The Intelligence Group works with an extensive, hand-recruited network of trendsetters and industry insiders to stay on top of emerging trends. We keep tabs on the latest movements in entertainment, technology, fashion, marketing, consumer products, and attitudes. Most importantly, we contextualize these trends and explain their significance. Through our extensive experience in identifying and analyzing trends, we have the concrete knowledge of how trends develop and evolve. This knowledge is crucial in forecasting emerging trends across diverse industry sectors. Trend Intelligence services include insider and trendsetter panels, trend presentations, product seeding, and Trend School.
Don’t forget to sign up for our free, daily trend newsletter, trendcentral®! trendcentral® is our Internet-based resource for daily trend information, covering all aspects of youth culture, including entertainment, fashion, lifestyle, technology, hot spots and “our picks.” Our daily trendcentral® emails provide up-tothe-minute commentary on anything new and noteworthy and all reported trends are archived on trendcentral.com. It’s comprehensive, timely, and filtered to make the task of staying on top of trends effortless and interesting.
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Tween Intelligence: Tween Intelligence is our yearly syndicated study of 7- to 13-year-olds. The study covers tween trends, statistics and insights. The study is based on an online survey of 600 tweens. The breakout of ages and ethnicities reflects a nationally representative sample of the US population. In addition, focus groups and individual, in-person interviews are held with tweens, tween parents, tween teachers, and tween community leaders in four US cities.
Mom Intelligence: Mom Intelligence is our yearly syndicated study of new mom trends, purchasing habits and brand preferences. The study, which includes over 100 pages of mom statistics, trends, and insights, is conducted via a nationally representative online survey of 1,000 new mothers (ages 18 to 40) with children ages 0 to 13. In addition, focus groups and individual, in-person interviews are held in three U.S. cities.
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Cool Americana Current¢y IDentity Theft The Great Escape Future Trends
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The Great Recession Recession Impact
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Spending Downgraded Products Spending Behavior What Is More Important To You Now? Thoughts On The Economy And Spending Changed Spending Habits Used Goods Changes In Time Spent
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Hot Trends Hot Activities Hot Tech Hot Eco Hot Marketing Hot Fashion International: On Obama
Celebrity You Most Want To Be Role Models TV Show You Would Most Like To Live In Which Would You Rather Do/Have?
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Web Trends Online Destinations Social Networking Online Versions Never Leave Home Without What’s In Your Bag? Favorite Website Websites To Check Out
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Marketing Trends Favorite Print Ad Favorite TV Commercial Favorite Luxury Brand Brand You Would Most Likely Wear on a T-Shirt Brand You Feel Good About Supporting
Food and Beverage Trends Favorite Beverage Brand Favorite Alcohol Brand Health and Beauty Trends Favorite Skin Care Brand Favorite Hair Care Brand
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Fashion Trends Favorite Jeans Brand Favorite Clothing Brand Favorite Sneaker Brand Ones To Watch: Fashion Retail Trends Favorite Clothing Store Favorite Non-Clothing Store Ones To Watch: Retail
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TV Trends Favorite TV Show Favorite New TV Show
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Favorite TV Network Ones To Watch: TV Shows Favorite Actor Favorite New Actor Favorite Actress Favorite New Actress Music Trends Favorite New Music Artist Ones To Watch: Music Discovering New Music Artists Favorite Magazine Sports Trends Favorite Athlete Favorite Sport/Exercise Video Game Trends Favorite Video Game
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Issues Future Outlook Future Hopes and Dreams Future Issues Environmentally Conscious Lifestyle 2009 Resolutions Seven Deadly Sins
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Trendsetters The trendsetter portion of the report is based on a carefully selected subset of the general population. Our trendsetters are hand-picked, based on their progressive and experimental attitudes and a forward thinking approach to life. The screening process relies on IG’s proprietary methodology, developed to eliminate ambiguity. We pick trendsetters based on their behavior, not appearance. A written survey was distributed to 350 trendsetters ages 14 to 34 in New York City, Los Angeles, Chicago, Atlanta, Austin, Detroit, Miami, Minneapolis, Portland, Salt Lake City, San Francisco, and Seattle. The approximate ethnic representation of survey respondents is as follows: 60% Caucasian 15% Hispanic 15% Black 10% Asian/Other
Mainstream The mainstream portion of the report was derived from an online sample. A total of 900 interviews were conducted online with respondents ages 14 to 34. The ethnic and geographic representation of each survey reflects a nationally representative sample of the US population. The study was fielded from September 18, 2008 to October 3, 2008.
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Future Themes
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Cool Americana
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The Internet has facilitated the interactions of eager swappers at a ripe time. Shopping and overspending are now gauche, and the act of repurposing belongings has more appeal than ever. While we have long been a nation of hoarders and excessive consumers, we now face a surfeit of
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possessions and a deficit in funds. The Great Recession has made the unexplored corners of our storage spaces the new boutiques. Swapping sites are gaining in number and popularity, and now everything from clothing to books, sports gear, makeup, homes, and experiences can be exchanged online
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e begun ng people hav u o y s a , ed g t¢y has emer losets, A new Curren and to their c ts n u o cc a k n nd their ba exploit looking beyo skill sets to r ei th en ev d ies, an n, many garages, pantr udgets tighte b s A . s g n i g n nts and belo onsumer existing Tale nsumer-to-c o c ed n o i h s old-fa aring, are reviving ghborhood sh ei n , g n i r te r a wapping, b ways. systems of s and exciting ew n n i s p o h s and pawn
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“My friends and I have recently started a small lecture series where we get together and have small, organized talks on specific subjects that one or another friend happens to have an expertise in. The subjects range from backyard agriculture to basic CSS coding, and everyone comes out with the beginning of a new skill or new knowledge. This is a kind of “knowledge swapping” that I’m really into.”
“Although I haven’t been able to take full advantage of the Craigslist “barter” section, I do my fairshare of regifting, remaking, reconstructing, and DIYing” —Robin, 33, SF “I like to skill swap whenever possible. I was a writing tutor in college, so sometimes I will help friends with their papers, resumés, or job-search cover letters in exchange for little favors like a ride to the airport, a little watercolor, or some help fixing my bike. My friend Flint is amazing with woodworking and DIY home repair, and he installs shelves and helps put up drywall in exchange for a bottle of Chardonnay and a nice dinner, things like that. I don’t know if that’s skill swapping as much as it is returning favors, but it’s a really good way to get to know people, incidentally, and a motivation to learn new skills.”
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—Claire, 24, Portland
—Sarah, 28, Atlanta
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between swappers around the world. A too-small coat can be traded for a “new” handbag, a neverused skateboard for a “new” blender, and so on. this new Current¢y is not just about collecting different possessions: With the environmental repercussions caused by overconsumption, a chief concern among young people, these rejuvenated exchange systems offer the added advantage of cutting down on production waste and extending products’ lifespan. Young people have also been telling us that swap meet-ups and soirees bring the budget-conscious together offline—to DIY fashion recycling conventions, food swaps, and neighborhood shares—where they discover their friends’ and neighbors’ bounties. These neighbor-to-neighbor methods have the benefit of offering face-toface interaction, an incredibly appealing prospect to a generation looking for a sense of community in their everyday lives. Though well accustomed to online communities, 71% of young people say that their local communities are more important to them [Cassandra Vital Stats Issue 5.08], and the act of exchange is one that can form bonds. Knowing the source of a new possession also gives it a back story and personal touch that the members of the REgeneration are always looking for.
NEW SKILLS With more Xers and Ys finding themselves out of a job, they’re not just looking to exchange possessions. For the unemployed and those on a tight budget, skills are now seen as tradable commodities as well. Spending a few hours designing a website in exchange for cooking lessons, or
neighborhood families trading babysitting time for yard work, are helpful solutions for those in need of services but who can’t deal with the usual price tags. We believe skill swapping will become a growing area, as more people look to their personal talent inventories with a critical eye.
PAWN SHOP MAKEOVER Also experiencing a resurgence is the go-to of the cash-poor, the pawn shop. Now seen in a different light, pawn shops are “the new banks”— they may even be chic. Pawn shop start-ups have risen this past year in the UK; apparently doing brisk business across the US, one shop in Chicago reported lines outside the door on opening day. Banks have lost consumers’ trust, and the pawn shop may seem just as viable an option for those in need of fast cash. New patrons include the oncewealthy who have more goods than bucks, as well as bargain hunters looking for luxury on a budget. The pawn shop metamorphosis could take the system into previously unthought-of creative territories. The temporary NYC art project PAWNSHOP accepted works by new artists deemed worthy in exchange for a loan. PAWNSHOP gave young artists the opportunity to get fast cash for their work and offered collectors easy access to a promising collection. We can see the pawn shop concept spreading to other creative areas in the future.
LOCAL CURRENCY Meanwhile, in towns across America, bartering systems are being built into local economies. Dozens of local currencies flourished during
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the Great Depression, and the idea remains attractive to those hit by today’s Great Recession. Local currencies allow would-be consumers to trade time and services with, and among, local businesses in exchange for goods. The idea behind a community currency is to support local businesses by creating an exchange system that will only have value close to home. Community currency systems that have run for years, such as Ithaca Hours and BerkShares, have recently reported a significant increase in calls from other states requesting start-up information. These systems keep economies local and encourage social bartering, as well as provide useful services to community members. Similarly, in Japan, where long-term care is an acute crisis, a national system established by the Sawayaka Welfare Foundation facilitates the exchange of care for the elderly among adult children who live too far from their parents in need. We expect these kinds of systems, in which larger problems can be solved by new currencies, to become more widespread.
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▬ Online swapping is a scene ripe with opportunity: Establish or sponsor a Current¢y site in your market to encourage loyalty to your brand, give users access to exclusive promotions that reward them for doing many trades ▬ As skills become commodities, marketers should consider unusual trading as a sales tool. Exchange goods or discounts for skills that your consumers can provide, as well as help your consumers hone the skills they have ▬ Use your overstock in a creative way by turning it into a temporary “Free Store” or by allowing loyal customers to exchange old purchases for new goods that would’ve been discarded anyway ▬ Offer specials for neighbors and friends making shared purchases ▬ Give deals to those buying multiple products to use in their communities
“I do have a love for Craigslist, not for product swapping but rather room swapping. Being that I have to move every three months, I often find myself on Craigslist searching for hours for a place to call home for a bit.” —Evan, 23, Cincinnati “I’ve been swapping skills/services in return for skills/services for a while now because it’s a great way to get things I can’t afford! I provide events consulting for a friend who is also my life coach. I help her with all of her marketing needs, along with planning events, and will even work with her on skills she doesn’t have time to learn—i.e.: Web 2.0 and computer applications. In return, I get my coaching sessions regularly. If I were to pay for these sessions, I wouldn’t be able to go as frequently because of the high cost.” —Jessie, 29, Austin
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Current¢y is about more than just the exchange of goods: For an economically challenged, community-seeking generation already concerned about waste, the new currencies are appealing non-monetary alternatives to consumption. Emphasizing renewed product life-spans and community relationships, Current¢y, to some extent, puts trade back into the hands of the consumers. Though the state of the economy may have pushed the renaissance, the REgeneration and community appeal of Current¢y will give it life far beyond The Great Recession.
▬ Help your consumers use what they have to get what they want: Set up promotional swap meets where they can trade past purchases—or maybe trade for something new as well
“I trade with my close friends a lot. One of my friends is a personal trainer, and she gives me training sessions every now and again in exchange for me helping her budget her finances, which I have become quite good at since learning to rid myself of material posessions. I hate money. It’s always been the bane of my existence. I am quite content to try and not spend money ever so I’m down to trade trade trade away whenever.” —Kenyeh, 30, Chicago
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Swapstyle bills itself as “guilt-free shopping” and allows user to connect and trade fashion with other members, for no cost.
Website oneredpaperclip tells the ongoing story of Kyle MacDonald, the blogger who traded one red paperclip until he (within 14 trades) received a house in Canada. MacDonald wrote a book about his experiences, and he and his wife are now trading the house for something else.
This new online marketplace enables you to quickly and discreetly trade in your unwanted valuables for cash. With ten days to decide whether you think Red Swan’s price is right, this site is the closest thing to an online pawn shop yet.
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Online skill swapping website teamuphere allows you to trade your talents and time with others, getting things done without ever spending a dime.
Real-world meet-up Swap-o-RamaRama is a series of DIY workshops which start with a huge pile of used clothing donated by the participants. After choosing new items from the pile, attendees can visit one of the many sewing stations or workshops set up around the room to rework the garment and make it one of a kind.
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In the UK, the Good Food Swap is an annual event organized by local food organization Growing Communities. There, hundreds of participants bring their homegrown and handmade goods, and no money is allowed to exchange hands.
In the UK, Edgefield’s The Pigs pub has recently begun trading free drinks for the homegrown (or hunted) products of its patrons. A sign in front of the pub says: “If you grow, breed, shoot or steal anything that may look at home on our menu, bring it in and let’s do a deal.”
Cosmetics of all sorts are exchanged on Swapmakeup.
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Smart Drugs Vertical Farming SAMPLE PAGES
Rewilding 3-DIY
Reactive Technology Freeconomy cross country Print Matters Daylighting Nano-Fashion MOODSWINGS Ubiquitous Networking VISUALEYES Cutting the Cord Culture of Prediction
Future trends
Future trends Smart Drugs
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As a society, we’ve consumed substances such as coffee, energy drinks, and over-the-counter caffeine pills to stay awake, concentrate, and focus for years. From pilots to truckers to students studying for finals, this is hardly an uncommon practice. In the past few years, though, drugs such as Ritalin and Modanfil, prescribed for ADHD and narcolepsy, respectively, have become quite popular with many a student, professor, and a variety of professionals who do not suffer from ADHD or sleep disorders. Dubbed “smart drugs,” these cognitive enhancers are used to sharpen focus, strengthen and increase memory, and boost alertness and brainpower. Smart drugs are the first in an era of cosmetic pharmacology, a category of pharmaceuticals that enhance mental, as opposed to physical, characteristics. The growing acceptance of smart drugs opens a virtual Pandora’s Box of moral and ethical issues: Does it give certain people an educational or professional advantage over others? Is it considered cheating? Will these drugs have serious, negative long-term effects? What constitutes a prescription? Will everyone have access? Supplying a more permanent, more powerful ability to focus, absorb, and remember content at a far more accelerated rate than that offered by previous over-the-counter solutions, smart drugs’ positives have pushed research and development forward. While some are already on the shelves, many are in the development stages, to be released in the coming years. And as they hit pharmacies around the world, one thing is clear: A “smarter” generation will be born.
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Providing a land-, water-, energy-, and ultimately cost-efficient production alternative to traditional farming, the practice of vertical farming, which utilizes a multistory or high-rise structure to grow produce, will be a growing trend. While it was conceived by Columbia University public health professor Dickson Despommier in 1999, only in the past few years has this high-tech, urban-agriculture concept gained practitioners and fans. Striking a chord among both consumers and industry types, vertical farming offers myriad benefits for concentrated urban populations that are hard to ignore; they provide efficient, sustainable, highvolume food production with little impact on the environment.
The basic concept consists of a city-center high rise, packed with multi-level indoor farms. A variety of indoor growing and production methods such as hydroponics, aeroponics, and composting are used year-round in conjunction with alternative energies—such as wind, solar, and raw sewage—to produce fruits, vegetables, fish, and livestock for booming urban populations. By eliminating the need for land in the traditional sense, these farm-scrapers would also eliminate the negatives that come with traditional horizontal farms: erosion, deforestation, and pollution through pesticides, fertilizers and farm machinery, as well as the negative environmental impact of packaging and transporting these goods from the farm to the table. While vertical farming is still just a concept—and one fraught with questions and criticism at that—the basic idea and possible benefits have garnered serious interest from developers and local governments from Portland, OR, to Abu Dhabi, UAE. At a time when practices that are local, sustainable, organic, energy efficient, and environmentally sound garner the most attention and support, vertical farming could soon be a reality.
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Future trends Musicovery
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TED Sphere
Presidential watch
VISUALEYES A new visual language communicates by using color, line, shape, placement and composition. Whether it’s the data visualization of social networks or political campaigns, this is truly a new way of presenting information. Marketers of the future will need to explore more visual ways to communicate their brands to consumers.
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Product Search
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Recession Special
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Recession Special 34
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Recession Special
Welcome to our Recession Update In the September '08 Cassandra Report, we featured a macro trend titled Recession Special, which highlighted consumers’ reaction to the declining economy. At that time consumers were just beginning to adjust their spending, embracing clipping coupons, and starting to seek out the best deals and discounts available. But in just a few months, the SAMPLE PAGES
situation has certainly changed dramatically. Consumers have begun depriving themselves of products and services that were, just months ago, considered “must haves.” Many are dramatically cutting back on shopping, making do with what they already have, re-selling things they don’t need, buying generic instead of brand name, and going out less often. While we’re hoping things will improve, our consumers are not that optimistic. Either way, The Intelligence Group will continue to keep you informed of evolving consumer attitudes and behavior during these uncertain economic times.
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THE GREAT RECESSION
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Recession Special We’re finding, both qualitatively and quantitatively, that the recession is affecting everyone’s consumption. More than half (58%) of the 14- to 34-year-olds we surveyed said they worry about money a lot, while 51% said the economy stresses them out and that they are only buying what they need, not what they want.
PESSIMISM
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Seventy-four percent of young people reported that the recession is personally impacting them; even those who haven’t yet taken a hit report related emotional duress. Unfortunately, 52% believe that economic conditions are going to worsen for themselves and their families, and 59% fear the economy will deteriorate before improving. This grim outlook on the future is compelling many to dramatically change any extravagant spending habits.
BUDGET CUTS Among the consumers we surveyed, the majority are spending less in all categories, with dining out (60%), travel (60%), electronics (59%), and fashion (58%) the areas hurt most. Many are not only decreasing in frequency of consumption, but also the amount they’re spending; the top four impacted areas were food (53%), clothing (34%), hair care (33%), and coffee (30%).
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EXPERIENCE ECONOMY For the past several years, our research has shown that young consumers increasingly value experiences over material goods. As the recession has necessitated a decrease in the consumption of physical objects, even greater value has been placed on experiences, with 82% of respondents saying they would rather create memorable experiences than own the newest gadgets/fashion.
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VALUE BEATS CONVENIENCE While convenience may have once been a top priority for consumers, they’re now willing to put a little more effort into their purchasing strategies if it means saving money in the long run. Eighty-eight percent said they would prefer to spend more time to find the products they want if it meant getting a low price, versus just 12% who said they’d rather spend less time even if it meant spending more money.
DIY As consumers shift from an “I want” to an “I need” economy, coupled with the anti-consumption green movement, many are looking at the possessions they already own with a new eye. Sixty percent said they would rather recreate things they already own than buy new things. Similarly, 25% said they are selling more used goods on sites such as eBay and Craigslist than they were in the past three months, with 24% also reporting that they are buying more of such goods. Many are also cutting luxuries such as restaurants and salon visits, with 56% reporting they are cooking more at home and 35% reporting they are doing manicures and pedicures at home.
Homebodies Although consumers rely on entertainment as escapism during difficult times, most are consuming this in the (cheap) comfort of their own homes. Fifty-five percent reported watching more movies at home now vs. three months ago; 51% reported watching more TV; and 51% reported spending more time on activities/hobbies at home. On the following pages we take a look at how the economic crisis is affecting consumers in various categories and what you can expect to see as a result.
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Recession Special
From relationships and education to consumption and transportation, the economic recession is having a notable impact on more than just spending.
LIFESTYLE ▬ Those in troubled relationships/mar-
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riages may have to put off separation. Aside from the fact that divorce is expensive, living together is more economical than living alone
▬ Parents of small children are sacrific-
ing their own personal luxuries, big to small, to put their offspring first. As much as they can, parents are working to spare their children the worst of the recession
▬ College- and graduate school-bound students are having to rethink plans, as scholarship money and loans become scarcer. As a cheaper alternative to US schools, some are even going abroad for more affordable higher education
the flipside, we’ve even heard reports of people who’ve lost their homes forced to move in with their more well-off adult children
▬ The overall decrease in consumption will
allow the green movement to flourish; perhaps consumers will realize they didn’t “need” to have so much to begin with and will incorporate the “RE” mantras—reuse, reduce, recycle, remake—into their everyday lives permanently even after the recession is over
▬ With up and down fuel costs, young people are both carpool-
ing and staying in more. Many have also looked into alternative forms of transportation. Bike sales have skyrocketed, and bikes will continue to be the cool mode of commuting in cities as it’s both economical and beneficial to the environment.
▬ While lucky Ys who lack “adult” financial responsibilities (mortgages, children, etc.) and who haven’t lost their jobs aren’t necessarily feeling the crunch yet, qualitatively they are cutting back on spending as a precaution
▬ A new “boomerang effect” has been spawned,
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with many young people who’ve lost their jobs moving back in with their parents. On
“Neither my parents nor I are as quick to spend money on less important things. I get a fixed allowance from my parents each month and I am responsible for managing how I spend it. I am more inclined to stay home and hang with friends, than go out and spend money on dinner or other things. I also have tried to cut back on the amount of driving I do, since I have to pay for my own gas. Still, I try not to let the sad state of our nation get to me too much so I also have been trying to be more outgoing and social. Even though it seems like we're in for a long rough economic journey, I hope that this will be worked out sooner rather than later.” —Gaby, 16, Denver
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Recession Special
Target “Brand New Day” Commercial: Recognizing
the hardships their consumers are facing, Target created an optimistic TV spot presenting fun budget alternatives, using products sold at the store. A bike was shown as “the new commute;” an exercise ball was shown as “the new gym;” a couple watching a DVD at home on the couch was shown as “the new movie night;” a dad clipping his sons’ hair on the front porch was shown as “the new barber shop;” and so on.
Jones New York Style Miles: We’re constantly hear-
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Starbucks Gold Rewards Program: For an annual fee
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of $25, Starbucks junkies can purchase a gold membership to the chain, with a 10% discount on most purchases in participating stores, as well as the ability to pay by cash or credit card (the regular Starbucks Rewards program requires customers to pre-load the card with value). The Gold Rewards program also includes the perks of the regular program, including free beverage-customization options (e.g., syrups), free refills on drip coffees, a free beverage with the purchase of a bag of whole beans, and up to two hours per day of free WiFi at Starbucks locations.
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Olay Comparison Campaign: As consumers increasingly look for cheaper alternatives to products they’re not willing to cut out entirely, Procter & Gamble created a campaign for Olay, touting its under-$30 Regenerist Micro-Sculpting cream as being “more effective than the department store cream costing $350.”
ing consumers talk about how they’ve been “shopping” in their own closets since the recession began. Jones New York created an online video series teaching women how to give new life to their existing possessions (with the addition of a just a few new items from JNY).
Kmart Layaway Plan: Timed to coincide with the holiday shopping season, Kmart emphasized their layaway plan in TV ads and online. Other discount retailers, including Burlington Coat Factory, T.J. Maxx, Marshalls, and even 99 Cents Only, are also pushing the layaway option.
MORE MARKETERS DOING IT RIGHT The 1929 Soup Kitchen: A temporary fashion boutique in Manhattan, The 1929 gave out free soup and coffee to shoppers during the holiday season.
Blockbuster Video 99 Cent Rentals: The movie rental chain is offering
big discounts on DVD rentals. Dropping from a previous rental rate close to five times that amount, Blockbuster is hoping to woo consumers after holiday spending has left them cash-strapped.
The Cassandra Report 1.09
41
Recession Special
Recession Impact Overall, The Recession Is Felt By the Majority Of Young People
SAMPLE PAGES
Q
Do you feel personally impacted by the recession?
No 26%
81% of females and 25- to 34-yearolds feel impacted
Yes 74%
The majority of young people agree that economic conditions are “getting worse� for:
77%
The country 67%
Themselves and their family 52%
0%
42
The Cassandra Report 1.09
50%
100%
DO NOT REPRODUCE
The world
The Intelligence Group
Recession Special
Spending
Q
Cont.
How does your current spending in each of the following compare to three months ago? More now
the same now as three months ago
less now
SAMPLE PAGES
Buying gas for my car Total
C>C0;
21%
39%
41%
Males
<0;4B
23%
36%
41%
Females
54<0;4B
18%
41%
41%
Washing my # car ' at a carwash Total Males
C>0;
5%
!$ "#
<0;4B
5%
54<0;4B
5%
45%
50%
Females
42%
53%
( !#
39%
57%
Buying gifts for friends# ' Total
C>C0;
( !#
12%
30%
58%
Males
<0;4B
!$ "#
13%
34%
53%
Females
54<0;4B
10% 26%
64%
Buying beer # or ' liquor at a store C>C0; ( !#
6%
45%
49%
Males
<0;4B !$ "#
7%
45%
48%
Females
54<0;4B
5%
# ' ( !# !$ "#
46
The Cassandra Report 1.09
44%
51%
DO NOT REPRODUCE
Total
“The first thing I’d cut from my monthly expenditures is expensive entertainment. This includes movies in theaters and big concerts. The last thing I’d cut is eating out. I couldn’t live without good, cheap food, and I’m really not a cooker. I can, but I’m never in the mood to. I also wouldn’t cut alcohol spending.” —John, 23, NYC
The Intelligence Group
Recession Special
Downgraded products 14- To 34-Year-Olds Are downgrading to generic brands Purchasing generic instead of brand name food is the largest area where respondents are downgrading. Even those who say
SAMPLE PAGES
Q
they are not personally affected by the recession are downgrading to generic more often.
in which areas, if any, have you downgraded your current products (i.e., purchasing a generic or drugstore brand vs a brand name or department store brand?
53%
34%
33%
30%
28%
27%
26%
26%
25%
23% 10%
DO NOT REPRODUCE
Food
The Intelligence Group
(generic instead of brand name)
Clothing
Haircare
Coffee
(McDonalds instead of Starbucks)
Accessories
Food
(non-organic (i.e., purses, instead of sunglasses, organic) jewelry)
Shoes
Cosmetics
Skincare
Electronics
Beer or liquor
The Cassandra Report 1.09
47
Recession Special
Thoughts on the economy and spending More stressing, less spending Young people, particularly females, are worried about money, stressed by the economy, and only buying the necessities. Overall, males are more likely than females to put money into
SAMPLE PAGES
Q
savings each week, pay off their credit cards at the end of each month, and not dip into their savings to pay bills.
which of the following statements do you agree with? please check all that apply
M ainstream
Total
Males
Females
58%
47%
69%
The economy stresses me out
51
42
60
I only buy what I need, not what I want
51
47
55
I’m putting off buying things I really want until the economy gets better
46
40
51
I’ve recently placed myself on a very strict budget
44
40
47
If I can’t pay with cash, I won’t buy something
39
40
37
Having a lot of money is very important to me
38
43
33
I log and track all of my expenses
35
31
39
I’m saving less each month now than I used to save
34
28
39
I put money into savings each week
30
41
20
I don’t use credit cards anymore
29
26
31
I’m saving more each month now than I used to save
28
31
24
I pay all of my credit card bills off at the end of every month
25
31
18
I owe a lot of money on my credit cards
22
16
27
I never dip into my savings to pay my bills
17
25
10
I don’t deprive myself of things, even if I can’t afford them
10
10
10
I use my credit cards to live beyond my means
7
5
9
DO NOT REPRODUCE
I worry about money a lot
The Intelligence Group
The Cassandra Report 1.09
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