Reportlinker Adds The New Era of Thrift: Changing Spending Habits in the Face of Recession

Oct 26, 2010, 11:28 ET from Reportlinker

NEW YORK, Oct. 26 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

The New Era of Thrift: Changing Spending Habits in the Face of Recession

No-one is sure just how deep the current recession will be, or how long it will last, but the IMF recently downgraded its 2010 global projection for annual real GDP growth from 3.0% to 1.9%, with developing economies leading recovery prospects.

Rising unemployment is likely to be one of the main causes behind slowing consumer spending, at least during the first half of the forecast period. Unemployment is expected to peak in 2010 and then fall, although the rate of recovery will vary from market to market.

The psychological shock of the crisis is likely to have a longer lasting impact than the economic one. While consumers may carry on with their lives in much the same way as before, the shift in expectations will be dramatic, and few will be keen to increase their borrowing.

The next two years will see consumers continue to scale down and make more considered purchases, while splurging on treats every now and again to beat the recession blues.

Eventually, consumer markets will begin to recover, but the backlash against rampant consumerism, combined with growing environmental concern, may ensure that a more frugal way of life is here to stay.

As a result of this shift in attitudes, companies will need to alter their product development and marketing strategies to appeal to a new breed of thrifty consumers, which will mean creating an impression of saving money by offering a good ratio of quality to value.

The desire to cut down on waste will stay rooted over the forecast period, especially as green issues will be a core focus for governments, companies and NGOs, which will have a knock-on effect on all consumers.

As consumers continue aggressively to hunt out bargains, discounters and on-line retailers will be the main beneficiaries, while luxury retailers and department stores will be the largest casualties.

Families will in the future continue to become more centered on the house and home, as "uber-cocooning" takes a hold. This will spell bad news for the consumer foodservice and tourism industries in the short term, but will provide opportunities in other sectors.

Companies may need to streamline or adapt their brand portfolios to concentrate on those products which are most appealing to cash-strapped consumers, or those which convey an image of luxury and security, but do not carry a high price tag.

At the same time, marketing budgets should not be sacrificed in a recession. Statistics show that companies that increase their marketing – if only by a little – during times of crisis recover up to three times faster than their competitors.

Euromonitor International's The New Era of Thrift: Changing Spending Habits in the Face of Recession Strategy Briefings is a series of reports that alert you to global trends predicted to influence consumer markets. They offer insight to changing market conditions and the opportunities and challenges companies need to consider to maintain a competitive advantage.

List of Contents and Tables


Key Drivers.. 1

Summary Factors Affecting Thrifty Behaviour . 2

Consumer Market Trends ... 3

Retailing Trends 3

Summary Opportunities and Challenges in 2009 and Beyond .. 4


The End of Conspicuous Consumption .. 5

Different Perspectives on Thrift 5


State of the Economy ..... 6

Table Real GDP Growth in Selected Markets 2003-2008 .. 7

The Impact of Unemployment ... 7

Table Unemployment Rates in Selected Markets 2003-2008 ... 8

Spending Versus Saving 8

Table Savings Ratios in Selected Markets 2003-2008 .. 9

Rising Food Prices 10

Table Index of Food and Non-Alcoholic Beverages Prices in Selected Markets 2003-2008 ..... 11


Green Consumerism .... 11

Chart Consumers Agreeing that "The Extra Cost of Environmentally Friendly Products Is Not Worth It To Me" 2008-2009 ... 13

Greener Transport 13

Table Number of New Passenger Car Registrations in Selected Markets 2003-2008 ..... 13

Table Alternative Transport For Consumers Whose Transportation Habits Changed Over 2008-2009 .. 14

Locally-Produced Food .... 15

Chart Consumption of Locally Grown Food in Selected Markets 2009 .. 16

Self-grown Food .... 16

Chart Consumption of Self-Grown Food in Selected Markets 2009.. 17

Swapping, Mending, Buying Second-hand . 18

Chart Consumers Agreeing that "I Try To Buy Things "Used" Or Pre-Owned, Rather Than Brand New" 2008-2009, Selected Markets.... 19

Chart Consumers Agreeing That "I Prefer to Repair Something When It Is Broken Rather Than Replace It" 2008-2009 Selected Markets . 20


Frugalistas. 20

Cocooning.. 21

Chart Global Sales of Selected Consumer Electronics 2003/2008 ..... 22

Eating and Drinking Habits .... 22

Table Global Consumer Foodservice Versus Retail Packaged Food Sales 2003-2008 . 23

Table Global Alcoholic Drinks: Off-Trade Versus On-Trade Sales 2003/2008 .. 23

Bargain Hunting .... 24

The Lipstick Effect . 25

Voucheristas .... 26

Table Sales Through Home and Garden Specialist Retailers in Selected Markets 2003/2008 ..... 28

The Impact of the Internet . 29

Table Number of Internet Users in Selected Markets 2003/2008 Error! Bookmark not defined.

Price Comparison and Money-saving Websites .... 30

Summary International Price Comparison Websites 2008 30


Packaged Food 32

Chart Global Sales of Selected Basic Foods 2003/2008 ... 33

Chart Global Sales of Selected Indulgence Foods 2003/2008 34

Chart Global Sales of Selected Packed Lunch Items 2003/2008 . 34

Cosmetics and Toiletries ... 35

Chart Global Sales of "Feel Good" Cosmetics and Toiletries 2003/2008 ..... 36

Consumer Foodservice ..... 36

Chart Global Sales of Consumer Foodservice 2003/2008 37

Tourism 37

Table Global Tourism Arrivals 2003-2008 ..... 38

Table Global Tourism Departures – International Versus Domestic 2003-2008 . 38

Table Selected Exchange Rates Against The US$ 2003-2008 ..... 39

Table LCC Revenues as a % total LCC/Scheduled Airlines Revenues in Selected Markets 2003-2008 .. 40

Table Revenues from Campsites in Selected Markets 2003/2008 41


Changing Shopping Habits ..... 42

The Rise of Hard Discounters . 42

Table Global Sales through Hard Discounters 2003-2008 ..... 43

Supermarkets' Reponses to Recession. 43

Table Leading Markets for Private Label by Value 2002/2007.... 44

The Dollar Store Boom ..... 45

Fashion Retailing Trends .. 45

The Growth of Internet Retailing .. 47

Table Internet Shopping as a % Total Retail Sales by Selected Market 2003/2008 .. 48


Australia .... 48

Table Australia: Economic Indicators 2008-2010 . 49

Table Australia: Per Capita Consumer Expenditure 2008-2010 ... 49

China ... 50

Table China: Economic Indicators 2008-2010 50

Table China: Per Capita Consumer Expenditure 2008-2010 .. 51

France .. 51

Table France: Economic Indicators 2008-2010..... 51

Table France: Per Capita Consumer Expenditure 2008-2010 52

Germany .... 52

Table Germany: Economic Indicators 2008-2010 53

Table Germany: Per Capita Consumer Expenditure 2008-2010 .. 53

Italy 53

Table Italy: Economic Indicators 2008-2010 .. 54

Table Italy: Per Capita Consumer Expenditure 2008-2010 .... 54

Japan ... 55

Table Japan: Economic Indicators 2008-2010 55

Table Japan: Per Capita Consumer Expenditure 2008-2010 .. 56

UK .. 56

Table UK: Economic Indicators 2008-2010 .... 56

Table UK: Per Capita Consumer Expenditure 2008-2010 57

US .. 57

Table US: Economic Indicators 2008-2010 .... 58

Table US: Per Capita Consumer Expenditure 2008-2010 59


Table Forecast GDP Growth in Selected Markets 2008-2013 61

Table Forecast Unemployment Rates by Country 2008-2013 62

Table Savings Ratios in Selected Markets 2008-2013 63

Table Forecast Global Sales of Packaged Food Versus Consumer Foodservice 2008-2013 ..... 66

Table Forecast Global Tourism Departures – International Versus Domestic 2008-2013 . 66

To order this report:

Consumer Trends Industry: The New Era of Thrift: Changing Spending Habits in the Face of Recession

Consumer Trends Business News

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Nicolas Bombourg



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