Transitioning Consumer Values

August 2009

A perfect storm is taking place in America.

In 2006, Al Gore brought us "An Inconvenient Truth" and we started paying attention to the environmental changes that were happening around us. We started to recognize that there were consequences for our energy use. When gas prices topped out at over $4 per gallon last summer, we started to feel the pain of our energy use and the message of environmental resource depletion became a little clearer.

In late 2008, the financial industry collapsed, taking away our entitlement to the American Dream and leading to the July 2009 unemployment rate of 9.5% -- nearly double what it was 16 months ago. And while last week's Newsweek cites that 5 million jobs will be created by the end of 2010, this is not in enough time to offset the daily pain consumers are feeling brought about by forced changes in their daily lives and outlook on their financial futures.

It goes without saying that against this backdrop, consumer values are necessarily transitioning. Emotions are running high. Lifestyles are changing. Purchases are shifting in frequency and price. Quantity and quality may be reversing roles. Sacrifice, security and comfort are taking on new meaning. And yet consumers remain steadfast in their necessity to maintain a sense of well-being. Simply put, brand relationships remain as important as ever but the fundamentals of the consumer relationship with brands will change.

Do you really know what your consumer is thinking and what they need from your brand to weather the storm?