Post-Materialism refuses to go away

At the start of the 2008 recession, we had featured a series of entries in this blog about the post-materialism trend of consumers willing to do more with less, and being very comfortable with it. This trend has not only sustained, but seems to have become resurgent in the face of the continuing economic woes.

This just in today from the Wall Street Journal in a piece titled, Frontier of Frugality [WSJ Subscription Required]. We quote:

“Retailers are coming to terms with a new reality: the consumer who traded down during the recession and never came back.

Buffeted by high unemployment, heavy debt loads, falling home values and high food and gas prices, these shoppers have been whipped into a permanent state of consumer caution. They buy only what they need, avoid premium labels, clip coupons and scour sales.”

So if you are selling to such consumers, buckle up. It is going to be an even bumpier ride.

Our advice:

• Be maniacally focused on a chosen segment of consumers. We don’t mean a particular demographic. We mean a segment defined by consumers in a context with a need. Households making $50,000 - $75,000 in a year is a class of consumers. Parents that wish to give meaningful, memorable and economical holiday gifts to their families define a consumer segment. Pour all your energies in understanding and delivering to segments. Also read: Less is more in driving organic growth.

• De-position your competitors: It is the survival of the fittest. If you wish to be recognized as responsible and meaningful, cast your competitors as frivolous and irresponsible. When done correctly, you can use your competitors marketing investments against them. Also read: De-position your competition off the shelf.

• Innovate furiously: Create a series of experiences that uniquely delivers against the needs of your target consumer. If retailers would use a fraction of the money they spend in discounting merchandize towards true innovation that addresses their target shopper, they would be way ahead of the game.

Post-materialism is here to stay. Are you prepared to live up to its challenges?