JWT’s AnxietyIndex is designed as a place to discuss how brands and consumers are responding to the global recession. With daily content updates, AnxietyIndex.com includes contributions from around JWT’s network, offering a truly global perspective.
It turns out that online gaming might be. As reported in the Los Angeles Times, a comScore study found that while overall Internet traffic grew just 4 percent in December 2008 over December ’07, the number of visitors to online gaming sites jumped 27 percent. Time spent per visitor increased 42 percent.
“It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn,” comScore analyst Edward Hunter told the L.A. Times. “Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives.”
That makes sense. Console gaming provides a lot of value. (A PlayStation game that costs around $50 comes out to about $2.50 an hour for 20 hours of play—far cheaper than going to the movies.) But at zero dollars, free online gaming is a bargain that’s hard to beat.
“At McDonald’s if you want mayonnaise rather than ketchup for your French fries, there’s a 22 cent surcharge. I was shocked,” reports Karl about visiting a branch on 3rd Street and 6th Avenue in Manhattan. Writes Monika: “A pawnshop opened where a bagel shop once was on Queens Blvd in Sunnyside.”
These are among the “uncommon economic indicators” that New York NPR affiliate WNYC is collecting as a part of The Brian Lehrer Show’s online and on-air collaborative project on the economy. Check out the fast-growing list of indicators here—from one blogger noticing smaller glasses at bars to another receiving his first coupon “EVER!” from Target.
In the mind of the average Egyptian, Chevy is a producer of expensive, gas-guzzling cars. Daewoo’s Lanos, however, is perceived in the region as a value car, both inexpensive and reliable. In the current economy, releasing a new model under the Chevy banner alone might have been risky, but the American manufacturer model is piggybacking off the Lanos’ reputation among Egyptian consumers, revamping the old model and placing the Chevrolet emblem on the front bumper.
The art of haggling is perfectly suited for buyers as well as sellers in these cash-strapped times. For consumers, it’s not just about saving money: It’s a way to achieve a sense of control and one-upmanship that may propel them to spend when they might otherwise hold off.
A New York Times reporter recently wrote about haggling for furniture at modern-design stores in the city “Until now, anyway, the idea of challenging those [high] prices would have struck me as absurd,” he wrote. But indeed, while several salespeople were not receptive, he managed to bargain down a $6,500 sofa to $5,000. Meanwhile, The Wall Street Journal notes that cable and phone companies, under heavy pressure to retain subscribers, appear willing and eager to negotiate with customers looking for a break.
Consumers have at least one advantage in this recession compared with past downturns: online access to a thriving gift economy—that is, people freely giving away resources for nothing in return. People looking to pass along everything from old TV sets to hamster cages post ads on sites like Craigslist and Freecycle. The value of goods exchanged in this economy is likely in the millions.
According to Alexa, Freecycle’s site saw peak traffic in October—the same month the Dow dropped 733 points—with 4.8 million visitors. While Freecycle was created to reduce waste and encourage recycling, it’s not frequented solely by college-educated “granola” types. The timeless draw of “free” seems to be motivating people more than environmental concern, especially now. Quantcast data shows that 48 percent of Freecyclers do not have a college degree, and more than half come from households making less than $60,000 a year.
Indians’ attitude toward religion has seen a fundamental shift in the past few years. Today religion is not so much about karma, about suffering for past sins or doing good deeds for rewards in the next life, about destiny or scriptures. It’s become much more about serving as a coping mechanism—a way to manage life’s ups and downs. It’s also become much more about mental and physical well-being in addition to spiritual health.
The recession looks likely to accelerate this trend. The media reports thatastrologers are doing robust business, and temples are seeing an uptick too, both in attendance and donations. Meanwhile, the tourism ministry is pitching India as a destination for spiritual seekers who are “bogged down by money woes and global economic uncertainty,” as the BBCreports.
Marks & Spencer is inviting consumers to “Dine in for £10 with M&S this weekend,” positioning the retail chain as a comparable alternative to eating at a restaurant. The comparison with restaurant food cleverly works to elevate the quality perception of Marks and Spencer’s products while allowing the retailer to communicate a very strong value proposition. This allows consumers to maintain some of the feeling of eating out at a fraction of the price.
Tomorrow is too murky for reliable forecasts, let alone for a credible promise. Letting go of the aspirational messages and “better tomorrows” so dear to the financial services category, FFA Private Bank in Lebanon is capitalizing on one undeniable asset: its past promises. An outdoor ad for the bank reads: “We said we’d be strong in the toughest times. Promise kept.” Lebanon hasn’t been hit by the financial crisis as severely as some countries in the Middle East; it is in those markets that the FFA regional campaign is the most on-point, saying exactly what the consumer needs to hear.
In many countries, the rate of the dollar has always been an index of the local currency’s value. Today, brands like Mercedes-Benz Mexico promise: “As a symbol of trust, we are keeping our preferred exchange rate at $9.99 pesos.”
Clearly it’s not just a special offer—there’s an emotional value involved: a deal that makes the crisis vanish. The brand is making a connection based on the emotional need to preserve the past, a need that’s especially strong in times of bewilderment and fear. Mercedes plays smartly into the urge to hold onto a time when certainty, security and trust prevailed.
Most downturn conversations are about the impact on corporate coffers and the common man—the family caretaker. Little is being said about its implications for youth. Will the slowdown affect the 565 million Indians under age 25?
Indian youth have only just begun the journey to consumerism, so they won’t feel the pinch as harshly as their Western counterparts. And they’ve never had an “excessive splurge” mentality—they’ve learned to live smartly within their means. They save by shopping on local fashion streets, commuting with (cheaper) monthly bus passes rather than spending on daily tickets, talking heartily with prepaid mobile cards. Their smart consumerism is what will come to the fore during tough times.
“It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn,” comScore analyst Edward Hunter told the L.A. Times. “Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives.”
The art of haggling is perfectly suited for buyers as well as sellers in these cash-strapped times. For consumers, it’s not just about saving money: It’s a way to achieve a sense of control and one-upmanship that may propel them to spend when they might otherwise hold off.
Consumers have at least one advantage in this recession compared with past downturns: online access to a thriving gift economy—that is, people freely giving away resources for nothing in return. People looking to pass along everything from old TV sets to hamster cages post ads on sites like 
Indians’ attitude toward religion has seen a fundamental shift in the past few years. Today religion is not so much about karma, about suffering for past sins or doing good deeds for rewards in the next life, about destiny or scriptures. It’s become much more about serving as a coping mechanism—a way to manage life’s ups and downs. It’s also become much more about mental and physical well-being in addition to spiritual health.
Tomorrow is too murky for reliable forecasts, let alone for a credible promise. Letting go of the aspirational messages and “better tomorrows” so dear to the financial services category, 
Indian youth have only just begun the journey to consumerism, so they won’t feel the pinch as harshly as their Western counterparts. And they’ve never had an “excessive splurge” mentality—they’ve learned to live smartly within their means. They save by shopping on local fashion streets, commuting with (cheaper) monthly bus passes rather than spending on daily tickets, talking heartily with prepaid mobile cards. Their smart consumerism is what will come to the fore during tough times. 
