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.
Data from our study “The Recession and Its Impact on the Environment” shows that many new environmentally friendly consumer behaviors are a by-product of the recession and the pressing need to save money. But there’s still a sizable segment changing their habits for the environment’s sake alone and yet more who are doing so for both reasons. Regardless of motivation, the net result is that more and more eco-friendly behaviors are becoming embedded in British culture.
For brands, highlighting the dual benefits of saving money and saving the planet should be a winning formula and one that will serve them well beyond this recession. Oxfam and Marks & Spencer are doing this via their joint “Wardrobe Intervention” promotion. Users nominate someone with questionable style and send an e-card detailing how they can update their wardrobe with the M&S/Oxfam Clothes Exchange—by taking old M&S clothes to Oxfam, shoppers get a £5 voucher to spend in M&S on a new, more fashionable item.
To download the U.K. version of “The Recession and Its Impact on the Environment,” click here.
Japan is the most anxious market among the 10 we have studied in the course of our AnxietyIndex research. The country has become an increasingly fast-paced and complex place in the last few decades, but as anxiety grows, many are seeking a simpler life and reassessing what really matters to them.
So rather than providing ever more options and functions, or pushing the “have it all” aspirations of the ’80s and ’90s, brands would do well to strip down their offering and focus on simplicity, sustainability and the truly important things in life. Already many businesses are taking advantage of the fact that Japan is one of the fastest-growing markets in terms of LOHAS (lifestyles of health and sustainability).
Aveda Japan, for example, has had great success with its LOHAS-lifestyle salon, spa and vegan restaurant, Pure Café. Radish Boya, a company that delivers organic vegetables and additive-free foods to its members, has seen dramatic growth since 2003; it now has roughly 100,000 members, and annual sales revenue of 22.8 billion yen (US$244 million). And Mujirushi, the clothing and lifestyle retail pioneer also known as MUJI, has succeeded with its core philosophy of simplicity, sustainability and stripping away the unnecessary. Annual turnover is around 145.5 billion yen (US$1.5 billion), and its success in Japan has allowed for rapid expansion—there are now 98 stores around the globe.
For more on the recession and its impact on the environment in Japan, download the presentation from the Trends and Research section of this site.
In our study on “The Recession and Its Impact on the Environment” (to download, click here), we found that while Australians are increasingly environmentally conscious and concerned about sustainability, the term “green” evokes considerable cynicism—many consumers regard it as a trendy but ambiguous marketing buzz word.
Is the language of “green” useful if it is one-dimensional and provokes cynicism? As consumers grow more wary of greenwashing, opportunity lies in speaking honestly about tangible green benefits or credentials, perhaps leveraging a resource story of how the product is made.
One brand that’s doing a good job in the latter department is Lipton, which is running a series of corporate advertisements announcing that Lipton is the “world’s first Rainforest Alliance Certified tea”—with the official credentials and its relation to tree farms clearly explained.
Wearing a hygienic mask used to seem a bit weird in Thailand. Now, with the advent of the H1N1 flu, wearing a mask has become normal practice. Local brands are starting to fill this new niche: Beyond wearing the traditional hygienic masks produced by pharmaceutical companies, Thai people can now buy masks with attractive, even fun designs at an affordable price (about 10–20 baht, or 30–60 cents, vs. about 5 baht for a regular mask).
This situation contributes many opportunities for brands, especially pharmaceutical ones. For example, a brand could give away masks as a social responsibility campaign. Hygienic gel brands could place the product in public areas as a social contribution—a good way to create first trial and real experience with the brand.
Budget department store chain JCPenney will open its first Manhattan store at the end of the month. As detailed by The New York Times, a tongue-in-cheek ad campaign positions the retailer as a stylish and wallet-friendly alternative to its “overpriced neighbors,” a nod to posh New York department stores such as Saks Fifth Avenue. One ad declares: “Our neighbors must be shaking in their overpriced boots.”
Will this be enough to overcome the brand’s association with Middle American—not New York—style? While the tone of the copy has New York style all over it, moving too far away from the brand’s core values could come off as inauthentic. On the other hand, the campaign plays into a consumer trend that’s capturing even the most fashion-minded New Yorker: the desire for thrifty style and a move away from “disgusting” and foolish consumption.
There’s been much speculation as to whether this recession would sideline consumers’ environmental concerns. Our study “The Recession and Its Impact on the Environment” found this has not been the case in the U.K. While respondents perceive green behavior to be costly, well over half say they are anxious about a range of global green issues, including depletion of natural resources, extinction of plant and animal species, deforestation and exhaustion of landfill sites.
For brands, this means that corporate responsibility investments cannot be left to slide, as environmental issues will remain high on the consumer agenda for the foreseeable future. And with consumers increasingly quick to detect greenwashing, CSR initiatives should not be a short-term selling tool but a long-term commitment.
Marks & Spencer’s Plan A is the benchmark for putting CSR at the heart of a business. The five-year, 100-point eco-plan, sees the brand “working with our customers and our suppliers to combat climate change, reduce waste, safeguard natural resources, trade ethically and build a healthier nation.” Becoming carbon-neutral by 2012 is at the heart of the strategy. According to the M&S vision, “There is no Plan B.”
To download the U.K. version of “The Recession and Its Impact on the Environment,” click here.
As long as the motivation is strong enough, consumers are still willing to trade up. And currently, Japanese infant milk brand Meiji is taking advantage of a unique opportunity in the Chinese market.
JWT’s latest global AnxietyIndex survey revealed that while Chinese consumers are the least anxious in the world, food safety stands out as a key source of anxiety. No surprise, considering that last year’s melamine scandal nearly destroyed the Chinese dairy industry. Wary of local infant milk brands, affluent Chinese consumers swarmed to Hong Kong and Tokyo, sweeping the shelves for Japanese brands, which are sold at a price premium and not widely available in mainland China.
Japanese milk brands had shied away from the competitive Chinese market—which is full of strong players both local and international—but now Meiji is launching its brand in China. The time is right: Japanese food products have long been regarded as high-quality and safe, and affluent Chinese parents are more concerned with finding trustworthy milk for their only child than with finding a bargain price.
Meiji, which is airing its first television commercial in China, emphasizes on its Web site that all products are produced and packaged in Japan, with milk sourced from Japan, Australia and New Zealand.
A new kind of store has popped up during the recession in the Czech Republic, catering to consumers’ lower budgets for daily purchases. The Cheap Food chain is selling FMCG (fast moving consumer goods) items that are past their “sell by” date or very close to it. Along with food, the 30 Cheap Food stores around the country also sell dry goods that suppliers or other retailers are trying to off-load, so the range of products varies based on what’s up for grabs. The retailer has seen sales jump a whopping 90 percent in the past year.
The growing popularity of Cheap Food seems to indicate that at least some consumers will choose low price over freshness, which had been an increasingly important consideration. This is a challenge for brands that have been communicating freshness as the main benefit. They will need to focus on the relevant distribution channels, or the brand itself may soon be out of date.
With Japanese consumers reporting an extremely high level of anxiety, a distinct shift is occurring: Many Japanese are looking to the country’s past and the deeper lessons of the culture to find solutions to current issues, especially regarding the environment. (See the Japan version of The Recession and Its Impact on the Environment.) Reverence and respect for nature is intrinsic to the Japanese mind-set and culture. The power of nature has always been tangible for the Japanese, and much of the culture is built around living in harmony with the rhythms of the natural world.
One example of this shift is the comeback of furoshiki, the traditional patterned cloth used as a hand towel and a wrap for carrying anything from books to bento boxes. As consumers look to reduce their dependence on plastic bags, many are going back to furoshiki and learning the various traditional folding and wrapping techniques. Some of the hippest fashion retailers are jumping on board, adapting furoshiki for modern tastes.
Other brands can tap into this cultural shift by taking cues from Japan’s tradition and heritage in addressing the needs of today’s consumers.
In our latest trend report, The Small Movement, we discuss the cultural shift toward smaller, more streamlined and simpler. Adjusting to this new culture of restraint is tricky for marketers that have relied on tapping into the old “bigger is better” mentality. The trick is to show how a product or service can help relieve stress, simplify life and better the consumer’s world.
At JWT, we’ve made simplicity a core theme of Trident’s new campaign. The chewing gum’s tagline, “A little piece of happy,” was based on the simple insight that gum can’t solve the world’s problems—but it can make the moment a bit better. Chewing a piece of Trident gum is like experiencing “a little piece of happy”: It gives you a lift and leaves you with a smile, even through these tough times.
The problems the world is grappling with now are huge. Even intimidating. But instead of promising a superlative benefit, Trident shows that a brand can become more relevant by recognizing the true extent of the contribution it can make—it may be little, but it can also be magic.
Data from our study “The Recession and Its Impact on the Environment” shows that many new environmentally friendly consumer behaviors are a by-product of the recession and the pressing need to save money. But there’s still a sizable segment changing their habits for the environment’s sake alone and yet more who are doing so for both reasons. Regardless of motivation, the net result is that more and more eco-friendly behaviors are becoming embedded in British culture.
Japan is the most anxious market among the 10 we have studied in the course of our AnxietyIndex research. The country has become an increasingly fast-paced and complex place in the last few decades, but as anxiety grows, many are seeking a simpler life and reassessing what really matters to them.
Wearing a hygienic mask used to seem a bit weird in Thailand. Now, with the advent of the H1N1 flu, wearing a mask has become normal practice. Local brands are starting to fill this new niche: Beyond wearing the traditional hygienic masks produced by pharmaceutical companies, Thai people can now buy masks with attractive, even fun designs at an affordable price (about 10–20 baht, or 30–60 cents, vs. about 5 baht for a regular mask).
As long as the motivation is strong enough, consumers are still willing to trade up. And currently, Japanese infant milk brand Meiji is taking advantage of a unique opportunity in the Chinese market.
A new kind of store has popped up during the recession in the Czech Republic, catering to consumers’ lower budgets for daily purchases. The Cheap Food chain is selling FMCG (fast moving consumer goods) items that are past their “sell by” date or very close to it. Along with food, the 30 Cheap Food stores around the country also sell dry goods that suppliers or other retailers are trying to off-load, so the range of products varies based on what’s up for grabs. The retailer has seen sales jump a whopping 90 percent in the past year.
