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.
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.
Official GDP figures released this month showed that the UK economy contracted by almost 5 percent in the first quarter compared to the previous year. Second quarter figures are expected to show a further contraction, and although many believe the recession is nearing its end, the economy is not expected to bounce back quickly or strongly.
Meanwhile, Britons seem to have adapted well to their new, more straitened circumstances, quickly grasping that a few simple lifestyle changes can go a long way toward balancing the household budget. Lots of us have adopted a raft of coping mechanisms: avoiding waste, minimizing our purchases and making them go further, shopping around (particularly online), carefully planning or postponing major purchases, and stoically resisting temptation. Having returned to the days of “make do and mend,” Brits will likely settle into a long-term pattern of prudence.
Brands must now adapt to the new age of frugality to stay relevant: They need to work harder, offer more value and give the consumer a crystal clear reason to buy, because nowadays competition is everywhere: a couple of cocktails or a new pair of sandals? A new foundation or that Lost box set?
Brands should acknowledge consumer caution and encourage spending by offering lifestyle solutions, tangible value, trust and reassurance. And in these austere times, perhaps a bit of escapism might not go amiss either.
Marks & Spencer are doing a grand job of giving us a shoulder to lean on with their “Dine in for £10” offer, Wise Buys economy range, £2 lunchtime meal deals and a swaggering heritage campaign—it seems they have their bases covered.
It used be that most people who took advantage of vouchers, deals and discounts were living on a shoestring. Today, it’s simply a sign of a savvy shopper, whatever their income. This recession has seen the rise of the deal-seeking affluent, and brands that have not traditionally catered to an affluent audience should be doing all they can to appeal to this new breed of discount shopper. By luring in these consumers now and offering them a good experience, brands may well retain their custom beyond the recession.
One example from the U.K., which I highlight in our Balancing Health, Wellness and Budgets presentation (download in the Trends and Research page), is discount supermarket chain Aldi, which swiftly added luxury items such as whole Canadian lobster (£5.99) and premium caviar (£1.69) in response to an influx of high-income customers. One trend forecaster has labeled these shoppers “the Aldirati,” while some call them NFAs (no-frills affluents), as an article in the Times of London points out. A recent Aldi campaign hit the nail on the head with the tagline: “Don’t change your lifestyle, change your supermarket.”
In JWT’s Balancing Health, Wellness and Budgets survey in the U.K.—conducted in April among 417 adults—we found that grocery shoppers are cutting out treats (e.g., sweets, biscuits and booze) and costly premium items (fresh fish and organic produce). Britons seem to thrive on a bit of austerity, and there’s nostalgia for the days of “make do and mend.” Demand for allotments is soaring, and Delia Smith’s 1970s classic cookbook Frugal Food has been re-released for a new audience.
Health credentials are still important—we found that shoppers are prioritizing wholesome staples such as pasta, dairy and fresh vegetables—but dwindling sales of organics and fish show that health creds alone are no longer sufficient to keep consumers spending, particularly on premium items. If your product or brand can offer versatility, now is a good time to dig it out and polish it up. Shoppers want to know that their purchase will work hard for them and make their money go further.
Consider the recent print campaign from JWT client Kraft Light Philadelphia, which showcases a variety of appetizing recipes one can create with a simple dollop of cream cheese, from coriander chicken to frittatas, broccoli soup and light cheesecake.
Having grown up during a period of unprecedented growth, young British adults have become accustomed to having what they want and having it now. As they experience recession for the first time, the dual prospects of struggling to find or keep a job and dwindling disposable income have come as a shock. More than any other age group, they are feeling resentful about the ways in which the recession is affecting their generation. To keep young Britons spending, brands will have to compete more fiercely than ever, offering more for less at a time when “Spoiled Britain” can no longer afford to have it all.
These are among our conclusions from our U.K. AnxietyIndex study “The Recession and Its Impact on the Youth Market.” You can download it from our Trends and Research page.
