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 was a bit shocking to see that Saudi Arabia is the third most anxious country among the 13 that JWT has surveyed since February 2009. (See the Trends and Research page for a full listing of reports.) According to JWT’s October 2009 AnxietyIndex survey of 484 Saudi adults, our nation’s anxieties are centered around unemployment and health.
While Saudi Arabia is one of the world’s richest countries, people have been very worked up about the high rate of unemployment—young men aren’t able to find jobs with salaries that keep up with the cost of living and social expectation, and women find it difficult to compete with men for jobs due to social constraints. The Saudi stock market crashed before the global recession, which has affected many companies here; hiring freezes are prevalent.
It was less surprising, however, to see health and disease register as a major driver of anxiety among Saudis. Although health care is free for all Saudi nationals, the system is very slow, and many people go to costly private hospitals. That said, at least we aren’t upset about the price of gas.
In a country with a melting pot of cultures—local citizens make up only around 20 percent of the population—anxieties vary greatly among residents. Since locals have the security of strong government support (free education, health care and assisted housing loans), it’s not surprising that anxiety levels for Middle Eastern expats are higher across all areas of concern.
According to our most recent AnxietyIndex survey of 503 adults conducted in October and November 2009, the greatest source of angst in the UAE is economic and financial, as the nation saw drastic layoffs and organizational restructuring starting in the second half of 2008. After the collapse of the real estate market, the inflated cost of living did not drop fast enough to reflect the end of the period of speculation, placing purchasing power and family security high on the list of anxiety drivers.
Middle Eastern expats are concerned about a shift in societal values, health issues (we saw a surge in health advertising and psychological advice) and the rising unemployment rate. Locals are not as concerned about societal values, as theirs are preserved within a close-knit community. Interestingly, for a nation criticized for its lack of environmental care, locals’ major concerns revolve around the impact of global warming and food prices.
The outlook for the next six months is pessimistic, with anxiety centered around the cost of living and food prices. Job security, however, is expected to improve.
Click here to download the full UAE AnxietyIndex report from the Trends and Research page.
Stay Hungry Stay Foolish is a recent book published in India about business school graduates who followed their hearts and dove into entrepreneurial ventures (the phrase was popularized in a Stanford commencement speech Steve Jobs made several years ago, quoting an issue of The Whole Earth Catalog from the 1970s). Some of these entrepreneurs left a cushioned corporate career, some were fulfilling a childhood dream, a few were redefining retirement as a second inning.
The stories are diverse and rich. And while the endings are happy, there are many anxious moments along the way. But it was also anxiety that helped push these people along. This is also a prevalent theme in “layoff lit,” a trend we recently posted about.
A growing number of people are finally finding the time to “write that book” after losing their jobs during the recession—enter what has been coined “layoff lit.” The New York Times’ Motoko Rich recently wrote about current layoff lit titles such as Slow Love: How I Got Kicked Off the Fast Track, Put My Pajamas on for a Year & Found Happiness, from former House & Garden editor Dominique Browning, and The Bag Lady Papers: The Priceless Experience of Losing It All, by former Self magazine editor Alexandra Penney.
The theme here seems to be finding the silver lining of starting over. As Matt Buchanan points out in The Sydney Morning Herald, George Clooney’s character in Up in the Air follows a similar narrative, reminding a distraught man he’s laying off about his love of cooking—“his sacking is an opportunity to reset his priorities, to choose to do what he loves to do—to cook again.”
The idea that there’s an upside to the downturn is certainly appealing, and brands such as Allstate are doing well to tap into it.
People around the world are living under the daily threat of losing their jobs, but the scenario is quite different in urban India. Some Indians have been smiling on their way home, excited to break the news of a salary hike. With the exception of companies in some sectors, such as tourism, IT, exports and financial services, many businesses have doled out raises this year. According to a July survey on “Performance and Reward Trends” by Hewitt Associates, employees in the pharmaceutical, manufacturing and telecom sectors saw pay increases in the range of 9-11 percent for fiscal year 2009-10.
This is an opportune time for brands that can pull the levers on niche marketing, specifically targeting people who work in the growth sectors. Brands in the durables, travel, jewelry, home solutions and automobile categories may be better off doing this than simply focusing on mass-market communication.
On holiday in one of the most remote places in India, I was surprised to meet a number of people who were there on a long break, having no job to rush back to. Their stories were similar: They used to be expats working in London (from Australia, New Zealand, the U.S., etc.), they were made redundant (expats tend to be the first to go), and before going back home, they’d decided to take an extended trip—something they’d always wanted to do but never had the time for. They stay in guesthouses or do home stays; eat in local eateries; take long-distance buses rather than fly or hire taxis; go on meditation treks and walks. They’re on relatively modest budgets and things aren’t always comfortable, but the experience, they say, is very fulfilling and inspiring.
Such “gap year” travel, along with doing volunteer projects overseas, is apparently booming. Although in general travelers have greatly cut back on overseas holidays during this recession, people are being forced to re-evaluate their priorities and values—so while spending more to make the most of one’s limited holiday may no longer be viable, investing in a long break now seems like a good way to spend one’s limited money. People will spend on what’s meaningful.
Being made redundant is obviously something you’d rather avoid, but the people I met looked as though they’d gained much more than they probably would have were they still employed, at least from a life-fulfillment point of view.
Avon’s “Hello tomorrow” brand mantra, in the words of CEO Andrea Jung, “expresses our commitment to making tomorrow a better day for women around the world.” To that end, the global cosmetics company has been contributing to a Hello Tomorrow Fund for the past two years, rewarding people who lead projects that empower women in their communities.
Now Avon is using the recession to help support that brand equity. Its focus on recruiting sales representatives in markets around the world, especially in China, reinforces its brand as a haven for women seeking ways to support themselves, especially during times of high unemployment.
In the Czech Republic, for example, Avon’s recruitment campaign, which ran on TV and in print (via sponsored articles in women’s magazines), focused on the life stories of successful Avon ladies. Five of these ladies are currently featured on Avon’s recruitment Web site. The campaign garnered about 1,000 applicants. In the U.S., Avon ran a recruitment spot during the 2009 Super Bowl and continues to advertise on job site Monster.com.
Czech consumer confidence has fallen as unemployment has risen, prompting a new Web site from the largest telecommunications operator in Central Europe, Telefonica O2. ChcidoO2.cz is a recruitment site touting the company as a place to build a career and targeting those afraid to lose their job as well as students and graduates. Eighty positions, primarily in sales and marketing, are open. It’s a good example of how big companies can benefit from the anxious environment at a minimum investment.
The saying “Give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime” is especially applicable for brands seeking to help their customers during hard times. FedEx Office’s “Free Resume Printing Day,” which took place March 10 at its 1,600-plus centers in the U.S., is a good example.
Customers were invited to print 25 black-and-white resume copies for free—modest but relevant assistance for a target audience that would prefer real hope for stability and financial relief over a temporary money saver. Job seekers are likely to remember this bonus from FedEx, which reported that thousands of people responded to the offer.
While Saudi Arabia is one of the world’s richest countries, people have been very worked up about the high rate of unemployment—young men aren’t able to find jobs with salaries that keep up with the cost of living and social expectation, and women find it difficult to compete with men for jobs due to social constraints. The Saudi stock market crashed before the global recession, which has affected many companies here; hiring freezes are prevalent.
People around the world are living under the daily threat of losing their jobs, but the scenario is quite different in urban India. Some Indians have been smiling on their way home, excited to break the news of a salary hike. With the exception of companies in some sectors, such as tourism, IT, exports and financial services, many businesses have doled out raises this year. According to a July survey on 
