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.
To download the entire report, click here.
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.
Indian culture has always given a lot of importance to sound health, and strong immunity is considered a prerequisite for good health. Traditional sciences such as Ayurveda and Unani believe that certain herbs and tonics improve immunity.
Two brands operating in this realm are among the few to leverage swine flu in their communications: Dabur Chyawanprash, a leading Indian health supplement, and Brooke Bond Red Label Natural Care, a popular tea brand from Unilever. The messaging manages not to reek too strongly of opportunism. I think that’s because these brands have always been positioned as immunity-boosters and have established credibility for themselves. Their communication doesn’t need to persuade consumers or change their beliefs, it needs only to influence and aid recall.
The recession has seen a contraction in the weekly shopping, and in Colombia, one of the most affected categories is personal care products, many of which consumers regard as non-essential. When Listerine saw that mouthwash appeared to be an exception—it’s the only subcategory within oral care that has shown growth in the past year—it did some research.
The most significant finding was that consumers are focused on prevention, with the recession prompting them to take better care of themselves in order to avoid bigger doctors’ bills. With this consumer insight, Listerine decided to stop media support of its premium-focused “Total Control” campaign and develop and communicate a local campaign re-enforcing the brand essence to a wider target: that Listerine provides “A truly clean mouth.”
The campaign has proved effective: Listerine’s products have kept up their sales, allowing the brand to maintain its category leadership. And now it’s well-positioned as the oral care expert, further strengthening its bond with consumers.
A sore throat and high fever were never so much a cause for concern as they are now, thanks to the swine flu pandemic. Each day, the Indian media report new deaths caused by the flu. And each day, the media also reports precautions and the names of hospitals one must go to if experiencing certain symptoms. There is a lot of panic, especially in households where a family member has come down with an infection that may or may not be swine flu. The only hospitals that currently test and treat potential swine flu patients are government-run, notorious for their poor infrastructure and slow service.
The players that seem to be profiting from this whole malady are pharma companies (those given the go-ahead to make Tamiflu) and manufacturers of face masks and hand sanitizers, which are selling their wares at a premium. Some manufacturers of surface cleaning liquids and tissues also seem to be doing well.
One supermarket in Mumbai had a swift response to the health advisory to keep hands clean, filling a wall near the store’s entrance with antiseptic liquid hand wash. The product is normally found deep in the store’s interior, while the front space is typically reserved for soft drinks, chocolates and large packs with special deals.
What other small yet timely and meaningful actions can brands support or initiate? How can they further help customers take positive preventive steps in the face of anxiety? This is a unique space for FMCG brands and retailers in particular, which can be vital channels for small, positive actions that can help consumers combat their anxiety.
Singa the Lion is a Singapore mascot introduced in the early 1980s as part of a National Courtesy Campaign. These days, Singa is being used as an ambassador for responsible behavior amid the rise of H1N1. Life-size Singas wearing a mask have appeared across Singapore to encourage people with worrisome symptoms to see a doctor.
It’s a cheeky way to deliver an important message, and one that gets attention. Could there be a lesson here? Just because an issue is anxiety-provoking one, communications don’t have to be serious or heavy-handed—a light-hearted approach may be a smarter way to break through.
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.
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.
Time recently reported that high-end yoga mats are bucking today’s frugality trend. These mats—the priciest of which cost about $100—are made by a company called Manduka, whose sales rose 55 percent in the first four months of 2009. Manduka now has a distribution deal with nationwide retailer Dick’s Sporting Goods.
The article points to several reasons why sales are soaring: the continuing popularity of yoga, the “superior traction” and “extra cushioning” of the mat, etc. But I believe the driving reason behind Manduka’s success is outlined in our recent paper “The Recession and Its Impact on Luxury,” in which we discuss the future of luxury and what it means for health and wellness: People are re-evaluating luxury altogether. In some cases, this means redefining it in non-materialistic ways—time with family, doing good, being healthy. It can also mean spending more for products that conform to the highest green standards … or for things that enhance health and well-being.
Manduka’s pricey mats fit perfectly into the new mold of luxury: They allow people to invest in their health and wellness while simultaneously flaunting their wealth to those in the know. Call it stealth consumption rather than conspicuous consumption. Bad news for the Guccis of the world, good news for Manduka.
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.”
