July 1st, 2008

Economy Impacting Brand Choices

This article in Brandweek hit home for me, being in the age group surveyed and having made some of these same decisions lately.  While we have been hearing for some time now that the economy is hurting, it seems as if the reaction has been a bit delayed by consumers this age.  The brand list below was startling to me, especially among a group that is as brand conscious as Gen X/Y’s.  Missing from this list is a technology brand and I wonder how long it will be before this groups stops buying new computers, cell phones, music players, etc. and what kind of increased impact that will have on the economy.

“Consumers 21-39 years old are feeling the economic pinch, according to a study conducted online by the Zandl Group on May 23.  Sixty-one percent of the 312 men and women surveyed said they have become more frugal of late.  Almost half (48%) said they frequent bars and clubs less, 39%  are driving less and 35% are eating out less…This has a severe impact on what brands they are choosing.  Here is a list of what companies and categories are keeping into favor and which are falling out of favor.

Popular

  • Trader Joe’s
  • Walgeens
  • Craigslist.org
  • Forever 21
  • Target
  • Paperbackswap.com
  • Dollar Stores
  • Fuel-efficient sedans

Unpopular:

  • Whole Foods
  • Starbucks
  • Sephora
  • Room & Board
  • Nordstrom
  • Netflix
  • American Apparel
  • SUVs

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