How Companies Have Failed The Changing Consumer

A new world order

For many Americans, the idea of achievement has driven our national identity. It’s been such a strong motif that it’s filtered into the marketing of many of our most effective brands. Think of Nike and its “Just Do It” brand, which is about achievement and winning, without all the meaningless nonsense that gets in the way.

But Americans are beginning to see a new world order in which the U.S. may not be quite the global power it once was and, therefore, our own desires have been altered as well.

As you’ll see, 70% of Americans believe the U.S. is “falling behind,” which speaks to both a new place for America in a world in which China, India and other countries are emerging as both economic and military powers – and also to how it affects our own self-identity as individuals.

Americans have hunkered down because, in part, they believe recovery is going to be a long haul. They realize they have to work longer than before and, because that thought is emotionally related to their current actions, they are staying home more often. They realize they have pay closer attention to the signs, such as the stock market and their own jobs, with a third of them – 25% higher than the unemployment rate - worrying about losing their jobs.

With that in mind, let’s ask ourselves, “What is it we’re all seeking now that things are changing?” The bottom line is that Americans have readjusted their expectations and believe they have become more realistic.

To more closely examine what emotional ties Americans are seeking, let’s step back for a moment. In previous research, we’ve seen that, even in good times, we look for “comfort.” It’s taken as a given. Because there are less risks – or, at least, there are less risks perceived – we yearn more to achieve in whatever way we define that. (Twenty-five years ago, that produced the “Greed is Good” generation of the 80s and the eventual lead-up to the lending grab of the last decade.)

However, in tough times, comfort is something that is actively sought. The risks are perceived to be greater so we tend to seek refuge, which is why we’re staying at home more now and spending less.

In addition, if Americans see the world order being shifted, that’s a change we can feel under our feet. To ride that wave, we look to remain as stable as possible and seek the kinds of things that are known (which is why market leaders tend to hold market share) and even become nostalgic. (Watch. There will be resurgence in things retro in the coming years.)

One of the most effective brands is McDonalds, which in addition to selling “fun” to children, is also selling that notions of the familiar, the predictable and having enough to simply be comfortable rather than outstanding. It’s not the “best” we seek anymore, but what feels the most “right.”

“Comfort” is just one part of it, however. There’s also the additional element of “Control,” which has always played well with consumers but has a higher intensity now. It’s almost like The Who singing, “Won’t Get Fooled Again,” in the 60s. We are paying attention. Think of how involved we all were in the past presidential election. Paying closer attention to the stock market is one way we are seeking more control, but there are other signs. We aren’t catering to what has been directed at us, such as the major TV networks or large music retailers. Even as vacationers, half of us are going where we’ve been before.

Certainly, watching TV other than the big four networks speaks to “choice,” but taken altogether, the picture is of Americans taking back control.

But consider all that in the context of today, especially in terms of technology. We are no longer beholden to the major TV networks when it comes to our viewing as the remote control, cable TV and satellite TV along with DVRs, DVD players, laptop computers and even iPods have enabled us to decide what we want to watch and, most importantly, when. The same situation exists with music, which is why most Americans did not buy a CD at a store over the last year. We downloaded it.

We’re in a retail world in which consumers now demand control and believe it is expected, especially when there is an emotional perception that the current economic situation is the fault of others (so, therefore, I’ll watch the stock market more often).

In essence, Americans have taken refuge but they will re-emerge when they believe something new is available to them. Right now, though, the world has not changed along with their own attitudes, as we’ll see.

Think of this: When asked if they agree with this statement – “I am less open to new things than I used to be” – only 29.8% agreed. That means nearly 3 out of every 4 Americans  remain open to new things. That’s good news for companies brave enough to become leaders.

To dig deeper into what has changed with consumers and how they will react going forward, let’s look at individual segments that give us a sharper view of what is taking place.

“Comfort” is just one part of it, however. There’s also the additional element of “Control,” which has always played well with consumers but has a higher intensity now. It’s almost like The Who singing, “Won’t Get Fooled Again,” in the 60s. We are paying attention. Think of how involved we all were in the past presidential election. Paying closer attention to the stock market is one way we are seeking more control, but there are other signs. We aren’t catering to what has been directed at us, such as the major TV networks or large music retailers. Even as vacationers, half of us are going where we’ve been before.

Certainly, watching TV other than the big four networks speaks to “choice,” but taken altogether, the picture is of Americans taking back control.

But consider all that in the context of today, especially in terms of technology. We are no longer beholden to the major TV networks when it comes to our viewing as the remote control, cable TV and satellite TV along with DVRs, DVD players, laptop computers and even iPods have enabled us to decide what we want to watch and, most importantly, when. The same situation exists with music, which is why most Americans did not buy a CD at a store over the last year. We downloaded it.

We’re in a retail world in which consumers now demand control and believe it is expected, especially when there is an emotional perception that the current economic situation is the fault of others (so, therefore, I’ll watch the stock market more often).

In essence, Americans have taken refuge but they will re-emerge when they believe something new is available to them. Right now, though, the world has not changed along with their own attitudes, as we’ll see.

Think of this: When asked if they agree with this statement – “I am less open to new things than I used to be” – only 29.8% agreed. That means nearly 3 out of every 4 Americans  remain open to new things. That’s good news for companies brave enough to become leaders.

To dig deeper into what has changed with consumers and how they will react going forward, let’s look at individual segments that give us a sharper view of what is taking place.

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