With the current slow down of the economy, many companies are facing lay-offs due to customers who are not buying their products. One sector not facing this problem is organic foods. Although typical yearly growth of 20-30% has eased, sales of organic food were up 5.6% in December of 2008. Sales are not falling in this category. Customers are sticking to their green products, and are willing to scale back on other products instead of cut out the high cost of organic foods completely.
The dedicated consumers of this market are willing to scale back on other products to maintain a green lifestyle.
What other industries do you see like this one? What other markets sales are remaining consistent throughout this recession? Why are they appealing to consumers?
So what are customers still buying during this economic downturn? It’s important to know what they’re buying so a company can offer products that are still relevant in a consumer’s buying options. According to Forbes, here are the top 10 things Americans are still buying in this time of economic recession:
1. Smart Phones
2. Video games and Consoles
3. Gym Memberships
4. Personal Care
5. Toy Building Sets
6. Car Maintenance
7. Dress Casual Shoes
9. Movie Tickets
Does anything on this list surprise you?
Graham Hill recently wrote a post at Customer Think about how, even though the current rough times, companies can focus on and build customer centricity. Should companies are following his five ideals to build customer centricity, they should have a customer base to carry them through the recession. Are you?
1. Having a deep understanding of customer needs (based on customer jobs and outcomes)
2. Mass customisation of products, services & experiences
3. Dynamically reconfigurable delivery system
4. Lean business support systems
5. Customer value management across the customer portfolio
With a struggling economy, many companies are trying to find the extra dollars to keep going. At The Consumerist, they tell about the latest fee at Mervyn’s, a department store that’s currently closing all its locations. One customer called to pay her bill over the phone, and was informed that she’d have to pay $15 for any service over the phone, whether or not she was calling to pay her bill or addressing another issue.
Even though the company is going out of business, they’re still not treating their customers with much respect. What other ways have you seen customer service falter due to the current economic situation?
In today’s Brandweek, they have an article that will be released in Elle this week that states most women are still spending money on clothes despite the recession. This research was collected in Fall 2007. The average age of the women surveyed was 29, and 52% of them were full time employees. According to the survey, 57% of these women spent more than $2000 on clothes, and 40% of these women spent more than $750 on shoes and accessories. Of the 1,534 women surveyed in retail stores, 53% of the women said the would probably spend just as much as they did in 2007 or more. The study concluded that 8% of women shoppers are recession proof.