Kiwis looking on the bright side of recession

Global study reveals Kiwis looking on the bright side in face of recession

30 October 2008 – International research conducted by advertising agency M&C Saatchi into attitudes concerning the economic downturn has identified eight distinct consumer types, while revealing that New Zealanders are not as pessimistic about the prospect of recession as other nations.

The globally study surveyed consumers in the UK, Australia and New Zealand, and found that, while 64% of Britons and 36% of Australians were feeling pessimistic about recession, only 25% of New Zealanders had a pessimistic outlook on the current economic climate.

M&C Saatchi New Zealand CEO Nick Baylis says, ``Consumption is driven by consumer demand and psychology, and the comparatively optimistic outlook that New Zealanders have shows there is still opportunity out there for brands that are able to best align themselves with the wider mood of the nation.’’

Eight consumer types
1. Justifiers 23.3%
• Like to spend, but need an excuse to. More than happy to buy if there’s a limited offer, latest model or additional ‘something free’
• Likely to be skilled professionals earning $100k+
• Believe they have changed the way they buy, but don’t think they are having to make any trade offs

2. Scrimpers 20.3%
• Scrimpers are trading down, substituting brands with own-label, eschewing independent grocers for big chain savings
• Have changed spending habits, but do not stop spending – will still go on holiday, but it will be cheaper than usual
• Show little age bias, but are inclined to have no children under 16, and live within Auckland region

3. Crash dieters 15.7%
• Are reacting dramatically to the squeeze, ceasing expenditure on on-essential items, and look for deals and added value
• Skew towards 24-34 year olds and 45-54 year olds, earning in the region of $30-70k
• Pessimistic about the economy and their own finances, and don’t see the situation improving

4. Treaters 11.3%
• Tightening of belts does not com naturally to this group, and they reward themselves for any frugal behaviour
• While they may buy more own-label goods at the supermarket, Treaters also want ‘reward’ brands such as wine and chocolate
• Likely to be 65+, retired and optimistic about the economy and their financial circumstances

5. Ostriches 10.3%
• In denial, refuse to compromise behaviour
• Trend towards 35-44 year old with household income of $100k
• Currently indifferent to their financial state, and while secure financially, are not willing to take risks with their money

6. Abstainers 8.3%
• Haven’t stopped spending, but have postponed purchases on big ticket items
• Likely to be skilled workers with low household income
• Are cutting back in reaction to recession, going out less and doing all they can to make their dollar go further

7. Clothcutters 6.7%
• Are making compromises in their lifestyles, for example not buying a new car so they can still spend on a holiday
• Tend to be part-time workers with lower household income, and are single
• Reacting to a recession by cutting down, but treating themselves once in a while

8. Vultures 4%
• Look to exploit the economic crash, active in the property market and on the hunt for bargains on the high street
• Trend towards skilled professional males, earning $100k+
• Optimistic about their personal situation, and prepared to take risk where previously they might not

Nick Baylis concludes, ``The downturn need not be downtime for brands and consumers. By understanding the shifts we have identified in people’s behaviour and reacting accordingly, brands and retailers can thrive in the current climate.’’

ENDS

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