Per BCG on the recent events (thanks to Ryan):

Saving will be more attractive than consuming. Many of the trends we have seen in the past, like trading up, luxury etc. will be stopped or reversed for many consumers – so companies must not simply extrapolate the trend of the past 20 years.

The real key to these value marketing times will be to quickly re-tool and re-focus where products and services should be targeted in terms of price points and value props. Apple is leading the charge with its planned $800 laptop after down shifting its price to $199 on the iPhone.

The responsive players will fair better this holiday season.

Update: Apple missed out on entering the netbook arena at a time when consumers are going to seek cool and cheap instead of just cool.

  • Essentially, BCG is calling a reversal in trend here. It's not inconceivable because the recent market turmoil has been so severe and so dramatic. Consumers are likely scared that they may lose their jobs, their homes, and their life savings. The resultant cuts in spending will only exacerbate their fears - it's a self-fulfilling prophecy.
  • =Allan, I agree that this pull back may create even more issues as this cycle's trend has even VC's looking to cut budgets ahead of the recession instead of feeling out how bad things get.
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