John Gerzema: The post-crisis consumer

TL;DR

The consumer is taking control and driving a shift towards mindful consumption, ethics and fairness, durable living, and community-based consumerism.

Transcript

Thirteen trillion dollars in wealth has evaporated over the course of the last two years. We've questioned the future of capitalism. We've questioned the financial industry. We've looked at our government oversight. We've questioned where we're going. And yet, at the same time, this very well may be a seminal moment in American history, an opportun... Read More

Key Insights

• 💸Consumers have moved from a state of anxiety to action, de-leveraging and reducing risk in their daily lives.
• 💰Consumers are becoming more mindful and discerning in their consumption habits, moving from mindless to mindful consumption.
• 🌍There are four value shifts driving new consumer behaviors: liquid life, ethics and fair play, durable living, and a return to the fold.
• 💦Liquid life refers to the movement towards having liquidity and less excess, with déclassé consumption becoming trendy.
• ⚖️Ethics and fair play are becoming increasingly important to consumers, who are demanding value and values from businesses.
• ♀️Durable living is about extracting value from every purchase, with consumers holding onto cars longer, emphasizing community, and focusing on personal development and DIY.
• 🤝A return to the fold highlights the importance of trust and connection to communities and social networks, with cooperative consumerism and local currencies gaining popularity.
• ✨Values-driven spending will force capitalism to be better, driving innovation, longer-lasting products, and better customer service. This presents a hopeful future for America.

Questions & Answers

Q: How have consumers shifted their behavior in response to the financial crisis?

Consumers have transitioned from anxiety to action, becoming more mindful in their consumption habits and focusing on de-leveraging and reducing risk in daily life. They have started saving more and spending less, showing increased responsibility and caution in their financial decisions.

Q: What role do ethics and fairness play in post-crisis consumerism?

Ethics and fairness have become important values for consumers post-crisis. They are demanding companies to provide not only value but also align with their values. Consumers are looking at the culture and conduct of companies, emphasizing empathy and respect. They are supporting local businesses, volunteering, and seeking transparency and accountability from brands.

Q: How has the crisis affected consumer spending habits?

The crisis has led to a shift towards durable living, with consumers seeking ways to extract value from every purchase. Americans are holding onto their cars longer, signing up for library cards, and embracing DIY projects. Continuing education and personal development have become priorities. Consumers are looking for brands that pay dividends and offer transparency, long-term reliability, and social responsibility.

Q: How are consumers using technology and social networks to drive change?

Consumers are connecting to their communities and social networks to make informed purchasing decisions. They trust recommendations from other people more than advertising. They are organizing and cooperating with each other to achieve desired outcomes, such as using Twitter to track food trucks or pooling resources to incentivize companies to do good. Companies are adapting by embracing transparency, utilizing social media, and engaging with consumers on a more personal level.

Summary & Key Takeaways

• The consumer has transitioned from anxiety to action, de-leveraging and reducing risk in daily life.

• The financial crisis was caused by excessive consumer spending and over-leveraging.

• Consumers are now focused on mindful consumption, ethical and fair play, durable living, and community-based consumerism.