Tag Archives: trends

The U.S. Middle Class: Losing Some of Its Luster Globally

22 Apr

The income of the U.S. middle class is still among the world leaders — but the lead is narrowing.

According to, David Leonhardt and Kevin Quealy, reporting for the New York Times:

“The American middle class, long the most affluent in the world, has lost that distinction. While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades. After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.”

“Although economic growth in the United States continues to be as strong as in many other countries, or stronger, a small percentage of American households is fully benefiting from it. Median income in Canada pulled into a tie with median United States income in 2010 and has most likely surpassed it since then. Median incomes in Western European countries still trail those in the United States, but the gap in several — including Britain, the Netherlands, and Sweden — is much smaller than it was a decade ago.”

Click the chart to read more.
 
Global Middle Class

Source: New York Times/Luxembourg Income Study analysis

 

L’Oréal Ups Its Product Mix in China

20 Apr

L’Oréal is a leading global beauty-care company: “For more than a century, L’Oréal has devoted itself solely to one business: beauty. It is a business rich in meaning, as it enables all individuals to express their personalities, gain self-confidence, and open up to others. L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy, and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world.” The firm’s annual sales are nearly $30 billion worldwide.

Among L’Oréal’s leading brands are L’Oréal Paris, Lancôme Paris, Giorgio Armani Beauty, Yves Saint Laurent Beauty, Ralph Lauren Fragrances, Maybelline, Cacherel, and Garnier. According to the firm’s 2013 annual report, these are its top cosmetics markets as forecast for the year 2025.

Loreal global

 

With the rapid growth of the Chinese market, L’Oréal is greatly ramping up its efforts there. For example, Laurie Burkitt reports for the Wall Street Journal that:

“As part of its shifting China strategy, L’Oréal recently closed on its €636 million deal ($882.9 million) to acquire Magic Holdings International Ltd., the Chinese owner of the MG brand of beauty products. MG sells 167 different kinds of paper-peel and mud masks across China, ranging from chamomile allergy-relieving to red wine complex whitening. L’Oréal will first look to expand MG masks in the brand’s home market, where the French company is refocusing after pulling its mass-market Garnier beauty-products brand amid intense competition.”

“‘If you are a beauty company, you need to have a Chinese skin care brand,’ said Alexis Perakis-Valat, executive vice-president of L’Oréal’s Asia Pacific region, in an interview. ‘Skincare is to China what makeup is to the U.S.’”

Click the image to read more.


 

What Motivates Car Buyers Around the World?

18 Apr

There are many different reasons why consumers buy specific car types and models — even in the United States. But, how different are purchase motivations around the world?

To answer this question, Nielsen recently conducted a large-scale online survey in 60 countries:

“’Linking global automotive demand with consumer sentiments and media habits is vital to developing marketing strategies that connect the right consumers with the right automotive brands,’ said Pat Gardiner, president of Nielsen Automotive. ‘The Asia-Pacific and Latin American regions, as expected, represent large areas of growth opportunity for the industry, but capturing this opportunity hinges on marketers successfully identifying, understanding’ and effectively connecting with the needs and desires of these buyers.’”

“One key to unlocking the demand drivers is discerning what role a car plays in the consumer’s life. Is it for utility — simply a mode of transportation to get you from one place to another? Is it to express status — a symbol of the success you’ve achieved in life? Or is it more purely emotional — you just love to drive? While each of these sentiments may play a role in the car-buying decision process, connecting with the emotions that pull at the heartstrings draws consumers more powerfully along the path to purchase.”

Click the image to read more.

 


 

What Do YOU Do While Watching TV?

7 Apr

As we know, people today are more frequently multitasking (sometimes when they should other times when they shouldn’t :-) ).

But do they multitask while watching prime-time TV shows? Do YOU?

According to research by Deloitte, not surprisingly, this depends a lot on a person’s age.

Click the eMarketer chart to learn more.

 

 

Digital Advertising Continues to Soar Worldwide

3 Apr

As we know, digital advertising is growing strongly, often at the expense of print and other traditional media.

According to eMarketer, worldwide digital advertising was nearly $105 billion in 2012, representing about 21 percent of total media spending. In 2018, it is expected that worldwide digital advertising will reach $204 billion, about 31 percent of all media spending.

Click the chart to read more.
 

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The Importance of Customer Service in Marketing to Small Firms

1 Apr

Just like their larger counterparts, small business owners expect their channel partners (especially the manufacturers and suppliers with which they interact) to provide superior customer service. They do not want to be neglected or overlooked.

According to a February 2014 study by Cargo and Toluna (as reported by eMarketer): “Nearly half (47.3%) of small business owners (SBOs) said that poor customer service was the most common mistake brands made. Marketers must make an effort to relate to SBOs: Talking at SBOs (instead of with them), as well as failing to understand their businesses, were also big no-nos, cited by 44.7% and 40.7%, respectively.”

Click the chart to learn more.

 

results from a February 2014 study by Cargo and Toluna suggest that marketers should pay attention to their customer service if they’re looking to benefit from such growth.

Nearly half (47.3%) of SBOs said that poor customer service was the most common mistake brands made. Marketers must also make an effort to relate to SBOs: Talking at SBOs (instead of with them), as well as failing to understand their businesses, were also big no-nos, cited by 44.7% and 40.7%, respectively.
Read more at http://www.emarketer.com/Article/Small-Business-Owners-Wonrsquot-Put-Up-with-Poor-Customer-Service/1010723#CmyPSFEfXZZFMPuo.99

results from a February 2014 study by Cargo and Toluna suggest that marketers should pay attention to their customer service if they’re looking to benefit from such growth.

Nearly half (47.3%) of SBOs said that poor customer service was the most common mistake brands made. Marketers must also make an effort to relate to SBOs: Talking at SBOs (instead of with them), as well as failing to understand their businesses, were also big no-nos, cited by 44.7% and 40.7%, respectively.
Read more at http://www.emarketer.com/Article/Small-Business-Owners-Wonrsquot-Put-Up-with-Poor-Customer-Service/1010723#CmyPSFEfXZZFMPuo.99

 

 

“Incomplete” Products Can Spur Customer Consumption

28 Mar

According to Barbara Kahn, a Wharton professor, we are likely to consume more if we believe we are buying an “incomplete” product. Is this you? Read on.

In the Knowledge@Wharton video below, “Kahn talks about how a complete product encourages more consumption: A person is likely to eat two pieces of cheese with holes in them but only one if it is solid, for example. It’s a matter of perception, Kahn explains. She also discusses her research on the attention that consumers pay to large assortments of goods and how it influences their choices when information is presented visually or verbally. In addition, she describes a study on how consumers behave when goods are stacked vertically versus horizontally.”

 

Private Brand Sales Booming in Europe

25 Mar

In the United States, private brands account for less than 20 percent of all retail until sales. We love our branded products more than we want to save money. :-)

But in Western Europe, the story is much different. More than one-third of unit sales involve private brands.

As Nielsen reports:

“Price is one factor helping bolster private label growth in Europe. Notably, private label can be as much as 30 percent less expensive than brands across the Big 5 Countries. Across categories, private label has a price index of less than 60 percent in health, personal care, and home care, compared with 90 percent in perishable fresh foods, where the average prices are much closer to those of brands.”

“However the success of private label isn’t just about cost. Retailers in Europe have also created new demand, particularly by offering new premium private-label lines and by launching dine at home meal offerings with bistro or restaurant quality foods, a trend that is most evident in the U.K.”

Click the Nielsen chart to read more.

 

 

Lessons from SXSW Interactive

20 Mar

As noted at its Web site: “The South by Southwest® (SXSW®) Conferences & Festivals offer the unique convergence of original music, independent films, and emerging technologies. Fostering creative and professional growth alike, SXSW is the premier destination for discovery.”

At the recent SXSW Interactive event,  JWT Intelligence did some background research and came up with 10 key overriding themes for us to consider:

  1. The Snowden effect
  2. Data permanence
  3. Demystifying cryptocurrency
  4. The future of the Internet
  5. Wearables
  6. Man versus machine
  7. Disruption
  8. The humanitarian potential of technology
  9. Visualization
  10. Mindfulness and technology

Here is a slideshow that looks in-depth at these overriding themes from JWT Intelligence:
 

 

How Much of a Snacker Are You?

19 Mar

Do you get the snacking munchies? How often? When? What do you chow down?

According to recent research by Technomic:

“Snack consumption is on the rise, as half of today’s consumers (51 percent) say that they eat snacks at least twice a day, an increase from the 48 percent who said the same in 2012. And about a third of consumers (31 percent) told Technomic they’re snacking more frequently than they were just two years ago. Not only are consumers snacking more often, they’re broadening their definition of a ‘snack.’ These days, a wider range of foods—and beverages—are now viewed as snacks, and convenience stores and other retailers are sparking competition with restaurants in order to meet the growing demand.”

These are some of the other highlights from Technomic:

  • “Consumers eat snacks both between meals and as meal replacements: Nearly half of consumers (49 percent) eat snacks between meals and 45 percent replace one or two daily meals with a snack.”
  • “Forty-five percent of consumers who order snacks at restaurants order from the dollar or value menu.”
  • “Fifty percent of consumers indicate that healthfulness is very important to them when choosing a snack.”
  • “Portability is increasingly vital: 60 percent of today’s consumers, compared to 55 percent in 2012, cite portability as an important or extremely important factor when choosing a snack.”

Click the chart to read more.
 

 

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