The Great Consumer Schism – Tips for Brand Name Retailers
by Rebecca Button on April 28th, 2008
It’s begun. The Great Consumer Schism is effectively working its way through America-an event last experienced in this country in the ’70s. Economic disparity in America is nothing new. But in times of recession the division is inflated and even more apparent as seen through shifts in spending habits. It makes perfect sense of course that middle to lower income households are switching from brand name items to generic in order to save a few bucks.
So what does this mean for retailers? Well, if you sell cheaper products, this is great news! If you sell brand name (and therefore more expensive) products you may want to reconsider your strategy. Here are a few suggestions:
- Consider including cheaper items in your inventory as an alternative for customers with tighter budgets.
- Revamp your advertising to appeal strictly to wealthier customers.
- Revamp your advertising to enforce the value of brand name products over generic.
- Offer "freebies" along with the purchase of certain brand name items.
- Have a sale! Who doesn’t love a sale?
These are just a few ideas to get you started thinking in the right direction. For more tips check out Don’t Let a Slow Economy Slow Down Your Business