The Recession is Over!By joanne | 20th April | Marketing Ideas, Marketing Strategy
As Tesco posts a 10% increase in pre-tax profits this year, Sir Terry Leahy was interviewed on the BBC this morning and told viewers confidently that he believed the country was coming out of recession and that the recovery was underway. Which is great news for everyone; not least Gordon Brown.
But what does it mean for your business?
Tesco posted profits of £3.17 billion for 2009, but for the vast majority of British businesses, profits will be well below that level and many have sustained heavy losses in the last year; in terms of redundancies and customer / supplier losses. So what can most businesses look forward to?
Recent information from the Chartered Institute of Marketing has been looking at how customers have changed with the recession. They give trends to look out for, as follows…
- People are still wary of spending. In spite of some customers being better off due to falls in interest rates, they are still watching their cash.
- That said, credit card borrowing is rising again, as we find the credit habit hard to beat (despite the fact that living beyond our means helped create the recession).
- DIY and ‘Make Do & Mend’ Trends are still popular
- Consumers seem to be hunting for value for money – both Next and John Lewis recently posted rising sales figures, although some other high street retailers are struggling. It seems people are buying fewer items, but looking for quality and items that will last. The question is whether this will be a long-term change in buying habits.
With these trends high in the minds of many consumers, your business needs to review its sales messages, as the country starts to recover. Are you selling what people want? Are you giving people the best value for money that you can?
There will be plenty of opportunities – you just to ensure you position your business to take advantage…