So say Corbis’s creative intelligence people, who suggest we say goodbye to the couture, the big and the expensive. According to the company’s latest Creative IQ report, traditional luxuries—which, apparently, include Manolos, SUVs and McMansions—are on their way out as consumers turn to simpler pleasures.
Partly responsible is the continuous economic and job-market slowdown. In addition, the public’s focus on values and social responsibilities continues growing, outpacing consumerism.
While people will always seek luxury, Corbis says the definition is changing from the material to emotional or sensual: free time, new experiences and meaningful relationships. Fuel-efficient cars and smaller homes. Home cooking instead of dining out.
Consumers still splurge. Travel, celebrations, education, social or environmental causes and hobbies top the list.
Corbis points to the concepts of togetherness, friendship, experience, relaxation and enjoyment.
Harvard Business School professor John Quelch agrees. Quelch says that economic hardships force people “to retreat to [their] village. Look for cozy hearth-and-home family scenes in advertising to replace images of extreme sports, adventure and rugged individualism. Greeting card sales, telephone use, and discretionary spending on home furnishings and home entertainment will hold up well, as uncertainty prompts us to stay at home but also stay connected with family and friends.”
Corbis analysis holds up in comparison with the research market’s leaders. For example, TNS Retail Foreward reports that the softening economy is pushing 26% of consumers away from upscale and specialty products.
Still, the more things change, the more they stay the same. TNS said spending remained fairly consistent per category. While shoppers may be buying what they need in different stores, they are still spending about the same amount on clothing, consumer electronics, groceries, and health and beauty care. The big exceptions are home improvement and home furnishings, both weakened by a plunge in the housing market.