Cogent Elliott's Newal discusses the continued spend of the 'Thrift Culture'
Nicola Newall, head of sales and marketing at Cogent Elliott argues that the 'thrift culture' is alive and well in the current economic climate.
Yet, in amongst this need to make savings, there seems to be a trend emerging over the last couple of months from those who aren’t feeling the pinch in the same way, but who want to be in the credit crunch gang.
At dinner parties and school gates, the talk has shifted from what flash car hubby is buying, which all-inclusive resort will be welcoming the clan at Easter and which private school gives the best networking opportunities later in life to almost competitive levels of how money has been saved by buying online, the benefits of camping in the UK, and (god forbid!) what bargain designer outfits can be found in the local village charity shops. In short – thrifty just got trendy for the middle classes!
Go to any European discounter this weekend and observe the car park. Where, 12 months ago, it would have been full of middle priced or economy cars, probably with a few years under their belt and a few dents in the paintwork, you’ll now find an increasing number of vehicles that wouldn’t look out of place driving up and down the King’s Road in Chelsea. Whilst it’s not quite the Porsches and Ferrari level, there’s certainly a good smattering of Beamers, Audis, Mercs and Alfas.
Like organic food and recycling before it…this current ‘thrift culture’ is gaining momentum and brands need to respond to optimise on those who don’t really need or want to live life on the budget range, but do want to play a legitimate part in those conversations with their peers about what bargain they’ve bagged that week.
So, how can owners of ‘middle class’ brands respond to this trend? Essentially, there are two routes to take – make it cheaper or legitimise the purchase through some other means.
BOGOFs, money off vouchers, and discounted prices are all the rage right now. You only have to flick through any consumer magazine to see that you can buy a sofa for £500 off, get two bottles of wine for the price of one, or get half price entry to a venue on a return visit. However, this strategy can’t be sustained through the whole projected recession period as consumers come to expect the discounted prices, margins are eroded, and the brand equity is diminished.
A smarter route to go is to tap into routes to legitimise the savings and create a ‘guess what a bargain I got’ feel whilst building the brand.
Whilst this may require more thought and effort in the short term, the payoff should show through in short term demand matched with long term brand value…a better place to be when the economic climate improves!