Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Consumer survey data
- Advertising creative
- Abbreviations
- Abbreviations
Executive Summary
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- Recession: A driver of lifestyle evaluation and change
- Resilience: Overcoming obstacles and finding value
- Escapism: Entertainment on a budget
- Media Evolution: Tech sales lag but millions spend more time online
- Ethical responsibility: The next big trend?
Insights and Opportunities
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- Young adults will play a key role in driving recovery
- Retailers can emphasize bulk foods, meal kits and spices to capitalize on the cooking at home trend
- Consider partnering with providers of streaming video to advertise
- Consider starting a “keep the change” program
Inspire Insights
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- Media Evolution
Recession: A driver of Lifestyle Evaluation and Change
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- Key points
- Economic conditions drive changes in American lifestyles
- Most do not think economy is recovering or are unsure
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- Figure 1: Perception that the economy is recovering from recession, by household income, October 2009
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- Figure 2: Perception that the economy is recovering from recession, by age, October 2009
- Key drivers: Unemployment, income, confidence, and savings rate
- Unemployment skyrocketed in 2009 and kept confidence in the economy low
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- Figure 3: U.S. unemployment and job openings rate, December 2009
- Drop in disposable income contributing to reduced spending and lack of confidence
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- Figure 4: Real disposable personal income, 1984-2009
- Consumer confidence remains at historically low levels
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- Figure 5: Consumer sentiment, 2004-09
- Savings rate on the rise
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- Figure 6: Personal savings rate, 2004-09
- Changing strategies for dealing with the recession
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- Figure 7: Strategies for dealing with recessionary pressures, 2008 and 2009
- Most (even affluents) are taking steps to spend less
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- Figure 8: Strategies for dealing with recessionary pressures, by household income, October 2009
- The Big Picture: Lifestyle changes drive down retail and foodservice sales
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- Figure 9: Retail and foodservice sales, 1984-2009
Resilience: Overcoming Obstacles and Finding Value
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- Key points
- Channel analysis: Some discounters win but many retailers struggling
- Declines less dramatic in discount channels
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- Figure 10: Spending patterns in discount channels for food items, by household income, October 2009
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- Figure 11: Spending patterns in discount channels for non-food items, by household income, October 2009
- A case study of success in recession: The Dollar Channel
- E-commerce growing rapidly as consumers search for bargains
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- Figure 12: Incidence of online purchase and average annual online expenditures among users, 2002-2007/08
- Middle-aged, elderly, affluents and Asian consumers play key role in driving channel growth
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- Figure 13: Incidence of internet purchase, by key demographics, 2006 and 2007/08
- Online holiday spending grows considerably as brick-and-mortar sales sputter
- Consumers more likely to reduce spending in non-discount channels
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- Figure 14: Change in spending patterns in retail channels for non-food items, by household income, October 2009
- Whole Foods may have “turned the corner” as farmers’ markets come into vogue
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- Figure 15: Change in spending in various specialty channels for food and beverages, by household income, October 2009
- C-stores can target young adults to help offset overall reduction in spending
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- Figure 16: Change in spending in various convenience channels for food and beverages, by age, October 2009
- Many reduce spending on restaurants and spend more time cooking at home
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- Figure 17: Change in spending in restaurants, by type of restaurant, by age, October 2009
- Young adults more likely to report increased spending on alcohol
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- Figure 18: Change in spending on alcoholic beverages, by age, October 2009
- Young adults more likely to report increased spending on fair trade and organic
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- Figure 19: Change in spending on locally grown and organic food, beverages and supplements, by age, October 2009
- Many reduce spending on durables for the home but young adults still have need
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- Figure 20: Change in spending on cookware and furniture, by age, October 2009
- Many report drop in spending on mobile devices but demand is strong
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- Figure 21: Change in spending on mobile phones, by age, October 2009
- Many do more with less when it comes to clothing and other discretionary spending
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- Figure 22: Change in spending in select other categories, by age, October 2009
- Spending declines more common in black and Hispanics households
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- Figure 23: Change in spending in select other categories, by race/Hispanic origin, October 2009
- Household changes: Many postpone major life events due to recession
Escapism: Entertainment on a Budget
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- Key points
- Americans spending more time entertaining at home
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- Figure 24: Incidence of spending more time with selected entertainment activities, by age, October 2009
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- Figure 25: Incidence of spending less time with selected entertainment activities, by age, October 2009
- Most families spend less than $100 per month on entertainment
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- Figure 26: Spending on entertainment, by household income, October 2009
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- Figure 27: Spending on entertainment, by age, October 2009
- A case of declines: Leisure travel sales fell sharply as recession gripped the nation
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- Figure 28: Change in spending on travel and accessories, by household income, October 2009
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- Figure 29: Number of summer (June, July, August) leisure travel trips, 2001-09
- Figure 30: U.S. Travel Price Index, 2008 and 2009
- Capitalizing on entertainment trends: The exercise industry
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- Figure 31: Prevalence of Americans engaged in recommended and insufficient exercise, 2001-07
- Widespread interest in products and services among women and young adults
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- Figure 32: Exercise tracking, routines and interests, by age, July 2009
Media Evolution: Tech Sales Lag but Millions Spend More Time Online
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- Key points
- Young adults more likely to report increased spending
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- Figure 33: Change in spending on computers, home entertainment, and mobile devices, by age, October 2009
- Hispanics and blacks more likely to report reduced spending
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- Figure 34: Change in spending on computers, home entertainment, and mobile devices, by race/Hispanic origin, October 2009
- Evolution of online media continues to drive widespread lifestyle change
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- Figure 35: Increased use of online entertainment and research activities, 2008 and 2009
- Affluents, like young adults, drive the evolution
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- Figure 36: Change in online entertainment usage—movies and video, by household income, October 2009
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- Figure 37: Change in online entertainment usage—blogs and online community activity, by household income, October 2009
- Figure 38: Change in online research activities, by household income, October 2009
- Social networking and micro-blogging sites growing quickly; becoming more diverse
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- Figure 39: Incidence of overall and recent use of social networking sites, 2005-09
- Online ad sales grow quickly as millions spend more time on the web
- Twitter growing quickly as consumers seek ways to share information more efficiently
- Americans embrace streaming video as inexpensive alternative to DVDs
- The rise of the third screen: Mobile going big
Ethical Responsibility: The Next Big Trend?
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- Key points
- Many embrace organics as a healthier—and more responsible—way to consume
- Relative stability of charitable donations reflects the generosity of Americans
- HP2 expenditures indicate demand for ethical products is resilient
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- Figure 40: HP2 market size and forecast, at inflation-adjusted prices, 2002-13
- Minorities somewhat more likely to report a drop in spending
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- Figure 41: Change in spending patterns on locally grown, fair trade, “good for you,” organic products and supplements, by race/Hispanic origin, October 2009
- Most category users report spending about the same amount on eco-friendly products
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- Figure 42: Change in spending for products purchased specifically to reduce the environmental impact, by age, October 2009
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- Figure 43: Change in spending for products purchased specifically to reduce the environmental impact, by household income, October 2009
- Most users of fair trade products spending about the same as last year
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- Figure 44: Change in spending for fair trade products, by age, October 2009
Cluster Analysis: Entertainment-related
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- Upholders (26%)
- Actives (44%)
- Sedentaries (30%)
- Cluster characteristics
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- Figure 45: American lifestyle entertainment clusters, October 2009
- Figure 46: Incidence of spending more time on entertainment activities, by American lifestyle entertainment clusters, October 2009
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- Figure 47: Incidence of spending about the same amount of time on entertainment activities, by American lifestyle entertainment clusters, October 2009
- Figure 48: Incidence of not participating in various entertainment activities, by American lifestyle entertainment clusters, October 2009
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- Figure 49: Monthly entertainment budget, by American lifestyle entertainment clusters, October 2009
- Figure 50: Incidence of lifestyle changes, by American lifestyle entertainment clusters, October 2009
- Cluster demographics
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- Figure 51: American lifestyle entertainment clusters, by gender, October 2009
- Figure 52: American lifestyle entertainment clusters, by age, October 2009
- Figure 53: American lifestyle entertainment clusters, by household income, October 2009
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- Figure 54: American lifestyle entertainment clusters, by race, October 2009
- Figure 55: American lifestyle entertainment clusters, by Hispanic origin, October 2009
- Cluster methodology
Appendix: Additional Income Comparisons
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- Figure 56: Change in spending in select convenience channels for food items, by household income, October 2009
- Figure 57: Change in spending on locally grown and organic food, beverages and supplements, by household income, October 2009
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- Figure 58: Change in spending on computers, home entertainment, and mobile devices, by household income, October 2009
- Figure 59: Incidence of spending more time with selected entertainment activities, by household income, October 2009
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- Figure 60: Increased use of online entertainment and research activities, by household income, October 2009
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Appendix: Additional Age Comparisons
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- Figure 61: Spending patterns in discount channels for non-food items, by age, October 2009
- Figure 62: Spending patterns in retail channels for non-food items, by age, October 2009
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- Figure 63: Spending patterns in specialty channels for food items, by age, October 2009
- Figure 64: Strategies for dealing with recessionary pressures, by age, October 2009
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- Figure 65: Incidence of shopping websites for non-food items in last two years, by age, October 2009
- Figure 66: Spending patterns in retail channels for non-food items, by age, October 2009
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- Figure 67: Spending patterns in retail channels for non-food items, by age, October 2009
- Figure 68: Patterns in online entertainment and research activities, by age, October 2009
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Appendix: Additional Race/Hispanic Origin Comparisons
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- Figure 69: Spending patterns in discount channels for non-food items, by race/Hispanic origin, October 2009
- Figure 70: Spending patterns in specialty channels for food items, by race/Hispanic origin, October 2009
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- Figure 71: Spending patterns in discount channels for food items, by race/Hispanic origin, October 2009
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- Figure 71: Restaurant spending patterns, by race/Hispanic origin, October 2009
- Figure 72: Spending patterns in retail channels for non-food items, by race/Hispanic origin, October 2009
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- Figure 73: Spending patterns on gourmet food and furniture, by race/Hispanic origin, October 2009
- Figure 74: Spending patterns on travel and accessories, by race/Hispanic origin, October 2009
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- Figure 75: Incidence of shopping websites for non-food items in last two years, by race/Hispanic origin, October 2009
- Figure 76: Entertainment activities, by race/Hispanic origin, October 2009
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- Figure 77: Online entertainment and research activities, by race/Hispanic origin, October 2009
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