1. Good Enough Generation:The Rise of the Have-NotsFUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

2. Change in global economy is creating anew reality for many forming a greatergulf between aspiration and reality. Banksy Street Art Instillation Sorry! The lifestyle you ordered is currently out of stock.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

3. Turbulent TimesAs the 2011 riots in London and the rest of Europe seemed to show, the profound gulfbetween haves and have-nots has been intensified by the inequalities of a society obsessedwith consumption.The Occupy movement can be seen as the manifestation of public frustration towards thedisparity of wealth distribution.Economic imbalances and social inequality risk reversing the gains of globalization. Analysis of linkagesacross various global risks reveals a constellation of fiscal, demographic and societal risks signaling adystopian future for much of humanity. Both young and old could face an income gap, as well as a skillsgap so wide as to threaten social and political stability. [1] - World Economics Forum Global Risks Report 2012.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

4. The Stifled GenerationThe current generation of young people are the first generation in over 100 years to beunlikely to do as well as their parents.Recent Financial Times research showed that for the first time since official householdincome data were collected, disposable incomes of householders in their 60s haveovertaken those of householders in their 20s.If these generational imbalances persist and are not properly addressed there is a growingrisk of alienating the younger generations.You cant honestly say to younger people any longer, youll do better than your father or mothersgeneration. This trend has been developing over a number of years and politics as a whole has beenlagging behind and has not focused on it. [2] - Alistair Darling, former Labour Chancellor.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

5. The Stifled Generation Median household disposable incomes ( per week, 2009-10 prices, before housing costs, incomes adjusted for household size) The jinxed generation 500 The first generation not to have higher living standards than those born The baby boom generation 10 years earlier Gradually entering retirement far 1985-94 1945-54 better off than any previous generation. But had a tough time in their 20s in the high inflation 400 1970s 1985-94 1965-74 1955-64 300 1935-44 200 1925-34 1905-14 1915-24 1895-1904 The council house purchasers A generation that was squeezed in the 1960s and The surviving wealthy 1970s but really found their The Beveridge beneficiaries Now predominantly in their The elderly poor 100 prime in their 40s under Now around 80, his group was the 90s, rising median incomes of Now no longer with us, those Margaret Thatcher first to benefit significantly in this group in old age reflects born around the turn on the retirement from the postwar differentil mortality. Poorer last century found old age welfare state as envisaged in the pensioners tend to die before came with meagre living 1942 Beveridge Report richer ones standards. Their plight has defined political attitudes to the old 0 21 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 79 Sources DWP;IFS;The UK Data Archive Age of head of household [3]FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

6. Decline in Living StandardsAs governments across Europe and around the world react to the continuing [6]financial crisis, experts are predicting that families will feel the squeeze in livingstandards for years to come.The Institute For Fiscal Studies predicts a lost decade for UK living standards.The current economic downturn began more than three years ago, but as in otherdeveloped countries, the most severe consequences of the recession on UK living standardshave only just begun to be felt, and will continue to be felt for years to come. [4] - Robert Joyce, Research Economist at IFS. Fall in UK median netThe squeeze in living standards is the inevitable price to pay for the financial crisis and household income of 3.5%,subsequent rebalancing of the world and UK economies. [5] the largest single-year drop since 1981, returning it to - Mervyn King, Governor of the Bank of England. its 2003-04 level.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

7. A New Normal: Good Enough PhilosophyFamilies must learn to adapt to having less money in the future by embracing a goodenough approach to living.Frugality, creativity and embracing community are emerging as new coping strategies.The good enough lifestyle although perhaps forced on some as a consequence ofeconomic turmoil could prove enlightening, as consumers question the value of quality,realizing the difference between want and need.Dont believe the myth of quality. [7] - Clay Shirky, Professor of New-Media Studies at New York University.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

8. Good Enough GenerationThe good enough generation centers around themes such as austerity, value andsustainability. These are people in Western Europe and North America who are strugglingto make their rent payments and afford the lives they hoped for.Making up one of the US and Europes biggest battler income groups, the good enoughgeneration have been neglected by most brands.The number of payday loans has quadrupled in the past three years as families strugglewith stagnant wage growth, unemployment and rising costs.According to Shelter, the homeless charity, nearly 1 million people took out expensive,short-term loans in the UK last year in order to meet housing costs.Payday lending is now a multibillion pound industry with lenders employing big advertising andsponsorship budgets. [8] - Sarah Brooks, Director at Consumer Focus.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

9. Back to BasicsAs disposable incomes diminish, consumers will alter their spending behaviors to cope.Companies like P&G say many of its former middle-market shoppers are trading down tolower-priced goods.With this demographic identified as a growing consumer group, we will see a revival oftraditional and back-to-basic products, which perform their desired function and providea low cost alternative to premium.P&Gs signature white soap, Ivory, is being re-packaged after 132 years, with the sameproduct and the same brand message: pure, clean & simple.Theres never been a better time to relaunch this. There is so much tail wind at our back: the economicenvironment, this trend of getting back to things that work, and reminding us of a time when things werea bit simpler. [9] - Kevin Hochman, P&G Marketing Director.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

10. The Rise of the Store BrandThe popularity of store brand products has risen dramatically. This is indicative of the factthat people are starting to dissociate store brands from the poor relation and themisconception that cheaper means less quality.Theres an increasing polarity in shopping behaviour consumers want luxury in certain products, suchas premium meat, but then look for value for the household commodities, just as affluent consumers willbuy value fashion to accessorize a designer outfit. [10] - Jonathan de Mello, Director of Retail and Property at Experian.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

11. Rise of the Pound ShopWith consumers being squeezed the hardest for a generation and many retailers beingforced to close stores, Pound Shops and other forms of discount outlets have stepped in tofill the void.Costcutter is to support the revival of the Kwik Save brand onto the nations high-streetsthis year.14.2% increase in pound shops taking the total to 3,005 (In the year to the end ofOctober).Poundland posted a record turnover of 642m in 2011, up 26%.People used to be quite snobby about where they shopped. Now it doesnt matter. You find people of allsocial backgrounds going to pound shops. Its seen as savvy and clever to find a bargain. [11] - Neil Saunders, Retail Analyst at Verdict.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

12. Budget Sector RevivalThere is renewed growth and creativity in budget sectors across the categories.In travel, examples like: Off Track Planet have launched a travel magazine catering tothe 18-30, low-budget travel audience, providing an edgy guide to getting the most outof some of the worlds most famous cities on the cheap.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

13. ImplicationsFUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

14. Cool CouponingCoupon redemption is now beeing utilized by the middle markets as smart, savvyshopping has become the new cool.Online and mobile access is rejuvenating public conceptions of coupons, with companiessuch as Foursquare and Groupon adding the elements of sociability and fun to discountswhilst making them so easily accessible that it seems almost silly not to use them.In July 2011, American Express launched its Link-Like-Love social commerce program,a free service providing AMEX cardholders relevant deals and experiences based ontheir likes, interests and social connections on Facebook.With consumer confidence flat, unemployment rates still a challenge and prices for most consumableson the rise, its now cool to be frugal to shop smartly. And, coupons are the vehicle consumers areusing to do just that. [12] - Bob Carter, President of Inmar Promotion Services.The middle class appears to be shrinking while the lower-classes are growing, and members of themiddle class seem to be engaging in thrift behaviors as an adaptive strategy under conditions ofdownward mobility. [13] - Todd Goodsell, Professor of Sociology at Brigham Young University.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

15. New Era of Budget TravelWith many now claiming that the train is for the rich, we are seeing the growingpopularity of coach travel. National Express says its coaches business is likely to winmarket share from rail as cash-strapped consumers seek cheaper means of travel.The new Megabus customer is more suburban and middle-class, older and wealthier thanin the past.The railway is already relatively a rich mans toy. People who use the railway on average havesignificantly higher incomes than the population as a whole - simple fact. [14] - Philip Hammond, UK Transport Secretary.[Peoples] primary reason for use is convenience and price, but theyre also happy that it only uses twopints of fuel per passenger to go from Washington to New York, and people are pretty excited aboutthat. [15] - Sir Brian Souter, Chief Executive of Stagecoach.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

16. Good Enough Auto Expect to see a huge rise in small, cheap, good enough automobiles as the automotive industry recognized that catering to the good enough generation is key to future growth. Examples like the Mobius One SUV in Africa and the Tata Nano notoriously known as the worlds cheapest car focus on minimizing each component of the cars design so that it can provide a functional yet inexpensive form of travel. The real genius is building it to Indian requirements, which means you have to shave costs but still deliver value for money. Its a perfect car for our age. [16] - Hormazd Sorabjee, Editor of Autocar India.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

17. New Ways to Access Premium and LuxuryFlash deals from online companies such as Gilt Group are making luxury consumptioneasier and more accessible to everyone.High Fashion designer, Narcisco Rodriguez recently created an exclusive collection forRent the Runway a popular online retail site in New York which rents designer outfitsand accessories for up to 90% of retail price.The definition of luxury is moving away from connotations of excess and conspicuousconsumption, and now means products with higher perceived value and increasedpracticality.The economy has dictated that its no longer fashionable to make sure everyone knows what brandyou carry or wear. [17] - Robert Bergman, President of Bergman Associates (a luxury branding and advertising company).We are working on a lot of amazing ideas which are all about making luxury affordable and accessible.Exclusivit is very dmod. [18] - Karl Lagerfeld, Creative Director of Chanel and Fendi.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

18. New Ways to Access Premium and LuxuryDropping the ladder of accessibility: a new kind of luxury food experience is emerging,which is grounded by the importance of local chefs, purveyors and producers allowinglocals to experience haute cuisine at a fraction of the price.The Bootstrap Company recently teamed with Nuno Mendes, chef of the Michelin starawarded restaurant Viajante, to create The Long Table to create a pop-up, outdoor foodmarket in Dalston, which offers a hand-picked selection of Londons finest street foodsfrom a roster of top food vendors, including five-star steakhouse Hawksmoor.There remains a tribe of well-to-do, recession-proof rich people who continue to seek out premiumgoods. But the masses are now pulling back in the face of rising unemployment and growing economicgloom. And for these consumers we must learn not to reach for the stars but rather to drop the ladderof accessibility. [19] - Mark Ritson, Columnist for Marketing Week. The Long Table Food Market.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

19. D-I-Y EverythingD-I-Y is continuing to serve as a pro-active approach to saving money with people lookingat more creative areas and methods for D-I-Y innovation.From Craft Ales to Bespoke Spirits, the world of alcohol is the latest sector to go DIY.Examples like Housewine designer Sabine Marcelis scaling down the production ofwinemaking by creating a winemaking kit suitable for the home.Lindsey Adelmans You Make It DIY Chandeliers a series of lights designed withstandard industry parts for you to build with downloadable assembly instructions area creative alternative for providing price conscious consumers with access to otherwiseexpensive product lines.In an era of reignited interest in DIY and handicraft skills, Adelmans concept provides a uniqueperspective on design and affordability, by placing manufacturing in the hands of the end user. [20] Stylus Desire for Change Seminar.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

20. D-I-Y EverythingRed Stripe introduced its Make Something From Nothing by launching Yuri Suzukissound installation piece a soundsystem made entirely out of salvaged Red Stripe cansfrom last years Notting Hill Carnival.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

21. RIY (Repair-It-Yourself)Repair-it-yourself has also become a burgeoning trend.Addressing the shortcomings of traditional shoemaking and questioning the sustainabilityof our consumption habits, Eugenia Morpurgos Repair It Yourself canvas shoe concept isspecifically designed for disassembly and repair.Technology Will Save Us is an alternative education space dedicated to helping people torepair electronic products and not just consume technology.We are moving people from a place where they are not very empowered, to one where they canincrease the lifespan of products themselves. [21] - Richard Chinn, Team Expert at Technology Will Save Us.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

22. Innovation with Inexpensive MaterialsIn keeping with the times, designers are exploring ideas through the lens of utility andmanufacturing with an emphasis on low-cost or recycled materials.Confetti Systems, a creative design initiative, transforms low-cost, simple materials suchas tissue into interactive objects by means of handmade production into installations andsets for fashion and music brands.The Scavenging Device part-recycling unit and part-moulding machine transforms oldplastic into a malleable material, which can then be formed into new objects such asdinnerware.01M OneMoment, designed by Figtree Factory Studio, is a completely biodegradable shoemeasuring only 1mm thick around the foot and retails at 10 EURO per pair.In a weak economy designers are seeking inexpensive materials, processes and techniques to workwith on low budget commissions. Using dollar store items or whats around designers aretransforming cheap materials into objects of value. [22] - Stylus Desire for Change Seminar. The Scavenging DeviceFUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

23. Innovation with Inexpensive MaterialsIkea have recently developed a digital camera made from cardboard embracing simple,inexpensive design as a reflection of the basic functionality of the product.The no zoom 2.3 megapixel camera is an interesting demonstration of how simplicity candeliver innovation without high cost. [23]FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

24. Good Enough SolutionsThe Standard bought The Cooper Square Hotel in 2011, and their quick fix pre-renovation design solution has been to put Standard stickers over every single logoin the building.This creative good enough approach to corporate design reflects changing tastesand attitude.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

25. 1. World Economic Forum. (2012). Global Risks 2012 Seventh Edition. Available: http://reports.weforum.org/global-risks-2012/ 2. Chris Giles and Sarah Neville. (2012).Rift grows between old and young. Available: http://www.ft.com/cms/s/0/7831bd68-6f56-11e1-b368-00144feab49a.html#axzz1qPeixrpz 3. Chris Giles. (2012). Generations see fortunes reversed. Available: http://www.ft.com/cms/s/0/868b3520-6eba-11e1-b1b2-00144feab49a.html#axzz1qPeixrpz 4. Robert Winnett. (2011). Living standards to suffer as effects of recession bites. Available: http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/8756479/Living-standards-to-suffer-as-effects-of-recession-bites.html 5. BBC. (2011). Mervyn King says pay squeeze necessary. Available: http://www.bbc.co.uk/news/mobile/business-12282405. 6. BBC. (2011). IFS study: UK household budgets face 10-year squeeze. Available: http://www.bbc.co.uk/news/mobile/business-12282405. 7. Robert Capps. (2011). The Good Enough Revolution: When Cheap and Simple Is Just Fine. Available: http://www.wired.com/gadgets/miscellaneous/magazine/17-09/ff_goodenough?currentPage=all. 8. Tara Evans. (2012). OFT launches probe into payday lending. Available: http://www.thisismoney.co.uk/money/cardsloans/article-2105877/OFT-launches-probe-payday-lending-sector-protect-people-financial-difficulty.html 9. Sheila Shayon. (2011). Ivory, at 132, Freshens Up. Available: http://www.brandchannel.com/home/post/2011/10/05/Ivory-Freshens-Up.aspx 10. NACS. (2010). Pound ($1.62) Stores Rise Toward A Ceiling. Available: http://www.nacsonline.com/NACS/News/Daily/Pages/Archive/ND0126103.aspx 11. Esther Bintliff. (2010). Pound stores rise towards ceiling. Available: http://www.ft.com/cms/s/cdd4dd04-077f-11df-915f-00144feabdc0,Authorised=false.html 12. Joey Ferguson. (2012). Wealthy, educated more likely to coupon than poor, uneducated. Available: http://www.deseretnews.com/article/865551160/Wealthy-educated-more-likely-to-coupon-than-poor-uneducated.html 13. Eve Tahmincioglu. (2012). Towns outlawing extreme garage sales. Available: http://lifeinc.today.msnbc.msn.com/_news/2012/04/17/11230133-towns-outlawing-extreme-garage-sales?lite.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

26. 14. BBC. (2011). Trains are a rich mans toy, says transport secretary. Available: http://www.bbc.co.uk/news/uk-politics-14904610 15. Rose Jacobs. (2011). Megabus eyes US expansion. Available: http://www.ft.com/cms/s/0/7f9b6322-1e68-11e1-bae4-00144feabdc0.html#axzz1qPeixrpz 16. Randeep Ramesh . (2009). Tata Nano: Worlds cheapest car is Indias answer for cash-strapped drivers. Available: http://www.guardian.co.uk/business/2009/mar/24/tata-nano-worlds-cheapest-car 17. Blue Carreon. (2011). How The Uncertain Economy Is Changing The Definition Of Luxury. Available: http://www.forbes.com/sites/bluecarreon/2011/11/15/how-the-uncertain-economy-is-changing-the-definition-of-luxury/ 18. Olivia Bergin. (2011). Karl Lagerfeld to launch new, accessible line. Available: http://fashion.telegraph.co.uk/news-features/TMG8846242/Karl-Lagerfeld-to-launch-new-accessible-line.html 19. Mark Ritson. (2011). A new era: accessibility now trumps being premium. Available: http://www.marketingweek.co.uk/a-new-era-accessibility-now-trumps-being-premium/3031105.article 20. Stylus. (2011). Desire for Change Seminar. Available: http://www.stylus.com/ * RedStripeLager [Vid]. (2012). Red Stripe - Make a speaker with Yuri Suzuki. Available: http://www.youtube.com/watch?v=IaQ1_RcMVrY 21. Technology Will Save Us. (2012). Available: http://technologywillsaveus.org/ 22. Stylus. (2011). Desire for Change Seminar. Available: http://www.stylus.com/ 23. Ikea Knappa Camera [Vid]. (2012). Available: http://www.youtube.com/watch?v=0hBq8A3XLIEFUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12

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