spend shift inc500

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Copyright 2010, John Gerzema/Young & Rubicam

WE EXAMINED 18 YEARS OF DATA FROM BRAND ASSET VALUATOR®

3

WORLD’S LARGEST DATABASE OF BRANDS

OVER 800,000 CONSUMERS

50,000 BRANDS

275 STUDIES

ACROSS 51 COUNTRIES

QUARTERLY U.S. PANEL OF 16,000 RESPONDENTS

$ 130 MILLON INVESTED


TO SUPPLEMENT OUR DATA, WE TRAVELED ACROSS AMERICA


WE ARE MOVING FROM MINDLESS TO MINDFUL CONSUMPTION

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THE SPEND SHIFT IS THE MAJORITY OF AMERICA

Total US population estimate age 22+ / 208 million people Another 26.6% exhibit similar beliefs and behaviors (55.4 Million people)6

THE SPEND SHIFT IS A CONSUMER LED MOVEMENT TO PROMOTE VALUES THROUGH THE POWER OF CONSUMPTION

113.4 MILLION PEOPLE

54.5%


THE SPEND SHIFT SUGGESTS WE’RE MORE ALIKE THAN DIFFERENT

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SPEND SHIFTERS THROUGHOUT THE WORLD

8Source: BrandAsset ® Valuator’ international values segmentation — 4-C’s (Cross-Cultural-Consumer-Characterization)


FOR 80% OF AMERICANS, THIS IS A RECESSION LIKE NO OTHER

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TRUST DECLINE ACROSS INDUSTRIES 2005 TO 2010

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NEW PRIORITIES IN EXPECTATIONS FOR COMPANIES AND BRANDS


“I FIND THE MORE I HAVE THE MORE I WANT.”

DISAGREE


THE ROLE OF CONSUMERISM IN THE AMERICAN DREAM IS CHANGING

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AND THE ECONOMIC PAIN HAS LEAD US TO RECONSIDER OUR VALUES AND OUR PRIORITIES

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“MONEY IS THE BEST MEASURE OF SUCCESS.”

77.9%

87.5%

DISAGREE

50

40

30

20

10

019971993 2001 2005 2008 2009

PE

RC

EN

TAG

E

USAGE (NEED)

PREFERENCE (WANT)

SHIFTING CONCEPTS OF NECESSITY


OUR SHIFTING CONCEPTS OF NECESSITY

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PEOPLE WERE ADJUSTING THEIR LIFESTYLES EVEN BEFORE THE CRISIS HIT

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THIS IS NOT A “NEW NORMAL,” BUT A RETURN TO NORMAL

16 Source: Board of Governors of the Federal Reserve System

RESILIENCY OPPORTUNITYOPTIMISM


SPEND SHIFT NO. 1 THE NEW AMERICAN FRONTIER

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“SINCE THE RECESSION I’M ACTUALLY MORE CAPABLE OF STARTING MY OWN

BUSINESS.”

48.0%

60.0%

AGREE


PEOPLE ARE MORE HOPEFUL AND OPPORTUNISTIC

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AND MANY ARE MOVING FROM INDUSTRIAL TO INDUSTRIOUS THINKING

39.0%

53.0%

AGREE

“THERE IS A GREATER OPPORTUNITY FOR INDIVIDUAL BUSINESSES TO COMPETE WITH

LARGE COMPANIES THAN THERE USED TO BE.”

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CHARLES SOREL OWNER/RACONTEUR:LE PETIT ZINCDETROIT


TORYA BLANCHARDOWNER: GOOD GIRLS GO TO PARISDETROIT


PATRICK CROUCHPROGRAM MANAGER:EARTHWORKS FARMSDETROIT


PAUL SAVAGECEO/RENEWABLE ENERGY PUSHER:NEXTEK POWER SYSTEMSDETROIT


SPEND SHIFT NO. 2 DON'T FENCE ME IN

EDUCATION BETTERMENTRETOOLING


64.7%

80.3%

AGREE

“SINCE THE RECESSION I AM INTERESTED IN LEARNING NEW SKILLS, SO I CAN DO MORE

MYSELF AND RELY LESS ON OTHERS.”


PEOPLE ARE MORE SELF-RELIANT AND RESOURCEFUL

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84.1%

92.5%

AGREE

“THESE DAYS, I FEEL MORE IN CONTROL WHEN I DO THINGS MYSELF INSTEAD OF RELYING

ON OTHERS TO DO THEM FOR ME.”


PEOPLE ARE IN-SOURCING AS WELL AS “UN-CONSUMING”

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LESLIE HALLECKFOUNDER: NORTH HAVEN FARMSDALLAS



MIRIAM RODRIGUEZLIBRARIAN:PUBLIC LIBRARYDALLAS

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PHIL TORRONE & LIMOR FRIEDFOUNDERS:ADAFRUIT INDUSTRIESNEW YORK CITY


ROB KALINFOUNDER: ETSYBROOKLYN

SPEND SHIFT NO. 3 THE BADGE OF AWESOMENESS

ADAPTABILITY THRIFTNIMBLENESS


64.7%

80.3%

AGREE

“SINCE THE RECESSION, I REALIZE HOW MANY POSSESSIONS I HAVE DOES NOT HAVE MUCH TO DO

WITH HOW HAPPY I AM.”


PEOPLE EQUATE HAPPINESS AND FREEDOM WITH NEEDING LESS

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64.8%

77.4%

AGREE

“SINCE THE RECESSION I REALIZE I AM HAPPIER WITH A SIMPLER, MORE DOWN-TO-EARTH

LIFESTYLE.”


FIXED COSTS AND OVERHEAD ARE “THE ENEMY”

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MAURA McCARTHYCO-FOUNDER: BLU HOMESWALTHAM, MA



RUSS STANLEYVP TICKET SALES:SF GIANTSSAN FRANCISCO

SPEND SHIFT NO. 4 BLOCK PARTY CAPITALISM

AUTHENTICITY LOCALITYCHARACTER


“I AM WILLING TO PAY A PREMIUM FOR PRODUCTS/SERVICES FROM COMPANIES THAT

CONTRIBUTE TO MY LOCAL COMMUNITY.”

64.7%

70.0%

AGREE


PEOPLE ARE SEEKING OUT THE LOCAL AND THE ARTISANAL

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WHILE MANY INCREASINGLY TURN AWAY FROM BRAND NAMES

“I PREFER TO BUY NAME BRANDS.”

61.6%

55.6%

AGREE

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LYNN JURICHCO-FOUNDER & PRESIDENT:SUN RUN INC.SAN FRANCISCO


TOM LEVINOWNER: TOM’S TOYS AND A SUPPORTER OF BERKSHARES CURRENCYGREAT BARRINGTON, MA


JON NORTONCITY MANAGER AND RECYCLEBANK ENTHUSIASTEVERETT, MA


SPEND SHIFT NO. 5AN ARMY OF DAVIDS


COOPERATION AMPLIFICATIONCOMMUNITY

71


A GROWING TREND TOWARD “COOPERATIVE CONSUMERISM”

72

“I BELIEVE MY FRIENDS AND I CAN CHANGE BEHAVIOR BY SUPPORTING COMPANIES THAT DO

THE RIGHT THING.”

65.5%

69.0%

AGREE


ALTHOUGH PEOPLE FEEL LESS RICH, THEY ARE “VOTING” WITH THEIR PURSESTRINGS

73

“I MAKE A POINT TO BUY BRANDS FROM COMPANIES WHOSE VALUES ARE SIMILAR

TO MY OWN.”

70.9%

75.0%

AGREE


ANDREW MASONFOUNDER: GROUPONCHICAGO

SCOTT MONTY & BOB THIBODEAUHEAD OF SOCIAL MEDIA FORD MOTOR CO. & OWNER OF FAMILY DEALERSHIPDETROIT


Copyright 2010, John Gerzema/Young & Rubicam32 Copyright John Gerzema/Young & Rubicam3939

WE ARE MOVING FROM A CREDIT TO A DEBIT SOCIETY

Copyright 2010, John Gerzema/Young & RubicamPhoto from Thomas Hawk85

THERE ARE NO LONGER CONSUMERS, ONLY CUSTOMERS


AMERICA IS AN EMERGING MARKET FOR VALUES-LED INNOVATION


JOHNGERZEMA.COMTWITTER: @JOHNGERZEMA

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