Everyone has reacted to the recession. One implication for the food industry is that many brands’ value proposition—the reason consumers feel good about spending their money—have been permanently altered. Adweek published a story (A New World for Grocery Shoppers) describing many recession influenced consumer behaviors, however, I think the story underplays the permanence of the consumers’ change.
Most analyses focuses on how behaviors have changed and presume that when the economy recovers, behavior will simply revert, rather than asking the critical question, what lessons have people learned during the difficult times. As I reflect on the lessons discussed with friends, one core lessons is the false promise of debt. Read more