The economy is going to bounce back

QUICK READ: All over the Internet the media is painting a picture of gloom and doom when it comes to the economy. The truth is that nobody knows what’s going to happen when things start to get back to normal, but you can be sure that consumers are be in a spending mood.

The cruise industry recently reported that bookings for 2021 had increased. That’s a good indication that consumers are going to be in a spending mood.

I have anecdotal evidence that consumers are ready to get out and spend when the lockdowns end. I’ve been talking to a lot of CPG marketers who feel that the demand is going to come roaring back in a big way. Already PC manufacturers are discounting laptops by huge amounts and I expect to see more of that.

When the day comes that we’re released from our quarantine cages, we’ll experience what pent-up demand feels like very personally. Cabin fever just fuels the fire as millions of bored people yearn to have fun again. But brands have to beware.

For consumers, the need to restore a semblance of security is likely to translate to a preference for lower-risk brand options. Brand experimentation takes a back seat to tried-and-true solutions. Loyalty to established brands may recover some of the luster it lost (so long as these offerings hold the line on pricing).

I believe people are going to spend money on things like vacations, new home PC’s, cars and luxury items. While the unemployment rate is a problem now when retailers start reopening there is going to be a real battle for employees. Stores are going to have to pay their people more money, which could lead to higher prices and inflation.

eCommerce Rules?

For over the last few years we’ve heard that eCommerce is growing so rapidly that it’s taking sales away from brick mortar stores. Given the huge decrease in retail sales I think it’s safe to say that’s a load of garbage.

Percentage increases don’t mean a damn thing because offline sales still tower way above online sales. In fact, research is indicating that consumers are not very happy with “order online” grocery shopping.

People are anxious to get out again. When they finally do, it’s going to be hard to find a parking space in some shopping centers. Let the media talk about gloom and doom of the economy, but my intuition tells me consumers will light up the boards when this is all over.

About richmeyer

Rich is a passionate marketer who is able to quickly understand what turns a prospect into a customer. He challenges the status quo and always asks "what can we do better"? He knows how to take analytics and turn them into opportunities and he is a great communicator.

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