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Posts Tagged ‘Consumer Confidence’

New December Insights in a Snap!

December 13, 2012 Leave a comment

This month’s Consumer Snapshot is ready! The video below is a concise look at a few trending topics for the month of December, designed to give you a BIG picture view of current consumers.

Here’s a brief overview of what we’re seeing from consumers in December 2012:

- Will the fiscal cliff prove to be the Grinch who stole Christmas? Confidence backs down two points from November.
- While the official unemployment rate registered at 7.7% for November,this doesn’t seem to be quite the hiring miracle consumers were hoping to see this season.
- After the buying bonanza that was Black Friday and Cyber Monday, consumers’ penchant for practicality rises in December.
- It appears that along with trimming the tree this month, consumers will also be trimming their budgets.
- Walmart versus Kohl’s is a toss-up this month in Women’s Clothing.
- Amazon.com climbs to record customer share in Electronics.
- It’s a frosty 90 Day Outlook with spending plans looking downward from Nov-12, Dec-11.
- What’s Hot? Holiday shopping…online.

 

Be sure to check out the NEW Consumer Snapshot InsightCenter™. When you register for complimentary access to this InsightCenter™, you’ll have the ability to segment an advance preview of our all-star insights on consumer confidence, employment, shopping strategies, and future purchase plans by several key demographic groups. You can also download this month’s text summary (which includes additional insights) as well as the PowerPoint analysis through this InsightCenter™.

Interested in becoming a BIG VIP? Please click here to sign up for access to a host of complimentary insights, from our briefings and webinars to press releases and more.

Source: BIGinsight.com

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

New November Insights in a Snap!

November 16, 2012 Leave a comment

This month’s Consumer Snapshot is ready! The video below is a concise look at a few trending topics for the month of November, designed to give you a BIG picture view of current consumers.

Here’s a brief overview of what we’re seeing from consumers in November 2012:

- Confidence reaches a five year high
- With the holiday season on the horizon, it appears that consumers are in a gifting mood
- With the majority planning to begin holiday purchasing before December, the tightwad tendencies we’ve seen over the past few months have begun to relax
- Payless advances to the co-leader position in Shoes
- Walmart trumps Whole Foods, Trader Joe’s in Organics
- 90 Day Outlook: Mixed from October, UP from Nov-11, Nov-10
- I hope Santa blings me something sparkly
- What’s Hot…Giving thanks for Black Friday?


Be sure to check out the NEW Consumer Snapshot InsightCenter™. When you register for complimentary access to this InsightCenter™, you’ll have the ability to segment an advance preview of our all-star insights on consumer confidence, employment, shopping strategies, and future purchase plans by several key demographic groups. You can also download this month’s text summary (which includes additional insights) as well as the PowerPoint analysis through this InsightCenter™.

Interested in becoming a BIG VIP? Please click here to sign up for access to a host of complimentary insights, from our briefings and webinars to press releases and more.

Source: BIGinsight.com

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

New October Insights in a Snap!

October 16, 2012 1 comment

This month’s Consumer Snapshot is ready! The video below is a concise look at a few trending topics for the month of October, designed to give you a BIG picture view of current consumers.

Here’s a brief overview of what we’re seeing from consumers in October 2012:

- Beware the fiscal cliff: confidence declines from September
- Employment outlook improves, but still just 1 in 5 expect “fewer” layoffs over the next 6 months
- Practicality when purchasing remains intact
- Increasing savings reaches highest October reading in 6 years
- Walmart wins in Apparel, Shoes
- Toys R Us, Amazon.com see YOY gains in Children’s Toys
- Holiday ’12 is shaping up to be a bit brighter, with the 90 Day Outlook improving for all categories
- DSLR buying trend? Plans to purchase digital cameras highest in 2 years
- Meet Little Miss “Not” Hot for October: Here Comes Honey Boo Boo

 

And NEW this month is the Consumer Snapshot InsightCenter™. When you register for complimentary access to this new InsightCenter™, you’ll have the ability to segment an advance preview of our all-star insights on consumer confidence, employment, shopping strategies, and future purchase plans by several key demographic groups. You can also download this month’s text summary (which includes additional insights) as well as the PowerPoint analysis through this InsightCenter™.

Interested in becoming a BIG VIP? Please click here to sign up for access to a host of complimentary insights, from our briefings and webinars to press releases and more.

Source: BIGinsight.com

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

The Holiday ’12 State of the Consumer

October 11, 2012 Leave a comment

This week, the National Retail Federation announced their 2012 holiday forecast, predicting that sales will rise 4.1% over 2011 to $586.1 billion. The sales growth is expected to be slightly higher than the 10-year average holiday sales increase (3.5%), though pacing below last year’s growth (5.6%). With holiday shoppers gearing up for spending, let’s take a look at the “state of the consumer” as we head into this all-important selling season for retailers:

Confidence is UP, but Feelings are Volatile. In the BIGinsight September monthly survey of more than 9,000 consumers, 38% indicated that they were very confident or confident in chances for a strong economy. This was a high reading for 2012 and a vast improvement over the September 2011’s 23%, when consumers were still reeling from the debt crisis. Confidence is riding a four-point upswing from August to September, but don’t look for this indicator to continue to improve at this pace – 2012 has been a rollercoaster ride for sentiment and continued fluctuation is expected headed into Q4.

Consumer Confidence

The outcome of the “fiscal cliff” drama on Capitol Hill remains big question mark for the sustainability of confidence – as well as holiday sales. Should we fall off that precipice – and realize an average 2013 tax bill increase of $3500 – holiday budgets are bound to shrink. Adding to the precarious position of the economy? Our continuously weak job market. And the upcoming Presidential election also adds to the uncertainty.

Frugality is a Fixture in Consumer Finances. Along with the relatively robust increase in consumer confidence in September, we also witnessed similar increases in those focused on practical purchasing and buying just the necessities. In fact, both indicators are in line with what we saw a year ago, when confidence was just 23%. So yes, Virginia, despite the more positive outlook for the economy, consumers are still being very cautious with what they spend – even as we look forward to the holiday shopping season.

Expect holiday shoppers to stick to budgets, avoid impulse buys, continue smart shopping strategies, such as couponing, sales/promotions, and comparison shopping, as gift-buying commences. Frugality continues to be the name of the game with consumers because they know the economy isn’t “fixed.” Paying down debt and reducing spending remain fiscal priorities headed into the final three months of 2012, while plans to increase savings reached a six-year September high last month, so it appears that consumers may be preparing for holiday shopping as well as those everyday unknowns.

Pricing uncertainty in key areas, like grocery, gas, and apparel, continues to be of concern with consumers. An increasing number of shoppers are relying on their credit cards more compared to September 2011 when purchasing such staples – so we are still seeing signs of struggling consumers. (i.e. Holiday ’12 won’t herald a season of “recovery.”)

However, if it can be avoided, shoppers won’t make this Christmas on credit. Year over year, fewer are paying off just the minimum monthly balance on their cards, while we’ve seen a slight rise in those carrying $0 average monthly balances. The past four years have been a tough road for consumers, but they do appear to be focusing on not falling back into the lax spending/savings patterns that got them into a mess back in 2008.

Consumers Know They Have the Upper Hand with Retailers. Can we call this retail transparency? The rising popularity of mobile devices has taken much of the mystery out of shopping for customers holding a smartphone or tablet. They can compare prices, check availability, and even click “buy” from virtually wherever they are located, and shoppers will work all angles – online, instore, mobile, social media, coupon sites, direct mail, email, and ad circulars – to make sure that their holiday spending remains on budget. It’ll be a spending game that consumers want to win.

However, we know that all retailers can’t compete on low price alone [I’m looking at you, Best Buy.] Great customer service and personal rapport with shoppers will be key in driving traffic to retailers who aren’t low-price providers. Product selection, availability, and brand assortment – something department stores having really honed in on in the past few years – will also serve to turn shoppers’ heads this season. “Cheap is chic” is SO 2008; today’s shoppers want value and are willing to pay a little more for quality – as long as they can use a coupon.

This post originally appeared on Forbes.com as a contribution to the Prosper Now blog.

New September Insights in a Snap!

September 18, 2012 1 comment

This month, we’ve introduced the Consumer Snapshot – a concise look at a few trending topics for the month of September, designed to give you a BIG picture view of current consumers.

In this month’s video analysis, we’re examining consumer confidence, practical spending and personal finances, and the pain at the pump. And, we wrap things up with a peek at Holiday 2012 spending plans.

This month’s video is below, but you can also click over to our full version for a short text summary as well as the link to this month’s complimentary PowerPoint analysis.

 

Interested in becoming a BIG VIP? Please click here to sign up for access to a host of complimentary insights, from our briefings and webinars to press releases and more.

To view the latest BIG Consumer Snapshot in its entirely: September 2012.

Source: BIGinsight.com

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp

Fresh Consumer Insights via Video – August 2012

For those of you who may have missed our latest Executive Briefing, we just wanted to let you know that you still have a chance to get up-to-date on the latest consumer trends via our Video Briefing!

That’s right…in just 5 minutes, we’ll educate you on what you need to know about confidence, consumer spending, unemployment, and retail. Simply click play below to view our latest insights from our Monthly Consumer Survey:

Interested in becoming a BIG VIP? Please click here to sign up for access to a host of complimentary insights, from our briefings and webinars to press releases and more.

For more information on this data, please contact BIGinsight™.

Source: BIGinsight™ Monthly Consumer Survey – AUG-12 (N = 9426, 8/1 – 8/7/12)

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

Does Exercise Incite Positive Thoughts about the Economy?

The positive effects that regular exercise can have on our health and stress levels are well-documented; I personally enjoy the solitary time on my elliptical each morning reading Twilight The Changing American Consumer on my Kindle. But can breaking a sweat help boost economic confidence?

According to our August Consumer survey, 35.2% of those who regularly hit the gym [or pound the pavement?] are “confident” or “very confident” in chances for a strong economy, indexing slightly above the overall average (34.0%). Among those who prefer a more sedentary lifestyle, confidence was subpar (33.3%).

Exercisers are also prone to more positive thinking regarding the employment outlook. Nearly one in five (19.5%) is calling for “fewer” layoffs over the next six months, higher than the overall average (16.9%) as well as their couch potato counterparts (15.4%). Exercisers aren’t as likely to be sweating increasing layoffs, either; about one in four (26.7%) is expecting “more” layoffs, indexing below adults in general (27.6%) as well as non-exercisers (28.1%).

But while exercisers are making more positive predictions for the economy, they are adopting more realistic, financially conservative lifestyles. This month, half (50.7%) of those who work out regularly say they have become more practical in their purchasing, 28% higher than those preferring less active lifestyles (39.4%). Focus on necessities, sticking to budgets, and spending more time with the family are priorities to a higher proportion of those tending toward toning compared to those who, well, are not.

Exercisers are also making sure that their finances are in shape as well; nearly two in five (38.8%) maintains plans to decrease overall spending in the next three months, much higher than those leaning toward lounging (28.4%). We see nearly the same disparities when comparing plans to pay down debt and increase savings:

Also noteworthy: interest in exercising began accelerating when the economy hit the skids. In August 2007, fewer than one in three (30.5%) reported that they were working out regularly, while the economy prospered with a 43.9% confidence rate. Fast forward to 2012, and more are exercising (36.5%) while confidence has dropped to 34.0%:

Is the economic downturn/exercise upturn a just coincidence? Have we been turning to exercise to help alleviate some of the macro-environmental stress brought about by the Great Recession?

Or given the information deluge we’ve experienced via the online, mobile, and social media, have we just become more aware of the benefits of building up a sweat? More motivated?

Or with the growing number of baby boomers entering retirement, is a larger proportion of the population trying to stave off aging?

Or in this economy, is going for a run simply cheaper than dinner-and-a-movie?

Maybe we’ve just become tired of asking, “Do I look fat in this?”

Check out our other blogs on the topic of health and exercise:

One in Four McDonald’s Customers Unhappy with Their Health

Two-Thirds of Trader Joe’s, Whole Foods Shoppers Express Health Happiness

Source: BIGinsight™ Monthly Consumer Survey – AUG-12 (N = 9426, 8/1 – 8/7/12)

© 2012, Prosper®

Latest Consumer Insights: August 2012

Early each month, we release our Executive Briefing – complimentary topline insights from our latest Monthly Consumer Survey of more than 8,000 consumers.

And, we’ve just released our latest edition for August. Here’s what you may have missed:

- Economic sentiment climbs for a second consecutive month. This month’s reading was up a point from July and increased 65% from Aug-11…WHAT?! Recall that the debt ceiling crisis reached a fever pitch this time a year ago; as a result, confidence in the economy plummeted to its lowest point in more than two years. While this month’s reading is a step in the right direction, it remains well below pre-recession Aug-07.

- With the official U.S. unemployment rate failing to improve for yet another month, July’s relatively bullish outlook for hiring fades in August. Trepidation about personally becoming laid off continues to be evident this month.

- The slight boost in confidence this month has the opposite effect on practical purchasing tendencies. Will this trend continue? Don’t bet on it…as we approach the autumn months, shoppers may begin to pull back as they start bracing themselves for holiday spending.

- With national average gas prices creeping back up into the upper $3/gal range over the past month, you can expect smart shopping strategies to continue among the nearly three-quarters who say they’ve been impacted by the pain at the pump. Drivers are anticipating an average pump price of $3.76/gal by August 30, $0.30 higher than their forecast for the close of July ($3.46/gal).

- Are shoppers turning to EDLP when it comes to buying clothing? This month, 16.0% indicated that “sales aren’t important to me” when purchasing apparel, increasing from Aug-11 and Aug-10. However with the vast majority either “usually” or “only” buying clothing on sale, retailers ought to be prepared for bargain-hunting Back-to-School shoppers this month.

- Foot Locker gets its kicks again in Shoes this month, with the specialty store once again bumping JC Penney out of the Top 5 for this category.

- When it comes to the reasons why shoppers choose a particular store most often for Groceries, it’s the usual suspects: price, location, selection, and quality. But divide the rationale by the type of store shopped, and you’ll see additional interesting reasons to shop…

- Is this Back-to-Shopping season? With school nearly in session, popular categories like Children’s Clothing, Shoes, Health & Beauty Aids, and Electronics are looking UPward over the next 90 days, according to the BIGinsight™ Diffusion Index.

- While Michael Phelps is certainly golden in the pool, he’s a bit like a fish out of water compared to back-to-school shopping…plus: sales tax holidays, Ryan Lochte, and colored denim

To sign up to receive the monthly BIGinsight™ Executive Briefing, please click here.

And, to view the latest BIG Executive Briefing in its entirely: August 2012.

Source: BIGinsight™ Monthly Consumer Survey – AUG-12 (N = 9426, 8/1 – 8/7/12)

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

The New Normal, According to Consumers

(This post originally appeared on Forbes.com as a contribution to the Prosper Now blog.)

As Consumer Insights Director, I have been working with the vast amount of insights we gather for an entire decade. And, it’s been interesting to see how consumers have evolved over this time span: from their embrace of online shopping (seen in full effect for Back-to-School this year) to the “spend now, worry later” mantra voiced by many before the burst of the housing bubble burst and subsequent meltdown on Wall Street. Even post-recession, consumers are adapting to the times, couponing at every corner, working within budgets, fattening up their piggy banks, and becoming attached at the hip to their favorite social media sites. And who really thought that – even as little as just a few years ago – that the term “mobile exclusivity” would enter our vocabulary?

Most certainly, a lot has changed in ten years.

While the advent of m-commerce might be a close second, I would argue that the clear turning post for consumer behavior during the last decade came with the “Great Recession.” Shoppers went from “spend now, worry later” to an “abort spending, worry, worry, worry” mindset. Holiday 2008 was an absolute disaster for most retailers, and, to this day, they are still trying to coax shoppers back in their stores. According to some of our latest insights, consumer confidence continues to trend below an ideal range, employment – or rather, unemployment – remains a chief concern, while decreasing overall spending is a financial priority to an increasing number of consumers.

Think about that last statement for a bit. The lagging consumer confidence, weak outlook for employment, and spending cutbacks we’re seeing currently applied to the 2009 consumer…and the 2010 consumer…even those in 2011. This persistent drought of positive economic news over the past several years has changed consumers’ approach to spending. Are frugal consumers the “new normal”?

If the economy continues at this lackluster pace, you betcha.

This month, we asked 8,500 U.S. consumers if they thought the economy would ever rebound to what it was before the economic crisis, and the results were fairly well divided: just over a third were hopeful for a rebound, while nearly as many either aren’t on the rebound bandwagon or are simply unsure.

Why is it important to get shoppers’ perspective on the matter? Doubt in the economy brews uncertainty and hesitation toward consumer spending. With two-thirds of Americans feeling pessimistic or indecisive about an economic rebound, we’re likely to continue to see heavy coupon usage, a strong focus on budgets, further attempts at debt reduction, targeted spending, price comparisons – smart shopping strategies executed by well-informed consumers (who have been made all the more knowledgeable by the recent rise of mobile devices).

Translation: if consumers are going to spend their hard earned money, they are going to make every dollar count.

It’s also important to note that with the economy flatlining over the past four years, optimism for a rebound has been waning among consumers. Back in July 2009, more than two in five were confident that the economy would bounce back to its pre-recession glory; the current figure represents a 20%+ drop from this point in time. On the upside, though, with the debt ceiling crisis looming back in July 2011, consumers harbored their worst feelings toward a rebound, so at least we’ve made some improvement versus a year ago:

So what’s a retailer to do? It’s all about the CONSUMER. Knowing who your shoppers are, what they are planning or willing to buy, and adjusting your merchandising mix, marketing strategy, and inventory levels accordingly will likely help you weather this economic maelstrom. And you might find that you have to chart a new course to ensure your long-term sustainability.

For more information on this data, please contact BIGinsight™.

Back-to-School Overview + New Consumer Trends for July

July 26, 2012 1 comment

Our very special guest contributor this month on the BIG Call was Ellen Davis, Senior Vice President at the National Retail Federation and Executive Director for the NRF Foundation.

July is an exciting month for the NRF and BIGinsight, as this is the time of year we collect and release a fresh batch of insights on the Back-to-School shopping season. 2012 marks the tenth season of our partnership on Back-to-School insights – a milestone!

In her portion of the Call, Ellen delivered an interesting view of what we can expect from Back-to-School shoppers this year and what this means to retailers. Specifically, she addressed:

- The Economy: Where We’ve Been, Where We’re Going
- Back to School, Back to College 2012
- Economy Remains Top of Mind
- What’s Different This Year
- Retailers’ Recipe for Success
- Holiday Implications

And to kick off the Call, I gave a snapshot of consumers overall, including economic sentiment, employment outlook, practical purchasing, our 90 Day Outlook as well as a special preview of Holiday 2012 spending plans.

To listen to the recorded webinar, click here.

For the full, complimentary July 2012 BIG Call slide deck, please click here.

For more information on this data, please contact BIGinsight™.

Source: BIGinsight™ Monthly Consumer Survey – JUL-12 (N = 8509, 7/2 – 7/9/12)

© 2012, Prosper®

BIGinsight™ is a trademark of Prosper Business Development Corp.

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