Saving is the new Spending!

We constantly hear about how frugal today’s consumers are becoming, whether in class or on the news, but just how will this shape the future of marketing? According to trendwatching.com, bargain-hunting will be one of the top 12 trends of 2012. In fact, the website claims that “securing the best deals is fast becoming a way of life, if not a source of pride and status.” This statement is particularly interesting, because it shows just how important frugality is to consumers. We are seeing a huge shift from the ‘buy-now-pay-later’ mentality that lasted up until the 2008 financial crisis, to much more reserved spending habits. And as the article suggests, it’s about more than just getting a good deal; it’s about getting a better deal than your friends. It used to be that wealth represented status – those who had more were thought to be higher on the social ladder  – now, however, the most thrifty consumer takes top rung. Saving money has become sexy, in place of spending to excess. As a result, marketers must put a greater emphasis on ‘value marketing’, maintaining product quality while keeping prices low. Consumers want to get bang for their buck, and companies like Groupon are already on board with this trend. The group coupon-buying website offers amazing deals on commonplace products and services, and is growing rapidly as a result. While this is an extreme example, it proves how crucial it is for companies to address the trend of frugality. In fact, we may even see a return to the principles of the Production Concept, the original orientation that companies practiced starting in the 1920s, which states that products should be available and affordable.