Kiwis still looking on the bright side

Global study reveals Kiwis still looking on the bright side in the face of recession

18 March 2009 – Advertising agency M&C Saatchi has revisited its international research into consumer attitudes toward the economic downturn 6 months on from the original study to find that New Zealanders are still relatively optimistic about the current recession.

The global study identified 8 distinct consumer types, with a survey sample that took in the UK, Australia and New Zealand. M&C Saatchi found that while 64% of Britons and 33% of Australians were feeling pessimistic about the recession, only 27% of New Zealanders had a negative outlook on the current economic climate, a marginal increase on the previous study.

While New Zealanders are still comparatively upbeat about the overall state of the economy, they are now much more cognisant of the ramifications for their own financial wellbeing. Only 41% of those surveyed felt optimistic about their personal finances, compared with 59% in the last study.

Across the Tasman, the Australian Government’s stimulus package seems to have had a positive impact on Australian attitudes toward their personal finances, with 47% of respondents feeling more optimistic about their own financial situation, an 8% increase from 6 months ago.

The proportional representation of the 8 consumer types identified by M&C Saatchi has undergone a shift. Most notably Srimpers (those who have traded down on spending habits but will still go on holiday) have dropped 4%, and Ostriches (those who have refused to change their spending behaviour) have increased 6%.

Eight consumer types
1. 2008 Justifiers 23.3% - 2009 21%
• Like to spend, but need an excuse to. More than happy to buy if there’s a limited offer, latest model or additional ‘something free’
• Likely to be skilled professionals earning $100k+
• Believe they have changed the way they buy, but don’t think they are having to make any trade offs

2. Scrimpers 20.3% - 2009 16%
• Scrimpers are trading down, substituting brands with own-label, eschewing independent grocers for big chain savings
• Have changed spending habits, but do not stop spending – will still go on holiday, but it will be cheaper than usual
• Show little age bias, but are inclined to have no children under 16, and live within Auckland region

3. Crash dieters 15.7% - 2009 18%
• Are reacting dramatically to the squeeze, ceasing expenditure on on-essential items, and look for deals and added value
• Skew towards 24-34 year olds and 45-54 year olds, earning in the region of $30-70k
• Pessimistic about the economy and their own finances, and don’t see the situation improving

4. Treaters 11.3% - 2009 14%
• Tightening of belts does not com naturally to this group, and they reward themselves for any frugal behaviour
• While they may buy more own-label goods at the supermarket, Treaters also want ‘reward’ brands such as wine and chocolate
• Likely to be 65+, retired and optimistic about the economy and their financial circumstances

5. Ostriches 10.3% - 2009 16%
• In denial, refuse to compromise behaviour
• Trend towards 35-44 year old with household income of $100k
• Currently indifferent to their financial state, and while secure financially, are not willing to take risks with their money

6. Abstainers 8.3% - 2009 5%
• Haven’t stopped spending, but have postponed purchases on big ticket items
• Likely to be skilled workers with low household income
• Are cutting back in reaction to recession, going out less and doing all they can to make their dollar go further

7. Clothcutters 6.7% - 7%
• Are making compromises in their lifestyles, for example not buying a new car so they can still spend on a holiday
• Tend to be part-time workers with lower household income, and are single
• Reacting to a recession by cutting down, but treating themselves once in a while

8. Vultures 4% - 2009 3%
• Look to exploit the economic crash, active in the property market and on the hunt for bargains on the high street
• Trend towards skilled professional males, earning $100k+
• Optimistic about their personal situation, and prepared to take risk where previously they might not

CEO of M&C Saatchi Nick Baylis concludes, “Values triumph over money in this culture and we believe there is a very real possibility that New Zealanders are not averse to a rebalancing of those values back to the things we have traditionally valued as a nation; people over possessions, quality of quantity, and relationships over returns.”

ENDS

© Scoop Media