Sleepwalking Summer…
July 22nd, 2010 by AshleyThere are some big changes coming in the UK towards the end of this year and nobody is doing anything about it! Yet…
What’s going on?
The Government is committed to saving 1p in every pound it spends, before the end of this year, that probably equates to 3 or 4p in the budget it has left to spend, and its only the start.
There are big changes coming and we in marketing should be thinking about preparing for them. The cuts are going to be big and they are going to hurt. Not just the lovies in marketing and advertising but to the man and woman in the street.
There’s going to be a sudden realisation, that sooner than we imagined, our state benefit is to be removed or cut back, overtime cancelled, our jobs taken away. Our pensions cut.
People are going to get nervous, nervous about spending money, nervous about the future. The papers are going to have a field day with “I told you so” smugness and confidence is going to ebb away from the economy and society, as the real impact of that nostalgic word “austerity” comes home to roost.
In the credit crunch those who suffered were, the bankers, the hedge fund managers, property magnates. The greedy. The new austerity will be harder and more bitter than it was before. This time it’s going to be the average worker who is going to fund the previous excess and suffer the radical changes that are afoot.
What will this mean?
A Fin du Siècle approach by many. We’re going to party hard up to the end of the year and to continue the metaphor, we’ll get a huge hangover in January 2011.VAT will also be up, driving sales volume in December. All the sales will begin in early December and there’ll be a great big hole in spending in January.
What should we do?
Sell eggs and flour. Home baking boomed in the credit crunch, Restaurants and pubs did badly.
Do vouchers, last time even the rich and famous used money off vouchers, we know, we did the biggest and best, Pizza Express.
(Speak to us and we’ll tell you how to do it properly.)
Get back to the basics, do what you do well at a good price, be reassuring, plan properly, save money, be effective.
Export stuff to America, we’re relatively cheap now…
Stay digital, its cost effective, entertaining and relatively cheap for people to use.
In the long run there will still be a massive market for lots of things, Luxury still will be the new necessity, we may just put off purchases that are not essential, but values like family and security will always be important. In two years, for many people, this will just be a slightly uncomfortable memory.



















