According to Prof John Simpson (Director, Unilever Institute for Strategic Marketing, UCT) consumers behavior lacks quite considerable from what economist tell us is the current state of the economy. So although there are talks about the recession being almost over consumers don’t experience that, in fact the complete opposite. Specific research on how consumers are experiencing the recession will be important for marketers especially looking to 2010. Specific groups have been identified, looking specifically at LSM 5-10 that is making up 80% of spend:

Strugglers are low on confidence and low on financial flexibility
Struggling to survive which has great bearing on what products and brands they buy. Most of them spent money on food. Highly resourceful to stretch their money – bargain hunters. Low Brand loyalty. Have also influenced culture, can’t share anymore.

Pre-family
Brands are very important to them, all about me and me. Don’t compromise on brand image

Young Family
Being hit very hard, sacrifice a great deal. Going more and more towards house brands. They are developing intense dislike of shopping. Looks at the future rather than today.

Older Black Middle Class
Brand is still important, not going to give up anything, brands are still important. Self image and brand are very important.

Prime Timers
Lifestyle spending money on, and to try and improve on it. Not going to change my lifestyle.