Not all products are saved
Short-time working, bonus cuts and layoffs lead directly to a reduction in the budget of consumer households. The global strategy consultancy Simon-Kucher & Partners determined in a short study how the planned budget expenditures are developing due to the crisis. According to this, 38 percent of the around 100 consumers surveyed plan to reduce their own expenditure based on their expectations for 2009, but savings are primarily made on larger investments such as furniture, household appliances or vacation trips.
“Some industries will only feel the effects of the crisis with a very long delay. In the industries that have been badly affected, it is already a question of survival, ”says Dr. Gunnar Clausen, partner at Simon-Kucher & Partners. Companies in these industries shouldn’t make the mistake of only offering everything cheaply. Because the competition will follow suit and they would only gain little volume. “All providers will have to live with the low prices for years,” warns the price expert. While larger purchases are postponed during the crisis, “the little joys in life” are much less subject to consumers’ need to save. The budgets for food, health and care products would hardly be changed. On the contrary: Many consumers used the money they saved and indulged themselves in something, even if it costs a little more.
It is noticeable that the general assessment of the situation is significantly worse than the personal one. Two thirds of those surveyed would expect major cuts in leisure spending for all Germans this year. So far, however, only one in three plans to restrict their own spending. So there is still hope for these industries, but the chance to attack must be used directly. “In bad times like these, markets are redistributed. It is imperative that companies undertake detailed marketing and sales planning instead of just focusing on price cuts and internal cost-cutting programs. That does not go far enough, ”recommends Clausen.