After one of the business meetings of my husband we had a vivid discussion about consumer purchasing trends. What we both see is that the mid-segment is fading away: either people go for very qualitative and very expensive stuff or prefer OK and cheap things. Sometimes simultaneously going for both – what I often observe in our own household.
In general, a lot of different consulting reports nowadays are mentioning the same trends in the consumer goods sector, the most prominent one is that: a lot of people are searching for ways to save money (McKinsey claims that “a lot” in the context of the US for example is about 70%). Household incomes generally have decreased. However, at the same time “the wealthy” became wealthier. This widening of the income gap gives birth to two opposite trends: an upmarket segment with its premium offerings is on the rise, but at the same time a lower-market segment and discount stores also see an increased interest from consumers. What is left out? Continue reading At the opposite sides of the spectrum: Peaceful co-existence of upmarket and lower-market in a single household