Reports of consumer spending over the Thanksgiving weekend, including Black Friday, noted that overall spending was slightly above last year’s.  However, before we get all giddy, the numbers also showed that spending per person was down quite significantly.

It seems that many were taking advantage of discounts not necessarily to buy fun gifts for those on their lists, but rather were buying more expensive necessities that they couldn’t afford without the discounts.  For example, sales of vacuums are up.  As are towels and sheets.

Sure there are plenty of LCD TVs moving, but entry-level sets can be had for 50% of what they were last year.  So the splurge is relative.

For current marketers, the implication seems to be that consumer (and most business) purchases will remain in the arena of “gotta have” vs “wanna have.”

Spending is slogging back – so long as interest rates and inflation don’t begin to spike.  Your marketing message ought to emphasize the pent-up demand for obtaining the items that keep things running.  Greater efficiency is nice too, but not at exorbitant cost.  Some reasonable upgrades will makes sense too.

We’ll see how things develop.  But start making plans to come out from your hiding places and keep it down to earth.

Posted by: Steve Banis