Sunday, September 04, 2011

Ultra-fragmention of consumers into 'the haves' and the 'have nothing'

The Wharton Business review has an interesting insight into US consumers. I quote: 

Since the recession began in 2008, retail in the U.S. has split into "two extremes," Wind notes. On one hand, there is the luxury market, which caters to a small segment of wealthy people unaffected by economic ups and downs. 

On the other hand are discount brands, which have grown their market share as consumers scrimp and trade down to cheaper products. Brands that fall between those two categories will continue to be squeezed.

Apple remains the prime example of a company that can sell high-priced gadgets despite a recession.

I think that this is going to be way of life for the foreseeable future. Readers of my blog know that I have been going on about the ultra-fragmentation of consumers. I see nothing to change my mind and a lot to make me more certain that I right. Dick Stroud 

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