Category The Economy
Slow, But Some, Advancement In Consumer Indices
According to The Consumer Reports Index for July, by the Consumer Reports National Research Center, the economy is showing broad improvements in the condition, behavior and expectations of consumers. Though showing improvement, problems remain, including the proportion 16% of Americans that were unable to afford medical bill or medications, or 8.9% who have lost or have reduced health care coverage, well above levels seen in 2009. A worrisome development is a rise in Americans’ homes going into foreclosure in the past 30 days.
The Consumer Reports Employment Index numbers show job creation increased to 51.1, its highest level since April 2009. The Employment Index has pointed to employment growth in three of the last four months. In July 7.8% of Americans started a new job versus 5.7% that lost their job.
Consumer spending across index categories rose in July, particularly in the area of personal electronics and major home appliances. Per capita retail spending was up slightly for July ($274), reflecting June activity, from the prior month ($234).
Posted by eBrand Media Research Department in Marketing, The Economy on August 5th, 2010
April showers didn’t bring May flowers but it’s not all bad news for marketing followers
The June Consumer Reports Trouble Tracker Index measuring financial difficulties faced by consumers in the past 30 days, worsened, rising to 63.5 from 53.0 in May. The most troubling increase is in missed mortgage payments, which reached 3.9%, its highest level since tracking began in April 2009. The latest numbers show consumers have taken a step back facing increases in financial difficulties and a soured employment picture, says the report.
Some of the key findings include:
In June, more consumers reported difficulty in affording medical bills or medications versus the prior month,and faced lost or reduced healthcare coverage
* The Employment Index has dropped, pointing to an increase in the ranks of the unemployed, at least temporarily. The decline was led by the proportion of Americans that lost their jobs in the past 30 days
* Despite the high job losses posted in June, 7.4% of Americans reported starting a job in the past 30 days, well above May, and achieved its highest level recorded since April 2009.
* Consumers have scaled back their interest in shopping as well. The past 30-Day Retail Index for June, reflective of May activity, is 10.8, unchanged from the prior month
* May’s next 30-Day Retail Index, reflective of planned purchases for June, is down slightly from the prior month. Per capita spending for the index categories in the past 30 days was $234, down slightly fromay ($248)
The Consumer Reports Index report comprises five key indices: Sentiment, Trouble Tracker, Stress, Retail and Employment. Here are the key findings:
Posted by eBrand Media Research Department in The Economy, Trend Tracker on June 29th, 2010
The Internet Is Dead (As An Investment)
By James Altucher
I can live all day inside the Internet. I can talk to my friends, listen to music, watch TV, trade stocks, play games, do work – all on the Internet. From 6 a.m. until 10 p.m. every day I can spend on the Internet and it would be a day well spent.
But run for the hills when it comes to advising clients to invest in the Internet.
The days of infinite margins, 1,000% productivity gains, and growth of market throughout the universe are long over. Internet companies now should be treated, at best, like utility companies that get bought at about 10 times earnings and sold at 13 times earnings. Even then, I’m not sure I would give the Internet sector the same respect as the monopoly-protected utility sector.
Don’t just ask me. Ask the best. Nobody can figure out a business model.
Posted by Tom Polanski in The Economy on July 20th, 2009
eBrand Media Research Brief: How 8 behavioral types cope with the recession
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
Richard Storey, chief strategy officer for M&C Saatchi, London, suggests that recession is discussed as if it were a singular phenomenon, and that consumers have taken for granted the notion that there is one single, inevitable and all enveloping global crisis. News headlines tend to report macro trends, making bleak reading: slowing economy, falling house prices, rising food and fuel costs, or decreased consumer spending.
The problem, he says, is macroeconomics that would have us believe that the recession is a macro phenomenon with a single, reasonably predictable outcome, but understanding the dynamics that lay beneath these conditions could identify more interesting and effective recession strategies for businesses.
M&C Saatchi‘s ‘Reacting to Recession’ study uncovers the attitudes and behavior adopted by different groups of consumers and finds eight consumer typologies with distinct approaches to spending and economizing. Understanding and adapting to each segment presents opportunities for businesses, says the report.
Through a program of qualitative and quantitative segmentation, the study separated different consumer typologies. Each has adopted a different predominant behavior or ‘strategy’ to cope financially with the downturn and it is this behavior that defines each grouping:
Crash Dieters… 26%
Scrimpers…13
Abstainers…15
Balancers… 9
Treaters … 12
Justifiers… 12
Ostriches… 9
Vultures… 4
Posted by Tom Polanski in The Economy, Trend Tracker on June 9th, 2009
Why isn’t Zillow dead?
Things are very good at Zillow,” Rich Barton, CEO of the online real estate company, was telling me. We’re in the thick of the worst economic crisis of a generation and a depressed real estate market, so this means that Barton is either a very clever CEO or an audacious liar. I was at first inclined to believe the latter, but left the interview convinced of the former. He’s a canny Web entrepreneur.
It hasn’t all been smooth sailing for Zillow. In October, Barton laid off about 25 percent of Zillow’s staff. He said he did it because he “couldn’t forecast” his business and had to assume the worst scenario. However, the trough following the 2008 bust ended up not being as bad as he thought it was going to be for Zillow, and the company is now back up to its October 2008 staffing level of about 130 people.
Zillow is currently growing, but in a different way than it was before. Page views and unique visitors are up. The site had 8.8 million unique visitors in March, which is a 70 percent year-over-year growth. Zillow has the twice the users at this point as Barton’s team originally projected. However, the revenue per unique user is down to a third of what he expected it would be.
Rich Barton builds cheap sites that focus on expensive audiences.
Posted by Tom Polanski in Social Media, The Economy on May 15th, 2009