Prepare for the upswing in consumer spending – Marketing advice for Gloucestershire/South Midlands and Cotswold companies
Passing on lighthearted and more authoritative research news.
Early spring? Upswing in consumer spending?
As seen on ITV’s ‘This Morning’ show yesterday, Marcus the Mystic Pig has predicted an early Spring. This follows his astonishingly accurate sporting predictions – but then perhaps no surprise as he is, after all, the seventh pig of a seventh pig! Even more good news for marketers and business owners is reflected in the recent news from the Centre for Economic and Business Research, which has forecasted an upcoming ‘explosion of spending on hospitality and travel in 2021’.
Accumulated savings held by British consumers – 200 bn.
In its January 19th 2021 news release the CEBR reports the accumulated savings of the British public at the end of 2020 has built up to 200 billion and this will be more by the time people are released from lockdown in a few months. This is reinforced by the Bank of England which has reported a 31% increase in monthly deposits with household deposits increasing by 17.6 billion in November 2020.
Consumer confidence – proactive businesses – who will benefit?
CEBR further explains that although there is money to be spent even the notoriously spendthrift British consumer cannot be guaranteed to spend it – what is needed is confidence at the consumer end and a proactive business sector. Bars, clubs, entertaining, travel, events, hotels and especially restaurants (and by default those producers who serve these sectors and sub sectors) will benefit from the spend agenda once people are allowed to go out again.
There is of course the negative question of debts accrued by businesses in these sectors but the Government have recognised this by introducing a new procedure in respect of the Corporate Insolvency and Governance Act whereby companies can go into a temporary moratorium, which is designed to help. In addition there are persuasive arguments that the HMRC should be tasked with keeping businesses alive and not driving them into the ground by abusing its status as a preferred creditor.
ADVICE FOR MARKETERS AND BUSINESS OWNERS – THOSE IN THE HOSPITALITY AND TRAVEL SECTORS AND THOSE SERVING THE SECTORS:
Hang on in there if you can – metaphorically speaking, in a short time you will be able to make hay when your consumer’s sun begins to shine and they are able to spend their gains on social pleasures.
- Look at stocks and be proactive in considering new products or services.
- Consider how you will differentiate your offerings and how to best promote them in an engaging way (taking advantage of the coming new, upbeat attitude to spending).
Our previous blog gives advice on engagement strategies.
Brand e Marketing
Sources: ITV ‘This Morning’, 2/2/21 CEBR.com (19/1/21) Bankofengland.co.uk (4/1/2021).