Does Your Social Strategy Resonate with Discount Shoppers?
It's brutal out there.
Job security continues to be a growing concern for Americans. According to the most recent New York Federal Reserve survey, more workers expect to become unemployed than at any other time in the study's ten-year history. Only 88% of respondents in March still held jobs in July, the lowest number since 2014.
The results?triggered conversations?on LinkedIn around cracks in the job market, not only pointing to the?frustrations of workers?regarding their wages, but also?shedding light?on the challenges of the job market itself, as the application process is increasingly littered with more?ghosters?than on dating apps.??
Ultimately, the circumstances of one's employment—or lack thereof—impact?spending habits. Be it?burnout,?financial limitations, or both, shopping patterns are shifting further and further toward convenience and saving. While Pinterest boards and DIYers have had their moment in the sun, companies like Lowe's are reporting?reduced rates?of do-it-yourself shoppers (Home Depot called it the "deferral mindset," or putting off expensive home projects until the economic strain is lifted.)
And so, people are, in essence,?"trading down"?their purchasing habits to primarily discounts?at retail stores, easy access to offerings with a slew of coupons?on TikTok Shop, or the breadth of products and services available from the likes of?Shein?and?Temu. However, clicking on fast fashion brands has its own set of moral, ethical, and literal consequences that the consumer has to grapple with, lest we forget the?ongoing accusations?of the aforementioned companies' products?containing?high levels of toxic chemicals.?
Though at a time when pocketbooks are so stretched that even a quintessentially American vacation to Disney?send you into debt, those larger moral concerns may feel inconsequential.
Why it matters: As consumers experience ongoing obstacles that leave little room for spending sprees, brands should be mindful of their social strategies. Collaborations with A-list influencers, for instance—though typically viewed?as an opportunity to make a product seem more accessible or relatable—now run the risk?of being perceived as inauthentic to the average consumer. Activations that have historically succeeded should remain, but in light of the fraught socioeconomic climate, it may be worth looking at authenticity through the lens of the burned-out shopper authenticity to better cement the relevancy of a brand's products or services.?
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Contributors: Head of Social Content and Engagement Strategy Cristina Lawrence, Senior Vice President Jerry Lawrence, Group Vice President Andrew McKernan, and Senior Vice President Tammy Pepito. At Razorfish, we help brands define their higher purpose—the emotional reason why they belong in people’s lives. Ready to find your purpose? Learn more here.
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