What they say: The study of over 1500 US consumers by market research firms Chadwick Martin Bailey and iModerate Research Technologies found that although 24% of consumers only made minor cutbacks to their spending during this economic downturn, another 33% who reduced their spending plan to continue with their new slimmed down budgets even during an economic comeback. The largest group is in the 43% of consumers who reduced their spending and have not yet decided if or to what extent they will go back to their old spending habits..
What We Say: Why we buy is becoming as important as what we buy. It makes sense that one of the categories that has taken a bit hit has been clothing and apparel, as shoppers, even those who are wealthy, are really evaluating their purchases. This is why the slew of new celebrity centered partnerships (Madonna’s line at Macys) may struggle- just having a famous name isn’t enough, it has to be good (hello, J.Lo).