Indulgences still popular in crisis - but classics rule

Faith Popcorn is the CEO of Brain Reserve and has been at the forefront of transforming Fortune 500 brands since as far back as 1974. Working with clients such as BMW, Campbell's, Kodak, McDonald's, Avon, and many others, Popcorn's Brain Reserve has proven to be very popular with company's seeking to understand consumer trends and position their brands accordingly.

So, according to Brain Reserve, while consumers clearly want to cut down on spending, “they also prefer to purchase products that make them feel as if they are doing something to improve or to save the environment.” In addition, notions of self-improvement and environmental action seem to be tightly linked.

“The globally conscious consumer regards altruistic activities as a necessary part of self-improvement,” says Popcorn.

Neil Hobkirk, marketing director of one of South Africa's most vibrant global brands, Appletiser, concurs with Popcorn's views. “This is a trend we're picking up as well - more and more consumers are actively choosing brands like Appletiser. The drink is perceived as a healthy choice that is good for personal health, but it also fits with a broader consumer mindset that looks to 'go natural' wherever possible.”

“As Americans continue to struggle financially, some will look for ways to escape their everyday problems and to find economical ways to reward themselves,” says Popcorn. Here, iconic or well-established brands look likely to maintain or even strengthen their loyalty amongst consumers, while their less established rivals could be the ones to suffer at the hands of the global downturn.

“It's all about conscious health and value, isn't it?” says Hobkirk. “Global consumers are increasingly likely to choose very carefully which brands stay in the shopping trolley and which are sacrificed. Certainly this has been true with Appletiser. Across our global operations our experience is that consumers have become significantly more conscious of cost, health and the environment over the last 18 months, and so are more active in the way they shop. Fortunately our brand's legacy and identity fits very well with this shift - people buy Appletiser through good and bad times because it aligns with their perceptions of a conscious, positive product. This is quite a big shift from a few years ago, when consumers were definitely making less clearly defined purchase decisions.”

Appletiser is one of South Africa's most successful global brands and is clearly well positioned to take advantage of the global consumer's thirst for healthy alternatives. The brand is performing very well in the UK, supported by the successful launch of Peartiser (recent winner of the Best Juice Product at the World Juice Innovation Awards) and has an extensive presence across the global market. Appletiser and Peartiser's success in the UK is particularly noteworthy given the intense competition that characterises the global non-alcoholic beverage sector. The UK alone saw 120 soft drinks launched in 2006, while the global non-alcoholic beverage industry was valued at $79 billion in 2004. This stiff competition is intensified by the fact that brands need to compete against alcoholic and non-alcoholic beverages - from fizzy drinks to juices and water - alike.

So, is the careful, brand loyal consumer likely to be with us for a while?

“It looks like it,” says Hobkirk. “There are many forces at play across the global economy that indicate that consumers will continue to be very thoughtful about their purchase decisions. Whether this is for health, financial, or environmental reasons, it's clear that well-established brands with an authentic, natural identity will be best positioned for success.”