With all the bad news surrounding the economy, it’s easy to get swallowed up by the general feeling of doom and gloom. But does every cloud have a silver lining? Azam Marketing’s Senior Account Manager Karen Clayton takes a look at the success stories of the credit crunch.

In today’s hard times, it’s pleasing to hear that there are some business sectors who are actually enjoying a period of positive growth! 

LOVEFiLM have reported a 40% increase in subscriptions since January as more people choose to spend their Saturday nights on the sofa rather than going drinking/clubbing in town. Comedy DVDs are particularly in demand as customers seek to cheer themselves up and find a temporary escape from their economic woes.

The increased number of people staying indoors has also had a positive impact on fast food outlets such as Domino’s and Pizza Hut, who have stepped up to the mark by offering bargain meal deals to families and couples who might normally splash out on meals out at fancy restaurants.

Surprisingly, underwear sales are up for one of Azam Marketing’s clients, froggybank.co.uk. Based on a report released by the site showing underwear sales increased 2%, the Walletpop website in the United States published an article amusingly entitled When the economy gets tough, the Brits buy…bras? in which my colleague Nadeem is quoted. The theory is affordable luxuries and small treats are becoming more important as people cut back on more expensive purchases.

Perhaps most satisfyingly, the credit crunch has proven that even in tough times, love is not dead. Dating websites such as Match.com are seeing significant increases in traffic and site registrations as people opt to find love online rather than spending expensive nights out in pubs, bars and nightclubs in pursuit of a partner.

Shoppercentric, an independent agency specialising in shopper behaviour research, notes that almost nine out of ten households in the UK have made significant changes to the way that they shop for groceries in the past year. Trends noted in the report include:

  • 40% of people visiting shops that they previously wouldn’t have frequented
  • 27% of people choosing to shop locally in an effort to support small businesses and save on petrol costs
  • Budget supermarkets Lidl and Aldi seeing 22% and 21% (respectively) extra shoppers through their doors

Not everyone is saving, however. Although the majority of households are visibly tightening their belts, luxury retailers such as Cartier and De Beers have reported an increase in jewellery and diamond sales as wealthy customers opt to invest in trusted commodities.

With Mother’s Day around the corner, it will be interesting to see whether people will forego the expensive flowers and chocolates in favour of treating their mums to a budget day of treats instead! Mother’s Day has traditionally always been one of the busiest days for restaurants and pubs, but perhaps this year mothers can expect to receive a takeaway pizza at home and a handmade card instead?

Client News: A new product feed is available for Trust William on Webgains. The natural healthcare specialist, which has a 160 year history in the sector, has got the perfect gifts for Mother’s Day. Take advantage of huge 20% commission rate, a generous 120 day cookie, and fantastic voucher codes. Contact karen [at] azam.net for more details.

04 Mar

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