Village Solutions

Scratchies Take Me Away

Scratchies aren’t characters from The Simpsons. They’re what Aussies call scratch-off lottery tickets, and they are just one of the 21st-century equivalents of the lipstick that Depression-era women bought to brighten their lives.

It’s not only lipstick that’s enjoying a sales boost; women are turning to all beauty products for affordable indulgences. This category is booming in India, with some having just discovered makeup. (Good girls weren’t supposed to use cosmetics.) Now that it’s become acceptable to wear it, they’re not letting it go just because of the recession.

Global consumers are also finding solace in other treats. Chocolate is raising endorphins from Seoul to São Paulo. Argentineans can’t get enough of alfajores, dulce de leche sandwich cookies. 
The Japanese, especially women, are lining up for cakes and pastries. “Instead of going to cafes or dining out, people are spending more time at home,” said Takashi Iida, who manages the sweets section at Matsuya department store in Tokyo’s upscale Ginza shopping district. “Sweets are one way of making time at home more enjoyable.”

Consumer spending on most items has plummeted as Japanese grapple with their worst recession since World War Two. Department store data shows sales of women’s clothing declined for the 19th straight month in January and overall sales fell for 11 months running. But sales of sweets have risen for 25 months in a row.

Shoppers often line up for 30 minutes to buy a 1,200 yen ($12) Swiss roll.

In Swizterland the trend is the same.  Many shopper hold the sentiment, “We may not be able to buy luxuries any more, but we can still splurge on small pleasures like chocolate”.  It’s a sentiment that many share, and not just around Easter. While the credit crisis has slowed down sales of everything from cars to organic groceries, people seem happy to keep shelling out for chocolate. Last year, as the global recession was gaining ground, Swiss chocolate makers bucked the trend with record sales — nearly 185,000 tons, an increase of 2% over 2007, sold domestically and in 140 export markets.  Lindt, makers of the iconic golden bunnies, predicts its 2009 sales are likely to increase by between 2 and 5%.

The credit crunch is turning into a “credit munch” in the U.K., where biscuits with tea are “nonnegotiable treats” and sales of bubbly are popping.

If you can’t eat or drink it, wear it: Beautiful lingerie is a pick-me-up worldwide. Turkish women feel pretty in sexy stockings, which cost much less than new shoes.  “When pocketbooks tighten up, people are less likely to make large purchases like dresses or new outfits. Intimate apparel gives them the ability to buy something less expensive that makes them feel good: It’s an affordable indulgence.”

Mexican and French women get glam with costume jewelry, which is cheap and breaks easily but lifts the spirits.

And there’s the scratchie, the ultimate “lipstick” for men and women around the globe. After buying beer or chocolates at the convenience store, instead of taking the change, many consumers are asking for a few lottery tickets. Because along with comfort, consumers want fantasy — the dream that their circumstances could change, all for a few bucks.

Tags: chocolate, consumers, lingerie, recession, Retail, sales

This entry was posted on Wednesday, May 13th, 2009 at 6:58 am and is filed under Retail. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.