I think we all have memories of a parent scolding us and stating “why did you do get a D”. As independence seeking teenagers, our responses were generally defensive and short “I studied!” Imagine if our parents had changed a few words and asked “how did this happen”. Perhaps we would have retold the events causing us to not fully understand the material while simultaneously fostering more understanding between ourselves and our parents.

By simply asking what consumers like and why, we are only receiving a small glimpse of the story and possible creating a disconnect, just as our parents only saw one side of the situation. Projects and clients often require us to gather vast amount of information in a short time frame, making the collection of grocery sales based on household income and ZIP code necessary, but far too often we stop there instead of using this knowledge to dig deeper. While this information provides a great deal of information and a starting point it merely tells us what consumers are buying, not why. Discovering the how and why allows us to truly know our customers.

By asking why or what framed questions, people tend to give answers they believe the questioner/interviewer wants. Therefore, we tend to receive answers that sound logical and are even what we expected. This is why polls and surveys have too many variables. With the social media world providing a quick turn about on a large sample size, the holes in polls and surveys are being illuminated as questioners are finding that the time of day the survey is offered drastically changes the results.

So how does market research evolve? As an anthropologist, I am biased towards the anthropological method and therefore suggest we take a lesson from Claude Levi-Strauss and move beyond studying the mere content provided by polls, surveys and classic quantitative demographics to analyzing the structure – or connections accomplished through examining the sub-cultures of our consumers and engaging with them on a deeper level. With the economic meltdown, I believe we are seeing a drastic shift in consumer spending. Brands have to compete more for their consumers. Investing in more in-depth ethnographic research will enable them to build a stronger bond with their customers. For instance, in the wake of many luxury retailers closing shop in Japan I ask is Japan loosing prestige as a luxury retail destination or are the retailers not connecting with a changing mindset of its Japanese clientele. I argue that these luxury retailers are becoming too elusive and exclusive and the up and coming generation connects more and has more loyalty to brands they can relate to through events such as Tokyo Girls Collection.

A model waves to a fan during the Tokyo Girls Collection fashion show

National retail chains can hardly lead a re-imaging of the city, any more than bars and clubs, and especially not hotels with their ever expanding demand for publicly supported convention centers, stadiums and arenas to fill their rooms.  Likewise, chain stores occupying the latest version of an urban mall, once considered to be the panacea of an up and coming city, are now so risk adverse that they have long lost any real interest in downtown locations other than a handful of the most vibrant cities.

Suburban Malls

Suburban malls are all looking more than a little tired and desperate as they reach middle age without a clue on how to turn it around.  This is because the national chain stores, not shops, have lost all meaningful connection with their consumers, let alone their communities.  Most importantly, the consumer suffers from fatigue and overload after decades of consumption to only wake up with a post boom hang over to find home value significantly lower than a year ago and devalued 401K plans.

New Town Centers

New Main Street Themed Centers have done a good job of jettisoning the ubiquitous department store but have ultimately failed with their thinly veiled attempts at re-creation of real community and their almost clinical approach of merchandising with a store selection as original as a mall from twenty years ago, less the department store and the wise addition of restaurants.  But in almost every case the main street projects lack places of discovery, cultural production and any real original content.  But the day of reckoning may have arrived.  Suffering from almost two decades of overbuilding and a retail industry that has truly evolved to a commodity business, retail has become essentially a business of the most efficient means of distribution to the consumer at the lowest possible price.  In this context, the fountains, clock towers, and pubic greens only create a cost disadvantage over other channels.

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.