Targeting Emerging Consumer Segments The Recession-Proof Consumer

Introduction

Recession-Proof consumers have emerged from the recession without experiencing a negative effect on their lifestyle. As such, they represent potentially the most profitable segment for FS providers to target as economies emerge from recession. FS providers must therefore understand what these consumers want and how their Recession-Proof status may influence their behaviour.

Scope

*Using data from our global FSCI survey this report profiles the attitudes and behaviours of the emerging Recession-Proof consumer segment

*The report identifies these consumers and analyses the drivers of their future behavior

*The report provides concrete actions for FS providers to position themselves competitively in order to capture a share of the Recession-Proof wallet.

Highlights

Although increasing demographic complexities means that age segmentation has become over simplistic, more Recession-Proof consumers have emerged in younger age segments, so FS providers must capture them now as they plan for the future.

Recession-Proof consumers have been found to be significantly more receptive to financial advice than the average consumer. However, they have a more well rounded and financially intelligent approach to their research than the average consumer and therefore require a range of channels at their disposal through which to obtain advice.

Recession-Proof consumers' have generally happier than the average consumer, and but this has not led to complacency. Rather, they are motivated to take actions which maintain both their financial security (saving more) and lifestyle (spending more).

Reasons to Purchase

*Access the results of Datamonitor's Global FS Consumer Insight survey in order to profile this key emerging Recession-Proof segment.

*Identify why the Recession Proof consumers are potentially the most profitable segment and predict their future behaviors.

*Identify strategies you can take to effectively gain share of the Recession-Proof wallet.


Report Highlights

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Overview 1
Catalyst 1
Summary 1
Methodology 1
Table of Contents 2
Table of figures 3
Table of tables 4
Introduction 5
Customer segmentation is vital for an effective marketing strategy 5
The recessionary environment is forcing providers to make decisions 5
Identifying fads as opposed to long term trends is important when analyzing emerging consumer segments 5
Recession-Proof consumers are a valuable target for providers 5
The Future Decoded 7
Trend: Recession-Proof consumers are not distributed according to expected geographic and demographic patterns 7
Insight: Economic factors do not dictate Recession-Proof behaviors 7
Recession-Proof consumers are found in the fastest growing emerging markets 8
Brazilians recognize the reality of recession but remain optimistic 10
Consumer confidence in India is characterized by cautious optimism 10
Higher consumer confidence is reflected by a generally positive outlook among Chinese consumers 11
Russia has disproportionately few Recession-Proof consumers compared to other emerging economies 12
Perception gaps are particularly apparent when looking into the emergence of Recession-Proof consumers in the rest of the world 13
Insight: Recession-Proof consumers behave similarly across all demographics 14
Younger age segments appear to contain the most Recession-Proof consumers 14
Demographic distribution of Recession-Proof consumers is similar in all regions 16
Trend: Recession-Proof consumers have greater appetite for FS products 17
Insight: The difference between the Recession-Proof consumer and the average consumer is particularly obvious in savings behaviors 18
Instant access savings products are also the most popular other product held with the primary bank 19
Insight: Recession-Proof consumers will look outside their primary bank for their FS needs 20
Primary bank loyalty is relatively weak in developed markets 21
There is huge opportunity for other FS providers to capture share of the Recession-Proof wallet 21
Insight: Recession-Proof consumers use a variety of sources for advice 22
Recession-Proof consumers can afford professional advice but still shop around for the best deals 22
Insight: Recession-Proof consumers are more trusting of the FS industry than the average consumer 23
Recession-Proof consumers have had less negative experiences 24
Trend: Recession-Proof consumers' future actions are aligned with their optimism 25
Recession-Proof consumers are generally happy - across all elements of their lives 25
Insight: Despite being economically secure they are not lazy with their finances 26
Recession-Proof consumers are motivated to take action in order to maintain their financial security 26
Recession-Proof consumers also plan to maintain their quality of life whilst remaining Recession-Proof 27
Action Points 28
Action: Emerging markets can provide valuable lessons for FS providers 28
Yes Bank is has been a key innovator in the Indian banking sector 28
Improve the in-branch experience is reflected in Western banking strategies 30
Action: Understand the value of Generation Y 32
Action: Focus marketing efforts on product value and financial security 33
Provide multiple channels for financial advice 33
Target Recession-Proof consumers for savings, pension and life insurance products 33
Action: Datamonitor's Megatrend Framework can help identify strategies for targeting this segment 34
Recession-Proof consumers desire elements of the Connectivity Megatrend in their financial needs 34
Experiment more boldly with Web 2.0 technology 35
Ethical consumerism is a key component of the Connectivity Megatrend 36
Capture Recession-Proof consumers through highlighting the Convenience of the offering 37
Individualism is invaluable to the Recession-Proof segment 37
APPENDIX 39
Data tables 39
Definitions 44
The Datamonitor Financial Services Consumer Insight Megatrend Framework 44
Authenticity 44
Comfort 44
Connectivity 44
Convenience 45
Individualism 45
Wellbeing 45
Demographic Complexity 45
Financial Intelligence Complexity 45
Lifestage Complexity 45
Wealth Complexity 45
Methodology 46
Further reading 47
Ask the analyst 47
Datamonitor consulting 47
Disclaimer 47
List of Tables
Table 1: Recession-Proof and non Recession-Proof consumers segmented by country 39
Table 2: Recession-Proof and Non Recession-Proof consumers, segmented by age 39
Table 3: Recession-Proof consumers segmented by region and age 40
Table 4: Proportion of Recession-Proof consumers and global consumers with two or more financial service products 41
Table 5: Levels of product holding for each other product held with primary bank 41
Table 6: Number of non-current account products held by Recession-Proof consumers with primary bank, by region 42
Table 7: Drivers of financial decision making for Recession-Proof consumers and the average global consumer 42
Table 8: Indicators of trust for Recession-Proof consumers and the average global consumer 43
Table 9: Expectations for the next 12 months for Recession-Proof consumers and the average global consumer 43
Table 10: Actions over the next six months for Recession-Proof consumers and the average global consumer 44
List of Figures
Figure 1: Most Recession-Proof consumers are based in China, Brazil or India, although Russia is an anomaly 8
Figure 2: The distribution of Recession-Proof consumers in BRIC appears to correlate with the economic impact of the recession on those countries 9
Figure 3: The 18-24 age segment contains the highest proportion of Recession-Proof consumers 15
Figure 4: Distribution of Recession-Proof consumers by age segment is similar in all regions 17
Figure 5: Levels of product holding are higher amongst Recession-Proof consumers for all products in comparison to the global consumer 18
Figure 6: Holding levels of non-current account products with the primary bank are lower amongst Recession-Proof consumers 20
Figure 7: Asia Pacific Recession-Proof consumers show the least primary bank loyalty 21
Figure 8: Recession-Proof consumers seek financial advice from a wide variety of sources 23
Figure 9: Recession-Proof consumers are more trusting than the average consumer 24
Figure 10: Recession-Proof consumers are far more optimistic on all accounts in comparison to global consumers 25
Figure 11: Recession-Proof consumer intend to take actions which will keep them Recession-Proof 27
Figure 12: YES Bank has been technologically innovative in its branch design 30
Figure 13: Barclays pilots Microsoft Surface technology in its concept branch, launched in December 2008 31
Figure 14: Harnessing new connective technologies such as Twitter will help engage younger Recession-Proof consumers 36
Figure 15: Virgin's Climate Change ISA is a prime example of ethical and green credentials 37

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List of Tables
Table 1: Recession-Proof and non Recession-Proof consumers segmented by country 39
Table 2: Recession-Proof and Non Recession-Proof consumers, segmented by age 39
Table 3: Recession-Proof consumers segmented by region and age 40
Table 4: Proportion of Recession-Proof consumers and global consumers with two or more financial service products 41
Table 5: Levels of product holding for each other product held with primary bank 41
Table 6: Number of non-current account products held by Recession-Proof consumers with primary bank, by region 42
Table 7: Drivers of financial decision making for Recession-Proof consumers and the average global consumer 42
Table 8: Indicators of trust for Recession-Proof consumers and the average global consumer 43
Table 9: Expectations for the next 12 months for Recession-Proof consumers and the average global consumer 43
Table 10: Actions over the next six months for Recession-Proof consumers and the average global consumer 44

List of Figures
Figure 1: Most Recession-Proof consumers are based in China, Brazil or India, although Russia is an anomaly 8
Figure 2: The distribution of Recession-Proof consumers in BRIC appears to correlate with the economic impact of the recession on those countries 9
Figure 3: The 18-24 age segment contains the highest proportion of Recession-Proof consumers 15
Figure 4: Distribution of Recession-Proof consumers by age segment is similar in all regions 17
Figure 5: Levels of product holding are higher amongst Recession-Proof consumers for all products in comparison to the global consumer 18
Figure 6: Holding levels of non-current account products with the primary bank are lower amongst Recession-Proof consumers 20
Figure 7: Asia Pacific Recession-Proof consumers show the least primary bank loyalty 21
Figure 8: Recession-Proof consumers seek financial advice from a wide variety of sources 23
Figure 9: Recession-Proof consumers are more trusting than the average consumer 24
Figure 10: Recession-Proof consumers are far more optimistic on all accounts in comparison to global consumers 25
Figure 11: Recession-Proof consumer intend to take actions which will keep them Recession-Proof 27
Figure 12: YES Bank has been technologically innovative in its branch design 30
Figure 13: Barclays pilots Microsoft Surface technology in its concept branch, launched in December 2008 31
Figure 14: Harnessing new connective technologies such as Twitter will help engage younger Recession-Proof consumers 36
Figure 15: Virgin's Climate Change ISA is a prime example of ethical and green credentials 37
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