Consumer Catharsis
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"As in previous recessions, we've seen increased participation in and spending on food gardening as people look for ways to economize," said Bruce Butterfield, research director for the association. "That said, these results suggest the interest in food gardening may continue to increase, even after the economy improves."
With apparel sales declining, interest in sewing is on the rise. The Sewing & Craft Alliance, based in Monroeville, Pennsylvania, estimates that there are 35 million home sewers in America, up from 30 million in 2000. And New York-based Scarborough Research surveyed more than 200,000 people last year and found that 27 percent of women favored sewing as a leisure activity.
"People are likely to spend less money on designer jeans during the recession, and instead they purchase more affordable jeans, or they try to preserve the old ones, which leads to higher demand for sewing machines and accessorizing tools by consumers," according to RecessionInfoCenter.com, a website wholly dedicated to the current economic downturn.
In the entertainment sector, movie theater tickets and DVD rentals have spiked: Netflix Inc. said in January its fourth-quarter profit jumped 45 percent to $22.7 million from a year earlier, along with sales growth of 19 percent to $359.6 million. The number of subscribers climbed 39 percent to 9.4 million for the period. And the company revealed last month that it had passed 10 million subscribers, including 600,000 net subscribers since January 1.
Box office movie revenues through March 1 reached $1.9 billion, a 17.3 percent increase from the same period a year ago, according to Hollywood.com's Media By Numbers. Attendance has risen by almost 16 percent, compared with the same period last year.
"We've seen momentum building since Christmas," said Paul Dergarabedian, box office analyst for Hollywood.com. "It was the beginning of this real fervor, a real excitement by people to go to the movies. They're looking at it as a guilt-free pleasure that's not going to break the bank. And it gives them a couple hours of relief from the outside world, which is—to put it mildly—rather challenging right now."
So much of the fare is escapist. Top-grossing movies this year include Paul Blart: Mall Cop, He's Just Not That Into You, and Watchmen.
"These don't have to be Academy [Award]-worthy films here," Dergarabedian said. "They just need to deliver a great experience for consumers. Now more than ever, that movie ticket has to have value."
And those tickets could amount to a huge summer at the box office, with potential blockbusters such as X-Men Origins: Wolverine, Star Trek, Terminator Salvation, and Transformers: Revenge of the Fallen set for release. "We could be looking at the first $10 billion year," Dergarabedian said.
However, the industry as a whole is feeling the effects of the recession. "Moviegoing may be up, but it's been hard to get financing for movies," he said. "Staffing is being cut back, costs are being trimmed."
Movie theaters have been offering deals and specials with their snacks and meals, in order to entice consumers to spend a bit more for their experience. AMC Theaters, for example, has a number of discount offers on its website, while Landmark Theaters offers discounts on its snacks when using a Visa Signature card.
"People do love a good bargain," Dergarabedian said.
Experts said the trend toward fundamentals should convey a message to companies navigating the challenges of economic turmoil: Don't abandon the core customer or the core message and put as much emphasis as possible on value.
"Brands need to convey in different ways that companies have the consumers' best interest at heart. Firms…have to make a profit, but you have to have your consumer at the forefront," said Gerald Zaltman, professor emeritus at Harvard Business School. "Right now, you have to connect and demonstrate how your company, how your brand, offers a positive experience for your consumer.
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