Cultural Creatives LifestyleCultural Creatives Lifestyleand LOHAS Marketsand LOHAS Markets

by Paul H. Rayby Paul H. Ray

Based on 15 years of researchBased on 15 years of research

– 150,000 (cum.) people surveyed150,000 (cum.) people surveyed

– 500 focus groups500 focus groups

– 60 in-depth, 4-8 hour interviews 60 in-depth, 4-8 hour interviews on life historieson life histories

The best market for LOHAS is The best market for LOHAS is THE CULTURAL CREATIVESTHE CULTURAL CREATIVES

50 million in United States 50 million in United States = 26% of U.S. Adults= 26% of U.S. Adults

80-90 million in European Union80-90 million in European Union= 30-35% of E.U. Adults= 30-35% of E.U. Adults

Total Disposable Income (After Taxes) Total Disposable Income (After Taxes) = $1.2 Trillion = $1.2 Trillion

United States Population, Year 2000United States Population, Year 2000

THE CULTURAL CREATIVESTHE CULTURAL CREATIVES

Driving customer force Driving customer force of the LOHAS Industries*of the LOHAS Industries*

*Lifestyles of Health and Sustainability*Lifestyles of Health and Sustainability

LOHAS SalesLOHAS Sales20002000 = $227 Billion = $227 Billion $2,000 per CC household$2,000 per CC household

Market Potential = $4-6,000/hhMarket Potential = $4-6,000/hh

THE CULTURAL CREATIVESTHE CULTURAL CREATIVES

LOHAS Industries in Year 2000:LOHAS Industries in Year 2000:1. 1. SSustainable Economyustainable Economy $76.5B$76.5B2. 2. HHealthy Lifestylesealthy Lifestyles 27.8B 27.8B3. 3. AAlternative Healthcarelternative Healthcare 30.7B 30.7B4. 4. PPersonal Developmentersonal Development 10.6B 10.6B5. 5. EEcological Lifestylescological Lifestyles 81.2B 81.2B

Total:Total: $226.8B$226.8BSource: Natural Business CommunicationsSource: Natural Business Communications

NMI’s* Key LOHAS SegmentsProduct Use + Attitudes

• LOHAS Users=32.3%=68 Million Adults

7%/year growth. Large concerns for family’s health, sustainability of planet , future of society, personal development

• “Nomadics” =39.2%=83 Million Adults

“Move from place to place” on product use and above concerns. Within these, 39% moving toward LOHAS, 15% away.

*Source: Natural Marketing Institute, 2002 Survey

NMI’s LOHAS: Values & Buying• “I will usually buy from a company

whose values are like my own.”

• LOHAS segment=90% vs. US=62%

• Socially Responsible Investor = 82%

• Green Building Products = 73%

• Interested in Hybrid Car = 67%

• Energy Efficient Electronics = 66%*Source: Natural Marketing Institute, 2002 Survey

ValueGraphicsValueGraphics• Values and Lifestyles Segments from Values and Lifestyles Segments from

Cultural Differences, NOT Psychographics, Cultural Differences, NOT Psychographics, NOT Individual DifferencesNOT Individual Differences

• Who has really changed their lifestyleWho has really changed their lifestyle

• Cuts across product benefit segmentations Cuts across product benefit segmentations

• Subculture implies Subculture implies allall psychological types: psychological types: smart/dumb, inward/outer, thinking/feeling, smart/dumb, inward/outer, thinking/feeling, good/bad, enlightened/regressive, etc. good/bad, enlightened/regressive, etc.

• As distinctive as French Canadians in As distinctive as French Canadians in QuebecQuebec

ValueGraphicsValueGraphics• A Subculture has different:A Subculture has different:

——Values Values = “My most important life priorities” = “My most important life priorities” Deeper than opinions, slower to changeDeeper than opinions, slower to change

——Worldview Worldview = “How the world really works. = “How the world really works. What’s real. What Life is all about”What’s real. What Life is all about”

——Lifestyle Lifestyle = “What to buy. How to live”= “What to buy. How to live”Reflects lifestyle differences across many Reflects lifestyle differences across many values-related product categories values-related product categories

•• Secular, materialistSecular, materialist

•• The big cityThe big city

•• Hip, up to dateHip, up to date

•• Style & efficiencyStyle & efficiency

•• Cary GrantCary Grant

•• Lauren Lauren BacallBacall

50%TRADITIONALS50%TRADITIONALS

•• Conservative, piousConservative, pious

•• Small town, countrySmall town, country

•• Square, out of dateSquare, out of date

•• Character, reliabilityCharacter, reliability

•• Jimmy StewartJimmy Stewart

•• June AllysonJune Allyson

The Culture Wars 50 Years Ago50% MODERNS50% MODERNS

There are 3 Subcultures Today

• TraditionalsTraditionals 24.5%24.5%

• Moderns Moderns 49.4%49.4%

• Cultural Cultural CreativesCreatives 26.1%26.1%Total: 100%Total: 100%

Source: 1999 Survey for US Government Source: 1999 Survey for US Government President’s Council on Sustainable DevelopmentPresident’s Council on Sustainable Development

What’s Important to Moderns• Make or have a lot of moneyMake or have a lot of money• Climb the ladder of success to your goalsClimb the ladder of success to your goals• Look good, be in style, dress for successLook good, be in style, dress for success• Be hi-tech, on top of trends, innovationsBe hi-tech, on top of trends, innovations• ““When the going gets tough, the tough go When the going gets tough, the tough go

shopping!”shopping!”• Lots of choices, as consumer, voter, boss, Lots of choices, as consumer, voter, boss,

workerworker• Economic and technological progressEconomic and technological progress• Reject Traditionals, Natives, ‘New Agers’Reject Traditionals, Natives, ‘New Agers’

What’s Important to Traditionals• Patriarchs should dominate families• Feminism is a swearword• Keep traditional men’s/women’s roles• Belong in family, church, community• Uphold conservative versions of their

own particular religious traditions• Keep up customary, familiar lifeways• Regulate sex: pornography, teen sex,

extramarital sex, and abortion

Cultural Creatives’Cultural Creatives’ Values Values

• Ecology, beyond environmentalismEcology, beyond environmentalism

• Planetary awareness & concernsPlanetary awareness & concerns

• Social responsibility & social concernsSocial responsibility & social concerns

• Authenticity: personal, business, politicsAuthenticity: personal, business, politics

• Relationships, & Helping othersRelationships, & Helping others

• Personal Growth, & SpiritualityPersonal Growth, & Spirituality

• Feminism, & “Women’s Issues”Feminism, & “Women’s Issues”

• Neither Left nor Right, but in Front!Neither Left nor Right, but in Front!

Three Preferred Cognitive Styles• TraditionalsTraditionals:: Fend offFend off a bad, complex, ill-

understood world. Black-and-white, good-and-evil, simple categories.

• ModernsModerns:: Tightly focused attentionTightly focused attention on what succeeds. Ignore side effects. No distractions. Linear analysis. “Inside the box” thinking.

• Cultural CreativesCultural Creatives:: SynthesizeSynthesize, take in from a wide range of sources. See the whole system. Can do Moderns’ analysis, but may not trust it. And in addition… My inner experience is valid.

Demographics Almost Useless for This Demographics Almost Useless for This Values Go DeeperValues Go Deeper

• Cultural Creatives slightly upscale: Cultural Creatives slightly upscale:

— — Avg. Income=$53,000 (US = $46,000)Avg. Income=$53,000 (US = $46,000)

— — 30% College Grad (US = 24%)30% College Grad (US = 24%)

• BUT wide range of income, education, BUT wide range of income, education, occupation (working class to wealthy)occupation (working class to wealthy)

• Close to national profiles on age, race, Close to national profiles on age, race, ethnicity, religion, region (5% more on ethnicity, religion, region (5% more on each coast)each coast)

Demographics Almost Useless for This Demographics Almost Useless for This Values Go DeeperValues Go Deeper

• BUT CCs = 60% women overallBUT CCs = 60% women overall• Core group (opinion leaders) are 67% Core group (opinion leaders) are 67%

women, or 2:1 women:menwomen, or 2:1 women:men• Women lead the emerging cultural changeWomen lead the emerging cultural change• Women’s views are becoming public for the Women’s views are becoming public for the

first time in recorded historyfirst time in recorded history• The CC women’s big complaint:The CC women’s big complaint:

““Where are all the good men?”Where are all the good men?”

The Cultural Creatives Story

It’s about floods of new information world-wide over last 40 years:

• Planetary environment/ecology

• Health beyond catastrophic medicine

• Organic food vs environmental-poisons

• Spiritual traditions from everywhere

• Nuclear, infotech, biotech, nanotech - all go from promise to threats

The Cultural Creatives’ Story

• It’s about women’s values and

concerns going public for the first time

in recorded history

• It’s about the role of the new social

movements and consciousness

movements in educating the Western

world over the past 40 years

Cultural Creatives’ LifestylesCultural Creatives’ Lifestyles• They dominate the markets for:They dominate the markets for:– Natural and Organic Products / FoodsNatural and Organic Products / Foods– Alternative / Holistic Health CareAlternative / Holistic Health Care– Eco-Tourism, Innovative TravelEco-Tourism, Innovative Travel– Socially Responsible Investments = $2 TrillionSocially Responsible Investments = $2 Trillion– Education and WorkshopsEducation and Workshops– Arts and CultureArts and Culture– Personalization of HomePersonalization of Home– Psychotherapy and CounselingPsychotherapy and Counseling

Cultural Creatives’ Lifestyles• Want to Buy, But Have Barriers:Want to Buy, But Have Barriers:– Ecologically Sustainable ProductsEcologically Sustainable Products– ‘‘Green’, Safe, Low to Mid-Price CarGreen’, Safe, Low to Mid-Price Car– Solar/Green Home + Master-Plan Solar/Green Home + Master-Plan

CommunityCommunity

– Good Education for Their Children

– Media That Respects Their Values

– Complementary Health Care & Insurance

– More Idealism/Spiritual Depth in the Arts

Cultural Creatives’ Lifestyles

• Media Habits:– Watch Half as Much TV (Don’t waste $$)

– Read Twice as Many Books– Listen to More Radio– Read More General Market AND More

Lifestyle Targeted Magazines– Just Now Catching Up on Internet Use

Will drill down on your website– Very Critical of the News Media

Cultural Creatives’ Lifestyles

• Creators & Consumers in Arts– Music, Literature, Magazines, Movies,

Videos, Arts & Crafts

– Attend workshops, art and crafts fairs, readings, showings — as amateurs

– A huge portion of professional artists & writers are Cultural Creatives

– The discerning, critical audienceThe discerning, critical audience

Cultural Creatives’ Lifestyles• Technology Moderates: Internet– Embraced it only when people-friendly– A lot of e-mail– Surf a lot less– Get specific information and get out– Hate chat rooms– Visit sites recommended by friends, IF

they fit their values– Will drill deep, IF they like your website

Cultural Creatives’ Lifestyles• Holistic Everything:– Mind, Body, Spirit need to be unified

– Mostly NOT New Agers, who are the beginners/duffers at personal growth

– Want help sorting out “fringey” stuff

– Buy books, magazines, tapes about it

– Original arts and crafts symbolize it– See the planet as a living being, and

all of humanity as one people

Marketing to Cultural CreativesMarketing to Cultural Creatives

1. Learn Their Language• Stories not bullet points• Lots of Evidence, few arguments• Personal experiences + evidence• Customer’s viewpoint,

not producer’s or expert’s• Spoken language among friends• Speak directly to their values• Connect to their larger concerns

Marketing to Cultural CreativesMarketing to Cultural Creatives 2. Be seen as a 2. Be seen as a Virtuous CompanyVirtuous Company, ,

with Virtuous Products and Serviceswith Virtuous Products and Services

• Be Transparent— Show who you are:

Your people, sources, practices, relationships to customers

— What makes you good for health and the environment?

— Increasing Trust Increases Sales

Marketing to Cultural Creatives

3. Do Relationship Marketing• Keeping Current Customers Costs 1/4 of

What Getting New Ones Costs• Transparency serves the relationship• Adopt their good causes = affinity marketing • Move toward Guerrilla Marketing, Word of

Mouth, Creating “Buzz”• Women (CC) customers want relationships

more than sexy features

Advertising and Information

• DO LESS General Media Ads or PR

—Confusing variety of articles

—They don’t help the relationship

—Ads are seen as intrusive, unwanted

• DO MORE Lifestyle Targeted Media Ads/PR

— Your best customers read eagerly

— You can add to relationships there

— Ads are cheaper

Advertising and Information• Educate with good information:

— Do anything for product experience

— Show lifestyle context of product use — Easy, cheap information = online— Give the ability to drill down easily— Tell them your criteria of good quality

• Any format that feels like personal recommendations from friends:— What basis would their friends use

for a recommendation?

Advertising and Information• Use a “No B.S.” Media Strategy:

— Simple Honesty/Full Disclosure

— Cut away advertising floss

— But also show many “virtue points”

• Show you are a “good citizen”:—Show who and where it comes from

—Transparent production process

—Disposal process is full cycle

CCs Past Growth Rate = 1-2% per Year for 40 Years.

• IF develop collective identity... • IF values & beliefs publicly visible• THEN, many Moderns would join up,

and CC growth would accelerate:

• Cultural Creatives could be half the U.S. in 10 years.

Paul H. Ray, Ph.D.Paul H. Ray, Ph.D.Consulting on Cultural CreativesConsulting on Cultural Creatives

101 Bishop Ct.101 Bishop Ct.Novato, CA 94945Novato, CA 94945

415-897-2894415-897-2894paulhray@aol.compaulhray@aol.com

paul@culturalcreatives.orgpaul@culturalcreatives.org