1. Good Enough Generation:The Rise of the Have-NotsFUTURE SIGNS
GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
2. Change in global economy is creating anew reality for many
forming a greatergulf between aspiration and reality. Banksy Street
Art Instillation Sorry! The lifestyle you ordered is currently out
of stock.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
3. Turbulent TimesAs the 2011 riots in London and the rest of
Europe seemed to show, the profound gulfbetween haves and have-nots
has been intensified by the inequalities of a society obsessedwith
consumption.The Occupy movement can be seen as the manifestation of
public frustration towards thedisparity of wealth
distribution.Economic imbalances and social inequality risk
reversing the gains of globalization. Analysis of linkagesacross
various global risks reveals a constellation of fiscal, demographic
and societal risks signaling adystopian future for much of
humanity. Both young and old could face an income gap, as well as a
skillsgap so wide as to threaten social and political stability.
[1] - World Economics Forum Global Risks Report 2012.FUTURE SIGNS
GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
4. The Stifled GenerationThe current generation of young people
are the first generation in over 100 years to beunlikely to do as
well as their parents.Recent Financial Times research showed that
for the first time since official householdincome data were
collected, disposable incomes of householders in their 60s
haveovertaken those of householders in their 20s.If these
generational imbalances persist and are not properly addressed
there is a growingrisk of alienating the younger generations.You
cant honestly say to younger people any longer, youll do better
than your father or mothersgeneration. This trend has been
developing over a number of years and politics as a whole has
beenlagging behind and has not focused on it. [2] - Alistair
Darling, former Labour Chancellor.FUTURE SIGNS GOOD ENOUGH
GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
5. The Stifled Generation Median household disposable incomes (
per week, 2009-10 prices, before housing costs, incomes adjusted
for household size) The jinxed generation 500 The first generation
not to have higher living standards than those born The baby boom
generation 10 years earlier Gradually entering retirement far
1985-94 1945-54 better off than any previous generation. But had a
tough time in their 20s in the high inflation 400 1970s 1985-94
1965-74 1955-64 300 1935-44 200 1925-34 1905-14 1915-24 1895-1904
The council house purchasers A generation that was squeezed in the
1960s and The surviving wealthy 1970s but really found their The
Beveridge beneficiaries Now predominantly in their The elderly poor
100 prime in their 40s under Now around 80, his group was the 90s,
rising median incomes of Now no longer with us, those Margaret
Thatcher first to benefit significantly in this group in old age
reflects born around the turn on the retirement from the postwar
differentil mortality. Poorer last century found old age welfare
state as envisaged in the pensioners tend to die before came with
meagre living 1942 Beveridge Report richer ones standards. Their
plight has defined political attitudes to the old 0 21 22 24 26 28
30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72
74 76 78 79 Sources DWP;IFS;The UK Data Archive Age of head of
household [3]FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE
+ PARTNERS 27.4.12
6. Decline in Living StandardsAs governments across Europe and
around the world react to the continuing [6]financial crisis,
experts are predicting that families will feel the squeeze in
livingstandards for years to come.The Institute For Fiscal Studies
predicts a lost decade for UK living standards.The current economic
downturn began more than three years ago, but as in otherdeveloped
countries, the most severe consequences of the recession on UK
living standardshave only just begun to be felt, and will continue
to be felt for years to come. [4] - Robert Joyce, Research
Economist at IFS. Fall in UK median netThe squeeze in living
standards is the inevitable price to pay for the financial crisis
and household income of 3.5%,subsequent rebalancing of the world
and UK economies. [5] the largest single-year drop since 1981,
returning it to - Mervyn King, Governor of the Bank of England. its
2003-04 level.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE
+ PARTNERS 27.4.12
7. A New Normal: Good Enough PhilosophyFamilies must learn to
adapt to having less money in the future by embracing a goodenough
approach to living.Frugality, creativity and embracing community
are emerging as new coping strategies.The good enough lifestyle
although perhaps forced on some as a consequence ofeconomic turmoil
could prove enlightening, as consumers question the value of
quality,realizing the difference between want and need.Dont believe
the myth of quality. [7] - Clay Shirky, Professor of New-Media
Studies at New York University.FUTURE SIGNS GOOD ENOUGH GENERATION
LOWE COUNSEL LOWE + PARTNERS 27.4.12
8. Good Enough GenerationThe good enough generation centers
around themes such as austerity, value andsustainability. These are
people in Western Europe and North America who are strugglingto
make their rent payments and afford the lives they hoped for.Making
up one of the US and Europes biggest battler income groups, the
good enoughgeneration have been neglected by most brands.The number
of payday loans has quadrupled in the past three years as families
strugglewith stagnant wage growth, unemployment and rising
costs.According to Shelter, the homeless charity, nearly 1 million
people took out expensive,short-term loans in the UK last year in
order to meet housing costs.Payday lending is now a multibillion
pound industry with lenders employing big advertising
andsponsorship budgets. [8] - Sarah Brooks, Director at Consumer
Focus.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
9. Back to BasicsAs disposable incomes diminish, consumers will
alter their spending behaviors to cope.Companies like P&G say
many of its former middle-market shoppers are trading down
tolower-priced goods.With this demographic identified as a growing
consumer group, we will see a revival oftraditional and
back-to-basic products, which perform their desired function and
providea low cost alternative to premium.P&Gs signature white
soap, Ivory, is being re-packaged after 132 years, with the
sameproduct and the same brand message: pure, clean &
simple.Theres never been a better time to relaunch this. There is
so much tail wind at our back: the economicenvironment, this trend
of getting back to things that work, and reminding us of a time
when things werea bit simpler. [9] - Kevin Hochman, P&G
Marketing Director.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL
LOWE + PARTNERS 27.4.12
10. The Rise of the Store BrandThe popularity of store brand
products has risen dramatically. This is indicative of the factthat
people are starting to dissociate store brands from the poor
relation and themisconception that cheaper means less
quality.Theres an increasing polarity in shopping behaviour
consumers want luxury in certain products, suchas premium meat, but
then look for value for the household commodities, just as affluent
consumers willbuy value fashion to accessorize a designer outfit.
[10] - Jonathan de Mello, Director of Retail and Property at
Experian.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
11. Rise of the Pound ShopWith consumers being squeezed the
hardest for a generation and many retailers beingforced to close
stores, Pound Shops and other forms of discount outlets have
stepped in tofill the void.Costcutter is to support the revival of
the Kwik Save brand onto the nations high-streetsthis year.14.2%
increase in pound shops taking the total to 3,005 (In the year to
the end ofOctober).Poundland posted a record turnover of 642m in
2011, up 26%.People used to be quite snobby about where they
shopped. Now it doesnt matter. You find people of allsocial
backgrounds going to pound shops. Its seen as savvy and clever to
find a bargain. [11] - Neil Saunders, Retail Analyst at
Verdict.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
12. Budget Sector RevivalThere is renewed growth and creativity
in budget sectors across the categories.In travel, examples like:
Off Track Planet have launched a travel magazine catering tothe
18-30, low-budget travel audience, providing an edgy guide to
getting the most outof some of the worlds most famous cities on the
cheap.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
14. Cool CouponingCoupon redemption is now beeing utilized by
the middle markets as smart, savvyshopping has become the new
cool.Online and mobile access is rejuvenating public conceptions of
coupons, with companiessuch as Foursquare and Groupon adding the
elements of sociability and fun to discountswhilst making them so
easily accessible that it seems almost silly not to use them.In
July 2011, American Express launched its Link-Like-Love social
commerce program,a free service providing AMEX cardholders relevant
deals and experiences based ontheir likes, interests and social
connections on Facebook.With consumer confidence flat, unemployment
rates still a challenge and prices for most consumableson the rise,
its now cool to be frugal to shop smartly. And, coupons are the
vehicle consumers areusing to do just that. [12] - Bob Carter,
President of Inmar Promotion Services.The middle class appears to
be shrinking while the lower-classes are growing, and members of
themiddle class seem to be engaging in thrift behaviors as an
adaptive strategy under conditions ofdownward mobility. [13] - Todd
Goodsell, Professor of Sociology at Brigham Young University.FUTURE
SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS
27.4.12
15. New Era of Budget TravelWith many now claiming that the
train is for the rich, we are seeing the growingpopularity of coach
travel. National Express says its coaches business is likely to
winmarket share from rail as cash-strapped consumers seek cheaper
means of travel.The new Megabus customer is more suburban and
middle-class, older and wealthier thanin the past.The railway is
already relatively a rich mans toy. People who use the railway on
average havesignificantly higher incomes than the population as a
whole - simple fact. [14] - Philip Hammond, UK Transport
Secretary.[Peoples] primary reason for use is convenience and
price, but theyre also happy that it only uses twopints of fuel per
passenger to go from Washington to New York, and people are pretty
excited aboutthat. [15] - Sir Brian Souter, Chief Executive of
Stagecoach.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
16. Good Enough Auto Expect to see a huge rise in small, cheap,
good enough automobiles as the automotive industry recognized that
catering to the good enough generation is key to future growth.
Examples like the Mobius One SUV in Africa and the Tata Nano
notoriously known as the worlds cheapest car focus on minimizing
each component of the cars design so that it can provide a
functional yet inexpensive form of travel. The real genius is
building it to Indian requirements, which means you have to shave
costs but still deliver value for money. Its a perfect car for our
age. [16] - Hormazd Sorabjee, Editor of Autocar India.FUTURE SIGNS
GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
17. New Ways to Access Premium and LuxuryFlash deals from
online companies such as Gilt Group are making luxury
consumptioneasier and more accessible to everyone.High Fashion
designer, Narcisco Rodriguez recently created an exclusive
collection forRent the Runway a popular online retail site in New
York which rents designer outfitsand accessories for up to 90% of
retail price.The definition of luxury is moving away from
connotations of excess and conspicuousconsumption, and now means
products with higher perceived value and increasedpracticality.The
economy has dictated that its no longer fashionable to make sure
everyone knows what brandyou carry or wear. [17] - Robert Bergman,
President of Bergman Associates (a luxury branding and advertising
company).We are working on a lot of amazing ideas which are all
about making luxury affordable and accessible.Exclusivit is very
dmod. [18] - Karl Lagerfeld, Creative Director of Chanel and
Fendi.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE +
PARTNERS 27.4.12
18. New Ways to Access Premium and LuxuryDropping the ladder of
accessibility: a new kind of luxury food experience is
emerging,which is grounded by the importance of local chefs,
purveyors and producers allowinglocals to experience haute cuisine
at a fraction of the price.The Bootstrap Company recently teamed
with Nuno Mendes, chef of the Michelin starawarded restaurant
Viajante, to create The Long Table to create a pop-up, outdoor
foodmarket in Dalston, which offers a hand-picked selection of
Londons finest street foodsfrom a roster of top food vendors,
including five-star steakhouse Hawksmoor.There remains a tribe of
well-to-do, recession-proof rich people who continue to seek out
premiumgoods. But the masses are now pulling back in the face of
rising unemployment and growing economicgloom. And for these
consumers we must learn not to reach for the stars but rather to
drop the ladderof accessibility. [19] - Mark Ritson, Columnist for
Marketing Week. The Long Table Food Market.FUTURE SIGNS GOOD ENOUGH
GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
19. D-I-Y EverythingD-I-Y is continuing to serve as a
pro-active approach to saving money with people lookingat more
creative areas and methods for D-I-Y innovation.From Craft Ales to
Bespoke Spirits, the world of alcohol is the latest sector to go
DIY.Examples like Housewine designer Sabine Marcelis scaling down
the production ofwinemaking by creating a winemaking kit suitable
for the home.Lindsey Adelmans You Make It DIY Chandeliers a series
of lights designed withstandard industry parts for you to build
with downloadable assembly instructions area creative alternative
for providing price conscious consumers with access to
otherwiseexpensive product lines.In an era of reignited interest in
DIY and handicraft skills, Adelmans concept provides a
uniqueperspective on design and affordability, by placing
manufacturing in the hands of the end user. [20] Stylus Desire for
Change Seminar.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL
LOWE + PARTNERS 27.4.12
20. D-I-Y EverythingRed Stripe introduced its Make Something
From Nothing by launching Yuri Suzukissound installation piece a
soundsystem made entirely out of salvaged Red Stripe cansfrom last
years Notting Hill Carnival.FUTURE SIGNS GOOD ENOUGH GENERATION
LOWE COUNSEL LOWE + PARTNERS 27.4.12
21. RIY (Repair-It-Yourself)Repair-it-yourself has also become
a burgeoning trend.Addressing the shortcomings of traditional
shoemaking and questioning the sustainabilityof our consumption
habits, Eugenia Morpurgos Repair It Yourself canvas shoe concept
isspecifically designed for disassembly and repair.Technology Will
Save Us is an alternative education space dedicated to helping
people torepair electronic products and not just consume
technology.We are moving people from a place where they are not
very empowered, to one where they canincrease the lifespan of
products themselves. [21] - Richard Chinn, Team Expert at
Technology Will Save Us.FUTURE SIGNS GOOD ENOUGH GENERATION LOWE
COUNSEL LOWE + PARTNERS 27.4.12
22. Innovation with Inexpensive MaterialsIn keeping with the
times, designers are exploring ideas through the lens of utility
andmanufacturing with an emphasis on low-cost or recycled
materials.Confetti Systems, a creative design initiative,
transforms low-cost, simple materials suchas tissue into
interactive objects by means of handmade production into
installations andsets for fashion and music brands.The Scavenging
Device part-recycling unit and part-moulding machine transforms
oldplastic into a malleable material, which can then be formed into
new objects such asdinnerware.01M OneMoment, designed by Figtree
Factory Studio, is a completely biodegradable shoemeasuring only
1mm thick around the foot and retails at 10 EURO per pair.In a weak
economy designers are seeking inexpensive materials, processes and
techniques to workwith on low budget commissions. Using dollar
store items or whats around designers aretransforming cheap
materials into objects of value. [22] - Stylus Desire for Change
Seminar. The Scavenging DeviceFUTURE SIGNS GOOD ENOUGH GENERATION
LOWE COUNSEL LOWE + PARTNERS 27.4.12
23. Innovation with Inexpensive MaterialsIkea have recently
developed a digital camera made from cardboard embracing
simple,inexpensive design as a reflection of the basic
functionality of the product.The no zoom 2.3 megapixel camera is an
interesting demonstration of how simplicity candeliver innovation
without high cost. [23]FUTURE SIGNS GOOD ENOUGH GENERATION LOWE
COUNSEL LOWE + PARTNERS 27.4.12
24. Good Enough SolutionsThe Standard bought The Cooper Square
Hotel in 2011, and their quick fix pre-renovation design solution
has been to put Standard stickers over every single logoin the
building.This creative good enough approach to corporate design
reflects changing tastesand attitude.FUTURE SIGNS GOOD ENOUGH
GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
25. 1. World Economic Forum. (2012). Global Risks 2012 Seventh
Edition. Available: http://reports.weforum.org/global-risks-2012/
2. Chris Giles and Sarah Neville. (2012).Rift grows between old and
young. Available:
http://www.ft.com/cms/s/0/7831bd68-6f56-11e1-b368-00144feab49a.html#axzz1qPeixrpz
3. Chris Giles. (2012). Generations see fortunes reversed.
Available:
http://www.ft.com/cms/s/0/868b3520-6eba-11e1-b1b2-00144feab49a.html#axzz1qPeixrpz
4. Robert Winnett. (2011). Living standards to suffer as effects of
recession bites. Available:
http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/8756479/Living-standards-to-suffer-as-effects-of-recession-bites.html
5. BBC. (2011). Mervyn King says pay squeeze necessary. Available:
http://www.bbc.co.uk/news/mobile/business-12282405. 6. BBC. (2011).
IFS study: UK household budgets face 10-year squeeze. Available:
http://www.bbc.co.uk/news/mobile/business-12282405. 7. Robert
Capps. (2011). The Good Enough Revolution: When Cheap and Simple Is
Just Fine. Available:
http://www.wired.com/gadgets/miscellaneous/magazine/17-09/ff_goodenough?currentPage=all.
8. Tara Evans. (2012). OFT launches probe into payday lending.
Available:
http://www.thisismoney.co.uk/money/cardsloans/article-2105877/OFT-launches-probe-payday-lending-sector-protect-people-financial-difficulty.html
9. Sheila Shayon. (2011). Ivory, at 132, Freshens Up. Available:
http://www.brandchannel.com/home/post/2011/10/05/Ivory-Freshens-Up.aspx
10. NACS. (2010). Pound ($1.62) Stores Rise Toward A Ceiling.
Available:
http://www.nacsonline.com/NACS/News/Daily/Pages/Archive/ND0126103.aspx
11. Esther Bintliff. (2010). Pound stores rise towards ceiling.
Available:
http://www.ft.com/cms/s/cdd4dd04-077f-11df-915f-00144feabdc0,Authorised=false.html
12. Joey Ferguson. (2012). Wealthy, educated more likely to coupon
than poor, uneducated. Available:
http://www.deseretnews.com/article/865551160/Wealthy-educated-more-likely-to-coupon-than-poor-uneducated.html
13. Eve Tahmincioglu. (2012). Towns outlawing extreme garage sales.
Available:
http://lifeinc.today.msnbc.msn.com/_news/2012/04/17/11230133-towns-outlawing-extreme-garage-sales?lite.FUTURE
SIGNS GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS
27.4.12
26. 14. BBC. (2011). Trains are a rich mans toy, says transport
secretary. Available:
http://www.bbc.co.uk/news/uk-politics-14904610 15. Rose Jacobs.
(2011). Megabus eyes US expansion. Available:
http://www.ft.com/cms/s/0/7f9b6322-1e68-11e1-bae4-00144feabdc0.html#axzz1qPeixrpz
16. Randeep Ramesh . (2009). Tata Nano: Worlds cheapest car is
Indias answer for cash-strapped drivers. Available:
http://www.guardian.co.uk/business/2009/mar/24/tata-nano-worlds-cheapest-car
17. Blue Carreon. (2011). How The Uncertain Economy Is Changing The
Definition Of Luxury. Available:
http://www.forbes.com/sites/bluecarreon/2011/11/15/how-the-uncertain-economy-is-changing-the-definition-of-luxury/
18. Olivia Bergin. (2011). Karl Lagerfeld to launch new, accessible
line. Available:
http://fashion.telegraph.co.uk/news-features/TMG8846242/Karl-Lagerfeld-to-launch-new-accessible-line.html
19. Mark Ritson. (2011). A new era: accessibility now trumps being
premium. Available:
http://www.marketingweek.co.uk/a-new-era-accessibility-now-trumps-being-premium/3031105.article
20. Stylus. (2011). Desire for Change Seminar. Available:
http://www.stylus.com/ * RedStripeLager [Vid]. (2012). Red Stripe -
Make a speaker with Yuri Suzuki. Available:
http://www.youtube.com/watch?v=IaQ1_RcMVrY 21. Technology Will Save
Us. (2012). Available: http://technologywillsaveus.org/ 22. Stylus.
(2011). Desire for Change Seminar. Available:
http://www.stylus.com/ 23. Ikea Knappa Camera [Vid]. (2012).
Available: http://www.youtube.com/watch?v=0hBq8A3XLIEFUTURE SIGNS
GOOD ENOUGH GENERATION LOWE COUNSEL LOWE + PARTNERS 27.4.12
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