The following is an excerpt from MARKETING Digest Issue 8 on Big Tree’s take on advertising strategies for the ‘new normal’.
While the new normal suggests that society would prefer to remain at home, the human behaviour has proven opposite with the desire to travel, spilling in from the old normal
Throughout the MCO period, the perception of an economic downturn infused the lipstick effect, allowing the sustainability of small luxury brands as well as alternative indulgences for consumers to achieve supplementary comfort. Aggravated by this effect complemented with pent-up frustration of limited purchase options, the reopening of businesses during CMCO could foresee an escalation in sales as a result of revenge-spending.
“Our re-introduction into the society and partially returning to offices, new health guidelines and gathering directives that have been slightly eased, we are expected to spend a considerable time traveling and re-establishing connections.”
Furthermore, the hypothesis of frugality in financial management during the MCO period would be exhausted upon the emergence of society back into their near-regular purchase habits, precipitating the counter-cyclical human behaviour of frugal fatigue which has been translated into binge buying. Brands may expect growth in sales for Q3 and Q4, and as more countries would reopen their economies, a more conducive business environment could be established.