Brands need to figure out new status fixes

Mature consumer societies are changing, and an increasing number of consumers are no longer solely obsessed with owning the most, the best and the most expensive.

According to Trendwatching.com, in a traditional consumer society, where consumption is one of the leading indicators of success, those who consume the rarest and most expensive, have typically attained the highest status. This is why brands have, for decades, provided people with goods, services and experiences that help them impress their peers.

However, mature consumer societies are changing, and as consumers are starting to recognise and respect fellow consumers who stray off the beaten consuming-more-than-thou-path, 'new' status can be about acquired skills, about eco-credentials, experiences, generosity and connectivity. All of this makes for a far more diversified 'statusphere' than most brands and organisations have traditionally catered to. Hence it is important for brands to really figure out how and where their customers are now finding their status fix.

Chris Turner, Head of Research and Analysis, Trendwatching.com, told Emirates Business: "Consumers' concepts of status are 'moving with the culture'. This means that as the priorities of society change and diversify, so do the ways in which consumers can get their status fix. The new ways in which consumers are finding their status fix are tied to other consumer trends, showing that the concept of status is a motivation that lies behind all consumer behaviours and will change alongside them."

Talking about the strategy that brands need to adopt now, Aneesh Sharma, Strategy Consultant, Landor Associates, said: "Brands need to ensure they are based on a coherent strategy that makes sense to their target audience. A brand strategy that dwells on execution rather than concept is bound to have an expiration date. Instead, if a brand strategy is based on a compelling brand idea – a driver for all actions – the brand can adapt execution based on market needs, yet remain true to the promise that they have made to their customers.

"Looking at the new laws of luxury, every company that trades in status today won't necessarily be equipped for success tomorrow. However, if your brand is set up based on a strong idea that resonates with your target audience, you will be able to extend your brand into other categories that fulfill the same need for status."

Turner added: "The first priority for brands is to move away from an assumption that their customers' status is necessarily based on the old priority of bigger, better, consumption. Once they have done this, then they can begin to appreciate the diverse ways in which status is now being sought after. In terms of rethinking, brands must understand who their customers are trying to impress and the ways in which their product or service can help them to achieve this."

The new 'statusphere' offers brands a way to gain deeper understanding of their consumers, moving beyond traditional assumptions and instead appeal to their changing priorities. In addition, by recognising the importance of sharing their experiences and 'status stories', brands can explore new ways to build tribes of loyal consumers. The less visible the status symbol, of course, the more brands will rely on their customers to recount their experiences.

But that does not mean brands will relinquish all control of story telling. With an effective communication strategy that promotes story-telling and the usage of the right media channels, the brand can provide the desired framework in which customers can share their stories.

Sharma said: "If generosity is the new status symbol, will brands need to work harder to help their consumer-donors show and tell others about their donations and contributions. Certainly, but in a sincere way.

"Many companies already engage in CSR programmes, yet are hesitant to talk about them because they don't want to be seen as showing off. Brands need to develop a clear CSR strategy that fits with their overall brand and business strategy so that their actions are seen as credible. The easiest CSR initiative may not necessarily be the best for your brand image. If you are helping the community, don't be afraid to talk about it. Not only will you be recognised as the responsible citizen that you are, but also, you are likely to garner great support from your customers and business partners to further your cause."

Whatever industry you're in, in the end, everything is about status. And since what constitutes status in consumer societies is fragmenting, you need to start exploring new status symbols and stories with your customers.

The new status hits

These are the eight new status fixes that Trendwatching.com and Landor Associates say businesses need to keep an eye on: 

Luxury lust

Despite the changing 'statusphere', the traditional lust for luxury will never die as the recession is just a blip on the radar when it comes to the appetite of some consumers for expensive, in-your-face brands and products that feed off status anxiety. Even as conspicuous consumption subsides in mature consumer societies, businesses can count on the emerging middle classes in

China, India, Russia, South Africa, Turkey, Nigeria, Vietnam, Indonesia, Mexico and Brazil to pick up the slack. So luxury lust is definitely here to stay.

Generosity

The next big status symbol is generosity, as consumers are disgusted with greed and its current dire consequences for the global economy and long for institutions that care. This need for more generosity beautifully coincides with the ongoing (and pre-recession) emergence of an online-fuelled culture of individuals who share, give, engage, create and collaborate in large numbers. But what are the status-implications for non-profit organisations, and business-to-consumer brands big on giving initiatives? Work harder on helping your consumer-donors show and tell others about their donations and contributions. 

Green credentials

As entire societies have embraced sustainability in everything as the (only) way forward, and as millions of consumers are now actively trying to greenify their lives, green credentials are an endless source of status. The interest of consumers in green credentials

will lead to even more eco-friendly goods and services sporting bold, iconic markers and design, that help their eco-conscious owners show off their eco-credentials to their peers. 

Unconsumption

For an increasing number of consumers, the mere act of consuming less, or unconsumption is the greenest status fix of all. Needless to say that practitioners of unconsumption will heavily depend on status stories to make their low or no impact on the environment known to others.

In the know and skills

Growing pockets of consumers find pleasure in mastering skills and acquiring knowledge. They attain status from finding an appreciative audience that is impressed with what they know, and can create, instead of what they consume. To be on the inside, to be in the know, to have access, to be knowledgeable, but also, to be able to lead the way to the unique, the avant-garde, the cool, the latest, the cutting-edge. This is now an established source of status, from consumers-turned-experts to younger audiences obsessed with cool-hunting. 

Connectivity

First and foremost, when it comes to online status, it is all about who you connect to, and who connects to you, tribal style. It still is about being unique, but it is about belonging, too: belonging to tribes whose membership renders status to its members. Unlike in the 'offline world', these connections (in numbers and in profiles) are visible: friends and acquaintances are no longer the subject of awkward name-dropping, but are visible to all. We're talking friends on Facebook, Twitter followers and Retweets, the number of views for a photo on Flickr or a video on YouTube. These are all symbols and numbers that are associated with one's social status and that can be shared instantly and on a potentially large scale. 

Bling is over, enjoying life is not

Overt displays of wealth may not be a thing of the past in some circles, but it certainly is in the world of the über rich. This group is not obsessed with showing off how much they are worth. Instead, the focus of their enjoyment is not through bragging rights, but rather, through emotionally and personally fulfilling experiences. Whether it is spending time with loved ones in a private setting, or engaging in a different and memorable activity on their own, they are keen to enjoy the simple pleasures in life in diverse settings. 

Let me have it before anybody else

The need to be seen as a leader is what drives the ultra rich. There are so many fads that come and go. In fashion, design, technology, there are so many choices. Customers in this segment are most likely time poor, and as such, cannot invest in the learning process that we commoners are used to, and even relish. Think of your last big ticket purchase (home electronics, a car, or vacation). Thinking back, it is amazing how much time you probably spent learning, comparing, prioritising features. The AAA segment needs to cut to the front of the line here.

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