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BizReport : Trends & Ideas : November 08, 2010

Forecast: 2011 will push consumers back to basics

The 2010 holiday season is upon us - it will be in about three weeks - and that means that many of us are already making plans for 2011. What can marketers expect from the New Year? What will consumers look for in 2011? CoreBrand's James Gregory makes three interesting predictions for 2011.

by Kristina Knight

corebrand.gifFirst, Healthcare. If you thought the healthcare debate was behind US consumers, think again. And this time the debate will extend to how and where consumers purchase medical supplies.

"Turmoil related to the healthcare reform will translate to turmoil in related industries like healthcare devices and pharmaceuticals," predicts James Gregory, CEO of CoreBrand. "The medical supplies and services industry has seen a decline in the importance of corporate brand. Pharmaceuticals and pharmacy services are also declining. I do not see this improving significantly in the coming year."

Second, consumer spending. Gregory expects consumers to continue their 'back to basics' approach which began with the 2008 recession. Modest growth seems to be the expectation for 2011, barring the beverage industry which may show a decline in 2011.

"Most consumers and businesses are focusing efforts on basics," said Gregory. "This is seen in the solidity of consumer staples industries such as the food which has been quite impressive. The apparel/shoe industry has been strong and should remain so in the next year. I predict the same for the toiletries/cosmetics industry."

To that end, consumers may not make as many hotel stays or vacation trips in the New Year.

Finally, Gregory expects the auto industry to bounce back - at least a little - because everyone in America drives.

"Motor vehicles have had only slight declines despite the extreme instability in the industry," said Gregory. "I see this industry improving as corporate brands become ever more important components to overall product branding strategies."

Tags: 2011 Forecast, 2011 predictions, 2011 Trends, CoreBrand, James Gregory

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