Consumers of the “Second Decade”: Have We Cycled Back?

As we plod into the first work day of the “second decade” (my placeholder moniker until I come up with something more clever), the 2010 data seems to indicate that everything old is new again, and the momentary return to consumer common sense may have passed:

·         In 2010, share of SUV sales to their highest level ever.  Sales of SUVs and trucks totaled 46.3% of all vehicle sales, the highest in the past eight years.   It remains to be seen if $3+ gas prices, along with the launch of the Volt and Leaf temper that trend.  Side note—the new Volt TV spot refers to it as “more than a leaf blower.”   Schwing!

·         The consumer savings trend may be at an end:  personal savings dropped from $622.8 billion in October to $614.8 in November.  This could be attributable to the increase in holiday spending, which was up 5.5% in 2010.  Or that we collectively decided it was just more fun to buy a new Kinect for the kids now rather than send them to college in a few years.

·         Dollar volume on cyber Monday was up a whopping 16% vs. YAG, fueled by a 6% increase in transactions and a 10% increase in average ticket.   Wonder what will happen if Amazon’s gift return shortcut takes hold (http://www.huffingtonpost.com/2010/12/29/amazon-patents-system-for_n_802402.html.  Could be ho-ho-horrible.

Despite a near 10% unemployment rate, the other 90% are voting with their wallets about their confidence in the economy.   Let’s hope this trend bodes well for us marketing folks who want to sell consumer things they don’t need, paid for with money they don’t have.