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Ten Things We're Still Buying
Posted 03-12-2009 11:53 am by

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Consumer spending may be at all-time low, but there are plenty of things people can't seem to live with out. Hey, Big Spender, are you out there? You must be, since December 2008 sales amounted to $343.2 billion. What did you buy?

Shopping bags are still needed! While retailers suffer from shoppers changing their behaviors during recessions (mainly by abandoning brand loyalty), says Lindstrom, "There are certain things people won't give up."

Personal care is one of them. That vast category includes everything from shaving cream to perfume to hairspray. From November 2007 to November 2008, U.S. sales of shampoo, acne treatments, skin care gift sets and grooming products increased by 18%, 14%, 11% and 15%, respectively, according to Karen Grant, senior beauty analyst at Port Washington, N.Y.-based market-research firm NPD Group.

Consumer confidence is at its lowest point in history and, according to a Jan. 14 report released by the Commerce Department, retail sales were down 2.7% in December 2008 from November 2008 and 9.8% from December 2007.

However, $343.2 billion is still something, not zero, meaning consumers still deem many items worthy of the original price tag, says Martin Lindstrom, a retail marketing expert and author of Buyology: Truth and Lies about What We Buy.

In Depth: 10 Things We're Still Buying

Consumers are even still spending beyond the necessities in the personal-care category, it seems. At Nelson Bach, a North Andover, Mass.-based natural remedy company, year-over-year sales of its Rescue® Pastilles have doubled, according to company president Cynthia Batterman.

She believes that in a tough economy, when 7.2% unemployment means an increase in those lacking health insurance, many turn to alternative therapies. Nelson Bach's gummy lozenges, made with flower essence of white chestnut, are said to offer natural stress relief. And at $7 a tin, they're a relatively inexpensive way to feel just a little bit better.

"When people put off going to the doctor, they're more likely to try self-treatment," says Batterman.

Seeking an Escape
Whether used for keeping up appearances or curing minor ailments, personal care is--ultimately--about feeling good. Sometimes, that means buying products to escape the reality of the recession.

"Even if we can't afford to escape to Paris, we can still afford to buy perfume with 'Paris' on the label," says Lindstrom.

Read the full article from Forbes.com here.

Consumer spending may be at all-time low, but there are plenty of things people can't seem to live with out. Hey, Big Spender, are you out there? You must be, since December 2008 sales amounted to $343.2 billion. What did you buy?

Shopping bags are still needed! While retailers suffer from shoppers changing their behaviors during recessions (mainly by abandoning brand loyalty), says Lindstrom, "There are certain things people won't give up."

Personal care is one of them. That vast category includes everything from shaving cream to perfume to hairspray. From November 2007 to November 2008, U.S. sales of shampoo, acne treatments, skin care gift sets and grooming products increased by 18%, 14%, 11% and 15%, respectively, according to Karen Grant, senior beauty analyst at Port Washington, N.Y.-based market-research firm NPD Group.

Consumer confidence is at its lowest point in history and, according to a Jan. 14 report released by the Commerce Department, retail sales were down 2.7% in December 2008 from November 2008 and 9.8% from December 2007.

However, $343.2 billion is still something, not zero, meaning consumers still deem many items worthy of the original price tag, says Martin Lindstrom, a retail marketing expert and author of Buyology: Truth and Lies about What We Buy.

In Depth: 10 Things We're Still Buying

Consumers are even still spending beyond the necessities in the personal-care category, it seems. At Nelson Bach, a North Andover, Mass.-based natural remedy company, year-over-year sales of its Rescue® Pastilles have doubled, according to company president Cynthia Batterman.

She believes that in a tough economy, when 7.2% unemployment means an increase in those lacking health insurance, many turn to alternative therapies. Nelson Bach's gummy lozenges, made with flower essence of white chestnut, are said to offer natural stress relief. And at $7 a tin, they're a relatively inexpensive way to feel just a little bit better.

"When people put off going to the doctor, they're more likely to try self-treatment," says Batterman.

Seeking an Escape
Whether used for keeping up appearances or curing minor ailments, personal care is--ultimately--about feeling good. Sometimes, that means buying products to escape the reality of the recession.

"Even if we can't afford to escape to Paris, we can still afford to buy perfume with 'Paris' on the label," says Lindstrom.

Read the full article from Forbes.com here.


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