This post was written by guest blogger Hans Eisenbeis, Iconoculture’s senior Financial Services editor

For a decade now — since the rise of the global economy — political pundits from Mumbai to Madrid, Hamburg to Honolulu have argued about “American exceptionalism”: the idea that the US is unique and can hold itself to different standards than all other nations. When it comes to love and war, you can argue both sides. But when it comes to the hard facts of economics, not so much. Last week Standard & Poor’s downgraded US creditworthiness from a top rating of AAA to a less-than-top AA+. That’s the first downgrade in America’s credit rating since credit rating began, early in the last century (WashingtonPost.com, 8 August 2011). It also puts the US behind many of its European allies, not to mention Canada. (Canada!)

What does it mean? First, we should recognize that credit-rating agencies themselves have been in hot water. There’s evidence that folks like Standard & Poor’s, Moody’s and other credit raters contributed to the Great Recession (and the Not-So-Great Recovery) by rubber-stamping financial instruments and portraying risky investments (mortgage-backed securities, credit default swaps) as safe, easy money. The raters are in a fight for their lives, a fight that depends on reestablishing their credibility as objective, neutral evaluators of creditworthiness. And, as uncomfortable as it may be to admit, signs point to the fact that the US simply is not what it used to be in terms of macroeconomics. We’re $14 trillion in debt, and the people in charge of the federal checkbook can only agree on making a $2 trillion minimum payment. As NPR financial correspondent Heidi Moore succinctly commented, “The US government is like a kid who turns in his homework late and incomplete” (Minnesota Public Radio, 8 August 2011). Lucky the teacher didn’t flunk us.

It’s true that carrying the level of debt that we’ve been carrying is a financial disaster waiting to happen, but we’ve actually carried debt for 60 of the past 71 years. One might easily agree with vice president Dick Cheney, who, seven years ago, famously said, “Reagan proved that deficits don’t matter.” And one might ask: Well, do they matter or not? If they do, then why has the US credit rating never before been downgraded? The answer, at least if you listen to S&P, is straightforward enough. The US government is not acting in a unified, responsible way. Simply put, it’s not acting like a triple-A credit risk, so it doesn’t deserve that rating. Time to play catch-up to the rest of the class: Australia, Austria, Canada, Denmark, Finland, France, Germany, the Netherlands, Norway, Singapore, Sweden, Switzerland and the United Kingdom all still enjoy AAA ratings. So much for American exceptionalism.

A double-dip recession is bound to have political repercussions stateside in the next 18 months. But for consumers in affected markets across the globe, rating-agency jockeying and stock market woes mostly translate to more of what they’ve already been living through for the past few years. While the Great Recession that started in 2007 forced a seismic shift in consumer attitudes — from a world of ample credit to one of credit scarcity, this economic news won’t immediately make consumers change their minds any more than they already have. Because while nations in North America and Europe are now coming to terms with getting their economic houses in order, regular consumers in homes across the globe have been doing that for some time.

Which generation has the most discretionary spending power, leads all generations in traditional media consumption and technology spending, stands at a population of roughly 76 million strong and will account for an unprecedentedly large community of people 65+ in 2050?  That would be the Baby Boomers, a unique mix of Alpha Boomers to Zoomers aged 47-65 who are simultaneously the most influenced—and influential—generation in recent American history. Once dubbed “The Me Generation,” Boomers today have morphed into the “The Everybody Else” generation, raising young kids, funding college, nurturing grandkids, and helping aging parents.  To keep it covered, Boomers are still “workin’ it” by scaling careers, planning semi-retirement, and launching small businesses of their own, coming into their second act with no intention of fading away. As lifelong doers, do-gooders, learners and buyers, they’re worth getting to know again as aging adults who will re-invent themselves and every category in the process.

On July 21, Iconoculture will host a deep-dive into the Boomer market, bringing observational and psychographic insights to guide action for reaching this cohort during their next stage of life. During the session, we’ll examine the financial shifts, health solutions and tech innovations shaping their expectations, and we’ll explore the social and emotional relationships that influence them. As Boomers brush the dust off their changed financial outlooks post-recession, we’re tracking their new views for the epic life and all it may hold with Iconoculture trends such as Leading Hedgers, Simply Perfect and The Exponential Experience.

In addition to exploring trends shaping Boomer behavior, we’ll also share implications that will help brands apply insights to their Boomer marketing strategies. We’ll look at best practices for ensuring cultural resonance, and examples from brands that are successfully exhibiting these trends in the market today. Council members can register to join the conversation on July 21 by clicking here and read more about recent trends and observations of Boomer consumer behavior on the North American Trends page.

China is the world’s most populous country and the fastest-growing economy.  With 1.3 Billion people, it’s a giant piece of future market potential for global brands.  As marketers try to tap into the growth offered by the Chinese market, many are watching Chinese brands beat them to the punch, making rapid inroads into established, western markets.   Haier is a noteworthy example: an established home appliance brand in China, this brand has carved out a prominent space in the highly competitive US appliance market.  Watching Haier we can learn a few lessons that might inform our own strategies for entering growth markets outside of our current footprint:

• Finding White Space: Haier Group made initial inroads in the U.S. market by focusing on novel product categories such as refrigerated wine cellars; Haier has since captured 50% of the market for these devices, gaining a foothold that they can use to migrate from niche to big ticket purchases.
• Leveraging The Halo Effect: After establishing itself in compact refrigerators and wine coolers, the company has entered other categories—it now sells 2% of all full-size refrigerators in the U.S., 16% of window air conditioners, and recently introduced a line of flat-screen TVs and DVD players.
• Playing to Local Perceptions: The name Haier was adapted from German to deliberately obscure the company’s Chinese origins and play to North American perceptions of German quality and reliability.

So what about western brands entering the Chinese market?  Join Iconoculture’s lead Consumer Strategist covering East Asia, Jeff Yang on May 3^rd, for an overview of recent trends, developments, and shifts in consumer behavior in China. We’ll unpack the unique “cultural DNA” of this incredible market and take a closer look at brands that have successfully captured the mindshare of Chinese consumers. Board members can register here.

For a quick look into what consumers are doing in China, Board members can also check out a few of Iconoculture’s latest global consumer observations.

Tragedies like the natural disaster in Japan often bring out the best in people.  Occasionally, an event of this magnitude brings out the best in a brand as well.  If a brand can use its reach, resources, and the captivity of its audience to help connect consumers to a cause that ignites their passions (or compassion) all involved can benefit: consumers, brands, and the cause at the center of the ecosystem.

As we look across effective cause marketing efforts, a couple of themes emerge: First, effective brands need to clearly understand how consumer values and motivations overlap with a cause—what outcomes are consumers ultimately hoping to achieve? And what values are driving their association with a given cause?  Second, a brand must have a clear understanding of their “permission” to associate with a cause.  What has our brand done to earn a spot at the podium?  Why are we the right rallying point for consumers who care about this cause?

Our sister program, the Marketing Leadership Council has spotlighted two companies that have credibly put cause marketing to work for their brands: Pedigree’s efforts to support pet adoption, and REI’s practical environmental stewardship efforts.  While these are both cause marketing strategies that matured over the course of several years, Wal-Mart has also proven that well-executed cause marketing can be spontaneous through their innovative and immediate response to the Katrina crisis.  One theme across all of these examples: each company has made overt branding subservient to the cause itself.  Brands must have faith that doing right by their consumers and sticking to their own brand values will ultimately drive engagement.

Who better to speak on behalf of consumers than the Market Research Function? Research must create the entire picture of a consumer, not just their buying habits but their day to day life. Whether an executive immersion event or compelling deliverable, make sure your senior leaders see more than price points when examining consumer behavior.

Check out a few of Iconoculture’s favorite cause marketing efforts from recent months to spark your own cause marketing efforts can:

• Cause-inspired dieting serves waistlines and the greater good
• Snickers really satisfies Americans’ hunger
• 7 -11 uses its platform (the cup) to display art with a cause
• Chase bank gets mobbed with Facebook love
• Pepsi wants to Refresh Everything (including how brands use ad dollars)

Stay tuned for more from Iconoculture on cause marketing later this week.

Catchy title, huh?  I must admit I stole it from two good friends, Jeff Yang and Kate Muhl, here at Iconoculture.  They’re going to be diving into a handful of the cultural, political, and market differences between China and the U.S. in a few weeks at our Iconosphere 2011 event in Miami.

As Iconoculture members ask us for insight into the changes their marketing strategies will have to undergo to compete in (and with) China, here are a few of the most common questions we hear brands asking:

• Where do the aspirations and values of Chinese and American consumers converge? How can brands take advantage of these convergences for a competitive advantage?
• How do consumer perceptions of our national “brands” differ?  What do Americans think of China? What do the Chinese think of America? What does this mean for the next era of “Made in Chimerica” brands?  (I’ll leave that term to Jeff and Kate to explain)
• What realities will brands need to embrace as we face a new, multipolar power equilibrium?

All big questions that our brands will need to answer to confidently tackle competitive and increasingly international markets.  We’ll explore each of these in a few weeks at Iconosphere.  If you’re interested in learning more, MREB members can check out the details at Iconosphere 2011. We look forward to seeing you there.

In the mean time, MREB members can check out the “Latest Iconoculture Insight” link on the Global Insights page for some of Iconoculture’s latest consumer observations from China.

On the highways here in Delhi, the past and future share a lane. Creeping one way are shiny PR campaigns meant to thwart the raucous honking that accompanies any congregation of more than a couple of cars. Headed the other direction? The very audible, commonly agreed upon rules of the road, signified by armadas of old trucks, their tailgates painted with instructions begging for a sonic blast (“Honk please!”).

For most consumers, traffic’s an interminable, unavoidable, incidental cost of urban life. For the cities themselves, though, traffic is a perfect manifestation of the present. Outside Delhi, every morning jam is a horn-honking, engine-idling purgatory of acceptance and frustration. But it’s also a daily, ritual affirmation of aspiration. It’s an inherent part of a world that millions of consumers here in India’s biggest cities have chosen to participate in.

Late last year Iconoculture launched a new consumer advisory service — in and about India. It’s the culmination of years of groundwork we’ve labored very hard to lay, but it’s also a mere glimmer of what promises to be a fast-moving future.  With that work behind us, our next step will be to collect your feedback on what you need to know about this dynamic market and infinite variety of the consumer base in India.  MREB members, contact your account manager if you’re interested in joining the conversation.

In the meantime, here are some of our latest observations from a fascinating market:

Computing in Rural India. Dell, the consumer notebook leader in India, is planning on extending their retail operations into smaller cities throughout the country, similarly expanding research and customer service. The company expects to be the exclusive retailers of Dell products in the smaller cities, capturing a greater part of the retail computing market for themselves in the process.

Organic Farming in Karnakata. In another sign of increasing prosperity and a move away from subsistence livelihoods, thousands of farmers in the Indian state of Karnakata have pledged to follow the rules of organic farming at the behest of spiritual leader Sri Sri Ravi Shankar. Shankar’s Art of Living Foundation has visited thousands of villages in India, training farmers in organic methods.

Medical Tourism. The high cost of quality healthcare in many Western nations, as well as the unavailability of quality care in developing nations in Africa and Asia, is driving patients to seek treatment in India, where procedures can cost 80-90% less. Treatments and procedures at spots like Fortis Healthcare and Columbia Asia include joint replacement, spin surgery, bariatric surgery (weight loss surgery), cosmetic surgery, cardiac surgery and organ transplant surgery.

MREB members, for more on subcontinental trends, visit our Iconoculture insights center.

In April of this year, the 5th annual Iconosphere – Iconoculture’s consumer insights extravaganza – will burst into life at the Eden Roc Renaissance in Miami Beach. Just like in years past, the not-your-mama’s conference focuses solely on consumers, highlighting the shifts that are shaping our culture and most keenly affecting marketers.

Don’t expect the chart-induced eyestrain and soggy pasta that’s de rigueur at typical industry events, though. At Iconosphere, the pool shimmers. The cocktails are sloshier. Best of all, curious people – members, Iconoculture strategists, colleagues – connect over inspiring ideas and shared challenges.

Stripped bare, what the event offers – what’s core to its value for those who attend – is the chance for marketers and researchers to unselfconsciously immerse themselves in the brainier parts of their jobs for a few days. It’s the opportunity to eject from the office, shove off day-to-day bureaucracies, and carefully consider and discuss where the culture is going, what consumers are really thinking, and what to do about it.

We can even sneakily peek at the content debuting in April. A sampling of this year’s sessions include: Media maven-led monitoring of consumers’ relationship with mobile marketing; a close examination of Americans’ post-recession pragmatism; and a tour by our Team India through the twists and turns of the Indian consumer’s retail experience.

The ex-’sphere-ience is not at all conference-as-usual (attendees have been known to crowdsurf). In fact, it actually feels a little more like hot yoga for your consumer insights brain. Except air conditioned. And with cocktail shakers. And no physical exertion. Don’t bring a mat.

If you want to hear more about Iconosphere, contact the Iconoculture team or Register Here

Our guest blog this week comes from an earlier post by Josh Kimball from Iconoculture, a sister program of the Market Research Executive Board discussing a new macrotrend of people reprioritizing what they buy.

’Tis the season of buy, buy, buy. But more and more people are asking Why, why, why? It’s in trying to answer this question — what’s the why behind the buy? — that Iconoculture recently launched a new macrotrend, one we call Mindful Matters. The idea underpinning this macrotrend is that people are mindfully re-prioritizing what they buy, who they do business with and even how they live. They’re adding “simplicity” and “manageability” to their personal wishlists instead of iPods or flatscreen TVs.

For Iconoculture, macrotrends are a way of talking about why people make the decisions they make. And expressions of Mindful Matters play out differently depending on one’s cohort. In Iconoculture’s annual quantitative values survey, we saw that Boomers especially had embraced simplicity: They identified with the top end of the simplicity scale, defined as “I strive to live a simple and uncluttered life,” more than any other demographic group did (Wave 1, 2010).

Of course, slower living isn’t a phenomenon that’s only about Boomers. As we’ve seen in such observations as the Great American Apparel Diet, where people commit to abstaining from buying clothes for a year, Millennials have their own way of more closely considering their purchases. Nor is the idea nation-specific. We’re tracking similar examples around the globe.

For many people feeling the pull of Mindful Matters, this marks the beginning of a more considered, maybe slower life. But for marketers, that shift in people’s values means change is afoot — and it’s happening fast.

Guest blogger Tim Henderson is Senior Director, Matures and Retail, at Iconoculture, a sister program of the Market Research Executive Board. 

Black Friday is nigh, but retailers hoping for big holiday gift sales may unwrap a turkey. Part of the reason: gift shoppers increasingly shop out of season, meaning Santa’s elves are busy buying gifts year-round rather than waiting for the traditional November-December months.

Shopping out of season is a trend highlighted by respondents to Iconoculture’s holiday shopping survey of IconoCommunities^SM members. Typical of the responses:

It just makes more sense financially – why restrict yourself to shopping during the holiday season when there are so many other opportunities to save money throughout the rest of the year? In fact, I make a huge effort to AVOID gift shopping during the holiday season because the stores are so much more chaotic and congested.

- IconoCommunities^SM participant Michelle, Gen X female, suburban New Jersey, 9.20.10

The bad news is that this trend appears to be here to stay.  The good news: Savvy merchants have taken note of this shift in shopping behaviors and responded with more creative marketing tactics, like this year’s “Christmas in July” promos from brands like Target, Toys R Us and Sears. Read More »