Economical shift in Canadian coffee Sometimes the economy shifts demographics in unexpected ways. In Canada high-end coffee makers are enjoying a bitter-sweet moment proving this shift.
With half the Canadian population seeking a luxury caffeine fix each day, java brewers are finding their former customers are leaving at about the same rate as they are gaining new customers.
The reason?
It seems that discretionary spending by past-drinkers has dried up causing them to be more frugal in their beverage purchases. Although they still frequent the joe establishments, they are buying a more economic blend.
At the same time the dollars drop in the froth at the top of the mug is being replaced by the more affluent connoisseur. It seems wealthier Canadians are sacrificing a fancy meal out, instead substituting the luxurious taste with the mucho-expensive mocha.
Asians learn to bargain huntWith the global economic view of recession, Asians are now joining the rest of the world in the quest for bargains. A survey conducted in 14 countries by MasterCard found that 70 percent of the Asian market is looking to cut back their discretionary spending.
Hardest hit will be dining, clothing, extra-curricular education, and personal travel.
Not all Asian countries share equally in their spending view. Taiwanese, Filipinos and Koreans are most likely to cut back while Australians, New Zealanders and Chinese are least likely to conserve their money.
Blackberry a workplace necessityDo you have a Blackberry? If you do it is likely you check it the last thing at night and first thing in the morning.
This is according to a survey issued by Sheraton Hotels & Resorts. They found 84 percent of poll takers admitted to checking the devices directly before going to sleep and immediately upon waking.
Unfortunately the devices have had an impact on personal time as 85 percent said they feel they should work during every waking moment. If that is not enough of a personal invasion, 35 percent admitted they would choose their PDAs over their spouses if forced to make a choice.
It should be noted the survey only took responses from those earning 50K or more.
African nations partner to wipe out povertyBanks in Uganda, Tanzania, Kenya, Burundi, and Rwanda have joined forced to create a culture of savings in an effort to wipe out poverty. The banks have formed a group know as the Association of Savings Banks of East Africa (ASBEA), one of the poorest areas on the planet. Their challenge is to find a way to motive those with little income, and virtually no discretionary income, to take a look long term look at their finances.
Many in the paycheck-to-paycheck culture are so overwhelmed by current needs that saving for the future is not even considered. However ASBEA recognizes that it as the key to eradicating poverty.
Banks have targeted children as the breeding ground for the savings culture. They are giving away piggy banks and challenging the children to fill them.
Initial results are remarkable as savings are up in all five countries. Families are becoming much more disciplined when it comes to finances and are learning budgeting and prioritizing. They are realizing the need to make even more sacrifices today to ensure success for tomorrow.
Michigan shows economic cultural extremesIf you want to see the difference in economic cultures you could not find a better place than southeastern Michigan. Detroit has the lowest per family earnings in the United States according to the United States Census Bureau’s 2007 American Community Survey. It’s suburb of West Bloomfield has the highest per family income in the country for cities of 65,000 to 250,000.
This means that in a distance of less than twenty you can see the poorest and the richest cultures.
Quality/Value trumps priceWhen it comes to organics and natural groceries quality overrides pricing according to a survey released by Whole Foods, a Texas, USA, based retailer. The health conscious culture is willing to pay extra in order to eat chemical-free foods, however they do want value pricing. In other words, 70 percent of health centric shoppers is willing to pay more as long as there is something that is a value-add.
The survey also found that organic and natural foods are preferred by 67 percent of consumers, making the food sector a potential exponential for future growth.
The survey also confirmed other surveys by finding that 40 percent of shoppers are using more coupons, 43 percent are cooking at home more often, and 37 percent will pass by one store to go to another that has lower cost value items.
Restaurants permanent loser in recessionWhen the global economy emerges from the current recession, restaurants will be the biggest losers according to a survey by Precima. The recession, largely driven by rising fuel prices, has changed te eating, driving, and buying habits of consumers.
The survey found:
82 percent will not return to their culture of eating out, instead they’ll stay at home.
84 percent will look for specials in store fliers, with prepared foods likely to benefit most.
80 percent say coupons will sway their purchase decision.
78 percent will combine store trips to conserve fuel.
Connoisseurs whiningA couple of wine connoisseurs in New Zealand claim to be permanently harmed by a café mistake. Workers at Chico’s Restaurant served glasses of wine from a mulled wine container that wasn’t really wine at all.
It seems someone had used the container for dish detergent. The women that drank it suffered emotional harm, according to published reports, and won in court.
In the New Zealand culture, suing for emotional damage is not accepted. However an “Accident Compensation” program allows victims to be compensated for lost wages and treatment.
Finally – Columbus finds IndiaMany fail to remember that North America was an obstacle to Christopher Columbus. He was actually looking for an easy route to increase Spanish commerce with and investment in India.
Now, over 500 years later, it seems like Spain and the rest of the world is setting their sights on Indian investment. According to a survey by KPMG International, as reported by Business Standard, investment strategists are bypassing longtime investment targets in the USA, UAE, Japan, and Singapore to focus on India, Russia, China, Brazil, and India. In fact, investment in India is expected to go up by 80% in the next five years!
In Western Australia FuelWatch is being credited by the Australian Competition and Consumer Commission with keeping fuel prices approximately two cents cheaper per liter than the rest of Australia. The program requires gasoline (petrol) stations to post their price for the following day by 2:00 pm the prior day. By 3:00 pm prices are published on the Internet and available on a toll-free number or over text messaging. Motorists are then able to locate the station with the lowest pump (bowser) prices for the next day.
The world of opera has experienced the loss of some of its greatest performers over past years, causing many to wonder if the art itself would suffer irreparable harm.
Before you fall into the trap of agreeing the curtain is falling, consider Paul Potts, a mobile telephone salesperson from Wales.
He stunned the audience of the television program Britain’s Got Talent, as seen in the video below. Watch the video twice. First listen to the wonderful singing – even if you have never heard opera before the beautiful tones will bring a tear of happiness to your eye.
Second watch to see the audience reaction. Leading the standing ovation was not the traditionalist generation, but hip-hop and pop loving Generation X. If legend is correct, they should have walked out when he started singing or stick iPod headphones in their ears to hear the latest Green Day release. Instead they too were captivated by Potts’ stirring performance.
As long as people like Potts are around, opera will survive. He brings a highly sophisticated art to the appreciation requirements of multiple cultures.
Aspirin may be the miracle drug after allAspirin, once blamed for a dramatic increase in ulcers, is gaining new respect within the health-conscious culture. Research from Washington University in St. Louis have found the willow-bark derivative helps fight cancer.
Reported in the Journal of Cellular Biochemistry, researchers say the blood-thinning qualities of aspirin prevent tumor cells from settling – thereby slowing the growth of breast and melanoma tumors.
Doctors often recommend patients take a low-dose aspirin tablet daily. Low-dose is defined as 81mg.
TIP: Do not try to save money by buying the cheaper high-dose 250mg aspirin as it does not carry the same benefits as low-dose, and has negative health consequences. If you are part of the frugal culture, price up children’s aspirin. It is 81mg, sells for about the same price per bottle, but often has two to five times the tablets – plus you get fruit flavoring at no extra charge!
A recent Harris Interactive poll has uncovered some cultural connections to one's feeling about their job.
Generations: 53% of Baby Boomers love their job while only 37% of Generation X said they love their job. On the other hand, 19% of Generation X hate their job while only 7% of Baby Boomers claimed to hate their job.
Marital: only 29% of those that have never been married love the job while 50% of those that are married love their job. When asked if they would like to immediately let, 24% of never-married employees said, “yes” as compared to only 9% of married employees.
Regional: loyalty seems to increase as one moves to the west. In the Northeast only 39% love or like their job while 48% of those in Western states either love or like the job.
Economic: 49% of employees paid at affluent levels ($75,000 in the survey) love their job while only 36% of those earning less than $35,000 love where they are working.
Generation Y eyes buying homesThe sharp realtor, mortgage broker, moving company, or other professional dealing with the real estate market have a prime target audience – Generation Y. These are people in their late teens and twenties.
Genworth Financial has released data from a study on the borrowing habits of Gen Y. Their study revealed that loans for the generation are up 28% in value – a remarkable growth rate as the generation only accounts for 20% of total loans.
The members of this group see the current depressed real estate economy as an opportunity to begin building a realty portfolio. Although 81% of loans are for homes they will occupy, 19% is for investment property.
Poor offer business opportunity
Those of you that think only the middle and upper income cultures are viable for building business need to listen to this interview of Julio Moura, CEO of GrupoNueva, a holding company for businesses through the South, Central, and North America. Moura sees the poor as an economic culture representing part of the solution to building business in the 21st century.
South Africa’s Chamber of Mines has entered into negotiations with Eskom, government-controlled utility to ensure power for ventilation in their underground shafts. In a nation with 25.5% unemployment it is critical to maintain safety for the mining industry, one of the nation's largest employers.
In the New York metropolitan area, the culture does not accept power outages. With a huge number of high-rises and an electrically powered public transportation system even a small outage has a huge impact. Residents and government officials vehemently protest and investigate every outage. The result has been decades of virtually continuous electrical supply. Although New York lost power in the Great Blackout of 2002, they were also the first area to have power restored and led the charge to find out what it happened.
Not every area is concerned about consistent power. In Detroit residents are confronted with power outages several times a year due to storms and outdated equipment. Yet residents accept these interruptions as a normal result of weather conditions.
So here we have examples of three electrical cultures:
A culture that will not tolerate outages (New York).
A culture that recognizes electricity as a key to economic growth (South Africa).
Looking at customers that want cheap
As the eyes of the world are tuned to America’s Super Bowl, we thought we would share a lighthearted video with you. It shows the negotiation skills of the frugal culture.
This economic culture is always looking for a bargain. They are will to undergo almost any level of pain in order to save money. Long lines, extended driving distances, eating early, getting up in the middle of the night, are all within this culture’s willingness for a good deal.
Wal-Mart opens door for cultural competitionWal-Mart is open the door for culturally-minded storeowners by discontinuing more than 1000 magazines from the list of titles its stores can carry. Most magazines on the list has specific cultural demographics allowing for other merchants targeting that demographic have a competitive advantage over Wal-Mart's narrow offerings.
Wal-Mart has long left the door open to other retailers to find successful niches enabling them to survive side-by-side. Targeting specific cultures with merchandise offers smaller retailers, and everyone's a small retailer, to meet the needs and desires of specific groups within their community. These magazines offer another commerce niche to exploit when attracting culturally specific customers.
Among the magazines that were cut from the Wal-Mart approved list are Better Homes and Gardens, which is still popular for women -- particularly those in the Baby Boomer and Builder/Traditionalist generations. Condé Nast and The Economist were cut, providing an opportunity for those reaching out to the affluent culture.
Eliminating the titles is not an indication the magazines are not sellable, profitable, or desirable for other stores. It is merely keeping within Sam Walton's established culture of narrow product offerings. By limiting the number of products within any individual category or target group, Wal-Mart is able to keep their UPC catalog smaller to improve cash register efficiency. In the case of merchandise that flows through the distribution centers, narrowing the product mix allows them to handle fewer products and higher quantities which reduces handling and carrying costs.
Wal-Mart’s weaknesses
Smart local storeowners know they can compete very effectively with Wal-Mart through wider product offerings, unique local products, and enhanced customer service. These are Wal-Mart's three weaknesses, which the giant corporation is willing to risk as none of the three can be profitably overcome without sacrificing even more profitable areas of their operation.
Why cultures clash: corn provides insightThe United States has passed legislation requiring a six-fold increase in the production of ethanol by the year 2022. The United States uses 19,650,000 barrels of oil a day, more than three times that of second place Japan according to Wise Geek. Because the US imports most of this oil, they are seeking to reduce their reliance on foreign sources of energy.
However, by requiring corn, in the form of ethanol, to replace foreign oil as a fuel source, they are creating several cultural clashes of note. Here are some questions that might show you how one decision can have an impact on cultures:
How would you feel if you were a member of the crop-growing farming culture and saw prices rising for the crops you were producing?
How would you feel if you were a cattle rancher and saw feed prices rising because of the increase demand for corn?
How would you feel if you were part of a developing nation culture and heard this news while your nation’s citizens were dying of hunger each day?
How would you feel if you are part of the blue-collar culture about seeing new, potential union, jobs being created at ethanol plants?
We know how the United Nations feels. According to the United Nations Special Rapporteur on the Right to Food, Jean Ziegler, turning fields capable of growing edible crops into fields growing crops for pure fuel production is a crime against demanding. He has asked for a five-year moratorium on such activity. He recommends the use of jatropha, a drought-resistant crop easily grown in developing nations. A field of jatropha is easy to establish, grows quickly, and has a lifespan of 50 years.
As you can imagine, the position of the United Nations further contributes to how cultures view the use of corn.
Weave the threads of culture into success! Business growth today depends on one’s ability to reach customers from a cultural perspective. This blog examines cultural issues from a business perspective. Learn about more than twenty categories of cultures and how you can effectively reach out to members of each culture.