A recent Mintel report examined how consumer spending habits have changed since the economic crunch hit in the US. Interestingly, it shows that consumers aren’t giving up their ‘indulgences.’ In fact, sales of chocolate, cigarettes and alcohol aren’t just holding steady, they’re predicted to rise.
How can this be true? Isn’t an economic downturn the time to cut out indulgences and buy only the basics? Not necessarily. According to a Mintel staffer, people who feel thwarted by the economy and who are cutting back on big ticket items feel entitled to small rewards.
Interesting stuff. Although I don’t smoke and don’t plan to start, I can see myself falling into this mindset for the other items on the list. In fact, my man with a pan has always held firm that when we’re the most impoverished, we should drink the best bottles in our cellar. I never complain about his policy since our economic hiccups are always just that: short lived inconveniences. We always know that the cellar will be replenished within a few months.
But what if our economic situation was reduced long term? Would we still splurge by opening the expensive wine or save it for special occasions? I hope I never have to provide you with a tested answer.
How do you change your eating, drinking and shopping habits when you go over budget?