Lessons from the value marketers

As the economic downturn begins to exert an impact, it is little wonder that investors and managers are preoccupied by the threat posed by 'trading down' to lower-priced brands.

Lessons from the value marketers

Martin Deboo Investec

Recessions have always produced a certain amount of trading down – often merely transient. But, in 2008, things might well prove to be different. For the first time, the UK consumer has real choices to make between established brands and a range of highly credible, easily available, low-priced alternatives. In the last recession there was no easyJet in air travel, in clothing there was no Primark (to speak of), in supermarkets Aldi, Netto and Lidl had a minimal presence and, in hotels, budget brands like Travelodge and Premier Inn barely existed....

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