Turning on nostalgia

Happy Friday,

I attended the Think FinTech 2022 earlier this week, where they shared global insights on consumer behaviours and how brands could find an extra edge during the current economic downturn. 

They spoke of this flight to safety from consumers seeking lesser risk and more value for their money but also how they wanted to be reassured by brands. During hard times, trustworthiness is the highest currency brands have, and the quickest way to trigger this important brand equity pillar is by turning on nostalgia on full blast. 

Advertising is a great way to tell that story, and we have seen in a past recession some great examples of it.

Think of Chrysler's "Imported From Detroit" campaign after the auto bailout, reminding consumers never to forget where they are from

Think of Budweiser bringing back the Clydesdales, a symbol of resilience after the repeal of the prohibition, reinforcing their heritage

Avoiding going dark and doubling down in hard times has paid off 

Taco Bell (+40%) and Pizza Hut (+61%) saw their sales Skyrock while Mcdonalds declined by 28% in 1991. I bet they will rethink cutting their advertising budget this time.

Or Amazon sold more ebooks than printed books with their Kindle launch during the last recession.

If anything the lipstick effect has shown us never to underestimate how consumers will indulge in hard times.

And it will be interesting to see who will rise to the top this time.

Have a great weekend