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06/07/2006

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johnmoore (from Brand Autopsy)

Actually the middle market consumer isn’t dwindling—its expanding. According to Silverstein’s TREASURE HUNT book, in the US, the middle class/middle market consumer is comprised of 48 million households and this customer segment controls 75-percent of all discretionary spending in America.

And it’s not that we lack choices … we actually have more choices. Silverstein says the most successful businesses understand that middle market consumers will deliberately choose to trade-up (spend more) or trade-down (spend less). That’s why we are seeing more options at the high-end (Whole Foods, Nordstrom, Williams-Sonoma) and more options at the low-end (Wal-Mart, Kohl’s, Home Depot).

So yes … businesses that are stuck in the middle (Albertson’s, Dillard’s, ACE Hardware) are indeed dwindling are not succeeding while businesses competing at the high-end and low-end are succeeding.

Kevin Dugan

John - Thanks for clarifying. I was using middle market incorrectly as I meant business in the middle were disappearing meaning we had little choice but to shop at either end. Speed kills! Thanks again.

Ann Handley

Interesting bit on the Urban Olfactory Installation from Futurelab. A week or so ago, William Arruda wrote in the MarketingProfs blog about how Japanese movie theaters are using ‘scene-synchronized scents’ to enhance the cinematic experience. Sort of like watch and sniff...I guess?

: )

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