In today’s business and commerce landscape, the dynamics of market polarity are experiencing a seismic shift. Economic bifurcation has given rise to two distinct cohorts – the discerning “Have Mores” and the cost-conscious “Have Lesses.” This transformation is reshaping how businesses operate and redefining the relationships between consumers and brands.
This blog explores the impact of this economic divide on consumer behavior and delves into how businesses can adapt their Go-to-Market (GTM) strategies to navigate these dynamic changes successfully.
According to OXFAM International’s Annual Inequality Report, since 2020, the richest five men in the world have doubled their fortunes. During this same period, almost five billion people globally have become poorer. One thing is certain, the economic divide continues to expand, creating a growing class of working poor and a shrinking middle class.
The Dawn of Economic Bifurcation
As financial forces shape the consumer landscape, the dichotomy between the “Have Mores” and “Have Lesses” is becoming increasingly pronounced. The ongoing shift in consumer purchasing patterns, often termed economic bifurcation, is influenced by a complex interplay of global and local dynamics. Globalization, characterized by the ease of international trade and communication, has empowered affluent consumers, or the “Have Mores,” with an unprecedented array of choices. This is exemplified by the accessibility to premium and niche products through online platforms, amplifying the dichotomy.
Simultaneously, economic challenges, including global recessions, have deepened disparities, prompting financially constrained consumers, or the “Have Lesses,” to seek localized and cost-effective alternatives. Noteworthy examples include the preference for budget-friendly retail models like Aldi and Dollar General. The pervasive influence of social media has further magnified these distinctions, showcasing both opulent lifestyles and prudent financial practices. The convergence of these factors accentuates the divergence between the “Have Mores” and the “Have Lesses,” defining unique consumer behaviors within these distinct cohorts.
The “Have Mores”
The “Have Mores” represent a segment of consumers who find themselves on the favorable end of economic prosperity, allowing them to exercise a discerning taste and influence purchasing decisions across a spectrum of products and services. Characterized by an elevated purchasing power, these consumers exhibit a penchant for premium and quality offerings. Beyond mere economic privilege, the “Have Mores” demonstrate a sophisticated appreciation for sustainable and organic options, reflecting a commitment to health-conscious and environmentally friendly choices. Their preferences extend well beyond traditional goods, influencing industries such as fashion, technology, and leisure. The “Have Mores” are not just consumers; they are trendsetters, shaping the market with their emphasis on luxury, innovation, and a desire for unique, high-end experiences. Understanding their nuanced preferences is crucial for businesses aiming to cater to this influential cohort and adapt their strategies accordingly in this era of evolving consumer dynamics.
What Does it Take to Feel Rich in America
According to a Edelman Financial Engines report, 67% of Americans said they would need at least $1 million to feel rich, up from 57% a year earlier. Roughly 20% said it would take $5 million or more.
How Many People Fall into the “Have Lesses” Category?
A recent report from Freashlean, roughly representative of the U.S. population, reveals the vast majority of Americans (92.87%) think Groceries are too expensive and 50-66% of the population have to shop less, buy lower quality ingredients or buy less items in general, this includes foregoing Organic or Premium ingredients and even the very basics, such as Meat or Poultry.
Adapting GTM Strategies: Navigating Dynamic Market Realities
1. Diversification of Product Offerings
Appealing to both the discerning “Have Mores” and the budget-conscious “Have Lesses” demands a strategic diversification of product offerings. For the affluent cohort, businesses should focus on introducing premium and exclusive products that align with their sophisticated preferences. This can involve collaborations with renowned designers, limited-edition releases, or premium subscription services. On the other hand, providing value-driven alternatives is paramount for the cost-conscious segment. This may include budget-friendly product lines, discounted bundles, or loyalty programs that enhance affordability without sacrificing quality. By adapting product offerings to cater to each cohort’s specific needs and financial considerations, businesses can capture a broader market share and remain competitive in the evolving landscape.
2. Digital Innovation and Accessibility
Embracing digital transformation extends beyond the mere establishment of an online presence. Businesses must innovate digitally to enhance accessibility and create a seamless customer experience. This involves leveraging advanced technologies such as artificial intelligence for personalized recommendations, virtual try-on features, and interactive online experiences. Social media platforms should be used for promotion, fostering community engagement, and soliciting direct feedback. Moreover, optimizing e-commerce platforms for mobile accessibility ensures that consumers from both cohorts can access products easily, fostering inclusivity. By consistently innovating digitally, businesses can stay ahead of the curve and meet the evolving expectations of the “Have Mores” and the “Have Lesses” alike.
3. Personalized Marketing
Understanding the unique preferences of the “Have Mores” and the “Have Lesses” requires a comprehensive approach. Businesses can create targeted and personalized marketing campaigns by employing data analytics to delve into consumer behaviors. Utilizing customer segmentation based on lifestyle choices, values, and purchasing history ensures that messages are tailored and resonate deeply with each segment. Personalized marketing goes beyond mere product recommendations; it speaks to the aspirations and concerns of consumers, fostering a sense of connection and loyalty. By investing in personalized marketing, businesses can establish a more meaningful relationship with their target audience, ultimately driving long-term brand engagement.
4. Omnichannel Advertising
Incorporating an omnichannel digital advertising approach is crucial for reaching consumers seamlessly across various online touchpoints. Whether through social media, search engines, email campaigns, or other digital platforms, businesses can create a cohesive and integrated online advertising strategy. An omnichannel approach ensures a consistent brand experience, recognizing that consumers move fluidly between various digital channels. This comprehensive digital strategy enhances brand visibility, reinforces consumer engagement, and facilitates a unified online presence. By embracing omnichannel digital advertising, businesses can optimize their online reach, reinforce brand messaging, and create a more immersive and connected digital experience for both “Have Mores” and “Have Lesses.”
The Bottom Line
The shift in market polarity, fueled by economic bifurcation, has given rise to discerning “Have Mores” and budget-conscious “Have Lesses.” This transformation not only reshapes business operations but also redefines the connections between consumers and brands. As explored in this blog, the impact of this economic divide on consumer behavior is profound. To navigate these dynamic changes successfully, businesses must proactively adapt their Go-to-Market (GTM) strategies.
From understanding the nuanced preferences of each cohort through personalized marketing to strategically diversifying product offerings that cater to both ends of the economic spectrum, businesses need to be agile. Embracing digital innovation and accessibility ensures a seamless customer experience, and the incorporation of omnichannel digital advertising is crucial in reaching consumers across diverse online touchpoints. By consistently evolving their GTM strategies, businesses can not only capture a broader market share but also build lasting connections with both the trendsetting “Have Mores” and the budget-conscious “Have Lesses.” In this era of changing buying models, adaptation is the key to thriving in the ever-evolving business and commerce landscape
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About the author:
Adam Woods is the Chief Executive Officer (CEO) and held two other roles at Choozle — Chief Client Officer and Chief Technology Officer. Throughout his tenure at Choozle, he has been improving the way that advertisers buy media through the Choozle platform. He has led initiatives to ensure that Choozle leads the space in terms of being a consultative partner that helps ensure the effective deployment of media through a combination of omni-channel planning, targeting best practices, upfront goal setting, and effective measurement.
