When was the last time you bought new underwear?
Men’s underwear as well as lipstick and cardboard box sales are all unusual economic indicators of a recession. Studies have shown that men hold off on buying new underwear during these times and opt to keep their old boxers in circulation. This same logic is applied to a decline in cardboard box production – after all, less money means less online shopping! It’s the opposite in the case for lipstick purchases. When times are tough women often opt out of big purchases and instead focus on smaller luxuries.
There are so many mixed messages from the media. It’s hard to tell where our economy is at and if a recession is on the horizon. With all of the uncertainty, something we can rely on is our ability to plan for the future. Brands want to protect their equity and prepare for the best possible outcome, making the focus quite simple: Save money without jeopardizing the integrity of your brand.
Why should you consider partnership marketing?
Partnerships will save money and bring a high ROI. 75% of world trade flows “indirectly”, making partnerships, alliances and collaborations important to build into your marketing infrastructure.
Envision doubling your client base, integrating a new product, and making lasting relationships with novel brands. What kind of potential would that have for your company? The sky’s the limit because you can get creative. Look at some of the partnerships out today – RE/DONE x Ford, celebrating the launch of Ford’s first-ever electric truck. Two unlikely partners are intersecting automotive and fashion, both exposing themselves to new clientele.
What can we anticipate?
The Harvard Business Review talks about understanding the psychology behind marketing during a recession and urges you to understand that marketing costs will be trimmed more severely than production costs. “Where opportunities are stable or uncertain (but leaning toward stability), firms should push their advantage” notes the article. So take a look at the assets available for leverage. As a recession winds down, consumers will begin to buy again, and if you have attained new customer visibility, you have set yourself up for success.
Partnerships represent unity, they convey a brand’s ability to evolve.
Partnerships are the wise and necessary strategic investment to push your company ahead of the curve while also nurturing your current customer base. By focusing on that strategy it can help combat as the US inflation quickens to 8.5%. With increased gasoline, shelter, and food costs, now’s the time to consider what’s next for your brand.
What are the next steps?
As we’ve learned through the men’s underwear effect, inflation leads to less customer spending, so you have to get creative. Bring something new to the table by evaluating all your brand’s built-in assets for leverage; recognizing your streamlined goals, and getting innovative with partnership verticals. Let partnerships be your secret weapon as you strategize your marketing plan for 2023.
To learn more about partnership marketing and find resources to get started visit the Regatta website.
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