01/09/2014
MOST IGNORED FINANCIAL TRENDS OF 2013 - DELAWARE
While business owners don't have the time to be fixated on financial trends, it is important that they keep aware of major changes occurring in the financial landscape. DECON First is here to lend a hand. Following are what DECON First analysts consider to be the five most important financial impacting Delaware businesses.
SLOW GROWTH IN PERSONAL INCOME - From 1990 to 2007 the personal income of Delaware's residents rose over 8% per annum. This growth rate slowly fell during 2007-08 and even became negative during 2010. Since that time Delaware personal income has moved forward at an annual growth rate of about 4%, driven by rapidly rising transfer payments and a recent surge in stock dividends. DECON First expects this slower personal income growth to continue through 2014. This means that the demand for larger ticket and more luxury goods and services (e.g., furniture, new appliances, electronics, recreation vehicles, full service restaurants, sporting goods, residential cleaning) will continue to recovery only slowly and steep price discounting will remain.
MARKETING TIP ---
• Consumer spending for larger ticket items and luxury goods/services has become more tentative with quality, durability, affordability and long-term value being the primary drivers of the purchasing decision. Going into 2014 consumers will also use credit lines more carefully. Successful marketers must position their goods/services as high quality and extraordinary value, giving them the confidence they need to feel that their money is being spent wisely.
• Enhanced customer experiences by integrating mobile technology, customer reviews and reputation monitoring. Promote customer satisfaction as priority “one” to encourage repeat business!
