I’ve been known to hold onto a thing or two when it’s past its prime. I have my favorite mug, my favorite shirt, and I even make sure I squeeze every last drop out of my toothpaste tube.

And don’t get me started on the laptop that I kept until the hard drive decided that it was at the end of its life cycle.

Like me, most consumers want to get as much use as possible out of a product. And while we have seen consumer spending rising lately in a number of sectors, folks really do seem to be holding onto products for a longer period of time today.

Is it a permanent sign of shifting values or a reaction to the recession, or both? I certainly cannot know what is in the minds of all consumers, but this New York Times article supports my observations that product life cycles seem to be growing.

As we continue to preserve our belongings, this not only helps us cut costs, but it has the added benefit of environmental sustainability. Not to mention, we are able to spend our money in other areas.

So with this ability to spend, we are not expecting a potential decrease in consumer demand in the coming year. As the article on Bloomberg News suggests, there is pent-up demand – and a 3.2% increase in consumer spending is expected for 2011.

Overall, the economy is growing and this can be attributed in part to consumer spending. Therefore, it seems that holding onto products longer and increased consumer spending are not necessarily incompatible. This concept shatters some old patterns of thinking and is worth exploring further.

What have you been seeing lately in relation to consumer spending? Do you think extended product life cycles and increased consumer spending can peacefully co-exist?

Go!Go!Go!

Jim

More Resources:

White Paper: "Sourcing and Selling in Challenging Economic Times: How Retailers Should Re-think Their Operations and Methods"

Consumer Products

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