4: The Two-Speed Consumer Economy

Overview

The concept of a two-speed consumer economy encapsulates the divide between NEOs and Traditionals. Let’s explore how these differing mindsets influence industries, societal change, and economic growth ... and how a business can drive higher growth and profitability.

Key Points:

NEO-Led Innovation:

NEOs drive growth in consumer technology, sustainability, premium travel and hospitality, premium retail ... premium everything.
Their yearning for quality and emotional resonance encourages innovation and higher standards.
NEOs are future shapers.

Traditional Market Stability:

Traditionals skew to convention and switch between brands–following discounts.
Traditionals support established brands and industries through loyalty to conventional models.
Their focus on the lowest price and practicality stabilises foundational economic sectors.
Traditionals are nostalgic for a more ordered, less changeable world.

Example:

The tech industry thrives on NEO early adopters who invest in cutting-edge products, while Traditionals drive demand for reliable, well-established alternatives ... on promotion.

Activity:

Consider an industry or product that has successfully balanced catering to both NEOs and Traditionals. How does this balance influence its success?