I have high hopes tempered with great caution. The entrepreneurs who can capture the limited resources have the potential to do well. Shortage and adversity are powerful stimuli for focusing the mind.

credit: Ricky Schmidt

I think it is critical to systematically identify what I would call “downturn needs.” There are many different kinds of such needs. First, there are needs that are created by the substitution effects I spoke of earlier. Second, there are needs that emerge because of the availability of excessive time or the unavailability of productive employment. These are by way of necessities. In addition, there is also a need for affordable luxuries. After all, just because consumers are cutting back doesn’t mean that they do not still enjoy products that give them pleasure and entertainment—or even distraction from the difficult times around them. The third category of needs is a more obvious one: products that deliver value for the money spent on them. When consumer budgets are tight, such products will have plenty of appeal.
Bhaskar Chakravorti

I really recommend to read the whole interview – it introduces a refreshing pragmatical approach to what people willingly call “times like this”.

Posted by maz on Wednesday, February 25th, 2009 at 21:13.