In the advent of internet technology businesses the world over enjoyed an economic boom. Businesses everywhere were growing and expanding. Small to medium enterprise became competitive against the larger companies since it was a lot cheaper to advertise on an international scale. Because of this economic boom the consumer’s purchasing power also increased. They are now able to afford more expensive products. High end brands and labels became all the rave. For a time all was good. However, the business community is in a state of constant change. The economy is also just as fragile and is easily affected by any sudden events in the business community as illustrated by the ongoing economic crisis which was triggered by a single business entity.
That single incident was enough to bring the world economy crashing down on us. Within the first few months you see businesses closing down all over the world. Businessmen losing all of their life’s work because of a single event that rippled around the globe. People are losing jobs and unemployment is on the rise. Until now, the international business community is still struggling to recover from this blow. It will take years for the economy to fully recover. Even major companies around the world are still asking their respective governments for financial aid in the face of this crisis. Because of this the purchasing power of consumers around the world went down. Consumers are not buying as much as they used to and they try to purchase what is absolutely necessary. This was a major change in the buying trend in the market. Even tourism took a serious hit as traveling became expensive and somehow impractical.
Consumers are doing their best to cope up with the present situation by trying to be thrifty with their purchases. The demand for cheaper products is on the rise. This is becoming a challenge for the large companies whose products are rather expensive. The brand loyalty of consumers is being challenged as they begin to discover cheaper brands, some of which are relatively unknown yet offer the same products with the same level of quality. Some of these brands have been on the market for some time now catering to the middle level market. Basically you are buying the same products with the same quality that you want but with a different brand and at a cheaper price. What a lot of people do not know is that there are a lot of relatively cheap products out there in the market that they can buy without having to put up with the high prices.
The purchasing power of consumers is as affected as the business industry. What were normal prices for them once are now a bit expensive. Everybody feels the need to be thrifty with their purchases. However, consumers should not worry about that because everything that they need to purchase can still be purchased and at lower prices if they can put up with the change of label. After all we are in a crisis and we should explore all our options to maximize our purchasing capacity.