Who are the Cultural Creatives

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					Cultural Creatives Lifestyle and LOHAS Markets
by Paul H. Ray
Based on 15 years of research – 150,000 (cum.) people surveyed – 500 focus groups – 60 in-depth, 4-8 hour interviews on life histories

The best market for LOHAS is THE CULTURAL CREATIVES
50 million in United States = 26% of U.S. Adults
80-90 million in European Union = 30-35% of E.U. Adults
Total Disposable Income (After Taxes) = $1.2 Trillion
United States Population, Year 2000


Driving customer force of the LOHAS Industries*
*Lifestyles of Health and Sustainability

LOHAS Sales2000 = $227 Billion $2,000 per CC household Market Potential = $4-6,000/hh

LOHAS Industries in Year 2000:
1. Sustainable Economy 2. Healthy Lifestyles 3. Alternative Healthcare 4. Personal Development 5. Ecological Lifestyles Total: $76.5B 27.8B 30.7B 10.6B 81.2B $226.8B

Source: Natural Business Communications

NMI’s* Key LOHAS Segments Product Use + Attitudes
• LOHAS Users=32.3%=68 Million Adults 7%/year growth. Large concerns for family’s health, sustainability of planet , future of society, personal development
• “Nomadics” =39.2%=83 Million Adults “Move from place to place” on product use and above concerns. Within these, 39% moving toward LOHAS, 15% away.
*Source: Natural Marketing Institute, 2002 Survey

NMI’s LOHAS: Values & Buying
• “I will usually buy from a company whose values are like my own.” • LOHAS segment=90% vs. US=62% • Socially Responsible Investor = 82% • Green Building Products = 73% • Interested in Hybrid Car = 67% • Energy Efficient Electronics = 66%
*Source: Natural Marketing Institute, 2002 Survey

• Values and Lifestyles Segments from Cultural Differences, NOT Psychographics, NOT Individual Differences • Who has really changed their lifestyle • Cuts across product benefit segmentations

• Subculture implies all psychological types: smart/dumb, inward/outer, thinking/feeling, good/bad, enlightened/regressive, etc. • As distinctive as French Canadians in Quebec

• A Subculture has different:
—Values = “My most important life priorities” Deeper than opinions, slower to change —Worldview = “How the world really works. What‟s real. What Life is all about”
—Lifestyle = “What to buy. How to live” Reflects lifestyle differences across many values-related product categories

The Culture Wars 50 Years Ago
50% MODERNS • • • • • • Secular, materialist • The big city • Hip, up to date • Style & efficiency • Cary Grant • LaurenBacall • 50%TRADITIONALS Conservative, pious Small town, country Square, out of date Character, reliability Jimmy Stewart June Allyson

There are 3 Subcultures Today • Traditionals 24.5% • Moderns 49.4% • Cultural Creatives 26.1% Total: 100%
Source: 1999 Survey for US Government President‟s Council on Sustainable Development

What‟s Important to Moderns
• • • • • Make or have a lot of money Climb the ladder of success to your goals Look good, be in style, dress for success Be hi-tech, on top of trends, innovations “When the going gets tough, the tough go shopping!” • Lots of choices, as consumer, voter, boss, worker • Economic and technological progress • Reject Traditionals, Natives, „New Agers‟

What‟s Important to Traditionals
• • • • • Patriarchs should dominate families Feminism is a swearword Keep traditional men‟s/women‟s roles Belong in family, church, community Uphold conservative versions of their own particular religious traditions • Keep up customary, familiar lifeways • Regulate sex: pornography, teen sex, extramarital sex, and abortion

Cultural Creatives‟ Values
• • • • • • • • Ecology, beyond environmentalism Planetary awareness & concerns Social responsibility & social concerns Authenticity: personal, business, politics Relationships, & Helping others Personal Growth, & Spirituality Feminism, & “Women‟s Issues” Neither Left nor Right, but in Front!

Three Preferred Cognitive Styles
• Traditionals: Fend off a bad, complex, illunderstood world. Black-and-white, good-andevil, simple categories.

• Moderns: Tightly focused attention on what
succeeds. Ignore side effects. No distractions. Linear analysis. “Inside the box” thinking.

• Cultural Creatives: Synthesize, take in from
a wide range of sources. See the whole system. Can do Moderns‟ analysis, but may not trust it. And in addition… My inner experience is valid.

Demographics Almost Useless for This Values Go Deeper
• Cultural Creatives slightly upscale: — Avg. Income=$53,000 (US = $46,000) — 30% College Grad (US = 24%) • BUT wide range of income, education, occupation (working class to wealthy) • Close to national profiles on age, race, ethnicity, religion, region (5% more on each coast)

Demographics Almost Useless for This Values Go Deeper

• BUT CCs = 60% women overall
• Core group (opinion leaders) are 67% women, or 2:1 women:men
• Women lead the emerging cultural change • Women‟s views are becoming public for the first time in recorded history • The CC women‟s big complaint: “Where are all the good men?”

The Cultural Creatives Story
It‟s about floods of new information world-wide over last 40 years: Planetary environment/ecology Health beyond catastrophic medicine Organic food vs environmental-poisons Spiritual traditions from everywhere Nuclear, infotech, biotech, nanotech all go from promise to threats

• • • • •

The Cultural Creatives‟ Story
• It‟s about women‟s values and

concerns going public for the first time
in recorded history • It‟s about the role of the new social movements and consciousness movements in educating the Western world over the past 40 years

Cultural Creatives‟ Lifestyles
• They dominate the markets for:
– – – – – – – – Natural and Organic Products / Foods Alternative / Holistic Health Care Eco-Tourism, Innovative Travel Socially Responsible Investments = $2 Trillion Education and Workshops Arts and Culture Personalization of Home Psychotherapy and Counseling

Cultural Creatives‟ Lifestyles
• Want to Buy, But Have Barriers: – Ecologically Sustainable Products – „Green‟, Safe, Low to Mid-Price Car – Solar/Green Home + Master-Plan Community

– Good Education for Their Children
– Media That Respects Their Values

– Complementary Health Care & Insurance
– More Idealism/Spiritual Depth in the Arts

Cultural Creatives‟ Lifestyles
• Media Habits:
– Watch Half as Much TV (Don‟t waste $$) – Read Twice as Many Books – Listen to More Radio – Read More General Market AND More Lifestyle Targeted Magazines – Just Now Catching Up on Internet Use Will drill down on your website – Very Critical of the News Media

Cultural Creatives‟ Lifestyles
• Creators & Consumers in Arts
– Music, Literature, Magazines, Movies, Videos, Arts & Crafts – Attend workshops, art and crafts fairs, readings, showings — as amateurs – A huge portion of professional artists & writers are Cultural Creatives – The discerning, critical audience

Cultural Creatives‟ Lifestyles
• Technology Moderates: Internet
– Embraced it only when people-friendly – A lot of e-mail – Surf a lot less – Get specific information and get out – Hate chat rooms – Visit sites recommended by friends, IF they fit their values – Will drill deep, IF they like your website

Cultural Creatives‟ Lifestyles
• Holistic Everything:
– Mind, Body, Spirit need to be unified – Mostly NOT New Agers, who are the beginners/duffers at personal growth – Want help sorting out “fringey” stuff – Buy books, magazines, tapes about it – Original arts and crafts symbolize it – See the planet as a living being, and all of humanity as one people

Marketing to Cultural Creatives
1. • • • • • • • Learn Their Language Stories not bullet points Lots of Evidence, few arguments Personal experiences + evidence Customer’s viewpoint, not producer‟s or expert‟s Spoken language among friends Speak directly to their values Connect to their larger concerns

Marketing to Cultural Creatives
2. Be seen as a Virtuous Company, with Virtuous Products and Services • Be Transparent
— Show who you are: Your people, sources, practices, relationships to customers — What makes you good for health and the environment? — Increasing Trust Increases Sales

Marketing to Cultural Creatives
3. Do Relationship Marketing
• Keeping Current Customers Costs 1/4 of What Getting New Ones Costs • Transparency serves the relationship • Adopt their good causes = affinity marketing • Move toward Guerrilla Marketing, Word of Mouth, Creating “Buzz” • Women (CC) customers want relationships more than sexy features

Advertising and Information
• DO LESS General Media Ads or PR —Confusing variety of articles —They don‟t help the relationship —Ads are seen as intrusive, unwanted • DO MORE Lifestyle Targeted Media Ads/PR — Your best customers read eagerly — You can add to relationships there — Ads are cheaper

Advertising and Information
• Educate with good information:
— Do anything for product experience — Show lifestyle context of product use — Easy, cheap information = online — Give the ability to drill down easily — Tell them your criteria of good quality

• Any format that feels like personal recommendations from friends:
— What basis would their friends use for a recommendation?

Advertising and Information
• Use a “No B.S.” Media Strategy:
— Simple Honesty/Full Disclosure — Cut away advertising floss — But also show many “virtue points”

• Show you are a “good citizen”:
—Show who and where it comes from —Transparent production process —Disposal process is full cycle

CCs Past Growth Rate = 1-2% per Year for 40 Years.
• IF develop collective identity... • IF values & beliefs publicly visible • THEN, many Moderns would join up, and CC growth would accelerate:

• Cultural Creatives could be half the U.S. in 10 years.

Paul H. Ray, Ph.D.
Consulting on Cultural Creatives 101 Bishop Ct. Novato, CA 94945 415-897-2894