Fragile optimism

During Arendalsuka, Finans Norge held a macroeconomics debate asking What’s the trajectory of the Norwegian economy and what do consumers expect?

Finans Norge showed us their barometer, where they quite simply asked people what they thought about their own finances and the nation’s economy. The survey started in 1992, and the numbers they presented were current to the day – all the way to 7 August.

Norwegians don’t pore over Finansavisen, but they’ve picked up on a sense of unease in the finance market. They’ve gone on holiday, or skipped it, and they know the Norwegian krone is weak and that there is uncertainty about where the interest rate is going.

• Norwegians’ expectations of their own finances are lower than a few months ago.
• The interest hikes gave people a shock, but they pulled it together and figured that they could still handle it.
• This led to a rise in optimism this spring.
• This has now levelled out – people have worked out that we’re not seeing an interest rate drop before Christmas, and that the concerns surrounding the Norwegian krone have made people insecure.

Finans Norge calls our current situation “fragile optimism”.

Participating in the panel debate, Olav Chen from Storebrand Asset Management said that people are prioritising much harder. They’re cutting back on restaurant visits and postponing construction projects.

The most positive aspect is that the youngest and oldest are less affected by what is happening in the Norwegian economy right now. The youngest don’t have much debt – and neither do the oldest. This gives us a clear message about which customers should be prioritised.

In my view, this is highly relevant to us at Texcon. I’m staring at the revenue figures for our members. All told, we’re still seeing solid growth. At the same time, I see that not all the shops are on board for this journey. As a leader, an important task falls on me – I have to dispense advice.

Here’s some of it:

• Don’t assume that everyone who enters your shop is slamming the brakes – look to the youngest and the oldest
• Be true to your concept and your customer demographic
• People are focusing more on priorities – emphasise that the clothing you sell is made from quality materials and will endure
• Adapt your marketing to the shop. If you’re in a shopping mall, the flow of customers is constant, and you must tempt them to drop by. As a standalone shop, you must continuously remind people of your relevance through social media
• Be an optimist! Face fragile optimism with a shopping experience that feels both reassuring and inspiring. Create an atmosphere that radiates positivity.