While 37% of consumers do not believe the national economy will improve in 2009, 45% expect their personal economic situation will, a new Forrester Research Inc. study says. Why? Because while consumers believe macroeconomic conditions are beyond their control, they have been agile in adapting their microeconomic circumstances to the changing economy, the study says.

“Americans have historically been criticized for low savings and high consumption rates, but 58% of consumers are now reducing their overall spend levels compared with one year ago,” says principal analyst Sucharita Mulpuru, author of the study, “eBusiness and the Economy.” “This reduction in spend is expected to trickle down to sectors such as online retail, which had historically been perceived to be more recession-resistant.”

For e-retailers to succeed in 2009, they must effectively address customer confidence issues, convey value in their products and focus on customer retention, the report advises.



“The financial crisis and collapse of long-standing banking institutions were perhaps the biggest reasons for the rattling of consumer confidence,” Mulpuru says. “Businesses that remain strong will communicate their strength on their home pages, in their e-mail communication and in their inbound communication with call center representatives.”

In addition to addressing customer confidence, e-retailers should explain how their products help consumers save money, the study says. “Because of the drastic reduction in overall consumer spend, businesses that best address customers’ need to save will capture disproportionate wallet share,” Mulpuru adds.

And one of the key strategies to success in 2009 will be reallocating budgets toward customer retention efforts.

“A smaller universe of new customers means that businesses will be forced to be particularly careful with their marketing expenses,” Mulpuru concludes. “Rather than focus on customer acquisition tactics like search marketing that web businesses have traditionally relied upon, the companies that will thrive during a downturn will be more focused on retention tactics such as e-mail marketing and customer relationship management efforts that seek to find loyal, recession-resistant customers.”

The subprime crisis that originated in the United States has prompted a global economic slowdown. In an interview with China Securities Journal, Li Yang, Director of the Institute of Finance and Banking under the Chinese Academy of Social Sciences, reflected on the lessons and opportunities the crisis provides for China's financial product innovation and development strategies.




During the interview, Li advocated that financial innovations in China should serve the real economy, and the government should give equal importance to the development of the capital market and financial agents while improving the country's financial system. He said the financial crisis in the United States has renewed the idea of establishing a new international monetary system, and he himself supports a fixed exchange rate system. He said China could not avoid buying U.S. treasuries as long as the country is still in possession of huge foreign exchange reserves.