Cultural Creatives Lifestyle and LOHAS Markets by Paul H' Ray

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Cultural Creatives Lifestyleand LOHAS Marketsby
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

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The best market for LOHAS is THE CULTURAL
CREATIVES50 million in United States 26 of
U.S. Adults80-90 million in European Union
30-35 of E.U. Adults Total Disposable Income
(After Taxes) 1.2 TrillionUnited States
Population, Year 2000
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THE CULTURAL CREATIVES Driving customer force
of the LOHAS IndustriesLifestyles of Health
and SustainabilityLOHAS Sales2000 227
Billion 2,000 per CC householdMarket Potential
4-6,000/hh
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THE CULTURAL CREATIVES

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

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NMIs Key LOHAS SegmentsProduct Use Attitudes

• LOHAS Users32.368 Million Adults
• 7/year growth. Large concerns for familys
  health, sustainability of planet , future of
  society, personal development
• Nomadics 39.283 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

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NMIs LOHAS Values Buying

• I will usually buy from a company whose values
  are like my own.
• LOHAS segment90 vs. US62
• Socially Responsible Investor 82
• Green Building Products 73
• Interested in Hybrid Car 67
• Energy Efficient Electronics 66
• Source Natural Marketing Institute, 2002 Survey

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ValueGraphics

• 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

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ValueGraphics

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

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The Culture Wars 50 Years Ago
50TRADITIONALS
50 MODERNS

Secular, materialist

Conservative, pious

The big city

Small town, country

Hip, up to date

Square, out of date

Style efficiency

Character, reliability

Cary Grant

Jimmy Stewart

Lauren
Bacall

June Allyson
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There are 3 Subcultures Today

Traditionals
24.5

Moderns
49.4

Cultural
Creatives
26.1
Total 100 Source 1999 Survey for US Government
Presidents Council on Sustainable Development
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Whats 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

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Whats Important to Traditionals

• Patriarchs should dominate families
• Feminism is a swearword
• Keep traditional mens/womens 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

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Cultural Creatives Values

• Ecology, beyond environmentalism
• Planetary awareness concerns
• Social responsibility social concerns
• Authenticity personal, business, politics
• Relationships, Helping others
• Personal Growth, Spirituality
• Feminism, Womens Issues
• Neither Left nor Right, but in Front!

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Three Preferred Cognitive Styles

• Traditionals Fend off a bad, complex,
  ill-understood world. Black-and-white,
  good-and-evil, 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.

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Demographics Almost Useless for This Values Go
Deeper

• Cultural Creatives slightly upscale
• Avg. Income53,000 (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)

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Demographics Almost Useless for This Values Go
Deeper

• BUT CCs 60 women overall
• Core group (opinion leaders) are 67 women, or
  21 womenmen
• Women lead the emerging cultural change
• Womens views are becoming public for the first
  time in recorded history
• The CC womens big complaint
• Where are all the good men?

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The Cultural Creatives Story

• Its 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

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The Cultural Creatives Story

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

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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

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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

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Cultural Creatives Lifestyles

• Media Habits
• Watch Half as Much TV (Dont 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

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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

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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

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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

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Marketing to Cultural Creatives

• Learn Their Language
• Stories not bullet points
• Lots of Evidence, few arguments
• Personal experiences evidence
• Customers viewpoint,
• not producers or experts
• Spoken language among friends
• Speak directly to their values
• Connect to their larger concerns

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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

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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

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Advertising and Information

• DO LESS General Media Ads or PR
• Confusing variety of articles
• They dont 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

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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?

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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

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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.

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Paul H. Ray, Ph.D.Consulting on Cultural
Creatives101 Bishop Ct.Novato, CA
94945415-897-2894paulhray_at_aol.compaul_at_culturalc
reatives.org