Death of Mediocre

There was a time when people would think themselves lucky to have a telly. Foreign food was quite exotic. Foreign holidays were for the toffs. But then people started getting fancy ideas above their station, as they got their hands on goods that were once way beyond their means.

A lot of this democratisation can be attributed to technology. The cost of consumer technology, from the washing machine to the mobile phone, has plummeted, while devices have become more powerful, in accordance with Moore's Law. Now most people in developed countries think it's their god given right to watch their favourite shows, when they want to, on a flatscreen high definition TV.

Exercising this right in all their consumption, consumers expect everyday luxury and good quality at an affordable price tag. At times, they'll also treat themselves to real luxury and pay the exorbitant price. Increasingly, what they won't stand for is mediocre goods at fairly high prices. We're seeing the death of the middle ground.

Polarisation is occurring across industries. In the hotel business, on the one hand, there's 'boutique budget' accommodation with mandatory flatscreen TV and wifi, for example, Accor's Motel 6 chain in the US; at the other end of the scale, luxury hotels like the Westin in Sydney.



Motel 6


Supermarkets have low-cost, good quality staples, such as the You'll Love Coles range, and they have the premium deli-quality offerings.

Gordon Ramsay adjures owners of small restaurants to do a few simple things really well, even if it's soup or a Croque Monsieur, and offer them at a competitive price. His own restaurants are the epitome of ultra-luxury, for when people want to spoil themselves.

But still, in all sectors, falling between two stools, there's a quagmire of a) fairly cheap and fairly shit and b) mediocre and overpriced goods, fighting a losing battle to stay relevant. Unfortunately, a lot of traditional, household brands fall into this category. They're pushing out the same old so-so goods that were crowd pleasers in the 1980s. They may alter the look/taste/feel incrementally, but that's just not enough. Mediocre is dying and cannot be reanimated, despite the best efforts of marketing.

At the same time, consumer segmentation based predominantly on socio-economic, or demographic, profiling, is leading businesses up the garden path. That's because the same people, who are buying the quality budget goods, are also buying the high-cost luxury. They're not different segments. They're the same people at different times (who can be more different in their behaviour from one occasion to the next than two entirely different people!) They'll shop at K-Mart one day, and David Jones the next. They'll choose the thrifty option at times, so they can treat themselves when the need arises.

Weighing up their time, energy and money, people are constantly making trade off decisions, consciously, or unconsciously. Mediocre brands hardly feature in these decisions. They may still be household heavyweights, but this is largely thanks to shoppers' habitual behaviour. These consumers are giving way to new generations, who expect more.