In today's global economy, consumer behavior and psychology have led to shifts in spend that companies must understand in order to navigate turbulent waters. In the first of a multi-part, multi-step study of the "consumer of the future," Bain & Company has gauged the effect of the global economic downturn on consumer trends that already had begun to change purchasing behavior. The study shows that, even as spending and psychologies adapt to a new world, retailers and producers need to double down on their core customers in order to find growth where it's achievable.

Bain's research finds that convenience, "green," and wellness trends are still relevant, even while behaviors inside these trends have begun to segment in new ways. In addition, trends such as nesting, spend polarization, and small personal indulgences are actually accelerated by the downturn. In the background, long-term trends such as demographic and population shifts are largely unchanged by the economy.

The study findings indicate how companies can protect their premium brands during a downturn against aggressive, price-eroding competition. It makes clear the importance of avoiding making easy mistakes that squander years' worth of brand equity for a few quarters of sales. Bain's insights on consumer behavior show finally that, even in a downturn, brands can and should continue to innovate, to deliver premium experiences that meet the changing needs of their consumer segments.