By Paula Rosenblum, Managing Partner
10/13/2009
Several forces have started to come together to provide a vision for post-recession life. I suppose what we see is our own version of the “green shoots” of economic recovery the media talks about. But more than that, it’s another vision of the (tired phrase alert!) “New Normal” we’ve been hearing and postulating about. Notwithstanding obvious new price sensitivity, fear of personal economic meltdowns and concern over the rapid dissolution of personal wealth, the consumer is sending other, opposite signals that we’ve not paid enough attention to.
1) Despite the downturn, sales of natural/organic pet foods continue to rise. I got this information first hand from a very large pet supply retailer. As long as the price is reasonable, more people are taking the “natural” road for their pets.
2) While total sales in organic foods are down, we’re seeing increased interest in store brands. An excellent piece in last week’s RetailWire contained some really interesting data points and ended with the sentence, “”Organic may not have hit 'critical mass' just yet," added Nima Fotovat, general manager at Shandiz Natural Foods, "but, clearly, it's not a fad; it's here to stay... And retailers know it."”
3) In the midst of our national debate on health care, citizens continue to move towards complimentary products and services not covered, or at best, minimally covered by most insurance plans. According to the National Center for Complimentary and Alternative Medicine (a division of the NIH), in 2007 83 million adults spent $33.9 billion out-of-pocket on Complimentary and Alternative Medicine (CAM). Those costs represented 11.2% of all out-of-pocket expenditures on health care at that time.
4) An enormous community of interest has grown up around organics, alternative therapies and treatments, and other otherwise under-covered alternatives to traditional doctors and care. Of course, the web has become a source of both good and bad information about those alternatives.
This brings me to Acufest…a first of its kind event held at the Biltmore Hotel in Coral Gables two weeks ago. Over a thousand Miamians spent between $20 and $35 apiece to attend demonstrations, trainings and lectures about acupuncture, herbal remedies, organic lifestyles, and take part in a free organic food and wine tasting, courtesy of the Biltmore itself. The University of Miami’s Miller School of Medicine was a key participating institution for the event.
Acufest is the first of its kind for two reasons 1) Practitioners cannot pay for a booth…rather they must apply for, and be accepted into the event and 2) No selling happens at the event at all. It is strictly educational in nature.
To understand the significance of 1,000 people paying to come to this event on a hot October day, it’s worthy to understand South Florida regional dynamics. These are not tourists. It’s still too hot in Miami (way too hot), and tourists are out leaf-peeping up north, rather than sweating down here. These were Miamians.
This is the same Miami where the unemployment rate exceeds 10%, home values have been cut in half over the past eighteen months, enormous new high-rise condominiums remain completely vacant, and crime is on the rise. These Miamians spent some scarce discretionary money to come INLAND to Coral Gables, to learn more about alternative therapies, and organic and “natural” products.
I spoke with Daniel Atchison-Nevel, founding co-chair of Acufest and he shared his vision with me. Always thinking about the big bucks, I asked him if his goal was to see Acufests sprout up all around the US. His answer was “My goal is for Acufest to become a Miami institution…and to see other hotels emulate the Biltmore in its holistic practices. I’d like to see this event as well-known and highly anticipated as Art Basel (note: Art Basel is the single largest art show in the world and is held every December in Miami) and create a new model for educating the public on the value of healthy living.”
I asked him about possible retail sponsors for the event next year. Dan said, “I’d be happy to have some retailers sponsor this kind of healthy initiative. It seems a natural way for them to become part of this community and engender more trust among their customers.”
This brings us full circle, back to the subject of the “New Normal.” After being pounded by the media on how we’ve become fatter, lazier, and generally unhealthier, the public is looking for alternatives. While you can grow equally fat on organic foods as inorganic ones (personal testimony here!), there’s still a growing sense that what we put in our bodies matters. Pet foods, people foods, vitamins, organics…people are looking for a healthier balance. They’d like fewer acute episodes and the resolution of chronic conditions. Retailers can take leadership roles in supporting their customers in these efforts. It may even make them a bundle. And that would be a really nice win-win. And that would a very nice “New Normal.”
Note: Full disclosure: 1) Dan Atchison-Nevel is my personal acupuncturist. He helped me get past a horrible reaction to antibiotics this winter. He did not request this article, or have any input to its content beyond the quotes I’ve included. 2) I love the Greenwise section of Publix. And, 3) as an equal opportunity patient, I make regular use of traditional medical doctors and medicines as well.
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