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Monday, 14 July 2008

What The Heck Is Going On With The Economy?

I've had a client blog about the CEBR report which shows that house prices in London have risen on average by 6.4% over the past 12 months. Now a client of mine who are estate agents in London has blogged about that they've seen house prices rise by a staggering 20% in some areas of London over the same period.

The thing is that we've been shown at every opportunity how bad the economy is. They're saying people are now in negative equity and some have seen 40% wiped off the value of their property.

We're also told that retail sales are down with Sainsbury and M&S shoppers are moving to Asda and Lidl, we're also told that car sales are down shed loads.

But what I see as going on is that over the past few years some people have made a serious wedge and are immune to the increases in utility and commodity prices - they'll spend what they like and how they like without taking a second thought.

Others are feeling the pinch big time and really struggling to cut costs.

I see over the course of the year a flight to "cheap", "discount", "offers", "free", and the such like keywords. I also see a move to lower-cost, even domestic holidays taking a greater share of the market. Merchants that offer real value for money will thrive.

I've seen it with another client recently where they're not offering products on sale and have seen revenue fall in the face of virtually every other competitor slash their prices.

Shoppers will flock to the internet in even greater numbers to find bargains - we've got to make sure that our SEO strategy is spot on to capture these "value-seeking" purchasers. Is your SEO ready for them?

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