Opinion: Leveraging the 'staycation' effect

'It's no secret that consumers' spending habits change during tough times. 

To succeed, it's essential to know what kinds of products maintain their appeal and understand the new buying habits of consumers.

Research released by Synovate found that two thirds of Australians have been forced to cut spending in the past six months.

People are re-assessing where they spend their entertainment dollars.

A trend that's really become popular this year is the 'staycation'.

This is where people invest in products to make their home a nest of comfort in tough times - a stay at home vacation.

It's all about spending hard-earned relaxation time at home to save money, so it makes sense to buy products that make for a fun day or night in. 

Australian retailers have a huge opportunity to leverage the staycation trend to sell interactive entertainment products.

Entertainment provided by a single video game, for example, can last days or even weeks (and more if we're talking about party games), which is much longer than a trip to the movies.

Making the proposition even simpler, social games like the sing-along party-starter Lips and Guitar Hero make great options for fun weekends with mates when you add some drinks and nibblies.

It's all about highlighting the cost-efficiencies of at-home entertainment - cheap fun in challenging times.

As consumers want more for less, retailers can recommend add-on products to compliment their customers' existing home entertainment setup.

For example, a gaming console is a great companion for a High Definition TV.

Teamed with a PC running Vista it unlocks the console's set-top box functionality so users can watch, pause and record television without having to buy a separate box.

The same console can also be used to store and stream music as well as hold photos while enabling online chat and gaming through Xbox LIVE.

The result is less clutter in the lounge room to create a digital lifestyle.

 Gaming industry revenue in Australia rose 47 percent to $1.96 billion in 2008, which is twice the size of the Australian cinema box office sector.

This shows that stay-at-home entertainment is well and truly part of our popular culture.

Many of the trends that emerge as a result of the current economic landscape, like the mainstream embrace of interactive home entertainment, will stay around for years. 

Retailers need to seize opportunities now to be ahead of the curve.