The shadow of global anxiety looks unlikely to disappear anytime soon, but the gloomy predictions are apparently boosting the sales of nostalgia brands,

"We're worried about global warming, we're worried about food scares, we're worried about working too hard and now we're worried about the credit crunch," says Jonathan Sands, chairman of Leeds branding and marketing company Elmwood. In Japan, it's perfectly normal for school children to have GPS systems stitched into their blazers and while we may not have reached that situation in the UK, consumers are worried about what the future will bring. In a world of anxiety, customers
want to align themselves with products which remind them of happier times.

"It's what's known as contemporary nostalgia. It's the reason we like the new Mini car, why retro-trainer designs from the likes of Puma and
Adidas have been successful and why brands like Hovis, which hark back to a simpler era, should do well."

The last few months may have given many companies little to smile about, and increasingly clever tactics are needed to get people to part with their cash. While slashing prices and two-for-one offers may seem like the easy option, the novelty value quickly wears off. "What people really want is a little light relief," says James. "There's a brand which is huge in America called the Geek Squad which has just been launched in this country by Carphone Warehouse. Basically, it exploits the idea that while we all want the latest plasma screen television and hi-tech computers, most of us have no idea how they really work. The Geek Squad have FBI-style uniforms except their trousers are deliberately two inches short. They will come out and fix your computer and with the tagline, 'if you never saw us we were never there', the idea is that no one else need ever know. It uses humour to tap into the embarrassment factor.

"Consumers, particularly men, don't like to admit defeat, but sometimes we all need a little help. Companies can no longer rely on the fact they have a service which people will want to buy, they have to stand out from the crowd."

While optimists have suggested the current global crisis is proof of the cyclical nature of things, many experts, James among them, have become convinced there has already been a fundamental shift in the world's markets and there will never be a return to pre-credit crunch days "People say history comes in cycles, but I'm not so sure," he says. "I honestly believe the traditional way of doing
business and the certainties that people once had have gone. The credit crunch is not just for Christmas.

"I was in India recently and the pace of change is phenomenal. There are still many people living on a dollar a day, but at the same time a new consumer appetite is emerging. It's still quite common to see a family of five riding one motorbike, but Indian car giant Tata has also just produced a four- seater family car for just £1,000. It is the ultimate low-cost run-around. People in Britain are astounded by the fact you can produce something of quality so quickly and cheaply, but it's something we better get used to.

"All money is flowing eastward, and if we don't respond to what is happening in places like India and China then we will be left behind." In a bid to enlighten those coming into the industry, James recently talked to young designers studying at the University of Huddersfield. Stopping the creative brain drain has become something of a mission, but too often he says he hits a brick wall.

"There's a lot of burying heads in sand," he says. "Britain is even behind the rest of Europe when it comes to seizing new opportunities
and new markets, because we are too content to trade on past glories.

"We do produce some great designers – sadly they end up leaving Britain to work elsewhere and if we don't find a way of hanging onto them
then homegrown companies will lose out. Customer loyalty is no longer a given and companies need to refocus. If marketers saw their business as the public do, some wouldn't like what they saw staring back at them."