More Related Content Similar to 2010 Consumer Trend Predictions (20) More from Ayman Sarhan (20) 2010 Consumer Trend Predictions1. MINTEL PREDICTS CONSUMER BEHAVIOUR
TRENDS FOR 2010
In a year where the global economic crisis has made its presence
felt, Mintel predicts the seven key consumer behaviour trends for
the year ahead, looking at how adversity has created a new set of
value systems. Resilience will define consumer behaviour around
the globe as strengthened resolve and changed behaviour drive
a new lifestyle.
While in 2009 fear played an important role in shaping consumer
behaviour, 2010 will see a return of confidence and adaptation to
overcome the restraints previously imposed on consumers.
Balance has become the new mantra for a changed society.
A balanced cheque book, and a balanced diet are all hot topics,
but as some consumers find that they are able to spend again,
2010 could find balanced spending and balanced consumption key
developments for the year ahead.
Below, Mintel identifies the key trends which will have an impact on consumer lifestyle in 2010:
Resilience
What is Resilience?
Following a year in which consumers have faced the impact of the recession on their lives, 2010 will see
social and behavioral shifts resulting from the recession. In 2010, Mintel expects to see a trend towards
resilience - consumers demonstrating an ability to recover from, or adjust easily to, any misfortune or change
brought on by the recession with improved attitudes and strengthened resolve. Resilience will encompass a
new skillset for consumers as in the “New Economy,” cooking, meal planning, and food budgeting are
moving back into the fore as skills that women – and men – would like to have.
What is the current situation?
Around a third of UK consumers see growing fruit and vegetables as a good way to cut bills and after years
of relying on restaurants and food manufacturers to provide ready-to-eat meals, many of us are in need of
some basic cooking lessons. Meanwhile, a quarter of US consumers say they can’t make the DIY improvements
they would like to due to lack of skill - highlighting another example of a skills gap which could be closed.
What’s next?
With many consumers still feeling the effect of the global downturn with lack of work, 2010 may see those
unemployed look to online education tools to help them develop additional skills whether for the home, social
or professional gain. Indeed, Mintel predicts a rise in the new skills consumers need for today’s changed
society. More than ever before, the home is at the centre of everything for consumers. Businesses that can
incorporate this changed mentality - and deliver what consumers need as a result - stand to benefit.
continued...
© 2009 Mintel International Group Limited.
All Rights Reserved. Confidential to Mintel. www.mintel.com
2. Reviewing and Re-evaluating
What is Reviewing and Re-evaluating?
The impact of the past year has changed consumer lifestyles and attitudes, and Mintel forecasts that 2010
will see consumers re-evaluate their current situation. The past year has increasingly seen Value become an
important part of the new economy. Mintel has seen a surge in value initiatives, and even those seemingly
unaffected by the recession have made cut backs to obvious status symbols out of respect. However looking
ahead, the meaning of value will run deeper – price matters in 2010.
What’s the current situation?
Consumers today are far more deal-conscious and are cutting back on treats and luxuries to save money.
Mintel research shows that in the UK, over half of Brits buy more on promotions and 28% have cut back
on treats and luxuries. Meanwhile, in the US, middle-income households have been hard hit, as those with
household income of $25K-75K are most likely to economize. However, even upper-end and luxury markets
are benefitting from offering special deals or showcasing high-value, as in the US six in 10 households with
incomes of over $100K report spending less.
What’s next?
Budget brands of the major grocers and discounters are benefiting from the trend to down-trading, with 36%
of UK consumers buying more Budget Own Brands. However, in 2010, we will see consumers willing to
purchase if they are convinced of the ‘value’ that brand offers. Consumers will not just buy discount brands,
they will scrutinise products more, and buy those that they perceive as being good ‘value’. Therefore in 2010,
those brands that engage consumers effectively stand to be successful despite current barriers such as price.
Prove it – Accountability
What is Prove it – Accountability?
Because consumer confidence worldwide this year has taken a hit, 2010 will see increased consumer
demand for proof – or results. The need for accountability is, in itself, nothing new, but today there’s so much
information and competing ideas, ideologies, and options to wade through that without data all is lost. We’re
tracking more and more areas of our lives.
What’s the current situation?
The explosion of micro-blogging site Twitter in 2009 has enabled users globally to track their followers and
resulting analysis websites have enabled them to evaluate their status, judge popularity and ultimately aim
for more exposure. In the modern world, personal informatics, or life-logging projects, are part self-help, and
part fun. Furthermore, there are a growing number of online tools to help people pay attention to virtually
everything, ensuring transparency – everything is out in the open in the internet age and secrecy is no longer
acceptable for today’s consumers.
In the UK, recent Mintel research shows that around 16 million adults use personal finance discussion boards
and 23 million use price comparison sites when looking for guidance on financial products – looking to get
the ‘real story’ on deals available. Meanwhile in the US, some 42% of consumers indicate they don’t know
what to believe as to whether natural and organic personal care products actually are natural or organic.
What’s next?
As consumer demand for accountability intensifies – and with more tools at their disposal to find out – Mintel
predicts that in 2010, brands will need to pull out all the stops to deliver.
continued...
© 2009 Mintel International Group Limited.
All Rights Reserved. Confidential to Mintel. www.mintel.com
3. Escapism
What is Escapism?
The past year has meant a huge amount of economising and scaling back on previously normalised treats or
experiences. While consumers are becoming accustomed to staycations, small indulgences, cooking at home,
and home entertainment, their discipline is not perfect and Mintel predicts Escapism to be a key trend of
2010. Consumers will look for ways to escape from the tyranny of value, cutting back and saving such as
splurging or lashing out on a big purchase – consumption has never been solely rational…and it never will be.
What’s the current situation?
Not only do consumers have more to watch than ever – with use of multichannel TV, video on demand and
TV online continuing to rise – but consumers are investing in increasingly larger and more sophisticated
home equipment (such as widescreen and HD-ready TVs) to watch it on, ramping up the ideas of escape
and immersion in entertainment. In the US, Mintel research reveals some 34% of consumers are interested
in flat-panel televisions for themselves, while 27% are interested in purchasing a laptop PC for themselves.
What’s next?
In 2010, Escapism will resonate both in and outside of the home. Savvy brands are already capilitising on
differentiation into experiences and the merging of mediums such as 3-D media, audio literature and vertical
integrated platforms has created a new landscape. A plethora of elements are being gradually turned into
experiences and attractions and in 2010, this will provide the key to delivering the escape consumers are
seeking, going beyond the price tag to deliver real value.
Media Evolution
What is Media Evolution?
The past year has seen an explosion of consumers adopting Micro-blogging, social networking, and interactive
media as part of their everyday lives. As confidence in usage grows, 2010 will see consumers incorporating
these forms of media ever more into their daily lives and looking for ways in which doing so can change and
simplify daily tasks. Consumers will increasingly look for what’s next in the media sphere and want to examine
how these changes will affect the way they do things.
What’s the current situation?
Technological innovation is increasingly usurping the traditional way of doing things and consumers are
seeking to make decisions about media influence, where they go to get information and the gadgets they use
to receive it. Viewing habits are changing and fragmentation is growing, meaning advertising is changing too
– more potential for targeting in unusual places, such as TVs on public transport.
What’s next?
While in 2010 use of these tools will continue to evolve, the big questions for consumers will revolve around
the nature of authority and effective uses of media to engage. Media evolution will continue to be a growing
influence on the method in which brands interact with and attract consumers. In 2010, the emphasis for
consumers will be sourcing engagement at a wider level than ever before and harnessing the growth in
partnerships and technology in order to achieve it.
continued...
© 2009 Mintel International Group Limited.
All Rights Reserved. Confidential to Mintel. www.mintel.com
4. Ethical Responsibility
What is Ethical Responsibility?
While we’ve witnessed the rise of corporate social responsibility and sustainability efforts over recent years,
in 2010 it’s going to be even more important to coax consumers out of their spending slumber and to wean
retailers off perpetual discounting. Ethics will play a large part in building up brands and influencing
purchase. For businesses to rebuild brands through ethical efforts they will need to consider the connection
with the consumer – giving an emotional reason to buy.
What’s the current situation?
Environmental and ethical issues retain the power to attract attention and spend with nearly half of UK
adults (25 million) viewing them as important or very important and in the US 39% say they’d pay more for
environmentally friendly products. Awareness is fast becoming a key driver in consumer engagement.
Currently just 30% of tea drinkers in the US say they usually purchase fair trade certified tea and in the UK
44% say they actively look for appliances that use less water.
What’s next?
While price implications still resonate, raising awareness of ethical responsibility in 2010 and its associated
benefits for the consumer in 2010 will pay dividends for the industry. In addition, 2010 will see activity in
eco-friendly labels and inks, and subtle changes in packaging. As consumers are ever more demanding, they
will want responsibility to be a chief concern for brands and businesses, creating more scrutiny on ethical
claims than ever before.
Stability
What is Stability?
The overall effect of the past year has left its mark on consumers around the globe. We have left the spending
binge of the past few decades and have just now begun to find that moderation and preparation are
possibilities. Mintel predicts 2010 will be a year for increasingly seeking balance and readjusting to the
economic situation as it is now and adapting lifestyles accordingly.
What’s the current situation?
The world is already responding to this demand in many industries as it impacts at the end of 2009. Luxury
designers have begun offering lower priced lines, pushing fashion back from its elite status so that it sits
between expensive and discount. In addition, increased manufacture of multi-use products are helping
people save money by doing a little of everything. Food is also affected by consumer reaction to this, with
“real’ food back on the menu once more due to consumer demand.
What’s next?
Balance has become the new mantra for a changed society. A balanced cheque book, a balanced diet are all
hot topics, but as some consumers find that they are able to spend again, 2010 could find balanced spending
and balanced consumption the key developments for 2010.
© 2009 Mintel International Group Limited.
All Rights Reserved. Confidential to Mintel. www.mintel.com