KNOW:
The Emergence of
the New Consumer

2010
KNOW: The Emergence of the New Consumer




  About the Study

● In-depth online survey conducted by
  Market Probe Intern...
KNOW: The Emergence of the New Consumer




  Introduction                                                                ...
KNOW: The Emergence of the New Consumer




  A Seismic Shift: All Maxed Out?
● Throughout 20th century, developed world s...
KNOW: The Emergence of the New Consumer




 I. Three Keys to Understanding the

      Relationship Between Consumers

   ...
KNOW: The Emergence of the New Consumer




Three keys to
understanding the
relationship between
consumers and society in
...
KNOW: The Emergence of the New Consumer




  Economies are on the rebound,
  but anxiety remains high
● The past decade h...
KNOW: The Emergence of the New Consumer




  What the crisis has changed is our
  confidence in the future, our sense of ...
KNOW: The Emergence of the New Consumer




  Anxiety rooted not so much in today’s reality
  as in imagining what tomorro...
KNOW: The Emergence of the New Consumer




  Anxiety rooted not so much in today’s reality
  as in imagining what tomorro...
KNOW: The Emergence of the New Consumer




  Anxiety rooted not so much in today’s reality
  as in imagining what tomorro...
KNOW: The Emergence of the New Consumer




Anxiety rooted not so much in today’s reality
as in imagining what tomorrow mi...
KNOW: The Emergence of the New Consumer




  Anxiety rooted not so much in today’s reality
  as in imagining what tomorro...
KNOW: The Emergence of the New Consumer




  Consequence:
  Reluctance to engage in long-term
  decisions (What if I choo...
KNOW: The Emergence of the New Consumer




Three keys to
understanding the
relationship between
consumers and society in
...
KNOW: The Emergence of the New Consumer




“Compared with our grandparents,
today’s young adults have grown up with
much ...
KNOW: The Emergence of the New Consumer




  Lands of plenty haven’t
  delivered the happiness promised
         I am act...
KNOW: The Emergence of the New Consumer




Stress of modern living
taking toll on mental health
        I worry about the...
KNOW: The Emergence of the New Consumer




  Widespread dissatisfaction
  with modern life

          In many ways, I thi...
KNOW: The Emergence of the New Consumer




  Society is perceived
  as shallow…
               I worry society has become...
KNOW: The Emergence of the New Consumer




…lazy…

                                                                     ●...
KNOW: The Emergence of the New Consumer




… and unable to work together for change

          I worry we are losing our ...
KNOW: The Emergence of the New Consumer




  In light of this individual and
  collective downturn, prosumers
  are exper...
KNOW: The Emergence of the New Consumer




The aspiration of reconnecting
with the natural world
                        ...
KNOW: The Emergence of the New Consumer




The aspiration of reconnecting
with the natural world
 Search term: “vegetable...
KNOW: The Emergence of the New Consumer




Echoes from another time…
  The 19th century witnessed two revolutions that pr...
KNOW: The Emergence of the New Consumer




The quest for zero risk
                                                      ...
KNOW: The Emergence of the New Consumer




Three keys to
understanding the
relationship between
consumers and society in
...
KNOW: The Emergence of the New Consumer




Recession is an opportunity
to step back and rethink
                         ...
KNOW: The Emergence of the New Consumer




The upside to the downturn
                                                   ...
KNOW: The Emergence of the New Consumer




Change may be:
Looking for something “bigger than self”
                      ...
KNOW: The Emergence of the New Consumer




It’s up to me now to
make change happen
                                      ...
KNOW: The Emergence of the New Consumer




  Change may be:
  Looking for culture
      I sometimes feel “uncultured”; I ...
KNOW: The Emergence of the New Consumer




Change may be:
Looking for human bonding
                                     ...
KNOW: The Emergence of the New Consumer




 Change may be:
 Looking for human bonding
     It is very important that fami...
KNOW: The Emergence of the New Consumer




  From “active pessimism” to “proactive mindfulness”
  In spite of their anxie...
KNOW: The Emergence of the New Consumer




II. Four Paradigms Underlying the New

     Approach to Consumption




      ...
KNOW: The Emergence of the New Consumer




  A new mode of consumption created by a
  consumer who is…
● More informed
● ...
KNOW: The Emergence of the New Consumer




The Four Paradigms of the New Consumer


                  Embracing          ...
KNOW: The Emergence of the New Consumer




            PARADIGM 1:
            Embracing Substance
● Hyperconsumerism has...
KNOW: The Emergence of the New Consumer




A pushback against a vapid culture…




                                      ...
KNOW: The Emergence of the New Consumer




…and pervasive lack of authenticity




                                      ...
KNOW: The Emergence of the New Consumer




Seeking a return to “Real”…




                                          43
KNOW: The Emergence of the New Consumer




…as symbolized by the Slow Food
 and Slow Travel movements




               ...
KNOW: The Emergence of the New Consumer




            PARADIGM 2:
            Rightsizing
● Signs of backlash against hy...
KNOW: The Emergence of the New Consumer




  Paralyzed by Choices: “Consumer Vertigo”

● Explosion of product choices thr...
KNOW: The Emergence of the New Consumer




  A move toward “Intelligent Simplification”

● Significant majority sees appe...
KNOW: The Emergence of the New Consumer




Looking to slow down
                                                         ...
KNOW: The Emergence of the New Consumer




Wanting “less”
                                                               ...
KNOW: The Emergence of the New Consumer




The New Elite?

              I respect/admire people who live simply
        ...
KNOW: The Emergence of the New Consumer




             PARADIGM 3:
             Growing Up
● Recent decades saw adolesce...
KNOW: The Emergence of the New Consumer




Growing up means being in greater
financial control…
            Saving money ...
KNOW: The Emergence of the New Consumer




…moving beyond immediate gratification…
  ● In the past year, I have been aski...
KNOW: The Emergence of the New Consumer




…and taking responsibility for the effects of
 their personal consumption
 ● “...
KNOW: The Emergence of the New Consumer




            PARADIGM 4:
            Seeking Purposeful Pleasure
● A hunger for...
KNOW: The Emergence of the New Consumer




A smarter, more empowered
approach to consumption
           I am a smarter sh...
KNOW: The Emergence of the New Consumer




  Brands don’t always tell the truth…

    I am skeptical of what I read in ne...
KNOW: The Emergence of the New Consumer




  …but peers typically do

● More knowledgeable—seeking out information and op...
KNOW: The Emergence of the New Consumer




More attention paid at retail
                                                ...
KNOW: The Emergence of the New Consumer




  Prosumers are driving this new approach
  to consumption
● A majority of glo...
KNOW: The Emergence of the New Consumer




Seeking a deeper relationship with brands…
                                   ...
KNOW: The Emergence of the New Consumer




…and with producers: the growing allure of local
                             ...
KNOW: The Emergence of the New Consumer




Buying local is more about giving than getting

  Locally produced foods tend ...
KNOW: The Emergence of the New Consumer




  Key Takeaway for Brands




                                          64
KNOW: The Emergence of the New Consumer




  1. Consumption is more multidimensional

● Shopping is no longer just about ...
KNOW: The Emergence of the New Consumer




  2. New Consumers are looking for brand
  partners that help them live their ...
KNOW: The Emergence of the New Consumer




…manage their aversion to risk…

● Consumers are worried—about money
  (excess...
KNOW: The Emergence of the New Consumer




…and build connections

● Smart brands will promote interconnectivity—
  helpi...
KNOW: The Emergence of the New Consumer




  3. Sustainability is in everyone’s best interest

● Political and business l...
KNOW: The Emergence of the New Consumer




  4. New Consumers are looking for brands that
  respond to a desire for re-en...
KNOW: The Emergence of the New Consumer




  5. For every “No,” there must be a “Yes”
● To connect with today’s more mind...
Consumed: Rethinking Business in the Era of Mindful Spending




 Consumed: Available in Bookstores July 2010
● Based on E...
Media Inquiries




For inquiries regarding Euro RSCG Worldwide’s New Consumer study,
please contact:


Eric Edge
Global C...
The Knowledge Exchange is a global initiative that pushes information and insights
 across the Euro RSCG network of agenci...
Stay Up to Date on the New Consumer




● For more information on the New Consumer, visit
  www.TheNewConsumer.com.

● Ple...
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7 market study on the emergence of the New Consumer and the trend toward mindful spending. For more info, visit www.TheNewConsumer.com.

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Euro RSCG New Consumer: Emergence of the Mindful Spender

  1. 1. KNOW: The Emergence of the New Consumer 2010
  2. 2. KNOW: The Emergence of the New Consumer About the Study ● In-depth online survey conducted by Market Probe International Oct.–Nov. 2009 Brazil China France n=700 n=700 n=700 ● 5,700 adults in 7 markets ● Extensive secondary research in Japan Netherlands U.K. 2010 into trends driving the category n=700 n=700 n=700 U.S. n=1,500 2
  3. 3. KNOW: The Emergence of the New Consumer Introduction Would you say the current crisis... ● The global economic downturn hasn’t U.K. 11 87 only touched our wallets Spain 12 87 Around 8 in 10 consumers declare we Germany 18 79 have been experiencing not only a financial France 25 74 crisis but also a crisis of values and way 0 20 40 60 80 100 120 of life Concerns only the economic and financial sphere Also calls into question our values and way of life Source: TNS Sofres—New Forms of Capitalism, January 2009 ● The post-recession consumer is challenging society to change Are brands responding to these new concerns? Source: Euro RSCG, 2009 3
  4. 4. KNOW: The Emergence of the New Consumer A Seismic Shift: All Maxed Out? ● Throughout 20th century, developed world saw rapid growth of a culture of hyperconsumerism – Shopping became less about necessities than about entertainment, pleasure, status, indulgence, and excess – Accumulation—and personal debt—rose to levels never before seen ● Even before “Great Recession” that began in 2007, consumers were showing signs of unhappiness with status quo – Movement toward more conscious—and conscientious—consumption (e.g., buying Green, Fair Trade) – Growing allure of simplicity and a return to basics – Pushback against financial promiscuity and mindless excess ● The recent economic downturn exacerbated these shifts, giving people a chance to step off the consumption treadmill and reassess how they are living—and spending 4
  5. 5. KNOW: The Emergence of the New Consumer I. Three Keys to Understanding the Relationship Between Consumers and Society in the Post-crisis World 5
  6. 6. KNOW: The Emergence of the New Consumer Three keys to understanding the relationship between consumers and society in the post-crisis world 1. A HIGH SENSITIVITY TO RISK 6
  7. 7. KNOW: The Emergence of the New Consumer Economies are on the rebound, but anxiety remains high ● The past decade has brought an increasing sense of uncertainty and anxiety caused by a raft of issues, including the global downturn, financial scandals, terrorism, perceptions of government incompetence in the face of national and international crises… In general, I feel more anxious than I did a few years ago 54 50 62 29 57 46 77 Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange 7
  8. 8. KNOW: The Emergence of the New Consumer What the crisis has changed is our confidence in the future, our sense of being prepared to handle whatever may come I worry about my future or my family’s future more than I used to 57 74 65 34 49 40 65 ● Signs of optimism apparent only in the Netherlands and among mainstream consumers in China—the latter explained by the relatively good health of the Chinese economy and the confidence of a country on the ascendancy (pride in 2010 Expo Shanghai and other achievements) 8
  9. 9. KNOW: The Emergence of the New Consumer Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring I have become more worried about losing my job or having someone else in household lose job 43 50 52 32 40 22 28 ● Western countries are more worried than China and Japan—buffeted by concerns over high unemployment, housing foreclosures, fluctuating costs of food, energy, and other basic needs ● Even if fears turn out to be unwarranted, they are deeply seated and affecting current decisions 9
  10. 10. KNOW: The Emergence of the New Consumer Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring I have become more worried about losing my job or having someone else in household lose job 56 52 56 34 50 32 34 ● Countries accustomed to higher standards of living have more to lose ● Fear of future loss adds anxiety to current purchases Hungry Planet by Peter Menzel 10
  11. 11. KNOW: The Emergence of the New Consumer Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring I have become more worried about not having enough money to retire on 51 45 59 27 46 21 27 ● We often say modern society is “short-sighted” ● As anxieties mount, more and more citizens in mature markets are looking far into the future with concern 11
  12. 12. KNOW: The Emergence of the New Consumer Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring $117,951 I have become more worried about getting out of debt The average American household’s debt $772 billion 44 47 33 22 34 15 14 Amount U.S. owed China as of May 2009 $2 trillion Combined amount of personal debt held by Americans (which is about the GDP of England) Source: www.visualeconomics.com/the-american-family-financial-turmoil_2010-04-29/ 12
  13. 13. KNOW: The Emergence of the New Consumer Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring ● Different countries, different realities, different fears I have become more worried about not being able to afford health insurance/medical bills 48 51 35 27 20 22 31 13
  14. 14. KNOW: The Emergence of the New Consumer Consequence: Reluctance to engage in long-term decisions (What if I choose wrong?) Risk avoidance becomes the main driver of decisions Brands that manage this risk will appeal to consumers 14
  15. 15. KNOW: The Emergence of the New Consumer Three keys to understanding the relationship between consumers and society in the post-crisis world 2. CONSUMER DEPRESSION ECHOES SOCIETAL WOES 15
  16. 16. KNOW: The Emergence of the New Consumer “Compared with our grandparents, today’s young adults have grown up with much more affluence, slightly less happiness and much greater risk of depression and assorted social pathology. Our becoming much better off over the last four decades has not been accompanied by one iota of increased subjective well-being.” —Hope College psychologist David G. Myers 16
  17. 17. KNOW: The Emergence of the New Consumer Lands of plenty haven’t delivered the happiness promised I am actively trying to figure out what makes me happy 48 75 53 33 42 64 41 ● Paradox of owning more and having less ● Increased focus on happiness index as measure of national achievement 17
  18. 18. KNOW: The Emergence of the New Consumer Stress of modern living taking toll on mental health I worry about the mental health of my partner/spouse 22 61 46 16 22 44 36 I worry about my own mental health 31 69 46 18 26 41 45 18
  19. 19. KNOW: The Emergence of the New Consumer Widespread dissatisfaction with modern life In many ways, I think society is moving in the wrong direction 66 61 70 53 63 39 49 ● We’re seeing dissatisfaction on both a personal and societal level—especially in western cultures but evident everywhere 19
  20. 20. KNOW: The Emergence of the New Consumer Society is perceived as shallow… I worry society has become too shallow, focusing on things that don’t really matter “The problem with consumerism is that it strives not just to be part of our 79 66 77 62 75 53 61 lives—it should be that— but strives to be everything, ● Sense that we have lost sight of what truly to occupy all our time and matters in our endless quest to consume space and push out other more and struggle less things. In this sense, it is both ● People growing increasingly weary of homogenizing and totalizing.” “dumbing down” of conversations and —Political theorist Benjamin Barber in U.S. News & World Report culture, lack of substantive interactions 20
  21. 21. KNOW: The Emergence of the New Consumer …lazy… ● Consumers have lost confidence As a society, we have gotten intellectually lazy in society, seeing people as somehow lesser beings than in 76 52 61 48 73 50 43 generations past ● Sense that people take path of As a society, we have gotten physically lazy least resistance—have become less willing and able to exert themselves physically or mentally 85 56 66 55 82 59 47 ● Sentiment is especially strong in U.S. and U.K. 21
  22. 22. KNOW: The Emergence of the New Consumer … and unable to work together for change I worry we are losing our ability to engage in civil debate; people aren’t willing to consider others’ points of view Godwin’s Law “As an online discussion 62 64 64 46 61 49 46 grows longer, the probability of a comparison involving Nazis or Hitler ● This intellectual sloth is accompanied approaches 1.” by increased intolerance toward points of view that differ from one’s own 22
  23. 23. KNOW: The Emergence of the New Consumer In light of this individual and collective downturn, prosumers are experimenting with two kinds of reaction: Desiring a reconnection with nature Seeking zero risk 23
  24. 24. KNOW: The Emergence of the New Consumer The aspiration of reconnecting with the natural world ● As our world becomes increasingly I worry that people have become too disconnected from the natural world artificial, we in turn feel less “real” ● Nature symbolizes ties to a more 60 64 50 43 56 70 65 authentic past, as well as shelter, a place to escape the bustling world, In recent years, I have started or thought about starting a home vegetable/fruit garden a place to rejuvenate and relax ● Surge in home vegetable and fruit 43 55 46 16 45 32 29 gardens signifies this quest to reconnect, eco-consciousness, and a desire for self-sufficiency and personal empowerment (Whatever happens, I can feed my family) 24
  25. 25. KNOW: The Emergence of the New Consumer The aspiration of reconnecting with the natural world Search term: “vegetable gardening” 25
  26. 26. KNOW: The Emergence of the New Consumer Echoes from another time… The 19th century witnessed two revolutions that profoundly changed western social structures. The boom in industry brought society into the era of machines, while positivism glorified science and mathematical truth at the expense of spirituality. Many citizens strongly rejected this society of progress. Rejection came in two guises: 1. The highlighting of dreamlike symbolism, of morbid spiritualism (as seen in the dark paintings of Gustave Moreau, for example). This was accompanied by a new prominence of the dandy figure, celebrated by Baudelaire and embodied by Des Esseintes de Huysmans, who scandalized the whole of Europe with his novel A Rebours (1884). By his very essence, the dandy is content with a form of weakness and indecision. In reaction to this, politicians and healthy-living doctors worried that this “weakness” and “sloth” would affect both the mind and body of the Bohemian and diffuse throughout the whole of society, rendering it “effeminate” and risking the corruption of the entire social body. 2. A strong desire to return to the wildness of nature, accompanied by total rejection of the state and society, as in Walden or Life in the Woods by Henry David Thoreau. 26
  27. 27. KNOW: The Emergence of the New Consumer The quest for zero risk ● Growing mindfulness about the I am much more aware of the nutritional/health value of the food I eat than I used to be safety and health effects of the products we consume 74 80 67 56 68 87 57 ● Greater awareness of need to self-police—no longer confident I research the safety of the products I buy more than I used to in oversight of others (e.g., gov’t, corporations) 41 63 52 26 29 83 38 27
  28. 28. KNOW: The Emergence of the New Consumer Three keys to understanding the relationship between consumers and society in the post-crisis world 3. CONSUMERS WANT CHANGE AND KNOW THEY CAN COUNT ONLY ON THEMSELVES 28
  29. 29. KNOW: The Emergence of the New Consumer Recession is an opportunity to step back and rethink ● Downturn brought anxiety and I wish I could start fresh with an entirely new lifestyle hardship—yet also a sense of relief and opportunity 36 59 39 31 38 70 48 ● Chance to pull back from hyperconsumerist lifestyle and I won’t go back to my old shopping patterns even when the economy rebounds reflect on what we truly want ● People are actively seeking 52 51 50 30 44 45 58 improvement—in themselves and their ways of living ● A “second chance” to get it right 29
  30. 30. KNOW: The Emergence of the New Consumer The upside to the downturn ● Sizeable segments believe the The recession has served to remind people of what’s important in life and that’s a good thing “Great Recession” will actually be good for themselves/their 67 63 50 47 59 61 33 families and/or their country ● A sense that people have been Over the long term, this economic downturn will be a good thing for my country given a chance to reevaluate their lives and how they’re living 33 43 21 31 29 44 16 ● A chance to start on a new path, to find a better way forward— Over the long term, this economic downturn will be especially true for China, which a good thing for my family and me shows strong optimism for future, and the U.S., which 26 40 16 22 21 31 11 displays keen awareness of the need for a better way of living 30
  31. 31. KNOW: The Emergence of the New Consumer Change may be: Looking for something “bigger than self” ● People want to be united in common I would like to be part of a truly important cause cause, to invest time in something more substantive and significant than can fit neatly within a shopping bag 57 76 41 29 43 66 34 ● They want to get involved with causes larger than themselves I would like to lead a more spiritual life ● These feelings are especially strong in the U.S., Brazil, and China 51 64 21 19 27 59 29 “It is preoccupation with I would like to feel more connected to a religion or life philosophy possession, more than anything else, that prevents us from living freely and nobly.” 39 54 16 13 20 40 18 —Bertrand Russell 31
  32. 32. KNOW: The Emergence of the New Consumer It’s up to me now to make change happen ● Strong impulse to make I am making an effort to improve the way I live changes in who they are and how they live—especially in 78 85 73 56 65 80 60 U.S. and China ● Indicative of a desire to take I am making an effort to improve the person I am responsibility and assert control over own lives 78 84 69 56 62 83 56 ● Looking for a more substantive and satisfying way of life 32
  33. 33. KNOW: The Emergence of the New Consumer Change may be: Looking for culture I sometimes feel “uncultured”; I wish I knew more about the arts, literature, other countries, etc. 31 55 44 18 30 61 53 ● In China, Japan, and Brazil, a search for knowledge and culture ● Lesser desire in other countries, especially the Netherlands, which firmly rejects notion of being in need of further education 33
  34. 34. KNOW: The Emergence of the New Consumer Change may be: Looking for human bonding ● Humans are highly social animals The main way I stay connected with old friends and colleagues is through e-mail and/or social networking sites needing intricate ties to family and community to “feel right”; modern 57 64 48 35 54 49 33 society’s technological isolation and focus on the individual have created feelings of alienation I worry that digital communication is weakening human bonds ● In our fast-paced, technology- mediated world, people are craving 54 55 56 42 48 55 45 a greater sense of interconnectedness and deeper personal relationships ● Paradox of Internet as source of connection and isolation 34
  35. 35. KNOW: The Emergence of the New Consumer Change may be: Looking for human bonding It is very important that family eat at least one meal a day together 79 86 90 76 78 86 71 ● Against this backdrop, people are making efforts to connect… 35
  36. 36. KNOW: The Emergence of the New Consumer From “active pessimism” to “proactive mindfulness” In spite of their anxiety, people are resolved to change the status quo and take greater control of their present lives and futures A primary way in which they will do this is through their consumption choices—their strongest means of power and influence It is the advent of “proactive mindfulness” 36
  37. 37. KNOW: The Emergence of the New Consumer II. Four Paradigms Underlying the New Approach to Consumption 37
  38. 38. KNOW: The Emergence of the New Consumer A new mode of consumption created by a consumer who is… ● More informed ● More empowered ● More mindful ● More engaged with businesses and brands ● More anxious about an uncertain future—seeking security and control ● The emergence of this new consumer is changing everything about how companies must connect with their customers and the broader public ● The most successful brands will speak to the four new paradigms we have identified—in their product portfolios and brand communications 38
  39. 39. KNOW: The Emergence of the New Consumer The Four Paradigms of the New Consumer Embracing Growing Up Substance Seeking Rightsizing Purposeful Pleasure Images: kavewall.com/stock>liquid-color 39
  40. 40. KNOW: The Emergence of the New Consumer PARADIGM 1: Embracing Substance ● Hyperconsumerism has failed to satisfy, leaving us unhappy and feeling alienated from each other and from the natural world ● Consumers are experiencing feelings of emptiness and disconnectedness ● In response, they are craving real and authentic experiences—and the security that comes from living a more orderly, purposeful existence ● They are seeking MORE: – More meaning – More connections “There must be more to life – More substance than having everything.” – More satisfaction —Maurice Sendak – More purpose 40
  41. 41. KNOW: The Emergence of the New Consumer A pushback against a vapid culture… 41
  42. 42. KNOW: The Emergence of the New Consumer …and pervasive lack of authenticity 42
  43. 43. KNOW: The Emergence of the New Consumer Seeking a return to “Real”… 43
  44. 44. KNOW: The Emergence of the New Consumer …as symbolized by the Slow Food and Slow Travel movements 44
  45. 45. KNOW: The Emergence of the New Consumer PARADIGM 2: Rightsizing ● Signs of backlash against hyperconsumption and its associated stress, anxiety, and constant push for MORE ● Millions are rejecting prior behaviors, seeking to buy less and experience more ● Frugality is suddenly chic ● Rightsizing is NOT about self-deprivation, but about finding a harmonious balance— “There are two ways to get neither too much nor too little, as expressed enough: One is to continue to in the Swedish term lagom accumulate more and more. The other is to desire less.” —G. K. Chesterton 45
  46. 46. KNOW: The Emergence of the New Consumer Paralyzed by Choices: “Consumer Vertigo” ● Explosion of product choices threatens to overwhelm: – Single Ralphs supermarket in California has as many as 30,000 products, including 300 produce varieties – 1,500 different drawer pulls at The Great Indoors – Choose from among 15,000 songs on an iPod or 35,000 movies on Netflix ● Each year, more and more products are considered “necessities” ● Adding to the pressure: Products are increasingly complicated Tropicana Pure Premium Orange Juice now – Research in Netherlands found 1/2 of all comes in 16 varieties, incl. Low Acid, Antioxidant “malfunctioning” products returned to stores Advantage, and Calcium + Vitamin D work fine; consumers just couldn’t figure them out 46
  47. 47. KNOW: The Emergence of the New Consumer A move toward “Intelligent Simplification” ● Significant majority sees appeal in downsizing—in spending less time accumulating “things” and more time enjoying life ● Seeking to get back to basics, to enjoy life on a more elemental level I would rather spend money on an experience (e.g., traveling, going Most of us would be better off if we lived more simply to a concert) than on a luxury item 78 68 73 51 68 72 48 52 52 68 42 44 54 48 I no longer want lots of “bells and whistles” on the products I buy; I am looking forward to a holiday season that is less about I’d rather just have the functions I really need shopping and more about family and simple pleasures 66 67 78 73 65 81 50 73 59 62 45 60 72 55 47
  48. 48. KNOW: The Emergence of the New Consumer Looking to slow down ● From “slow food” and “slow travel” to In recent years, I have adopted or thought about adopting a “slower” lifestyle nontraditional medicines, Eastern spirituality, and the rise in traditional crafts, evidence abounds of a desire 40 50 34 35 37 51 42 to slow down the pace of modern life In recent years, I have started or thought about starting a “quiet” hobby such as gardening, knitting, or pottery 37 49 41 25 38 48 30 In recent years, I have switched or thought about switching to a less stressful job 26 55 31 16 26 30 27 48
  49. 49. KNOW: The Emergence of the New Consumer Wanting “less” ● Whereas material possessions were I think I would be happier if I owned less “stuff” long associated with the “good life,” now they’re seen as an encumbrance by around 1/2 of consumers 31 33 14 13 25 30 24 ● In most of the markets surveyed, this desire for less cuts across leading- I wish my home were less cluttered edge Prosumers and the mainstream 47 42 36 21 47 81 45 “Every increased possession loads us with a In recent years, I have thrown out or thought about throwing out lots of stuff to declutter my life and my home new weariness.” —John Ruskin 57 40 47 44 55 52 45 Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange 49
  50. 50. KNOW: The Emergence of the New Consumer The New Elite? I respect/admire people who live simply (minimal purchases, debt free, etc.) 79 69 73 69 72 64 52 I respect/admire people who live a high-luxury lifestyle 15 31 11 10 17 35 15 50
  51. 51. KNOW: The Emergence of the New Consumer PARADIGM 3: Growing Up ● Recent decades saw adolescence prolonged, adulthood delayed, but today many people are reversing the trend— accepting personal responsibility and seeking to build individual competencies ● Selfishness is giving way to community and collaboration Even though I am an adult, I don’t always feel like a real “grownup” 50 46 38 38 52 50 58 51
  52. 52. KNOW: The Emergence of the New Consumer Growing up means being in greater financial control… Saving money makes me feel good about myself ● Taking advantage of downturn to get financial life on track 87 69 65 69 71 59 53 ● Especially in Brazil and U.S., satisfaction in reducing I am getting a sense of satisfaction from reducing my purchases during purchases the downturn ● Four in 10 global respondents (7 in 10 U.S. Prosumers) 49 52 28 25 39 38 24 expect their reduction in consumption to be permanent I am committed to reducing my use of credit cards over the long term Note: The complete data set, including Prosumer/mainstream breakouts 60 62 38 17 45 42 21 by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange 52
  53. 53. KNOW: The Emergence of the New Consumer …moving beyond immediate gratification… ● In the past year, I have been asking myself the following questions more often: Do I really need this? Can I afford it? 63 44 47 45 59 34 50 59 35 46 41 59 22 40 Could I find the same item for less at another store or on eBay? Can I wait until it’s on sale? 51 34 51 39 62 44 39 56 28 45 38 46 35 35 Is it of solid, good quality? Will it last a long time? Will I really get pleasure from buying this brand/ spending this money? 51 55 49 34 49 47 38 39 37 34 29 36 33 28 53
  54. 54. KNOW: The Emergence of the New Consumer …and taking responsibility for the effects of their personal consumption ● “Going green” is a pleasurable experience—and source of pride I am making an effort to buy fewer disposable goods ● Also a broad conviction that environmental sustainability is a milestone in the future of 48 60 59 46 51 75 48 business—and a new litmus test Making environmentally friendly choices makes me feel good I buy environmentally friendly products 65 80 65 49 54 80 55 45 72 56 31 44 78 49 The most successful and profitable businesses in the future will be I feel good about reducing the amount of waste I create those that practice sustainability 73 79 63 58 74 85 66 70 77 59 50 61 81 52 54
  55. 55. KNOW: The Emergence of the New Consumer PARADIGM 4: Seeking Purposeful Pleasure ● A hunger for instant gratification drove yesterday’s excess consumption; now, burned-out consumers are seeking new, more meaningful sources of satisfaction ● Impulse shopping has given way to a more considered—and conscientious— form of consumption ● Emerging set of pleasures that are not tied to “instant everything” but to the 3 paradigms of Embracing Substance, Rightsizing, and Growing Up ● For creative marketers who understand this trend, the new quest for purposeful pleasure opens up exciting opportunities 55
  56. 56. KNOW: The Emergence of the New Consumer A smarter, more empowered approach to consumption I am a smarter shopper than I was a few years ago 77 76 69 58 73 74 48 I am a more demanding shopper than I was a few years ago 64 80 69 48 64 79 36 Image: Creative Commons, capl.washjeff.edu/7/l/120.jpg 56
  57. 57. KNOW: The Emergence of the New Consumer Brands don’t always tell the truth… I am skeptical of what I read in newspapers and magazines and what I hear on television and radio 62 43 59 53 67 49 24 ● It’s not news that people have become more skeptical and suspicious over the years ● Longtime brands once held a monopoly on messages and information—but all that is changing… 57
  58. 58. KNOW: The Emergence of the New Consumer …but peers typically do ● More knowledgeable—seeking out information and opinions online I do lots of consumer research online 61 70 51 61 64 65 66 I trust customer reviews more than “expert” reviews 57 42 60 48 57 84 49 58
  59. 59. KNOW: The Emergence of the New Consumer More attention paid at retail ● Mindless excess has given way to I am shopping more carefully and mindfully than I used to careful consideration—with multiple points of focus, from 80 70 70 62 72 73 67 eco/social impact and safety to design and provenance I am more interested today in how and where products are made 54 60 61 34 41 59 41 I pay more attention to the color, feel, and overall design of products than I used to 47 36 38 27 39 65 44 59
  60. 60. KNOW: The Emergence of the New Consumer Prosumers are driving this new approach to consumption ● A majority of global sample—and more than 6 in 10 Prosumers—are focusing more on the environmental and/or social impact of the products they buy (especially strong trend in China and France) ● Widespread sense of responsibility for impact of personal consumption choices ● Majority of Prosumers are willing to put their money where their mouths are (paying more for products that satisfy their consciences) I am paying more attention than in the past to the environmental I am willing to pay a slightly higher price for socially or and/or social impact of the products I buy environmentally responsible products 54 61 64 37 51 72 38 38 62 54 30 35 77 28 As a consumer, I have a responsibility to censure unethical I avoid shopping in stores that don’t treat their employees fairly companies by avoiding their products 67 76 74 51 54 83 51 52 69 57 38 41 68 34 Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange 60
  61. 61. KNOW: The Emergence of the New Consumer Seeking a deeper relationship with brands… ● Consumers—and Prosumers Compared with a few years ago, it’s more important for me to feel good about the companies with which I do business especially—feel more connected to brands and are more intent on finding brand partners that meet their standards 57 70 47 36 46 58 24 ● Majority looking for brands that share their personal values, and around 1/2 I prefer to buy from companies that share my personal values seek out companies that have a purpose beyond profit 59 71 54 40 47 69 55 I prefer to buy from companies with a reputation for a purpose beyond profit 56 56 51 27 46 74 20 Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange 61
  62. 62. KNOW: The Emergence of the New Consumer …and with producers: the growing allure of local ● Looking for more of a sense of It makes me feel good to support local producers, artisans, and manufacturers connection to the goods they buy— and the people who produce them 69 68 57 41 65 41 44 It is important to me to buy locally produced goods 51 42 58 25 45 36 55 62
  63. 63. KNOW: The Emergence of the New Consumer Buying local is more about giving than getting Locally produced foods tend to be more healthful (e.g., fresher, I have more confidence in the safety of locally produced goods fewer preservatives) 55 74 60 30 46 58 45 34 40 32 14 28 40 21 I improve the economic health of my community when I buy from Buying locally produced goods is easier on the environment local producers, artisans, and manufacturers 57 60 65 43 66 62 48 66 69 59 43 52 47 53 I would rather give my money to small businesses than to large Locally produced goods tend to be of higher quality corporations 63 26 53 41 62 14 28 38 31 50 18 34 21 17 63
  64. 64. KNOW: The Emergence of the New Consumer Key Takeaway for Brands 64
  65. 65. KNOW: The Emergence of the New Consumer 1. Consumption is more multidimensional ● Shopping is no longer just about the product or service acquired; instead, the purchase is viewed in light of multiple other considerations, including: – Who makes it? – Is the company admirable and trustworthy? – Does the brand share my values and support the things that are meaningful to me? – Is it having a positive impact on the lives of all the people its businesses touch? ● Brands must clearly communicate their values and invite consumers to participate 65
  66. 66. KNOW: The Emergence of the New Consumer 2. New Consumers are looking for brand partners that help them live their values… ● In the emerging culture of mindful consumption, people want to feel good about making smart, conscientious choices; the most successful brands will give consumers the incentives (practical, emotional) they need to make the choices they believe to be “right” for them and for others ● Smart brands will help customers move closer toward the idealized images they have of themselves—helping turn best intentions into reality 66
  67. 67. KNOW: The Emergence of the New Consumer …manage their aversion to risk… ● Consumers are worried—about money (excessive debt, job insecurity, supporting families over long term) and about the impact of their consumption choices ● Seeking brands that offer not just reassurance but practical solutions and support 67
  68. 68. KNOW: The Emergence of the New Consumer …and build connections ● Smart brands will promote interconnectivity— helping customers feel a sense of community and shared purpose ● Helping to build connections between: – Consumer + brand – Consumer + consumer – Consumer + broader community – Consumer + vital causes – Consumer + nature 68
  69. 69. KNOW: The Emergence of the New Consumer 3. Sustainability is in everyone’s best interest ● Political and business leaders may continue to debate “truth” of climate change and dangers of environmental destruction ● Consumers have made up their minds ● Beyond being the “right thing” to do, adopting sustainable practices is regarded as a smart strategic choice for companies and brands 69
  70. 70. KNOW: The Emergence of the New Consumer 4. New Consumers are looking for brands that respond to a desire for re-enchantment ● In anxious, often depressing, times, consumers seek concrete solutions to their aspirations for change ● Brands can help pull consumers out of their doldrums by proposing—and helping to create—a more inspirational and meaningful universe 70
  71. 71. KNOW: The Emergence of the New Consumer 5. For every “No,” there must be a “Yes” ● To connect with today’s more mindful consumers, brands must: – Create products and services that offer longer-lasting and more fundamental satisfactions – Provide consumption choices that minimize negatives (e.g., eco-toxic, antisocial, stress-inducing, unhealthful) and maximize positives (e.g., contributing to society, allowing more time with family, rightsizing) – Offer customer service that has made an evolutionary leap into holistic relationships built on trust and mutual support – Rethink how they communicate with customers hungry for positive and helpful messages, skeptical of inflated claims, and disgusted with deceit – Create more “enchantment”—allowing the consumer Image: Creative Commons, www.shopperculture.com/ to step away from anxieties and fears, and engage shopper_culture/shopping/ in experiences that surprise and delight, indulge the What can brands offer people in terms of senses, and offer a break from the everyday merchandise, services, and communications that will satisfy them and, ultimately, increase their happiness? 71
  72. 72. Consumed: Rethinking Business in the Era of Mindful Spending Consumed: Available in Bookstores July 2010 ● Based on Euro RSCG Worldwide New Consumer study and written by two executives within Havas Andrew Benett, Ann O’Reilly, CEO, Arnold Content Director, Worldwide and Knowledge CSO, Havas Exchange, Euro Worldwide RSCG Worldwide “Benett and O’Reilly offer insight and guidance about how best to communicate with and build relationships with today’s more thoughtful consumer. It is essential reading for anyone seeking to win in the post-recession marketplace.” —Mike O’Driscoll, Managing Director, Jaguar Cars 72
  73. 73. Media Inquiries For inquiries regarding Euro RSCG Worldwide’s New Consumer study, please contact: Eric Edge Global Chief Communications Officer Euro RSCG Worldwide T +1 312.640.4747 (Chicago) T +1 212.886.2012 (New York) E eric.edge@eurorscg.com 73
  74. 74. The Knowledge Exchange is a global initiative that pushes information and insights across the Euro RSCG network of agencies. Among the materials available to agency employees and clients on My.EuroRSCG.com are these global studies: ● The Future of Luxury ● The Future of Food & Beverages ● The Future of Generations ● The Future of the Corporate Brand ● The Future of Shopping ● The Future of Value ● The Future of Travel Questions? Comments? Please contact julia.gates@eurorscg.com or ann.o’reilly@eurorscg.com. 74
  75. 75. Stay Up to Date on the New Consumer ● For more information on the New Consumer, visit www.TheNewConsumer.com. ● Please join us on Facebook (www.facebook.com/EuroRSCGNewConsumer?ref=ts) and Twitter (ERWWNewConsumer) for daily insights and updates.
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