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STARBRANDS // BUILT TO SHINE: Global consumer trends for building brands and brand strategy
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STARBRANDS // BUILT TO SHINE: Global consumer trends for building brands and brand strategy


The Starbrands, called The Brand Marriage Company, presents short description of key global consumer trends that are very inspirational especially in regards to new ways of positioning of brands and …

The Starbrands, called The Brand Marriage Company, presents short description of key global consumer trends that are very inspirational especially in regards to new ways of positioning of brands and developing ideas for new products.

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  • 1. New Developments in Global Consumer Trends
  • 2. INTRODUCTION OBJECTIVE: To help marketers to embrace and understand what will drive the consumers behavior over the next 10 years. CONTENT: The deck presents key trends that will exert a powerful influence on consumers` lives across many different industries, social classes and age groups. This is because they are rooted in consumers` needs and/or socio-demographic circumstances. Quick snapshot of the key emerging trends worldwide is presented in a comprehensive way: • What is it? • What is the evidence? • Why is it so important? • What are the implications for business in general? Source: Datamonitor,
  • 3. INTRODUCTION What Are Trends? • Trends are durable sociological evolutions that concern a large group of individuals and that are related to even more profound historical movements of a given society. • It is a manifestation of something that has unlocked or newly serviced an existing consumer need, desire, want, or value. • Trends are transversal, i.e. they express themselves in several areas of life at once. • They define what is both socially desirable and personally relevant to individuals. • They are influenced by culture and values. • Marketing uses trends to position brands, define their long and mid-term strategy, work on NPD. Understanding trends is also important from a corporate stand point of view.
  • 5. SUMMARY TREND NAME EVIDENCE IMPLICATIONS Health Obsession •76% of Europeans and US consumers is conscious of health and wellness issues on a daily basis. •Over 95% of Europeans consider obesity as a health danger. •Wellness / personal care will move beyond simple beauty concerns and focus also on physical and mental health i.e. stress-busting `me-time` products. •Proliferation of weight-loss, stress-decrease body care. Cult of Body •Globally, only 10% women (15-64) have never been concerned about their body shape or weight. •Consumers will buy into cosmetic brands that make them feel and look good – slim and fit. Convenience •21% of UK employees work more than 45h/week •Consumers have to choose on average 1 item for every 1000 SKUs •Simplicity of merchandising and packaging info •Simplification/clarification of health claims `contains prebiotics – for a healthier gut`. Status •30% of European and US consumers traded up more frequently to higher quality packaged goods in 2005-2006. •Status consumers will spend more on life-changing experiences linking pleasure and health i.e. organic, natural and gourmet foods and products Era of New Celebrity •Connectivity between celebrities and fans has been greatly enhanced by modern technology, fuelling celebrity-related discourse to a degree not seen previously. •Tap into the next generations of celebrities – experts and celebrity products. •`Hiving consumers`-new target for celebrity-based marketing. Ethical Consumerism •50% of Europeans worried about the welfare of farmed animals. •Ethical consumerism will shift from niche to mass. •Growing `less packaging` trend. Go Green •40% of US consumers avoided buying products harmful to the environment •Rise of the Naturally Ageless personal care. Re-discovery of family •49% of EU and US consumers reported spending more time w/families in 2005-06. •Consumers will favor brands that they associate with strong family values. Connectivity •44% of EU consumers report spending more time with friends. •Consumers will learn & experience brands in the virtual world Home Nesting •Development of cohabitation amongst young people. •Time spent on personal appearance may decline w/ teleworking as people will not feel to conform to social ideal. Individualism •50% of EU and US consumers considers brands matching their attitudes as important. •Emergence of adaptive skincare solutions •Emergence of customized fragrance solutions Authenticity •Success of TV talent contests i.e. `Got Talent`, `Idol`. •Emergence of retro trend. Localization •Re-emergence of the old, local or domestic brands •Growing preference for locally sourced products. World of Fantasy •Growing popularity and usage of PC gaming •Boosting overlap of the fantasy and the real world i.e. Armani for Bruce Wayne Collection Femminism •Women working full-time today are earning 31% more than they did in 1979 (US) •Growing sales of cosmetics for `metro men` & pink segment. •Possible cross usage of cosmetics between men-women.
  • 6. TRENDS: HEALTH OBSESSION What Is It? • Health is a key people motivation stemming from a strong orientation towards selfreliance and awareness that good health extends longevity. • The need for everyday performance in professional and personal lives dictates the obligation to be in a good shape all the time. Living old and in good health is a central aspiration of the post-modern society who praises youthfulness and evacuates the idea of handicap, illness and death. • People seek a healthy environment across all aspects of their life. People also want to feel better, physically and mentally. Looking after oneself impacts the quality of life and relationships. Home hygiene becomes increasingly important in shaping the emotional/mental wellbeing of consumers (healthy nesting). • Alleviating stress and relaxation via improvement of work/life balance are considered an important component of wellbeing. • Consumer act more holistically - they are taking more responsibility for self-care and adopting a wellness orientated lifestyle. • Broad health concerns have increased anxiety over product safety in regards to i.e. allergens, an uptake of min. processed products or content of harmful ingredients. At the same time consumers look for more nutritional information.
  • 7. TRENDS: HEALTH OBSESSION What Is The Evidence? • Health became key purchase driver in food choices in many countries. • Consumers are increasingly modifying eating habits: – more interest in natural, fresh and organic products, fruits and vegetables i.e. fruits, fresh salads and water introduced to McDonalds, KFC menu – choosing `low and lite` products – eating lighter main meals – downsizing portions – moderate alcohol consumption (more beer/wine instead of vodka) • 76% of Europeans and US consumers is conscious of health and wellness issues on a daily basis. • Over 95% of Europeans consider obesity as a health danger. • 90% of European and US consumers indicate as important a need to improve physical health. • 98% of Americans feel good when their home is clean.
  • 8. TRENDS: HEALTH OBSESSION What Is The Evidence? • 70% of US women feel tired and sleep less than recommended 8h/night, which has been linked to obesity, heart disease, accidents. • Smoking prohibited in public places or at least restricted (US and WE), which makes it less fashionable, which drives tobacco consumption down in US and many European countries. • Increased popularity of active lifestyle among not only young generation but also elder ones. i.e. Nike Run Warsaw, Ecco Walkathon. • To counter stress, more than a third of European and US consumers make conscious attempts to improve their work-life balance. • Almost 60% of respondents around the world consider limitation of alcohol intake as very important or important.
  • 9. TRENDS: HEALTH OBSESSION Who? • Health is an aspiration common for all generations and targets, but translates more into concrete behaviors beginning at the age of 30, especially amongst women and in the middle/higher social classes: – Younger group associates health more with good, attractive physical appearance while elder one with good physical and mental condition • Children are being trained to health issues partially as a result of growing obesity incident among them. • Senior populations in developed societies are actively involved with health, through their diet, self-medication, anti-ageing products and rejuvenating cures.
  • 10. TRENDS: HEALTH OBSESSION What Is It So Important? • Consumers are adopting a broader wellness perspective towards living, which represents the quest for vitality, balance and physical health and be split into occupational, emotional, physical, nutritional and relationship wellbeing. • Healthy eating and exercise often considered as `our first medicine` countries and spreading into middle classes. • Organic food as well as macro-biotic and functional foods (i.e. Ponds pomegranate juice, Flora Active) are evolving from niche to more mainstream in developed countries (US, WE). • 80% of consumers in the emerging economies hope to improve their work/life balance. • Half of US and European consumers use nutritional info on packaging more frequently to help make food and drink choices in 2005-2006. • Growing range of products that meet consumers sports and active lifestyle needs. in many
  • 11. TRENDS: HEALTH OBSESSION What Are The Implications? • • • • • • • • • • • • • • • • Segmenting consumers by wellness attitudes. Scent, an important factor across numerous product categories as a way of communicating and offering wellness i.e. aromatherapy cleaning products to decrease stress related to cleaning. Wellness / personal care will move beyond simple beauty concerns and focus also on physical and mental health i.e. stress-busting `me-time` products. Wellness to embrace sleep programs due to growing sleep problems. Development of sophisticated packaging giving consumers more confidence in food safety i.e. labels changing color when passing expiry date. To counter stress, more and more European and US consumers will make conscious attempts to improve their work-life balance. Growth of healthy, energizing, relaxing food & beverages incl. energizing drinks as well as natural, organic food containing health promoting ingredients i.e. fiber, Omega-3, whole grains or antioxidant-rich naturally functional fruits/vegetables such as pomegranates, blueberries, nuts, fish. Upsurge in demand for fresh, locally sourced products as being the most important route to healthy eating and perceived also as safe and tasty. Manufacturers of of frozen, jarred and canned food and drinks will probably suffer from this trend. Stress-related consumption will remain a key driver of the premiumization. Diet and lifestyle will be increasingly linked to enabling good rest with implications for how food and drinks are marketed. Positive nutrition will be the most important component of the healthy food. Proliferation of weight-loss, stress-decrease, positive-nutrition positioned products. Promotion of health should tap into positive emotions such as longevity, self-confidence, energy, vitality, enjoyment, looking good. Moderation of alcohol consumption – smaller intake, lighter (%) alcohols in rise with lite formulas (less calories). Growth of Internet importance (blogs, forums) in search of info on health, healthy food and services. Growing sports nutrition consumption led by food & beverages (sports bars).
  • 12. TRENDS: CULT OF BODY What Is It? • Physical appearance is no longer only about looking good as it is associated with health, personal hygiene, happiness and wellbeing. • Consumers are increasingly conscious of the link between outer beauty and inner health. They have a broad view of what affects their looks and what they can do to change it. • Though women rate many inner qualities ahead of physical appearance attributes in their evaluation of what makes a woman beautiful this does not mean that women reject physical components of beauty. In fact proper body shape and weight are extremely important elements of physical beauty, which is dictated by popular culture and fashion. • In terms of physical beauty body shape and odor/sweat problems as well as skin dryness and sensitiveness are key EU and US consumers concerns they are ready to act upon. • Physical appearance plays an important status and recognition defining role – slim body and attractive appearance are perceived as a symbol of success and high status. • Physically attractive people are considered as more intelligent and interesting.
  • 13. TRENDS: CULT OF BODY What Is The Evidence? • Slimness has become almost a diktat. Bodies are getting more and more standardized while faces convey diversity. • Globally, only 10% women (15-64) have never been concerned about their body shape or weight. • High pressure upon looking and feeling good and healthy generates a growing tide of appearance anxiety among both men and women stemming from a tension between self-control and hedonism. • More than 85% of women around the world strongly agree that a woman can be beautiful at any age. • Consumers` growing focus on `positive nutrition` - getting enough of the right nutrients into diet rather than merely focusing on limitation intake or excl. certain ingredients – enhances belief in nutrients` important role in providing external benefits.
  • 14. TRENDS: CULT OF BODY Who? • People in their 40s and 50s too, work hard on their body and diet. But they try to reconcile control and pleasure through well being methods and softer sports. • Women over 50 (and more and more often, over 60) are big clients of plastic surgery. • Elderly people in many countries practice soft physical exercise in group. • Young adults in their 20s and 30s are the most obsessed with their appearance. • Slimness, fighting against stress and preserving their health in the long term translate into daily control of their diets.
  • 15. TRENDS: CULT OF BODY What Is It So Important? • In an ever changing world, flexibility and mobility are the keys to social success. It translates into a light, slim and dynamic body, the new norm and icon of the XXI st century. • As we live longer, our societies are increasingly youth orientated. Bodies have to stay young and fit at all times. • The body now conveys our position in society, obesity being seen as personal and social failure. • The body is a personal medium, which allows to express your individuality. • The body is one of the very last things people have control on.
  • 16. TRENDS: CULT OF BODY What Are The Implications? • In a busy life consumers will look for solutions that allow them to look good with minimal fuss. • Growth opportunities behind consumers` desire to supplement diets with specific nutrition and to retain a youthful, healthy appearance. • The health-beauty crossover will intensify and thus it is likely that personal care regimes will consist of mix of using regular personal care products with specific, branded dietary and lifestyle adjustments incl. branded fruit and water intake, exercising as well as use of oral beauty products. However orally ingested beauty supplements will probably more popular than making significant lifestyle changes. • Real, authentic and natural images of beauty incl. models will be increasingly valued as consumers seek to get rid of feelings of appearance anxiety i.e. Dove advertising campaign. • Consumers will buy into cosmetic brands that make them feel and look good – slim and fit.
  • 17. TRENDS: CONVENIENCE What Is It? • The hectic lifestyle of contemporary consumers render convenience products and services. • The convenience trend reflects the increased time pressures, stresses and work-life balance problems that consumers increasingly experience: – Time scarcity – inability to find time for, dislike of, household chores – Inability to sustain healthy behaviors – Experiencing mealtime stress – no time to dine w/family, to eat regular home-made dishes – No time and skills to cook – No time for time-consuming shopping • A desire to overcome the pressures of busy lifestyle and free time for leisure activities or relaxation are the main drivers for sales of goods that provide convenient solutions: – Simplified meal preparation – Speed shopping – Outsourcing of daily chores – Mealtime fragmentation – Multi-tasking on-the-go solutions • Lifestyle demands have resulted in consumers eating more regularly but in a smaller portions often outside.
  • 18. TRENDS: CONVENIENCE What Is The Evidence? • 21% of UK employees work more than 45h/week and 31% if male only are considered. • The number of SKUs in an average supermarket is between 25 and 45.000 while the average shopping basket contains 45 to 50 items thus consumers have to choose on average 1 item for every 1000 SKUs making shopping longer and making it a `choice paralyze`. • Growing rate of hearth attacks and deaths among YA due to long stress, especially in CEE countries. • Growing popularity of healthy lifestyle food, facilities and events i.e. light/diet food present in almost each product category, growing number of gyms, Run Warsaw or Walkathon. • Skipping core main meals at home in favor of mealing or snacking outside. • Growing popularity of buying take-outs and home-meal replacements and professional services for daily chores i.e. launch of the breakfast offer in McDonalds in Poland. • Growing interest in multi-task products saving time.
  • 19. TRENDS: CONVENIENCE What Is It So Important? • Appearance of `transumers`, consumers who prefer to try/experience product or service for a limited time rather than make a permanent commitment i.e. a dog rental system FlexPetz that allows consumers to buy a dog for a certain period of time. • For the consumer who wants to return to a wholesome and nutritious family meal convenience foods must cater to their basic needs – they must be traditional, homely, and easily prepared. For the consumer who eats and drinks on-the-go, packaging and product formulations must provide even more new and interesting ways to combine health with sensory benefits. • Products and packaging formats become not only more convenient but also better suited for on-the-go lifestyles i.e. chewable Tylenol Go Tablets for fast headache relief `wherever, whenever`, CoolBrew liquid coffee in the metered bottle, Burn Energy Drink in a re-sealable can, STR8UO RTD Single Shots in plastic pouch, She ciggarettes. • Raise of convenience products/services embracing also disabled consumers i.e. easy to open products for consumers with arthritis, on-pack product information in Braille for blind consumers. • Emergence of the `fix and freeze` trend. • Increasing tendency for consumers to consider the `greenness` of the products.
  • 20. TRENDS: CONVENIENCE What Are The Implications? • Merchandising and packaging should promote simplicity and provide relevant information to facilitate shopping i.e. simplification of health claims `contains prebiotics – for a healthier gut`, recipes used as POSM to promote new usage occasions and trigger impulse purchases or visual aids for children. • Goods which simplify consumers lives by offering multiple benefits i.e. Air Wick Fresh Sweep will further grow in popularity especially if they have also innovative multi-task packaging i.e. Kotanyi Muehle – stores and mills ingredients. • Scent is a feature that will be used in more seemingly mundane products helping to turn them in multi-task, added-value concepts i.e. P&G Dawn Simple Pleasures (dish care product that combines the grease-fighting with an air freshener in dual-chambered bottle). • Consumers like easy-quick-cook foods but will welcome more sophisticated concepts i.e. `as from restaurant` dinner to celebrate the evening meal w/family or friends. • Growth of the Health-On-The-Go segment that combines a consumer desire for convenience with increasing health awareness i.e. Planet Smoothie w/SoBe Adrenaline Rush. • Healthy household products i.e. cleaning products made of natural ingredients (cleaning yoghurts/milks) with insect/germ control or disinfectant properties. • Consumers will favor not only `healthy products` with environmental friendly, natural, biodegradable packaging.
  • 21. TRENDS: STATUS What Is It? • There is a growing consumer perception that mass-market food, drinks and personal care products are bland and lacking hedonic benefits. • An increasingly affluent consumer base is becoming more educated about the quality and variety of consumer goods available, making them more critical of the quality of goods. • Consumers are willing to pay a premium price for highly emotional products and services that possess more hedonic benefits - higher level of quality, taste, uniqueness and brand experience. • Desires for luxury products have been democratized over the past decade. Luxury is gradually becoming a purchase for ordinary people. • Premium to current consumers more often mean an everyday indulgence rather than an occasional treat. • Quality of life gradually becomes a new luxury standard. More immaterial values - time, space, experiences, education - are the new status symbols.
  • 22. TRENDS: STATUS What Is The Evidence? • Affected by recession and financial crisis, people now search a rationale to buy, mix low with high, reject the ordinary and expensive. • Appearance of the whole new generation of successful brands that mix prestige and mass approach (masstige): – Massimo Dutti (fashion), Habitat (home decoration) • More than 30% of European and US consumers traded up more frequently to higher quality packaged goods in 2005-2006. • Older consumers are increasingly `living the moment` and allocate more budget to enjoyment items: – IRI study reported that 35% of US consumers 50-58 spent their food and drink budget on enjoyment items vs 27,5% aged 21-27 • Growth of `professional/celebrity quality` products and services – Deichmann shoes endorsed by the Sugar Babes group • Consumers are mastering many new skills to make the most of the goods & services bringing them status by being good at something i.e. Mini E-Driver Training
  • 23. TRENDS: STATUS What Is It So Important? • All people think they have the right to the best and the most beautiful. Consumers increasingly feel they should have access to the same quality as the social elite or celebrities. • They don’t want to feel inferior or degraded by their consumption. The era of “I’m worth it”. • Premiumness and luxury are now about personal enjoyment and tasting. Sensual moments of pleasure are worth paying more: wellbeing, health, youth, indulgement. • Showing off skill important to get status. Consumers can acquire as many skills as they want, but equally important is the showing off aspect of what they have learned and created in the digital world. • Premium/luxury products brings authenticity into the `plastic world` of today.
  • 24. TRENDS: STATUS What Are The Implications? • Old, physical status symbols won't disappear but will compete with new status spheres for example acquired skills, eco-credentials, non-profit activities. • The change will be accompanied by a shift from brands telling a story to brands helping consumers to tell status-yielding stories to others. • Growth of services and products facilitating `skills status` i.e. P&G virtual campus, Sony Digital University. • Growth of importance of the electronic world to get status i.e. purchases of luxury products in Second Life, YouTube Videos to show off. • Mature consumers will be the key target (more active, higher spending power). • Status consumers will spend more on life-changing experiences linking pleasure and health i.e. organic, natural and gourmet foods, new rental services i.e. Bag Borrow or Steal. • Luxury is an ever-reliable indicator of what next generations will consider basic necessities, thus, often revealing the Next Big Thing.
  • 25. TRENDS: ERA OF NEW CELEBRITY What Is It? • Within modern consumer societies, the celebration of fame has witnessed a significant recent escalation. • People not only want to see celebrities without their clothes but to learn the naked truth about them – Hugh Hefner. • Consumers are generally viewing their homes as a comfortable retreat that can help to counterbalance the day-to-day pressures of the outside world. The `cocooning` trend is the manifestation of this as consumers actively choose to stay in and appreciate their home environment. This doesn't indicate a withdrawal from interest in, or interaction with the outside world. In fact technology is an important facilitator for cocooning consumers – provides online opportunities to shop, connect with people, and be entertained form the comfort of their home. This includes indulging interest in celebrity. • Another slightly mindset is presented by `Hiving Consumers`. The core dimension of `hiving` is interaction with the outside world but w/o the need to leave the home (home working, online shopping and home delivery). • The celebrity worship is a form of social bonding, stress reduction, escapism from everyday life and entertainment.
  • 26. TRENDS: ERA OF NEW CELEBRITY What Is The Evidence? • Connectivity between celebrities and fans has been greatly enhanced by modern technology, fuelling celebrity-related discourse to a degree not seen previously. • Reality TV has made it easier for consumers to identify with celebrities on a personal level thanks to such `docusoap` programs like The Osbournes, The Snoop Dogg`s Fatherhood. • Reality TV has democratized the celebrity cult – reality TV concepts such as Big Brother or Idol have offered the opportunity for ordinary people to compete to achieve celebrity status. • Celebrity gossip magazines have been a visible expression of the fascination with celebrity. • 64% of European and American consumers agree or strongly agree that they have less leisure time than previously. Overall, they stated they find it difficult to manage daily obligations and find time to relax.
  • 27. TRENDS: ERA OF NEW CELEBRITY What Is It So Important? • • • • • • Celebrity watching has become a surrogate for family relationships. We see celebrities more than we see our own parents and kids. In an era where the fabric of the nuclear family is fragmenting due to factors such as divorce rates, consumers feel much closer to celebrities based on the ability to learn about and see the intimate details of their private lives by turning on the TV or going online. This has been likened to making consumers feel like they are part of celebrities families. Celebrity Worship Syndrome has become an accepted disease condition. Celebrity worshippers tend to score highly on measures of depression, low self-esteem, they often lack empathy, they find it difficult to maintain social relationships. Raise of the new category of Internet celebrity i.e. the Arctic Monkeys, the UK-based band or humorist Maddox (George Ouzounian) creator of black comedy website The Best Page in the Universe. Products and experts are emerging as the next generations of celebrities i.e. Apple, Motorola RAZR, TiVO, Microsoft Xbox. Online social networking allows ordinary users to model celebrity behaviors. The recent studies showed there is a direct correlation between reality TV consumption and social networking usage among consumers. Heavy reality TV viewers spend more time on sites like Facebook and tend to have larger social networks, share more photos and are more likely to establish online friendships with people they have no offline relationship with. Celebrity as a marketing tool remains powerful but faces challenges – Celebrity may get consumers to become aware and try products but not necessarily to buy it. – To be successful, the personality of the celebrity must be in sync with the personality of the brand i.e. Air Jordan, Newman's Own – Consumers expect authenticity and quality – celebrity endorsement is not an acceptable substitute.
  • 28. TRENDS: ERA OF NEW CELEBRITY What Are The Implications? • Marketers need to meet consumers` needs for accessibility and information on celebrity endorsement. • Hiving consumers are a strong candidate group for targeted celebrity-based marketing. They are closely associated with connectivity, sharing, and have a high online presence. They have a higher propensity for using celebrity as a medium to connect with others and thus could serve as key disseminators of brand messages amongst peer groups. • `Celebrity Brands` help to avoid the risks associated with human representatives. • Exploit the continuing growth in `branded brands`, where one of the brands is human being or a personal brand, as it brings together the core value, strengths and competencies of both brands i.e. Gatorade Tiger (flavors where chosen by Tiger Woods), H&M by Madonna. • Bring celebrities into the boardroom to add credibility to you new ventures, deals, advertisement in the eyes of your employees and business partners - `business celebrity endorsement`. • Tap into the next generations of celebrities – experts and celebrity products.
  • 29. TRENDS: ETHICAL CONSUMERISM What Is It? • After many years of social and environmental degradation: – The shrinking ozone layer and climate changes, – Financial scandals: Enron – Manipulation or ignorance of public opinion i.e. on the war in Iraq – Social scandals i.e. Bill Clinton vs Monika Lewinsky undermined the responsibility of institutions as well as the honesty of their top executives and brands. • Thus, honesty, humanity, sincerity are valued again and ethical life is meant as an aspiration to higher ethical standards. • Additionally consumers are also adopting a strong environmental stance as a part of the ethical life. • It is very likely that we see a massive transfer of responsibilities and roles, with commercial brands being increasingly in charge of diffusing and implementing ethical values.
  • 30. TRENDS: ETHICAL CONSUMERISM What Is The Evidence? • 85% of EU citizens want policy-makers to consider the environment to be just as important as economic or social policies. • Over 50% of Europeans is worried about the welfare of farmed animals. • Nestle, Kraft, Sara Lee, P&G have all expanded their coffee offerings to include Fairtrade products in response to increased consumer demand. • 40% of US consumers indicated in 2006 that they avoided buying products whose packaging, when disposed of, causes potential harm to wildlife. • 72% EU consumers would sort waste so that it can be recycled, 39% reduce home energy consumption, 32% reduce waste by buying bigger sizes as their contribution to protecting the environment. • Consumers around the world are boycotting products from Asia that were produced by children or in a bad working conditions.
  • 31. TRENDS: ETHICAL CONSUMERISM What Is It So Important? • Trust is a fundamental need of mankind, related to stability and safety. • Consumers increasingly attach importance to ethical consumerism i.e. 60% of US consumers believe it is important to buy ethical or socially responsible products. • Consumers are associating environmentalism and ethics with quality of life. • With more and more celebrities embracing environmentalism and other ethical causes – ethical purchases have become top-of-mind considerations and highly fashionable. • Consumer more and more often boycott brands/products that they perceive as lacking environmental or ethical credentials.
  • 32. TRENDS: ETHICAL-ENVIRONMENTAL CONSUMERISM What Are The Implications? • Honesty and integrity will be key desirables for consumers. • Ethical and environmental credentials of the company/brand will: – become differentiating factor when many brands lack clear performance based difference – deliver brand engagement – induce product trial • Ethical consumerism will shift from niche to mass. • Recyclable, reusable or made of biodegradable materials packaging will be more sought after. • Brands using environmental associations will be more persuasive when verified by certification from an independent body. • Green cleaning will take-off.
  • 33. TRENDS: GO GREEN What Is It? FROM TO
  • 34. TRENDS: GO GREEN What Is It? • Nature is a hot topic everywhere in reaction to an excessive industrialization and global warming. • Growing social concern about the climate change due to mounting pollution fosters individuals, businesses and governments to confront and act upon that fact. • This massive interest in Nature, improving environment and natural things also reflects the universal focus on health. The food of industrial origin is not trusted anymore. • It is manifested by abundance of goods and services offered under the "green consumerism" umbrella all work towards the same goal – protecting the environment and minimizing the harm we inflict on plant earth as well improving our work/life balance thanks to green lifestyle.
  • 35. TRENDS: GO GREEN What Is The Evidence? • Eco-related activities seem now vital to people in all countries – Green boycott of the road construction in the Rospuga river area in Poland – People around the world buy clothes made out of organic fabrics, wash dishes with environmentally friendly detergents, eat pesticide-free organic vegetables and drive a hybrid car. • Nature means a better quality of life and ethical behavior – Wealthy people by the most ‘natural’ and least habited settings. – Protests against companies which exploit workers and harm the environment • Natural products are synonymous of highest quality – Organic food and cosmetics rapidly growing in popularity. – Juice and salad bars getting popular. • Nature is also about authenticity and origin of products i.e. The Oscypek cheese. • Eco-friendly means products produced from re-usable materials – Nike Trash Talk shoes made from garbage – +1 Water bottle is made from certified biodegradable PLA, and is not only compostable but is also recyclable along with other plastics • In 21 European countries, beachgoers follow the ratings of the European Blue Flag campaign to find some 2,750 beaches and marinas with high environmental standards and sanitary and safe facilities. • Growing usage and popularity of cycling in the cities. • Growing usage of natural, recyclable, biodegradable products – Beauty Engineered Forever or Ecover cleaning products – Daub & Bauble personal care line
  • 36. TRENDS: GO GREEN What Is It So Important? • With global warming on the rise, this trend is hotter than ever as people are willing to pay to help clear their eco conscience! • Ever since Al Gore sounded the alarm bell, people are re-focusing on the future of the planet. • Going green is a part of the social responsibility worldwide. Ecology taps into an aspiration to balance and well being in a stressful urban environment. • Eco-friendliness part of brands` relevance. • In the era of sameness ecology gives marketers another chance to differentiate their brands. • Consumers show higher willingness to pay more for green products and services, which are perceived as of higher quality, healthier/less harmful.
  • 37. TRENDS: GO GREEN What Are The Implications? • • • • • • • • • • • Global warming may bring hunger, floods and water shortages, which will significantly increase insurance fees. Green policy will become a part of corporate ethics and will be shaped by consumers i.e. Dell's Ideastorm platform. Eco trend will enter new categories i.e. emergence of premium organic personal care ranges (Nude brand - said to be AA, kind to user and planet & Stella McCartney's Care brands in UK). Appearance of the clothes made from organic cotton. Greener choices will be more widely facilitated by eco-labels i.e. Timberland shoes. Implementation of 3R (reduce, recycle and reuse) practices at the household level to reduce a carbon footprint. Less-packaging and mass, public transport is back. Shift to more eco-friendly products i.e. – Roll-ons deodorants instead of aerosols, metal as a raw material instead of plastic Appearance of self-regulations to define natural/green products i.e. – Burt Bees `natural guidelines` - products must be made with min. 95% natural ingredients, no sulphates or parabens. Appearance of industry standards on natural products and control over advertising practices or product naming i.e. `all natural` Rise of the Naturally Ageless personal care lines containing antioxidants i.e. pomegranate, borage, evening primose oils.
  • 38. TRENDS: RE-DISCOVERY OF FAMILY What Is It? • In a view of growing individualism, changing role of women and culture of success and performance the current model of family has changed: – DINKis (young couples w/o kids) – Family with kids • Confronted with reduced chances in their own lives, people tend to place their unmet hopes in their children who are expected to be the heroes of a better world. • Even though the structure of family has shifted, the need for all it provides is constant. In result the nuclear family is rebounding. The desire for family satisfaction is on the rise despite the fact that the family unit is in decline.
  • 39. TRENDS: RE-DISCOVERY OF FAMILY What Is The Evidence? • Changing family/household structure: – The average household size declined – Decline in multigenerational households – Growth in empty nester households – Boomeranging / homebound adults rooted into parental home • Shifting priorities – Delaying of marriage and children – Embarking on more complex career paths – Extended time spent in education • New model of family – DINKis (young couples w/o kids) • Globally, 73% of families w/children deem it important to eat dinner together each day. • 49% of EU and US consumers reported spending more time w/families in 2005-06. • Families place growing emphasis on dining out together as a result of spending less time together.
  • 40. TRENDS: RE-DISCOVERY OF FAMILY What Is It So Important? • Spending time w/family & friends is now associated with general wellbeing. • Loving family and friends is considered the most important dimensions of happiness. • Family turns to be a real Value today with new roles of father & mother who serve as a protecting barrier and asylum of peace against urban jungle, consumerism, uncertainty and artificial life. • Family provides not only protection but also acceptance of people as they are and happiness from being together. In this context family stands for authenticity and bonding - a number of expectations that hard individualism has either generated or reinforced. • Most people want and set up family and have kids. They do it because they want to have somebody to live for and want to leave something after they are gone. This way they want to give meaning to theirs life.
  • 41. TRENDS: RE-DISCOVERY OF FAMILY What Are The Implications? • As parents will increasingly feel guilty for not spending enough personal time with their children they will value brands that facilitate connections. • Consumers will favor brands that they associate with strong family values. • Favorability of products for the whole family – Bigger, more economical sizes – Universal formulas and product formats • Foodservice environments will continue to become more family-friendly with more sophisticated family menus and broader options.
  • 42. TRENDS: CONNECTIVITY What Is It? • Consumers desire an altruistic lifestyle that is rich in relationship and belonging. • They desire a new type of social bond that is more authentic, more intimate, more informal, based on common interest or generational factors. • Due to hectic life and individualism as a central value the traditional bonds like family are getting looser - loneliness is often the price to pay. • More and more consumers have taken a self-reflective step back from the frenetic pace of modern life. • We miss more and more the human touch while people still aspire to belong to real groups that represent common feelings, causes, ideals, belief system. Fortunately the technology is a great enabler of the connectivity.
  • 43. TRENDS: CONNECTIVITY What Is The Evidence? • Rise of informal and spontaneous occasions of getting together – Neighbor Day in France, barbecues in Poland. – Growing popularity of cafes and tapas everywhere. • Internet became a new medium for connecting alike-minded people. – (“people who bought this item bought also…”), dating sites. – More than 1 billion consumers are now online • Penetration of mobile phones reached 70% in Europe. They became a part of people's personal lives (used for calling, information search, entertainment). • Popularity of TV Sitcoms conveying connectivity. Friends are like family for singles and young generations: – “Friends”, “Sex & the City”, “Ally Mc Beal” • 44% of EU consumers report spending more time with friends. • Globally, 70% of respondents say technology allows them to stay in touch w/family – Growth of social networking i.e. Plaxo, `nasza-klasa`, Facebook – Growing no of blogs as a digital tool to connect and express ones thoughts, opinions
  • 44. TRENDS: CONNECTIVITY What Is It So Important? • Loving family and friends is considered the most important dimensions of happiness. • Having good friends is seen as a sign of personal achievement. • Fulfillment of the need for emotional comfort and security: the feeling of not being alone, sharing the same concerns, the same emotions, the same hobbies. • Friends and virtual societies are treated as a surrogate of family for singles and young generations. • Aging consumers have a strong desire to stay connected. • Consumers are using technology to simplify their lives and manage their busy households to get more balanced, satisfying lifestyles. • Socializing w/friends is an important influencer in the growing propensity to eat out. • The Internet is growing as a preferred tool for social networking and entertainment.
  • 45. TRENDS: CONNECTIVITY What Are The Implications? • Brands will more strongly orientate their values around the idea of connection and sociability. • Consumers will increasingly learn and experience brands in the virtual world rather in the real one, especially young consumers aged 18-34. • Shift from `push` to `pull` media will gain momentum. • Consumers will become even more empowered, especially in price and opinion transparency. • Elder consumers will use technology to connect with others from their homes. • Internet will increasingly become a point of purchase – Digital word of mouth, viral marketing & personal recos will become a part of communication strategies – Growth of digital communities, product popularity polls and experts impacting product choice i.e. Mothers of Organic, WHERE2GO • TV will become more interactive to compete with Internet.
  • 46. TRENDS: HOME NESTING What Is It? • With the new dynamics which is more in favor of individual / personal life vs collective pursuits, people praise more and more their homes and their intimacy as an escape from the hectic life. • Home is an important centre of expenses and emotional investment, and also a multifunction space for communication, entertainment, work and self-expression. • Home, family and friends are considered as a fortress against an insecure outside world. • Home is getting more personal, almost an extension of the body and self. • The homey feel is appreciated outside home: work, hotels, bars, restaurants and even TV shows! • Homes increasingly represent engagement, interaction and connection with the outside world.
  • 47. TRENDS: HOME NESTING What Is The Evidence? • Although family size is shrinking in all countries, the size of new houses is increasing. • Home expenses have been growing steadily. • High popularity of Ikea multiplying openings around the world. • Kitchen does not simply function as a work area for meal preparation but has become also an entertaining space and so the home. • Development of cohabitation amongst young people. • Renovation and home improvement is booming, albeit for different reasons (improving quality of life vs basic functions). • Expanded bathroom sizes and a transformation into `spa bathrooms`. – 40% of Europeans enjoy spending time in the bathroom to relax and destress • Home-working has been steadily growing – In 2005 about 80% of companies worldwide had employees who worked at home
  • 48. TRENDS: HOME NESTING What Is It So Important? • Home is a re-sourcing place and a symbol of anchorage that helps to compensate for insecurity, stress and high level of mobility (geographical, professional, emotional). • People also want to express their identities, personal creativity and status through their houses. • People want intimacy and a homey feel in public places. • People's self identity is partly shaped by their homes.
  • 49. TRENDS: HOME NESTING What Are The Implications? • Stress-driven personal care occasions will gain momentum. • Consumers will demand more sophisticated products that act as `home comforts`. • Consumers will be increasingly seeking to replicate OOH quality (e.g. restaurant, cinema) at-home. • The growing propensity to homework will help consumers meet their desire to slow down and get a better quality of life. • OOH food consumption may slow down. • Time spent on personal appearance may also decline w/ teleworking as people will not feel to conform to social ideal.
  • 50. TRENDS: INDIVIDUALISM What Is It? • It is a need for manifesting people difference, a need for being noticed, remembered as having personal needs than just being part of the mass market. • Individualism also reflects the world of opportunity and liberating freedom where people can live their lives as they please. People do not want to live somebody`s else life. • People show individuality to different extent and because of different motives: – recognition – protecting or enhancing self-esteem – to gain status or social prestige • Current call for individuality comes out as a result of globalization process as well as collapse of political systems that highly valued conformism and uniformity at the cost of the individualism i.e. communism in EE countries. • Individuality is driven by self-expressive consumers seeking to make their own mark on the world.
  • 51. TRENDS: INDIVIDUALISM What Is The Evidence? • People reject years of hard, corporate individualism manifested by `rat race`, which has shown its limits (solitude, ignorance, violence, constant stress, suicides). – Growing rates of death caused by diseases of longevity i.e. heart attack, high blood pressure across countries – Growing rate of suicides and mental disease • People increasingly seek more balance between their business and personal life. They do not want the corporates or institutions to rule their lives any longer. – Death of era of corporate/industrial individualism, and rise of new ways of living and working together while respecting individuality (i.e. networking, freelancing, re-locating from big cities to local communities…). • 50% of EU and US consumers considers brands matching their attitudes as important. • 68% of respondents of the global study by New Paradigm showed they want companies to give them a means to help with product/service development/improvement. • Growth of customized diet products and services i.e. EasyDiet in Poland.
  • 52. TRENDS: INDIVIDUALISM What Is It So Important? • In front of universality, uniformity and sameness, people react and want to take back control on their lives, make their own choices. • Consumers prefer products and brands with a symbolic meaning that is consistent with their self-concept. • In many countries the state doesn't provide sufficient care (health & social) of elder groups thus relying on oneself protects individual survival. • Making your own way is often a great source of fun, satisfaction and stimulation of self-esteem. • Individuals have become the driving force and icon of change as well as a source of inspiration for others i.e. Richard Branson. • Consumers in sophisticated, mature markets, in which consumers have `outconsumed` themselves, have started to value and promote creativity and products that fit their unique individual style.
  • 53. TRENDS: INDIVIDUALISM What Are The Implications? • More space for local brands or adaptations of global brands. – Makes place for tailored-made innovation to allow people express themselves • Growing importance of `attitude branding`, especially in attracting younger consumers. • Growth of participative marketing and personalized products and designers` brands – Levi Strauss started the web site where you can design and order your own trousers • Growing importance of interactive, customer-created advertising as a tool to break through the clutter, build brand uniqueness and engage target group. • Emergence of adaptive skincare solutions i.e. Clarins HydraQuench multiclimate skin care line formulated to be adapted for a skin type and environmental/climate changes. • Developments in genetics and dermagenomics likely to drive customized fragrance solutions in the future i.e. `My DNA Fragrance` brand.
  • 54. TRENDS: AUTHENTICITY What Is It? • People increasingly see the world in terms of real and fake, and want to buy something real from someone genuine, not a fake from some phony. – the virtualization of life (friends aren't friends unless you "confirm" them on Facebook;) has led to a deep consumer yearning for the authentic. • Consumers want to connect with the products and brands that are real, unpretentious and simple. However, products or services only resonate with consumers if they experience them as truly authentic. • They invest in things that speak to them emotionally, that have a story behind them. Goods and services are no longer enough; what consumers want today are experiences—memorable events that engage them in an inherently personal way. • The search for what is authentic stems from a basic human desire for community. Anything that makes somebody feel more connected to the real thing resonates strongly with people.
  • 55. TRENDS: AUTHENTICITY What Is The Evidence? • „Authentic" business these days i.e. Stoli vodka (whose new ad campaign urges you to "Choose Authenticity"), Kool cigarettes ("Be Authentic"). • Success of reality shows and various sorts of talent contests i.e. `Got Talent`, `Idol`. • Success of Starbucks as a coffee chain selling not just coffee but an authentic Italian coffeehouse experience. • Apple products found as genuine because of their unique design and "Think Different„ posture. • 73% of Italians and 65% in the British consumers have reduced their consumption of processed food.
  • 56. TRENDS: AUTHENTICITY What Is It So Important? • Authenticity is not about conceptual simplicity, it’s about people cocreating things that matter to them. • In search of the real thing consumers are more open-minded to novelties: trying new products/services/flavors, etc. • Because the industrial world produces the impression that everything is perishable and disposable, “all plastic”.
  • 57. TRENDS: AUTHENTICITY What Are The Implications? • Respect for tradition, traditional values, art, recipes, hand made craftsmanship and home made food and drinks. • Growing importance of local origin as a guarantee of authentic-real taste and higher quality. • Growth of the ethnic food and drinks and products meeting ethnic-specific needs. – In Europe Thai food plus niches such as Vietnamese and Japanese cuisines will experience the fastest growth • Appearance of new ingredient stories supporting healthy lifestyle – Guava, pomegranate, guarana • Expanding connoisseurship and greater willingness of consumers to pay premium price. • Emerging retro trend.
  • 58. TRENDS: LOCALIZATION What Is It? • In a world that is seemingly ruled by globalization, mass production and `cheapest of the cheapest` a growing number of consumers are seeking out the local and thereby the authentic, the eco-friendly. • It is the comeback of all things local, all things with a sense of place, and how they are surfacing in a world dominated by globalization. • Everywhere, people start questioning the global model and wish to preserve local identities. • Preserving/cherishing local differences / identity, values in a global village occupied by sameness and made in China products.
  • 59. TRENDS: LOCALIZATION What Is The Evidence? • Come back of nationalism – Growing nationalism: i.e. Joerg Heider party, Nasza Rosija movement in Russia • Revival of local culture – Neo-Germanism in fashion and design – References to the Spanish identity in arts i.e. revival of the “Almodovar movies • Re-emergence of the old, local or domestic brands – Revival of Junak motorbikes, Polo Cockta and Bambino brands – the emergence of “retrospective” clubs and restaurants with communist design in Poland i.e. `Ober a pod Czerwonym Wieprzem` in Warsaw.
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