Trendwatching 2011 02 citysumers

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new trends for Citysumers

new trends for Citysumers

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  • 1. trendwatching.com, independent and opinionated, is one of the worldʼs leading consumertrends firm, relying on a global network of hundreds of spotters. Our trends, examples andinsights are delivered to 160,000 business professionals in more than 180 countries.More information at www.trendwatching.com February 2011 | As rapid urbanization is one of the biggest macro trends of our time, you cant go wrong innovating for existing and newly minted CITYSUMERS around the world. Enjoy! We flagged URBANOMICS as one of our 11 Crucial Consumer Trends for 2011, but given urbanization is one of the absolute mega macro trends for the coming decade, heres a dedicated Trend Briefing focus- ing on just one of the implications of rampant urbanization: the rise of the CITYSUMER. A definition: CITYSUMERS | The hundreds of millions (and growing!) of experienced and sophisticated urbanites*, from San Francisco to Shanghai to São Paulo, who are ever more demanding, more open-minded, but also more proud, more connected, more spontaneous and more try-out-prone, eagerly snapping up a whole host of new urban goods, services, experiences, campaigns and conversations. * To be absolutely clear, in this briefing we focus on urban consumers who have some level of disposable income. Well save a full briefing to examine BOTTOM OF THE URBAN PYRAMID consumption in emerging markets, which brings its own challenges (and often-overlooked opportunities) for businesses. Equally were certainly not just referring here to the somewhat mythical (and certainly over-hyped) tran- snational elite – just how many “global nomads” are there? ;-) Here are just three drivers behind the CITYSUMERS trend: 1. The huge increase in the number of urban dwellers all around the world (URBAN BOOM). 2. The ever-increasing wealth and power of cities and those who live in them (URBAN MIGHT). 3. The spread of urban culture and values (URBANE). Serving these CITYSUMERS obviously requires brands to tailor products and campaigns to savvy urban audiences, for anything from practical reasons (offering appropriate shapes, sizes and features of urban goods and services) to showing the brand gets it (addressing busy and diverse lifestyles) to contributing to the quest for social and environmental sustainability.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 2. • If it wasnt for China (43%), Africa (33%) and India Just 100 cities account for 30% of the worlds economy, and (29%), the world would already be significantly more almost all its innovation.  Many of these engines of globalization, urbanized than the 50.5% it is today. (Source: CIA The their enduring vibrancy coming from money, knowledge, and sta- World Factbook, 2010.) And China, Africa and India are bility, are world capitals that have evolved and adapted through all set for immense urbanization in the next few decades decades if not centuries of dominance  (Source: Foreign Policy, to come. August 2010).  • Close to 180,000 people move into cities daily, adding Rich in networks and opportunities, these vast hyper-productive, roughly 60 million new urban dwellers each year. hyper-consumptive centers act as magnets, sucking in talent and (Source: Intuit, October 2010.) spewing out innovation: Hong Kong receives more tourists annu- • By 2050, the global urban population is expected to be ally than all of India. Tokyo and New York have an estimated GDP 6.3 billion, or 70% of the population at that time. similar to those of Canada or Spain, while Londons GDP is (Source: UN, 2009.) higher than that of Sweden or Switzerland. (Source: UN Habitat, 2010). Paris, Lisbon, Brussels, Budapest and Seoul all account • By 2030, China will have an urban population of 1 billion, for more than 25% of their respective national economies. and India 590 million. Currently, Europes urban popula- (Source: UN Habitat, 2010). tion is 533 million. (Source: McKinsey forecast & UN data, 2009-10.) In the coming decades, they will be joined by many new and/or bigger cities, and these cities, too will be host to an increasing • By 2030, China will have 221 cities with more than 1 concentration of global and national wealth, talent and creativity: million people, and India will have 68. In 2010, Europe has 35. During this period, 400 million Chinese and 215 • Indian cities are forecast to generate 70% of new jobs million Indian will move to urban areas, more than the created to 2030, produce more than 70% of Indian GDP, population of the US and Brazil combined. (Source: For- and drive a near fourfold increase in per capita incomes eign Policy, August 2010.) across the nation. By 2030, India will have 91 million urban, middle class households, up from 22 million in • One more nugget: In January 2011, Chinese city plan- 2010. (Source: McKinsey Global Institute, April 2010.) ners proposed merging the nine cities around the Pearl River Delta into a single metropolitan area, containing • Chinas Academy of Sciences estimated that for every some 42 million people: more than Argentina, and cover- 1% increase in urbanization, China can expect a 1.6% ing an area 26 times bigger than Greater London. increase in the contribution made by domestic demand (Source: Reuters, January 2011.) to Chinas GDP. (Source: Deloitte, June 2010.)The big difference between tomorrows urban world and todays? • Shanghais economy represents over 13% of ChinasThere will be more cities, some of which will be both newer total GDP, despite having less than 2% of the popula-and bigger than ever. So while traditional global powerhouses tion. (Source: UN Habitat, 2010.)such as New York, London and Paris are already sharing the • The number of African households with discretionarystage with Beijing, Mumbai and Istanbul, increasingly cities such income is projected to rise by 50 percent over the nextas Belem, Chongqing and Guadalajara are ready to make their 10 years, reaching 128 million. By 2030, the continentsmark, too. More on this in URBAN MIGHT: top 18 cities could have a combined spending power of USD 1.3 trillion. (Source: McKinsey, June 2010.)You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 3. • Delhi, Shanghai, São Paulo and Moscow are each ex- pected to reach a GDP in excess of USD 500 billion by 2025—more than the GDP of entire nations such as In- donesia or Belgium today. (Source: McKinsey, December 2010.)The result? A global emerging middle class numbering some 2billion, who currently spend USD 6.9 trillion a year. Over the nextdecade, this is forecast to increase to USD 20 trillion, doublecurrent US consumption. (Source: McKinsey, July 2010.) Back to actual CITYSUMERS. Consumption-wise, the fast pace and ever changing nature of urban life guarantees CITYSUMERS an endless number of new and fleeting social connections, expe- riences and (commercial) temptations. All of which means that CITYSUMERS are addicted to the here-and-now,  experiences,  choice and freedom, flexibility and rawness, unrestricted oppor- tunity, and yes, the hunt for the Next Big Thing if not the Next Big Story. In fact, urban culture is the culture these days*. Here are some quick indicators of urbanites spending power and behavior: • The average Manhattanite household spends 59% of their USD 13,079 food budget on dining out, compared to the average American household that spends only 42% of their USD 6,514 food budget on dining out. (Source: Bundle, May 2010.) • Even four years ago, Harris identified Urban Hustlers (who comprise 21% of US consumers aged 12-34), spend close to USD 9 billion (10% of their annual spend- ing), on recreational activities. Urban Hustlers are spend- ing, on average, over USD 100 more than the non-urban population monthly, with their overall discretionary spending reaches USD 383 per month. (Source: Harris Interactive, June 2007.) • The lifestyle of urban Chinese consumers has changed from a “survive” mentality to an “enjoy life” one, with 54% now pursuing a more fun lifestyle. (Source: GfK Roper, 2010.) • Only 17% of Chinese urban dwellers say they are reluc- tant to spend money. (Source: Economist Intelligence Unit, August 2010.) * Not just because of mass urbanization, but also because wide- spread online access enables remote rural audiences to partici- pate in urban culture. MATURIALISM obviously comes into play here, too: Constantly exposed to a wide variety of alternative lifestyles and experi- ences, CITYSUMERS tend to be more open-minded. Just oneYou are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 4. telling nugget: In August 2010, a Voice of India poll showed thatalmost a third of Indians in Bangalore and Mumbai support same-sex partnerships, a figure that would have been unheard of only afew years ago**. Enough stats and theory: here are some examples of brands de-All of this means that a large URBANE audience is up for brands lighting CITYSUMERS around the world in innovative ways:that challenge, thrill, titillate, or even shock (just as long as itsdone in the best possible taste ;-). At the very least, brands needto show some personality, loosen up and embrace urban culture,in all its gritty glory. Risky? Yes. But not as risky as being bland.** No, were not suggesting that every CITYSUMER is enthusiasti-cally and overwhelmingly liberal, but as we saw in MATURIALISM, In thriving mega-cities, whose economic and cultural power al-the clear (if gradual) global social trends are towards more tolerant ready often surpass that of entire nations, CITYSUMERS identi-attitudes towards abortion, euthanasia, casual sex, homosexuality, ties will often be closely tied to a citys culture, its brand, its heri-drug use, womens rights etc. More diverse living arrangements tage, its being. This means that for brands, delivering city-and the removal of many of the traditional social structures in cit- specific products, services and communications that truly cap-ies is a big part of this. ture a citys character, will be a great, human and fun way to pay  respect to CITYSUMERS (especially if those brands are consid- ered big, impersonal and corporate). • Fragrances are a popular way to capture a citys es- sence. High-end US fashion brand DKNY released a fragrance "Love from New York for Women", while the city of Beverly Hills created their own line of three scents that are meant to "evoke what life is like for the Beverly Hills woman". And then theres New Yorks Bond No.9 launch of High Line, a fragrance inspired by the New York neighborhood experiment. Dubbed as "The Worlds First Railroad Perfume with the scents of wild- flowers, green grasses ... and urban renewal."You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 5. • Minneapolis design firm Workerman created city in a The upside? That scarcity will be reflected in CITYSUMERS en- jar which contains a jar full of Minneapolis icons on pins; gagement, excitement and ultimately their willingness to pay each jar is filled with 600 pins with 20 different hot spots premium prices ;) from the city. Minneapolis was the first city to be bot- tled and there are more to come. • Check out Diors very expensive Shanghai Blue Phone, • 718 Made in Brooklyn is an urban furniture design only available in Shanghai stores, for a great example of company based in New York. In May 2010, "The Subway how LIMITED LOCATION doesnt mean limited prices. Series" was unveiled at the BKLYN Design Show in • Fashion brand Bape sells some of its limited edition Brooklyn. The work consists of decommissioned subway lines only in stores in the Kagoshima, Harajuku, Nagoya signs that had been recycled and turned into lights, for and Matsuyama regions of Tokyo. CITYSUMERS to place within their home. • The Spanish candle brand Cerabella has launched a range of candles inspired by the different districts of Barcelona, from La Rambla to El Raval. • In August 2010, Starbucks announced the launch of a new range of ultra-premium, single-origin coffees that will be only available in limited quantities in metropolitan markets including: New York City, San Francisco, Los Angeles, Washington D.C. and Miami. Or how about taking it right down to the neighborhood level? With mega-cities becoming ever bigger, intra-URBAN PRIDE of- fers the ultimate in extreme urban expression: • The Absolut Cities Series first launched in New Orleans, when the brand developed a special mango and black pepper blend inspired by the city. The taste of Boston saw the brand launch a black tea and elderflower vodka that has a backdrop reminiscent of Fenway Parks Green Monster, while 2010s Absolut Brooklyn was a red apple and ginger flavored vodka with a Spike Lee-designed brownstone themed bottle. • The final edition of Adidas City Collection was released in December 2010, paying homage to the city of Bir- mingham and its famous Cadbury chocolate factory.Related to limited (city) editions: With online access making eve-rything available to consumers from Atlanta to Adelaide, imposean oft-forgotten scarcity through LIMITED LOCATION products.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 6. • In December 2010 in San Francisco, Yahoo! installed digital screens into 20 bus shelters across the city on which commuters can play video games against each other. Passengers identify which of the 20 specified As we saw in our MASS MINGLING briefing, despite ever- neighborhoods they would like to represent when play- increasing amounts of time spent online, audiences arent retreat- ing, and the one that wins the two month long contest ing into virtual worlds. Au contraire, CITYSUMERS will forever will be rewarded with a music block party featuring the enjoy connecting with other, real-life human beings, and embrace band OK Go. the choice, the excitement, the frenetic pace, the spontaneity, the chaotic vibrancy offered by urban life. In fact, online (especially with smart phones being the new laptops) increasingly drives and enables offline encounters: • In October 2010, Adidas launched a game challenging footballers to capture cities. Connecting via Facebook, players pick their city (which is divided into hundreds of areas) and then try to claim each segment through one- on-one battles. • Geomium is an iPhone app launched in September 2010 in London that informs the user of where their friends are, what events are on in their area, as well as helping them discover local bars, restaurants and places of interest. • Foursquare competitor Gowalla decided to curate their content for select cities via City Pages. These pages provide a display of popular places, whats "hot now," highlights from a variety of venue categories (e.g. best burgers, best coffee), and even coordinated trips throughout these urban areas.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 7. • German company Locamap GmbH provides gay men with a guide to cities across Germany, Austria, USA and the UK. • US based Ratio Finder, launched in mid 2010, uses Foursquares API to show a heatmap with blue and pink bubbles, the size and color intensity of which displays the sex ratio of the check-ins at various restaurants, bars and entertainment venues. • In May 2010, Yahoo bought Indonesian social network- ing service Koprol that allows users to connect based on location. Mobile users can post a 200 character status message and use the site as a positioning serv- ice, without the need for a GPS receiver. Once logged in, users can see other members who are in the same loca- tion.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 8. • As part of Londons Design Festival in September 2010, German car manufacturer Audi unveiled eight robotic arms from their factory and put them on show in Trafal-Surrounded by the urban panoply, many time-starved, choice- gar Square. Users who visited Outrace.org could send arich, smartphone clutching CITYSUMERS look to brands to bring message to the robots, which was then traced in the airthem ever more varied and instantaneous experiences, especially with LEDs.if those experiences are fast-paced, transient interesting, physi-cal, interactive etc. Some recent examples: • Adidas has added Hamburg to their Urban Art Guide, following the success of their iPhone travel app that guides users around Berlins best graffiti spots. • In November 2010, US luxury label Ralph Lauren show- cased a four dimensional display on the facade of its stores in New York and London to celebrate the tenth anniversary of RalphLauren.com. Montages of Ralph Lauren imagery were projected onto the buildings and the audience could feel the images floating into the space towards them. The images were combined with music and fragrances for an extra special experience. • Snickers, the chocolate bar brand, host festivals of youth street culture in various cities across Russia and Mexico. Snickers Urbania features nearly all major ar- eas of street culture: extreme sports, graffiti, breakdanc- ing, beatbox, freestyle, and encourages young people to express themselves and their talent. • In July 2010, Volvo Londons Starlite Urban Drive-In featured a full-sized, outdoor screen along with 25 pre- parked Volvo cars, ready for patrons viewing, reminisc- ing and snacking pleasure.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 9. So, with URBANE audiences embracing products, services andexperiences that are more daring, more mature, or just more rele-vant to urban culture, here are a couple of examples that PUSHTHE URBAN ENVELOPE that bit further: • Axel Hotels, the Spanish based hetero-friendly bou- tique hotel chain, has partnered with New York-based Parkview Developers to launch a resort in New York tar- geted at the gay community. The resort, called Out NYC Urban Resort, will have an Axel Hotel, a spa, several restaurants and bars, stores and a dance club that opens seven nights a week. Currently, Axel has hotels in Barcelona, Berlin and Buenos Aires. • In July 2010, Calvin Klein posted a large QR code across two billboard locations in New York City. Passersby who used their mobile smart phones to capture the QR code were then shown a 40-second ad featuring model Lara Stone. • Also in July 2010, Mini Cooper launched an interactive billboard campaign in the red light district of Hamburg, featuring the back of a Mini with an automated S&M whip hanging over the back that could be triggered to spank the vehicle. • In January 2011, the CW network released a series of teaser billboards for their Vampire Diaries show. The billboards originally said "Catch VD" with no other ex- planation. Later, the billboards were updated with Vam- pire Diaries content. When asked for comment, CW’s spokesperson released this statement: “VD simply stands for Vampire Diaries, and anyone who thinks oth- erwise should probably get themselves checked out" ;-)You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 10. Cities are increasingly seen as a solution to the quest for envi-ronmental sustainability, with high density living promoting a moreefficient distribution of resources (although not everyone agrees).Indeed, urban environments offer forward-thinking brands awhole host of opportunities to delight eco-conscious CITYSUM-ERS: • In May 2010, German car manufacturer Daimler AG launched a temporary exhibition called smart urban stage to promote its smart fortwo electric drive series. smart urban stage was a global exhibition and included the cities of Berlin, Rome, Zurich, Paris, Madrid and London. • In September 2010, US based Urban Green Energy launched a wind turbine called eddy GT. The product boasts a special vertical axis design that enables power to be generated without making much noise and regard- less of wind direction. The turbine was specifically de- signed for city rooftop use. • In December 2010, Japanese car manufacturer Mitsubi- shi partnered with appliance chain Yamada Denki to sell its i-MiEV electric vehicle from 17 stores within the To- kyo area. Mitsubishi has sold 3,000 i-MiEVs in Japan since sales began in April 2010, but is hoping to boost these figures by taking the vehicle in-store. • Meanwhile, the Greenerator is a compact solar and wind energy device that is designed to be installed on an apartment balcony. • bring.BUDDY is a program, due to be tested out by US courier company DHL early in 2011, that recruits city dwellers to deliver packages along the urban routes theyd be taking anyway. • BMW has announced it will be bringing its first electric series to market in 2013. The Megacity Vehicle (MCV) will be released under a sub-brand and positioned as a zero emission car designed for city living. The car will beYou are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 11. made in-house with materials that are ultra light yet high in strength. • In June 2010, a prototype of an environmentally- friendly black cab was unveiled in London. It runs on a If mega-city spells throngs, noise, cramped quarters, concrete hydrogen fuel cell system, converting hydrogen into and foul air, it also spells ESCAPE. Brands focusing on enabling electricity with the only emission being water vapor. The CITYSUMERS to temporarily leave the city and enjoy some plan is to have 150 of these cabs running on the road in peace and quiet with nature and clean air thrown in, will come time for the Olympic Games in 2012. up with service innovations forever. Just one example: • In April 2010, Honda announced its intentions to bring its first EV-neo electric scooter to the Japanese market in 2010. The lithium ion battery-powered scooter is de- signed for short delivery trips around Japans busy cities including pizza or newspaper deliveries. • Meine Ernte, a German agricultural start-up, is offering couples and families the opportunity to rent plots of land for farming vegetables near six of the largest cities in the country, including Frankfurt and Bonn. Tools and advice from an expert farmer are included ;)You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 12. For those CITYSUMERS unable to escape, how about bringing Urban living, with its premium on space, means that for manypeace and quiet, greenery, and other rural qualities to the city? CITYSUMERS, owning bulky, irregularly used items is inconven-Heres one fun example: ient, if not unnecessary. Easier access to public services or even private objects is creating a culture where ownership is increas- ingly a choice to be considered. Furthermore, an OWNER-LESS model also allows CITYSUMERS not having to sink large parts of their budgets into a small number of high-price tickets, freeing up money to be spent on a multitude of experiences: • In October 2010, US based property developer The Al- banese Organization announced that it has launched a collaboration with Holton Farms to deliver fresh, local produce to the residents of its properties in New York every week. With the huge number of car and bike sharing schemes around the world, successful new entrants into this crowded space are likely to be supported by a big brand or local authorities, innova- tive, super-eco-friendly or indeed many (or even all) of these at once ;) • German auto manufacturer Daimlers Smart car2go car- sharing service. • Frances OKIGO, a collaboration between VINCI Park and Avis. • Peugeots Mu mobility service that rents cars, scoot- ers, vans or even bicycles. • New Yorks Department of Transportations partnership with Zipcar to share hybrid cars between employees and the public. • SoBi, the first public bike share system where the authorization, tracking and security systems are at- tached to the bicycle itself. • Spride Share, launched in California in September 2010, that allows car owners to offer their vehicles to others for private rental. • Fiat offering electric bikes on loan to customers whilst their cars are being repaired in five Spanish cities. • Autolib, one of the first electric car-sharing set to be launched by the city of Paris in 2011.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 13. CITYSUMERS is the trend that keeps on giving for any business professional obsessed with fun/practical/meaningful innovation. You will undoubtedly have noticed that many innovations covered in previous briefings can be applied to create products, serv- ices, experiences or campaigns that are tailored to the very spe- cific (and often more refined, more experienced, more demand- • But its not just big-ticket items. Savvy, wired urbanites ing) needs of urbanites worldwide. increasingly have temporary access to almost every- So heres one last round of examples, representing CITYSUMER- thing. New York, with its vast market of super- compatible trends like NOWISM, PLANNED SPONTANEITY, spontaneous and seriously space-deprived consumers BRAND BUTLERS, and RANDOM ACTS OF KINDNESS: has ever more options for those CITYSUMERS who cant, or dont want to purchase items. Snapgoods, enables people to rent other peoples belongings, while Rent the Runway that allows women to rent designer dresses (with same-day delivery available in NYC).As the question of ‘TO BUY OR NOT TO BUY’ has spread to cit-ies everywhere, well take a look at the rise of SHARECONOMICSin a future briefing.] • More on bus shelter branding: for one week In Decem- ber 2010, Parisians waiting to catch the bus had the opportunity to wait in comfort as Swedish furniture giant IKEA had decked out 12 (often crowded) bus stops with comfy sofas, shelves, lighting and decorations. • In January 2011, US based coffee retailer Caribou Cof- fee launched heated bus shelters in Minneapolis, made to look like giant ovens, complete with actual heat- producing coils to warm commuters. • In November 2010, city guide Flavorpill released an app that covers cultural events in major US cites such as New York, Los Angeles, Chicago, and San Francisco (London, Miami, Las Vegas, and Dallas reportedly com- ing soon). Puma sponsors the app, so embedded within it are brand promotions featuring giveaways, products and videos. • In May 2010, New York based Compactix launched The DeskMate, a portable device that allows desk-bound professionals to exercise while they work.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
  • 14. Weve had to struggle to stop this Trend Briefing from becoming a book, and yet were just scratching a single surface of the multi- faceted phenomenon of urbanization here. For much more beyond the consumer angle, and to better under- stand the political, economic, industrial, ecological and even psy- • In December 2010, Ciroc Vodka launched a campaign chological implication of the future global urban landscape, check in New York in association with Sean Combs and NYC out the UN Habitats State of the Worlds Cities 2011 report, Taxis. The Safe Rides Program saw Ciroc staff teams Foreign Policys Global Cities issue, McKinseys What Matters: distribute pre-paid USD 25 gift cards to consumers that Cities or World Policy Journals Megalopolis: The City of the could be redeemed for taxi rides. 21st Century issue. • To celebrate the holidays and drive sales over Christmas And while youre immersing yourself in an urban future, start add- 2010, KFC unveiled the Festive Feast - a campaign that ing a city-angle to your strategies, your innovations, your part- asked consumers to explain why their hometown de- nerships, your campaigns. Does your brand have a New York served a visit from KFCs secret Santa carrying USD specific strategy yet? London? Singapore? Sao Paulo? Shenz- 20,000 in cash KFC gift cards. hen? Amsterdam? Cape Town? Taipei? Toronto? Istanbul? Well take another look at the endless opportunities that this trend is unleashing later this year, so make sure youre subscribed to our free Trend Briefings. Enjoy! • British Airways Metrotwin is an online portal which compares and contrasts city twins, and as a social util- ity for time starved, novelty-seeking urbanites living or traveling between the two cites. The site currently fea- tures London, New York and Mumbai, providing recom- mendations for the best neighborhoods, businesses, attractions and places to visit. • In January 2010, Nike launched its True City iPhone app, which aims to give consumers insider information on six European cities, while also allowing users to share their own tips and delivering exclusive Nike offers and information.You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)