The report shows how shifting consumer behaviour is disrupting businesses through 10 global trends.
Covid-19’s disruption of supply chains led to a shortage of products, but Backup Planners took control to get ahead of the crowd.
Using subscription services or community group buying to secure deliveries, and, when thwarted, finding alternatives, or even delaying purchases or changing shopping habits, this group has moved to the first in the queue.
Despite the stabilisation of supply chains later this year, new shopping habits will dictate how Backup Planners discover and select products, with localisation and optimisation becoming the norm. Companies and distributors should use data to improve supply chain visibility, hone operations and rethink investments.
Covid-19 has been a catalyst in the transition towards a net-zero economy. As concerns over climate change grow, consumers are looking to brands to step with consumers taking action through the products they purchase.
Climate Changers make more sustainable choices, and demand action and transparency from brands - there is no gap between climate awareness and intention to act.
Digital innovation is reshaping how retailers, manufacturers and consumers transition to a new era of environmental transparency. Tech tools, such as digital product labelling and mobile tracking apps, help consumers trace ethical claims, their carbon footprint and recycling habits on their phones.
The largest spending cohort of the future, Millennials and Generation Z, will use these tools to ensure minimal climate impact. The more offerings that align with expectations of Climate Changers, the more brands will see their products and services resonate.
The pandemic broadened older consumers’ minds to the benefits of the digital world as they were forced online as the world shut down. As a result this group is adopting more tech solutions to assist with their daily lives, such as browsing and shopping online.
They embrace virtual solutions for socialising, health screenings, finances, and learning. TikTok is one platform these consumers use, because of their digitally native grandchildren, influencing and empowering them to be on social media.
However even as older consumers embrace technology, human interactions will remain a prevalent component of how they engage with brands. Therefore, easy-to-use technology and seamless solutions combined with face-to-face communication define the future of digital inclusion for seniors.
While uncertainty, instability and lockdowns caused certain consumers to spend less and save more, others turned to apps to make smart money moves. Financial Aficionados increased their financial literacy and found alternate income streams, such as investing in the stock market and turning hobbies into businesses.
Money management apps that are consumer-centric, digestible, educational and simple stand to benefit in this era of financial democratisation. Retailers and brands should collaborate with financial service corporations to facilitate alternate forms of payment, such as cryptocurrencies or buy now, pay later.
The potential impact of Financial Aficionados, from increasing their investment rates and growing their financial acumen, cannot be underestimated.
In 2015 only 12% of consumers prioritised time for themselves. In 2021 this doubled to 24% as consumers took inventory of their lives as the pandemic triggered consumers to change their values and actively chart a new path forward.
The results are drastic personal changes and a collective reboot of values, lifestyles and goals - The Great Life Refresh. Brands that cater to The Great Life Refresh will be viewed as partners, helping consumers adapt to a new way of life.
With strict social distancing requirements, consumers learned how to stay connected, forming new online communities that offer a range of interactivity, from livestreaming to gaming.
As the digital world evolves beyond virtual hangouts to immersive 3D realities, consumers are embracing these digital spaces to socialise with communities.
As The Metaverse Movement continues to gain tech-savvy participants, businesses must figure out how they can increase brand recognition and generate revenue, as these immersive environments can drive e-commerce and virtual product sales.
Consumers want to live sustainably and minimise environmental footprints. At the same time, affordability became a crucial factor during the unstable economic situation.
Sustainability and individuality are removing the stigma associated with second-hand shopping and driving peer-to-peer commerce. The desire for exclusive or unique pieces are driving second-hand shopping to the mainstream, with vintage and slow fashion assisting this trend to flourish in the apparel market.
It is the younger generations who are on the Pursuit of Preloved, searching for one-of-a-kind products. Influencing this trend is the plethora of apps available to sell and buy second-hand and the desire for sustainable options. Recommerce will become increasingly prevalent and cover more categories. Pursuit of Preloved will inevitably improve sustainable production and consumption and brand reputation as a result.
Last year saw some consumers relocate from the cities to rural areas temporarily and then permanently. Others, not ready to give up urban life, still want the benefits of more spacious housing and greener scenery.
The desire for green environments, and spacious and sustainable communities, will dictate where Rural Urbanites choose to live. Regardless of location, brands need to adjust their strategies to retain customers by expanding brick-and-mortar outlets and services whilst investing in e-commerce.
As life returns to normal consumers crave comfort and love. No longer in survival mode, these consumers are embracing the future and are proud of overcoming hardships.
Self-Love Seekers prioritise their happiness, feeling comfortable in their own skin and indulging in goods and services that elevate their sense of self and align with their motivations and identities. Offerings that help consumers feel fulfilled, positive and self-assured will improve brand perception.
The Socialisation Paradox defines the ways consumers are returning to their usual routines.
Certain consumers acclimated to life in lockdown and will continue to make purchases for at-home consumption. Others were restless and are ready to participate in society again. Between these two preferences are those who desire a form of normalcy - willing to venture out for select activities, still cautious about their health.
The Socialisation Paradox is a behavioural phase influencing consumer habits. Businesses should be receptive and provide a seamless experience with innovative and adaptive solutions.
Download the full report here.
