First of two parts
Illustrations by Albert G. Rodriguez
Last year, we put together a list of trends based on our analysis of how things tend to progress or transform into other patterns of change.
This year, we have put together another such list, this time combining our own forecasts with information shared by some Mansmith Young Market Masters Awardees and friends from TNS-Kantar who gave their views on what 2015 will look like for various industries.
Here are what we believe will be the trends that will define 2015.
- Launch of new categories—As the economy improves and income rises or stabilizes, expect consumers to be more open to trying new ideas and newer categories, including existing categories with a lower market penetration (cereals, yogurts, mouthwash, insurance, water purifiers and smartphones).
- Emergence of the economy premium (Econoprem) segment—While masstige refers to a prestige brand pricing downward, econoprem is about an economy brand pricing upward.
With extra benefits and aspirational packaging as key features, more Filipinos from the middle class will be willing to buy these products that are priced slightly higher than economy brands but more affordable than imported brands.
In the beverage category alone, one can see Red Oak sangria, Excellente brandy, Don Papa rum and Manille liqueur as examples.
- Availability of cheaper smartphones—Low-priced smartphones provide Filipinos with cheaper alternative sources of information and entertainment, leading to a more informed and connected population.
- More investments and luxury purchases by unmarried (single) yuppies—Increase in disposable income plus easier access to opportunities such as travel and education will lead to many young Filipinos postponing marriage and/or having kids to their late 20s or 30s. This may also mean that these young people may choose to invest more in stocks and insurance or buy branded premium items. They have a higher disposable income considering that they continue to live with their parents and thus, have lower personal overhead expenses.
(traffic, technology and time)
- Shift to small store formats—Traffic will lead to smaller store formats (community stores, mini-marts, convenience stores) for greater buying convenience.
- Small stores to become one-stop shops—Convenience stores selling food will become a fast food substitute. These will also threaten other categories as these convenience stores are becoming one-stop shops for almost everything else.
- Provision of tech solutions—People will become less tolerant of additional inconveniences after enduring traffic on the road, thus, leading to more tech-based solutions (transportation, shopping, entertainment) to help manage personal and work life necessities and increase discretionary time.
- Loyalty cards to become obsolete. Customers will likely prefer the convenience of having everything on their smartphones, and do away with carrying too many loyalty cards in one’s wallet to avail themselves of benefits.
Primacy of self and wellness
- The urban outdoor becomes popular—More people are dressing up in fashionable, outdoor inspired looks.
10. Cycling becomes the new golf—More runners are becoming cyclists, and cycling is the rave among executives, resulting in the phenomenon known as “Mamils” or “middle-aged men in Lycra” (tight fit jerseys and shorts). Toby’s group has in fact opened Trek Bicycle Store, the first cycling lifestyle store, last December to take advantage of this trend.
Triathlon is also booming. A record number of new triathlon events are scheduled in 2015 as more people challenge themselves to reach their personal best.
Illustrations by Albert G. Rodriguez
(To be continued)
(Josiah Go is chair of marketing training firm Mansmith and Fielders Inc. while Chiqui Escareal-Go is president and CEO of the Mansmith Training Group. They can both be contacted at info@mansmith.net.)