Getting to know consumers of 2020
Be mindful of local culture, build trust, and deliver valuable products and services.These are some of the key initiatives brands and businesses need to do in order to keep up with changing consumer behavior and concerns, says the report “Top 10 Global Consumer Trends 2020” by global market research company Euromonitor International. (Access the full report here: https://bit.ly/30guliL.)
Released annually, the report identifies such trends through international industry market analysis and quantitative global consumer surveys. It also discusses how industries are responding to such trends, as well as their long-term impact on businesses. Some of Euromonitor’s in-house experts also share their insights in the report.
This year, the 10 most prevailing consumer trends are:
Beyond Human. This trend shows how people are beginning to accept that artificial intelligence (AI) can perform certain tasks traditionally done by humans, states the report. While there are still trust issues that need to be addressed, consumers are embracing the use of such technology for their own welfare. Examples include connected robotic vacuum cleaners, which 50 percent growth of global volume sales in 2018; and smart appliances, for which 41 percent of people worldwide are willing to pay a premium, according to Euromonitor International’s 2019 Lifestyles Survey.
Industry response: In China, there is Alpha Mini by Ubtech Robotics, a portable robotic toy with LCD eyes and is capable of voice interaction, facial recognition, and flexible movement. In Sweden, Furhai Robotics, a social robotics and conversational AI startup, has rolled out a trial version of Tengai, the world’s first “interview robot,” which “claims to overcome emotional biases and improve decision-making efficiency.” Japan, naturally, has its own developments, and one company at the forefront is Toyota Motor Corp., which has created a series of robots that are set to be used at the 2020 Olympic and Paralympic Games in Tokyo.
Outlook: This is a trend that’s here to stay, says Euromonitor. Such technology can be used to automate a number of business processes, such as manufacturing and logistics. It can also be utilized to understand different consumer demands, and to deliver personalized solutions with precision.
Catch me in Seconds. This trend says that with information basically at consumers’ fingertips all the time, brands and platforms need to provide content that is easy to digest, authentic, and that caters to their personal preferences as well. It’s a trend that’s particularly visible in emerging markets, including Asia Pacific. As for marketing channels, while engagement is very high online, the report says most people turn to their trusted sources, such as friends, family, and independent consumers (again, authenticity is key).
Industry response: Instagram’s Stories feature is a development that exemplifies this trend, says the report, because of its ephemeral format. The platform says 39 percent of its users became more interested in a brand or product after seeing it in Stories. There is also Quibi, a US-based tech and entertainment startup that is set to launch a mobile video platform this year. Quibi’s streaming content will consist of 10-minute videos—perfect for people who are always on-the-go.
Outlook: Euromonitor says the consumers’ need for quick and relevant content—plus factors like growing smartphone usage, an equally growing middle class, and visual-centric younger generations–will only “propel the cycle of innovation” that will continue to strengthen this trend.
Frictionless Mobility. As more people flock to urban centers, they also expect to access multiple transportation options that match their schedule and budget, and offer a seamless experience. The sharing economy’s growth has also diminished the need for car ownership.
Industry response: In Singapore, there will soon be BlueSG, a 100-percent electric car-sharing service, with a network of 1,000 vehicles, which can be accessed using a membership card. They can be picked up and returned anywhere, making it easy for users to catch other modes of transportation. Fancy flying across town? In Germany, Volocopter is launching by 2022 a commercially licensed on-demand air taxi service, and they plan to roll it out in other countries as well.
Outlook: Car-first cities will soon become a thing of the past as consumers embrace crowded communities and shift their mindset from vehicle ownership to access.
Inclusive For All. Thanks to global awareness on physical and mental disability, brands and businesses are “reframing” their products and services so as to cater to everyone, and not just to the mainstream market, says the report. By doing so, prejudice against “different” individuals is slowly being erased. Authenticity and inclusion have now become top priorities for companies.
Industry response: In Israel, global household goods retailer Ikea is creating furniture designed for the disabled community. The line is called ThisAbles, and it includes “glass bumpers,” which stop wheelchairs from knocking into bookshelves; “mega switch” buttons, which make turning lamps on and off easier; “easy handles” for opening doors; and “grippers” for shower curtains.
Outlook: Because disability takes on many forms, Euromonitor says that companies need to be more inclusive by truly understanding their consumers’ specific needs. Diversity, the report further states, will become a measure of a brand’s relevance.
Minding Myself. As consumers become more aware of the importance of mental health and well-being, they are also seeking more “outcome-based” goods to address mental needs in order to prevent physiological effects of stress and anxiety. One such commodity is legal cannabis, and according to Euromonitor, the market for this product will reach $166 billion by 2025. The report also states that alcohol and tobacco are being replaced by less harmful stimulants, which still mimic the effects of intoxication, but allows the consumer to destress via natural means.
Industry response: In the US, there is Recess, a carbonated water infused with hemp extract and adaptogens (natural substances that are believed to help the body adapt to stress), and The Good Patch, hemp-infused topical patches which address specific needs (their labels include Hangover, Be Calm, Period, Pain Relief, and Hot Flash). In the UK, there is a company called Beyond Alcohol that sells an alcohol-free brand called Three Spirit, which contains spices, roots, and herbs that target specific receptors in the brain to heighten positive feelings.
Outlook: Described my Euromonitor as a “powerful long-term trend,” Minding Myself will be all about consumers seeking out responsible stimulation and mental well-being from brands and businesses’ products and services.
Multifunctional Homes. There will soon be no need for people to leave home, as internet connectivity improves and more products that enable remote work become available, says the report. Euromonitor’s research shows that in all parts of the world, the number of households with access to broadband internet has doubled since 2010. This not only changes the nature of work, but also how and what people consume (e.g., more takeout food, casual wear, home-based fitness equipment/programs).
Industry response: Mirror, a full-length interactive display, is being sold in the US as an interactive fitness studio (it comes with a camera and speakers). It allows users to join instructor-led workout classes. Some are stored in the device’s library, while others are streamed live every week from Mirror’s New York fitness studio.
Outlook: As internet speed continues to improve, the “evolution” of the home is bound to accelerate, says Euromonitor. “As traffic to stores, restaurants, and gyms in central business districts decreases, consumer demand to receive these same goods and services at home will increase,” the report states.
Private Personalization. As consumers expect brands to customize their products and services for them, they also willingly give up more of their data to brands and businesses that use the information to achieve more precise marketing. Personalization also means customers tend to do less research now, as algorithms already curate content based on their interests. People, however, remain concerned about data privacy—what is being collected, and how it is being used—and that’s something companies need to be transparent about in order to retain the trust of their consumers.
Industry response: In Japan, a design studio called Open Meals is set to open a sushi restaurant that offers customized dishes based on diners’ DNA, which they collect two weeks before customers visit. Upon visiting, customers are given the results of their health analysis, and, based on this, a menu of suggested meals.
Outlook: Transparency is key with Private Personalization consumers, says Euromonitor. Companies must also assure these customers that their data security is adequate, and that there is always the option to not share any data when they don’t want to.
Proudly Local, Going Global. This trend focuses on how people are patronizing more local brands, which is influencing multinational companies to “respond appropriately and creatively to local culture, social norms, and consumer habits.” This means MNCs are also localizing their production, or acquiring locally established brands.
Industry response: In Nigeria, it is important for Adir textiles, or large indigo-dyed cloths in bold resist-pattern designs, to receive the “Adire Ogun” seal of authenticity, as it makes the fabric an official and cultural identity of the province, with full patent rights. The report says Adire jackets and other ready-to-wear designs are now in high demand globally.
Outlook: According to the report, this trend shows that consumers will be retreating from globalization and “hyper-consumption,” and are moving towards buying fewer but higher-quality products from local sources.
Reuse Revolutionaries. When it comes to business models, linear is out, and circular is in. These consumers are usually the younger ones, who are more conscious about companies’ sustainability practices. The report also cites results of Euromonitor’s Lifestyles Survey 2019, which states that 60 percent of consumers are worried about climate change, and 54 percent “think they can make a positive contribution in the world with their purchases.”
Industry response: According to the report, chocolate brand KitKat launched last year recyclable paper packaging to replace plastic wrappers. These also came with instructions for origami paper figures, to encourage consumers to reuse rather than just throw away the wrappers.
Outlook: Reuse Revolutionaries will continue to push businesses to become more sustainable, making subscription models and reusable/refillable options more common. Still, consumers will demand convenience, which means companies need to strike a balance between that and sustainability.
We Want Clean Air Everywhere. In connection to consumer concern about climate change and the environment, the demand for better air quality has also become more relevant. Awareness of air pollution is, therefore, impacting consumers’ choices, states the report, and how brands are positioning themselves to target environmentally conscious consumers.
Industry response: In the UK, startup Cambridge Mask Co. has created colorful face masks to protect people from the effects of air pollution and airborne illnesses. The report says these masks have become popular among climate activists, who post photos of these on social media to increase awareness on air pollution. In France, the company Plume Labs has come up with an air quality monitoring device that is linked to a smartphone app.
Outlook: In the long run, this trend will evolve into an advocacy for a carbon-free world. It will be pushed by younger consumers who want cleaner and more sustainable cities.
