QSR Magazine published a Mintel white paper “Five Major Ways Consumers Will Adapt and Make the Best of Next Year.” I felt it proposed some interesting ideas, so what follows is a condensed version of the report. A link to the full report follows this post.
As a backlash against the fast pace of the modern world, people will try to take greater control of their lives and find pleasure in the simple things. Faced with financial insecurity, shoppers will seek out businesses and products they feel they can trust. And although they will cut back on spending, people will continue to treat themselves to little luxuries and fun activities.
1. You are in CONTROL
Over the years, people have become more confident and demanding about how they live their lives and spend their money. Consumers will seek out products and services that give them exactly what they want, when they want it, especially as their budgets tighten. And the Internet will play a key role in that effort.
Implications: Manufacturers must respond with products that suit people's specific needs and lifestyles. Those companies that give consumers precisely what they want or give them the freedom to customize their purchases will do well. In addition, Baby Boomers will still be of particular interest to businesses. Companies will move beyond traditional "old age" products and services to ones that embrace the active, healthy lifestyles of many older consumers.
2. Simplify and purify
Faced with fast-paced modern life, many people will seek convenience and simplicity. They will also demand that companies communicate with them honestly and openly. From understandable ingredients to clear company practices, consumers will want complete transparency when it comes to the products they buy. Old-fashioned skills such as cooking at home, sewing and gardening will become increasingly popular.
Implications: As consumers look for more authentic, easy-to-understand products, companies should seek to market their brands in a simpler, more direct way. Fresh…clean…sustainable …and natural will become essential values for consumers. And as people "cocoon at home” to save money and simplify their lives, companies will create products that address dining, relaxing and entertaining at home.
3. Rebuilding trust
Today's consumers have high standards and will demand value as well as consistently high levels of quality, safety and service. Crumbling economic markets, food scares and toy safety problems have fueled an era of doubt and insecurity, so people will seek out trusting, open relationships wherever they can. Winners will be long-standing, nostalgic brands with sense of familiarity.
Implications: Manufacturers will need to back up their words with actions and conduct business in a more open, honest way. Reassuring consumers that they are acting in the customers' best interest will become a primary concern for businesses. Also, as companies see shoppers sticking to already-familiar products, long-standing brands will move into new markets to exploit their position as trustworthy companies.
4. Trading down
As purse strings tighten, consumers will look for every possible way to make their pennies stretch further. Shoppers will mostly trade down to budget-friendly solutions to save money. But occasional indulgence in small, affordable luxuries --- like premium chocolate, designer sunglasses or a favorite premium moisturizer.
Implications: As consumers split between the low and high end of the market, manufacturers will invariably follow suit. Many companies will start to focus on value brands, but there will still be room for products that bring quality and perhaps a little luxury to the everyday. "The middle market will increasingly be squeezed and is going to have to prove its worth when faced with competition from newly improved basic lines. " For example, expect premium ready meals that give a restaurant experience at home, or beauty products that bring a spa-like feel to the bathroom.
5. Playfulness, lightening the mood
In tougher times, people need to enjoy themselves occasionally. Small playful distractions such as neon make-up, fun-to-eat food or interactive stores like Apple will become increasingly popular as people look to let their hair down and have some fun.
Implications: Companies will focus on products and experiences that are light-hearted, while those that offer real entertainment will have a significant competitive advantage. Beyond this, manufacturers will launch products specifically designed to enhance people's moods in unique ways. From food and beauty to household cleaners, expect to see a widening range of products that soothe, energize, or simply lift the spirits.