While consumers are still reeling from the aftershock
created by the economic meltdown, they have learned lessons, changed behaviors
and adapted to a new way of life.
With that in mind, Mintel, a supplier of consumer, product
and media information, predicts nine key consumer trends for the year ahead. The
forecast examines how long term behavior has been affected and concludes that,
in 2011, consumers will be living for the long term with attitudes inspired by
a changed value set.
"The effects of the global economic crisis have had long
reaching implications and it is not just consumer behavior in the short term
which was affected," says Alexandra Smith, global trends analyst at Mintel.
"Indeed, these consumer trends for 2011 are a legacy created by economics, but
now gathering their own momentum and are set to influence the global consumer
mindset for a long time to come."
Prepare for the worst
With a heightened sense of what economic collapse looks like
thanks to the global recession, a renewed emphasis on prevention will drive
consumers to think defensively. In the UK, 43 percent of consumers say "trying
to add to my rainy day savings/emergency fund" is a priority for this year, up
15 percent from last year.
In the US, a third of consumers say they're using debit
rather than credit, and debit transactions are forecast to rise nearly 60
percent between 2000 and 2010. Consumers want to know what they're getting
themselves into: no loopholes, no hidden costs and no pricey upgrades. So, 2011
may see the need for brands to demonstrate how a product or service delivers
long-term benefits or prevents problems down the road.
Retail rebirth
With online experiences developing rapidly, for bricks and
mortar retailers discounting is a no-win battle against the Internet. In the
UK, 47 percent of consumers are buying only clothes on sale, offer or promotion
and 35 percent say their choice of store is determined by special offers or
discounts. In the US, 35 percent say their choice of store is determined by
special offers or discounts.
In 2011, brands may need to get more creative to lure
consumers into stores, offering more than just retail and be a venue, not just
a shop. Service may extend into advice and demonstrations, while exclusivity
and environment may also be key aspects to engage consumers with real life, not
virtual, shopping experiences.
Where it's app
With smartphones becoming the dominant mobile force, Quick
Response (QR) codes and app technology will pique interest, provide portals
into unique experiences and improve our quality of life. In the US, sales of
smartphones grew 82 percent from 2008 to 2010. In the UK, 28 percent of consumers
own a smartphone and by 2015 iPhones will make up 11 percent of all total
devices used in the UK.
As consumers are empowered like never before, 2011 will see
people take a deeper interest in where they are: from the city to a specific
store. Geography and status can be redefined through retail, presenting savvy
brands with an opportunity for increased location based services, promotions
and solutions.
To capitalize on consumer awareness of technology, brands
will need to take QR codes beyond niche understanding, using it to explain and
offer exclusive content. Rather than displacing our interaction with the
physical, this technology has the potential to reinvigorate our relationships
with brands, retailers and with each other.
No degree, no problem
Economic uncertainty has changed the workplace and the
meaning of job security for the foreseeable future. As a result consumers will
continue to question higher education's return on investment and alternative
channels for learning will gain credibility.
In 2011 we may see
more lifelong learning in the workplace, corporate sponsored degrees and
companies investing in employees through education and training rather than
salary or benefits. Meanwhile learning while doing, rather than learning in a
lecture hall, may become a focus and with do-it-yourself education gaining
steam, there's an opportunity for brands to play host.
On her own terms
Women are earning and learning more than men, creating new
gender roles in business and consumerism. In 2011, age is no longer an easy
marker for lifestage. Opportunities lie for brands to focus less on the year
the female consumer was born, and more on where she is with her life right now.
In the US in 2008, 27 percent of men reported being the sole
cleaner in their household; in 2010, that number jumped to 32 percent.
Meanwhile, among under-35s, more UK women than men research financial products
online.
So, 2011 may see a counter trend to the "metrosexuality" of
men in a "masculinization" of women. Implications for how brands market to
women will be big, especially in sectors such as automobiles and sports. With
men helping around the house more than ever, there may be an opportunity for
brands to cater household products, as well as retail experiences accordingly.
Retired for hire
People are working beyond retirement -- either due to
financial need, or because they have grown attached to a lifestyle of leisure
and pleasure. With half of Americans having no retirement account, the number
of over 65s working will reach nearly 20 percent by 2014. In the UK, 77 percent
of over 55s plan to continue working after retirement age "in order to enjoy
and prolong a better standard of living."
In 2011, this group may prove an untapped market for
advertisers, affecting a number of consumer sectors. Vitality, energy and
longevity will become key product qualities in the food and drink sector, while
health and beauty messages may need to center on anti-aging properties,
nutraceuticals and older models to reach this target group.
The big issue
Our attitude toward weight is polarizing, pitting the rise
of the super-healthy against the eternal appeal of indulgence. In the UK,
almost a quarter of women wear clothes in sizes 18 and over, a third of men
wear XL clothes or bigger and more than 30 percent of UK children are now
classed as overweight. Meanwhile, 34 percent of US adults age 20 and over are
obese.
Therefore, 2011 may see a wider array of products catering
to an obese market: from portion control and more info on packaging to low-cost
healthy fare and products to firm and salve chaffed or sagging skin.
Garden state
Modern city dwellers have a growing love of gardening and a
need for nature and with fresh, organic produce still economically out of reach
for many, consumers are finding their own ways to bring healthy home.
In the US, 26 percent of Internet users purchased vegetable
seeds in past year, 19 percent bought vegetable/flower garden fertilizer and 27
percent said they like to grow vegetables at home. While in the UK, one in five
consumers grows his own fruit and vegetables and the UK Allotment waiting list
has grown 20 percent in 2010. In the US, 40 percent of people with a garden
agree "growing fresh food to cook with" is important.
In 2011, rural tourism, working farm holidays and garden
leisure may benefit, while rising food and commodity prices may see a boost for
seed sales as this trend develops.
Who needs humans?
As we move into an ever more digital era, automated
technology has machines replacing people -- for better or worse. While
cashier-less checkouts have become commonplace, we're starting to see machines
creep into new territories, including hospitals, libraries, pharmacies and the
home.
Therefore, 2011 may see certain jobs permanently displaced by technology -- that includes service jobs, not just manual or factory work. But backlash and balance-seeking may lead to an increased cache for hyper-personal goods and services
