Q&A: Top 10 Global Consumer Trends For 2017

Opinion | 23 Feb 2017

Daphne Kasriel- Our recent global and APAC webinars "Top 10

Alexander Global Consumer Trends For 2017" explored
Consumer Trends the consumer trends that will reign around
Consultant the world this year, and which are likely to
influence consumer purchasing choices - and
so the estimated US$ 43 thousand billion of expected real global consumer
expenditure. The events saw over 3,000 registrants and significant live engagement on
Twitter. A thought-provoking Q&A session concluded the live broadcast, highlights of
which follow below.

Does the obesity epidemic and

demands by those consumers
contradict or expand the wellness
as status consumer trend? Do
they work together or are they
mutually exclusive?
I don't see this as a contradiction.
The wellness industry needs to
address the needs of obese and
overweight consumers who make up
growing proportions of the general
population even it typical advertising
shows svelte customers. In 2017,
obese populations aged 15 will hit
42.7% in North America and 19% in
Western Europe. There are already
specialist weight management breaks
on offer, for example. One must
remember that many consumers who
feel passionate about wellness are
not necessarily models of health and are interested precisely because they seek to
improve their overall health and show that it is a priority for them.
How is the consumer interest in authenticity impacting business?
With authenticity and personalization key consumer trends for 2017, buying items
directly from their producers and their country of origin, often with personalized
elements to suit their individual tastes, can give consumers the satisfaction that they
are purchasing genuine items with positive associations like heritage tailored to their
needs and so unique too. It's important to add that this broader choice extends to
fresh and packaged food - often sought to calm consumer concerns regarding product
safety - as consumers can feel reassured buying more 'natural' organic food, for
instance, that may not always be available locally.

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I talked a bit about what's basically a consumer rebuff of things synthetic, a love for
the natural and 'less than slick'. This is likely to be expressed in consumer choices and
buying aspirations more broadly than the more premium pursuit of 'real' consumption
advocated on websites like Gwyneth Paltrow's Goop, for instance.
The reason Westin's new Let's Rise campaign works in my opinion - for instance the ad
showing a woman reclining in a pool and a caption of Take back what seat 34E took
from you!! - is that it tries to acknowledge the discomfort of travel - the authentic
aspect of it - and then leverage it.

In my agency we have spent a lot of time trying to understand why, if the

mature consumer market is so attractive (high worth, growing), then why are
brands continuing to alienate them and chase the sexy millennial audience?
It is true that the majority of brands insist on depicting people in their campaigns who
don't reflect their typical, older consumer base, but things are changing. Luxury
brands, are realizing that their target demographic may not be influenced to buy by
teen starts.

As I discussed in my recent report, the visibility of older role models in fashion

campaigns continues in 2017 as creative directors, such as Gucci's Alessandro Michele
recognise that teen Instagram stars may not impact a wider demographic. He picked
theatre doyenne, Vanessa Redgrave, 79, for Gucci's current Cruise ad campaign. In an
industry known for celebrating youth, some see this as a shift. Mainstream celebrities
like actress Renee Zellweger have been outspoken about the demeaning 'body
shaming' of older people in the public eye. The first London 50 Fashion Week in 2016,
was driven by research showing a majority of older women polled felt ignored by the
high street. Hollywood actor, Kurt Russell, 65, stares confidently from the October
2016 cover of men's style magazine GQ in double denim. Style-aware older women
grace the sequel to Ari Seth Cohen's new style bible, "Advanced Style: Older and
Wiser." Other examples of higher profile older role models include Wang Deshun, a
muscular 80-year-old actor, catwalk model and D.J. who enjoys subverting China's
image of what it means to be old, in a country where early retirement is standard.

If consumers are beginning to care more about product services than brands,
does this mean that product centered communication will be more impactful
than brand purpose communication?
I think it depends on the product, but there is no doubt that consumer loyalty to
brands has been left behind to some degree and so a focus on product seems wise.
The whole landscape of consumer/brand relationships is changing. Consumers globally
are listening less carefully to company messages and more to each other when making
purchasing choices and sharing buying experiences, lifestyle habits and consumption
aspirations. Post-recession, with the greater openness to frugal living, and a broader
definition of what value means, consumers don't show the loyalty to brands their
parents did. I think brands need to engage with key consumer trends to understand
how to decode their current and new consumers and the broader cultural influences on
actual purchasing choices and buying aspirations.
Companies now have to insert themselves into online conversations, often on social
networking, and to commit to communicating with their connected consumers in real
time, in order to reach out to their existing and potential audiences who are now less

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brand-loyal and less open to traditional marketing approaches.

One good way to build loyalty in this buying environment is to build a new relationship
with customers using these new media. Crowdsourcing consumer views is increasingly
the 'new normal' in FMCG product development, and so the wishes of more consumers
are being incorporated into the production process. Also, many high street stores are
offering emailed receipts to customers to encourage a digital relationship and hoped-
for loyalty with customers while capturing their details.
What will be more significant: Natural-organic consumption or conscious
consumption?
Actually, I think that natural/organic consumption is just one part of the broader
picture of conscious consumption. Consumer, fanned by their online discussions and
their interaction with shared reviews of products and consumption experiences over
the internet, are discussing the value offered by brands and this includes a discussion
of a brand's 'green credentials' and the extent to which its goods are 'natural'. This
market is likely to continue to grow, particularly if prices can be kept down, for
instance if the items are private label ones.
In many cases, the consumer interest in organic food is motivated by safety concerns
and not green/environmental positions. A number of safety scandals particularly
pertaining to baby milk formula, have persuaded many consumers to buy more
expensive organic, imported brands - for instance Chinese consumers buying baby
formula from suppliers in Australia to feel reassured.

These trends perfectly describe market behaviour in a developed economy, but

how about in less developed countries?

I think these global consumer trends I've identified in the global consumer trends
report influence consumers everywhere. This is particularly because the internet is a
great leveller: digital life brings developments and consumer views from vloggers (video
bloggers), bloggers and news sites to onliners in various global regions
instantaneously. This facilitates the sharing of opinions, and consumer critiques of
brands (positive as well as negative) between consumers around the world. But also,
as I mentioned, consumers aspire to be global consumers, universal brands are still
perceived as an opportunity to be a world citizen by their consumers.

There are, of course, some differences. For instance, subscription services, which I
talked about when I discussed personalization, have been most prominent and
successful to date in developed markets but I think their growth in emerging markets is
just a question of time.

Which of these top 10 trends, do you consider will impact more on the beauty
industry?
I actually think all of these trends will impact consumers engaging with the beauty
industry. Perhaps the most relevant ones are ageing - a changing narrative,
extraordinary, faster shopping and the allure of authenticity - pursuit of the genuines
essential, even if it is contrived. "It took three hours of hair and make-up to get me
looking this real," actress Emily Blunt told British Vogue in November 2016. Also,
identity in flux is relevant - I mentioned that make-up tutorials on YouTube by men are
a trend, personalization - particularly with subscription services, privacy and security -
especially in the sense of protection from the elements, and of course wellness as
status symbol - so we have premium or more costly products with health benefits,

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exotic ingredients, added vitamins etc.

Do consumers look for new products that have not been seen before? are they
scare to try something totally different? How should we create needs for new
kind of food/drink products?
I think that today's consumers are much less brand-loyal than their parents. They are
often 'agnostic shoppers', willing to shop around for items offering them the best
value. The aspiration to consume global products, and the interest in the new that
digital life has schooled consumers into, means that more consumers are keen to be
early adopters of new products, particularly if they perceive them to offer value, and
not just in terms of price.

In my view, the best way to create needs for new products is to engage with current
consumer trends that allow brands to decode their consumers. For instance a new
drink targeting younger, millennial consumers, will be sensitive to the fact that they
are impressed by more gender-neutral messages, and put off my traditional forms of
marketing. Adding an aspect of social responsibility to the brand mix, and a presence
on social networking or a video blog will also add value for your potential consumer.
Do you feel that brand companies are filling in the void of social responsibility
that governments are ignoring? How do they maintain authenticity?

Most brands are aware that social responsibility matters to their existing and potential
consumers - in the consumer sensitivity to greenwashing for instance, or the interest
in transparency regarding the entire production process, and are therefore
incorporating it into their offerings, sometimes anticipating governmental policy.
Younger entrepreneurs, often working in start-ups are in tune with this sensibility
already.
Authenticity is a broad value, and it is apparent in things like an attention to heritage,
a respect for craftsmanship, an interest in the origin of products, an understanding
that 'the real' appeals in marketing and ad campaigns and these are all things that
brands can incorporate to add value.

People are considering their purpose, how what I do, somehow contributes.
What's the industry position on this?

Certainly, changemaker consumers that I discussed in my Top 10 global consumer

trends for 2016 report, particularly younger, newly-minted consumers, have a voice
that is as robust as ever. One has only to look at the huge, negative response to
'greenwashing' by brands such as Volkswagen, the degree of public giving in response
to crowdfunding campaigns for various causes, the interest in ethical labels, social
responsibility in business - something now regarded as commonplace and taught on
MBA programmes, the interest in socialimpact holidaying, ongoing cause-related
discussions among bloggers on the internet and political campaigns in broader areas
such as fashion etc.
How do we counter 'bad-science'? How can we help the consumer discern the
difference?
If we take this to man false brand claims, I think consumers, once they realise
inaccuracies, will 'out' brands amongst themselves on blogs and vlogs online. This is
apparent in cases of 'greenwashing' and the recent Volkswagen case comes to mind.

As I mention in my Top 10 global consumer trends for 2017 report, there is also a
certain ambivalence regarding the power of artificial intelligence to benefit us, as while

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new home technology is giving some consumers piece of mind and security, other
voices are starting to surface hidden dangers.
There is also some ambivalence as to whether artificial intelligence (AI) and tech are
panaceas. In mid-2016, physicist Professor Stephen Hawking warned that AI, disguised
as helpful digital assistants and self-driving vehicles, is gaining a foothold.In recent
months, device recalls have undermined consumer confidence in travelling with mobile
technology. Online security breaches have shaken consumer trust in technology even
as consumers appreciate that trade-offs are necessary between safeguarding personal
privacy and tracking down potential threats. In recognition of consumer concerns and
keen to steer developments along an ethical path, the non-profit OpenAI centre is
funded by Silicon Valley investors. Separately, five of the world's largest tech
companies including Amazon, Facebook and Microsoft have been meeting to discuss
how AI research stays focused on benefiting people. As so much of our lives are lived
via social media, it is unsurprising that social networking brands feel they have a role
to play in crises despite many consumers expressing concern about privacy.
Facebook's suicide prevention tool is being rolled out globally while the social media's
Safety Check feature lets users connect with friends and loved ones during a disaster
and track crisis updates.

I'm working for a pharmaceutical company (skincare), seeking to create new

cosmetics products, and wishing to incorporate medical aspects, but still
retaining the look of cosmetic product; can we use this advantage to bring in
more clients?

This is an interesting question, and I think this will depend on existing laws in particular
countries. We are already seeing this combination in a slew of anti-pollution skincare
products, for instance, such as Dior's One Essential City Defence SPA 50 and Este
Lauder's Clinique City Block line. Antipollution ingredients range from plant extracts and
vitamins to compounds with metal chelating or magnetic properties used to prevent
pollutants from interacting with the skin.
It is also apparent in interest in better-for-you products, or in beauty products with
added vitamins etc. to offer added value to the consumer. Certainly, at a time when
security and safety are consumer priorities in our volatile world, I think you may have
potential with this idea.
All natural, often organic food is increasingly preferred, but how much is the
customer ready to pay a premium for it?

I think that more consumers are keen on purchasing more natural and organic food, if
they can afford it. This interest is fuelled by trends like the allure of authenticity, but
in the case of food, often by consumer safety concerns too, following a number of
high-profile safety scandals and product recalls. If a natural/organic food product is
cheaper, for instance part of a retailer's own brand, all the better.

Consumers today are also savvier, helped by the ability to consult with fellow
consumers online and with their reviews. They will be critical if they suspect
'greenwashing' as shoppers are now scrutinizing the whole production process, not just
the finished product.
On Euromonitor's own database, Passport, the stats reflect the growing consumer
demand for natural/organic/free-from foods with forecasts showing a sustained
growing interest. For instance in 2016, growth in sales of organic food and beverages

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was 13.6% in the Asia Pacific, 6.8% in North America and 3.1% in Western Europe.

What is your opinion about exotic products like Kopi Luwak coffee?
I think that consumer interest in exotic products will increase, as people are keen on
trying new products, and enjoy being early adopters of them as interest in what new
start-ups have to offer on sites like Indiegogo and Kickstarter is high. I also think that
as shoppers today are less loyal to brands, and that as 'agnostic consumers', they flit
between different products in a bid to identify value that today means more than
price, so there is potential here! Also, if you can differentiate yourself from the
competition to show that the exotic product is beneficial to wellness and is safe and
authentic, all the better as these are key consumer values in 2017.

What kind of impact will there be for brands and retailers in the next couple of
years under the "Faster Shopping" trend?
This faster shopping trend means that brands have to satisfy increasingly impatient
consumers whom the digital world has schooled into becoming more impulsive
shoppers, in pursuit of immediate gratification. Existing and new products will also need
to be quickly attainable.
This trend will drive faster delivery options (often the same-day or even within an hour
or two) and greater use by brands of so-called beacon technology, which retailers can
use to alert consumers nearby via apps on their smartphones about special offers or
brand new products.
Speeded-up business models also mean a faster response to trends in terms of what
brands offer. In the fashion world, as I mentioned, this consumer impatience has
turned the traditional 'preview' system of designer fashion collections on its head. This
has pushed luxury clothing and accessory designers, for instance, to support "hot off
the runway" offers that are available to customers immediately. Faster convenience
also opens up opportunities for delivery of fresh food ingredients and ready meals.

The popularity of subscription services of various types is only set to increase in the
next couple of years. Subscription services deliver selections of products directly to
consumer homes. Consumers around the globe have really taken to considered picks of
everything from skincare products, pet treats, gaming and razors to meal kits with
pre-measured ingredients and recipes - many of which rely on fast delivery for
freshness.
What kind of role has internet retailing played when consumers are seeking
premium products and upgrading their shopping experience?
Internet retailing has brought global consumption to the national shopper. This means
that consumers of various ages, even younger 'consumers in training', can order
premium products and choose from what the world market has to offer, and often at
cheaper prices, despite various import taxes. As people often express themselves and
their identity via their consumption choices, internet retailing enhances this process
and the feeling of creative consumption. It has also speeded up the shopping process
and driven convenience and choice for consumers even when they are ordering from
local online retailers.
Important too, is that shopping via the internet also gives consumers a broader choice
of services. So for instance, the growing selection of premium holidays and spa
treatments; even international medical tourism options, can be reviewed before
purchase. With the post-purchase experience something that matters to consumers in

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2017, internet retailing opens up direct and often 24/7 two-way communications
channels between retailers and their existing and potential consumers for a more
satisfying and immediate customer journey.

How ready are FMCG companies to address the changing needs of consumers,
and what do these companies need to do to maintain/gain competitive edge in
providing consumer needs?
Brands vary in their interest in and ability to integrate consumer trends into their
business and those with greatest awareness apparent in everything from their product
packaging to advertising and marketing stand to gain. To give you a couple of
examples: The Ikea brand has shown itself keenly aware of the consumer interest in
authenticity. Its new "We Help You Make It" campaign tries to show "real people in real
living situations that anyone could relate to," according to Leslie Stone of ad agency
Ogilvy & Mather, who worked on the ads. The scenarios mirror how the American
dream has evolved to fit post-recession economic reality. One shows a family who
have given the bedroom over to the baby with the parents camping in the living room.

Mainstream brands now speak the language of wellness. Mondelez International boasts
that "We create snacks to bring people delicious moments of joy. To help consumers
on their well-being journey" - a key brand priority leading up to 2020.

With crowdsourcing consumer views increasingly the 'new normal' in FMCG product
development, the wishes of more consumers are being incorporated into the
production process. In the US, Columbia Crest offers a Crowdsourced Cabernet, a
project allowing fans to vote online on decisions like how long to age a wine.

This We before Me idea is interesting. Please elaborate a little more of this

trend
An aspiration towards altruism and a smaller ego, or 'we before me' prevails,
particularly among younger consumers. This peer-to-peer trend sees a new
cooperative paradigm among emerging artists and entrepreneurs. This compassion for
the world is a worldview that is most apparent in younger consumers, and is manifest
in a range of consumption choices, from buying 'pre-loved' items to the interest in
ethical labels and other changemaker shopping choices.

Trend 3 and Trend 7 - Extraordinary and Personalize it seem the same. Could
you please explain?
Consumer trends often overlap and can contradict each other! I think that in the
extraordinary trend, the emphasis is on 'outliers' who are beyond the average
consumer in temrs of size, height, food tolerance, music tastes etc. and that these
consumers are getting more vocal about their often unmet needs. Personalised
consumption is more about the expression of a touch of individuality in luxury, and
increasingly in mass consumption.

Watch the Top 10 Global Consumer Trends for 2017 webinar on demand here
& the Asia Pacific session here

See the complete Top 10 Global Consumer Trends For 2017 report here
See the complete Top 10 Global Consumer Trends for 2017 report in Mandarin
Chinese here
See the complete Top 10 Global Consumer Trends for 2017 report in Spanish
here

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Each month, from March 2017, I will be analysing how one of the top 10 global
consumer trends is evolving

Read Top 10 Global Consumer Trends for 2016 here

For further information please contact the author, Daphne Kasriel-Alexander, Consumer
Trends Consultant at Euromonitor International; daphne.kasriel@euromonitor.com or
connect with her on LinkedIn

Euromonitor International 2017

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