Melanie is Mintel’s Southeast Asia Developments Analyst primarily based within the Kuala Lumpur workplace, specializing in how intriguing improvements and thought-provoking rules influence client behaviour within the area and vice versa.
World shutdowns. Recessionary situations. Environmental and political shifts. To not point out a worldwide pandemic. 2020 was a 12 months of a number of crises, with occasions shaking the world like no different in current reminiscence. Individuals (and types) have been pressured to adapt to new realities and methods of doing issues, forming many new habits that look set to final. These new habits can have profound implications on client spending and model exercise.
For 2021, Mintel has identified seven macro consumer trends which are set to impact global consumer markets. All of those traits are embedded inside Mintel’s system of the seven Pattern Drivers, which embrace Wellbeing, Environment, Rights, Experiences, Worth, Id and Know-how. We’ve centred our predictions across the Now (the following 12 months), the Subsequent (18 months+) and the Future (5 years+).
As shoppers redefine their priorities, listed here are the important thing client traits we imagine manufacturers and entrepreneurs might want to plan for in 2021 and past.
Well being Undefined
The pandemic brought about shoppers to redefine what wellbeing encompasses. Past the masks and different types of bodily safety from the virus, a higher sense of holistic wellbeing has come into focus. Individuals are looking for merchandise, providers and types that may assist them obtain these holistic wellbeing targets, whether or not these are optimising their temper or establishing wholesome monetary habits forward of a looming recession. Across Asia-Pacific, 76% of consumers say they are actively seeking ways to reduce stress. Broader, rising wellbeing motivations are placing the patron accountable for their very own private ‘why?’ versus counting on legacy motivators comparable to figuring out for the only real objective of shedding pounds. It is going to be value it for manufacturers to ask themselves how they will join with and help shoppers by way of the brand new, extra personalised wellbeing journeys they intend to take.
Central to that connection and help will probably be know-how. With the house being the centre of wellbeing within the years to come back, handy, seamless options that allow shoppers to measure and preserve wholesome life will probably be extremely wanted. Additional, into the long run, know-how will give shoppers instant entry to wellness info and help through AI-based providers. Mintel additionally predicts that the development of well being tech might make healthcare extra accessible for underserved client teams throughout the area.
Pushed by the Pattern Driver, ‘Environment,’ Sustainable Areas appears at how client consciousness of sustainability will evolve past recycling and carbon emissions right into a extra holistic, longer-term view. Hyper-localism has come to the forefront as shoppers’ idea of ‘native’ has shrunk, and so they more and more look to help their native communities and economies. Certainly, within the Asia-Pacific area, 66% of shoppers say that, on account of the COVID-19 pandemic, they’re prepared to purchase extra from native companies. From a deal with localism and supporting communities to nudging shoppers in the direction of incrementally higher habits that mix to nice impact, the vary of techniques manufacturers have at their disposal to create sustainable communities is widening and ever-evolving.
Past 2021, the local weather disaster will probably be unattainable to disregard, and shoppers will look to manufacturers to assist them dwell in an more and more unpredictable atmosphere. Shoppers will search climate-resilient tech options from manufacturers that permit them to be self-sufficient whereas cooperating with manufacturers domestically to cut back waste and construct extra equitable, moral economies. Within the longer-term, and as individuals dwell longer, their wants will change, as will their demand that model choices embrace extra localised city farming, respect sustainability, cut back waste and promote round economies.
The previous 12 months highlighted lots of the present social inequalities inside our respective nations and communities. Shoppers have discovered extra reference to their native communities, and are demanding that manufacturers be brokers of optimistic change for the advantage of the underserved and deprived. In Asia-Pacific, 3 in 5 shoppers say they’re ready to boycott corporations who behave unethically. Whereas shoppers have change into louder than ever, their voices aren’t at all times destructive. As an alternative, they wish to help the causes and types they imagine in and really feel serve their communities. Shoppers will proceed to name on companies and regulators to make actually systemic modifications, responding to group wants, with a way of urgency. That is already taking part in out (slowly however absolutely) in attention-grabbing methods throughout the area, with corporations publicly addressing their shortcomings and committing to tangible optimistic change.
Trying towards the following 18-24 months, many manufacturers will probably be beginning to see the outcomes of their initiatives, and it will set a precedent for guiding methods. Ethically-minded and purpose-driven enterprise philosophies will transfer into the mainstream. And in the long run, a way more collaborative partnership between shoppers and types will emerge, shifting away from the extra tension-filled occasions of the early 2020s.
Increase your hand if, like many people over the previous 12 months, you managed to slot in a fast getaway to a fantastic tropical island the place you possibly can accumulate shells, catch fish and go to buddies to your coronary heart’s content material…(I’m speaking about Animal Crossing when you haven’t already caught on). The sport proved extraordinarily widespread with shoppers of all ages and gaming ranges, as the necessity for some type of escapism soared throughout lockdown intervals. This 12 months, we’ll see gaming transfer away from being simply an leisure supply to being an integral house wherein shoppers of all ages and demographics type connections with their friends and most well-liked manufacturers. As such, manufacturers of all classes have the chance to succeed in the huge variety of shoppers spending their leisure time within the digital world by promoting inside video games or partnering with gaming corporations and eSports groups.
The mainstream 5G adoption set to happen within the years past 2021 will open new vistas in on-line and gamified experiences and occasions, into which manufacturers can additional embed their methods round leisure, working and studying. The elevated time spent within the digital world will even open up extra conversations round points like non-addictive recreation design as shoppers search a balanced strategy to digital leisure.
This 2021 development, pushed by the Worth Pattern Driver, focuses on how shoppers are returning to the necessities, looking for versatile possession and reframing what possession means. Shoppers are already tightening their purse strings for powerful occasions forward, and wish to save extra and spend much less in areas that don’t present worth. Throughout the Asia-Pacific area, 72% of shoppers say they’ve a funds they’re attempting to stay to as a lot as attainable. Whereas affordability and comfort will stay necessary, security, safety and sturdiness of products will even maintain a lot worth. It is going to be vital for manufacturers to ship and talk the tangible advantages that make their merchandise indispensable.
The uncertainty that’s more likely to persist within the coming years will lead shoppers to additional prioritise flexibility. Versatile rental phrases, cost choices and methods to acquire (moderately than essentially personal) items generally is a successful issue for shoppers who’re unable to plan too far forward. What comfort means to shoppers will even evolve. Quite than simply pace or portability, comfort might additionally imply serving to individuals plan forward, or giving them a lot simpler entry to beforehand unattainable services and products. Within the years to come back, manufacturers can discover alternatives inside this expanded definition of comfort.
The collective trauma skilled firstly of the pandemic will carry by way of the following 12 months, as shoppers proceed to see the results of the pandemic play out in very actual, instant methods. Shoppers will search manufacturers that may convey individuals collectively, whether or not digitally or not, to assist them overcome the psychological stresses of the pandemic. A lack of normality will even imply that customers will probably be on the lookout for new methods to have fun their heritage, values and life to really feel a way of reference to their communities. Manufacturers would do effectively to create initiatives that join with client identities and promote emotions of belonging and unity.
Years from now, this robust sense of group, born out of social isolation and the necessity to help one another, will evolve. Shoppers will proceed to hunt new types of connection not simply primarily based on their native identification, however moderately, primarily based on their pursuits, beliefs and targets. And as this strengthens additional into the long run, it might influence our instant environment, with metropolis areas being designed with communal versatility in thoughts.
Tech-based options have been immensely useful to each shoppers and types in the course of the COVID-19 outbreak. Nevertheless, many shoppers within the area nonetheless lack expertise and familiarity with totally different applied sciences, indicating that manufacturers have the chance to steer and create inclusive tech-based options to achieve elevated client adoption and favour. Individuals are additionally nonetheless discovering it troublesome to actualise the separation of house and work life, so in 2021, pre-emptive options that use (or don’t use) know-how to advertise psychological wellbeing will probably be welcome.
Within the coming years, know-how will change into extra ingrained in our day by day lives, and shoppers will change into extra anxious about their competitors with know-how. As know-how takes over extra roles sooner or later, companies should make a acutely aware alternative between balancing the promise of know-how and prioritising the distinctive issues that solely human interactions can ship. And whereas the promise of future city design appears extremely thrilling (autonomous fleets, flying automobiles perhaps?) the best space of concern for our future hyper-connected world will probably be privateness, each on-line and offline. Can manufacturers and shoppers finally work collectively to monetise and profit from sharing individuals’s knowledge?
The years forward will nonetheless be characterised by many uncertainties, however what Mintel is for certain of is that customers will proceed to adapt as they face new circumstances, so it will likely be the manufacturers that maintain up-to-date with these rising and evolving client traits, and innovate in tandem with these modifications, that can keep related and thrive lengthy after the pandemic is over.