More consumer trends from Insider Trends

My colleague Frances Taylor recently attended an Insider Trends workshop in the Business & IP Centre.

Although I wrote a report on a similar workshop, How to become a cutting-edge retailer, Francis has noted some additional useful points.

Predictions from Insider Trends

Key trend 1: The recession

§        With the new government, spending cuts and changes in policy, it’s entering a new phase.

§        Food and energy costs are rising.

§        There is worry amongst consumers about the recession, even if it does not affect them personally.

§        Consumers are making more considered choices and buying budget brands.

§        Premium or ‘added-value’ products are still doing well, but only if they have real benefits, e.g. helping the environment or offering customised services.

§        Consumers are spending more time at home on activities such as baking and gardening.  Now 1 in 5 consumers grow their own fruit and vegetables.

§        The community is important: consumers are buying locally and supporting green initiatives. There is concern about pesticides and additives in food, and distrust of large corporates.

Tips for marketing:

§        Be clear and transparent in your messages.

§        Avoid hidden costs.

§        Offer free trials, 30 day guarantees and testimonials.

§        Focus on benefits not features.

§        Create new benefits to stand out, e.g. same day delivery.

Key trend 2: Genuine individuals

§        By 2020 there will be more single people than married people in the UK.

§        By 2018, 18% of households will be ‘single person households’.

§        This is affecting buying habits, e.g. people are buying smaller portions of food such as smaller loaves of bread.

§        Living in urban areas and single-person households means that interior design has become more compact.

§        Co-creation has taken off i.e. consumers helping to shape the products they buy, such as the Nike ID trainers.

Key trend 3: Technology

§        The mobile internet is really taking off.

§        Mobile apps are a growth industry which will be worth over 50 billion by 2020.

§        Smart phone owners are buying on average one app per month.

§        Location-based apps are becoming popular such as Foursquare.

§        The ‘perpetual beta’ has become the norm.

§        There is more experimentation e.g. retail trucks and pop-up shops, secret restaurants, etc.

§        Consumers feel like there is too much choice which can be overwhelming.

§        There is a movement of consumers that are ‘unplugging’, which is also called ‘the slow movement’.  For example slow cooking, gardening, home brewing, etc.

§        Some technology solutions have hidden complexity, e.g. the iphone.  It can perform a lot of functions, but is very simple and intuitive to use.

§        QR codes are being used on products for more information, for example, to show the ingredients on McDonald’s products.

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