5 must reads for your Halloween weekend

We keep an ear to the ground for the interesting stats, insights and discussion points you need to feel in the know.

1. Making Halloween even scarier with AI?

Stuck for Halloween costume ideas? Looking for a terrifying music playlist? Want to find a creepy story to tell? Artificial intelligence has been used to create all three. “Let our algorithm choose your Halloween costume” is a prime example; an interactive feature from the New York Times which does what it says on the tin. History tells us that while new technologies may end the need for human involvement in some tasks, ranging from choosing your next Halloween costume to shortlisting job candidates, they can also create entirely new jobs and even industries. Rather than be worried about the rise of AI, businesses should embrace the opportunity technology brings, according to Nicola Morini Bianzino, EY Global Chief Client Technology Officer.?

Is AI the start of the truly creative human??

2. A fate that needs addressing?

As supermarkets become a sea of skulls, bright colors and glow-in-the-dark patterns, many of us turn a blind eye to the fate of this decorative packaging. Developing sustainable flexible plastic packaging is a particularly difficult issue with no single solution. Currently, the mechanical recycling systems that recycle rigid plastics are not able to cope with flexible plastic film. Innovation is required to identify either new materials (easy to recycle or ones that biodegrade), as well as new disposal methods (chemical recycling or composting at scale). All options also require new business models and infrastructure to support them, as well as consumer education. With so many complexities to understand, it is not surprising that for too long, the problem has sat in the ‘too difficult box’. But now, with pressure mounting from all sides, decisions need to be made to develop a transition strategy. EY leaders share what is critical to speed progress.?

?How can packaging keep things fresh without lasting a lifetime??

3. The rise of Buy-Now-Pay-Later

Holiday season is just around the corner. An increasing number of people rely on Buy Now Pay Later (BNPL) for their holiday season shopping; one in 10 in the UK. While BNPL was initially used for lower-cost fashion purchases, its application has since expanded and it’s one of many payment technologies that have exploded into the market in recent years. For those who haven’t heard of it, it’s a newer payment method that offers instant credit decisioning and payment options via instalments at the point of sale; BNPL is even available for essential purchases like healthcare and groceries, among others. So why are consumers opting for this method of payment? Well, it's convenient, affordable, and has a set payment schedule. Retailers use it too; by offering the BNPL credit option, merchants can increase sales, draw in customers, and even reduce cart abandonment. But, given the rising cost of capital and increased regulatory scrutiny, how will the BNPL model evolve in order to deliver sustained profitability??

How the rise of PayTech is reshaping the payments landscape ?

4. Skull candelabras, vampire gnomes and a wreath of eyeballs ?

Discount stores offer some of the most unique products at Halloween. The stigma attached to shopping at discount stores and/or purchasing off-brand products has dissipated, according to the latest EY US Future Consumer Index. Brand — or label — importance in overall purchase decisions dropped from 24% in February, to 17% in June. In fact, the importance of brand in purchasing decisions fell out of the top five most important purchase decisions between February and June. The biggest reason? The price increases most major brands took over the last few months to offset rising energy and transportation costs. Fifty-seven percent of consumers now say the price of a product drives their decision. What does this mean for retailers and consumer products? Pay attention to what sets you apart.?

Consumers expect disruption. Here’s how retailers can create stability in an unstable environment?

5. Drinkflation?

Buying drinks this weekend? Have you noticed the change in price? “Drinkflation” is fast becoming an - unwanted - industry buzzword, with eToro, a social trading platform, reporting a 62% two year rise in the cost of producing beer. This is against a backdrop of younger consumers drinking less worldwide; something that drove tax authorities in Japan to launch a campaign encouraging young adults to drink more alcohol, to offset falling tax revenues. But a glass that is half empty, is also half full. Alcohol drinks companies have proven to be one of the most crisis-proof categories in the market. History has taught us so; although many abstained during the great recession of 2008-2009, many also continued to drink, with emerging markets driving growth opportunities. Scott Rivello, EY Senior Global Client Service Partner, tells us why beverage companies shouldn’t call last orders just yet.?

The price of inflation for beverage companies?

If you do one thing:?

Focus on the present, not the ghosts of your past.?

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