Are Consumer Behaviours Evolving?
PartnerWise
Global specialists in Executive Recruitment and Headhunting across PE, Fashion, Retail, Sports, Travel, Beauty, & Media
There's no doubt about it: consumer behaviours have been constantly changing. What consumers want, where they want it, and when they want to access their products and services are constantly in flux.
Many of the consumer behaviour trends we see today were already established before the Global Pandemic, but the Pandemic put many of these trends into overdrive and we can expect these trends to sustain long-term. One thing that ties many of these trends together is the willingness to invest in products and services that save time and effort. Even if consumers have to pay a premium for it.
Another feature that many of these trends have in common is a renewed focus on customer experience. As consumers increasingly opt for digital channels for browsing and buying, brands need to make sure that their digital experience is on par with what someone would get in-store.
?Here below some examples of how consumer behaviours trends have been evolving:
1. Home is the hub
-???????Delivery. Over the last few years, we have seen a surge in products delivered to the home, including products that were traditionally only bought in-store. After the Global Pandemic consumers expect everything delivered to their doorstep, and companies that have pounced on this demand have seen rapid growth.
-???????Healthcare. Telemedicine usage surged during the pandemic however, doctor visits is just one of many areas of health and wellness that have shifted largely to the home. Another growing at-home health trend is at-home spa treatments. Consumers are also using more and more at-home kits to take skincare routines into their homes.
-???????Security. As people spend more time living and working at home, they realize that their home security may not be up to par, that they want to see their entire home exterior in real-time, and that their online shopping deliveries are at risk on the front steps.
2. Purchasing characteristics
-???????Increased demand for ethical and sustainable products. The vast majority of consumers consider sustainability and environmental responsibility to be important brand values. Harvard Business School?reports that?sustainable products have 5.6x higher average sales growth?compared to those that aren't marketed as sustainable. Sustainable products from ethical companies is one of the biggest consumer behaviour trends over the next years. Consumers not only want products that are sustainable, but they also want to buy from brands that act ethically. A recent survey found that?32% of US and UK consumers?would pay more for the same product if that product came from an ethical brand.
-???????From mass influencers to micro-influencers. Millennials and Gen Z consumers continue to rely on influencers for product discovery and for choosing which brands to trust. According to Influencer Marketing Hub, the influencer marketing market has increased year-over-year, reaching an?estimated $13.8 billion?in 2021. This is the reason why influencer marketing is still a growing marketing channel. However, the way consumers interact with and buy from influencers is changing. Specifically, consumers now seek out recommendations from social media influencers that may only have a small, niche audience. A study by Hype Auditor found that social accounts between 1k-5k followers get?2x more relative engagement?on each post than influencers with a larger following. Therefore, an increasing number of brands seek out "micro-influencers".
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-???????Subscription to monthly services. The monthly subscription industry has grown rapidly with?subscribers increasing year over year. Consumers are more open to subscribing to monthly products and services than ever before and there's now a wide range of monthly subscription products to choose from. Gaming industry giants are rolling out subscription gaming services, which are essentially the Netflix for video games. Other examples of this consumer trend include monthly boxes, streaming services and meditation apps.
3. Wellbeing
-???????Mindfulness market. The global meditation market is expected to grow from?$4.08 billion?in 2019 to?$9 billion?in 2027 (at a?10.4%?CAGR). Several apps have been developed to offer short, themed meditations for increasing concentration or tackling difficult emotions.
-???????Pet market. A growing piece of the industry is based on luxury products. For example, organic cat food and devices for?owners to video-call?their pets. No matter the product: if it will make their pets happier, there’s likely going to be a group of consumers who will buy it. Why are people spending so much on their pets now? Like many consumer behaviour trends over the past year, the answer is probably the pandemic and the increased time spent with their pets, but the trend has been growing for longer than that, though.
4. Payment options
-???????Multiple Payment Options. As people increasingly shop online, they also expect a wide selection of different payment options from online retailers. This includes offering different ways to pay (like accepting credit, debit and PayPal payments), but also the ability to defer payments over time. The "Buy Now, Pay Later" (BNPL) industry is growing alongside the general growth in eCommerce as a whole.
Are you experiencing a shift in behaviours from your customers??
Connect with?Salvatore Arico'
Salvatore Arico’ is the CEO of PW Boardroom, a brand subsidiary of PartnerWise and focussed on delivering global executive search and talent advisory solutions for C-Suite and Operating Boards for brands, retail and private equity.
Prior to taking the helm at PW Boardroom, he was the Chief Global Organization and Transformation Officer at Dufry?& Board member at Hellenic Duty Free Shops?and previously held positions at L'Oréal and Unilever.