The future is bright, who knows? Would you like to find out? Let's go
Consumer Trends powering the decad to 2030

The future is bright, who knows? Would you like to find out? Let's go

Are you ready to fast forward to the year 2030 and witness the consumer trends that will revolutionize the industry? How and in what way, brands will be customer-centric, and what models can be applied– here is a deep dive. ?

1.????Conscious Convenient & Meaningful Consumerism

贝恩公司 predicts that by 2030, consumers will prioritize

1.????Convenience

2.????Experience

3.????Sustainability.

Emerging technologies such as AI, AR, and blockchain will become more prevalent, while environmental sustainability will become a crucial factor for consumers.

麦肯锡 believes that experiential spending will account for a whopping 55% of all luxury spending in 2030. This shift in consumer behavior will drive luxury brands to focus on creating unique experiences that align with their brand values, rather than solely selling products.

Interestingly, Patrick Chalhoub reiterated the same point at the recently concluded Investopia 2023 session on ‘Global Luxury Brands Key Trends and New Governance – ‘Luxury products were often viewed by their price tags; however, this no longer applies as consumers are much more sustainability-driven. People are now looking for products that have a purpose or greater meaning and it’s up to us to make sure that we have enough creativity, innovation, and agility to be meaningful to them.’

埃森哲 highlights the importance of personalization and customization in consumer preferences. With the rise of AI and machine learning, brands can tailor their products and services to each customer's needs and preferences, thereby creating stronger relationships and brand loyalty. ?

The personalization & customization will be paired with a heightened level of privacy that the consumers are demanding. Consumers are fine with seceding information, if it adds value to their customer journey, the options it provides, and how that data, serves them better.

In 2022-2023, Luxury brands are already adapting to current consumer trends, such as the demand for sustainable luxury products. Brands like Gucci , Prada Group , and Burberry have already announced plans to become more sustainable in their operations. Additionally, social media and influencer marketing are transforming the way luxury brands connect with younger consumers, with brands leveraging platforms like Instagram and TikTok to engage with their audience.

Virtual Influencers are on the rise and have million-plus followers, Maybelline, launched Virtual Influencer May already in March ’23 – the direction of owning, Virtual Influencer, seeped in your brand values, guidelines, in real-time engagement and doing virtual tours / meetups on Metaverse is enthralling – as is the data – it is yours.

Consumers want payment options that are invisible – integrated into the journey, to buy products that are meaningful and offer experiences that they believe in.

The article by 安永 ‘How retailers’ value propositions need to evolve for success’ highlights the three I’s.

·?????I want my life to be easier.

·?????I want my life to be improved.

·?????I want my life to be fulfilling.

‘And to serve them, retailers must deliver the right mix of invisibility (service so smooth and convenient that the consumer is barely aware of the transaction), indispensability (providing bundles of products that can solve more than one issue for consumers), and intimacy (providing experiences that truly resonate with your audience).? - https://www.ey.com/en_gl/consumer-products-retail/defining-the-future-of-retail

2.????Time is the new currency.

Brand Loyalty and CRM programs will see a resurgence with the Metaverse development. Here the fight is not for attention anymore, it will be about ‘time’ the new currency would be, for how long can you engage the customer, how can it add value to their life, and what benefits they get to enhance their well-being. These would be the key connectors. Reflect that on yourself and you will realize, you are always short on time – now think about your customer cohorts and the complexity you face. Every brand wants that slice of time to engage and fight for ‘mind share'. The rise of Metaverse and the ability to be meaningful with AI and data to benefit customers - will further refine the purpose, for the brands.

3.????Accountable Governance

Consider this – Tik Tok in China has a screen time limit for its users. The Tik Tok feed will freeze, allowing for its user base to recover, refresh and get back to it the same Tik Tok, does not do it for other parts of the world. Why? Government regulation.

https://apnews.com/article/tiktok-minors-social-media-china-time-limit-f735bd496ea3513abfc6480e5637abd8

‘Governments will need to bring in policies and regulations to help support consumer well-being.

EU's General Data Protection Regulation, or GDPR, companies targeting children could face greater requirements to protect their data in Australia, Brazil, Europe, India, South Korea, and the US.’

https://mlexmarketinsight.com/news-hub/editors-picks/area-of-expertise/data-privacy-and-security/around-the-globe,-childrens-privacy,-security-emerges-as-key-area-of-focus-for-regulators

Think about, how it makes parents feel. More comfortable or less. Think about privacy – if you need to have more security – here are three more steps to a secure online experience – will you be willing to if it provides convenience.

4.????Material Development to help brands lead sustainable fashion -

With the rise in sustainability as a core demand, we will also see a guardrail for Fast Fashion, we will see material development that is scalable, economic, and biodegradable. All these will also add to a better more balanced approach to consumption. Don’t think this is possible – Bamboo pajamas are on trend here are the other sustainable ones being worked on:

·?????Bamboo Fiber

·?????Seaweed Fiber

·?????Soybean Protein Fiber

·?????Organic Polymer feedstock

·?????PET Recycled Fiber

·?????Circulose

So, what does this mean for brands? In 2030, luxury brands must focus on creating experiences that align with their brand values while prioritizing sustainability and personalization. Brands that can successfully navigate these trends will stay ahead of the curve and continue to connect with consumers in a rapidly changing world. And consumers want brands to bring in these changes. Why? Because consumers believe that their favorite brands are powerful, at a global level, have a voice, and can bring these changes.

Can such a model work for brands? Here is a case that is presented –

The Collaboration between Bain & Co & Positive Luxury came up with what brands need to be doing based on the above-rising consumer priorities and termed it LuxCo – an ideal sentient model of what a luxury brand could be leading to 2030.

·?????Redefining purpose - “what is beautiful and good” ―both for people and the planet, in this case.

·?????Decoupling growth from volume - Focus on the “product life-cycle value” derived from reselling the same item to many customers, as well as the old benchmark of the lifetime value of individual customers.

·?????Making the supply chain fully transparent and traceable

·?????Maximizing environmental and social commitments

·?????Creating economic value from sustainability

·?????A holistic approach above all - key points:

  1. Some of the actions that brands can embark on today to prepare for this decade-long journey include:

2. Setting a bold strategic vision and truly redefining the company’s purpose.

3. Establish a transparent baseline for all key sustainability issues.

4. Define science-based targets and qualitative objectives for positive impact by 2030;

5. Design a portfolio of projects to realize the vision and objectives.

6. Identify shields and swords―defensive and offensive strengths.

7. Building commitment to sustainability among the leadership team; and

8. Aligning the organization and operating model to the new challenges.

https://www.bain.com/insights/luxco-2030-a-vision-of-sustainable-luxury/

Here again, the mind share for luxury brands is the top 7 to 10 brands that we keep seeing the content from – here is a context for you – to be in the top 100 luxury brands – a company needs to have a revenue base of at least USD 240 million. Of the top 100 luxury brands – the 15 companies with luxury goods sales of more than US$5 billion contributed more than two-thirds of the total Top 100 luxury goods sales. The 45 companies with sales of US$1 billion or less contributed only 6.7%.

?Due to this, the pace of sustainability, scalability, and introduction of materials that aid in circularity, will not all be equal. Will Shein’s explosive growth (projected GMV 2026 USD 80 bil) be checked by consumers fast enough? – the paradox is – the consumers are fueling it.

But let's be real, predicting the future is like playing a game of chance. We can only prepare ourselves for what might come, but who knows what surprises the future holds?

The best of the future predictions, prophets, and consultancies did not see the Pandemic coming – Neither did the finest CEOs. However, if we study trends, and build such an eventuality into the model, it will allow being able to at least have a future fighting chance for the brand to keep its trajectory going.

The vision will have to integrate all factors, regulations, and vendor partners to enforce a more sustainable model of operation that aids in circularity and addresses consumer needs. A more accountable and action-oriented UN Climate Change Conference, impactful decisions, and fast implementations - perhaps?

Consumers & Conscious Brands

On consumerism, there were 3.5 billion consumers in 2017 – in 2030 there will be 5.6 billion. What can brands offer them, that is sustainable, is affordable, offers extreme value, and supports their well-being? If the fight will be for market share, attention and time, and revenues without the ethical conundrum of making lives better and the planet sustainable – it would be a disaster indeed. ?

One thing is for sure, the world of consumerism is always evolving, and brands that can adapt to change will always come out on top. The rewards will be extreme loyalty, higher brand equity, and sharing a feeling of higher purpose – Is your brand ready to scale the trends in these 7 years?

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