Source: Non Wovens Industry, Lianna Albrizio, Assistant Editor
While birth rates fell due to the Covid-19 pandemic, curbing diapers’
and pull-up pants’ consumption growth in the developed world,
growing hygiene and product awareness as well as brand variety expansion
continue to drive per capita consumption in developing markets.
And, according to Liying Qian, senior analyst at Euromonitor
International, beginning this year onward,
birth rates are expected to increase given greater vaccination rates as
the world inches out of the Covid-19 pandemic shrinking fears of
hospital visits.
Nigeria, for example, is expected to see the largest absolute increase
in live births through 2025 further expanding the consumer pool for
diapers and pants,
which comprise a $47.3 billion market.
As birth rates are expected to pick up, diaper purchasers, which
comprise mostly of Millennial and Generation Z aged parents,
are seeking sustainable, quality ingredients.
Natalia Richer, diaper and absorbent hygiene products global consultant
at Diaper Testing International, says hemp fibers will be a
growing trend in absorbent hygiene and wipes with Bast Fibre
Technologies Inc. leading the transformation into sustainable nonwovens.
Bast Fibre—which designs plastic-free nonwoven products made from 100%
bast fiber—works with high-biomass annual crops and
steers clear of wood-pulp-derived sources to eliminate plastic pollution
and deforestation.
Plant-based ingredients such as bio-based plastics—or those made from
renewable resources like plant-based ethanol in lieu of non-renewable
petroleum
– is another growing trend in diapers. Other plant-based ingredients such
as viscose derived from bamboo trees and
cotton blends are weaving their way into the fabric of personal
absorbent hygiene in the years ahead.
In terms of absorbency, diaper manufacturers such as Ontex, Drylock, Abena and Essity are
including absorbent channels along the diaper core,
as reflected in the latest diaper launches in Europe and the U.S.
“As a
global consultant at Diaper Testing International, I’m able to see
thousands of diapers from around the world and have the unique position
to touch,
see and test all the newest diaper launches, including many prototypes
as well,” says Richer.
“The main trends I see in diaper design is a focus on absorbent
channels.
The result is typically diapers that are thinner, have better pad
integrity and help distribute urine quickly.”
Product Innovations
Pricie Hanna, managing partner with Price Hanna Consultants, concurs.
She said manufacturers are making diapers with variations on channels
and core designs to produce a more effective distribution and
acquisition of fluid and
dryer surfaces on the topsheet and longer-term absorption without the
addition of more raw materials.
“The most recent, very innovative example that we’ve seen is Ontex’s Climaflex,
which combines uniquely positioned channels more with dual-layer core
designs,”
she says. “We’re seeing a lot of people look at doing more with channels
and core layers to achieve highly effective systems for fast desorption
of fluid from the topsheet to maintain skin dryness fluid retention in
the core layers for up to 12-hour leakage protection.”
Ontex Group launched the Climaflex technology in early December, which
the manufacturer is touting as a “next-generation”
diaper core made extra thin and breathable as it is comfortable and
doesn’t sacrifice absorbency, which is advanced even with a fast-moving
baby.
Developed by Ontex engineers together with a research and development
team in Germany,
the Climaflex technology is first launched under Ontex’s Little Big
Change brand in Austria, Belgium, France, Germany, Luxemburg and The
Netherlands.
It will also be rolled out across retailer diaper brands.
According
to Annick De Poorter, executive vice president of innovation and
sustainability at Ontex,
baby skin comfort and ensuring protection against leaks are key purchase
drivers.
Qian of Euromonitor adds that they’ve seen a push for cleaner, more
sustainable ingredients over the past five years.
While these types of diapers are pricier,
Qian says kicking in a few extra dollars for top-quality diapers with
organic ingredients like shea butter to provide the baby’s delicate skin
with
additional moisture is worth it for both mother and child.
Such high-quality diapers, like from Procter & Gamble and Hello Bello,
works to prevent diaper rashes
– something caused by the more affordable counterparts –
which would add additional burdens for parents in terms of spending more
money on creams and giving their baby discomfort.
According to Euromonitor, increasingly hectic lifestyles compounded by
rapid urbanization continues to encourage convenience-craving
parents to turn to disposable diapers and pants for leak prevention and
potty training.
Specifically, swimming and nighttime protection resonate with
higher-income parents and encourage additional purchasing.
Ontex’s Climaflex technology, for example, enables heat to transfer
across the full surface of the diaper,
which ensures breathability and heat regulation, maintaining freshness
and dryness for the baby’s skin.
These diapers have a dual-layer core: the first layer attracts liquid
quickly while the second locks it in just as fast despite a highly
mobile baby.
What’s more, the diaper channel has been designed to handle areas where
liquid absorption and distribution is most needed, no matter the baby’s
gender.
From the central pee points and beyond, liquid can quickly access and
distribute through the branches of the dryness-providing channeled core.
And, despite, high saturation, Climaflex technology provides a lighter
core and smart bending lines making for a comfortable and secure fit for
the child.
Open tape
diapers comprised almost three quarters of the entire category’s total
sales in 2020 and will maintain that dominance, according to
Euromonitor’s analysis.
At this rate, by the end of 2025, open tape diapers are expected to
account for over two-thirds of total category sales.
The popularity of open tape diapers – prominent in Middle Eastern and
African countries, such as Nigeria, Kenya and Egypt –
are attributed to affordability and appeal to low-income consumers who
are making the switch from cloth diapers to disposable counterparts with
product education.
While open tape diapers dominate the baby diaper category from a sales
perspective,
major launches of new products such as plant-based Pull-Ups New Leaf
training paints from Kimberly-Clark and P&G’s Pampers Ninjamas Nighttime
Underwear are rising in popularity.
Similarly, Unicharm launched Lifree absorbent pants in Southeast Asia in
2020. The elastic waist band diapers which are in three sizes,
can be pulled up and down like underwear without sagging while providing
optimal leak protection.
Meanwhile, Pampers Pure Protection Hybrid diapers are part reusable,
part disposable. Pairing soft,
reusable cloth covers with disposable inserts featuring Pampers’ trusted
leak protection, wetness is locked in for up to 12 hours.
Parents can reuse the cloth diaper cover before washing, a move that may
save an average of 270 gallons of water per year versus traditional
cloth diapers,
according to statistics provided by Pampers.
And, a “one size fits most” design meant to grow with baby is paired with
an absorbent disposable insert that uses 25% less waste.
“Pampers Pure Protection Hybrid Diapers help keep baby’s skin dry and
healthy while producing less waste,” says Katie Stahlheber, P&G NA Baby
Care Communications.
“They are designed to help parents take ‘baby steps’ to better the world
their babies will grow up in.”
For its part, Peejama patented its washable training pants in early 2020
with the goal of providing pajama-like pants for overnight potty
training.
The pants are made of an absorbent core made of a bamboo-cotton blend.
The liners – which can absorb up to 10 ounces of fluid –
gives the wearer a wet sensation to prompt a bathroom trip.
“Consumers for baby diapers love the idea of cotton because they’ve
always had the perception that cotton is softer than anything else,”
notes Hanna.
“The idea of cotton and trust in its naturalness is very big and I think
we’ll see that continue.”
According to Passport, a global market information database by
Euromonitor International, the cloth format, while bubbling under,
is gaining traction among Millennial and Gen Z parents.
Consumer acceptance of Dorabe, the first domestic Vietnamese brand to
provide machine-washable cloth diapers,
has grown over the past few years due in part to influencers’
endorsements and promotions and has expanded into the U.S. and European
markets.
While appealing to lower income and eco-conscious parents (saving buyers
70% of diaper spending),
the inconvenience tied to washing them and hygiene shortcomings are
projected to limit popularity.
In other news, Disposable Soft Goods Japan celebrated its one-year
launch of Mirafeel diapers.
The revolutionary re-fastenable pants diaper with front re-closeable
seams enable the best fit for babies of all sizes.
Designed and manufactured in Japan and winners of the Good Design and
Good Parenting Awards in 2021,
Mirafeel is equipped with soft-pleated waist gathers and a
cushiony-soft, three-dimensional topsheet providing optimal comfort
against baby’s delicate skin.
Its proprietary thin dry absorbent core is one of the thinnest and most
efficient absorbent cores available.
What’s more, the diapers are designed by Japanese artists who also craft
the packaging design.
“Throughout our 48-year history we pride ourselves on being the first
mover in terms of product innovation and supporting the needs of
families,”
says DSG Japan founder Brandon Wang. “Our most recent venture in Japan
strikes at the heart of our beliefs – Japanese technological innovation
is amongst the best in the world,
and we are honoured to have been able to establish our facility here and
serve Japanese consumers over the past year.”
Fun Designs, Subscription Services and a New Diaper Plant
Another trend in diaper design is the embellishment of characters on the
diapers, which are meant to mimic traditional pyjamas.
Hello Bello,, a premium and affordable personal care company founded by
husband-and-wife team Dax Shepard and Kristen Bell,
also provides fun, whimsical and seasonal designs on their diapers.
The diapers, which company president Erica Buxton likens to a cloth-like
softness, are free of chloride and artificial fragrances.
This month, Hello Bello’s diapers will be designed with a limited-time
Dr. Seuss theme included with wipes in a bundle box during its monthly
promotion.
Subscription services, such as those offered by Hello Bello, are a
growing trend amongst other direct-to-consumer brands such as Nest
Diapers and Parasol Diapers, Qian says.
According to key findings from Euromonitor’s Passport, financial
uncertainty and price inflation precipitated by the ongoing Covid-19
pandemic
are driving consumers to seek value-centric products without
compromising on quality.
This has pushed companies to reassess the supply chain for cost
reductions and further articulate functionality-centric value
propositions that
resonate with childbearing Millennials and Generation Z-aged parents.
With the pandemic accelerating e-commerce growth, digital strategy is a
key component in a brand’s retail success.
As shoppers are attracted to a hassle-free shopping experience provided
on the web, companies are striving for a happy medium between
customizability and inclusivity.
“Hello Bello developed an ecosystem with baby care that branched into
baby wipes, cream, shampoos, beyond diapers.
Subscription services is a good bundling,” explains Qian. “Integration
services encourage consumers to shop other baby products.
It makes sense for companies. For consumers, it’s convenient to buy in
bulk.”
Hello Bello’s subscription box includes seven packs of diapers and three
packs of wipes with 20 designs from which to choose.
“It really goes back to our overall mission of not having to choose
between baby and budget,” explains Buxton.
“High premium products is, to me, why people trust our brand.”
In October, Hello Bello celebrated the grand opening of its first diaper
factory in Waco, TX.
The state-of-the-art, 312,000 square-feet integrated facility will
provide greater sustainability in both production and distribution,
best-in-class quality control of the supply chain and will keep costs
low for the consumer.
The new diaper distribution and manufacturing factory is an emblem of
the company’s multi-million-dollar investment in U.S. manufacturing,
which has resulted in the creation of nearly 200 new jobs for the
region.
Rethinking retail: the 3 trends you need to know
The past 12 months have seen unprecedented changes to the retail scene.
Marie McCarthy, regional sales director at
Centric Software, outlines three key trends that will define 2021.
It’s time to rethink retail. Many industry insiders – myself included –
view the current marketplace disruptions as an opportunity
for savvy fashion brands and retailers to implement exciting new digital
transformation strategies and not just survive,
but thrive as the retail landscape evolves.
Here are my thoughts on the three key tech strategies for retail success
in 2021 and how brands such as Superdry,
Gymshark and Helly Hansen are countering challenges with next-gen
digital tools.
Mobility and
connectivity
Workforces, as well as consumers, are becoming digitally native.
However,
despite the next generation of tech-savvy millennial leaders heading up
fashion and retail businesses,
many teams still struggle to work efficiently and remotely, relying on
outdated systems such as Excel spreadsheets,
PowerPoint presentations and countless emails.
At a time of uncertainty, it’s clear that digital collaboration
solutions have become enablers for business continuity and hold the key
to success.
Take contemporary retailer Superdry, which has saved
its design team four weeks a year with the simple press of a button.
By integrating the right cloud-based technology, teams can stay on task,
stay productive, collaborate and share data from anywhere at any time.
Adapting to
radically different buying behaviours
To say assortments have changed in the past 12 months would be an
understatement. Yet,
despite many businesses struggling to keep up with shifts in customer
buying habits,
rapidly growing UK-based sportswear brand Gymshark is
seeing huge benefits in its materials process,
with an estimated 30% increase in productivity thanks to new digital
tools that enable it to be more agile and reactive to market trends.
To respond to the move from offline to online purchasing, businesses
need to get creative with online tools such as virtual,
360° lookbooks, as well as made-to-order and custom-made services using
advanced software systems that
connect design and merchandising teams with manufacturing facilities.
Sustainability
and compliance
In 2021, consumers are more aware than ever of the environmental and
ethical implications of the products they buy.
As many designers have decided to slow down their show schedule and
produce fewer collections annually,
more customers are realising that ‘newness’ is no longer cool and are
demanding products that are as environmentally friendly as possible.
However, while people want to make responsible purchases, they don’t
always know how – or lack the right data to make an informed choice.
This is an opportunity for brands to make it simple for consumers to
make environmentally sound purchases by
increasing transparency and educating customers about their sustainable
business practices.
Digital transformation tools allow brands to reduce time, cost and
waste.
For example, 3D rendering technology allows outdoor retailer Helly
Hansen to create a digital
3D prototype in a matter of hours,
instead of waiting weeks for a physical sample.
The Power of
PLM
Product lifecycle management (PLM) is the backbone technology that
drives all product-related activities from concept to retail,
increasing connectivity, reactivity and sustainability.
Unifying data within one user-intuitive solution, which acts as a single
source of truth, allows teams to collaborate globally,
with fewer errors, resulting in more time saved, reduced time to market
and improved margins.
As the retail sector reaches a fork in the road, it is imperative for
businesses to equip themselves with
the most effective digital tools available in order to future-proof
their business and not only survive, but thrive in challenging times.
To discover more about how and why roles in the retail industry are
changing, download
the full report.
Marie McCarthy
is regional sales director (UK and South Africa) at Centric Software
McCarthy has 25 years’ experience in enterprise software solutions,
working with a range of large FTSE and IT startups
with a specific focus on emerging markets. During her 12 years’ working
in retail PLM,
she has been supporting leading brands and retailers to embark on their
digital transformation journey with Centric PLM.
She can be contacted at moc.erawtfoscirtnec@yhtraccmm
Centric Software
Centric Software provides a digital transformation platform for the most
prestigious names in fashion, retail, footwear, luxury,
outdoor and consumer goods including cosmetics, beauty, food and
beverage. Centric’s flagship product lifecycle management (PLM)
platform,
Centric 8, delivers enterprise-class merchandise planning, product
development, sourcing, quality and
collection management functionality tailored for fast-moving consumer
industries.
SOURCE: CENTRIC SOFTWARE: BIZ COMMUNITY
COVID-19 IMPACT ON TISSUE AND HYGIENE IN SOUTH AFRICA
Source: Euromonitor
Due to the outbreak of
COVID-19 in South Africa, the government implemented a national lockdown
period from 27 March 2020.
The lockdown restricted movement, with consumers asked to work and learn
from home, while non-essential retailers and foodservice establishments were
closed.
COVID-19 COUNTRY IMPACT
The initial hard
lockdown spanned 26 March to 30 April. During this time borders were closed
to tourists but not for the distribution of goods,
while interprovincial travel was banned, and domestic and international
tourist flights ceased.
COMPANY RESPONSE
Despite the outbreak
of COVID-19 in 2020, leading companies performed well and maintained a
stable market share.
At the same time, private label brands gained market share throughout 2020,
benefiting from the increased price-sensitivity
in the country and consumers demands for more affordable options.
RETAILING SHIFT
During 2020, there was
a substantial migration to e-commerce, which witnessed growth across all
categories.
The uplift in sales began during the lockdown period, when consumers were
the most fearful of leaving the household, and this continued throughout
2020.
WHAT NEXT FOR TISSUE AND HYGIENE?
Following the outbreak
of COVID-19 in 2020, the landscape is expected to stabilise in 2021-2022 and
beyond,
although demand for retail toilet paper is expected to remain higher than
pre-COVID-19 levels.
This will be the ongoing impact of COVID-19, with some consumers continuing
to spend more time at home,
combined with many companies adopting more remote working arrangements,
raising the demand for toilet paper within the household.
HYGIENE CONCERNS BOOST SALES, WHILE LACK OF SOCIALISING DECREASES DEMAND FOR COSMETIC WIPES
Sales of wipes
recorded value growth of 8% in 2020, with demand boosted during the first
weeks of lockdown,
as many consumers in South Africa took to panic buying and stockpiling
goods.
This was particularly the case for wipes, as interest in health and hygiene
was bolstered by the outbreak of COVID-19,
and consumers took to buying wipes to ensure the household remained a clean,
healthy environment.
Johnson & Johnson led
wipes in 2020, thanks to leading the biggest category of baby wipes.
Johnson & Johnson offers Johnson’s Baby to the landscape,
with the second-placed position going to Procter & Gamble (Pty) Ltd with
Pampers.
Private label retained
its strong position in wipes in 2020, with the outbreak of COVID-19
increasing consumers appreciation for products with an appealing
price-point.
With many consumers out of work due to COVID-19 restrictions, and others
working from home, price-sensitivity increased in the country.
TOILET CARE
In response to growing
concerns over hygiene as a result of COVID-19,
consumers are more aware of the importance of cleaning areas where germs are
more likely to spread,
such as toilets and kitchens, which was a boost for both categories.
At the same time, home seclusion means more time spent in households,
with consumers both feeling the importance and having the time to focus on
toilet care more often.
GROWTH LIMITED BY STRONG COMPETITION FROM CHEAPER BLEACH
Given a challenging
economic environment characterised by rising interest rates and limited
spending,
consumers opt for home care products that are more effective for the
household and offer value for money.
Multi-purpose products such as bleach are more effective for various
purposes in the household, including toilet care.
EXTENSIVE BRAND OFFERING ENSURES DUCK REMAINS IN POLE POSITION
SC Johnson & Son of South Africa remains the leading player in toilet care. Its success can be attributed to the Duck brand, which maintained the lead in rim blocks.
___________________________________________________________________________________________
SA Online Retail leaps to R30-billion
Source: World Wide Worx
Online retail in South
Africa more than doubled in just two years, thanks to the explosion in
demand for home deliveries brought about by the Covid-19 pandemic,
according to new research findings released today.
Online Retail in South
Africa 2021, a study conducted by World Wide Worx with the support of
Mastercard, Standard Bank and Platinum Seed,
reveals that the total growth for online retail in South Africa in 2020 came
to 66%, bringing the total of online retail in South Africa to
R30,2-billion.
“The most astonishing aspect
of this total is that it is more than double the R14,1-billion reached in
2018, in just two years,”
says World Wide Worx MD Arthur Goldstuck, principal analyst on the research
project.
“It is also 50% higher than the total forecast for 2020 three years ago,
when online retail in South Africa was expected to reach R20-billion by
2020.”
The figure comes into most
dramatic context when it is compared to traditional retail.
In 2018, the R14,1-billion in online retail represented 1.4% of total
retail, estimated at the time at R1,07-trillion.
Online had outpaced traditional retail growth throughout the past 20
years, since it came off a low base,
but traditional retail still grew every year until 2019. In 2020, it slumped
as a result of lockdown as well as economic stress.
According to preliminary
data from Stats SA shows, at current prices, total retail fell by 4.2%, to
R1,05-trillion at current prices.
The percentage of retail made up by online retail sales came to 2.8% –
exactly double the percentage for 2018.
“While equivalent growth
cannot be expected for 2021, it can be stated fairly confidently that it
will exceed the 30% growth of 2019,
when expansion was organic and a factor of the evolution of shopping habits
and retail strategies,” says Goldstuck.
“Those factors remain in place, along with the massive boost given to both
areas of evolution since the pandemic began.”
This means we can expect to
see total online retail sales of around R42-billion in 2021,
taking the online percentage of total retail to around 4%, assuming
traditional retail returns to its previous growth path.
The findings were not a
surprise. Already in November 2020, Mastercard released the findings of a
survey of 1,000 South African consumers,
which found that 68% of respondents were shopping more online since the
onset of the pandemic.
The categories experiencing the highest growth, aside from data and airtime top-up, were clothing, at 56%, and groceries, at 54%.
More than two-thirds – 68% –
of these consumers said they used the time during the pandemic as a positive
learning experience,
while the demand for online entertainment also surged, with 52% of
respondents saying they have spent more money on virtual experiences than
they did before the pandemic.
The majority had participated in video calls for work or leisure (88%),
three quarters (75%) had watched TV or films through an online subscription
service, and nearly half (47%) had taken part in a virtual cooking class.
“This trend appears to be
here to stay as 71% of respondents say they will continue to shop online
post-pandemic,” says Suzanne Morel,
Country Manager at Mastercard, South Africa.
“Now more than ever people need access to the digital economy and all of us
at Mastercard are constantly working to make the online
shopping experience more inclusive, simple, seamless and secure for
everyone, whether you’re shopping for essentials or experiences.”
The study is being released
in three phases, with the first focused on overall market size and online
consumer demographics.
The first report is based on data drawn from the TGI consumer survey of
16,000 participants, conducted by Ask Afrika over six months.
Subsequent phases of Online
Retail in South Africa 2021, to be released later in the year, will include
an analysis of the performance of online retailers,
based on a survey of a wide range of providers, while the third phase will
provide deep insights into global trends.
___________________________________________________________________________________________
SA private label growth continues unabated, totalling R71bn in annual sales
Source: Bizcommunity
South Africa's private label
(PL) sector has continued its upward trajectory despite Covid-19
restrictions
and an altered consumer reality driven by the pandemic.
A NielsenIQ analysis shows that the PL sector now commands 24.3% of total
basket* value sales in South Africa which
equates to R71bn in annual sales (12-months to end May 2021). This served to
cement PL’s growth path from 2019,
when its share of sales was 22.8% which rose to 23% by May 2020 and 24.6% by
May 2021.
These insights stem from a new NielsenIQ client report The State of Private
Label in South Africa, which provides a far-reaching
view of the evolution of private label in the local market based on trended
data and insights gathered over the last ten years.
NielsenIQ South Africa managing director Ged Nooy comments;
“There’s no doubt that a new generation of private label ‘house’ brands have
provided the impetus and created momentum
in the local retail sector during one of its toughest times and most
difficult trading periods.”
In terms of the origins of this uptick, Nooy stresses that the booster
effect of South Africa’s initial lockdowns in 2020 should not be
underestimated.
“For example, in March 2020 just before South Africa’s first and highest
Level 5 lockdown,
stockpiling saw private label growth soaring to a peak of 27.2% in March
2021 and this strong double-digit growth was maintained
throughout the second quarter of 2020. Interestingly, during this same time
frame, named brands saw a decline in sales,” he reports.
Drivers of success
The big question is why has PL succeeded against all the odds? A key
realisation is that these types of products are no
longer the 'no name' brands of the old, which were often perceived as
‘cheap’ and of inferior quality.
Nooy explains; “What we have seen is a diversification of PL products which
now range from entry-level offerings presenting high value for money,
to the middle of the range solid offerings, to a new generation of premium
products which represent both quality and value.
This stems from more investment in the sector which has created the depth
and the momentum that we see today.”
In terms of more functional reasons for PL’s growth; particularly during
South Africa’s lockdowns,
the NielsenIQ report found that continuity of supply was a key factor during
South Africa’s lockdown periods.
This was driven by consumers’ need for quick ‘in and out’ shopping
experiences, primarily due to health and safety concerns.
This concern also led to a sharp decline in the number of shopping trips,
which meant if products were out of stock,
a shopper would only return to a store in a week or a month.
Purchase opportunities were therefore far more limited and product
availability was vital.
Big stock-ups at each trip also saw an increase in the purchase of larger
big pack sizes once again to reduce the number of store visits.
Within this context, it was manufacturers' and retailers' ability to meet
this need,
via an increase in the distribution and assortment of private label
products, which ultimately led to the increase in value sales.
___________________________________________________________________________________________
Source: Euromonitor
The
recently released Euromonitor International Top 10 Global Consumer
Trends report shows that 2022 will see consumers taking
back the power they were forced to relinquish last year due to the pandemic
and forge their way forward according to their passions and values.
10 consumers trends
The report shows how shifting consumer behaviour is disrupting businesses
through 10 global trends.
Backup planners
Covid-19’s disruption of supply chains led to a shortage of products, but
Backup Planners took control to get ahead of the crowd.
Using subscription services or community group buying to secure deliveries,
and, when thwarted,
finding alternatives, or even delaying purchases or changing shopping
habits, this group has moved to the first in the queue.
Despite the stabilisation of supply chains later this year, new shopping
habits will dictate how Backup Planners discover and select products,
with localisation and optimisation becoming the norm. Companies and
distributors should use data to improve supply chain visibility,
hone operations and rethink investments.
Climate Changers
Covid-19 has been a catalyst in the transition towards a net-zero economy.
As concerns over climate change grow,
consumers are looking to brands to step with consumers taking action through
the products they purchase.
Climate Changers make more sustainable choices, and demand action and
transparency from brands
- there is no gap between climate awareness and intention to act.
Digital innovation is reshaping how retailers, manufacturers, and consumers
transition to a new era of environmental transparency.
Tech tools, such as digital product labelling and mobile tracking apps,
help consumers trace ethical claims, their carbon footprint and recycling
habits on their phones.
The largest spending cohort of the future, Millennials and Generation Z,
will use these tools to ensure minimal climate impact.
The more offerings that align with expectations of Climate Changers, the
more brands will see their products and services resonate.
Digital Seniors
The pandemic broadened older consumers’ minds to the benefits of the digital
world as they were forced online as the world shut down.
As a result this group is adopting more tech solutions to assist with their
daily lives, such as browsing and shopping online.
They embrace virtual solutions for socialising, health screenings, finances,
and learning.
TikTok is one platform these consumers use, because of their digitally
native grandchildren, influencing and empowering them to be on social media.
However even as older consumers embrace technology, human interactions will
remain a prevalent component of how they engage with brands.
Therefore, easy-to-use technology and seamless solutions combined with
face-to-face communication define the future of digital inclusion for
seniors.
Financial Aficionados
While uncertainty, instability and lockdowns caused certain consumers to
spend less and save more, others turned to apps to make smart money moves.
Financial Aficionados increased their financial literacy and found alternate
income streams, such as investing in the stock market and turning hobbies
into businesses.
Money management apps that are consumer-centric, digestible, educational and
simple stand to benefit in this era of financial democratisation.
Retailers and brands should collaborate with financial service corporations
to facilitate alternate forms of payment, such as cryptocurrencies or buy
now, pay later.
The potential impact of Financial Aficionados, from increasing their
investment rates and growing their financial acumen, cannot be
underestimated.
The Great Life Refresh
In 2015 only 12% of consumers prioritised time for themselves. In 2021 this
doubled to 24% as consumers took inventory of their
lives as the pandemic triggered consumers to change their values and
actively chart a new path forward.
The results are drastic personal changes and a collective reboot of values,
lifestyles and goals -
The Great Life Refresh. Brands that cater to The Great Life Refresh will be
viewed as partners, helping consumers adapt to a new way of life.
The Metaverse Movement
With strict social distancing requirements, consumers learned how to stay
connected, forming new online communities that offer a range of
interactivity,
from livestreaming to gaming.
As the digital world evolves beyond virtual hangouts to immersive 3D
realities, consumers are embracing these digital spaces to socialise with
communities.
As The Metaverse Movement continues to gain tech-savvy participants,
businesses must figure out how they can increase brand recognition and
generate revenue, as these immersive environments can drive e-commerce and
virtual product sales.
Pursuit of the Preloved
Consumers want to live sustainably and minimise environmental footprints. At
the same time,
affordability became a crucial factor during the unstable economic
situation.
Sustainability and individuality are removing the stigma associated with
second-hand shopping and driving peer-to-peer commerce.
The desire for exclusive or unique pieces are driving second-hand shopping
to the mainstream,
with vintage and slow fashion assisting this trend to flourish in the
apparel market.
It is the younger generations who are on the Pursuit of Preloved, searching
for one-of-a-kind products.
Influencing this trend is the plethora of apps available to sell and buy
second-hand and the desire for sustainable options.
Recommerce will become increasingly prevalent and cover more categories.
Pursuit of Preloved will inevitably improve sustainable production and
consumption and brand reputation as a result.
Rural Urbanites
Last year saw some consumers relocate from the cities to rural areas
temporarily and then permanently.
Others, not ready to give up urban life, still want the benefits of more
spacious housing and greener scenery.
The desire for green environments, and spacious and sustainable communities,
will dictate where Rural Urbanites choose to live.
Regardless of location, brands need to adjust their strategies to retain
customers by expanding brick-and-mortar outlets and services whilst
investing in e-commerce.
Self-love seekers
As life returns to normal consumers crave comfort and love. No longer in
survival mode,
these consumers are embracing the future and are proud of overcoming
hardships.
Self-Love Seekers prioritise their happiness, feeling comfortable in their
own skin and indulging in goods and services that
elevate their sense of self and align with their motivations and identities.
Offerings that help consumers feel fulfilled, positive and self-assured will
improve brand perception.
The Socialisation Paradox
The Socialisation Paradox defines the ways consumers are returning to their
usual routines.
Certain consumers acclimated to life in lockdown and will continue to make
purchases for at-home consumption.
Others were restless and are ready to participate in society again. Between
these two preferences are those who desire a form of normalcy -
willing to venture out for select activities, still cautious about their
health.
The Socialisation Paradox is a behavioural phase influencing consumer
habits.
Businesses should be receptive and provide a seamless experience with
innovative and adaptive solutions.
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