Reducing carbon emissions, a shared goal
At Ontex we have created a “Trend Framework” to identify, monitor and analyze key trends we observe in consumers’ purchasing behavior.
Using a combination of macro and consumer data from a number of markets, we have mapped the 9 most relevant trends that are shaping the industry in key regions within Europe as well as US; but we have also looked at China for inspiration for trends potentially to come.
We can categorize all 9 trends into five pillars: well-being, surroundings, identity, technology and value.
Well-being
Health and wellness have evolved from reaction to pro-action. Consumers are focused on maintaining optimal physical and emotional wellbeing, and want brands and retailers to support their efforts. Here we observe 3 trends:
GOOD FOR ME
This is all about natural products that are safe and better for myself and my beloved ones. Consumers adhering to this trend tend to seek pure and natural products that are free from harmful chemicals.
In today’s fast-moving world, consumers are hungry for information. This is driving interest in personal safety & improvement, and brands can play an active role in helping consumers navigate through what’s real and what’s not. Transparent communication and links to recognized health agencies can help to promote brand authenticity and, ultimately, loyalty.
COMFORT MYSELF
Consumers are invested in their own sense of comfort & security, looking for products and services that provide a little indulgence and escapism. This is underlined by the growing interest in experiences & stress management.
The “lipstick effect” is taking hold once more. As the world appears to lurch from one crisis to another, consumers are looking for products and experiences that enrich their everyday lives, splurging on small affordable luxuries such as make-up and premium versions of basic goods.
This offers potential to own label brands, which can market higher-level product lines as affordable luxuries for only a little extra expenditure.
ENHANCE MY WELL-BEING
All about active treatments and functionalities that do more for your well-being beyond the pure product functionality. Caring for body & soul as consumers seek to manage their physical and emotional health.
There is a general growing recognition of the need to reduce stress. Consumer brands must take a more nuanced, positive stance regarding well-being, helping consumers to blend it effortlessly into their lives.
Surroundings
Consumers are increasingly taking ownership of their impact on the planet and expect businesses to behave equally, if not more, responsibly. Companies must integrate sustainable practices into every part of their operations, and do so in a meaningful and provable way.
We summarise this pillar in one key trend:
SAFE FOR THE PLANET
Consumers are demanding sustainable product experiences with an ecological footprint and are rewarding companies that put these values high on their priority list.
Three quarters or more consumers in our market say they actively try to minimize their impact on the environment. However, while sustainable behaviours remains an important behaviour – or aspiration – its significance has waned a little as financial and political factors have captured consumers’ attention. Many consumers believe it is the responsibility of governments and the industry to drive sustainability, and brands will have to show that they are playing their part with their own behaviour.
Value
Value is about more than affordability. Yes, that matters to consumers, but what matters even more is that products and services provide pay-off in terms of performance and emotion. Three key trends dominate this pillar:
FUNDAMENTALS FIRST
Fundamentals is about conscious consumption. Some consumers in Western markets are feeling the squeeze when it comes to personal and household finances and are taking a more considered approach to their expenditure and consumption, focusing on the essential attributes.
This means companies need to continue working on the improvement of existing and fundamental benefits, keeping in mind that what the core promises are and prioritizing doing the job first.
MAKE IT EASY
For busy consumers, convenience is now a prerequisite to run their lives. They want convenience without compromise.
Consumers have many draws on their attention, so they welcome anything that makes their lives more straightforward. This can be particularly attractive in items such as diapers and pads that can be put on and removed with one hand, while parents are on the move.
Convenience can also ease the pain of disposal, with collection services and clear instructions regarding how to safely dispose of used products.
SENSING IS BELIEVING
Our five basic senses (touch, smell, see, hear, taste) are what connects us to the outside world
What you see is what you get and if I can't sense it, why should I believe it?
Capturing a consumers’ senses is a good way at capturing their attention and providing an engaging product experience they’ll want to replicate. This experientiality is becoming more important as consumers return to stores and demand more from their products.
Sensoriality also makes valuable connections with product benefits as well as attributes.
Identity
The demand for personalised products and services is growing stronger. Increasingly, consumers are looking for products that flex to their needs rather than conform to the product’s predetermined benefits. This is represented by the following key trend:
EXPRESS MYSELF
This is about personalized designs and experiences. In today’s consumption arena every consumer wants to feel unique and be served as such. However, self expression and individuality remain relatively low considerations for consumers in France, Germany and the UK, but is viewed as paramount in China.
Brands must be aware of these factors and if desired, help consumers to reflect their identity and values in their purchases.
Technology
Digital technology is empowering consumers to monitor their activities and take charge of their health. The recent pandemic has proved that far from dehumanising society, connectivity has the power to bring people together and enrich their lives. We refer to this with the trend:
CONNECT & TRACK
Connectivity is the new normal; used to understand our behaviors and improve products & services. However, the Connect & Track trend remains very niche in all markets, although its growing in significance as consumers become increasingly reliant on their smartphones, tablets & computers.
Testing kits and apps are helping consumers to take more control of their lives and their products. And communities based on common interests and shared values are hosted on digital platforms, which offers many opportunities for brands & retailers to approach consumers.
Learning about all these trends is only the first step. But every market, industry and brand is different so, further analysis case per case is needed in order to see which trends are more relevant for you and how to implement these insights. Don’t hesitate to contact your Ontex representative to discuss this further. And stay tuned for more information on how these trends evolve over time!