Global Market Trends 2020
As every year, I would like to share some of the trends that are characterizing global markets. Remember that market trends are changes in consumer behaviour Regal Marketing, attitudes and expectations in the long term and that can help us identify business opportunities.
For the year 2020 we have identified five trends that will impact business:
1. Customize-me
“One-size-fits-all approaches no longer work for some consumers who value personalized products and experiences.”
This trend reflects the consumer’s need to be recognized as unique and, as a consequence, to receive personalized products discovery gardens , services and experiences.
In this sense, the main expectations are related not only to the offer, but also to communications, recommendations based on the consumption pattern and to be recognized at the different points of contact.
Some of the most representative examples of this trend are platforms such as Netflix, but also traditional manufacturing companies in the clothing and footwear sector, such as Levis, adidas, among others.
Greater personalization requires access to customer information and, therefore, generates challenges related to user privacy.
Suggestions to tackle this trend in your company:
1. It develops a holistic vision of the client that allows it to be recognized at the different points of contact.
2. Start with personalizing communications and support.
3. Take digital transformation and the development of data management capabilities seriously.
2. Instantaneity
“Consumers value those rewarding experiences that provide instant satisfaction and their identity is defined by their consumption pattern”
This trend is characterized by the search for experiences and the relationship with those brands that reflect a lifestyle. The consumer wants the brand to respond quickly, if it is interactions on social media, or to send the products the same day, when they buy online.
In addition to practical solutions with minimal effort, the consumer wants immediate satisfaction and entertainment. Amazon Prime is an example that reflects very well how a company addresses this emerging behaviour, as well as many of the companies that intervene in the economy of platforms, such as Airbnb or Uber.
The biggest difficulty faced by brands in the face of this trend is customer loyalty, who seek to satisfy current needs.
Suggestions to tackle this trend in your company :
1. Identify clients’ “pain points” and design practical solutions.
2. Engage physical and virtual channels in creating fun experiences.
3. Evaluate the use of digital platforms for electronic commerce.
3. An Integrated World
“The borders of the physical and virtual world are erased to place technology as a powerful tool that facilitates experiences”
This trend is about how technology integrates the physical with the virtual. The main exponent of this trend is virtual reality and its use so that customers can make their purchasing decisions online with as much information as possible.
Thus, hotels like Marriott are using it to display their facilities and tourist attractions, or fashion companies like Zara create virtual changing rooms. But these are not the only sectors, the applications of technology to support the consumer in their journey are innumerable.
The main challenge for companies is to use technology as an end instead of using it as a tool for customer experiences.
Suggestions to tackle this trend in your company:
1. Identify inhibitors of point-of-sale purchases (physical and digital) and technological solutions that can minimize their impact on conversion.
2. Develop a digital presence that plays in teams with the stores (omnichannel).
3. Optimize audio and video content for searches and new platforms.
4. Zen consumerism
“Consumers increasingly aware of the impact of their consumption are concentrating on what they consider essential and are inclined towards responsible offers”
Consumers are increasingly aware and concerned about caring for the environment. This influences their purchasing decisions, preferring responsible brands and even leading them to buy used products in some categories. To some extent, there is a greater preference for use, rather than ownership.
Minimalism is one of their expressions, as well as the “Joy of Missing Out” or JOMO, referring to the enjoyment of what is lost, since they prefer to focus on a few things. Among the most striking examples are companies like TOMS and its “One for One” business model (for each product sold, one is given to a person in developing countries). Also, large fashion chains such as Macys consider selling used products or, like H&M, receive used clothing in a recycling program.
This trend invites to create experiences against a market that is inclined to buy fewer and fewer products, so its main challenge is to make Zen consumerism profitable.
Suggestions to tackle this trend in your company:
1. Connect through the why and not the traditional “manipulations”.
2. Clearly define your sustainability efforts and engage your audiences
3. Open spaces for local producers.
5. Scepticism
“Consumers take control and value their peers like never before, against brands that do not meet their expectations”
This trend shows a portion of consumers dissatisfied with brands and not very loyal to them. In this sense, they are willing to test with non-traditional providers and are influenced by their friends and relatives. Despite their skepticism towards brands, they are willing to participate in co-creation experiences with those that take them into account and show themselves authentic. Brands like McDonalds and Southwest are recognized success stories in the face of growing skepticism. The first of them for standing up to the countless criticisms received and the second for the transparency of its offer and conditions.
Faced with this trend, the biggest challenge for brands is to maintain an active presence on social media and learn to manage negative comments and transparency in their communications.
Suggestions to tackle this trend in your company :
1. Share information with customers and support them in their decision-making process.
2. Lean on testimonials and reviews as means to gain credibility among your clients.
3. Engage your clients in co-creative experiences, but above all: Listen and Recognize them
If you want to bring this content to your company in the form of a conference, or better yet, develop opportunities through a practical workshop, write to me at hola.
