March Pick of the Latest Consumer Trends
Trends are opportunities. Spotting early adoption gives you the foresight to differentiate by leading early rather than following later.
Trend #1
Hyper-Fatigue
An attitudinal shift for 2023 - a radical re-focus on personal growth and a renewed dedication to nurturing mental wellness. (from Mintel)
Adopting a Me Mentality, consumers intend to place their well-being centre stage and seek brand support to do so.
This comes as more consumers are subject to hyper-fatigue and seeking new ways to cope with stress by addressing their mental health needs. Over half (55%) of UK consumers spend time outside to tackle stress, and 25% of those who took on a creative hobby last year did so as a form of creative expression.
‘In recent years, consumers have had a community mindset, putting their own needs on the back burner to prioritise public health and safety. People are now eager to re-focus on themselves,’ says Simon Moriarty, director of Mintel Trends EMEA.
“Moving from crisis to crisis, consumers are being stretched in many directions while being bombarded with media stories and digital content. The pandemic, rising cost of living, energy crisis, geopolitical unrest, and climate crisis are taking their toll, leaving consumers feeling overwhelmed.”
He continued. “In the next five years, expect brands to establish boundaries to bring order to the influx of information and initiatives to enable consumers to form healthy connections with resources in the technology, wellness and leisure spaces.” From adopting a synchronised approach to self-care to embracing the selfishness of taking much-needed ‘me time’, Mintel’s findings suggest Recuperative Living will be a prevalent consumer mindset in 2023.
So what?
With interest in introspection and personal growth continuing, consumers are more aware of their weak spots and the areas where they can make personal progress. Consumers will find meaning and solace reconnecting with their surroundings, their communities and with themselves. Charitable and community initiatives born out of inspiring brand collaborations will play an intrinsic part in countering fatigue levels, empowering people to take control, and helping them build a positive outlook amid financial adversity. Think about how your business can help these consumers to grow.
Trend #2
Consumers Want Local Shopping Options
Consumers are increasingly shopping locally. But they also are doing it online.
This 1-2 punch satisfies a need for community and a desire for efficiency, sustainability, and convenience.
Hyperlocal delivery is the delivery of goods from close proximity. This typically involves a physical retailer that also offers delivery to local consumers.
As more consumers are turning to digital-first shopping, there is a chance for retailers to satisfy the need for local convenience.
This first quarter of 2023 has seen e-commerce rates drop back to around 25 per cent of total retail volumes (by value). It’s the lowest proportion since 2020 and continues a downward trend line.
Trend #3
Slow Commerce
We tend to knee-jerk into the idea that Convenience is all about saving time. It’s a mistake. Convenience is elastic and, for consumers, means different things in different contexts. In Europe, retailers are meeting a new trend - Slow Commerce, spurning the trend for shorter, faster, more efficient shopping – the descriptive terms that have been the hallmarks of the modern consumer retail experience over the past decade or more – Slow Commerce is a growing phenomenon that is becoming known in Europe and also beginning to be seen in the US. Grocery chains in France and Holland are introducing checkout lanes reserved for customers who value slow, spurn sell-service machines and want a leisurely chat at the till.
So what?
It’s proved very successful, and the novelty of this slower approach to retail and the success it is having is making retailers across Europe think twice about whether it might be a competitive edge to attracting customers in other sectors. Of course, it’s especially attractive to older generations who seek convenience on their terms - but for many generational cohorts it’s also a nostalgic return to the former slower way of living in the slow lane.
Trend #4
We think Gen Z’ers as entirely digitally native. Yet there’s a pushback from their relentlessly digital world. In the US, Gen Z’ers are creating ‘digitally free’ communities that meet up outside to socialize. Digital devices are banned, and the focus is on conversation, new connections, and a pressure-free environment.
So what?
An awakening of the human senses is a natural progression from the pandemic and today’s speedy and always-on world. Consumers are increasingly seeking non-digital experiences whilst using online for convenience needs. E-commerce penetration has fallen back post-pandemic, and although now a permanent part of the commerce eco-system and will always be important, it has recently flat-lined whilst in-store rates have grown. One statistic that stands out: Whilst the use of online searches has increased, the purchase rate (continuing from a search to a buy) has fallen, with the consumer typically choosing to visit brick and mortar for the purchase.