Thank you for being with me.
I hope that means I’m offering you something more than the usual playbooks and rote strategies that populate LinkedIn and various newsletters written by other experts.
(I’ve nothing against experts, but learnt a long time ago that you’re an expert when you’re wise enough to know what you still don’t know).
My purpose is to bring new thinking, perspectives and approaches to a complex discipline. And it needs it, because when we stop listening in our echo chambers and instead listen to consumers we see they are generally dissatisfied with their experiences, frustrated we don’t understand them, feel abused, and want something better than bland.
My mantra is Be Different and don’t copy.
Because amid the noise, it’s the only way to grab attention and engagement.
You won’t please everyone, but that’s good - pleasing everyone means dumbing down your power. Get it right, and you will please those you’ve identified as your brand archetypes. You have to be brave.
That’s my philosophy, too. Love me, hate me, but don’t not notice me.
I wish you a happy holiday, and that 2024 is your year.
A quick 2023 look-back
The Consumer Trends of 2023…..that mostly weren’t
2023 opened predicting a significant shift in key trends to dominate the year:
The E-commerce Explosion
Online shopping will surge, driven by convenience, expanded product offerings, and enhanced delivery services. E-commerce giants will expand their reach, and traditional retailers will embrace digital.
But e-commerce stalled, comparatively, whilst brick & mortar grew fast as a place for experiences. The e-commerce surge was in the trend for browsing online and then shopping in-store, with empty online baskets at checkout peaking at 70%-80 %s.
Score: 4/10
The Rise of the Subscription Economy
Consumers would embrace subscription-based services across various industries, from streaming to food delivery and meal kits. This trend reflects a desire for convenience, flexibility, and value for money.
Except..the economy got in the way, as did subscription fatigue. Streamers in particular had to start shifting their business models to offer adverts and cheaper pay options.
Score: 6/10
The Resurgence of Experiences
Consumers will seek out memorable experiences, such as travel, live entertainment, and culinary adventures. This shift highlights the importance of tangible experiences in an increasingly digital world.
Spot on. The experience and experiential economy surged this year, with brands such as Netflix getting in on the act with physical IRL locations to engage customers further, and more brands to follow.
Score: 10/10
The Growing Demand for Sustainability
Climate change and the environment will fuel consumer demand for sustainable products and services. Businesses will respond by incorporating recycled materials, eco-friendly packaging, and sustainable manufacturing practices.
Accurate (and predictable). Recycling has grown a lot, but there’s the caveat that consumers, when faced with the costs of sustainability, are not following through but still expecting the brand to.
Score: 8/10
The Continued Prominence of Technology
Technological advancements continued to reshape consumer experiences, with AI, AR, and virtual reality playing increasingly prominent roles. Brands leveraged these technologies to enhance personalization, customer service, and product offerings.
Advancements in LLMs like ChatGPT have overnight step-changed AI capabilities and over-shadowed the advancements mentioned above. Google’s Gemini (late 2023) is a further step improvement, capable of running on both the cloud and mobile devices and can understand input from text prompts, an image, audio or video. Q*, the rumoured OpenAI ‘next step’ again significantly ups the capability ante.
Amongst the many applications they will spawn, the biggest (but not loudly talked about ) is they are enabling personal AI assistants on the consumer’s ‘phone - probably now just 1-2 years away - which will change the consumer/brand relationship dramatically, and forever.
Score: 8/10 (ignoring ChatGPT)
The oddest consumer trends of 2023
Here are some of the weirdest trends that grabbed consumers attention:
Sleep Subscription Boxes
Stemming from the growing recognition of sleep's importance for overall well-being. These boxes deliver a curated selection of sleep-enhancing products, such as pillows, sheets, aromatherapy oils, and even sleep-inducing teas, to the customer's doorstep.
Personalised Soundscapes and NFT Music
Consumers are seeking more immersive and individualised experiences, leading to the rise of personalised soundscapes and NFT music. Brands are using AI and machine learning to create unique soundscapes based on individual preferences and moods. NFT (Non-Fungible Tokens) are also being used to represent ownership of digital music files, giving collectors a sense of exclusivity and value.
Anti-Dopamine Drinks and Apps:
Amidst concerns about the addictive nature of social media and technology, anti-dopamine drinks and apps have gained traction. These products aim to reduce the release of dopamine, a neurotransmitter associated with pleasure, to help users break away from digital distractions and focus on real-world activities.
Metaverse Fashion Weeks and Virtual Try-Ons
The metaverse is opening up new frontiers for fashion enthusiasts. Brands are showcasing their latest collections during virtual fashion weeks, allowing users to try on different outfits and accessories, blurring the lines between the physical and digital worlds.
Brands in 2023 that got it wrong
Some brands experienced reputational damage in missteps in their marketing, customer service, or ethical practices.
Balenciaga
In January 2023, Balenciaga launched a collection of intentionally destroyed sneakers, dubbed "Paris Sneakers," deliberately riddled with scuffs, rips, and stains. The collection sparked consumer outrage, who criticised the brand for promoting wasteful practices and exploiting the idea of "pre-distressed" fashion.
H&M
In April 2023, H&M faced backlash for a photo shoot featuring a young black boy wearing a hoodie with the words "Coolest Monkey in the Jungle" printed on it. The ad was condemned for promoting racial stereotypes and perpetuating harmful imagery. H&M apologized for the ad and removed it from circulation, but the controversy significantly damaged the brand's image among consumers of colour.
L Brands
In June 2023 the parent company of Victoria's Secret came under fire for its CEO's comments about the brand's target audience. Ed Razek, the now-former CEO, said that Victoria's Secret did not cater to "plus-size" or transgender models because the brand's customers were not interested in those types of individuals. Razek's remarks were widely condemned as discriminatory and out of touch.
Nestlé
In October 2023, Nestlé faced criticism for its use of child labour in cocoa production. The company was accused of failing to protect children working on cocoa farms from exploitation and abuse. Nestlé denied the allegations but pledged to improve its labour practices.
Nike
In December 2023, Nike was accused of using sweatshop labour in its overseas factories. The allegations stemmed from a report by the nonprofit group, Public Eye, which found that Nike's suppliers in Vietnam were using illegal child labour and violating labour laws. Nike responded by acknowledging the concerns and stating that it was taking steps to address the issues. However, the controversy tarnished the brand's reputation for ethical practices.
Brands who in 2023 enhanced their image
From Worst to First
For years, Wendy's (USA) had a reputation for being among the worst companies in terms of customer service. But in 2023, the company made a dramatic turnaround, becoming one of the most praised brands for its service. The change was attributed to a new CEO, a re-focus on employee training, and a new CX strategy.
Redefining Flight Delay Compensation
Delta Air Lines made headlines by announcing a new policy that would compensate passengers for flight delays of more than two hours. The policy was a major departure from the industry standard, which typically only provides compensation for cancellations. Delta's move follows on from its promise to put customers first.
Taking AppleCare to the Next Level
Apple, long known for its excellent service, took things to the next level with the introduction of its AppleCare+ for iPhone with Theft and Loss Protection service. The service provides coverage for theft, loss, and accidental damage to iPhones, and it also includes 24/7 customer support.
Increasing Sustainability and Social Responsibility
Patagonia made a bold move to put these values at the forefront of its customer service by announcing it would no longer replace worn-out clothing for free, encouraging customers to repair or recycle their items. The move was met with some criticism but also demonstrated Patagonia's commitment to sustainability and its willingness to put its values above profits.
Thank you too, Michael, I look forward to your posts they are different, with a sharp viewpoint no one else has. please keep doing it.
Great stuff, Michael. Keep it coming!