How does the Gift Card Industry ensure it is keeping up with buying habits and channels? Dana Al Salem

Transcription

1 How does the Gift Card Industry ensure it is keeping up with buying habits and channels? Dana Al Salem

2 METATRENDS Put consumers at the heart of your business Dana Al Salem

3 WHY ARE METATRENDS IMPORTANT? Metatrends are long term shifts in behavior or attitude that have a global impact, across multiple industries and explain the rapid changes taking place. Metatrends help map the shifts occurring now and predict those of the future.

4 SO WHAT? Analyze your consumers changing environment Understand your consumers evolving needs & desires Predict future consumer demand

5 SO WHAT? Predicting future consumer demand = Innovation & Market leadership

6 SO WHAT? Predicting future consumer demand = Innovation & Market leadership PROACTIVE NOT REACTIVE

7 METATREND CATALYSTS What are the underlying forces that shape metatrends? What is the shifting environment surrounding consumers? How will future consumers be impacted by global and local change?

8 METATREND CATALYSTS SHIFTING ECONOMIC POWER POPULATION CHANGE TECHNOLOGY ENVIRONMENTAL SHIFTS CHANGING VALUES

9 ECONOMIC POWER POPULATIO N CHANGE TECHNOLOGY ENVIRON- MENTAL SHIFTS CHANGING VALUES KEY METATREND CATALYSTS SHIFTING ECONOMIC POWER The global economy witnessed a paradigm shift in 2008 when emerging markets overtook developed countries in their contribution to the global GDP in PPP terms. This growth is predicted to continue, with developing countries accounting for 2/3 of global output in Source: OECD/Euromonitor/Eurostat

10 ECONOMIC POWER POPULATIO N CHANGE TECHNOLOGY ENVIRON- MENTAL SHIFTS CHANGING VALUES KEY METATREND CATALYSTS POPULATION CHANGE As we advance to a global population of 8 billion, demographic shifts such as urbanization, migration, higher life expectancy, falling birth rates and the increasing number of elderly, are reshaping consumer lifestyles and purchasing decisions. Today, China is home to 1/5 th of the world s urban population. Meanwhile, fertility rates of developed countries, have fallen below 2.1 children born per female. Source: OECD/Euromonitor/Eurostat

11 ECONOMIC POWER POPULATIO N CHANGE TECHNOLOGY ENVIRON- MENTAL SHIFTS CHANGING VALUES KEY METATREND CATALYSTS TECHNOLOGY Technology plays a pivotal role in today s consumer decision-making. The continuous growth of mobile penetration and usage is a global phenomenon. Asia Pacific was home to more than half of the world s internet users in 2016 and 86% of the population in developed economies had mobile internet access. Source: OECD/Euromonitor/Eurostat

12 ECONOMIC POWER POPULATIO N CHANGE TECHNOLOGY ENVIRON- MENTAL SHIFTS CHANGING VALUES KEY METATREND CATALYSTS ENVIRONMENTAL SHIFTS Population expansion and emerging market growth has escalated global demand for natural resources. Increased electricity needs and CO2 emissions have inspired innovative solutions to tackle these issues. However, economic, environmental and geo political risks continue to grow. There is an increasing focus of governments, businesses and consumers on climate change, scarcity of resources and their participation towards solutions. Source: OECD/Euromonitor/Eurostat

13 ECONOMIC POWER POPULATIO N CHANGE TECHNOLOGY ENVIRON- MENTAL SHIFTS CHANGING VALUES KEY METATREND CATALYSTS CHANGING VALUES Ideological drivers also influence and shape metatrends. Beliefs about the surrounding world constantly evolve, shape priorities, modify consumer perceptions and motivations. Changing political trends, cultural factors and generation shifts impact community behavior. From government policies to purchasing decisions, changing values impact all levels of society. Source: OECD/Euromonitor/Eurostat

14 METATREND CATALYSTS SHIFTING ECONOMIC POWER POPULATION CHANGE TECHNOLOGY ENVIRONMENTAL SHIFTS CHANGING VALUES METATRENDS The catalysts shape global market trends

15 METATREND CATALYSTS SHIFTING ECONOMIC POWER POPULATION CHANGE TECHNOLOGY ENVIRONMENTAL SHIFTS CHANGING VALUES METATRENDS The catalysts shape global market trends Find the trends that apply to your industry

16 METATRENDS What are the key trends that are shaping consumers purchasing decisions? What are consumers shifting belief systems? What are the evolving consumers expectations and needs?

17 METATRENDS SHIFTING Globally applicable Long lasting, not a Fad Broad impact across diverse industries

18 SHIFTING In this era of globalization, it is key to spot opportunities that will arise outside of our familiar borders. As we reach maximum potential in developed countries, emerging markets may offer future growth. Brands have to adapt to the changing economic, demographic and tech factors. As an example, China offers rising population numbers, increasing disposable income and growing digital adoption, in mid sized cities. The city of Xiamen will triple its consumer market size, by 2030, making it larger than Rome, Munich or Barcelona. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

19 SHIFTING In this era of globalization, it is key to spot opportunities that will arise outside of our familiar borders. As we reach maximum potential in developed countries, emerging markets may offer future growth. Brands have to adapt to the changing economic, demographic and tech factors. As an example, China offers rising population numbers, increasing disposable income and growing digital adoption, in mid sized cities. The city of Xiamen will triple its consumer market size, by 2030, making it larger than Rome, Munich or Barcelona. MILLENIAL PERCEPTION WHATEVER. Source: OECD/Euromonitor/Eurostat

20 SHIFTING APPLIED In 2011, Nestlé tackled its expansion into China, by acquiring Hsu-Fu-Chi, a HK confectionary manufacturer with a large market share in the lower tiers of the Chinese market. In 2015, KitKat was introduced via this vehicle to the mid-size cities, dramatically increasing their audience size.

21 Healthy lifestyle habits are on the rise, as concerns over obesity, food sensitivity and disease increases. Consumers want a more holistic approach to wellness, including spiritual, mental and physical health. They are looking for personalized health, clean label and home tech solutions. This provides an opportunity for businesses to differentiate their brands, by integrating wellness into their products and services. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

22 Healthy lifestyle habits are on the rise, as concerns over obesity, food sensitivity and disease increases. Consumers want a more holistic approach to wellness, including spiritual, mental and physical health. They are looking for personalized health, clean label and home tech solutions. This provides an opportunity for businesses to differentiate their brands, by integrating wellness into their products and services. MILLENIAL PERCEPTION OMG! DIGITAL DETOX! Source: OECD/Euromonitor/Eurostat

23 APPLIED Going beyond the formulaic spa, the Hotel Intercontinental launched EVEN, to meet today s consumer needs. EVEN proposes an overall wellness approach to stress free travel. Healthy food, fitness centers, in-room exercise equipment and customizable mood lighting are available to guests. This personalized well being concept caters to the changing demands of travellers.

24 Prioritizing experiences over possessions is a growing trend, especially amongst the youth. The divergence occurred following the financial crisis, where spending on durable goods fell, whilst services continued to be in high demand. However, the consumer now requires more, from personalization to bespoke experiences. From fashion, to travel, to retail, the importance of the sales journey is becoming critical to consumers purchasing decisions. Brands are focusing increasingly, on creating these intimate experiences, lead by data insights. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

25 Prioritizing experiences over possessions is a growing trend, especially amongst the youth. The divergence occurred following the financial crisis, where spending on durable goods fell, whilst services continued to be in high demand. However, the consumer now requires more, from personalization to bespoke experiences. From fashion, to travel, to retail, the importance of the sales journey is becoming critical to consumers purchasing decisions. Brands are focusing increasingly, on creating these intimate experiences, lead by data insights. MILLENIAL PERCEPTION OWNERSHIP SO Source: OECD/Euromonitor/Eurostat

26 APPLIED Unilever created a pop up shop where customers can create their own Magnum, with a wide selection of ingredients to choose from. In creating their own ice cream, customers have a more immersive experience and emotionally connect with the brand. Further, they drive peer to peer marketing through sharing experiences on social media, becoming brand ambassadors for Unilever.

27 Consumers today are increasingly influenced, in their purchases, by brands that follow ethical codes of conduct. Concerns about environment, sustainability, ethical labor laws and community impact are examples of criteria a consumer will favor today. In response, companies are looking to integrate these values into their product offers and services. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

28 Consumers today are increasingly influenced, in their purchases, by brands that follow ethical codes of conduct. Concerns about environment, sustainability, ethical labor laws and community impact are examples of criteria a consumer will favor today. In response, companies are looking to integrate these values into their product offers and services. MILLENIAL PERCEPTION #CLEAN Source: OECD/Euromonitor/Eurostat

29 APPLIED Pinch of Colour is the first waterless beauty brand, offering cosmetics to an environmentally conscious audience. Part of the proceeds of sales are donated to support water charities and raise funds to improve access to safe, clean drinking water in third world countries. Transparency in the use of natural ingredients is a prominent part of their communication, which resonates well with consumers who demand traceability.

30 Connected consumers use a range of devices in order to experience and interact with digital content, as well as daily services. They connect to access education, entertainment, shopping and socializing. How consumers live, work, shop and play is being impacted by technology and access. Half of consumers declare they would be lost without this connectivity. With this growing audience, the user experience is now becoming critical as they demand speed, efficiency and convenience. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

31 Connected consumers use a range of devices in order to experience and interact with digital content, as well as daily services. They connect to access education, entertainment, shopping and socializing. How consumers live, work, shop and play is being impacted by technology and access. Half of consumers declare they would be lost without this connectivity. With this growing audience, the user experience is now becoming critical as they demand speed, efficiency and convenience. MILLENIAL PERCEPTION WAIT. YOU HAVE A LANDLINE?! Source: OECD/Euromonitor/Eurostat

32 APPLIED Netflix is a disruptor, evolving to meet changing consumer behaviors. Watch online, offline, on any device, the service allows flexibility and ease of use. Launched in 1997, Netflix was originally a mail order service, for movie fans willing to wait for the latest premieres. With a shift to online streaming and in-house productions, it has revolutionized the way viewers consume media, as well as shaken the traditional roles of production houses. There are 120M subscribers today and the next 100M are expected to come from India.

33 Whilst the middle classes in emerging markets expand, those in developed markets struggle to maintain their economic positions. Frugality, the quest for cost-saving alternatives and reducing waste are the behavioral trends we observe in this audience. As a result, discounters have seen their sales grow year on year, such as in groceries. To attract this audience, companies must emphasize quality, up-cycling and ease of maintenance. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

34 Whilst the middle classes in emerging markets expand, those in developed markets struggle to maintain their economic positions. Frugality, the quest for cost-saving alternatives and reducing waste are the behavioral trends we observe in this audience. As a result, discounters have seen their sales grow year on year, such as in groceries. To attract this audience, companies must emphasize quality, up-cycling and ease of maintenance. DISCOUNT. EW. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

35 APPLIED Gamestop, a video and gaming consumer electronics retailer, integrated a Buy>Sell>Trade model into their business proposition, which revolutionized their revenue model. Its core expertise now resides in this frugal based trading model, as opposed to game sales. About 25% of GameStop s revenue is estimated to come from sales of used electronic goods.

36 Consumer motivation behind spending on premium offers has shifted over the years. Premium offers are now attracting the discerning customer who will spend less on a service of lower practical or emotional value to them, whilst spending more on those that do matter. They view economizing, such as in travelling low cost, as a means to saving up to spend more elsewhere, for example a hotel. In an unstable economic climate, this premium purchasing behavior is often directed towards self improvement, healthier living, or simplifying their lives. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

37 Consumer motivation behind spending on premium offers has shifted over the years. Premium offers are now attracting the discerning customer who will spend less on a service of lower practical or emotional value to them, whilst spending more on those that do matter. They view economizing, such as in travelling low cost, as a means to saving up to spend more elsewhere, for example a hotel. In an unstable economic climate, this premium purchasing behavior is often directed towards self improvement, healthier living, or simplifying their lives. MILLENIAL PERCEPTION YOU GUYS ARE SO CUTE! Source: OECD/Euromonitor/Eurostat

38 APPLIED Freshpet offers fresh, refrigerated and free-of-preservatives dog food, targeting consumers willing to spend a little more on quality. Launched in 2006, Freshpet rapidly expanded and by 2016, accounted for 8% of the premium fresh dog food segment. The premium pet food market accounts for 61% of all pet food sales in the US. This underlines that a consumer is willing to pay a premium on certain services, despite economic downturns.

39 Consumers have a growing array of points of entry to make a purchase. They expect the brand experience to be holistic, bespoke and personalized to their needs. Consumers want to engage with brands which suit their lifestyles and belief systems. They seek a relationship, not a transaction. Brands, in turn, need to be everywhere, anytime, to meet these expectations. S-commerce, which includes social media, social messaging and chatbots are examples of new ways to tailor the sales experience to these needs. MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

40 Consumers have a growing array of points of entry to make a purchase. They expect the brand experience to be holistic, bespoke and personalized to their needs. Consumers want to engage with brands which suit their lifestyles and belief systems. They seek a relationship, not a transaction. Brands, in turn, need to be everywhere, anytime, to meet these expectations. S-commerce, which includes social media, social messaging and chatbots are examples of new ways to tailor the sales experience to these needs. YEAH. OBVIOUSLY MILLENIAL PERCEPTION Source: OECD/Euromonitor/Eurostat

41 APPLIED Taco Bell, in keeping with consumers demand for efficiency and the desire to be able to order whilst still browsing on social networks, launched TacoBot. TacoBot enables users to order, edit and pay for a food pickup, within a chat messaging window. The use of AI, artificial intelligence, enables the bot to make recommendations, additions or remove specific items from the order. Chat bots today are amongst the fastest growing tech solutions towards an integrated consumer experience.

42 So, what does understanding your consumer needs & desires look like?

43 So, what does understanding your consumer needs & desires look like?

44 METATREND TAKEAWAYS Analyze trends impacting your consumers Adapt your product to meet their changing needs Stay ahead of competitors by being innovative PROACTIVE NOT REACTIVE

45 METATRENDS Put consumers at the heart of your business

46 MILLENIAL PERCEPTION METATRENDS Put consumers at the heart of your business Dana Al Salem