January 22, 2018
Changing habits — how to win over the increasingly demanding, connected consumer
In the wake of rapid technological transformations and the ever-greater reach of digital media, retail has been undergoing profound changes worldwide. If knowing the customer well was important before, it has now become even more necessary — a matter of survival. Understanding these changes, spotting opportunities, and implementing actions to win over the consumer is the permanent challenge of retail companies and brands. In Brazil, beyond the strong influence of technological innovation, the political and economic landscape is also a decisive factor in the changing habits of a consumer who is more demanding, better informed, and more attentive to spending.
Uncertain of what lies ahead, the consumer holds back, avoids spending beyond what is needed, swaps preferred brands for cheaper ones or ones with added value, and invests only in what really matters to them. They do not want to give up their standard of living, but they must decide with balance in times of economic uncertainty. With this outlook, the consumer is reinventing themselves — and so are brands, to serve them according to their new desires.
What you want to say, what you believe in, and how you make the world better
According to TrendWatching, an agency that identifies and analyzes consumer trends in more than 180 countries, the future still belongs to those who believe in progress — and progress comes through innovation. In an interview with Endeavor Brasil, TrendWatching's trends strategist for South and Central America, Luciana Stein, listed five aspects that should serve, more than ever, as pillars for innovation: transparency, aspiration, positive impact, tolerance, and empowerment. She argues that, by drawing on one or more of these "truths," a company grounds its innovation in something meaningful and lasting.
Transparency — A Havas survey of more than 10,000 consumers worldwide found that, for 78% of them, it is "somewhat or very important for a company to be transparent," and 70% said they now "make a point of knowing more about the companies they buy from." The line between what is internal and external to the business is disappearing: internal processes, culture, and values are public property and part of the brand. This means speaking the consumers' language — fast, practical, informal — and connecting them to their peers, because they trust one another's information more than yours.
Aspiration — With the rise of social media, the pursuit of status grows and intensifies, alongside the emergence of a truly global middle class. More than the ambition to have, aspiration is about being: more beautiful, healthier, smarter, with more followers. How can you use your expertise to get closer to this consumer? Again, one answer is to connect your consumers to one another.
Positive impact — Acting with transparency and ethics, investing in innovation models that prioritize the environment and social well-being, is the path for companies seeking longevity. Creating positive impact and positive brand value is what places a brand in the future.
Tolerance — Of different social contexts, lifestyles, choices, and identities. Many brands have already noticed this and signal the change to their consumers through new products, campaigns, and advertising built on tolerance for differences.
Empowerment — According to Luciana Stein, this is the most far-reaching truth, as it encompasses the others. "We are in the middle of an epic power shift, moving from institutions — read government, media, and big companies — to the individual," she noted. "By putting one of these truths into practice, a company empowers individuals to take control of their lives, their shared spaces, and institutions, as well as their own future." And she concludes: "Which, in turn, is the best way to guarantee a bright future for your brand."
Source: Revista O Lojista, May/June 2017.