At FREED, we firmly believe that every innovation strategy must be based on an understanding of macro and micro consumer trends that reveal people's behavior, as well as an analysis of the impact you expect these trends to have on your industry.
So, when we talk about insight-driven innovation, we emphasize the enormous importance of trend research in innovation management. That's why we've included an activity in our dynamics with clients that helps identify consumer trends and how companies are turning them into opportunities, while also encouraging the ideation of solutions and an innovation strategy.
A trend is a new manifestation of a fundamental human need, expressed through a new behavior, attitude, or expectation (Manson et. al., 2015., Trend Driven Innovation). For example, the COVID-19 pandemic is already generating trends that emerged from the need to adapt our personal and business relationships. But there are also others that were already changing our lives, the way we work, and how we interact with brands.
In this article and the next, we will review several consumer trends with the aim of helping you develop an innovation strategy. The idea is that you can answer questions such as:
- What are the local and global trends in your industry?
- Which ones are shaping people's behavior?
- How do they impact your business and industry?
- How do they impact your environment?
- What are the most significant changes that will occur in the medium and long term?
- What do these changes mean for your company and industry?
Experiencing a pandemic has disrupted our lives, leading us to adopt new habits and regulations post-COVID-19. This is how a new global economic paradigm emerges, based on the reduction of close contact in interactions, restrictions due to hygiene measures, and permanent changes in industries.
The physical and digital worlds will converge in the same space. For millennials, the threshold between physical and digital doesn't exist: 82% want to access products online and in-store. [1] They want to find digital-like experiences in physical environments: comparing prices globally, checking other users' opinions, and customizable processes. This implies shifting from fixed segmentation and service processes to contextual models.
Simultaneously, new commercial channels emerge with the growth of disruptive retail models and the convergence of sales and marketing environments. As consumers adopt digital at the same speed, traditional business models are changing, and more and more stages of the purchasing process are digital. Likewise, new purchasing processes are being created through messaging applications: 53% of respondents in 14 markets indicated that they would likely prefer to buy from companies they can communicate with via messages. [2]
3 billion people could have a mobile phone by the end of 2020, and it would probably be their only access to the internet. [3] That is, more and more people are entering the digital world skipping the computer stage, and it is increasingly common for them to start exploring the internet and a digital life directly through a smartphone. 1 out of 4 people only connect to the internet with their mobile phone. [4]
More and more people are discovering the convenience of shopping via mobile and prefer fast and fluid experiences when spending their money. Almost 1 in 4 shoppers in the United States use one-click checkout. [5] Additionally, 1 in 3 people in the United States want to make more purchases with their smartphone, but 1 in 2 complain that slow or poorly navigated sites are an obstacle. [6]
Consumers seek immediate gratification and fluid experiences, in line with their desires to dedicate more time to professional life and social relationships. Especially younger people need instant access to information and news on their mobile phones because they allow them to navigate websites and apps 41% faster than on a computer. [7]
Having internet access is valued and prioritized worldwide. In the United States, 50% of people would be willing to postpone vacations or cancel a dinner out to stay connected. [8] We have many channels to escape, imagine, explore, and create while traveling on the subway or being bored at home, thanks to 24/7 connectivity and digital experiences that blur the line between real and virtual.
Consumers will tend to spend their money on personalized products and experiences. This includes travelers, as in a survey conducted in the United States, approximately 1 in 2 stated that personalized ads save time and effort. [9]
The Internet of Things is already a reality, as more and more people connect their devices, appliances, and even cars. Almost half of virtual assistant users want their billing and purchases to be automatic. Customer loyalty will largely depend on this.
The trend is for the most used applications to increase their functionalities; therefore, it is possible that with a few, all user needs can be covered. It is common to hear people complaining that they have to delete applications to free up space on their devices.
Our predilection for video on mobile phones seems insatiable, reflected in the fact that one-third of smartphone buyers in the United States considered video to be the best platform for discovering new products. [10] Likewise, people will want to share collective and multisensory experiences online, and the way to participate in them is streaming video. 1 in 5 videos on Facebook is a live stream. [11]
Today's consumer is more informed and inquisitive. Conversations about user experience increased 5.2 times in one year among Facebook users in the United States. [12] Constant technological evolution is also changing the relationship people have with brands. That's why companies must constantly innovate to attract buyers who inquire and know what they want.
Our ability to manage different technological tools and integrate their use into daily life leads us to create and live experiences with other people, but remotely.
What do you think of these first 13 trends we've reviewed? Do you think they will affect your company and the industry it operates in?
You can now start analyzing and thinking about your innovation strategy, but remember that we also published a second part where we look at more consumer trends that will surely inspire you.
[1] Pastezeur, 2017.
[2] Nielsen, March 2016.
[3] Ericsson Mobility Report, June 2017.
[4] comScore, September 2017.
[5] Facebook, December 2016.
[6] Kantar, August 2016.
[7] Facebook, March 2017.
[8] comScore, March 2017.
[9] GfK, May 2016.
[10] Kantar, August 2016.
[11] Facebook, April 2017.
[12] Facebook, November 2016.
![Consumer Trends You Need to Know to Shape Your Innovation Strategy [Part 1]](/content-images/7ae55c52-tendencias-consumo.jpg)
![Consumer Trends You Need to Know to Shape Your Innovation Strategy [Part 2]](/content-images/91c568ee-tendencias-consumo-_personas.jpg)
