Predicting Consumer Trends 2023
At Magenta, we like to have our finger on the pulse and have identified key consumer trends to watch out for in 2023.
TRUST IS EVEN MORE IMPORTANT IN BUYING DECISIONS
Against a backdrop of fake news, extreme weather caused by climate change, a global pandemic and scepticism around the government’s ability to keep its promises, consumers are increasingly looking for brands that instil a sense of security and that they can trust.
Trust means authentic, consistent experiences with a brand and, when customers do reach out, positively solving their issues. In addition, a brand’s core values have become even more important in gaining and retaining customer loyalty. Consumers want to align their purchases with their principles and businesses are being called upon to do the right thing and have a firm stance on current world issues.
A REFOCUS ON CONNECTION AND BELONGING
With so much global uncertainty, there will be a greater movement to protect local resources and boost local businesses. Economic uncertainty and geopolitical disruption will motivate everyone to reconnect with their surroundings.
Consumers will look for brands that support local communities. The term ‘local’ has become associated with authenticity, creating connections, and social change. Whether it's a viral recipe or an influencer-curated thrift store, entrepreneurial behaviour is occurring on a smaller scale. As small businesses grow, brands can collaborate with local artists in order to support local communities. In turn, larger brands will need to adapt to cater to niche interests. Bigger brands can learn from small businesses who offer transparency through live Q&As, a peak behind the scenes, QR codes and publicly admitting when mistakes are made etc.
A GREATER RELIANCE ON TECHNOLOGY
The pandemic has fundamentally changed how consumers interact with brands. In a post-pandemic world, consumers are even more reliant on technology and people’s everyday lives and digital lives have become wholly intertwined. Consumers expect and want more online brand interaction in the future and brands need to prepare for the increasingly digital consumer.
In the coming few years there will be new areas of technological development. The metaverse is developing and will be used as an extension of the physical world. It will be a platform for escapism, a way to self-represent lived experiences. Brands have already started to buy digital lands to prop up their stores in the metaverse and the metaverse can be used by brands to launch new products, create an immersive experience and act as a space for consumers to come back to, fostering brand loyalty. For example, Adidas is launching an NFT collection with exclusive access to streetwear drops.
What is the Metaverse?
At its most basic level, the metaverse is an extension of our lives enhanced by technology. Currently, it exists as a series of distinct virtual worlds and experiences. In the future, however, the metaverse will expand into an interconnected and limitless world where our digital and physical lives fully converge.
A SPOTLIGHT ON THE ENVIRONMENT
Environmental concerns are growing, and people are becoming increasingly eco-conscious. In recent years, when making purchase decisions, consumers have become more mindful of overpackaging, non-recyclable packaging, overconsumption, waste and decarbonisation. Caring for the environment has become necessary rather than ‘nice to do’ and consumers are seeking out brands that have a positive impact on the planet and do not want to compromise on value.
In the search for value and sustainability, consumers are looking for products that can be repaired and refilled rather than replaced. Climate collapse has made sourcing responsible raw materials particularly important. Genuine positive action and proactivity has reached unprecedented new levels e.g., Patagonia and Faith in Nature citing nature as a shareholder in their business.
HEALTH AND WELLNESS:
Post-pandemic there is an increased focus on mental health and wellbeing with mental wellness becoming just as important as physical health. Consumers seek fulfilment from low intensity living rather than productivity, and mental health and wellbeing take centre stage in daily routines. This slow down also encompasses exercise as people move towards more restorative exercises rather than high intensity work outs. The future will see a loneliness pandemic as gaps between political beliefs, values, generations and regions become more prominent. This will encourage people to lean towards their communities for support as they are one of the few social structures that they trust. In response to the volatility of the modern world, there has been an increased interest in ancient rituals and local ingredients. Consumers are less willing to compromise on their mental health in a way they have done previously. The impact will be felt across all sectors causing employees to put less pressure on themselves (some have called it ‘the end of ambition’), young people will view domesticity as an aspirational life and in dating where people will consider a lengthened pre-commitment courtship.
VALUE:
Due to the rising cost-of-living and inflation, consumers are spending money more cautiously and being thrifty and sensible has become more admirable. However, perceptions of ‘value’ are slowly shifting. As opposed to being defined simply by price, consumers are looking for brands that can help them save while maintaining their standard of living. They are now looking for products with longevity and are more willing to compromise on brand choice for better value for money.
Value for money and the brand’s ethics and beliefs are the two most important factors when making purchasing decisions. Hence, brands must communicate both implicit and explicit value to their consumers. For example, Chinese designer brand Xiaozhu features cost of materials and manufacturing on its price tags and SmirkArt upcycles discarded makeup into eco-aware art materials for kids.
