Demography and consumers - HUMANE · © EuromonitorInternational 9 Multiple generations but...

HUMANE

Demography and Consumers

Alison Angus – Head of Lifestyles

OVERVIEW

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§ About Euromonitor International

§ Consumer landscape

§ Population change and shifting values impact consumption behaviour

§ Conclusion

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Euromonitor International network and coverage

DEMOGRAPHY AND CONSUMERS

Consumer Landscape

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Consumer landscape in 2019 – a global viewDEMOGRAPHY AND CONSUMERS

SourceEuromonitorInternationalfromnationalstatistics/Eurostat/UN/OECD/ITUNote:Dataisforecastandinconstant2017prices,fixedUS$exchangerates:

INTERNET USERS (BILLION)3.9World Digital Statistics: 2019

PERCENTAGE OFPOPULATION ONLINE

50.8PENETRATION RATES OF MOBILEINTERNET

78.10.0 2.5 5.0

Alcoholic Bevs &Tobacco

Leisure &Recreation

Household Gds &Servs

Clothing & Footwear

Housing

Health Gds & MedServs

Hotels & Catering

Misc. Goods &Services

Transpor t

Communications

Food & Non-AlcBevs

Education

Annual real growth, %

GGlobal Population by Age Group: 2019

Babies/Infants (0-2) Kids (3-7)Tweens (8-12) Teens (13-17)Young Adul ts (18-29) Middle Youth (30-44)Mid-Li fers (45-64) Later Lifers (65-79)

Global Consumer Expenditure Growth by Category: 2019

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0.0 1.0 2.0

Food & Non-Alcoholic Bevs

Clothing &Footwear

Alcoholic Bevs &Tobacco

Household Gds &Svces

Transport

Housing

Leisure &Recreation

Misc Gds andSvces

Communications

Hotels & Catering

Education

Health Gds & MedSvces

Western Europe Consumer Expenditure Growth by

Category: 2019

Consumer landscape in 2019 – Western EuropeDEMOGRAPHY AND CONSUMERS

Source:EuromonitorInternationalfromnationalstatistics/Eurostat/UN/OECD/ITUNote: Data is forecast and in constant 2017 prices, fixed US$ exchange rates

INTERNET USERS (MILLION)402Western Europe Digital Statistics: 2019

PERCENTAGE OFPOPULATION ONLINE

79.4PENETRATION RATES OF MOBILEINTERNET

94.9

Western Europe Population by Age Group: 2019

Babies/Infants (0-2) Kids (3-7) Tweens (8-12)

Teens (13-17) Young Adults (18-29) Middle Youth (30-44)

Mid-Lifers (45-64) Later Lifers (65-79)

Annualrealgrowth,%

Population change and shifting values impact consumption behaviour

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European consumers values and priorities are changingDEMOGRAPHY AND CONSUMERS

0

20

40

60

80

Lookingtosimplifylife

Willingtospendmoneytosavetime

Spendmoneyonexperiences

Expecttobeself-employedatsomepoint

Expecttolive/workabroad

ImportantthatpeoplethinkIamdoingwell

Makeadifferencetotheworld

Positiveimpactonenvironment

BuyfromcompaniesandbrandsIcantrust

GenerationX GenerationZ Millennials

%of respondentsEuromonitorlifestylesurvey2017

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Multiple generations but blurring values and prioritiesDEMOGRAPHY AND CONSUMERS

Gen ZHere now

§ Future market drivers

§ Digital natives§ Individualistic§ Mindful§ Socially

responsible§ Long term

value and investment

Millennials still around

§ Driven change§ Tech savvy§ Confident§ Innovative§ Global citizens§ Authentic§ Experiential§ Value for

money

AlphaComing soon

§ Future challengers

§ Hyperconnected virtual lives

§ Self-sufficient§ Emotional§ Diverse global

thinkers§ Limited attention

span

50+Coming back

§ Transforming§ Leveraging

technology§ Strong and

Independent§ Collaborative§ Conventional§ Ageless§ Experiencing

more

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§ Expanding wealthy young population in the East§ but increasing competition from

investment in region§ tightening of visa conditions in some

markets

Growing wealthy middle class in the East, but need to engageDEMOGRAPHY AND CONSUMERS

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Uganda

Tanzania

Angola

Cameroon

Malaysia

Nigeria

PakistanKenya

Ethiopia

SouthAfrica

Asia/Africa countries with fastest growing Middle Class households 2019 - 2030 CAGR

%

2019-2030CAGR%

To win:• Flexible solutions • Cross region collaboration• Engage audience through emotional

connections

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§Demand more social responsibility and authenticity

§Evolving values force companies to review how they connect with consumers

§Engagement with brands is more emotional

§Brands aligning values with those of today’s consumers

§And connecting via most popular social media platforms

Ben & Jerry’s: brand values resonate with consumersDEMOGRAPHY AND CONSUMERS

54%ofEuromonitor’slifestylesurveyfeeltheycanmakeadifferenceintheworld

throughtheirchoices

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Ageing but age agnostic population DEMOGRAPHY AND CONSUMERS

§ Ageing population that feel, behave and want to be treated as younger

§ Not passively ageing -enjoyment of life is priority

§ Demographic segmentation out, behavioural segmentation in

0204060

China Ind

iaJapan

Russia

Brazil

Mexico USA Uni

ted…

Global

50+theFastestGrowingPopulationSegment

%of50+totalpopulation2018 %of50+totalpopulation2025

Ageless lifestyles drive demand for lifelong learning § Staying relevant driving demand for reskilling

§ Second careerists§ Self development

§ Expanding interests and experiences

Source:EuromonitorInternational

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Apple – lifelong brand loveDEMOGRAPHY AND CONSUMERS

§Focus on customer experience

§Various touchpoints – products, website, ads, app store, retail

§Stores build community and lifelong learning

§Brand as the ultimate lifestyle choice

Image source: Apple

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Creative curation for uniqueness and improved experiences

DEMOGRAPHY AND CONSUMERS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Generation Z

Millennials

Generation X

Baby Boomers

Desire to be distinct from others, 2017

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

Source:Euromonitorlifestylessurvey2017

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LOLI Beauty: Personalised experience through product creation DEMOGRAPHY AND CONSUMERS

§Subscription box service that gives consumers the tools and sustainably-sourced ingredients to mix their own personalised and pure skin care recipes in their own home – Sustainable DIY beauty

“Recipes” guide choices but give consumers a sense of control; a known ingredient list satisfies consumers’ desire to be informed.

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§Time critical consumers demand frictionless experiences, any time, any place, any where

§Technological advancements enabling multi-platform access and delivery solutions

§Digital strategy not enough – think post digital

Multi-platform digital future to expand audienceDEMOGRAPHY AND CONSUMERS

Internet

Mobileapp&superapps

AR/VR

Automation

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§Changing store set up –Automation / Digitising§Little interaction with

people§Appealing to younger

generations

§Not all consumers want the same experience§Drive through§In store, personal§Home delivery§Book a table

McDonalds: Giving consumers ‘the way they want to shop’ DEMOGRAPHY AND CONSUMERS

Conclusion

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Mirroring the needs of consumer priorities and the future work placeDEMOGRAPHY AND CONSUMERS

Transferable skills for all

Curated and flexible solutions

Collaborative and engaging approach

Shared resources

Entrepreneurial incubator hubs

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§The gig economy§Death of the “job for life”§Trade-off between freedom and

security§Two-fold impact on business:1. Changes in consumption and

social trends 2. Implications on managing the

workforce

§No longer just for entrepreneurs and start ups – collaboration with major corporations

§Attract top talent§Innovation spaces§Monitor competition§Find acquisition targets

WeWork – Shared working and incubator spacesDEMOGRAPHY AND CONSUMERS

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ExperienceMore• Rejectingtraditionalmaterialisticvalues,choosinghappinessandstatusthroughexperiencesinstead.

ShiftingMarketFrontiers• Globalisationbringsaboutchangeindevelopingcountries,alteringconsumers’values,whichwillshapethefutureforshiftingmarketfrontiers.

HealthyLiving• Consumerstakingcontroloftheirhealthandwellbeing,adoptingamoreconsciousandpreventativeapproach.

EthicalLiving• Consumersvoicingtheirconcernsaboutethicalissues,demandingbusinessesandgovernmentstakeactiontopushsustainabilityandbringaboutchange.

MiddleClassRetreat•Middleclassconsumersre-assessingtheirpriorities,rejectingconspicuousconsumptionandfocusingmoreonvalueformoney,optimisingtimeandspendingonmakingthemostoflife.

Premiumisation• Theneedtobebetter,leadmoresimplelifestyles,stayhealthyandclaimbacktimeisdrivingthepremiumisationtrend.

ShoppingReinvented• Consumerslookingforseamlessshopping,convenienceandimmersiveexperiences,definingthefutureofhowconsumersshop.

ConnectedConsumers• Demandforsimplifyinglives,immediategratificationandsavingtimeshapesconnectedconsumers.

How changing values generates and shapes megatrendsDEMOGRAPHY AND CONSUMERS

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Flexibility Accessibility Affordability

Getting away from a “one size fits all approach”DEMOGRAPHY AND CONSUMERS

Brands embracing consumer-centric worldHigher education must embrace learner-centric worldConsumers determine what they consume and howStudents determine what they learn and how

Thank you AlisonAngus– HeadofLifestyles

Alison.Angus@euromonitor.com@EMI_AliAngus