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The Emergence of the New Consumer 2010

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Page 1: F3 new consumer

The Emergence of the New Consumer

2010

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The Emergence of the New Consumer

In-depth online survey conducted by

Market Probe International Oct.–Nov. 2009

5,700 adults in 7 markets

Extensive secondary research in

2010 into trends driving the category

U.S.n=1,500

Braziln=700

Francen=700

Chinan=700

Japann=700

Netherlandsn=700

U.K.n=700

About the Study

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The Emergence of the New Consumer

The global economic downturn hasn’t

only touched our wallets

Around 8 in 10 consumers declare we

have been experiencing not only a financial crisis but also a crisis of values and way

of life

The post-recession consumer

is challenging society to change

Are brands responding to

these new concerns?

Source: Euro RSCG, 2009

Introduction

Source: TNS Sofres—New Forms of Capitalism, January 2009

Would you say the current crisis...

11

12

18

25

87

87

79

74

0 20 40 60 80 100 120

U.K.

Spain

Germany

France

Concerns only the economic and financial sphereAlso calls into question our values and way of life

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The Emergence of the New Consumer

Throughout 20th century, developed world saw rapid growth of a culture of hyperconsumerism

Shopping became less about necessities than about entertainment,

pleasure, status, indulgence, and excess

Accumulation—and personal debt—rose to levels never before seen

Even before “Great Recession”

that began in 2007, consumers were showing signs of unhappiness with status quo

Movement toward more conscious—and conscientious—consumption (e.g., buying Green, Fair Trade)

Growing allure of simplicity and a return to basics

Pushback against financial promiscuity and mindless excess

The recent economic downturn exacerbated these shifts, giving people a chance to step off the consumption treadmill and reassess how they are living—and spending

A Seismic Shift: All Maxed Out?

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The Emergence of the New Consumer

I. Three Keys to Understanding the

Relationship Between Consumers

and Society in the Post-crisis World

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The Emergence of the New Consumer

Three keys to understanding the relationship between consumers and society in the post-crisis world

1. A HIGH SENSITIVITY TO RISK

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The Emergence of the New Consumer

The past decade has brought an increasing sense of uncertainty and anxiety caused by a raft of issues, including the global downturn, financial scandals, terrorism, perceptions of government incompetence in the face of national and international crises…

In general, I feel more anxious than I did a few years ago

54 50 62 29 57 46 77

Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients

of Euro RSCG Worldwide through the Knowledge Exchange

Economies are on the rebound, but anxiety remains high

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The Emergence of the New Consumer

Signs of optimism apparent only in the Netherlands and among mainstream consumers in China—the latter explained by the relatively good health of the Chinese economy and the confidence of a country on the ascendancy (pride in 2010 Expo Shanghai and other achievements)

What the crisis has changed is our confidence in the future, our sense of being prepared to handle whatever may come

I worry about my future or my family’s future more than I used to

57 74 65 34 49 40 65

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The Emergence of the New Consumer

Western countries are more worried than China and Japan—buffeted by concerns over high unemployment, housing foreclosures, fluctuating costs of food, energy, and other basic needs

Even if fears turn out to be unwarranted, they are deeply seated and affecting current decisions

Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring

I have become more worried about losing my job or having someone else in household lose job

43 50 52 32 40 22 28

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The Emergence of the New Consumer

Countries accustomed to higher standards of living have more to lose

Fear of future loss adds anxiety to current purchases

Hungry Planet by Peter Menzel

Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring

I have become more worried about losing my job or having someone else in household lose job

56 52 56 34 50 32 34

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The Emergence of the New Consumer

We often say modern society is “short-sighted”

As anxieties mount, more and more citizens in mature markets are looking far into the future with concern

Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring

I have become more worried

about not having enough money to retire on

51 45 59 27 46 21 27

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The Emergence of the New Consumer

The average American household’s debt

$117,951

Combined amount of personal debt held by Americans

(which is about the GDP of England)

$2 trillion

Amount U.S. owed China as of May 2009

$772 billion

Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring

I have become more worried about getting out of debt

44 47 33 22 34 15 14

Source: www.visualeconomics.com/the-american-family-financial-turmoil_2010-04-29/

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The Emergence of the New Consumer

Different countries, different realities, different fears

Anxiety rooted not so much in today’s reality as in imagining what tomorrow might bring

I have become more worried about not being able to afford health insurance/medical bills

48 51 35 27 20 22 31

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The Emergence of the New Consumer

Consequence:

Reluctance to engage in long-term decisions (What if I choose wrong?)

Risk avoidance becomes the main driver of decisions

Brands that manage this risk will appeal to consumers

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The Emergence of the New Consumer

Three keys to understanding the relationship between consumers and society in the post-crisis world

2. CONSUMER DEPRESSION ECHOES SOCIETAL WOES

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The Emergence of the New Consumer

“Compared with our grandparents, today’s young adults have grown up with much more affluence, slightly less happiness and much greater risk of depression and assorted social pathology. Our becoming much better off over the last four decades has not been accompanied by one iota of increased subjective well-being.”—Hope College psychologist David G. Myers

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The Emergence of the New Consumer

Paradox of owning more and having less

Increased focus on happiness index as measure of national achievement

Lands of plenty haven’t delivered the happiness promised

I am actively trying to figure out what makes me happy

48 75 53 33 42 64 41

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The Emergence of the New Consumer

Stress of modern living taking toll on mental health

I worry about the mental health of my partner/spouse

22 61 46 16 22 44 36

I worry about my own mental health

31 69 46 18 26 41 45

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The Emergence of the New Consumer

We’re seeing dissatisfaction on both a personal and societal level—especially in western cultures but evident everywhere

Widespread dissatisfaction with modern life

In many ways, I think society is moving in the wrong direction

66 61 70 53 63 39 49

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The Emergence of the New Consumer

“The problem with consumerism is that it strives not just to be part of our lives—it should be that—

but strives to be everything, to occupy all our time and space and push out other things. In this sense, it is both homogenizing and totalizing.”—Political theorist Benjamin Barber in U.S. News & World Report

Society is perceived as shallow…

Sense that we have lost sight of what truly matters in our endless quest to consume more and struggle less

People growing increasingly weary of “dumbing

down”

of conversations and culture, lack of substantive interactions

I worry society has become too shallow, focusing on things that don’t really matter

79 66 77 62 75 53 61

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The Emergence of the New Consumer

Consumers have lost confidence in society, seeing people as somehow lesser beings than in generations past

Sense that people take path of least resistance—have become less willing and able to exert themselves physically or mentally

Sentiment is especially strong in U.S. and U.K.

…lazy…

As a society, we have gotten intellectually lazy

76 52 61 48 73 50 43

As a society, we have gotten physically lazy

85 56 66 55 82 59 47

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The Emergence of the New Consumer

This intellectual sloth is accompanied by increased intolerance toward points of view that differ from one’s own

… and unable to work together for change

Godwin’s Law“As an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1.”

I worry we are losing our ability to engage in civil debate; people aren’t willing to consider others’

points of view

62 64 64 46 61 49 46

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The Emergence of the New Consumer

In light of this individual and collective downturn, prosumers are experimenting with two kinds of reaction:

Desiring a reconnection with nature

Seeking zero risk

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The Emergence of the New Consumer

As our world becomes increasingly artificial, we in turn feel less “real”

Nature symbolizes ties to a more authentic past, as well as shelter, a place to escape the bustling world, a place to rejuvenate and relax

Surge in home vegetable and fruit gardens signifies this quest to reconnect, eco-consciousness, and a desire for self-sufficiency and personal empowerment (Whatever happens, I can feed

my family)

The aspiration of reconnecting with the natural world

I worry that people have become too disconnected from the natural world

60 64 50 43 56 70 65

In recent years, I have started or thought about starting a home vegetable/fruit garden

43 55 46 16 45 32 29

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The Emergence of the New Consumer

Search term: “vegetable gardening”

The aspiration of reconnecting with the natural world

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The Emergence of the New Consumer

The 19th century witnessed two revolutions that profoundly changed western social structures. The boom in industry brought society into the

era of machines, while positivism glorified science and mathematical truth at the expense of spirituality. Many citizens strongly rejected this society of progress. Rejection came in two guises:

1.

The highlighting of dreamlike symbolism, of morbid spiritualism

(as seen in the dark paintings of Gustave

Moreau, for example). This was accompanied by a new prominence of the dandy figure, celebrated by Baudelaire and embodied by Des Esseintes

de Huysmans, who scandalized the whole of Europe with his novel

A Rebours

(1884). By his very essence, the dandy is content with a form of weakness and indecision. In reaction to this, politicians and healthy-living doctors worried that this “weakness”

and “sloth”

would affect both the mind and body of the Bohemian and diffuse throughout the whole of society, rendering it “effeminate”

and risking the corruption of the entire social body.

2.

A strong desire to return to the wildness of nature, accompanied by total rejection of the state and society, as in Walden or Life in the Woods by Henry David Thoreau.

Echoes from another time…

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The Emergence of the New Consumer

Growing mindfulness about the safety and health effects of the products we consume

Greater awareness of need to self-police—no longer confident in oversight of others (e.g., gov’t, corporations)

I am much more aware of the nutritional/health value of the food I eat than I used to be

74 80 67 56 68 87 57

I research the safety of the products I buy more than I used to

41 63 52 26 29 83 38

The quest for zero risk

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The Emergence of the New Consumer

Three keys to understanding the relationship between consumers and society in the post-crisis world

3. CONSUMERS WANT CHANGE AND KNOW THEY CAN COUNT ONLY ON THEMSELVES

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The Emergence of the New Consumer

Downturn brought anxiety and hardship—yet also a sense of relief and opportunity

Chance to pull back from hyperconsumerist lifestyle and reflect on what we truly want

People are actively seeking improvement—in themselves and their ways of living

A “second chance”

to get it right

I wish I could start fresh with an entirely new lifestyle

36 59 39 31 38 70 48

I won’t go back to my old shopping patterns even when the economy rebounds

52 51 50 30 44 45 58

Recession is an opportunity to step back

and rethink

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The Emergence of the New Consumer

Sizeable segments believe the “Great Recession”

will actually be good for themselves/their families and/or their country

A sense that people have been given a chance to reevaluate their lives and how they’re living

A chance to start on a new path, to find a better way forward—

especially true for China, which shows strong optimism for future, and the U.S., which displays keen awareness of the need for a better way of living

The recession has served to remind people of what’s important in life and that’s a good thing

67 63 50 47 59 61 33

Over the long term, this economic downturn will be a good thing for my country

33 43 21 31 29 44 16

The upside to the downturn

Over the long term, this economic downturn will be a good thing for my family and me

26 40 16 22 21 31 11

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The Emergence of the New Consumer

People want to be united in common cause, to invest time in something more substantive and significant than can fit neatly within a shopping bag

They want to get involved with causes larger than themselves

These feelings are especially strong in the U.S., Brazil, and China

I would like to be part of a truly important cause

57 76 41 29 43 66 34

I would like to lead a more spiritual life

51 64 21 19 27 59 29

Change may be: Looking for something “bigger than self”

I would like to feel more connected to a religion or life philosophy

39 54 16 13 20 40 18

“It is preoccupation with possession, more than anything else, that prevents us from living freely and nobly.”

—Bertrand Russell

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The Emergence of the New Consumer

Strong impulse to make changes in who they are and how they live—especially in U.S. and China

Indicative of a desire to take responsibility and assert control over own lives

Looking for a more substantive and satisfying way of life

I am making an effort to improve the way I live

78 85 73 56 65 80 60

I am making an effort to improve the person I am

78 84 69 56 62 83 56

It’s up to me now to make change happen

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The Emergence of the New Consumer

In China, Japan, and Brazil, a search for knowledge and culture

Lesser desire in other countries, especially the Netherlands, which firmly rejects notion of being in need of further education

Change may be: Looking for culture

I sometimes feel “uncultured”; I wish I knew more about the arts, literature, other countries, etc.

31 55 44 18 30 61 53

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The Emergence of the New Consumer

Humans are highly social animals needing intricate ties to family and community to “feel right”; modern society’s technological isolation and focus on the individual have created feelings of alienation

In our fast-paced, technology-

mediated world, people are craving a greater sense of interconnectedness and deeper personal relationships

Paradox of Internet as source of connection and isolation

The main way I stay connected with old friends and colleagues is

through e-mail and/or social networking sites

57 64 48 35 54 49 33

I worry that digital communication is weakening human bonds

54 55 56 42 48 55 45

Change may be: Looking for human bonding

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The Emergence of the New Consumer

Change may be: Looking for human bonding

It is very important that family eat at least one meal a day together

79 86 90 76 78 86 71

Against this backdrop, people are making efforts to connect…

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The Emergence of the New Consumer

From “active pessimism”

to “proactive mindfulness”

In spite of their anxiety, people are resolved to change the status quo and take greater control of their present lives and futures

A primary way in which they will do this is through their consumption choices—their strongest means of power and influence

It is the advent of “proactive mindfulness”

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The Emergence of the New Consumer

II. Four Paradigms Underlying the New

Approach to Consumption

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The Emergence of the New Consumer

More informed

More empowered

More mindful

More engaged

with businesses and brands

More anxious

about an uncertain future—seeking security and control

The emergence of this new consumer is changing everything about how companies must connect with their customers and the broader public

The most successful brands will speak to the four new paradigms we have identified—in their product portfolios and brand communications

A new mode of consumption created by a consumer who is…

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The Emergence of the New Consumer

Embracing Substance

Rightsizing

Growing Up

Seeking Purposeful Pleasure

Images: kavewall.com/stock>liquid-color

The Four Paradigms of the New Consumer

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The Emergence of the New Consumer

“There must be more to life than having everything.”—Maurice Sendak

PARADIGM 1:

Embracing Substance

Hyperconsumerism has failed to satisfy, leaving us unhappy and feeling alienated from each other and from the natural world

Consumers are experiencing feelings of emptiness and disconnectedness

In response, they are craving real and authentic experiences—and the security that comes from living a more orderly, purposeful existence

They are seeking MORE:

More meaning

More connections

More substance

More satisfaction

More purpose

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The Emergence of the New Consumer

A pushback against a vapid culture…

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The Emergence of the New Consumer

…and pervasive lack of authenticity

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The Emergence of the New Consumer

Seeking a return to “Real”…

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The Emergence of the New Consumer

…as symbolized by the Slow Food and Slow Travel movements

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The Emergence of the New Consumer

“There are two ways to get enough: One is to continue to accumulate more and more. The other is to desire less.”—G. K. Chesterton

PARADIGM 2:

Rightsizing

Signs of backlash against hyperconsumption and its associated stress, anxiety, and constant push for MORE

Millions are rejecting prior behaviors, seeking to buy less and experience more

Frugality is suddenly chic

Rightsizing is NOT about self-deprivation, but about finding a harmonious balance—

neither too much nor too little, as expressed in the Swedish term lagom

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The Emergence of the New Consumer

Paralyzed by Choices: “Consumer Vertigo”

Explosion of product choices threatens to overwhelm:

Single Ralphs supermarket in California has as many as 30,000 products, including 300 produce varieties

1,500 different drawer pulls at The Great Indoors

Choose from among 15,000 songs on an iPod or 35,000 movies on Netflix

Each year, more and more products are considered “necessities”

Adding to the pressure: Products are increasingly complicated

Research in Netherlands found 1/2 of all “malfunctioning”

products returned to stores work fine; consumers just couldn’t figure them out

Tropicana Pure Premium Orange Juice now comes in 16 varieties, incl. Low Acid, Antioxidant Advantage, and Calcium + Vitamin D

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The Emergence of the New Consumer

A move toward “Intelligent Simplification”

Most of us would be better off if we lived more simply

78 68 73 51 68 72 48

I no longer want lots of “bells and whistles”

on the products I buy; I’d rather just have the functions I really need

66 67 78 73 65 81 50

Significant majority sees appeal in downsizing—in spending less time accumulating “things”

and more time enjoying life

Seeking to get back to basics, to enjoy life on a more elemental

level

I would rather spend money on an experience (e.g., traveling, going to a concert) than on a luxury item

52 52 68 42 44 54 48

I am looking forward to a holiday season that is less about shopping and more about family and simple pleasures

73 59 62 45 60 72 55

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The Emergence of the New Consumer

From “slow food”

and “slow travel”

to nontraditional medicines, Eastern spirituality, and the rise in traditional crafts, evidence abounds of a desire to slow down the pace of modern life

In recent years, I have adopted or thought about adopting a “slower”

lifestyle

40 50 34 35 37 51 42

In recent years, I have started or thought about starting a “quiet”

hobby such as gardening, knitting, or pottery

37 49 41 25 38 48 30

Looking to slow down

In recent years, I have switched or thought about switching to a less stressful job

26 55 31 16 26 30 27

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The Emergence of the New Consumer

Whereas material possessions were long associated with the “good life,”

now they’re seen as an encumbrance by around 1/2 of consumers

In most of the markets surveyed, this desire for less cuts across leading-

edge Prosumers and the mainstream

I think I would be happier if I owned less “stuff”

31 33 14 13 25 30 24

I wish my home were less cluttered

47 42 36 21 47 81 45

Wanting “less”

In recent years, I have thrown out or thought about throwing out

lots of stuff to declutter my life and my home

57 40 47 44 55 52 45

“Every increased possession loads us with a new weariness.”—John Ruskin

Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients

of Euro RSCG Worldwide through the Knowledge Exchange

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The Emergence of the New Consumer

The New Elite?

I respect/admire people who live simply (minimal purchases, debt free, etc.)

79 69 73 69 72 64 52

I respect/admire people who live a high-luxury lifestyle

15 31 11 10 17 35 15

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The Emergence of the New Consumer

PARADIGM 3:

Growing Up

Recent decades saw adolescence prolonged, adulthood delayed, but today many people are reversing the trend—

accepting personal responsibility and seeking to build individual competencies

Selfishness is giving way to community and collaboration

Even though I am an adult, I don’t always feel like a real “grownup”

50 46 38 38 52 50 58

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The Emergence of the New Consumer

Taking advantage of downturn to get financial life on track

Especially in Brazil and U.S., satisfaction in reducing purchases

Four in 10 global respondents (7 in 10 U.S. Prosumers) expect their reduction in consumption to be permanent

I am getting a sense of satisfaction from reducing my purchases during the downturn

49 52 28 25 39 38 24

I am committed to reducing my use of credit cards over the long term

60 62 38 17 45 42 21

Growing up means being in greater financial control…

Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG

Worldwide through the Knowledge Exchange

Saving money makes me feel good about myself

87 69 65 69 71 59 53

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The Emergence of the New Consumer

…moving beyond immediate gratification…

Do I really need this?

63 44 47 45 59 34 50

Could I find the same item for less at another store or on eBay?

51 34 51 39 62 44 39

Can I afford it?

59 35 46 41 59 22 40

Can I wait until it’s on sale?

56 28 45 38 46 35 35

Is it of solid, good quality? Will it last a long time?

51 55 49 34 49 47 38

Will I really get pleasure from buying this brand/

spending this money?

39 37 34 29 36 33 28

In the past year, I have been asking myself the following questions more often:

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The Emergence of the New Consumer

…and taking responsibility for the effects of their personal consumption

Making environmentally friendly choices makes me feel good

65 80 65 49 54 80 55

I feel good about reducing the amount of waste I create

73 79 63 58 74 85 66

“Going green”

is a pleasurable experience—and source of pride

Also a broad conviction that environmental sustainability is a milestone in the future of business—and a new litmus test

I buy environmentally friendly products

45 72 56 31 44 78 49

The most successful and profitable businesses in the future will

be those that practice sustainability

70 77 59 50 61 81 52

I am making an effort to buy fewer disposable goods

48 60 59 46 51 75 48

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The Emergence of the New Consumer

PARADIGM 4:

Seeking Purposeful Pleasure

A hunger for instant gratification drove yesterday’s excess consumption; now, burned-out consumers are seeking new, more meaningful sources of satisfaction

Impulse shopping has given way to a more considered—and conscientious—

form of consumption

Emerging set of pleasures that are not tied to “instant everything”

but to the 3 paradigms of Embracing Substance, Rightsizing, and Growing Up

For creative marketers who understand this trend, the new quest for purposeful pleasure opens up exciting opportunities

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The Emergence of the New Consumer

A smarter, more empowered approach to consumption

I am a smarter shopper than I was a few years ago

77 76 69 58 73 74 48

I am a more demanding shopper than I was a few years ago

64 80 69 48 64 79 36

Image: Creative Commons, capl.washjeff.edu/7/l/120.jpg

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It’s not news that people have become more skeptical and suspicious over the years

Longtime brands once held a monopoly on messages and information—but all that

is changing…

Brands don’t always tell the truth…

I am skeptical of what I read in newspapers and magazines and what I hear on television and radio

62 43 59 53 67 49 24

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…but peers typically do

I do lots of consumer research online

61 70 51 61 64 65 66

I trust customer reviews more than “expert”

reviews

57 42 60 48 57 84 49

More knowledgeable—seeking out information and opinions online

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The Emergence of the New Consumer

Mindless excess has given way to careful consideration—with multiple points of focus, from eco/social impact and safety to design and provenance

I am shopping more carefully and mindfully than I used to

80 70 70 62 72 73 67

I am more interested today in how and where products are made

54 60 61 34 41 59 41

More attention paid at retail

I pay more attention to the color, feel, and overall design of products than I used to

47 36 38 27 39 65 44

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The Emergence of the New Consumer

Prosumers are driving this new approach to consumption

I am paying more attention than in the past to the environmental

and/or social impact of the products I buy

54 61 64 37 51 72 38

As a consumer, I have a responsibility to censure unethical companies by avoiding their products

67 76 74 51 54 83 51

A majority of global sample—and more than 6 in 10 Prosumers—are focusing more on the environmental and/or social impact of the products they buy (especially strong

trend in China and France)

Widespread sense of responsibility for impact of personal consumption choices

Majority of Prosumers are willing to put their money where their

mouths are (paying more for products that satisfy their consciences)

I am willing to pay a slightly higher price for socially or environmentally responsible products

38 62 54 30 35 77 28

I avoid shopping in stores that don’t treat their employees fairly

52 69 57 38 41 68 34

Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange

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The Emergence of the New Consumer

Consumers—and Prosumers especially—feel more connected to brands and are more intent on finding brand partners that meet their standards

Majority looking for brands that share their personal values, and around 1/2 seek out companies that have a purpose beyond profit

Compared with a few years ago, it’s more important for me to feel good about the companies with which I do business

57 70 47 36 46 58 24

I prefer to buy from companies that share my personal values

59 71 54 40 47 69 55

Seeking a deeper relationship with brands…

I prefer to buy from companies with a reputation for a purpose beyond profit

56 56 51 27 46 74 20

Note: The complete data set, including Prosumer/mainstream breakouts by country, is available to employees and clients of Euro RSCG Worldwide through the Knowledge Exchange

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The Emergence of the New Consumer

Looking for more of a sense of connection to the goods they buy—

and the people who produce them

It makes me feel good to support local producers, artisans, and manufacturers

69 68 57 41 65 41 44

It is important to me to buy locally produced goods

51 42 58 25 45 36 55

…and with producers: the growing allure of local

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Buying local is more about giving than getting

Locally produced foods tend to be more healthful (e.g., fresher,

fewer preservatives)

55 74 60 30 46 58 45

Buying locally produced goods is easier on the environment

57 60 65 43 66 62 48

I have more confidence in the safety of locally produced goods

34 40 32 14 28 40 21

I improve the economic health of my community when I buy from local producers, artisans, and manufacturers

66 69 59 43 52 47 53

I would rather give my money to small businesses than to large corporations

63 26 53 41 62 14 28

Locally produced goods tend to be of higher quality

38 31 50 18 34 21 17

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The Emergence of the New Consumer

Key Takeaway for Brands

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The Emergence of the New Consumer

Shopping is no longer just about the product or service acquired; instead, the purchase is viewed in light of multiple other considerations, including:

Who makes it?

Is the company admirable and trustworthy?

Does the brand share my values and support the things that are meaningful to me?

Is it having a positive impact on the lives of all the people its businesses touch?

Brands must clearly communicate their values and invite consumers to participate

1. Consumption is more multidimensional

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In the emerging culture of mindful consumption, people want to feel good about making smart, conscientious choices; the most successful brands will give consumers the incentives (practical, emotional) they need to make the choices they believe to be “right”

for them and for others

Smart brands will help customers move closer toward the idealized images they have of themselves—helping turn best intentions into reality

2. New Consumers are looking for brand partners that help them live their values…

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The Emergence of the New Consumer

Consumers are worried—about money (excessive debt, job insecurity, supporting families over long term) and about the impact of their consumption choices

Seeking brands that offer not just reassurance but practical solutions and support

…manage their aversion to risk…

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Smart brands will promote interconnectivity—

helping customers feel a sense of community and shared purpose

Helping to build connections between:

Consumer + brand

Consumer + consumer

Consumer + broader community

Consumer + vital causes

Consumer + nature

…and build connections

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The Emergence of the New Consumer

Political and business leaders may continue to debate “truth”

of climate change and dangers of environmental destruction

Consumers have made up their minds

Beyond being the “right thing”

to do, adopting sustainable practices is regarded as a smart strategic choice for companies and brands

3. Sustainability is in everyone’s best interest

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In anxious, often depressing, times, consumers seek concrete solutions to their aspirations for change

Brands can help pull consumers out of their doldrums by proposing—and helping to create—a more inspirational and meaningful universe

4. New Consumers are looking for brands that respond to a desire for re-enchantment

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The Emergence of the New Consumer

To connect with today’s more mindful consumers, brands must:–

Create products and services that offer longer-lasting and more fundamental satisfactions

Provide consumption choices that minimize negatives (e.g., eco-toxic, antisocial, stress-inducing, unhealthful) and maximize positives (e.g., contributing to society, allowing more time with family, rightsizing)

Offer customer service that has made an evolutionary leap into holistic relationships built on trust and mutual support

Rethink how they communicate with customers hungry for positive and helpful messages, skeptical of inflated claims, and disgusted with deceit

Create more “enchantment”—allowing the consumer to step away from anxieties and fears, and engage in experiences that surprise and delight, indulge the senses, and offer a break from the everyday

5. For every “No,”

there must be a “Yes”

Image: Creative Commons, www.shopperculture.com/shopper_culture/shopping/

What can brands offer people in terms of merchandise, services, and communications that will satisfy them and, ultimately, increase their happiness?

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Consumed: Rethinking Business in the Era of Mindful Spending

Based on Euro RSCG Worldwide New Consumer study and written by two executives within Havas

Consumed: Available in Bookstores July 2010

Andrew Benett, CEO, Arnold Worldwide and CSO, Havas Worldwide

Ann O’Reilly, Content Director, Knowledge Exchange, Euro RSCG Worldwide

“Benett and O’Reilly offer insight and guidance about how best to communicate with and build relationships with today’s more thoughtful consumer. It is essential reading for anyone seeking to win in the post-recession marketplace.”

—Mike O’Driscoll, Managing Director, Jaguar Cars

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Media Inquiries

For inquiries regarding Euro RSCG Worldwide’s studies, please contact:

Lisa Gruber

Global Communications Manager

Euro RSCG Worldwide

T +1 212.886.2018 E [email protected]

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For more insights from Euro RSCG research, visit www.prosumer-report.com

And follow us on Twitter (@prosumer_report)