74
The Emergence of the New Consumer 2010

Havas Worldwide: The Emergence of the New Consumer

Embed Size (px)

DESCRIPTION

Research from global communications company Havas Worldwide is showing a historic shift in consumer values and behaviors, as people begin to rethink what is important and how they want to live. Drawing on findings from a survey of 5,700 adults in seven markets (Brazil, China, France, Japan, Netherlands, United Kingdom, United States), this presentation reveals how changes in consumer consciousness are driving people away from the hyperconsumerism of recent decades and toward a more mindful approach to living and consuming.

Citation preview

Page 1: Havas Worldwide: The Emergence of the New Consumer

The Emergence of

the New Consumer

2010

Page 2: Havas Worldwide: The Emergence of the New Consumer

2

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

Brazil n=700

France n=700

China n=700

Japan n=700

Netherlands n=700

U.K. n=700

About the Study

Page 3: Havas Worldwide: The Emergence of the New Consumer

3

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: Havas Worldwide, 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 sphere

Also calls into question our values and way of life

Page 4: Havas Worldwide: The Emergence of the New Consumer

4

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?

Page 5: Havas Worldwide: The Emergence of the New Consumer

5

The Emergence of the New Consumer

I. Three Keys to Understanding the

Relationship Between Consumers

and Society in the Post-crisis World

Page 6: Havas Worldwide: The Emergence of the New Consumer

6

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

Page 7: Havas Worldwide: The Emergence of the New Consumer

7

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 Havas Worldwide through the Knowledge Exchange

Economies are on the rebound,

but anxiety remains high

Page 8: Havas Worldwide: The Emergence of the New Consumer

8

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

Page 9: Havas Worldwide: The Emergence of the New Consumer

9

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

Page 10: Havas Worldwide: The Emergence of the New Consumer

10

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

Page 11: Havas Worldwide: The Emergence of the New Consumer

11

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

Page 12: Havas Worldwide: The Emergence of the New Consumer

12

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/

Page 13: Havas Worldwide: The Emergence of the New Consumer

13

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

Page 14: Havas Worldwide: The Emergence of the New Consumer

14

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

Page 15: Havas Worldwide: The Emergence of the New Consumer

15

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

Page 16: Havas Worldwide: The Emergence of the New Consumer

16

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

Page 17: Havas Worldwide: The Emergence of the New Consumer

17

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

Page 18: Havas Worldwide: The Emergence of the New Consumer

18

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

Page 19: Havas Worldwide: The Emergence of the New Consumer

19

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

Page 20: Havas Worldwide: The Emergence of the New Consumer

20

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

Page 21: Havas Worldwide: The Emergence of the New Consumer

21

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

Page 22: Havas Worldwide: The Emergence of the New Consumer

22

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

Page 23: Havas Worldwide: The Emergence of the New Consumer

23

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

Page 24: Havas Worldwide: The Emergence of the New Consumer

24

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

Page 25: Havas Worldwide: The Emergence of the New Consumer

25

The Emergence of the New Consumer

Search term: “vegetable gardening”

The aspiration of reconnecting

with the natural world

Page 26: Havas Worldwide: The Emergence of the New Consumer

26

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…

Page 27: Havas Worldwide: The Emergence of the New Consumer

27

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

Page 28: Havas Worldwide: The Emergence of the New Consumer

28

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

Page 29: Havas Worldwide: The Emergence of the New Consumer

29

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

Page 30: Havas Worldwide: The Emergence of the New Consumer

30

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

Page 31: Havas Worldwide: The Emergence of the New Consumer

31

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

Page 32: Havas Worldwide: The Emergence of the New Consumer

32

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

Page 33: Havas Worldwide: The Emergence of the New Consumer

33

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

Page 34: Havas Worldwide: The Emergence of the New Consumer

34

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

Page 35: Havas Worldwide: The Emergence of the New Consumer

35

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…

Page 36: Havas Worldwide: The Emergence of the New Consumer

36

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”

Page 37: Havas Worldwide: The Emergence of the New Consumer

37

The Emergence of the New Consumer

II. Four Paradigms Underlying the New

Approach to Consumption

Page 38: Havas Worldwide: The Emergence of the New Consumer

38

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…

Page 39: Havas Worldwide: The Emergence of the New Consumer

39

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

Page 40: Havas Worldwide: The Emergence of the New Consumer

40

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

Page 41: Havas Worldwide: The Emergence of the New Consumer

41

The Emergence of the New Consumer

A pushback against a vapid culture…

Page 42: Havas Worldwide: The Emergence of the New Consumer

42

The Emergence of the New Consumer

…and pervasive lack of authenticity

Page 43: Havas Worldwide: The Emergence of the New Consumer

43

The Emergence of the New Consumer

Seeking a return to “Real”…

Page 44: Havas Worldwide: The Emergence of the New Consumer

44

The Emergence of the New Consumer

…as symbolized by the Slow Food

and Slow Travel movements

Page 45: Havas Worldwide: The Emergence of the New Consumer

45

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

Page 46: Havas Worldwide: The Emergence of the New Consumer

46

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

Page 47: Havas Worldwide: The Emergence of the New Consumer

47

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

Page 48: Havas Worldwide: The Emergence of the New Consumer

48

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

Page 49: Havas Worldwide: The Emergence of the New Consumer

49

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 Havas Worldwide through the Knowledge Exchange

Page 50: Havas Worldwide: The Emergence of the New Consumer

50

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

Page 51: Havas Worldwide: The Emergence of the New Consumer

51

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

Page 52: Havas Worldwide: The Emergence of the New Consumer

52

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 Havas Worldwide

through the Knowledge Exchange

Saving money makes me feel good about myself

87 69 65 69 71 59 53

Page 53: Havas Worldwide: The Emergence of the New Consumer

53

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:

Page 54: Havas Worldwide: The Emergence of the New Consumer

54

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

Page 55: Havas Worldwide: The Emergence of the New Consumer

55

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

Page 56: Havas Worldwide: The Emergence of the New Consumer

56

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

Page 57: Havas Worldwide: The Emergence of the New Consumer

57

The Emergence of the New Consumer

● 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

Page 58: Havas Worldwide: The Emergence of the New Consumer

58

The Emergence of the New Consumer

…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

Page 59: Havas Worldwide: The Emergence of the New Consumer

59

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

Page 60: Havas Worldwide: The Emergence of the New Consumer

60

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 Havas Worldwide through the

Knowledge Exchange

Page 61: Havas Worldwide: The Emergence of the New Consumer

61

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 Havas Worldwide through the Knowledge Exchange

Page 62: Havas Worldwide: The Emergence of the New Consumer

62

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

Page 63: Havas Worldwide: The Emergence of the New Consumer

63

The Emergence of the New Consumer

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

Page 64: Havas Worldwide: The Emergence of the New Consumer

64

The Emergence of the New Consumer

Key Takeaway for Brands

Page 65: Havas Worldwide: The Emergence of the New Consumer

65

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

Page 66: Havas Worldwide: The Emergence of the New Consumer

66

The Emergence of the New Consumer

● 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…

Page 67: Havas Worldwide: The Emergence of the New Consumer

67

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…

Page 68: Havas Worldwide: The Emergence of the New Consumer

68

The Emergence of the New Consumer

● 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

Page 69: Havas Worldwide: The Emergence of the New Consumer

69

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

Page 70: Havas Worldwide: The Emergence of the New Consumer

70

The Emergence of the New Consumer

● 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

Page 71: Havas Worldwide: The Emergence of the New Consumer

71

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?

Page 72: Havas Worldwide: The Emergence of the New Consumer

72

Consumed: Rethinking Business in the Era of Mindful Spending

● Based on Havas Worldwide New Consumer study and

written by two executives within Havas

Consumed: Available in Bookstores July 2010

Andrew Benett, Global CEO

Ann O’Reilly, Content Director, Knowledge Exchange

“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

Page 73: Havas Worldwide: The Emergence of the New Consumer

73

Media Inquiries

For inquiries regarding Havas Worldwide’s studies, please contact:

Yvonne Bond

Global Communications Director

Havas Worldwide

M +1 646 643 8824

E [email protected]

Page 74: Havas Worldwide: The Emergence of the New Consumer

For more insights from Havas Worldwide research, visit www.prosumer-report.com

And follow us on Twitter (@prosumer_report)