CHICAGO—“The effects of the global economic crisis have had long reaching implications and it is not just consumer behavior in the short term which was affected," said Alexandra Smith, global trends analyst at Mintel. “Indeed, these consumer trends for 2011 are a legacy created by economics, but are now gathering their own momentum and are set to influence the global consumer mindset for a long time to come."
Although the trends pertain to consumer behavior as a whole, the cosmetic industry can easily read into the upcoming consumer mindset to help better position their brands and prepare for future product development. And as 2010 comes to a close, Mintel offers nine consumer trends to watch in 2011.
The nine trends to watch for 2011, according to Mintel are:
1. Prepare for the Worst
The global recession has driven consumers to think defensively. Saving money is a priority, and consumers are using debit rather than credit, because they want no loopholes, no hidden costs and no pricey upgrades. In the coming year, brands will have to demonstrate how a product or service delivers long-term benefits or prevents problems down the road.
2. Retail Rebirth
Online shopping will continue to rule in 2011. As a result, brands need to get more creative to lure consumers into stores, offering more than just retail and be a venue, not just a shop. Service may extend into advice and demonstrations, while exclusivity and environment may also be key aspects to engage consumers with real life, not virtual, shopping experiences.
3. Where It’s App
With smartphones becoming the dominant mobile force, Quick Response (QR) codes and app technology will pique interest. To capitalize on consumer awareness of technology, brands will need to take QR codes beyond niche understanding, using it to explain and offer exclusive content. Rather than displacing our interaction with the physical, this technology has the potential to reinvigorate our relationships with brands, retailers and with each other, Mintel says.
4. No Degree, No Problem
Economic uncertainty has changed the workplace and the meaning of job security for the foreseeable future. As a result consumers will continue to question higher education’s ROI and alternative channels for learning will gain credibility. In 2011 we may see more lifelong learning in the workplace, corporate sponsored degrees and companies investing in employees through education and training rather than salary or benefits. Meanwhile learning while doing, rather than learning in a lecture hall, may become a focusm, and with DIY education gaining steam, there’s an opportunity for brands to play host.
5. On Her Own Terms
Women are earning and learning more than men, creating new gender roles in business and consumerism. In 2011, age is no longer an easy marker for lifestage. Opportunities lie for brands to focus less on the year the female consumer was born, and more on where she’s at with her life right now. So, 2011 may see a counter trend to the ‘metrosexuality’ of men in a ‘masculinization’ of women. Implications for how brands market to women will be big.
6. Retired for Hire
People are working beyond retirement—either due to financial need, or because they have grown attached to a lifestyle of leisure and pleasure. With half of Americans having no retirement account, the number of older than 65s working will reach nearly 20 percent by 2014. In the U.K., 77 percent of older than 55s plan to continue working after retirement age “in order to enjoy and prolong a better standard of living." In 2011, this group may prove an untapped market for advertisers, affecting a number of consumer sectors. Vitality, energy and longevity will become key product qualities in the food and drink sector.
7. The Big Issue
Our attitude toward weight is polarizing, pitting the rise of the super-healthy against the eternal appeal of indulgence. In the U.K., almost a quarter of women wear clothes in sizes 18 and over, a third of men wear XL clothes or bigger and more than 30 percent of U.K. children are now classed as overweight. Meanwhile, 34 percent of U.S. adults age 20 and older are obese. Therefore, 2011 may see a wider array of products catering to an obese market: from portion control and more info on packaging to low-cost healthy fare and products to firm and salve chaffed or sagging skin.
8. Garden State
Modern city dwellers have a growing love of gardening and a need for nature, and with fresh, organic produce still economically out of reach for many, consumers are finding their own ways to bring healthy home. In the U.S., 26 percent of Internet users purchased vegetable seeds in past year, 19 percent bought vegetable/flower garden fertilizer and 27 percent said they like to grow vegetables at home. While in the U.K., one in 5 consumers grow their own fruit and vegetables and the U.K. Allotment waiting list has grown 20 percent in 2010. In the United States, 40 percent of people with a garden agree “growing fresh food to cook with" is important.
9. Who Needs Humans
As we move into an ever more digital era, automated technology has machines replacing people. Therefore, 2011 may see certain jobs permanently displaced by technology—that includes service jobs, not just manual or factory work. But backlash and balance-seeking may lead to an increased cache for hyper-personal goods and services.