Megatrends can transcend economic fluctuations but significantly shape a market’s direction; they provide the longer-term picture of fundamental changes in consumer behaviour but can also be contradictory. Euromonitor International’s latest report, Why Megatrends Matter, examines the drivers behind them, what they are, and how businesses can use them to their advantage.
Socioeconomic, technological, and environmental drivers are the underlying forces behind megatrends. Think shifting economic power, population change, environmental shifts and pressures, technological advances, and changing values.
While a company’s strategy needs to focus on its consumer, megatrends can “point you in the right direction” when it comes to making decisions and business planning.
Euromonitor International head of practice, Innovation, Alison Angus, said: “Tracking and analysing megatrends will keep you one step ahead. How? Because you’ll be able to act on the ones that impact your business now and in the future. New opportunities become more apparent. Innovation becomes proactive, not reactive. And you can better adapt or pivot to keep your competitive edge.”
It identifies 10 megatrends to watch over the next two years:
Convenience – efficiency, immediacy, and simplicity
Consumers demand convenience across all aspects of their lives, with instant gratification with minimal effort and seamless transactions the goal. Of those surveyed, 42 per cent said they were willing to spend money to save time.
Digital Living – ingrained digital connectivity
Accelerating technology advancements are infiltrating daily routines, from school to shopping, work, and socialising. It lends to raising consumer expectations for in-person and online experiences to operate together.
Diversity and Inclusion – stereotypes and stigmas slowly eroding
Fair representation and inclusion are now indisputable but there is still a lot of work to be done. Consumers expect brands to act and have a tangible impact and demand authenticity and consistency.
Experience More – authentic, enriched, sensory experiences
Consumers won't settle for basic; they want the best experience at the best price and put more value on doing than owning. It calls for enhancing intentional touchpoints along the user's journey with high-quality, value -added interactions.
Personalisation – bespoke customisation
Campaigns and products need to be targeted to the individual buyer, it's developments like custom dosages. Data collection is propelling demand for hyper-tailored options, with consumers willing to forego privacy for uniquely tailored products.
Premiumisation – individual priorities
The challenge of premium meaning different things to different people means benefits need to be obvious and equate to the cost. Ingredients, materials, and design are examples of areas to improve.
Pursuit of Value – premium battles with bargains
Consumers might want premium, but the instability of recent years and current economic uncertainty means they are much savvier in how and where they spend. The hunt for bargains or discounts overrides brand loyalty.
Shopper Reinvented – radical change
New business models amplify the competition; social media and voice enabled devices double as commerce platforms; and smartphones mean consumers can browse and buy in just a few clicks. Brand discovery can happen anytime, anywhere. Digital tools can elevate a brand and deliver a curated, consumer-centric experience.
Sustainable Living – environmental and socio-political
Environmental and social issues will influence purchase decisions for generations to come and every business must play an active part in protecting people and the planet. The challenge is consumers not willing to pay a premium for products made – so brands need to make the sustainable option an affordable one.
Wellness – ownership of wellbeing
Consumers are taking control of their wellbeing, from the physical and mental to the spiritual and emotional. The definition of wellness is broadening to incorporate emotions, environmental consciousness, and economic inclusivity and brands need to help customers achieve optimal health.
Angus said that harnessing megatrends can help businesses shift from “reactive execution to proactive implementation”.
“When you track megatrends, you’re able to innovate for your customer and their evolving demands or values. And you start to discover opportunities that could drive long-term profit,” she said.
For the full report and workbook, click here.
