Home Industry From now on we cannot create value without values!

From now on we cannot create value without values!

by Underlines

Until 2020 society has measured value purely in terms of price and all of a sudden the crisis has reversed this – public values are helping shape private value. We now realise that we cannot self-isolate from climate change and enforced social distancing has produced fundamental change. Evidence the sluggish transition to working online which has escalated at frenetic pace in just 10 months. Pamela Scott reviews what this will mean to us as consumers and what the future will involve for brands in the marketplace.

The transition to working online and/or from home brings a number of benefits: less commuting, more productivity, reduced carbon emissions, less inner city congestion and increased job mobility as you don’t have to necessarily live close to where you work. And these are benefits beloved by the Millennials who were already at the forefront of challenging business ‘norms’ before COVID. This is the generation who expect flexibility and work/life balance – now business has had to swing to their way of thinking. So too issues such as diversity and inclusion are essential to this vocal generation alongside sustainability and accountability.

This has been a shake-up for businesses of any size – the seismic changes occurred virtually overnight and a crisis of this magnitude entails an entire rethink of strategy and any future planning. It is perhaps easier to comprehend that businesses now have to think more like start-ups – balancing variables such as profit and cash flow, hope against the reality of job losses and redundancy and consumers of all ages who have learned new habits in and out of lockdown.

Some of these new acquired habits will endure – a move away from excessive consumerism is certainly one. ‘Buy Less, Buy Better’ the mantra of forward thinking producers and manufacturers could go mainstream. In a period that has been both depressing and uplifting in different aspects, people have turned to different information sources. With a constant stream of television coverage day and night with boggling statistics, many are returning to print media for more considered comment and even journalists (like me!) are making a comeback.

Throughout the past 10 months social and media influencers have altered – it is no longer simply about physical attractiveness, good filters and healthy travel budgets but more about thoughtful and informed comment where smart is the new sexy.

For brands there are a number of challenges from the consumer (see later) and indeed the demands of proven and provable sustainability in the entire textile and retail chain. Sustainability can no longer be used as a point of difference – in the world of the 2020’s and beyond it is a licence to operate. The textile industry at all its levels is realising its culpability towards the waste of world resources but are working overtime to redress the balance – sure it was a process already underway but the pace of change is meteoric.

We have seen how Selfridges were one of the first to make real commitment to sustainability and recyclability – they have stated that by 2025, the group intends to sell product from certified sustainable materials exclusively. A bold ambition but one they are already instigating in their retail model. Hence the Repairs Concierge, their clothing rental programme (in partnership with Hurr), vintage fashion and refilling cosmetic bottles – all part of their Planet Earth programme and until lockdown in December the familiar yellow of the Selfridges’ retail space turned green to focus consumers’ minds on the need for change.

In a recent report by Euromonitor* the research company identified trends where resilience and adaptability are the driving forces.

Build Back Better – the health crisis impacted consumers as to their buying habits and there developed a natural empathy with brands with a strong sense of social and environmental responsibility. Consumers really expect brands to act with purpose beyond the pandemic.

Craving convenience – consumers now have to schedule activities with no room for spontaneity but they want the shopping experience be that only via digital means at the moment. Retailers are trying to capture these consumers who still desire the in-store experience through the digital channel and of course generationally speaking, one channel will not suit all!

Outdoor Oasis – open air venues where people can get outside and have a change of scenery is attractive and as more people work from home some consumers are looking to move permanently to a rural rather than urban environment.

 

Phygital Reality – a hybrid of the physical and digital world. Consumers embraced internet-connected devices not just for their working life but keeping touch with relatives in other parts of the country/world. Bricks and mortar retailers are using technologies to achieve the phygital reality – adopting mobile reservation systems, QR codes for touchless menus and payments and in-store virtual fitting rooms. Personal shopping appointments through video conferencing is just one example.

Playing with Time – managing work, personal life and family time can be difficult and demanding and of course in some ways with limited housing space, a real challenge to work spilling into free time and never really switching off. Likewise we see the 24h service culture emerging. The changes will affect bricks and mortar too with closure of retail sites that are in deserted high streets – but personal services from smaller local shops (even if they are not open) will be appreciated.

Restless & Rebellious – virtually all consumers are now fed up and there is a growing mistrust in leadership whilst conspiracy theories add fuel to the fire. Particularly for the younger generations there is a disconnect from the political system. It is this category of consumer that will be first back for ‘revenge shopping’ where they shop extravagantly after being restricted for so many months. There is also a growing distrust in media and online content and it will be those companies and brands that give the facts that stand to benefit the most.

Safety Obsessed – safety and health first and foremost and further increase in contactless payment. Service industries such as the grocery sector were the first to respond both with more contactless payment and heightened home delivery for those who could not or did not want to enter busy food stores. Unattended commerce and e-commerce will continue to be widely adopted minimising human to human contact.

Shaken & Stirred – a test of mental resilience, restricting special and everyday experiences, economic shock alongside the learning experience of how to develop a balanced life in an upended world. Spending habits of course have been affected and will continue to be so – no longer devoted to novel experiences and time-saving, buying habits focus on durable skills and products. Generation Z and the Millennials who before the pandemic preferred to spend money on experiences (rather than ‘things’) now have to look to products that provide entertainment at home, or offer some route to self-improvement or learning entirely new skills.

Thoughtful Thrifters – value-added and value for money are the mantra and tie-ins of products with well-being and health are valuable. For sure there is decreased consumer confidence and pessimism is particularly high in those groups which would normally have been the biggest spenders of the next decade (the Millennials and Generation Z). It is clear that some companies and brands are responding with discounts on discretionary purchases and premium brands are introducing products at more accessible price points.

New Workplaces – having workplaces in new spaces has multiple effects: clothing choices (big uptake on casual and loungewear), technology spend (conferencing programmes and green screens) and eating habits (both good and bad!). After the first two lockdowns were lifted, many consumers started going back to their workplace but less frequently. Staged attendances at work were also normal so not too many workers were in a workplace and could socially distance. However many consumers miss in-person interactions, especially so if they are single and living alone. Also for those working at home all the time, it is difficult for many even after all these months to manage routine.

The biggest changes throughout this year will be the face of retail and particularly fashion retailing – there no longer seems the need for large bricks and mortar outlets when most have already developed their online commerce on a number of levels. And where these still exist their role will be much more than offering clothing choices – it will be about drawing the consumer into something that is a shopping encounter that pleases the senses and cannot be experienced online.

*Top 10 Consumer Trends 2021 www.euromonitor.com

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