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Market Research + Consumer Trends

Global and national markets are ever changing and in order to grow or maintain market share, businesses must identify business trends and changes in customer behaviour before they disrupt profits. Market research should be an essential and ongoing part of business operations, not just during periods of crisis management.

In 2018 the following forces are shaping and changing consumer behaviour:

ADAPTIVE ENTREPRENEURS

According to a global study by Euromonitor in 2017, 50% of respondents across all generations were aspiring to self-employment. This is indicative of an enormous shift away from traditional full-time jobs and towards more self-directed and flexible lifestyles. This development towards risk taking “Adaptive Entrepreneurs”, fuelled by stagnant wages, high youth unemployment rates and a change in personal values are causing delays in larger life goals, such as property purchases or children. The inspiring success stories of tech industry founders and the convenience of crowdfunding platforms are disrupting the economy, as “Adaptive Entrepreneurs” are no longer responding to traditional advertising strategies or job offers.

CALL OUT CULTURE

Two developments, (1) the increase in internet and social media usage and (2) consumers discovering and embracing their growing power, have given the “hashtag activism” movement momentum. Consumers feel empowered to speak up and show support for worthy causes. Brands and even governments are under increasing pressure as social responsibility and transparency are expected by increasingly opinionated consumers. A global Edelman survey in 2017 found that 51% of customers believed brands are able to solve more social problems than governments. Consumers are “voting with their wallets” and actively reviewing and pressuring brands online forcing companies to take a stance on current issues. This has forced brands toward greater direct customer interaction. Brands have to respond quickly and effectively, with some believing customer service to be the new marketing (Joy Bear).

 

% of Respondents Visiting or Updating Social Media at Least Once a Week

Source: Euromonitor International’s Global Consumer Trends Survey 2017

 

CLEAN LIVERS

Consumers’ strong sense of social responsibility increasingly motivates them to seek to provoke change through their consumption choices, thus fuelling trends. Trends include minimalism, veganism and abstinence.  In response to these consumer trends we are seeing an increase in the development of non-alcoholic beverages, alcohol-free festivals and fitness nightclubs. Young consumers, in particular, are increasingly family-oriented and health conscious, seeking meaningful and healthy experiences, rather than ownership.

THE BORROWERS

With consumers increasingly choosing flexibility and freedom over possessions, Borrowers value access not ownership. This rejection of materialism in favour of meaningful experiences is increasingly impacting older generations. Combined with urbanisation and an associated decrease in average living space, it is leading to the emergence of innovative start-ups in the sharing economy, satisfying the increasing demand for sharing, swapping, renting and streaming.

IT’S IN THE DNA – I’M SO SPECIAL

With 25% of Americans stating they were planning to take a DNA test within the next 12 months, consumers’ growing curiosity about their genetic make-up and what it reveals about their ancestry, physiological traits and health risks are causing this infant industry to grow. The genetic testing industry has grown from USD$70million in 2015 to an expected USD$340 million by 2022. The greatest challenge facing the genetic testing industry is to convince potential customers of the effectiveness of testing methods and the security of their personal data.

VIEW IN MY ROOMERS

The emergence of more sophisticated technology and a growing demand for an immersive online shopping experience has brands globally exploring the benefits of augmented reality (AR). AR is believed to satisfy the “try before you buy” demand, giving online shoppers the convenience of shopping anywhere, at any time, with product information and reviews at their disposal, without having to sacrifice the benefits of a traditional in-store shopping experience

SLEUTHY SHOPPERS

A crisis of trust between consumers and the motives of corporations engaged in mass-production is driving consumers to question marketing campaigns, brand images and business practices of companies of interest.

Sceptical consumers are increasingly demanding extensive evidence of labour, production and supply-chain practices to justify purchasing decisions. Proactive transparency and the provision of detailed proof and insight into business practices will foster trust toward the company and their products, helping to create a loyal customer base.

 

Respondents That Only Buy from Companies and Brands They Trust

Source: Euromonitor International Global Consumer Trends Survey 2017

 

I-DESIGNERS

A shift in consumer values from ownership towards experiences is disrupting purchasing patterns globally.

Consumers are aspiring to a meaningful involvement in the creation and production of their acquired possessions. Greater importance is attributed to the purchase itself, with personalisation creating more authenticity and greater value for the consumer. Recent advances in technology have enabled brands to provide customers with the opportunity to assume the role of a designer, adapting products to their taste whilst exercising their inner creativity. This is an essential step in creating a loyal customer base.

CO-LIVING

Skyrocketing real-estate prices in urban centres and the desire to share rather than to own is driving Millennials, as well as over-65s, to cohabitate with like-minded inhabitants, socialising, inspiring and living mortgage-free. Millennials, who are now outnumbering Generation X, now value freedom over ownership. The niche-trend of co-living is disrupting traditional real estate and fostering co-living business ventures, not just in residential but also in the corporate sector. This has created co-working spaces for individuals to interact with and inspire each other.

THE SURVIVORS

Even a decade after the Great Recession (2008-09) the gap between the rich and the poor remains , with 30 million households in developed markets surviving on a low income. The resulting food insecurity is giving rise to foodbanks, whilst the retail industry is responding with the creation of resale shops, grocery discounters and value-based retailers. These value-based retailers have proven resilient against the disruption of online shopping and are expanding faster than any retailer, inspiring traditional retailers to incorporate resale areas into their traditional business models.

Are you aware of key trends in your industry? Do you know how to take advantage of them?

Market Research helps you identify development opportunities so you can grow your business by staying ahead of your competitors. Be the business that sets industry standards and competitors look to for guidance.

 

Source: Euromonitor International

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Market Research + Risk

Can YOU afford the risk?

Market research and risk is something you do not always find in the same sentence but now you have!  We all have risk within our own businesses and while we cannot be rid of them (oh, do we wish we could), we can only manage them. Failure to manage that risk can potentially harm your brand or, worse, cost you your business.

Depending on your industry and business, risks can come in all shapes and sizes such as:

  • fluctuating currency exchange;
  • varying legal landscapes;
  • differing cultural differences and nuances;
  • potential language barriers;
  • training labour;
  • insufficient transport and logistics solutions;
  • digital security breaches; and
  • protection of intellectual property (IP) and data management.

While these risks cannot be managed all at once (let’s be realistic here), it is important to remember that good risk management practice consists of taking small steps rather than being overwhelmed from the get-go.

Using good quality, third-party market research, you can identify, mitigate and prioritise risks in your business:

Managing risk with market research

Managing risk with market research

Understanding your market and customers helps you identify potential risks for your business, e.g. new competitors’ tactics, malicious suppliers, etc. Using this information, you can proactively develop strategies specifically targeting each of the potential risks that were identified in the research.

Ultimately, as the business owner or decision maker, you can prioritise these risks from the most pressing to the least important according to your mission, strategy and goals in the business. This could mean, for example, protecting IP around your main product (competitive advantage) is much more important than transport constraints due to a public holiday for a software company.

Depending on the industry and what your product is, risks can vary greatly between businesses. It is essential to use the power of market research to understand your markets, customers and external and internal influences to effectively identify, mitigate then prioritise your risks to avoid irreversible damage to your brand and business.

Unlock your potential with market research.
Contact us now for a free, no obligation, 2 hour consultation with our Principal analyst.

Market Research + Higher Education

Market research can help determine how successful (or not) a new concept will be via actionable feedback on what people are actually looking for. This was the case when we were engaged by a higher education provider looking to design, streamline and implement a new degree.

With the help of the client facilitating the focus groups, we were able gather valuable qualitative insights into why students thought what they thought regarding the new program options. Through a series of focus group sessions; consulting prospective, current and past students, we were able to narrow down and hone in on which of the predetermined scenarios students supported: i.e.  a new degree or a variations of the older models.

We dived straight into the verbatim and extracted key themes within each of the groups. We took into consideration a number of major influences on their decisions and thought processes. Outcomes included:

  • ranked preferences of the scenarios;
  • perceptions of other higher education institutions;
  • other degrees offered at the same institution;
  • demographics, e.g. gender, race, age;
  • sources of information for decision-making
  • reasons for choosing their current place of study; and so on.

Using the qualitative insights, we identified that flexibility was a key driver for many students pursuing this field of study. They did not want to be pigeonholed early on in their studies, barring them from choices further down the track.

We worked extensively with our client to realise and incorporate students’ desires and direction into the new program as an outcome of the research. Through the power of market research our client was able to identify and tailor their approach to formulate a degree which would positively impact students’ career choices at their institution.

Unlock your potential. Know what potential and current clients want and what they don’t.
Contact us now for a free, no obligation, 2 hour consultation with our Principal analyst.

Market Research + Manufacturing

Market research is a vital component of making important decisions, especially ones where you want to introduce new products into a market, i.e. for manufacturing. Introducing new merchandise to existing customers or potentially new ones can be confusing. Usually we ask businesses looking to venture into unknown waters:

“Does your new product resonate with the market you are looking at?”

“Is your product fit-for-purpose?”

“Is someone else already producing your product, if so, how can you do better than your competitors?”

These are some of the more obvious and common questions that can be addressed through the power of market research. Market research gives you the confidence to make the best decision for your new venture.

For example, a steel fabricator wanted us to shed some insight on a potentially new product they would like bring to an already crowded market.

After contacting potential clients on the client-generated list and data from Queensland government, we were able to assess the market landscape. Combining the qualitative comments from the phone work and quantitative analysis of the government data, we had a very detailed picture on the market size of Southeast Queensland, what their potential clients were looking for in their new product category and drawing out what could potentially make them switch from their current suppliers.

Our client made the decision not to proceed with their new venture, ultimately saving them time, effort and money had they invested in what was perceived to be ‘a good idea’ at the time. Through the power of market research, our client was able to evade what could have been an expensive mistake.

Be the change, make a difference to your customers’ experience with market research.
Book now for a free, no obligation, 2 hour consultation with us, over the phone or face-to-face.

Market Research + Hospitality

Market research is such a powerful tool to have. Take this example of one of our recent clients in the hospitality industry. This client publishes branding material every year outlining the latest trends, sentiments, challenges, opportunities and business case studies in the industry.

We worked closely with their Marketing team to tweak their existing survey to fit the changing business landscape. As it turns out, we took care of the survey, the client took care of the email campaign to their extensive database. Responses were 100% voluntary (though some surveys do have incentives) and a donation was made to the client’s chosen charity for every response collected.

Using data from last year’s and this year’s results, we were able to extract comparative data for the different business groups being looked at. Our client was able to draw insights and forecast trends through the comparative data collected in the survey.

With the power of market research, their clients and readership are able to apply those insights and trend data to their own businesses, so they can better plan for the future and adapt to the ever changing market.

Know what your customers’ journey is and harness it to create more value for them!
Book now for a free, no obligation, 2 hour consultation with us, over the phone or face-to-face.