SEEING OPPORTUNITIES 2020-21
Introduction
READY FOR YOU While many of us are experiencing challenges, we are also seeing some bright spots. For this reason, we have put together 14 opportunities from evidence-based insights observed fresh from the market. The world is changing in exciting new ways. Don’t miss out!
Customer orientation
Relieving tension, repairing fractures…
Remain positive, stay close to customers and support them. Brands that repair customer fractures will not only be valued - they will leave deep impressions. And if we can understand customers and bring that understanding into the decision-making process, we can bring tremendous value to our clients. Christine McKinnon, head of Intelligence at Dentsu Australia examines the ways in which people are fundamentally changing and provides tangible tips for marketers and brands to act now.
A DISTRESSED CONSUMER What people need is empathy, action and genuine support. Brands need to understand what implications this has on their customers and how they will respond, connect and engage with marketing message.
A DISCONNECTED CONSUMER Help people reconnect, recharge and reboot coming into 2021. Once the pandemic passes, tangible and sensory experiences will be highly demanded. But while new social norms, brands need to step up and help consumers discover the true engagement potential of virtual experiences.
A DISILLUSIONED CONSUMER Consumers are now expecting brands to help in the ‘new everyday life’ and do what’s worthwhile. When people see brands looking out for others, or partnering with other aligned causes/ organisations, this helps build brand trust, respect and customer loyalty.
Tips for marketers: 1. Steer clear of using consumers’ pain as a marketing strategy. Is your brand making people feel better? 2. Think about ways to connect with consumers through positive content. 3. Campaigns should be understanding, empathetic and helpful. 4. Help people ask for help. Reduce stigma around asking for help. Offer actionable tips and resources.
Tips for marketers: 1. Reimagine your brand experience for the virtual age and unite consumers either literally or through comradery. 2. Invest in personalised virtual experiences. 3. Think about how you can blend virtual and physical experiences for when restrictions ease.
Tips for marketers: 1. Helping your customers help other people is a great initiative 2. Recover some of the brand values that make us proud in your campaigns. 3. Be relevant. Demonstrate that your brand has a purpose and serves a real need for people. 4. Stay close and truly support local communities.
1
OPPORTUNITY: Human sentiments
HOW TO ADAPT YOUR BRAND TO CHANGING BEHAVIOUR.
Tap into 2 current waves of human sentiments: 1. A rebellion toward Covid19. 2. A settling and (moral) adoption of the new normal.
From observations 1. Social distancing, masking, hygiene (social behaviours) 2. Cautious living (consumer mindset) 3. Covid19 shaming (mask/travel/social distancing shaming) Broadly speaking, people are either fighting against newly established social norms such as social distancing and masks wearing. Or they have accepted and assimilated them as their new default - with some even advocating new (moral) social behaviours. Both hold the danger of tipping into political tribalism: “freedom” fighters or “moral” shamers.
Human sentiments
1 Absoluut’s campaign for Belgian corona app cleverly makes uses the current negative sentiments. “Ik ben het beu” in Dutch roughly translates to “I’m sick and tired” or “I’ve had enough” is filled in with daily activities that we took for granted until Covid19.
2
OPPORTUNITY: Ecommerce
FINALLY. THE CHANCE TO DO DIGITAL RIGHT.
A disconnected consumer when the light switch turned on and off. Focus on solving consumers’ pain and frustration.
From observations Even for a giant like Ikea U.S. whose e-commerce business doubled over this time - but without the capacity to handle it. Since then, the store shifted to a new online system that lets customers track and cancel their orders. Perhaps the most complex thing in recent months has been to keep it simple. Smart brands realize this and not only focus on digitization and technology, but more on the human experience.
Ecommerce
2 Mobile users have an even higher abandonment rate of 85.65 percent Although more digital buyers will use smartphones than desktops to shop. Barilliance says, “the smaller the size of the screen, the more likely a customer is to not purchase.� Digital Commerce show shoppers like us lack the information to make educated buying decisions.
Coolblue is praised by customers and foes for its digital customer experience. Yet the brand, which originally only existed digitally, is opening more and more physical stores.
3
OPPORTUNITY: Domestic travel
MAKE A NEW BEHAVIOUR A NEW HABIT. Creative holidays are key. From key triggers - National lockdowns - International travel bans
From observations Travel habits are changing. When times were better and more secure, people ventured farther out. But a weaker economy or pandemic worries would only explain part of the shift. Is it fun? We often forget that travel is an exciting bundle of inspiration, preparation, events, rituals where they arrive. People were pleasantly surprised by what they can get out of RV’s, road trips, train journeys, not just the idea of nearer thus safer destinations. We will continue to look to explore the treasures close to home, to social-distancing escapes in crowd-free places – without losing sight that most travellers are still after adventure and experiences, along with expectations of safety and flexibility. "Trips will not just need to be financially protected to give you peace of mind, but they will need to deliver on every level and offer something you simply cannot get at home – special access, unique insights, stand-out experiences," says Tripsmiths' Founder, Charles Starmer-Smith.
Domestic travel
3
The latest longest-going campaign of travelling in Flanders now aims to instil habits of taking a “safe, fun and no hassle” break without breaking the bank. This behaviour has been helped by their preference of travelling by car. Absoluut kickstarted the “We’ve missed you” campaign back in June.
4
OPPORTUNITY: International tourism
LET’S BUILD THE ESCAPE TOGETHER.
If not now…then later. If not this, then something else. But it will happen! From observations If 2020 is the lost year for travel, 2021 could be travel recovery year. 1. Replacement/”redo” vacations 2. Travellers who had waited out 2020. The desire to travel is ingrained in human nature and people will want to travel, and once they can from a safety and money perspective, they will return, says Morningstar analyst, Dan Wasiolek. Besides there's a lot of evidence of travel intent in 2021. Over the last four weeks, Skyscanner.com has seen a 368% jump in searches for international destinations for travel in January. Its data suggests this growing consumer confidence continues, with searches for travel in July, rising by 94%.
International tourism
4
Tourism New Zealand opted to keep the "brand of New Zealand alive”. ’Messages from New Zealand’ provides a 'halo' effect around the wide range of New Zealand companies that trade with the world, our food and beverage exporters, our tech companies, our investors.”
The U.S. Travel Association has a simple message for the country: Let’s go there. Anywhere. Literally, anywhere. It doesn’t have to be tomorrow, but please, put something on the calendar.
5
OPPORTUNITY: Financial solutions
TREAT MONEY DIFFERENTLY.
Money ≠ value ≠ transaction
From observations Covid-19 is providing the manufacturing, service and transportation sectors more incentives to automate than ever – resulting in wider adoption of digital payments, digital invoicing and generally more creative financial solutions for business payments. But despite the shifting retail landscape, consumers are still looking for inspiration, convenience and value.
Financial solutions
5 Klarna says “Hello!” to Belgium with unique payment proposition. In June, Klarna launched ‘Pay in 21 days’, Belgian shoppers can now purchase their goods from their favourite online stores and try them before footing the bill.
Wish lists, inspiration, deals and price alerts – new features land in the Klarna app. Tailored to consumers' priorities and enhancing their shopping experiences.
6
OPPORTUNITY: Luxury/social influence
FANDOMS AS CREATORS AS FANS.
From observations A new retail map is emerging as luxury brands are opening fewer offline locations overall, with the exception of China. Luxury brands, facing critically low tourist rates, are rethinking their approach to stores in order to be as relevant as possible to local consumers. That strategy includes continuing digital initiatives born during lockdown as stores remain open to maintain relevance. But Zoe Scaman believes that a brand’s ability to cultivate the cultural power, the community power and the commercial power of fandom, will determine a big part of their success in the next decade. Question as she’s asked: “How can we invite our audiences to use their imaginations and talents to help us build out new worlds, new characters, new ideas, new products and new services – whilst rewarding them for their efforts?”
Source: Zoe Scaman
Luxury/social influence
6 TikTok users took to the social platform to participate in the "Gucci Model Challenge" at the end of August, posting videos of themselves posing in whimsically patterned, heavily layered outfits inspired by the company's aesthetic. Despite garnering more than 12 million views, the challenge was not a savvy marketing ploy from the luxury brand, but rather an organic effort built within the TikTok community. Source
“In the fashion and luxury space it is more of an advertising move. But brands are thinking beyond marketing and social buzz (to find) ways to actually drive traffic to commerce destinations,� said Amie Song for APAC Gartner.
7
OPPORTUNITY: Real estate
Hybrid forms at work. From observations In China, employment expert Alicia Tung has predicted that in 10 years’ time, there will be a 60/40 split of onsite/remote work. Netflix’s Reed Hastings - feeling the limits of working from home, wants all his staff back at the offices post vaccine. Lord Wolfson, the boss of Next believes staff cannot learn from each other and miss interactions. But we’re more likely to have a hybrid work future as BBC reports: “Businesses around the world are also starting to think about the longer term, including alternative ways to structure work communication and hours as well as physical presence. Ideally, the best of both worlds: structure and sociability on one hand, and independence and flexibility on the other. Most people still prefer to work in a place where things happen, instead of being isolated in a room or clinical spaces.”
REWORKING WHAT’S AVAILABLE.
Reak estate
7
From Starbuck’s latest one-off co-working atmosphere in Ginza, Tokyo to Belgian chic cooffices, Fosbury and Sons… To Amsterdam’s latest brainchild – Meow ('My Extraordinary Workspace’). The platform is an 'internal startup' of D / Dock, a design studio with offices in Amsterdam and Chengdu that also designs hotels. D / Dock already predicted before the corona pandemic that hotels will increasingly mix functions.
Meow - a brilliant (app) model tapping into (now abundant) hospitality spaces into an international network of flexible workspaces. A day of work is paid through Mollie, as if you were making a purchase from a webshop. will soon also be launching corporate accounts, where employees click on their employers in the app. Sort of like an Airbnb for great hotel workspaces.
8
OPPORTUNITY: Online retail
DIFFERENTIATE BY HUMANIZING. From observations Triggered by the domino effect of working at home. We are exercising, socializing, working, shopping, and more—online. It’s not just any particular demographic, it is all of us. That’s why at home retail is booming. With changes happening, the human element will persist – particularly where complexity is involved and reassurance needed. Virtual events, authentic content (especially video) has to be served with much more empathy. It doesn’t matter which channel we’re on, consumers still crave human-to-human connection. How can we create a more personalized, human experience online?
Online retail
8
Clare Vivier added tech feature from HERO “it’s just like texting a friend” on her website that allows customers to live-chat with an honest-togoodness, actually-in-thestore employee, not a chat-bot or off-site thirdparty customer-service representative somewhere out there.
While previously brand agency Pattern went into launching their own home brands - with the goal of helping people ‘enjoy daily life’.
9
OPPORTUNITY: Virtual events
DISTIL WHAT MAKES BLENDED BETTER.
Forget about the “new normal”, design something different.
From observations Skift reports that everything about the underlying economics of this huge, diverse, chaotic and highly profitable events sector is being undercut by the move to virtual. But here’s the perfect chance to do over. A conference, or an ‘event’, is a bundle. And the only thing that works right now is the content, not human interaction. But post 2020, blended/ enhanced events will probably be the “industry par excellence”. The best of both worlds –the ability to create content from a physical conference and offer it online. Streaming your live content online also means your delegates (physical and online) can access it once your event is over. How can we create unique/ worthwhile experiences that will enhance people’s lives?
Virtual events
9
Vanity Fair reported that Hollywood experimented with premieres with no red carpet but TNT’s Snowpiercer was another kind of entertainment. Jay Rinsky of Little Cinema said:“While other people are building Zoom events, we’re really focused on narrative, live human interaction and how do we get people at home to feel like they’ve been in this real-life experience.”
Some of the virtual elements they’ve done may become a permanent part of the experience.
10
OPPORTUNITY: Wellness/health
From observations Public planners know how expensive, bureaucratic and time-consuming (years) it can be to acquire land and build new parks. Urban planning professor Anastasia Loukaitou-Sideris wrote in 1995 that “the ever-changing urban form and social ecology of neighborhoods calls for a flexible rather than rigid park design and for spatial layouts that can be easily changed in response to future needs… One can even think of mobile parks — spaces whose equipment and furniture can be transported to other parts of the city if the need arises”. More significantly, the quarantine has led more people to better fitness habits (as new hobbies) than public health campaigns. Plus the domino effect of working from home has taken over offices, schoolrooms and places to socialize. The “small outdoors” holds great untapped potential for mobile recreation, especially “underparked” areas that have “underused” spaces.
THE “SMALL OUTDOORS” With transformative power.
Wellness/health
10 In the past two years, Gennep Vitaal have been busy setting up exercise activities for the residents of Gennep in the Netherlands. People get moving every week - from walking and cycling to exercising in the exercise garden.
The small outdoors transforming the idea of play and exercise. The Hill at Kesselberg in Leuven, Belgium
11
OPPORTUNITY: Silver tech
From observations
INCLUSIVITY. NOT STEREOTYPES.
AARP 2020 Tech Survey had the surprising finding that adults over 50 are adopting new technologies such as smartphone, wearables, home smart speakers, and smart home technology, at about the same pace as 18-49 year olds. But less than 5 percent of the images showed older generations handling technology, even though PEW Research has found that 69 percent of people between 55 and 73 own a smartphone. But age and generation are becoming increasingly ineffective as a means of targeting. Businesses need to make sure that they are targeting their products and services at all ages, including the over-50s. They are just as likely as anyone to switch brands and suppliers if their needs aren't being met. Source Another interesting consequence of COVID is that many 60+ have brushed up on their tech skills, such as virtual meetings and yes, even TikTok. Today, all consumers, regardless of age, seek self-fulfilment, excitement, travel, health, and wellness.
Silver tech
In Denmark, PARO, a robotic seal is used in 80 percent of nursing homes to comfort bedridden patients.
11 CNBC: Paro brings smiles to dementia patients.
Smart clothing — produced by companies around the world — is on a growth streak, a market currently valued at around $1 billion globally, and forecast to quintuple in size by 2024, driven by demand from sports and fitness users. Source
Mitsufuji biometric shirts track heart function.
12
OPPORTUNITY: Leisure
VALUE OF PACKAGE, NOT JUST YOUR PRODUCT.
From observations With uncertainty, we yearn for stability and comfort in predictability. Provide us anything under the umbrella of one-stop, safe and controlled environments: All-in-one recreation time.
Leisure
12
PepsiCo launched PantryShop.com and Snacks.com, two DTC e-commerce platforms that feature the company’s portfolio of products. At Snacks.com consumers may curate a package from the company range of snack brands. On PantryShop.com consumers may buy bundles of products organized around a daypart or activity. Source
Beckta an established restaurant in Ontario repackaged their wares into a curated subscription. “Pub in a box” by Signature Brew.
13
OPPORTUNITY: Multichannel retail
From observations The latest research supported by GlobalData Retail and Amazon (on shopping habits) shows that the highest growth rates over the past few months have come from multichannel retailers, not from pure-play online retailers. In the US, many traditional retailers have been very innovative in using their stores to offer services like curbside pickup – these will become permanent solutions for consumers. Brian Solis studied the Novel Connected Generation. “They didn’t go through the decision-making journey in a linear fashion like their traditional consumer counterparts. Instead, they jumped in and out of searches, read reviews, watched videos on YouTube, asked questions on social media, and downloaded apps, all usually from a mobile device. They expected their experiences to be defined by relevant, platformnative choices, mostly for mobile screens. They expected immediacy and convenience. Connected customers also demanded that their digital journey was integrated, seamless, and intuitive.”
HOW BORDERLESS CAN YOU THINK?
Multichannel retail
13
People shop seamlessly across online and physical, using both to meet their needs. Traditional retailers that are using their physical assets to create strong multichannel offers are securing great growth.
WIN Brands treats Amazon like a wholesale channel, balancing acquisition costs and discoverability with the “black box� nature of Amazon’s data. Homesick Candles, for instance, went from not being on Amazon two years ago to becoming the number one scented candle company and the number two candle brand.
14
OPPORTUNITY: Prediction
TAPPING INTO MEMORIES AS BRANDS.
Simple nostalgia from lockdown days
From observations According to the research of Carey Morewedge, professor of marketing at Boston University: “When we think about the past, we tend to remember positive experiences. This is sometimes called “rosy retrospection,” or “nostalgia bias.” It feels unimaginable that we could possibly crave for some of that “lockdown nostalgia”? But life has shown us again and again, that nostalgia is a futureproof concept. Because as humans, we share experiences we don't want to forget. When was the last time you baked? Remember how quiz nights made you smarter? Just putting on those running shoes was your ticket to freedom. When can you say camping backyard feels like a million miles away?
Prediction
Spotify already gets it with their new Music, meets Podcasts campaign. Consumption of “nostalgia music" shot up on Spotify during the lockdown months, shows a Centre for Economic Policy Research (CEPR) study as “a possible and relatively low-cost remedy".
While big hit FriendsFest will be back in 2021 – with even more Friends themed experiences.
14
Credits
Commissioned by We Are, network of fiercely independent agencies. Thanks to Joris Mateusen, partner & strategic Director of Absoluut.be for his strategic input and counsel, along with additional thoughts from Nicholas Gill, Strategy Partner at Team Eleven. Compiled and written with fresh market observations by MorethanOne's Maggie S.D. Khoo. We Are Vaartdijk 3/601 3018 Leuven Belgium info@weareagencies.com Distribution exclusively by member agencies of We Are. Redistribution only by prior agreement. Contact us, we’re friendly people. Disclaimer: Images used are for presentation purposes only. All intellectual property belongs to its respective authors, owners linked/credited via their original sources wherever possible. They can not be reproduced or used for commercial purposes. All rights reserved.