Review: Consumers in 2016
Introduction
Consumers have been evolving over the years, having some different characteristics, behaviors and attitudes. According to studies, consumers in 2016 are not more likely to spend more money. There was expected to be a growth in spending, but not even close to some years before. Innovation is key to make a business succeed in these new days. It is all about timing, people need to be reached in the right place, at the right time. 2016 seems to be the year of technology and communications. Consumers are interested in communicating with others, and with their homes, cars, and their other belongings. People are willing to spend in technology and devices that make their lives easier. This year’s consumers will also be more involved in social media participation with companies, and more likely to purchase products via internet and social networks. In the following review we will show demographics, new trends in spending, behaviors of consumers, etc.
?What is changing in the consumption landscape? First, the value of money. Consumers are considering more the prices and how much they will need to spend to get a product or service. More than 6 out of 10 women love bargains and sales. For example, in Sao Paulo, Brazil, people are reducing luxuries and staying only with essential products that will be really needed or will be helpful enough for their lives.
Despite this love for savings, there are some exceptions to the rule. Consumers are willing to pay for “premium” services and products when it regards to health, children products, more natural and organic food, among others.
Along with this seek for health that has been growing in the past few years, comes the need for mental wellness. Since we live in a very stressful age, business and wealthy population tend to look for solutions for their mental tension, in order to be at peace and be able to fulfill all their responsibilities the best and simplest way possible. “Consumers want to feel less pressured but more in control”.
This is not only seen in surveys, but also in holidays destinations, increased yoga retreats, mental wellness books, and even smartphone applications. The Millenials (those who were born from 1980 to late 1990s) are the population that is more receptive to any kind of publicity of marketing publication. They are the ones most opened to new ways of communicating information, but they have a special attraction to social media marketing.
Predictions for digital consumers 1. S-commerce: social media is the new way to make business. Numerous consumers have established that they have bought products through social media. It is easy to provide products or service information through social media as long as you let your followers to stay passive. Consumers feel more uncomfortable when they have to share information with their social circles. Slowly, consumers will migrate to social media buying as their usual way of spending. 2. Mobile payments: in 2015 mobile payments surpass US$670 billion across 46 markets. Mobile payments have made buying easier and faster for consumers, by clicking and buying. This type of spending is expected to keep growing in order to exceed US$2 trillion in payments through tablets and smartphones. 3. Mobile wallets: many consumers feel that mobile wallets are not as safe and convenient, and have not enough benefits as regular payments methods. But mobile wallets are expected to grow and to be more used and trusted by consumers.
Evolution of consumption Studies have shown that market in developed countries is stable with tendency to lower consumption. In contrast, developing countries are growing slowly, which means that companies that already are present in these countries will be growing along with consumption, while other new businesses will have more difficulties to expand. For example, Unilever, in developing countries has expanded significantly by selling consumer-goods. They have a very strong presence in emerging economies. Meanwhile in developed markets Unilever has started to amplify their premium products, like T2 tea, Talenti artisanal ice cream, and many others, in order to increase sales in these markets. “The strategy is to be more targeted but also more cost effective”
Source: Euromonitor International