Kjaer Global Future Forecast - Consumer Mindset and Lifestyle Report by Kjaer Global ltd

Stockholm

Vilnius

Generic

Kracow

Tallinn

Consumer Mindset & Lifestyle Report July 2008

Budapest

Moscow

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Ukraine

Copenhagen

Gothenburg

ÂŠ kjaer global - Trend Management 2008

Introduction

Generic Consumer Mindset & Lifestyle Report Table of Contents INTRODUCTION CHAPTER 1: METHODOLOGY

Background: The Questionnaire........................................................................

The Macro Trends.............................................................................................

Methodology: Tools...........................................................................................

Methodology: Process......................................................................................

CHAPTER 2: ANALYSIS

2.1 Macro Trends

Introduction to Macro Trends..............................................................................

Macro Trends 1- 12 ………………………………………………..........................

Overall Driver: Emotional Consumption.............................................................

Macro Trends: Summary....................................................................................

2.2. The Generic Consumer Mindsets

Introduction to Mindsets......................................................................................

The Premium Hunter …………………………………………………………………

The Happy Boheme…………………………………………………………………..

The Caring Explorer ………………………………………………………………….

The Spiritual Tourist…………………………………………………………………..

Consumer Mindsets: Summary...........................................................................

2.3 Survey Analysis by Region

Finland................................................................................................................

Scandinavia.........................…………………………………………………………

Central Europe..................…………………………………………………………..

Baltic Countries.....……………………………………………………………………

Russia.................................................................................................................

CHAPTER 3: CONCLUSION, RECOMMENDATIONS & FOOTNOTE

Introduction

Generic Consumer Mindset & Lifestyle Reportt Introduction TREND MANAGEMENT

“To navigate the uncertain waters of the future we need both the solid foundations of a

tried and tested methodology and the insights to inspire directions for brand and product innovation.”

Anne-Lise Kjaer Working with trend management is a proven means of reinforcing or establishing leadership

as an innovative and customer-focused company. This is an approach that has seen our clients – including Ikea, Herman Miller, Toyota, Nokia and Sony – successfully lead the field in their respective sectors.

However, the interiors, homeware and decorating sector offers a set of unique challenges, especially when we consider the rich diversity afforded by Old and New Europe. This cross-

regional report addresses those challenges, providing rare insights into established and emergent markets. It explores mindsets in Scandinavia, Central Europe, The Baltics and Russia – exposing both regional differences and shared attitudes. The report highlights key

drivers and motivations that can be used to establish future directions and cross-border strategies.

The report came about because in February 2008 kjaer global had the exciting opportunity

to conduct a qualitative survey of delegates at an international conference of design,

marketing, branding and retail experts. The 180 chosen respondents came from across

New and Old Europe: Finland 75, Central Europe 27, Russia 26, Baltic Countries 29 and Scandinavia 22. Gender was approximately 50/50 female/male distributed equally across all

age groups and regions. Their expertise in their professional lives placed them firmly in the category of early adopters. However, in their personal lives they are all ‘home creators’ and it was their individual values, attitudes and aspirations that we set out to explore.

The data collected was so revealing that we analysed and then synthesised its findings to produce this Consumer Mindset and Lifestyle report. The report provides a framework and

platform for innovation strategies and design concept generation. The report can be viewed as a stepping-stone, helping to prepare any company involved in the interiors, homeware and decorating sector for both short-term and long-term directions. Further, it provides a unique holistic tool – one that can be used to strengthen and direct marketing, product development, branding and retail activity. REPORT OBJECTIVES

Making a strong framework for future directions is integral to success. It creates a coherent corporate vision both globally and locally – it ensures you establish and remain ‘on message’.

This kjaer global report is designed to help you develop or refine that framework. The report is grounded in solid theoretical evidence and then interpreted and presented in a way that will engage and inform people at every level of your organisation. 2

Introduction

Generic Consumer Mindset & Lifestyle Report Introduction The survey was designed as a set of simple questions that would tell us about people’s

value sets, preferences, behaviour, needs and aspi¬rations. Beyond this, it looked to identify areas within interiors, homeware and decorating markets for innovative product/service development.

In synthesising the survey, we established patterns within and across markets – and also

highlighted areas where we believe there are clear potential opportunities and directions to explore. The findings of this report can be used as a platform for further directional development and as a framework for a customer-driven vision and strategy. The report should be seen as an inspiring tool that facilitates fresh thinking, identifies exciting leads and ultimately builds

and consolidates a market leading position within the interiors, homeware and decorating sector.

REPORT STRUCTURE Chapter 1 offers a fuller description of the methodology and underlying logic of the research framework. Chapter 2: 2.1 is the main body of macro trends and society drivers relevant to the interiors, homeware and decorating sectors, introduced with background knowledge of the market. 2.2 introduces the 4 core consumer mindsets relevant to the regions and sector as identified in a synthesis of the macro trends and regional insights. 2.3 forms the core analysis of the consumer mindset insights collated via the survey by regions as outlined above. The analysis sets up a model for understanding what motivates the people of tomorrow and how collective and individual motivations and behaviour influence the interiors, homeware and decorating sector as a whole. Chapter 3 synthesises the findings and provides recommendations for innovation, product develop¬ment and marketing strategies.

Overall the synthesis of the insights should inform and act as a platform for directional development and as well as a framework for a customer driven vision and strategy

Methodology

Generic Consumer Mindset & Lifestyle Report Chapter 1: Methodology – Background: The Questionnaire BACKGROUND: THE QUESTIONNAIRE The original survey was conducted in February 2008 as part of a workshop and international conference. The sample was made up of 180 delegates from five regions and is a fair representation of the demographic makeup of these regions. The gender split of the sample was approximately 50/50 across age groups and regions. For the purposes of this survey we divided Northern (Nordic) Europe into two distinct areas - Finland and Scandinavia. East and Central Europe have, due to the makeup of the sample, been clustered as a unified single region. This gave us a total of five core regions and offered the opportunity to spot similarities and differences in regional behaviour/attitudes. Emotional Perception

Feeling

Extrovert

FIG 1: Extended mindset model

Intuition

Introvert

Sensing

Judgeing Thinking

Rational The objective of the survey was to find people’s preferred way of viewing the world and where they primarily direct their energy (motivations). Together with the kjaer global mindset model the insights provided by their answers form a holistic picture of tomorrow’s consumer. The survey questionnaire is supported by Myers-Briggs personality theory, which in turn is based on C.G. Jung’s theories. The Myers-Briggs system harnesses a set of dichotomies or opposite forces that complement and reinforce the existing kjaer global ‘Consumer Mindset Model’ as outlined below. The objective is to find people’s preferred way of viewing the world and where they primarily direct their energy (motivations)

Methodology

Generic Consumer Mindset & Lifestyle Report Methodology – The Macro Trends THE MACRO TRENDS Through extensive research kjaer global has identified 12 key macro trends and society drivers relevant for the interiors, homeware and decorating sector in relation to the key regions for the survey. The macro trends are mainly clustered around/evolving in Scandinavia and Central Europe. However all macro trends are considered relevant for all regions as trends have been proven to move eastwards and become significant in emerging markets over time. It is important to understand that the trends or society drivers are directional indicators, meaning that they can point towards the aspirations of a market and indicate future con¬sumer behaviour. We use the macro trends and associated scenario generation to create Mindsets (see Chapter 2.2). EMOTIONAL CONSUMPTION In a society saturated with choice and bombarded with luxury goods and marketing messages, people increasingly look for the emotional benefits of a product or service in their quest to find or sustain meaning. While both luxury and bargain buys always hold a certain attraction, the determining factor for customers’ choices and loyalties lies in the softer, emotional dimension. We will elaborate on Emotional Consumption as the overall driver in Chapter 2. REGIONS In some regions certain mindsets appear in higher or lower concentration depending on local economy and geographical location. These clusters evolve, develop and take on a renewed meaning as the trends move eastwards across Europe. However, these trends and documented consumer mindsets are relevant right now in terms of innovation strategies and design concept generation, as well as for brand positioning and the implementation of new future strategies.

Design powered by a focus on the emotional benefits of the design becomes imperative to a success in the market place

Methodology

Generic Consumer Mindset & Lifestyle Report Methodology – Tools WORKING WITH TRENDS MANAGEMENT It is important to understand that there is not just one answer to the future - there are many. Trend management provides a tool to build up a range of mindsets and scenarios to help us recognise ways in which the market and the people of tomorrow vary individually and develop as a whole. The main objective is to understand macro trends and consumer behaviour sufficiently to be able to make informed decisions about tomorrow’s consumer needs and wants. Current trends evolve and take on new meaning according to advancements in technology and new insights into environmental issues. Political and socio-economic developments in society affect people’s lifestyle, behaviour and needs. Together these developments feed into, reflect and form people’s value sets. THE MULTIDIMENSIONAL PLATFORM The initial starting point for kjaer global’s sourcing and research is to determine the most relevant trends for the interiors, homeware and decorating sector. To do this, we create the Multidimensional Platform (see figure below). This acts as a trends filtering tool to create a holistic Trend Atlas.

There is not just one answer to the future there are many

FIG 2 kjaer global - Multi Dimensional platform

Introduction

Generic Consumer Mindset & Lifestyle Report Methodology – Tools TREND ATLAS The Trend Atlas is a visual overview of generic global trends, gathered and filtered via the Multidimensional Platform (above). This Atlas kick-starts and provides a ‘visual’ framework for Generic Consumer Mindset mapping. The Trend Atlas is a tool for decoding the broader cultural context of trends. It should be seen as a facilitator tool to interpret and communicate trends visually in a clear and inspirational way (fig. 3). The Trend Atlas has four layers representing the four dimensions: Scientific, Social, Emotional and Spiritual. The Scientific and Social dimension typically consist of quantitative data and verifiable trends. We call these the ‘harder values’. The Emotional and Spiritual is more likely to consist of qualitative and observational data. These are what we call the ‘softer values’. When using the Multidimensional Platform as a trends filter we get an overview of the macro trends that affect us on a society-wide level as well as on a personal level. By mapping out the trends most relevant/essential for your corporation, you can identify meaningful innovation opportunities and future growth areas.

FIG 3 kjaer global - Trend Atlas

Methodology

Generic Consumer Mindset & Lifestyle Report Methodology – Process INVESTIGATION Phase One: Investigation, relates to the quantitative factors. This process involves collating a wide variety of data including scientific, political, environmental and social research, assessable media influences and shifts in technology, sociology, economics and lifestyle. These findings correspond with the two dimensions in our Multidimensional Model: 1-2, the Scientific and Social dimensions. This first phase creates a foundation for moving to the second phase: forecasting and mindset creation. FORECASTING Phase two: Forecasting and mindset creation, draws on the qualitative and less tangible emotional and spiritual factors. In this phase we investigate and research trends in the wider context of society. Emotion, intuition and spiritual consciousness are the drivers here. It is vital to isolate key movements of the Emotional and the Spiritual dimensions to understand people’s current motivations and the likely implications for future thinking and behaviour. ANALYSIS The research and collection phase amasses a great deal of information and knowledge, which is filtered and analysed in accordance with project objectives. The analysis is divided into two parts: Focusing on narrowing down the many potential influences to a core of recognisable macro and lifestyle trends impacting on a specific sector or industry.

4. SPIRITUAL 3. EMOTIONAL 2. SOCIAL

Emotional

Spiritual

Social

Scientific

QUALITIVE TRENDS QUANTITATIVE TRENDS

1. SCIENTIFIC

FIG 4 kjaer-global Multi Dimensional platform

It is vital to isolate key movements of the Emotional and the Spiritual dimensions to understand people’s current motivations & the likely implications on future thinking and behaviour. 8

Methodology

Generic Consumer Mindset & Lifestyle Report Methodology â&#x20AC;&#x201C; Process SYNTHESIS The findings and insights from the survey together with the macro trends are synthesised to form a holistic analysis. The four prototype mindsets are formed on the back of the theoretic framework. The established mindsets and their distribution across the various regions, as validated by the questionnaire results, inform the concluding comments and executive summary â&#x20AC;&#x201C; ultimately providing directional recommendations for the interiors, homeware and decorating sector

ÂŠ kjaer global - Trend Management 2008

Generic

Consumer Mindset & Lifestyle Report Chapter 2.1: Macro Trends

ÂŠ kjaer global - Trend Management 2008

Macro trends

Generic Consumer Mindset & Lifestyle Report Chapter 2.1: Macro Trends · SMART TECHNOLOGY

INTRODUCTION TO MACRO TRENDS

· CO-CREATION

together, the ongoing changes forecast a quantum shift in our very understanding of what

There is no doubt: we are facing great changes both in the short and long term. Taken

· GLOCALISATION

it means to live, work and consume. This wave of changes can appear challenging but

· NEW EUROPE

is the best future strategy? Do I sit back and wait it out? Or do I ride the wave turning

· TRANSPARENCY

with the right perspective we see opportunities not threats. Still the big question is: What changes into opportunity?

· NO AGE SOCIETY

Our initial research highlighted a diverse range of trends, some more important than

· THE CREATIVE CLASS

to interpret the trends and their importance in each of the dimensions: Scientific, Social,

· FEMALE EMPOWERMENT - GLOBAL SUSTAINERS · NEW LUXURY

others. To coordinate and collate the most relevant, we used our four-dimensional platform Emotional and Spiritual. Remember, the dimensions are not isolated, but part of a ‘holistic’ method of analysing the future and generating scenarios. The following macro trends have been defined as core issues that will play a significant and fundamental role in our lives and impact on the interiors, homeware and decorating

· HEALTH & WELLBEING

sector in the future. Each trend is first described at macro level and then clarified under

· SPIRITUAL AWARENESS

trend and its impact on the interiors, homeware and decorating sector, along with our

the headings ‘Insights’ and ‘Opportunities’. These sections give a brief description of the recommendations.

Plus Overall Driver · EMOTIONAL CONSUMPTION

OVERALL DRIVER: EMOTIONAL CONSUMPTION Empathy and increasingly ethics have become important factors in understanding the consumer. Time-constrained and choice-filled lives have led people to opt for a more meaningful consumption. This means that design powered by emotions, focusing on the added benefits empowering people will become imperative to a success in the market place in the 21st century. Emotional consumption is very much a reality even if it takes on different meaning and varying importance depending on regions and local economy. In the following we have elaborated on some of the key macro trends, including the overall driver Emotional Consumption that will affect the interiors, homeware and decoration sector mid to long term.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Smart Technology Indicators “The ‘word of mouth’ effect has been multiplied by new technologies. 93% identify ‘word of mouth’ as the best, most reliable scource about ideas and information on products and services – up 25 % v 25 years ago”, Source: NOP World “By the age of 21 the average person will have spent 15,000 hrs in formal education, 20,000 hrs in front of the TV & 50,000 hrs in front of a computer screen”, ‘Ready for the future? Young people’s views on work and careers’, NESTA 2007

INSIGHTS One of the greatest benefits of technology has been the empowerment of individuals. Everything we encounter aims to be faster, better, smarter, and - in this accelerated, borderless, wireless world - we make instant choices about who we are, what we do, and what we want. We now control our lives and our environment in ways previously undreamed of. Technology is now affordable for most and as a result online networks and information inspire people to express themselves in new way and get the most of their life.

OPPORTUNITIES Technology opens up new avenues for both individuals and organisations. Future technologies and their applications will impact on many aspects of the interiors, homeware and decorating sector, from sales and brand communication/education to transparency and network building. Online it provides companies with a platform to engage and inform the consumer and also find prospective recruits and employees. This is the place to promote the ‘brand’ and to learn about your consumer in order to be an even better provider in your sector. Forums and message boards allow people both inside and outside your organisation to have a voice and share experiences.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Co-Creation Indicators Second Life have 15.1 million registered users. Coca-Cola, IBM and Toyota are among 80+ companies that have set up a virtual presence to build their brand on this platform. Sources: http://secondlife.com/whatis/economy_stats. php & Businessweek online

“Brands from Lego, Whirlpool, Fedex & Amazon to Xerox have worked with customers in this way to create new products and redesign services”, Source: Freshnetworks 2008

INSIGHTS The authorship of innovation is shifting from the few to the many. People are increasingly putting their faith in information delivered through ‘social software’ from a virtual network. Friendship networks grow and people are forming tribes across cultures, beliefs and borders as never before. Companies can now develop products in cooperation with creative consumers by tapping into their collective creativity. This allows end-users to influence goods, services and experiences in a truly empowering exchange. Your consumers also become stakeholders.

OPPORTUNITIES The idea that many people, potentially everybody, can be involved in the process of innovation is both obvious and utterly transformative. Two things are needed to make this possible. First and foremost the internet must continue in its present form and allow open source applications to thrive. Secondly people must be willing to contribute and share their knowledge in a form of intellectual altruism. It turns out that given the opportunity, most people will quite happily donate their time and brainpower in the course of interactive creation. It is a process where all sectors can learn, create and be inspired – a clear opportunity to harness contributions and opinions from your end users and grow into a stronger brand.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Glocalisation Indicators Identifying, recruiting, deploying and developing talent globally are key roles of the HR practitioner working in a global environment. Source: CIPD fact sheet international HR

The global Banking giant HSBC was one of the first to spot the potential of the glocal market and rebranding themselves as ‘The World’s Local Bank’, Source: Peter Stringham, Head

Marketing

for

HSBC

worldwide

INSIGHT We experience increased global connectivity and integration between nation-states, corporations and individuals. Increases in human migration, international trade, free capital flows, and the dissemination of technology affect us all on a global level. Surveys show that an increasing number of people feel that as a result of globalisation the world has become too bland - too homogenous. The value of local cultural capital is on the increase and authenticity is one of the key drivers behind emotional consumption, which in turn is sparked by a desire for meaning and belonging in a fragmented world. This reaction is called glocalisation.

OPPORTUNITIES Local (locally sourced, locally produced) has become a new currency and will carry increasing importance as it sustains our sense of belonging. Understanding local markets in terms of behaviour, motivation and aspirations will enable companies to target specific area needs/wants and grow their audiences regionally without diluting the core brand. People yearn to belong and at the same time remain individuals. ‘Think global act local’ should define design development within the interiors, homeware and decorating sector.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – New Europe Indicator Consumer trends traditionally associated with Western markets will continue to thrive in the New Europe over the next five year period. Source: Euromonitor as quoted in Brand Strategy 2007

INSIGHTS The transformation of Europe is creating new tribes and patchwork communities, each responding to their own situation, economy and opportunities. These New Europeans demand fresh solutions to fit their complex lifestyles. Editing power, easy access and mood consumption top their agenda. Growing economies and more disposable spending power among the middle classes are presenting both challenges and opportunities. New markets are emerging but competition is intensifying.

OPPORTUNITIES As the New Europe joins Old Europe’s sophisticated, worldly consumers they too become exposed to many cultures and traditions and this cultural cross-pollination adds intriguing opportunities. In some parts of New Europe, interiors, homeware and decorating products are still viewed as necessary maintenance rather than a means to create and define lifestyle and identity. But as trends and styles disseminate this is set to change. In the quest to gain market share in these growing markets it is pertinent to focus on the related interest consumers have in origin and heritage – both powerful building blocks for companies in a world where emotion and the quest for authenticity dominate.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Transparency Indicators The case for incorporating an awareness of social and political trends into corporate strategy has become overwhelming, SOURCE: McKinsey Quarterly 2007

“Global capitalism is at a crossroad, corporations are the ones with the technology, resources and global reach required to create a more sustainable world”. Stuart L. Hart, Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World Most Difficult Problems

INSIGHTS Global challenges – reported online and via 24/7 news – lead to a culture of anxiety and scepticism, but also encourage personal awareness. Social networks and blogs have empowered the consumer, and word of mouth is increasingly powerful as the online community gains mass. Businesses and governments must respond by being transparent and social responsible, implementing ethical and sustainable solutions in their future strategies. However, constant public scrutiny means it is vital not to overplay or – worse still – invent those green credentials.

OPPORTUNITIES A proactive stance together with a transparent operation and accountability in relation to pollution, conservation of biodiversity and natural resources will ensure leadership and customer loyalty. The emotional consumer demands transparent services and sustainable products that appeal to their personal ethics and emotions, as well as to their practical needs. Transparency implies openness, communication, and accountability. People want products of defined origin and clear traceability in order to sustain more meaning.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – No-Age Society Indicators Today 450 million worldwide are over the age of 65 ( 7% globally). It will triple by 2050 to 17% globally. SOURCE: Innovation in the Pharmaceutical Industry

There is no such thing as age, the world can only be segmented based on behaviour. The future of Marketing is based on even handed, intelligent, inclusive strategies.” Simon Thompson, Marketing Director, Honda (UK)

INSIGHTS Our society is ageing. Some take the view that this could lead to an unsustainable burden for future taxpayers. On the other hand, we witness a slow but significant attitude shift with a more positive social, cultural and corporate mindset towards age and ageing. In the west the baby boomer generation not only has considerable spending power, but remains a segment that is underdeveloped comparative to its potential. It is worth noting that despite the conventional belief that the ageing population is brand loyal there are now indications that this group are as diverse and changeable as the generations behind them.

OPPORTUNITIES The potential of the first ‘me-generation’, the baby boomers, is immense and should not be ignored. This is a very active generation - accustomed to having a voice and role - and they show no signs of slipping out of the limelight in the ‘Third Age’. What is certain is that here we have a savvy, trend and design aware audience looking for positive offerings, as well as convenience, a touch of luxury and good value for money. It is important to cultivate a positive stance towards the ‘Third Age Consumer’ as this can both win market share and help predict spending habits of the future. Understanding this segment and tapping into their needs and desires will be crucial for the future of the interiors, homeware and decorating sector as a whole.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Creative Class Indicators “What matters today is quality of place. The key factor today revolves around the ability to attract talent and unleash it on broad cross section of the poplulation. An energised city is a place where creative, entrepreneurial and forward thinking people want to be” source: Richard Florida in Monocle july/august 2008

“In the creative class, tolerance is a measure for cities and regions’ openmindedness. This is vital because diversity is seen as an important factor in facilitating the dynamics that spin off innovation” Source: ‘Technology, Talent and Tolerance – The Geography of the Creative Class in Sweden’

INSIGHTS With the economic shift towards technology and the increasing power of the internet and its related fields, a new class of knowledge workers, intellectuals and artists is emerging. The rise of the Creative Class profoundly influences work and lifestyle issues and represents a key driver of urban and regional growth. A responsible and cohesive group, attracted to places that are characterised by a climate of tolerance and receptiveness to fresh ideas and new people. Stimulating and engaging encounters and experiences are their driving force. Social networks connect people allowing them to share ideas and recommendations.

OPPORTUNITIES Creative people are generally early adopters, driving ideas and lifestyle trends and ultimately influencing the cultural and business climate crucial for regional development. To attract the creative class as customers, as a human resource and as drivers of your brand it is important to look beyond the obvious sales or service messages and offer up holistic solutions. Products and services should be presented as a total experience in order to engage this audience. In the words of The Experience Economy author B. Joseph: “Businesses must orchestrate memorable events for their customers - memory itself becomes the product - the experience”.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Female Empowerment Indicators I has been estimated that women drive 75% of the home improvement purchasing decisions in a household. Source: Ace Hardware America’s “To Do” List Study]

“Many young women are excelling in a world governed not by their rules, but by rules set and enforced by men. For the first time in history these ‘elite women’ can succeed in any career they want.” Source: The Observer, Sunday March 26 2006

INSIGHTS We are now witnessing the emergence of the empowered woman. She is an emphatic leader, an innovator and an entrepreneur. Most of all she is an invaluable asset to any community, government or organisation. Women now feel empowered to tackle not just the decisions, but the home improvement projects, creating surroundings that reflect their feminine and personal style and express their own values. Taking on the hands-on and decision making roles that were once the preserve of men is a natural progression since more and more women are now buying their own homes and controlling their own (and their work organisation’s) budgets.

OPPORTUNITIES Interior decorating and home-focused courses are attracting women in record numbers. Providing all-woman courses or web-based forums to share experiences and swap ideas makes women feel freer, enabling them to communicate new ideas and to take risks. Aesthetic (rather than purely practical) improvements are still of greatest interest to women. This opens up possibilities for the interiors, homeware and decorating products sector to anticipate new lifestyle and stylistic trends, and communicate this knowledge in an empowering way to the female consumer.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Global Sustainers Indicators Active citizenship is about ‘taking part’ and making a direct and positive contribution to the community. Citizenship is not about facts; it is about values and aspirations. Source: The Guardian 05.11.05

“The message for all policymakers seems clear: conservation action that cuts across the whole set of human impacts is needed now in many places around the globe.” Source: Intergovernmental Panel on Climate Change (IPCC) report 2007

INSIGHTS The influential and informed individual practises sustainability by doing – applying it to all levels from employment preference to lifestyle. They make their choice ethical and are determined to leave the planet in a better condition for tomorrow’s generations. The direction taken by leaders of industry towards lowering pollution levels and supporting good causes will be an overriding factor in gaining support and collaboration from this growing class of influential and knowledgeable consumers. Sustainability will drive the agenda, but crucially also geopolitical questions and social responsibility issues – forming a trinity of concerns in relation to our global future.

OPPORTUNITIES The rise of the Global Sustainers is an opportunity to review corporate green standards on many levels, from sourcing & production to formulation, transport and marketing. There is a huge rise in interest in ethical and sustainable products for the home as these are per¬ceived as not only better for the environment but also for the people using them. Tradition¬ally small-scale independent producers dominate this category. However, there is signifi¬cant opportunity to widen the market, most specifically if product positioning/cost is justified through clear end-user benefits.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – New Luxury Indicators There is no such thing as a luxury good. There is no such thing as a luxury object. It’s just an object with a luxury story attached to it,” James Twitchell, author of “Living it Up: America’s Love Affair with Luxury.”

There are some other components of the new luxury on which everyone agrees [ ] It has to involve experience. And it is never necessary, the distinction lies in the objects that are now considered luxurious. ‘What luxury means now” By Vanessa Friedman, Financial Times

INSIGHTS The more access people have to luxury brands the more they want exclusivity and bespoke solutions. Moreover, this tendency also illustrates a growing reaction against unethical overconsumption of luxury goods and services. The anti-excess message is already challenging the ‘having it all’ mentality that has dominated for many decades. Brands and retailers will have to design experiences into their offerings, appealing not only to the rational value oriented side of people but also to the emotional side. Companies must help people tell unique stories through a retail experience that foster a sense of balance: belonging as well standing out as individuals.

OPPORTUNITIES Providing exclusive access to services or a holistic and sensorial experience in the retailing environment is one way to deal with the demand for ‘upgraded’ experiences and goods. Limited editions or a home decoration service helping you find your own unique style are two low cost options for upgrading services and promoting loyalty and positive word of mouth recommendations. Again it is all in the balance: offering ‘value for money’ and a touch of aspirational luxury. As part of the New Luxury trend, some brands and retailers already integrate an element of breathing space into their offer creating empowering spaces and a powerful brand statement.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Health & Wellbeing Indicators In an increasingly stressful world, more and more of us are visiting retreats to stay sane. All we want, it seems, is peace quiet and a place to be alone. Source: The Observer There is growing evidence that focusing holistically on wellness can reduce health-care costs by emphasising prevention over treatment. Source: The Economist January 2007

INSIGHTS Indeed health concerns have changed the face of western culture. ‘New’ diseases – including obesity, depression and stress – are judged to have reached epidemic proportions in some societies. The response is to adopt a more holistic and balanced lifestyle – and it is now widely recognised as the best approach to a happier and healthier life. A healthy body and mind has become a new form of capital. People want to feel good and living optimistically is a sound investment in the future helps them maximise life and its opportunities.

OPPORTUNITIES Feedback technology, self-help and self-monitoring are key in a performance society where people want to improve their health and wellbeing and live life to the full. Consumers want to know that not only are they protecting the environment, but are also safe using the products themselves. Clear labelling and constant reduction of potentially harmful irritants, as already seen in beauty products and some interiors sectors (eg, paints) are attractive to an audience focused on personal health and wellbeing. The creation of home spas and ‘wellness rooms’ is another sector with huge potential for growth, as people seek to create a positive and relaxing sanctuary in their own homes.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Spiritual Awareness Indicators ‘Spa Fusions’ are Western spas which draws on inspiration from diverse global healing traditions. Source: The Sunday Times

IBM gives employees performance points for working out, walking and meditating (Source IFTF 2005)

INSIGHTS We have become more and more comfortable with the universal values of the Eastern mindset. The calm, reflective and soulful is sought out in the time-honoured quest for substance and meaning. Detox spaces, away from our everyday lives, gain ground as we seek to find balance and calm away from our frenetic daily lives. Finding inner peace is essential in a society where time is a commodity. Our openness to alternative ways of finding personal direction is increasing. The way in which we decorate and live in our homes is clearly reflecting this trend. Each space is becoming visually interlinked and both must be experienced as a comfort zone.

OPPORTUNITIES Many consumers will value simplicity through intelligent reduction of options. Focus on the essential is the magic formula for a generation inundated with choice. Creating calming home environments through strategic use of colour is already a big trend. On a practical level colour can help us take tension out of a stressful environment and its therapeutic value is a valuable way to tap into the opportunities this trend represents. There is also increasing recognition of the value of sensorial environments and products – those that stimulate all the senses and add beauty and warmth to our lives.

Macro trends

Generic Consumer Mindset & Lifestyle Report Overall Driver – Emotional Consumption Indicators Consumers today are willing to pay a significant premium for goods and services that are emotionally important to them. Michael J. Silverstein, co-author of “Trading Up: Why Consumers Want New Luxury Goods”

Businesses must orchestrate memorable events for their customers and memory itself becomes product: the “experience”. The value added by the business is over and above its inputs. The Experience Economy, B. Joseph Pine II and James H. Gilmore

INSIGHTS Living in a developed economy with our basic needs covered we have both the time and capital to engage ourselves in personal development or so-called ‘self actualisation’. The Future Foundation found that ‘personal fulfilment’ was the top priority for 50% of British adults, compared with 25% in 1983. Tomorrow’s individuals want ‘Emotional Consumption’ and meaning – engaging their hearts as well as their heads in the choices they make. This trend is driven by communal values and universal issues overriding income-level, gender, age or geography. Emotions inform consumption choices, but also shape attitudes to public services, career, regulations and politics.

OPPORTUNITIES It is important to note that emotional values become more important as societies develop in complexity and choice. Organisations must act on this desire for emotional consumption by fostering a climate that fosters the free exchange of ideas and empowers those both inside and outside the organisation. It has never been more vital to recognise the power of emotion to shape consumer attitudes and inform choices.

Macro trends

Generic Consumer Mindset & Lifestyle Report Macro Trends – Summary MACRO TRENDS SUMMARY Four core themes emerge from synthesising the Macro Trends documented above. These are indicative of the areas of importance and illustrate the future opportunities for the interiors, homeware and decorating sector. To connect with the consumer, enhance brand experience and retain and nurture talent within your company you must deliver: SMART SOLUTIONS Utilise intelligent technologies and applications to facilitate, educate and emotionally connect with people. EMPATHIC LEADERSHIP Make exchange of ideas part of your corporate ethos to empower people and encourage emotional intelligence. This will set tomorrow’s agenda both inside and outside the organisation. INTERACTIVE RETAIL, WORK AND ONLINE ENVIRONMENTS Stimulating environments promoting meaningful and inspirational interactions will shape future retail, workplace and online brand spaces. MEANINGFUL VALUES Social and humanistic values are essential in a society with a strong demand for empathy, sustainability, growth and above all a better quality of life.

Generic

Consumer Mindset & Lifestyle Report

Chapter 2.2: The Generic Consumer Mindsets

ÂŠ ÂŠ kjaer kjaer global global -- Trend Trend Management Management 2008 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report Chapter 2.2: The Generic Consumer Mindsets â&#x20AC;&#x201C; Introduction to Mindsets kjaer global - Mindset Model

INTRODUCTION TO MINDSETS Kjaer global work with 2 contrasting MINDSET prototypes: the Me-oriented people and the We-oriented people.

Emotional

On the right half of the circle we have the Me-oriented individuals focusing on life according ME

to themselves. In the left half of the circle we find the We-oriented individuals focusing on the more collective values relating to the group. Emotional

Rational

Holistic Segmentation Model

Rational

Based on indicators such as taste, style and socio-economic status, our research shows that consumers lean towards either the Rational or Emotional values.

ÂŠ kjaer global - Trend Management 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Introduction to Mindsets kjaer global - Mindset Model

In the top half of the circle we find the EMOTIONAL: Emotional means Softer and qualitative – this customer focuses on: “How does this product feel?”

Emotional

Other issues falling into the EMOTIONAL category are: ME

Rational

•

Social responsibility/transparency

•

Smell and texture (wellbeing associated with using the product)

•

Environment

•

Brand as educator/inspiration and facilitator

We describe the lower half of the circle as RATIONAL: Rational means Factual and quantitative – this customer focuses on: “How does this product function?” Other issues falling into the RATIONAL category are:

•

Price/value

•

Convenience (ease of purchase and use)

•

Health and safety

•

Choice and options

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets â&#x20AC;&#x201C; Introduction to Mindsets kjaer global - Mindset Model

Emotional

This is the basis for generating four consumer prototypes: The rational me-oriented type (lower right quadrant):

The Premium Hunter

The rational we-oriented type (lower left quadrant):

The Happy Boheme

The Emotional we-oriented type (upper left quadrant):

The Caring Explorer

The Emotional me-oriented type (upper right quadrant):

The Spiritual Tourist

Rational

In the following we will take a closer look at the four mindsets in more detail

Emotional

Rational 29

WE PEOPLE - COLLECTIVE VALUES

ME PEOPLE VALUES 2008 ÂŠ kjaer global --INDIVIDUAL Trend Management

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Premium Hunter Premium Hunter: Rational Me-Type

Energetic and optimistic, they make the most of all life’s opportunities – this is why a Premium Hunter thrives in the fast-paced urban environment. Style and appearance are important and their home reflects a keen eye for design and

Emotional

trends. Always busy, they look for products that free up time. Premium Hunters love changing things around - redecorating and reorganising at home or changing their ME

style. Being strong and active is embedded in the routine so time off is filled with activities - city breaks, extreme sports or partying with a group of friends. Work is equally fast paced

Rational

and they take the lead whenever possible. As a risk taker, Premium Hunters are natural entrepreneurs and born networkers. Technology equals independence and allows them to stay connected. Premium Hunters are attracted to the finer things in life. They enjoy luxury and status - from elite seats at the football stadium to upgrades on their favourite airline. Proud of their achievements they do not mind if their success is visible to the world. As Experience Seekers, they respond positively to change and spontaneity. The future is viewed with optimism, but living in the here and now is what matters. Premium Hunters make permissive parents and exciting partners. REPRESENTATION The Premium Hunter values are represented across the regions as seen below. We find the highest number of Premium Hunters in Russia and the least in Finland.

10%

21%

Avarage representation over the Regions

Finland

21%

Scandinavia

16%

Central Europe

23%

Baltic Countries

35%

Russia

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Premium Hunter Premium Hunter: Rational Me-Type

KEY VALUES & TRENDS

Emotional INDEPENDENT Smart Technology ME

ELITE New Luxury Rational

EMPOWERING The Creative Class

The self-empowered Premium Hunter belongs to the creative class. Smart technology is key to their independence. A contrasting personality demands fast fun – they are always in pursuit of the elite privileges of New Luxury.

HOW TO SPOT : Preferences & behaviour of the Premium Hunter

•

Home decoration/renovation as a hobby

•

Members Only executive clubs

•

Values Progress and novelty

•

Elite home websites

•

Home theatre with a couch complex

•

Personalised interactive media

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets â&#x20AC;&#x201C; Premium Hunter Premium Hunter: Rational Me-Type

Emotional

INDICATORS & INSIGHTS

By 2020 over 60% of all diseases could

By 2010 in EU, the average person

be stress related

will spend more than 60 hours a week consuming media

People seek products that give them Rational

back time and are willing to pay extra

Single-person households spend 50%

for them

more on CPG than 2 adult households

CASE: Apple flagship Store - New York - The elite retailer integrates an element of breathing space into their offer creating an empowering space and a powerful brand KEY VALUES & TRENDS

statement. - Apple partially hand over the brand space to the independent

INDEPENDENT Smart Technology ELITE New Luxury

consumer for their freedom of use, to build a greater level of connection and loyalty.

EMPOWERING The Creative Class 32

ÂŠ kjaer global - Trend Management 2008

Mindsets

ÂŠ kjaer global - Trend Management 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets â&#x20AC;&#x201C; Happy Boheme Happy Boheme: Rational We-Type

Home means everything and family, friends and tradition are greatly treasured. The Happy Boheme may put down roots in a range of places - from urban village to the countryside. They can be of just about any age or income and what truly defines them are their values,

Emotional

based on simple common sense and tradition. Home is where quality time is spent and they invest in keeping it in top condition. A Happy Boheme enjoys contemporary ME

comforts - without being too fashionable. Decorating makes for a fun hobby as much as maintenance. Work must be of value - interesting or useful - but it comes second to family life. Lasting

Rational

pleasures and memory-making hold a central role. Looking back on an experience may be as important as the moment itself. Wellbeing is measured in terms of health and happiness. The internet is for learning and sharing interests with likeminded contacts. Happy Bohemes are informed consumers and price and service are vital. They like to feel special but arenâ&#x20AC;&#x2122;t swayed by lofty promises. As Security Seekers, they need to belong. Good causes and community get a Happy Bohemes support because often they feel more privileged than most. Pragmatic about the present and nostalgic about the past, their faith in society is strong - although they may sometimes worry about what the future holds. REPRESENTATION The Happy Boheme behaviour and values are dominant across all regions except Russia where they come a close second.

35%

Avarage representation over the Regions

42%

41%

Finland

Scandinavia

31% Central Europe

33% Baltic Countries

27% Russia

ÂŠ kjaer global - Trend Management 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Happy Boheme Happy Boheme: Rational We-Type

KEY VALUES & TRENDS

Emotional SIMPLE No Age Population ME

TRANSFORMABLE New Europe Rational

STIMULATING Co-Creation

The Happy Boheme believes in the stimulating and educational power of co-creation. A New Europe and an aging population make up a transformable, diverse group united in pursuit of a simpler life where social exchange is a priority.

HOW TO SPOT : Preferences & behaviour of the Happy Boheme

•

Practical home improvement & maintenance •

Educational & empowering websites

•

Active & healthy lifestyle

•

Space for imagination & activities

•

Family outings & get-togethers

•

Focus on family content & culture

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Happy Boheme Happy Boheme: Rational We-Type

Emotional

INDICATORS & INSIGHTS

In 2001 the nuclear family only ac-

For many, the best thing about being

counted for 22% of the population

50+ can be summed up in one word: freedom. This may be freedom from

Rational

Mood Consumption tops the agenda –

work, from responsibilities or from

design takes on board both emotional

financial worries

and physical needs

CASE: Intrepid Travel, London, UK - The travel agency’s aim is to introduce the brand to a new transformable audience seeking simple ideas and stimulating solutions - It contains a ‘pick and mix’ area, where customers can choose the ‘ingredients’ and be co-creators of their perfect KEY VALUES & TRENDS

holiday – each ingredient is depicted on an individual card

SIMPLE No Age Population Transformable New Europe STIMULATING Co-Creation 36

Mindsets

ÂŠ kjaer global - Trend Management 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Caring Explorer Caring Explorer: Emotional We-Type

A sense of fairness and ethical principles defines the Caring Explorer. They are part of a growing circle, sharing values on a deeper level. Whether a Caring Explorer lives in the city or country they ensure they love to be close to nature and cultural playgrounds. This

Emotional

is evident in their home - natural materials and colours are preferred and they are ardent recyclers. ME

As part of a tight-knit group of likeminded friends, they strive for sustainability and believe in ‘One Planet Living’. Influenced by other cultures and handicraft their home reflects of their value sets. Decorating is both to improve and maintain - they love to create a sociable

Rational

and engaging environment. Work should be meaningful and weekends are taken up with local community work and cultural exploration. They demand high standards of everything they buy and use. Preferred holidays must have a green dimension and a closed encounter with other cultures. The internet is a tool for connecting and learning - and for influencing others’ behaviour. Caring Explorers take advice and gather information to ensure they make the right choices to preserve and respect the environment and other cultures. They believe that all companies should be transparent and accountable. As Ethics Seekers, they are respected for their caring attitude. Passionate about the present they want to make a positive impact on the future. REPRESENTATION The Caring Explorer’s values are represented across the regions as seen below. The Caring Explorer has a small but solid foothold in all the regions.

22%

Avarage representation over the Regions

25%

Finland

17%

Scandinavia

27%

Central Europe

20%

Baltic Countries

20%

Russia

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Caring Explorer Caring Explorer - Emotional We-Type

KEY VALUES & TRENDS

Emotional ETHICAL One Planet Living ME

AUTHENTIC Globalisation/Glocalisation Rational

THOUGHTFUL Transparency

The ethical and thoughtful Caring Explorer pursues meaning and cultural experiences. Their morally sound attitude reflects their belief in ‘One Planet Living’ and the value of glocalisation. They demand transparency and authenticity on all levels from work to lifestyle choice.

HOW TO SPOT : Preferences & behaviour of the Caring Explorer •

Decorating jobs to maintain and add

•

Personalised & informative website

feel-good factors

•

Informed on green & ethical issues

•

Sustainable living & products

•

Goodwill shopping & charity work

•

Healthy uncomplicated attitude to life

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Caring Explorer Caring Explorer - Emotional We-Type

Emotional

INDICATORS & INSIGHTS

There is a growth in ‘cause brands’, which

The new challenge is to design goods

stand for something other than the brand

that are ‘on trend’ but also: biodegrad-

itself

able, less polluting, last longer, involve local community and are eco-efficient

Ethical banks & banking are growing Rational

to produce

as people increasingly question existing investment and return principles

CASE: Camper Hotel & Foodball Cafe - Barcelona - The unique and authentic Camper hotel is next door to its Foodball café. The ethically sound hotel has sustainable solutions throughout the building - The hotel concept ‘a home away from home’, it thoughtfully offers each guest two unique private spaces, one for sleeping and one for working or relaxing KEY VALUES & TRENDS

ETHICAL Transparency AUTHENTIC One Planet Living THOUGHTFUL Globalisation/Glocalisation 40

Mindsets

ÂŠ kjaer global - Trend Management 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Spiritual Tourist Spiritual Tourist: Emotional Me-Type

The Spiritual Tourists are universal aware and want a sense of calm in their everyday lives. Having a worldly and open-minded mindset they form part of the growing market for coaching and other self-development. They are Avid yoga fans embracing the Eastern body, mind and

Emotional

spirit philosophy. Unconventional, optimistic and creative, they will always find their own route to happiness and ME

this explains why Spiritual Tourists are found in such a wide variety of locations. Be it a converted warehouse, rural retreat or city central, the aim is to be slightly outside the mainstream. Home is a place for reflection, contemplation and creativity. They have a strong aesthetic sense,

Rational

setting trends rather than following them. Home decor is a passion and all the senses are integrated to create an inspiring and holistic environment. Spiritual Tourists continually reinvent themselves and the environment – space clearing and good energies are key to them. As a health & wellbeing addict, work-life balance is important. They incorporate me-time into their routine for spas and retreats and have chosen a job that reflects their lifestyle aspirations. Technology is opening new avenues for creative expression and the search for meaning inspires self-knowledge. Spiritual Tourists look for products and services that enhance experiences and awaken the senses. As Identity Seekers, they demand deep relationships and look for a bit of romance in the everyday. They trust emotions, intuition and belief. REPRESENTATION The Spiritual Tourist’s values are represented across the regions as seen below. We find the highest number of Spiritual Tourist in Central Europe and the least in Russia.

22%

Avarage representation over the Regions

22%

Finland

22%

Scandinavia

26%

Central Europe

24%

Baltic Countries

19%

Russia

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Spiritual Tourist Spiritual Tourist - Emotional Me-Type

KEY VALUES & TRENDS

Emotional OPTIMISTIC Health & Wellbeing ME

UNIVERSAL Spiritual Awareness Rational

EMPHATIC Female Empowerment

The optimistic Spiritual Tourist pursues spirituality in many ways, including an almost ritualistic quest for personal health and wellbeing. They are engaged in universal values. Life-balance is a priority and female empowerment leads the way for a new emphatic leadership.

HOW TO SPOT : Preferences & behaviour of the Spiritual Tourist Home decorating /colour scheming to

•

Websites with inspiring “how to” guides

promote wellbeing

•

Media with emphasis on spirituality

•

Self-help & spiritual reading

•

Spa, silence & meditation holidays

•

Personal life-coach

•

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Spiritual Tourist Spiritual Tourist - Emotional Me-Type

Emotional

Rational

INDICATORS & INSIGHTS

The fastest growing anxiety issue is ill

In 10 years time it will be as common to

health. Anything promoting good health is

have a lifestyle coach as a personal trainer

a future opportunity Input your drinking, eating and exercise Marketing to women is an essential

habits and the computerised ‘mirror’ will

survival tactic, rather than a question of

make an image of how you will look in

political correctness

5-10-15 yrs

CASE: Spa, Therme Vals - Swizerland - Stunning quartzite temple-like spa and hotel complex built over an ancient thermal baths - Architecture incorporates open and enclosed spaces and light and shade to create an atmosphere to stimulate emotions and even promote spiritual awareness KEY VALUES & TRENDS

OPTIMISTIC Health & Wellbeing UNIVERSAL Spiritual Awareness EMPHATIC Female Empowerment 44

Mindsets

ÂŠ kjaer global - Trend Management 2008

Mindsets

Generic Consumer Mindset & Lifestyle Report The Generic Consumer Mindsets – Summary kjaer global - Mindset Model

Working with contrasting mindsets provides a framework and a deeper understanding of the breadth of tomorrow’s consumers. In order to reach tomorrow’s people and address the demands of a changing society, a company must offer services that fulfil both the

Emotional

emotional and practical needs of ME-People and WE-People. The core mindsets outlined in this report address shifting values and priorities – there ME

are no set types as our values can evolve and shift throughout our lives and as our circumstances change. However, this model is very easy to navigate and represents an invaluable tool for developing relevant scenarios for the interiors, homeware and

Rational

decorating sector. It provides building blocks to create holistic brand, retail and marketing experiences. A successful company in the 21st century must offers interactive and smart solutions through meaningful and emphatic understanding of consumer behaviours, needs wants and value sets.

Emotional

ETHICAL One Planet Living AUTHENTIC Glocalisation

OPTIMISTIC Health & Wellbeing

Meningful & Emphatic VALUES

UNIVERSAL Spiritual Awareness EMPHATIC Female Empowerment

THOUGHTFUL Transparency Holistic Segmentation Model

WE SIMPLE No Age Population

ME EMPOWERING The Creative Class

Interactive & Smart SOLUTIONS

ELITE New Luxury

TRANSFORMABLE New Europe STIMULATING Co-Creation

INDEPENDENT Smart Technology

Rational In the following section the regions have been analysed according to the mindsets outlined above. 46

Generic

Consumer Mindset & Lifestyle Report Chapter 2.3: Survey Analysis by Region

ÂŠ kjaer global - Trend Management 2008

Survey Analysis

Generic Consumer Mindset & Lifestyle Report 2.3: Survey Analysis by Region In this section the regions have been analysed according to the mindsets outlined in Chapter 2.2. Each Region is described in an overall analysis of the findings and followed up by graphs and specific micro insights from the four categories culled from the questionnaire that formed the basis of this report. These four categories are: Environment – in what location do we typically find the consumer? What is their attitude to their home and its belongings and what is their outlook on nature? Personal Interest – investigates areas such as preferred hobbies, holidays and leisure activities. Lifestyle & Culture – explores attitudes to culture, technology, the online environment, retail, products and consumption habits and preferences in general. Personality & Aspirations – how does the consumer perceive themselves and how do they like others to see them? Core values and aspirations are investigated.

Companies must offer products & services that are engaging and at the samne time fulfil both the emotional and practical needs of the ME-people & WE-people

Survey Analysis

ÂŠ kjaer global - Trend Management 2008

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Finland As perhaps predicted the Happy Boheme mindset dominates the Finnish Consumer base. They prefer family and traditional values with a modern spin reflected in the products and services they consume. Typically belonging to the nest building or settled life stage, they are looking for security particularly in money matters. They prefer to be located in a suburban and safe area and have or aspire to a healthy and active lifestyle. Home is their most valuable and treasured space and all issues concerning family are top priority. They invest time and money to maintain and decorate their ‘nest’. In return they expect their chosen products to represent good value for money and come from transparent companies with sound values reflected in active environmental and social policies. The internet is embraced wholeheartedly, but mainly as a facilitator (rather than a social/entertainment tool). The Finnish consumer in general likes to be informed and presented with facts. A reasonable proportion of Finns share the more radically sustainable view of the Caring Explorer regarding the environment. It is worth noting that the trend for ‘one planet living’ is growing steadily whichever mindset people identify with overall. The Spiritual Tourist is relatively well represented, particularly among Finnish women. This could indicate an affinity with the spiritual aspect of nature, which may be finding a new foothold among modern Finns. There is a new focus on mind/body balance, possibly as a reaction to a hectic modern lifestyle. When looking for cultural experiences Finnish people indicate a desire to be involved and have experiences that stimulate the senses. This opens up interesting retail and brand communication possibilities. The Premium Hunter mindset is only represented as a small, ambitious and young minority group. It consists of young men in the aspirational lifestage, where social standing and status take on greater significance. It is reasonable to suggest that this group may move on to embrace the more socially oriented values of the Happy Boheme as they mature and settle. Nevertheless this is a segment that presents niche opportunities, as they are ready to spend on products that will reinforce their social standing and tap into their love of premium and luxury objects. ‘One Planet Living’ is a trend growing in importance for the Finns independent of what overall mindset they identify with

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Finland: Environment 1. Location – Which best describes your dream location? 2. Space – How would you like your home to be? 3. Nature – What does nature mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Environment Category

• 83% of the Premium Hunters are men

• The Happy Boheme mindset dominates the Environment category by 48, 3% • 50% of the Finns like a Transformable and Simple’ Interior for their home

• 15% of the Finnish identify with the Caring Explorer mindset in Environment category

• 63% of the Finnish Spiritual Tourists are women • The Spiritual Tourist is represented with a total of 20% overall in the category

63% of Finnish Spiritual Tourists are women

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Finland: Personal Interests 4. Hobbies – Which best describes your interests? 5. Sports & Wellbeing – What does Wellness mean to you? 6. Holidays – What do you look for in a holiday?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

10 15 20 25 30 35 40 45 50

Avarage spread in Personal Interest Category

• 20% have hobbies that can be described as Active & Energetic • 12% look for uniqueness & thrills in a holiday • 36.6% of Finns perceive wellness as a matter of being ‘Healthy & Strong’ • This mindset is well distributed between men and women (60/40) • 58.5% have hobbies with a focus on Adventure & Togetherness • 30% associate Wellness with being Content & Happy

• 17.5% want to be pampered and have mind-expanding holidays • 25% of all Finnish respondents identify with wellbeing as ‘Body & Mind Awareness’

In Finland 63% look for holidays with ‘Comfort & Family Fun’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Finland: Lifestyle & Culture 7. Culture – What experiences are you looking for? 8. The Internet – What is the main benefit for you? 9. Products – What do you look for in a product? 10. Retail Environment – Your preferred shopping environment? 11. Money – What does money mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Lifestyle Culture Category

• 26% use the Internet for Convenience • 19% of Finns look for products that are ‘Luxurious & Smart’

• 26% look to culture for ‘Entertainment’ • 39% of Finnish respondents associate money with ‘Security’ • 63.4% think the main quality of the Internet is as a ‘Facilitator’ • 46.3 want a retail environment with an ‘Authentic Feel’ • The Caring Explorer outlook is the most widespread in this category • 29% prefer cultural experiences that can be characterised as ‘Sensations’ • 34% associate money with ‘Freedom’ • 26% would like to shop in a ‘Charismatic’ retail environment 26% of Finns associate culture with personal interactions

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Finland: Personality & Aspirations 12. Self-Experience – What are your key priorities? 13. Aspirations – What are your main ambitions in life? 14. What sums you up? – How would you like others to see you?

Premium Hunter Happy Boheme Caring Explorere Spiritual Tourist

0 5 10 15 20 25 30 35 40 45 50 Avarage spread in Personal Interest Category

• Only 12.2% see ‘Achievement & Status’ as their main aspiration • Another 12.2% of Finnish respondents like others to see them as ‘Successful’ • 39% place ‘Family and Community’ as their main ambition in life • 51.2% would like others to see them as being ‘Trustworthy’ • Almost half of all Finnish respondents identify with the Happy Boheme in this category • 31.7% state their main ambitions as ‘Responsibility & Social Harmony’ • Almost a quarter hold ‘Truth & Moral’ values as key priority • 22% would like others to see them as being ‘Caring’ • 14.6% would like to stand out as ‘Charismatic’ • Being ‘Unique & Spiritually Aware’ is important for 17% of the Finnish respondents

For 48.8% ‘of Finns Trust & Family values’ are the most important personal priorities

Survey Analysis

ÂŠ kjaer global - Trend Management 2008

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Scandinavia There is an indication that the Premium Hunter values are more dominant than previously assumed. This is especially true of the Scandinavian male in the empty nester life stage as this group has a strong inclination to identify with this mindset. It is a recognised trend that western society is ageing and also that there is a strong segment within this ageing population that has disposable funds. Rather than retire and settle down we see preferences for urban living and a contemporary outlook. The Premium Hunter holds a quite pragmatic and unsentimental view on nature. However, the Happy Boheme mindset is still the dominating mindset in Scandinavia though overall all four mindsets are quite evenly distributed. This insight makes it a thrilling challenge to market products to the Scandinavians, as it becomes crucial to balance a diverse range of offerings and communications with a strong and coherent brand vision. (For example, Scandinavians want to be kept updated with stylistic and inspirational trends but will not be swayed by any fad or fashions as they need aesthetically lasting products that can integrate into their existing interior to provide continuity.) Trend Co-Creation and Empowerment is well represented in Scandinavian society as there is a strong demand for involvement and a need for clear information and education. This presents opportunities in the online and retail environments. The demand for sustainability is less clear but is possibly more a reflection of the fact that Scandinavia has a relatively long tradition of caring for the environment and take as a given that these policies are already in place. Caring for family and involvement in society is the main ambition of most Scandinavian respondents and though the economy remains stable in Scandinavia, most people have pragmatic values with regard to spending and will place value for money over lofty product claims. Another benefit recognised by many respondents is products and services that educate and inspire - especially when these provide an opportunity to involve the whole family in the process. Scandinavians look for fun and togetherness in the everyday, including when they go shopping. Empowering offerings combining ‘good value’ and leading to greater freedom will be very attractive in this region

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Scandinavia: Environment 1. Location – Which best describes your dream location? 2. Space – How would you like your home to be? 3. Nature – What does nature mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist

Avarage spread in Environment Category

• 15% lean towards urban living, preferring an ‘Urban & Easy Access’ home location • However almost a third prefer their interior to be ‘Contemporary and Elite’ • The Happy Boheme mindset is the largest segment in Scandinavia with 40% • 53% prefer a location for their home that is ‘Suburban & Safe’ • 46% associate nature with ‘Something to Enjoy/Adventures’ • Only 7.7% of the sample associate nature with ‘One Planet Living/Sustainability’

• A Quarter look for an ‘Unconventional & Personal’ location to set up home • Almost a third get ‘Energy & Spirituality’ from nature

61% of Scandinavian wants an ‘Inspirational & Spiritual” home – the largest number across all regions

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Scandinavia: Personal Interests 4. Hobbies – Which best describes your interests? 5. Sports & Wellbeing – What does Wellness mean to you? 6. Holidays – What do you look for in a holiday?

Premium Hunter Happy Boheme Caring Explorere Spiritual Tourist

10 15 20 25 30 35 40 45 50

Avarage spread in Personal Interest Category

• 46% have ‘Active & Energetic’ hobbies • 24% identify with the Premium Hunter in the Personal Interest category • The Happy Boheme is the dominant mindset with 58% of the total respondents • 53% of Scandinavians look for hobbies to bring ‘Adventures & Togetherness’ • 61% look for holidays with ‘Comfort & family Fun’ • 23 % associate wellness with being ‘Content & Happy’

• The Spiritual Tourist is only represented by 7.7% in the personal interest category • 15% look for ‘Mind Expanding & Pampering’ holidays

53% of the Scandinavian respondents associate wellness with the Happy Boheme values ‘Healthy & Strong’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Scandinavia: Lifestyle & Culture 7. Culture – What experiences are you looking for? 8. The Internet – What is the main benefit for you? 9. Products – What do you look for in a product? 10. Retail Environment – Your preferred shopping environment? 11. Money – What does money mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Lifestyle Culture Category

• 38% mainly associate the internet with ‘Convenience’ • 31% look for culture they can ‘Consume’ • 38% associate money with ‘Security’ • 61% want products that can be described as ‘Sound & Traditional’ • A Surprising 0% of this sample see the internet as ‘Social’ • 46% see the internet as ‘Facilitating Abilities’ • 53% look for an ‘Authentic’ retail environments • Cultural experiences are characterised as ‘Interactions’ by 38.7% • 15% see the internet as ‘Creative’ • Only 15% look for ‘Original & Pioneering’ products • 23% want a ‘Charismatic’ retail environment 61% of Scandinavians associate money with ‘Freedom’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Scandinvia: Personality & Aspirations 12. Self-Experience – What are your key priorities? 13. Aspirations – What are your main ambitions in life? 14. What sums you up? – How would you like others to see you?

Premium Hunter Happy Boheme Caring Explorere Spiritual Tourist 0

Avarage spread in Personality & Aspiration Category

• 46% of the Scandinavian respondents have ‘Progress & Ambition’ as a key priority • Only 7.7% have ‘Achievement & Status’ as their main ambition • For 62% ‘Trust & Family Values’ are the most important personal priorities • 53% would like others to see them as being ‘Trustworthy’ • The Happy Boheme mindset is dominant in the category dealing with personal values • 25% would like to be seen by others as ‘Caring’ • 30% have ‘Responsibility & Social Harmony’ as their main ambition in life

• 15% would like to stand out as ‘Charismatic’

54% of the Scandinavian put ‘ Family & Community’ first by stating them as their main ambition in life

Survey Analysis

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Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region â&#x20AC;&#x201C; Central Europe: Regional Profile The Happy Boheme outlook dominates when it comes to location and home preferences. Interestingly it was the male respondents making up the largest numbers of this group, perhaps indicating that Central Europe has taken the softer and communal values to heart. We find women who identify with the Caring Explorersâ&#x20AC;&#x2122; values of settling in a local and green area as the second most dominant tendency. In terms of interiors, homeware and decorating, a significant group was attracted to the rich and inspirational qualities of the Spiritual Tourist. Central Europeans are in fact found to aspire to Spiritual Tourist values in many subject areas. As such, a significant proportion lean towards the sensorial and charismatic and want their products to be original and pioneering. They also equate money with the notion of freedom. However, they are balanced by another significant sector who remain pragmatic about finance - stating that money equals security. The majority of the Central European respondents are into hobbies that are active and energetic, suggesting a thrill seeking and sporty culture dominating the leisure segment. However, they are not into sport to be attractive or even fit, as their wellbeing priorities are being happy, healthy and having body/mind balance. Holidays are predominantly for relaxing and spending quality time with family, but these restful breaks are mixed with short adventures focusing on thrills and unique experiences. Interestingly, a large proportion of male respondents identify with the values of the Caring Explorer in the areas of internet, culture and retail environment - looking for facilitating, interactive and authentic experiences. This attitude is mirrored across genders when it comes to self-perception, with the majority wanting to be perceived by others as either trustworthy or charismatic. The Central Europeans resemble the Baltic Countries in this pragmatism and pay heed to tradition and family values. They value high moral standing and being responsible members of the community and are at the same time attracted to the more abstract, romantic and self-affirming values of the Spiritual Tourist. It is interesting to note that these somewhat contradictory values may actually represent a gender divide among Central Europeans. The males tend to be the grounded and respectful of traditional moral values, and the females lean towards an emotional, idealistic and romantic world view. Male respondents make up the largest Happy Boheme group in Central Europe

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Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Central Europe: Environment 1. Location – Which best describes your dream location? 2. Space – How would you like your home to be? 3. Nature – What does nature mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Environment Category

• Only 6% of the sample wanted an ‘Urban & Easy Access’ home location • 20%, associate nature with the statement ‘A Resource Providing Food’ • The Happy Boheme mindset dominates, making up 40% of respondents • 40% want to live in a ‘Suburban & Safe’ environment • 53% associate nature with ‘Something to Enjoy/Adventures’ • 20% agree with the Caring Explorer that nature is ‘One Planet Living/Sustainability’ • 33.3%, want to set up home in a ‘Local & Green Environment’ • 20%, want their home environment to be ‘Authentic & Thoughtful’ • 20% seek out a location that is ‘Unconventional & Personal’

40% of Central Europeans want a home that is ‘Inspirational & Spiritual’, the second highest number across all regions

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Central Europe: Personal Interests 4. Hobbies – Which best describes your interests? 5. Sports & Wellbeing – What does Wellness mean to you? 6. Holidays – What do you look for in a holiday?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Personal Interest Category

• 26.7% look for ‘Uniqueness & Thrills’ in a holiday • 31% of the sample identify with the Premium Hunter in the Personal Interest category • 13% associate wellness with being ‘Fit & Attractive’ • A third of the sample associate wellness with being ‘Healthy & Strong’ • 53% look for holidays with ‘Comfort & family Fun’

• 20% like holidays to have ‘Education & Purpose’ • 0% have hobbies with an element of social engagement • 26% associate wellness with being ‘Content & Happy’ • 26% associate wellness with ‘Body & Mind’ awareness • 20% have hobbies that help keep body and mind in balance

53% describe their hobbies as ‘Active & Energetic’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Central Europe: Lifestyle & Culture 46.7% of the Central Europeans view money as ‘Freedom’

7. Culture – What experiences are you looking for? 8. The Internet – What is the main benefit for you? 9. Products – What do you look for in a product? 10. Retail Environment – Your preferred shopping environment? 11. Money – What does money mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

10 15 20 25 30 35 40 45 50

Avarage spread in Lifestyle Culture Category

• 20% mainly associate the internet with ‘Convenience’ • 0% look for culture they can ‘Consume’ • 20% look to culture for ‘Entertainment’ • 46% of the respondents associate money with ‘Security’ • 36% identify with the Caring Explorer outlook on Lifestyle & Culture overall • 66% think the main quality of the internet is as a ‘Facilitator’ • 33.3% would like an ‘Authentic’ retail experiences • 33% prefer cultural experiences that can be characterised as ‘Sensations’ • 32% identify with the Spiritual Tourist on Lifestyle & Culture overall • 40% the Central European sample want products that are ‘Original & Pioneering’ 46.7% of the Central European sample associate culture with interactions

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Central Europe: Personality & Aspirations 12. Self-Experience – What are your key priorities? 13. Aspirations – What are your main ambitions in life? 14. What sums you up? – How would you like others to see you?

Premium Hunter Happy Boheme Caring Explorere Spiritual Tourist

0 5 10 15 20 25 30 35 40 45 50 Avarage spread in Personality & Aspiration Category

• 20% see ‘Achievement & Status’ as their main ambition in life

• For 33.3% ‘Family & Community’ are the most important ambitions in life • 40% would like others to see them as ‘Trustworthy’ • The Happy Boheme Mindset only narrowly dominates the Personal Values category • 26.7% define their main ambitions in life as ‘Responsibility & Social Harmony’ • 33% hold ‘Truth & Moral Values as their key priorities • 20% aspire to being ‘Unique & Spiritually Aware’ • 33.3% have Empathy and Universal’ values as key priority

40% would like others to see them as ‘Charismatic’

Survey Analysis

ÂŠ kjaer global - Trend Management 2008

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region â&#x20AC;&#x201C; Baltic Countries: Regional Profile The Baltic is shown to be an interesting and diverse market. Their outlook on the environment and nature favours the mindset of the Caring Explorers, showing the strongest desire for sustainable solutions across all regions. A substantial number of Happy Bohemes are looking to preserve their traditional values and provide a safe and suburban environment for their family. On the other hand, there is a strong attraction towards finding an individual expression for the home, reflected in the desire for inspirational and spiritual spaces. This presents an opportunity for offerings that are grounded in traditional values but also allow possibilities for self-expression and personal style based on contemporary trends. However, the respondents also indicated a need for simple and transformable solutions. Hardworking people in a speed economy will invariably be attracted to solutions that help them manage their time including time spent decorating and maintaining the home. Leisure time is preferably spent with family and friends and is predominantly seen as a break from the everyday routine, as most are looking for no-hassle comfort and family facilities. Contentedness and being simply happy are perceived as the best signs of wellness and score highly on priorities overall in the Baltic Countries. The mindset of the Spiritual Tourist dominates the category concerned with Culture & Lifestyle, indicating a self-aware population seeking experiences that speak to their individuality and their senses. Charisma and originality are motivational factors among a substantial group of respondents when looking for ideal retail experiences and products. They want the internet to be a facilitator and an educational tool and - most importantly - convenient. Overall the Baltic people are open and curious and they are attracted to all things new and original. On the other hand they strongly value anything that can simplify their lives and be convenient - perhaps to free up more time to pursue their individual interests. As money is associated with freedom, this is another strong indicator that the Baltic people place the strongest value on their free time and recreation spent with family and friends. What is also striking is that more than a third identify with the idealistic main ambition of social responsibility and another third put family and community as top priority. Offers grounded in traditional values but with the possibility for self-expression based on contemporary trends is attractive to the Baltic respondents

ÂŠ kjaer global - Trend Management 2008

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Baltic Countries: Environment 1. Location – Which best describes your dream location? 2. Space – How would you like your home to be? 3. Nature – What does nature mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Environment Category

• 25% leans towards urban living preferring an ‘Urban & Easy Access’ home location

• 35.5 % share Happy Boheme’s mindset - the largest segment in the Baltic region • Interiors that are ‘Transformable & Simple’ are favoured by 31.2% of respondents • 31.2% associate nature with ‘Something to Enjoy/Adventures’ • 37.5% associate nature with ‘One Planet Living/Sustainability’

• 37.5% agree that interior [space] should aim to be ‘Inspirational/Spiritual’ • Among respondents there was an even (50/50) split of men and women favouring the Spiritual Tourist category 43% of Baltic Countries’ respondents prefer a ‘Suburban & Safe’ location for their home

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Baltic Countries: Personal Interests 4. Hobbies – Which best describes your interests? 5. Sports & Wellbeing – What does Wellness mean to you? 6. Holidays – What do you look for in a holiday?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Personal Interest Category

• 25% look for ‘Uniqueness & Thrills’ in a holiday • 19% identify with the Premium Hunter in the Personal Interest category • The Happy Boheme is the dominant mindset with 50% of total respondents • 56% want a hobby to bring ‘Adventure & Togetherness’ • However, 68% want a holiday that gives them ‘Comfort & Family Fun’ • 12.5 % have hobbies with an element of social engagement

• The Spiritual Tourist is represented by 13% of respondents • 25% look for Sports & Wellbeing activities that involve both body and mind

56% of Baltic people look for a hobby that brings ‘Adventure & Togetherness’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Baltic Countries: Lifestyle & Culture 46.7% of the Central Europeans see money as Freedom

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0 5 10 15 20 25 30 35 40 45 50 Avarage spread in Lifestyle Culture Category

• 43.7% mainly associate the internet with ‘Convenience’ • 31% look for culture they can ‘Consume’ • The Happy Boheme mindset is the least favoured in the category, making up only 14% • Only 12.5% of Baltic respondents associate money with ‘Security’ • 43% love the internet’s facilitating abilities, but none of them associate it with creativity! • 31% prefer cultural experiences that can be characterised as ‘Sensations’ • 43% look for ‘Original & Pioneering’ products and a ‘Charismatic’ retail environment

88% of all the Baltic respondents associate money with ‘Freedom’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Baltic Countries: Personality & Aspirations 12. Self-Experience – What are your key priorities? 13. Aspirations – What are your main ambitions in life? 14. What sums you up? – How would you like others to see you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Personality & Aspiration Category

• 31.25% see ‘Achievement & Status’ as their main ambition in life • 25% of Baltic respondents like others to see them as ‘Successful’ • For 62%, ‘Trust & Family Values’ are the most important personal priorities • 50% would like others to view them as being ‘Trustworthy’ • The Happy Boheme Mindset is dominant in the Personal Values category • More than a third stated their main ambition as ‘Responsibility & Social Harmony’

• 18.75% would like to stand out as ‘Charismatic’ • No respondents listed ‘Spirituality & Uniqueness’ as their main ambition 25% Baltic respondents have ‘Progress & Ambition’ as the key life priority

Survey Analysis

ÂŠ kjaer global - Trend Management 2008

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Russia: Regional Profile In line with previous qualitative studies the Russian survey respondents showed a strong emphasis on material values and status. Appearance is highly prized in terms of personal looks, products, possessions and privileges. Luxury is still a priority in terms of aspiration but western trends - in terms of more inconspicuous consumption and the idea of what constitutes luxury - begin to be manifest in the market (according to qualitative findings). A large and clearly defined segment was found to be identifying with Happy Boheme values, particularly those in the nest building life stage. They prioritise family and traditional values and are motivated by security and social issues. Community oriented, they have a caring and emphatic outlook. Nature is perceived as something to enjoy and as a route to adventure, tying the notion of nature into the idea of free time and leisure. However, none of the respondents stated that nature means to them One Planet Living and Sustainability. This corresponds well with kjaer global trends mapping in relation to geographic movement – see chapter 2.2. Most striking of all the findings in the area of nature, was that almost half of all Russian respondents identify nature is something that provides ‘energy and spirituality’. This vital insight offers opportunity for further study and scenario creation based around themes of Russian folklore and affinity with the natural world. In terms of interior preferences, close to half of all respondents identified with the Caring Explorer values, preferring authenticity and thoughtfulness. The other half was attracted to a contemporary and elite feel, represented by smart and luxurious products. It is worth noting that these two preferences need not be mutually exclusive. In particular, there are qualitative indications of a renewed interest in the historic past of Russia and a revival of styles and architecture from the pre-Communist era. This, taken in conjunction with their spiritual affinity with nature, suggests new avenues to explore in the interiors, homeware and decorating sector. What the Russian market demands from retail, cultural and online experiences is consistent with other regions. The internet is valued for it ability to facilitate knowledge and social interactions. As to retail and cultural experiences, the Russian are attracted to interactive experiences that can educate and inspire and offer a degree of involvement. A note on the scope of the Russian sample: We had a predominantly female sample group and therefore it would not be appropriate to make general assumptions

Close to half of all Russian respondents associate nature with something that provides energy and spirituality

about mindset distribution according to sex.

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Russia: Environment 1. Location – Which best describes your dream location? 2. Space – How would you like your home to be? 3. Nature – What does nature mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Environment Category

• 50% of the Russian respondents wants an ‘Urban & Easy Access’ home location • 43% like their home to be ‘Contemporary and Elite’ • 50% associate nature with ‘Something to Enjoy/Adventures’

• 28.57% would like their interior spaces to be ‘Authentic & Thoughtful’ • 14.3% prefer a ‘Local & Green’ location for their home • An ‘Inspirational & Spiritual’ interior is the preference for 21.4% of the Russian sample • 42.9% associate nature with ‘Energy & Spirituality’ 33% of the Russian sample identify with the Premium Hunter in the environment category - the largest number across the regions

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Russia: Personal Interests 4. Hobbies – Which best describes your interests? 5. Sports & Wellbeing – What does Wellness mean to you? 6. Holidays – What do you look for in a holiday?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

10 15 20 25 30 35 40 45 50

Avarage spread in Personal Interest Category

• 28.6% associate wellness with being ’Fit & Attractive’ • 21% look for ‘Unique Experiences & Thrills’ in a holiday • 42.9% associate wellness with being ‘Healthy & Strong’ • 57% look for holidays with ‘Comfort & Family Fun’

• 14% associate wellness with being ‘Content & Happy’ • 7.2% have hobbies that have an element of ‘Social Engagement’ • The Spiritual Tourist mindset is favoured by 14% in the Personal Interests category • 14.3% look for ‘Mind Expanding & Pampering’ holidays

57% describe their hobbies as ‘Active & Energetic’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Russia: Lifestyle & Culture 7. Culture – What experiences are you looking for? 8. The Internet – What is the main benefit for you? 9. Products – What do you look for in a product? 10. Retail Environment – Your preferred shopping environment? 11. Money – What does money mean to you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist

0 5 10 15 20 25 30 35 40 45 Avarage spread in Lifestyle Culture Category

• 42.9% want ‘Luxurious & Smart’ products • 28.6% think the main quality of the internet is ‘Convenience’ • 35.7% would like to shop in a ‘Customised Retail Environment’ • 21.4% look to culture for ‘Entertainment’ • 35.7% want products that can be described as ‘Sound & Traditional’ • 42.9% describe ‘Interactive’ as their preferred retail environment • For 57.1% the main quality of the internet is ‘Facilitating’ • 42.8% associate cultural experiences with ‘Interactions’ • 21.4% prefer a shopping environment that is ‘Authentic’

• 21% look for ‘Original & Pioneering’ products

71.5% of all Russian respondents associate money with ‘Freedom’

Survey Analysis

Generic Consumer Mindset & Lifestyle Report Survey Analysis by Region – Russia: Personality & Aspirations 28% hold up ‘Truth & Moral’ values as their key priority

12. Self-Experience – What are your key priorities? 13. Aspirations – What are your main ambitions in life? 14. What sums you up? – How would you like others to see you?

Premium Hunter Happy Boheme Caring Explorer Spiritual Tourist 0

Avarage spread in Personality & Aspiration Category

• 42.9% of the Russian sample have ‘Progress & Ambition’ as a key priority in life • 35.7% list ‘Achievement & Status’ as their main ambition • The Premium Hunter mindset is dominant in the Personal Values category • For 21.4%, ‘Trust & Family Values’ are the most important personal priorities • 35.7% view ‘Family & Community’ as their main ambition • 14.3% would like others to see them as being ‘Trustworthy’ • 28% view ‘Truth & Moral Values’ as their key priority • 28% have ‘Responsibility & Social Harmony’ as their main ambition in life

• 28% would like to stand out as ‘Charismatic’

50% of Russian respondents would like others to see them as ‘Successful’

Survey Analysis

ÂŠ kjaer global - Trend Management 2008

Generic

Consumer Mindset & Lifestyle Report

Chapter 3: Conclusion, Recommendations & Foodnote

ÂŠ kjaer global - Trend Management 2008

Conclusion

Generic Consumer Mindset & Lifestyle Report Chapter 3: Conclusion, Recommendations & Foodnote RECOMMENDATIONS

The key to successfully using trend management lies in translat¬ing insights into something

tangible and action focused. Using trend management in conjunction with qualitative survey analysis to create generic Consumer Mindsets is a highly effective business

resource. Used together these skills provide a holistic, sound and informed platform for product innovation, design concept development, market¬ing, retail and branding.

Below are key findings and directions for the interiors, homeware and decorating sector uncovered by the investigations in this kjaer global Consumer Mindset and Lifestyle Report

1. EMPOWERING SOLUTIONS:

Intelligent technologies and solutions to facilitate, educate and emotionally connect with people should form a core company value and underpin future strategies.

Place emphasis on the ‘glocal’ aspect - making people both inside and outside your organisation feel, they are part of a globally aware and connected company with distinct

local ‘roots’ and regions of operation. While expansion via new relationships and networks remains crucial to brand success, this must incorporate and capitalise on local flavours. 2. INTERACTIVE FORUMS:

Exchange of ideas to empower people and encourage emotional intelligence will set

tomorrow’s agenda. Appreciation of ‘Cultural Diversity’ and honouring ‘Authentic Values’ are key benchmarks for success.

Provide inspirational and technical advice to develop as an Empowerment Brand. By promoting exchange of ideas and encouraging sharing, co-reviewing and co-creation you engage individuals and foster bonds across regions. 3. ETHICAL VALUES:

Social sustainability and ethical values are essential drivers in a society yearning for more

meaning and a better quality of life. Recognise the value of genuine transparency and

remember that people will pay a little extra to support a worthwhile local or global cause, linked to a brand they truly respect. 4. MEANINGFUL ENCOUNTERS:

Products and services that facilitate wellbeing, safety and personal empowerment are key in tomorrow’s value and emotion driven experience economy.

Utilise all opportunities to connect with your customers in both the retail and online

environment. Send out the message that you are thoroughly in touch, future oriented and driven by your customers’ values and needs. This offers rich opportunities for creativity and connection - from podcasts and ‘about the team’ information to local and global trend inspiration guides.

Conclusion

Generic Consumer Mindset & Lifestyle Report Conclusion, Recommendations & Foodnote CONCLUSION

We are entering a new era where value sets are shifting. Money and material possessions

are not enough - we want meaning and empowerment. Today’s society is ruled by contrasts. On the one hand people want ethics and transparency, on the other value and more choice.

People have very complex decision patterns and loyalty is determined in the margins and

largely quantified by the emotional benefits of a brand experience. Navigating complexity, or helping people to navigate it, will be one of the most important business challenges of the 21st century. To best meet people’s demands and achieve success in the interiors,

homeware and decorating sector, you must deliver a holistic and cohesive vision across

all regions - from products, services and retail through to the marketing and brand experience.

Consumers will demand much more in the coming century and success will hinge on a

very clearly defined set of demonstrable motivations and values. The four key words to act on and incorporate into your culture and your future strategy are:

Empowerment – Become an empowerment brand: inspire, inform and educate Interaction – Foster exchange of ideas to enable personal interaction

Ethics – Champion sustainability and transparency through your actions and your attitude Meaning – Create emotional connection and experiences that connect people to people FOOTNOTE: HARNESSING CHANGE

Kjaer global has been predicting a seismic shift in global thinking for well over a decade

now – a move into the era of openly expressed Emotional Consumption. When this survey took place there was no hint of the turmoil that was about to engulf the global economy. That seismic shift has been enacted more dramatically than anyone could have imagined.

What is clear as the dust settles is that Empathic Leadership is showing us the way ahead. That means having the ability to relate to and connect with people for the purpose of inspiring and empowering their lives. Successful brands of the future will be those that

‘think from the outside-in’ but ‘feel from the inside-out’. It has never been more important to embrace change and be bold. This is the challenge that is testing government as much as business brains right now.

We can distil the 21st Century’s drivers into one key phrase: “Empathy and Emotional Connection’. In other words it is not enough to know a lot, convert knowledge into a

relevant and empowering strategy for your company. This is the only way to connect and inspire people in meaningful ways and earn both their loyalty and trust. An old Chinese proverb:

‘When the wind of change rises, some people build walls. Others build windmills.’ Let yours be a company that harnesses the forces of change.

ÂŠ kjaer global - Trend Management 2008