Where will the world be on February 2, 2022? What can we expect the business landscape to look like? What brands will see success and which ones won’t? What will be important to consumers?
All of these are important questions that are top of mind for marketers and will continue to be in the months and years ahead. During #SMWONE Suzy CEO Matt Britton tapped into up to the minute research from his team to play the role of futurist and paint a broad picture of the world we will be living in on the other side of COVID-19.
Here are the primary insights and takeaways:
- Consumers want variety; not quantity when it comes to their purchases
- Secondary and tertiary cities are on the path to become the new “hot spots”
- People are ultimately more fascinating than brands and influencers will be behind the brands that take off
Living: the “accordion effect”
According to Britton, the global pandemic will result in an “accordion effect” in which people will gravitate away from the big cities like New York or San Francisco. Meanwhile, secondary and tertiary cities like Columbus, Ohio, Denver, Colorado, and Denton, Texas are on the path to become the new “hot spots.” “Suburban sprawl simply is not that appealing to the millennial generation,” he added.
What are the tangential effects of this transition? Appreciation is these lower-tiered markets and home prices in areas like New York or San Francisco leveling off. With this, we may see a trickle-down effect whereby there is a resurgence in automobile purchases. This potential increase in demand for consumers buying cars, however, could result in reduced demand in the long-term, for ride-sharing companies like Lyft and Uber preferred for their ubiquity.
Buying: consumers want variety
Consumers want variety; not quantity when it comes to apparel. One may assume this would open the window of opportunity for retailers but in a down market, this isn’t the case. Britton elaborated with several examples including J.Crew recently filing for bankruptcy and Gap claiming some of its stories will never reopen.
“These companies surely lean too heavily into a brick and mortar layout and did not pivot nearly fast enough to an e-commerce model,” Britton explained.
He pointed to Rent the Runway (RTR) and Ipsy, recently announcing it surpassed $5M in revenue, as prime examples of business models that will continue to be sustainable because the trends of consumers wearing garments less and less or wanting the convenience of beauty products sent to their home is not going to reverse.
Another important retail trend: companies will increasingly look to take over control of their own consumer experience. Nike, for instance, pulled its products off of Amazon this past November. This also holds for the CPG space. In a world of Amazon Prime, companies including Million Dollar Shave Clubface increased pressure to establish a more scalable e-commerce strategy.
“If I’m the CPGs, I’m trying to form a coalition where there are prime benefits where Costco, with traditional CPGs, can compete against Amazon, and maybe P&G one day will make the same decision that Nike made,” explained Britton.
The growing role of influencers
Surfacing headlines are posing the common question: could the coronavirus kill the influencer culture? Per Britton, “influencer culture is just begging and it is here to stay.”
Something Navy fashion blogger cracked a deal with Nordstrom and started to sell her own clothing. In this wavelength, he also mentioned Danielle Berstein who with her “We Wore What” blog is building a bigger audience through socially responsible posts across content and supporting small businesses with her efforts. IN turn, she’s seeing tremendous success via launching new products with numerous retailers.
“People are ultimately more fascinating than brands and influencers will be behind the brands that take off.”
Look no further than the TV space for prime examples of this idea, specifically the story of Oprah Winfrey’s rise to fame as she became a brand in her own right. The same trend will likely take form within the fashion space, per Britton. Influential people who have the right audiences and are built from the ground up will be able to create sustainable, digitally-native businesses that evolve into the new Gaps and the new Nordstroms of the future.
Brands as “ingredient” or “helping” brands
Years ago Home Depot coined the tagline “You can do it. We can help.” As consumers realize they can no longer rely on the services that they once did in a pre-crisis environment, they are now resorting to their own devices. 43 percent of dog owners, for instance, claim they will switch to DIY grooming.
Mattel Playroom, as another example, is using this time to encourage families and children to come up with their own toys in its “Play is Never Cancelled” — this concept of taking what you bought from us and make it bigger and better. Finally, Eva Longoria shocked the Internet when she took to dying her own hair in a L’Oreal ad she filmed herself from her house.
Whether these new habits actually take hold post-COVID, there is a powerful meaning behind brands taking an uncertain time and empowering consumers by giving them the raw ingredients to push forward — a role Britton referred to as “helping brands.”
This is also the case for the food and beverage industry as food preparation has come back into the home. Seventy-five percent of consumers believe they’re more skilled in the kitchen now and over 50 percent believe they will continue to cook more after the crisis. “This will create a substantial shift where these companies who have relied on their packaging and merchandise for years now have to reinvent themselves in a world where their products will be bought digitally, and more consumers are cooking at home on a regular basis,” said Britton.
Entertainment: redefining fun
In the absence of live events, platforms like TikTok and Houseparty are allowing the ability for brands and influencers to collaborate in meaningful and compelling ways. Houseparty specifically saw 17.2M total downloads in March with users carrying out virtual dinner parties, celebrating birthdays, and playing trivia and Pictionary to pass the time at home.
Gaming is also taking off with users engaging with one another on Animal Crossing esports and newcomer apps like Squad. In terms of music, platforms Fortnite and Instagram have become central and taken over the role of “concert venue.” Travis Scott did an entire performance in the form of an avatar on the Fortnite platform that drew in over 12M concurrent viewers. DJs too are using this moment of time to redefine their personal brands, DJ DNice rising to the top for his daily quarantine sets performed on Instagram that draw celebrities like Jennifer Lopez to the crowd.
Work and travel: a slow return
Britton believes travel will come back in full force much like the hospitality space, but it won’t be immediate. As companies struggle with budget cuts and want to avoid the liability of returning to work at the office too quickly, many are taking it upon themselves to postpone major events and issue work from home mandates into 2021.
Similarly to dining out, however, there is an inherent desire to travel and it will return. What is likely to be more apparent in the near future is people opting to travel by car when they’re not as ready to jump on a plane right away. Enter the C2C models of businesses like Airbnb who, despite recently laying off thousands of employees, have a likelihood of finding success for cash strapped homeowners looking for more income and individuals who want quick getaways that are safer than returning to air travel.
Regarding the future of the workplace, businesses are taking serious consideration that not every person across every department needs to be working from the office in order to collaborate and giving employees flexibility as to where they live can boost morale. In short, Britton believes companies will reevaluate their spaces.
While many workers thrive from home, students are struggling to prosper in a remote learning environment, according to Britton.
For younger generations, school is a place for building friendships, escaping from the house, learning responsibility, and seeing their friends and building core communication and interpersonal skills. 54 percent of parents with students engaged in a remote learning situation due to COVID-19 say it’s a daily struggle to support career and parenting during the day per recent findings from Suzy.
When assessing the 20 skills most in demand today, they are very trade and skill-based including items such as cloud computing, SEO, UX design, and video production, all of which aren’t traditionally taught in a liberal arts environment. The major takeaway: the technology companies are where the jobs are, where GDP is expanding and this is not likely to change. For this reason, it’s unlikely students not want to incur debt for a system that doesn’t prepare them to succeed in this capacity. “There are so many skills in demand that aren’t skills where you’re a jack of all trade or a master of none. I expect us to see a reverberation of demand for skills-based learning and skills-based schools versus generalist schools,” said Britton.
Join 100,000+ fellow marketers who advance their skills and knowledge by subscribing to our weekly newsletter.
The post How to Prepare Your Brand for the Not So Distant Future: 2.22.22 appeared first on Social Media Week.