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16
TREND REPORT
20
16
IT’S HERE. ARE YOU READY?
3

ou want to build new products, services,


Y campaigns and brands your customers will love
in 2016. This Trend Report can help.

The report dives into the 16 mega-trends that define the


consumer arena. Inside each mega-trend chapter, a new
trend highlights a key innovation opportunity.

These trends and related 80+ innovations reflect the belief


that is at the heart of our methodology. Namely, that it
is possible to know what consumers will want next. Not
by asking them, but by looking at the businesses they’re
engaging with now and asking two questions. How are
these innovations changing consumer expectations? What
do these new expectations mean for my organization?

So as you turn through these pages, be relentless about


asking yourself those questions – and reflecting on the
answers we’ve given.

Last, remember that trends are nothing if you don’t use


them to make what you do – and the world – better. The
tools outlined in the APPLY chapter will get you started.

Good luck!

David Mattin
Global Head of Trends and Insights
4

TABLE OF CONTENTS

12 18
INTRO STATUS SEEKERS BET TERMENT
TREND FRAMEWORK STATUS TESTS VIRTUAL
THE YEAR WITH PREMIUM
ACTUALIZATION

24 30 36
YOUNIVERSE LOCAL LOVE PL AYSUMERS
TRUE SELF OPEN ARMS PARTY OF ONE

42 48 54
EPHEMER AL HELPFULL JOYNING
LIVESTREAM CONTEXTUAL S.I.P. ECONOMY
PRISONERS OMNIPRESCENCE
5

60 66 72
HUMAN BR ANDS BET TER BUSINESS UBITECH
TWO-WAY INSIDER TRADING BENEFICIAL
TRANSPARENCY INTELLIGENCE

78 84 90
INFOLUST FUZ Z YNOMICS PRICING PANDEMONIUM
INFORMAL INFO NEW LABOR PERSPECTIVE
SHIFTS

96 102 108
POST-DEMOGR APHIC REMAPPED OUTRO
POST- ORGANIZED TRENDS REVISITED
APPLY
DEMOGRAPHIC MASS
IMPERATIVES
6

OUR TREND
FRAMEWORK
16 MEGA-TRENDS THAT DEFINE
THE FUTURE OF BUSINESS AND
CONSUMERISM.

These 16 mega-trends form the foundation of


TrendWatching’s research and analysis process. They
are big, slow moving currents that remain broadly stable
year-on-year, and that can be applied across regions,
industries and demographics.

Understanding and innovating around these mega-


trends, and subsequent trends, is the first step for
consumer-facing organizations that want to address
changing customer expectations.

This Trend Report is structured around these mega-


trends and their evolution. Each chapter picks out
an exciting new trend that offers a potent innovation
opportunity for 2016.
7

STATUS BET TERMENT HUMAN BR ANDS BET TER


SEEKERS The universal quest for self- Why personality and purpose will BUSINESS
improvement mean profit
The relentless, often Why ‘good’ business will be
subconscious, yet ever-present good for business
force that underpins almost all
consumer behavior

YOUNIVERSE LOCAL LOVE UBITECH INFOLUST


Make your consumers the Why ‘local’ is, and will remain, The ever-greater pervasiveness of Why consumers’ voracious
center of their YOUNIVERSE loved technology appetite for (even more)
information will only grow

PL AYSUMERS EPHEMER AL FUZZ YNOMICS PRICING


Who said business had to be Why consumers will embrace the The divisions between producers PANDEMONIUM
boring? here, the now, and the soon-to- and consumers, brands and
customers will continue to blur Pricing: more fluid and flexible
be-gone
than ever

HELPFULL JOYNING POST- REMAPPED


Be part of the solution, not the The eternal desire for DEMOGR APHIC The epic power shifts in the
problem connection, and the many (new) global economy
ways it can be satisfied The age of disrupted
demographics
8

THE PREMIUM SERVICE


ALL THE CONTENT, TOOLS & EXPERT SUPPORT YOU NEED TO
SUCCEED AT EVERY STAGE OF YOUR INNOVATION JOURNEY.

1 KNOW & UNDERSTAND 2 PIN-POINT RELEVANT


WHAT’S NEXT TRENDS
This 2016 Trend Report offers Our easy-to-use Trend Mapper tool
actionable insights that will empower lets you select key areas of focus and
you to truly delight customers in the connect them to relevant consumer
months ahead! trends.

3 4
VALIDATE YOUR KEEP ON TOP OF
STRATEGY INDUSTRY INNOVATION
Industry HeatMaps allow you to tap Quarterly Industry Updates highlight
into the collective intelligence of the game-changing innovations and
4,500+ professionals using our online relevant trends for 16 key B2C sectors
platform, and see your peers’ focus. (and yes, you get access to all 16!).
9

5 BE INSPIRED BY BEST- 6 GENERATE WINNING


IN-CLASS INNOVATION INNOVATION IDEAS
The online Innovations Database The Apply Toolkit contains interactive
gives you instant access to 13,000+ tools and proven step-by-step
innovations (indexed by industry, manuals to support you in turning
country and trend). insights into innovations.

7 8
STAY IN THE LOOP & AND IF YOU NEED IT,
ONE STEP AHEAD WE’RE HERE TO HELP!
You’ll also receive Monthly If you ever need any help or advice,
Snapshots, our curated selection of our knowledgeable (and friendly!)
75+ cross-industry, trend-led local Client Service teams are only
innovations. ever just a phone call or email away.
10
11

ON TO THE
TRENDS
STATUS
SEEKERS
STATUS TESTS
In 2016, status means
proving your worth
before you purchase.
13

t’s a long-standing trend truism: many status-


I hungry consumers have shifted their desires
away from ownership and towards experiences.
But when Givenchy’s NYFW catwalk show has 1,000
attendees, when ice-cream is delivered on-demand
by a taxi company, and when every ‘exclusive’ is
Periscoped, even experiences start losing their edge.

So what’s next for status? While many will continue


to collect status points by buying ethical products,
sharing resources, learning new skills and fighting for
social causes, rising numbers will seek out new twists
on the most traditional form of cachet: exclusivity.

For a very long time, privileges were a birthright. Then,


in a booming consumer society, they could be bought.
In 2016, brands will show customers that true privileges
– and the only true status that remains – must be
earned on merit.

READ MORE IN THE INNOVATIONS DATABASE: STATUS SEEKERS


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STATUS SEEKERS
T HE E VOLU TION OF

200
R9
STATUS TESTS R300
0

UM
The diversification of status, the
2012
TIN
UM PLA

00
IN
AT
PL

acceptance of brand-led demands R15


and a crowdfunding mindset have
LIMI T ED
converged to build 2016’s appetite
LOC AT ION
for STATUS TESTS.
Brands used time- Johnnie Walker launches its Platinum
limited offerings in Label in South Africa with a pop-up
specific locations store in Johannesburg. Visitors could
to trigger buzz and bid for the only collector’s bottle
premium prices. of Platinum Label in the country.

2008 2013
S TAT US S W E AT
S TORIES EQUI T Y
Choice-saturated consumers Swiss company Arniko offers a Sophisticated The Russian Olympic Committee
increasingly achieved a status range of hand-carved skateboards consumers embraced lets Moscow subway commuters
fix from the stories they could produced by traditional local brands that demand pay for their travel by completing 30
tell about their consumption. enterprises in Nepal. some (sweat-inducing) squats in two minutes in front of a
effort on their part. specially installed ticket machine.
15

STATUS SEEKERS

2014
PER K F U NDING
Consumers on
crowdfunding
George R.R. Martin launches a
2016
sites responded to fundraiser for a wolf sanctuary.
exclusive and unique A USD 20,000 donation
rewards offered in secures the donor a role in a
S TAT US T ES T S
return for pledges. Game of Thrones novel. Seeking new forms of exclusivity
and community, consumers embrace
brands that demand customers prove
their worth before they can buy.

LOVER HATER

2015 Marmite offers free coffees at a


London café to consumers whose
BR A ND social media account proves they

FA N AT IC S are ‘lovers’ and not ‘haters’.

Public, passionate In Malaysia, IKEA runs a competition


brand fanaticism from inviting passionate fans to dress up
devoted consumers as their favorite IKEA product and
became a counter- post photographs on Facebook.
intuitive status play.
16

STATUS SEEKERS

STATUS TESTS 193 0


Tinder users charm their way
into an Italian speakeasy
ONLY THE WORTHY WILL BE SERVED.
The exclusive 1930 speakeasy bar in Milan,
Italy, recreated its strict door policy online
by utilizing dating app Tinder. In May 2015,
In the battle to reach more consumers, a host of once status-worthy
the bar set up a profile of a girl from 1930,
products have lost their sheen. Meanwhile, the experience economy has asking potential entrants to ‘court me
like they used to in the old days’. The
democratized; now, almost every consumer has a great story to tell. The
profile had 4,000 matches in the
reaction in 2016? Consumers embrace a new form of exclusivity that first week, with applicants asked
demands they prove their worth to the brands they desire. to ‘act like gentlemen’ and
pick up digital handkerchiefs.
In what it described as the
lowest conversion ever,
WHY NOW? WHAT NEXT? the bar eventually let one
winner enter its premises.
TOO EASY NO COMMITMENT-PHOBES
Thanks to an unending stream of retail The more stringent the test, the greater
innovations and on-demand services, the status hit. Make consumers prove
getting what you desire, from Korean their passion, creativity, kindness, taste,
tacos to runway dresses, is easier than fitness or knowledge. Netflix created an
ever. Convenient, sure. But, there’s little IoT button – but demanded users built it
status in anything that comes easily. themselves.

TOUGH BRANDS NEW CREDENTIALS


Consumers have grown to expect brands What counts as credentials? Think
LEE JE A NS
to push them to be better versions of beyond traditional loyalty schemes:
themselves. That’s left them open to the air miles aren’t the only measure of Chinese consumers earn
challenge – serious or frivolous – of a worth! Marmite analyzed social media rewards by exploring their city
STATUS TEST. accounts to gauge consumer worthiness,
whereas for UNO NYC, presence on the
How about physical commitment as a STATUS TEST? In
PRESUMERS Williamsburg Bridge was the key.
October 2015, Lee Jeans launched a campaign across
Crowdfunding platforms normalized a 32 cities in China to promote a range of heat-retaining
model of retail where people are more CLUB KIDS
denim. Consumers were asked to explore their cities
than ‘shoppers’, but instead members of Those who pass a STATUS TEST are a (even in the cold) while tracking their movements with
a like-minded community of supporters. ready-made, high-status community of the Warmth Tracker WeChat app. Warmth Index points
Now, they’re seeking new retail like-minded (or like-skilled) peers. Foster were collected when users scanned QR codes at chosen
experiences that offer the same. that community! locations. By collecting points users could earn Magma
Fusion denim products and access exclusive events.
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STATUS SEEKERS STATUS TESTS

M A R MI T E
Free coffee and toast for ‘lovers’ only

Savory spread Marmite has in many past campaigns celebrated


T HE HU N T
the fact that it’s a ‘love it or hate it’ food. In August 2015, the
Active members of fashion site can brand promoted a new edition of the spread with the pop-up
apply to access exclusive perks Love Café at London coffee shop Soho Grind. Before entry,
visitors were asked for their social media handle, then Marmite
scanned previous posts to detect the overall sentiment and
Online fashion community The Hunt allows
decide whether the customer was a ‘lover’ or a ‘hater’. Lovers
users to post photos of items they seek, ‘Hunts’,
enjoyed Marmite on toast and coffee for free, while haters had
along with budget and size requirements. Other
to pay full price. A full 94% of visitors were identified as ‘lovers’.
members suggest ‘Finds’ that meet the criteria.
In July 2015, the US -based brand launched a
Community Stylist program. To apply, users
share their favorite three item #hashtags from
the platform, a short bio and a description
of why they love The Hunt. If accepted
they gain access to local events, exclusive
contests, new features and a VIP newsletter.

NE T F LI X
U NO N YC
One touch ‘Netflix and chill’
Digital radio station is only available button poses DIY challenge
on the Williamsburg Bridge
Remember, the more stringent
What more fertile ground for a STATUS the TEST, the greater the STATUS. In
TEST than hipster exclusivity? In July September 2015, Netflix unveiled The Switch:
2015, Brooklyn-based record label UNO a button that automatically switches on the TV,
NYC launched W.B.R.R. (Williamsburg launches Netflix, dims the lights and orders takeout.
Bridge Radio), a radio app that broadcasts The button debuted at the NYC Maker Faire, but was
only to Brooklynites making their way not made available to buy. Instead, the streaming
across the Williamsburg bridge. W.B.R.R. service released an online tutorial showing people
features exclusive music from the label’s how to make their own. Netflix recommended
roster, and plays one track to ‘push you’ makers have ‘a solid understanding of electronics
on the way up the bridge, and another and programming’ and encouraged them to
for ‘kicking back’ on the way down. share their own product hacks and ideas online.
BETTERMENT

VIRTUAL
ACTUALIZATION
In 2016, consumers
awaken to the self-
improvement possibilities
of virtual reality.
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n 2016, the maturation of a long-hyped new


I technology converges with the unquenchable
consumer thirst for self-improvement.

For over a decade now, consumers have seen new


digital technologies – online platforms, wearable
devices, the Internet of Things – not only as tools of
convenience, but something more: paths that can lead
them to a higher version of themselves.

But while technology and self-actualization have proven


a powerful combination, rising numbers now also
know firsthand that some aspects of the self just aren’t
amenable to a wristband or smart device.

In 2016, they’ll welcome new technologies that offer new,


and broader, dimensions of improvement.

So, ready to meet consumers in (virtual) worlds as yet


undreamed of?

READ MORE IN THE INNOVATIONS DATABASE: BETTERMENT


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BETTERMENT
T HE E VOLU TION OF
JOHN

VIRTUAL 18:46 pm

ACTUALIZATION
2008
JASMINE

18:29 pm
Rising expectations around using
digital technologies for self- G A ME ON
improvement are fueling 2016’s
Seeking new forms of
VIRTUAL ACTUALIZATION. motivation, consumers
Runkeeper lets users
turned to products track their running and
and services that add fitness activities, compete
elements of gaming to with in-app friends and
everyday behaviors. compare results.

3.10m

2006 2013
BEN CH M A R K ED M YCHI AT RY
LIF E In search of a broader
view of wellness,
Consumers embraced new The Nike + iPod Sports The Mico headset reads
Kit includes a wearable
consumers’ expectations brain signals to identify
technologies that allow
accelerometer that syncs with extended to digital the user’s mood and select
them to quantify, track and
the Nike+ Sportband or a services that promote appropriate music.
analyze physical activity
receiver plugged into an iPod. mental wellbeing.
and other behaviors.
21

BETTERMENT

36

RE

2014
LA
X

IN T ER NE T OF
2016
BE T T ER T HIN G S
V IRT UA L
Consumers looked to Biometric smart ring
the Internet of Things Moodmetric tracks wearer’s AC T UA LIZ AT ION
to serve real human emotional responses by
As virtual reality becomes accessible
needs, including measuring small changes in the
autonomous nervous system. to more consumers, they will look
health and wellness.
to VR experiences to push self-
improvement to the next level: more
immersive, holistic and powerful.

CE RE VR UM

2015 Cerevrum creates virtual reality


brain-training games, designed
IN T UI T I V E to enhance memory, attention,

IN T ER FACES perception speed and more.

Consumers demanded RideOn augmented reality


new, more intuitive and ski goggles project data
natural interactions with and graphics on to the
digital technologies. snow in front of the wearer.
22

BETTERMENT

VIRTUAL
ACTUALIZATION Consumer spending on VR hardware
and software will increase from USD 108

VIRTUAL REALITIES. REAL IMPROVEMENTS. million in 2014 to USD 22 billion in 2020.


Tractica, July 2015

After years in the Trough of Disillusionment, virtual reality will finally


arrive for many consumers in 2016. Amid the endless brand-led
‘immersive experiences’, one powerful way to make your VR play stand
out? Serve the ever-more intense expectation that new technologies
should supercharge personal growth.

WHY NOW? WHAT NEXT?

MAINSTREAMING BRAIN TRAINING


The first generation of in-home VR Brain training games will be a USD 6
devices – including the HTC Vive, Oculus billion industry by 2020, according
Rift and PlayStation VR – will arrive in to market researchers SharpBrains.
2016. Meanwhile, in November the New Cerevrum will offer VR-fueled immersive
York Times partnered with Google on a brain training games.
VR film and gave away 1 million Google
LEVERAGE U NI T ED N AT IONS
Cardboard headsets.
What form of self-improvement would
MIL L EN NIU M C A M PA IG N
NEW GOALS consumers turn to your brand for? VR experience allows policymakers
VR promises new frontiers of personal Leverage a platform or partnership to to empathize with Syrian refugees
development beyond standard physical make it happen. Toyota used the Oculus
and mental health. Expect learning Rift to teach safer driving.
experiences that are more immersive, In October 2015, the United Nations Millennium Campaign

challenging and powerful. EMPATHY partnered with filmmaker Chris Milk to produce Clouds
Over Sidra, a nine-minute VR documentary film about a
For rising numbers of consumers,
VALIDATION young girl in the Za’atari refugee camp. The film was shot
personal growth must include ethical
Consumers have seen rising evidence using a 360-degree camera. Among the viewers were
growth. See how the United Nations and Secretary-General Ban Ki-moon and US Ambassador
of VR’s self-improvement potential: 2015
startup SpaceVR are using virtual reality to the UN Samantha Power. A UN advisor said it was
saw news that NFL teams are using VR at
to enhance empathy for others and hoped the film would allow viewers to empathize
summer training camps.
concern for our shared future. with – rather than simply pity – the refugees.
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BETTERMENT VIRTUAL ACTUALIZATION

CER E V RU M
VR brain training games improve cognitive abilities
T OYOTA
VR experience teaches safer driving Canada-based startup Cerevrum offers
a series of VR brain-training games

In January 2015, Japanese automaker Toyota unveiled an Oculus Rift designed to help users improve cognitive

experience intended to turn teens into better, less distracted drivers. abilities such as memory, attention and

Wearing the virtual reality headset, participants could experience speed of perception. The games will

driving along a busy urban street, the sounds of traffic and friends be available from Q1 2016, across

chatting, and distractions such as changing the radio or sending multiple platforms including the

texts. The experience was part of Toyota’s TeenDrive365 program, Samsung Gear VR and HTC Vive.

which offers a range of safer driving events, advice and online tools.

SPACE V R
IC A RO S VR experience brings Overview Effect to all
Fitness experience allows users to fly
through VR landscapes
GUIDED M EDI TAT ION V R The Overview Effect is the renewed appreciation
of the unity and fragility of planet Earth that
Meditation app for Oculus Rift many astronauts report when they look back at
Demonstrated at the WIRED Conference
in October 2015 by German-based design Earth from space. Many have speculated that
company Hyve, Icaros is a workout station Buddhism meets VIRTUAL ACTUALIZATION? if this experience were available to everyone,
that allows users to experience flight through Scheduled for full release in Q4 2015, transformational benefits in human behavior
a range of VR environments. Icaros pairs with Guided Meditation VR is a virtual reality would result. Raising USD 113,310 on Kickstarter in
a VR headset, and steering it works muscles meditation experience that runs on Oculus October 2015, US-based SpaceVR plan
in the shoulders, back, abdominals and Rift. Users can customize meditations to send a 360-degree
legs. Launch is scheduled for early 2016. to be between five and 25 minutes, and virtual reality camera to
can explore a range of relaxing locations, the observation deck
including a tropical beach, a private forest of the International
at sunset or a koi pond. Space Station to
capture footage of
Earth, allowing any
VR user to experience
the Overview Effect.
YOUNIVERSE

TRUE SELF
In 2016, offer personalization
that lets consumers access
their deepest selves.
25

aking the long view, it happened at light-


T speed: personalization evolved from
revolutionary to ubiquitous. Consumers embraced the
ability to make everything their own – from sneakers to
headphones, jewelry to kitchen knives. So, where next?

In 2016, driven by a fundamental desire to unlock


deeper personal truths, consumers will seek out
personalization that can reveal aspects of themselves
they’ve never seen before. Sophisticated technologies
will offer a powerful dual benefit: not just customized
products and services, but a deeper understanding of
the true (often hidden) self.

A more evolved knowledge of exactly who I am?


In a world that increasingly values individuality and
self-expression, that might just be the ultimate
consumerism has to offer in 2016.

READ MORE IN THE INNOVATIONS DATABASE: YOUNIVERSE


26

YOUNIVERSE

T HE E VOLU TION OF

TRUE SELF

2011
Rising expectations around
participation and personalization
are driving customers to discover
IN T ER AC T V ERT ISIN G
their TRUE SELF.
Playful, interactive
campaigns won the Volkswagen Canada promotes
attention of consumers. their new model Jetta by inviting
people to steal limited-edition
photos from public spaces.

2010 2012
C US TO M Y ZED O F F=ON
Accelerating expectations In Brazil, Burger King’s The offline world (and John Lewis pilots shoppable
around customization ‘Have it your way’ campaign physical products) window displays: embedded
prompted innovative prints images of customers adjusted to, mirrored QR codes allow consumers
personalization initiatives. on burger wrappers. and incorporated to locate products online.
the online world.
27

YOUNIVERSE

2013
OU T S OU RCED
LIF E

2016
Consumers embraced
connected objects
that allowed them to The Milkmaid
outsource daily tasks. automatically sends
an SMS when milk is
low or has gone off.
T RU E SELF
Sophisticated predictive
technologies help consumers
unlock a deeper sense of self
for improved personalization.

2014 Uniqlo’s ‘Mood


machine’ lets consumers
SELF CEN T R A L find the right t-shirt
for their mood.
Driven by expectations of
convenience, customization Apple’s iPhone 5s
and more, consumers comes with fingerprint
adopted apps and services recognition technology.
that identified their needs
swiftly and accurately.
28

YOUNIVERSE

TRUE SELF
PERSONALIZATION THAT GOES DEEPER.
53%
Conventional personalization means letting consumers tell you what they of consumers are willing to share
want, and then giving it to them. Empowering and fun, but limited. personal data in return for tools that
help them make decisions.
Next, a raft of new technologies will soon allow consumers to personalize
Columbia Business School, October 2015
based on deeper, more authentic, often subconscious aspects of their
personalities. Bringing them closer to themselves – and closer to you.

WHY NOW? WHAT NEXT?

FICTION / REALITY EMOTIONAL SELF


Facial recognition, biometric sensing, How can you help people connect with,
brainwave readers: a new wave of tech and shape products and experiences
able to discern deeper truths about the around, their true emotions? Uniqlo’s
hidden self are now an (affordable) reality. UMood headset selects t-shirt designs
based on a customer’s current mood.
DEEPER SELF
Sure, active personalization is ATTENTIONAL SELF
empowering. But it also means more Give consumers new insight into what
decisions for consumers beset by choice they really pay attention to, and let them SKODA
paralysis. Now, they’ll embrace services personalize accordingly. Skoda used eye-
that can reveal what they really want, tracking tech to show consumers which
90-second video reveals car preference
rather than asking them to articulate it. car they preferred.
In February 2015, Skoda ran an interactive online
SPOOKY TECH REACTIVE SELF advertising campaign around the launch of the
Highly effective algorithms (think Let authentic – and often involuntary – new Skoda Fabia. Called Fight For Attention, the
Spotify’s weekly playlist) have reactions shape a customer’s experience. campaign consisted of a 90 -second video displaying
accustomed consumers to the idea that Smile Suggest is a browser plug-in that two models of the Fabia. Eye-tracking technology
brands can discern things about their automatically bookmarks a page when a was used to determine which model the viewer
taste and personality that they didn’t yet user smiles. focused on most. At the end of the video, the viewer
realize themselves. was presented with an infographic showing their
results and revealing which car they preferred.
29

YOUNIVERSE TRUE SELF

B O M PA S & PA R R A B S T R AC T_
Bespoke beverages created from DNA Personalized apparel is
scans based on individual’s emotions

February 2015 saw Bompas & Parr open the PharmaCafé,


Unveiled in Denmark during July 2015, Abstract_ is an apparel label
a pop-up dining experience at the Museum of Future
which makes customized items based on people’s emotions. To
Government Services exhibition in Dubai. Visitors
create products, customers visit the brand’s website, where they are
were offered a hand-scan upon entry, and then given
prompted to type out a story. Via their webcam facial patterns are
beverages customized around their DNA. Ingredients were
recorded and analyzed, along with keystroke patterns. An algorithm
chosen for specific healing or restorative properties.
is then used to transform this data into a personalized textile
pattern, which can be used as part of Abstract_’s apparel options.

SMIL E SU GGES T
U NIQ LO Browser extension automatically
‘Mood machine’ matches bookmarks smile-inducing webpages
shoppers with the right t-shirt
Live from April 2015, Smile Suggest is a Google

October 2015 saw Japanese retailer Uniqlo debut a Chrome extension that tracks facial movements

tool to help customers choose t-shirts based on their using a webcam, bookmarking pages that

mood. Launched in stores across Sydney, Australia, produce smiles, and giving the viewer the

Uniqlo UMood features a headset with forehead option to share these via email or social media.

sensor to measure brain activity. Users watch a Free to download, the extension was created by
US -based digital designer Martin McAllister.
series of video clips representing different moods,
and are then matched with a t-shirt design that best
suits their mindset (selected from over 600 styles).
LOCAL
LOVE
OPEN ARMS
In 2016, find ways to
support new arrivals and
the local inhabitants who
welcome them.
31

n 2016, the globe is rattled by conflict,


I destructive weather patterns respect no
national borders, and millions continue to endure
economic turbulence while looking to brighter
horizons. Meanwhile, our world becomes ever smaller
and more connected.

One result? For rising numbers, the word local


becomes a focus of shifting meaning, allegiance
and action. Those who leave their home to settle
in a foreign place must discover new ways of life.
Meanwhile, those receiving newcomers will seek new
ways to welcome, serve and integrate them.

What, in the end, makes a place special to those


who inhabit it? The landscape? The traditions? The
connections shared amongst locals, from barbers to
bankers? In 2016, brands that help people answer those
tough questions – in the context of an increasingly
borderless world – will prosper.

READ MORE IN THE INNOVATIONS DATABASE: LOCAL LOVE


32

LOCAL LOVE

T HE E VOLU TION OF
ABUSE
OPEN ARMS
2016’s desire to welcome
newcomers with OPEN ARMS has 2015
evolved out of past trends around BR A ND
local pride and brand values. S TA NDS
Winning brands In response to subway
started contentious, violence, Brazilian feminine
painful and necessary hygiene brand Dermacyd
conversations. campaigns for female-
only subway cars.

SPARE
ROOM

2012 2016
CEL EBR AT ION OPEN A R MS
N AT ION Amid an increasingly fluid
global movement of people,
Booming emerging Beauty brand Sol de Set up in the wake of the
locals look for brands that Syrian refugee crisis, Refugees
markets proudly Janeiro, which celebrates
help welcome, integrate Welcome is ‘the Airbnb for
exported, and even iconic Brazilian beach
culture, is stocked by
and serve newcomers. refugees’ and operates in
flaunted, their national
and cultural heritage. Sephora in the US. multiple European countries.
33

LOCAL LOVE

SIGNS O F T HE T IME S

THE EVOLVING IMPACT


OF GLOBAL MIGRATION 51%
IN 2015, 51% OF US CITIZENS SAID
IMMIGRANTS MAKE THEIR COUNTRY
STRONGER BECAUSE OF THEIR HARD WORK
AND TALENTS, UP FROM 31% IN 1994.
PEW RESEARCH, SEPTEMBER 2015

BETWEEN JANUARY AND AUGUST 2015,


THE THREE MOST COMMON SURNAMES OF
COMPANY FOUNDERS IN ITALY WERE HU,
CHEN AND SINGH. ROSSI, AN ITALIAN NAME,
WAS THE FOURTH.
CAMERA DI COMMERCIO, MONZA AND
BRIANZA, AUGUST 2015

66%
GERMANY ESTIMATES THAT UP TO 1.5
MILLION MIGRANTS ARRIVED IN 2015.
66% OF GERMANS SAY IMMIGRANTS
MAKE THE COUNTRY STRONGER.
PEW RESEARCH, SEPTEMBER 2015
34

LOCAL LOVE

OPEN ARMS
BUILD BRIDGES, NOT WALLS.

The past year saw epic global movement of peoples, and the A BR AÇ O C U LT U R A L
intensification of immigration debates. In 2016, expect the impact to be School is staffed by refugees teaching
felt. While some will fight to protect their locality from ‘outsiders’, many about their native cultures

will welcome them on a human and economic level. A huge challenge for
Abraço Cultural (‘Cultural Hug’) is a school
populations around the world. An urgent call for brands to step up. in São Paulo where lessons are taught by
refugees from around the world. The first
classes began in July 2015, and students can
study a refugee teacher’s native language
WHY NOW? WHAT NEXT?
or learn about their national culture and
heritage, from cooking to dancing and more.
DISLOCATION BRAND STANDS
The school was created by Atados, a platform
An estimated 4.5 million refugees have What side of history does your brand for discovering volunteering opportunities,
left Syria, many heading for Europe. stand on? Honey Maid declared its and the nonprofits Adus and BibliASPA.
Thousands more are coming from Eritrea, position with a campaign about a
Afghanistan and more. The impact will be Dominican family in the US.
felt for decades.
CITIZEN POWER
POROUS BORDERS While Europe’s politicians are stalled HO N E Y M A ID
The sight of Syrians navigating to their over the refugee crisis, citizens are busy American life seen through the
new countries by smartphone. A USA in building solutions. Refugees Welcome,
lens of a Dominican family
which 45 million are now foreign-born for example, is ‘the Airbnb for refugees’.
according to Pew Research. Yes these are How can you empower these citizens –
local phenomena. But they are signals and the new arrivals they are reaching out US cracker brand Honey Maid created a
television campaign that depicted the Gomez
of a global shift towards a smaller, more to? Partnerships? Resources? Expertize?
family – a family of Dominican immigrants – as
connected world in which the movement
CELEBRATION they celebrated Independence Day. Running
of peoples will only become more fluid.
across the Fourth of July weekend, the ad saw
For many, new arrivals mean a heightened
CONSCIOUSNESS the family talking about their experience
impulse to explain and celebrate
of arriving in the US. Honey Maid said
From South Africa to the Gulf States, their local culture. Beer brand Molson
the ad was a response to the reality that
from Europe to the USA, the events of celebrated Canadian multiculturalism,
76 million people in the US, one-fifth
2015 have put immigration at the top of while a group of Portland actors
of the total population, are now
popular consciousness. affectionately satirized their hometown. part of an immigrant family.
35

LOCAL LOVE OPEN ARMS

M OL S O N
Beer fridge celebrates Canada’s racial diversity

In July 2015, Canadian beer brand Molson unveiled


the Global Beer Fridge. Created in partnership with
Google and intended to celebrate Canada’s multi-
GO O G L E
ethnic population, the fridge would Tech giant adds more support for
only open once it had recognized Arabic to its Instant Translate app
‘I Am Canadian’ – Molson’s brand
slogan – spoken in six different
languages. Launched just before In October 2015, as part of its response
Canada Day, the fridge was to the European refugee crisis, Google
available to visitors of the Toronto added new functionality to its Instant
2015 Pan Am Games, and used Translate app for Arabic to German
Google technology to recognise and Arabic to English text translation.
over 40 languages, including The feature enables users to point
French, Hindi and Mandarin. their smartphone at German or English
text and see it instantly translated
into Arabic (and vice versa). Google
reported the new feature was prompted
by a five-fold increase in requests
for Arabic translation in Germany.
S T O P T EL LIN G PEO PL E
A B OU T P ORT L A ND
Portland actors playfully discourage
migration to their city
R EF U GEES W ELC O M E, WOR K EER ,
W ELC O M E TO DR ESDEN
The US city of Portland, Oregon, has a
A wave of digital innovations helps refugees settle in new locations reputation for hipster culture that has been
amplified by the TV comedy sketch show
The Syrian refugee crisis has prompted a wave of innovations from Portlandia. In January 2015, a group of
local and independent creators. Launched in multiple European Portland actors created a five-minute video
countries in October 2015, Refugees Welcome is an ‘Airbnb called Stop Telling People About Portland,
for refugees’ that connects citizens with refugees in need in which they attempt to discourage
of lodging. By early November, the site had matched 365 newcomers to the city. As of early November,
refugees. Launched by two German students in July 2015, the video had received over 342,000 views
Workeer connects refugees to local employers. Welcome to on YouTube. According to a 2015 survey by
Dresden is an app launched in September 2015 that provides transport company United Van Lines, Oregon
information and support to refugees arriving in the city. was the most frequent destination for US
citizens who moved out of state in 2014.
PLAYSUMERS

PARTY OF ONE
In 2016, consumers are
more open than ever to
some solo fun.
37

n 2016, the eternal desire for play will continue


I to interact with the age of digital-fueled instant
encounters. In other words, 1,000 friends and strangers
will remain a tap away, and a host of startups will find
yet more ways to slice, dice and display them. But while
all of that will be assumed, many of the most coveted
leisure experiences will lie elsewhere.

We’re not talking about an end to the long-standing


relationship between sociability and fun. But now, long-
term social shifts and new technologies are dissolving
the traditionally stable relationship between fun and
social groups. The result is a fundamental change in
the way people think about what it means – and how it
feels – to be alone.

For brands that truly understand solo fun, the party is


only just starting.

READ MORE IN THE INNOVATIONS DATABASE: PLAYSUMERS


38

PLAYSUMERS

T HE E VOLU TION OF

PARTY OF ONE
With shared social and immersive
experiences taken for granted, 2014
in 2016 consumers seek events, NE W N O R M A L
products and services tailored for
As new beliefs on
them to enjoy alone. everything from marriage
Modamily pairs individuals
to sexuality and gender and couples looking
roles emerged, traditions to co-parent without a
were eroded and diversity romantic relationship.
was embraced.

2010 2016
C US TO M Y ZED PA RT Y
Consumers sought O F O NE
out innovative new
At their San Francisco Saturated by social Samsung send one person
personalized products flagship, US jeans brand to a Tibetan monastery for
connection, consumers
and services. Levi’s opens the Levi’s Tailor 100 days to catch up on
embrace playful
Shop, where customers can experiences designed for their favorite TV shows.
create one of a kind items. them and them alone.
39

PLAYSUMERS
SIGNS O F T HE T IME S

24%
OF GLOBAL TRAVELERS

62% 19%
JOURNEYED ALONE ON THEIR
MOST RECENT OVERSEAS
LEISURE VACATION, UP FROM
15% IN 2013.

VISA GLOBAL TRAVEL


INTENTIONS STUDY, MAY 2015
IN THE US, RESERVATIONS OF HOUSEHOLDS
FOR SOLO DINERS HAVE WORLDWIDE WILL BE SINGLE
GROWN BY 62% IN THE PERSON BY 2030. SINGLE
PAST TWO YEARS, MAKING PERSON HOUSEHOLDS WILL
DINING SOLO THE FASTEST BE THE FASTEST GROWING
GROWING TABLE PARTY SIZE. PROFILE BETWEEN 2014
AND 2030.
OPEN TABLE, OCTOBER 2015
EUROMONITOR, JUNE 2014
40

PLAYSUMERS

PARTY OF ONE
PLAY, MYSELF, AND I.

Conditioned to assume shared social and immersive experiences, in 2016


consumers across the globe will seek something completely different: M O S T E XCLUSI V E W EB SI T E
events, products and services tailored for them to enjoy alone. Website can be accessed by just one person at a time
Flying solo has never been such fun ;)
Launched in the US during March 2015, Most Exclusive Website
allows just one person to visit at a time. Aspiring visitors apply
for a ticket to browse the site, waiting in the virtual line for their
turn. Once granted entry they are allowed access to the site alone
WHY NOW? WHAT NEXT? for up to 60 seconds, where they can view an exclusive gif, write
a message, and view messages left by previous visitors. As of
STIGMA SHIFT EXCLUSIVITY OF ONE November 2015 over 1 million entry tickets had been granted.

Accelerating global urbanization and Play to consumers’ status desires by


long-term progressive shifts in lifestyles, creating one-off solo experiences that
relationships and gender roles have they have to work for. After all, the thrill
demolished the stigma around solitude. of solo is only surpassed by the thrill of
Indeed, with connection now so easily experience exclusivity – see STATUS S OLO SHOT
available, solitary activities often denote TESTS on page 16 for more. Device allows solo users to
an elevated sensibility. livestream video of themselves
CELEBRATE ALONE
VIRTUAL TOGETHERNESS At what point in their engagement with
Billed as a ‘robot cameraman’, SOLOSHOT allows a
Always-connected consumers are never your product or service do solo users
solo user to record and edit high quality footage of
truly alone. Now, a solo experience can want some fun? Check out how Nissin
themselves from up to 2,000 feet away. A wearable
be snapped, shared or streamed to Foods entertains solo noodle diners.
‘Tag’ tracks movement and syncs with a ‘Base’, which
others who are not physically present –
attaches to a camera and points and
and that means a status hit. ESCAPE THE NOISE
zooms it to keep the user in shot.
Solo experiences are often as much
An automated editing feature
PERSONALIZE ME about escaping the urban noise as identifies highlights and pushes
In a world where digital personalization enjoying an experience alone. Samsung’s them to the SOLOSHOT cloud.
is ubiquitous, leisure experiences aimed TV catch-up stunt let one participant A livestreaming app (set for
at the masses seem increasingly vanilla. escape the daily grind and focus on what beta-launch in January 2016)
Now, consumers seek play that, if not really matters. While Tokyo’s Book and allows users to broadcast
tailored to them, can at least be enjoyed Bed is a refuge from the city where solo live footage to the SOLOSHOT
on their own terms. visitors can curl up with a book ;) community.
41

PLAYSUMERS PARTY OF ONE

S A MSU N G
TV catch-up stunt sends one person
to Tibetan monastery for 100 days

A September 2015 stunt saw Samsung


send one individual to Thiksey, a Tibetan
monastery in the Himalayas, to watch
TV for 100 days on the brand’s new
SUHD TV. The Catch-up Grant was open
to viewers across the Nordic regions, B OOK A ND BED
who were asked to submit videos
Japanese bookstore has solo sleeping compartments
explaining why they had fallen behind
on their favorite shows. A stipend of
SEK 15,000 (USD 17,000) per month was Taking bookings from November 2015, Book and Bed
available to cover forfeited wages. Tokyo includes 12 single-occupant sleeping compartments
concealed behind bookshelves. Visitors are invited to
peruse the books, which are not available for purchase,
and enjoy reading in their own private space. The books
were provided by Shibuya Publishing Booksellers.
The hostel also includes 18 bunk bed-style sleeping
compartments. Prices start at JPY 3800 (USD 32) per night.
GÜ P U D S
Single-serve dessert pots
celebrate solo dining

In June 2015, Gü Puds celebrated


the UK launch of single-serve
dessert packs with a tongue-
in-cheek advertising campaign
NIS SIN FOODS
celebrating the benefits of solo dining. The ‘we’re done’
spots included a series of humorous break-up notes, Website entertains solo ramen diners
inspired by individuals who preferred to dine alone
rather than share pudding. Break-up lines included: March 2015 saw Japan-based Nissin
‘You bought OJ with bits in? We’re done’ and ‘That shirt Foods unveil a site created for people
with those shoes? We’re done.’ Viewers were invited to eating ramen alone. The website features
keep the conversation going across Japanese actor Takumi Saitoh who
social media using the hashtag entertains people as they eat, ‘blowing’
#GetSingle, with creative break up on their meal before explaining ‘I feel so
scenarios rewarded with prizes. happy watching you eat those delicious
noodles’. Users can also take a selfie
with the actor via their webcam.
EPHEMERAL

LIVESTREAM PRISONERS
In 2016, consumers will
embrace digital content and
livestreams that demand
their participation.
43

onnected living has fractured our relationship


C with time and attention. The human impact
continues to unfold (too much random YouTube, too
little work ;) while marketers and digital innovators
struggle to adjust.

But consumer expectations won’t wait for them. Way


back, we saw the move from static to real-time text
(blogs to Twitter). Next came static to real-time pictures
(Instagram to Snapchat). This year, the same happened
for video (YouTube to Periscope).

Next, primed by this constant avalanche of


livestreamed video, 2016 will see consumers demand
digital content that is timely and immersive; lasting in
impact even if fleeting in duration.

But prospering in the gold rush for human attention will


mean taking some counterintuitive steps...

READ MORE IN THE INNOVATIONS DATABASE: EPHEMERAL


44

EPHEMERAL
T HE E VOLU TION OF

LIVESTREAM
PRISONERS
Expectations around live 2011
experiences have collided with T R A NSPERIEN CES
brand-led demands to create
With expectations around
2016’s LIVESTREAM PRISONERS. digital content evolving,
Musicity app
consumers sought immersive allows musicians
multi-platform experiences. to attach tracks to
city landmarks.

LIVE PERFORMANCE

2009 2012
LI V IN G IN T ER AC T-
T HE LI V E V ERT ISING
As experiences trumped Foo Fighters Primed by the online space McDonald’s lets
real-world possessions, stream live gig to expect participation, diners in Stockholm
consumers embraced the on Facebook. consumers turned to fun use smartphones to
exclusivity of ‘live’ events. and interactive campaigns. play Pong on giant
digital billboards.
45

EPHEMERAL

2013 2016
S W E AT EQUI T Y
With the brand/ LI V ES T R E A M
consumer relationship
Los Angeles ice- PRIS ONERS
thoroughly democratized, cream store Peddler’s
consumers let brands Creamery has Expectations around
demand real, effortful customers churn livestreamed content and
(and fun!) participation. ice cream by bike. meaningful brand-led demands
converge as consumers
embrace digital content that
requires real participation.

TURN
O
THE L FF
IGHT
4

2014 Oh my god!
Earth Hour livestreams concerts
that can only be accessed if
T R A NSIEN T S viewers turned off the lights
and watched in darkness.
New digital tools
facilitated a more fluid,
Snapchat allows
transient form of digital users to string posts
sharing that better together to form
reflected the lives of temporary stories.
connected consumers.
46

EPHEMERAL

LIVESTREAM
PRISONERS 40 years
LIVING IN THE DIGITAL MOMENT. of livestreamed footage is watched
every day by 10 million Periscope users.
Periscope, August 2015
Consumer expectations around digital content have been heightened by
the advent of Periscope, Meerkat, and others offering an avalanche of
livestreamed digital moments. In 2016, one way to attract the endlessly
distracted? Taking your viewers PRISONER by demanding active, physical
participation in order to watch your content.

WHY NOW? WHAT NEXT?

ATTENTION DEFICIT MEANING


In 2015, the average US adult spent Choose a demand that aligns with your
2.4 hours more time with digital media broader message. Earth Hour, which
per day than in 2010 (KPCB, May 2015). promotes energy saving, livestreamed
Now, unable to commit yet more time, concerts that could only be watched if
they’ll ruthlessly seek out more engaging viewers switched off their lights.
content experiences. # H A ND S O F F
BETTERMENT
STATUS TESTS Free porn clips in exchange for hands-on contact
Constructively push consumers by
Participation means the chance to display
incentivizing a self-improving behavior.
creativity or skills, and join a community In May 2015, French adult film producer Marc Dorcel unveiled
The Run With Heart Foundation
of others who have done the same. See #HandsOff, a campaign to encourage visitors to pay for porn.
encouraged Polish teens to get active.
STATUS TESTS on page 16 for more. The campaign allowed viewers access to free adult content
on Dorcel’s subscription-only porn site, but users could only
DIVA DEMANDS
LET’S GET PHYSICAL watch the content while their fingers remained on specific
The more outrageous the demand, the
Turning a digital experience into one that keys – spaced to require both hands ;). If fingers were removed,
more memorable the experience. See the content stopped. Subscribers to the EUR 99 per month
demands physical participation adds a
how the #HandsOff campaign increased premium service increased by a factor of 50 and traffic to the
new layer of immersion and meaning –
subscriptions to the host site by a factor website was 27 times higher after the campaign launched.
making the whole experience more fun
of 50.
and memorable.
47

EPHEMERAL LIVESTREAM PRISONERS

T IDA L & USHER


E A RT H HOU R
Music video demands viewer’s undivided attention
Environmental charity’s concerts
can only be watched in the dark
October 2015 saw Usher unveil Don’t Look Away,
an interactive video experience that accompanied
the single Chains. Utilizing facial recognition, the The WWF’s Earth Hour is a movement that
video only played when it detected that viewers were encourages people to switch off all lights
focused on their screens. Dealing with racial injustice, for one hour each March. In March 2015 it
the video includes stills of victims of police violence ran Dark Tickets: livestreamed concerts
(including Trayvon Martin, Rekia Boyd and Caesar available only when the viewer turned the
Cruz). Don’t Look Away was released exclusively on lights off. Light levels were gauged via
the US-based music-streaming platform Tidal. webcam, and without darkness the content
would not display. Running across Costa
Rica, the project saved enough electricity to
power 6,480 houses for one day. We’re not
sure if that calculation took account of the
power needed to run the viewing devices ;).

R EEB OK
RU N W I T H HE A RT FOU NDAT ION Treadmills power Seoul movie theater
Polish non-profit lets only active teens access music
In August 2015, Reebok unveiled a
After a survey revealed that over 50% of Polish teens campaign to get people moving at a movie
don’t do any exercise, non-profit organization Run With theater in Seoul. Mid-way through the
Heart Foundation partnered with several major music movie, viewers had to run on a treadmill
labels on Moving Tracks. Available to download from at the front of the theater to power the
May 2015, the free mobile app allows users to listen screen and keep the movie playing. The
to new, unreleased music when their device senses initiative was introduced to promote the
movement. According to the foundation, the scheme sports brand’s ZPump shoe, with the
incentivized exercise and combatted childhood obesity. message, ‘Get Moving, Get Pumped’.
HELPFULL

CONTEXTUAL
OMNIPRESENCE
In 2016, new channels
and context mean right
place and time.
49

n 2016, you could be forgiven for thinking that


I a brand must be everywhere at once. After all,
expectations around customer service now defy the
laws of physics. Miss a customer’s moment of need,
and you might not get another chance.

That’s why you’ve sat through multiple brainstorms


around your (or your client’s) omnichannel strategy. ‘We
must use every platform at our disposal!’

Average brands will keep plodding down that path. But


an ‘omnichannel strategy’ is wrong-headed in the same
way as an ‘Internet of Things strategy’: it focuses on
the technological possibilities, and not customer needs
and wants.

In the next 12 months, smart brands will solve a more


meaningful equation: innovative new channels +
nuanced new contexts = right place + right time.

READ MORE IN THE INNOVATIONS DATABASE: HELPFULL


50

HELPFULL
T HE E VOLU TION OF TRIPADV ISO R

CONTEXTUAL
OMNIPRESENCE
Expectations around brand 2011
service, use of data and connected SY N CED
objects have converged to drive SERV ICES
CONTEXTUAL OMNIPRESENCE.
Consumers embraced Sat Nav makers TomTom
the convenience of partner with TripAdvisor
multiple services to make customer
integrated into one. reviews available
through their devices.

D
SALA
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p H E
½ cu NNAIS

2008 2012
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2 tbs ONIN
SEAS
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e P
1 cub

BR A ND DATA
BU T L ERS DI V INI T Y
Brands honed their Wrangler provides a Brands collected and Hellmann’s Brazil offers
butlering skills and pop-up laundromat for interpreted personal supermarket shoppers
focused on helping muddy attendees of the data to provide unique customized receipts
consumers make the often rain-soaked Scottish recommendations and help featuring recipes inspired
most of their daily lives. music festival Lowlands. people make decisions. by their purchases.
51

HELPFULL

2014
IN T ER NE T OF
SAFE TO EAT?
2016
C A RING T HINGS
Consumers embraced Baidu, the Chinese C ON T E X T UA L
connected objects tech giant, unveil smart O M NIPR ESEN CE
with a clear mission: to chopsticks that detect
actively care for them. food contaminated Driven by consumers that are
by old cooking oil. near-impossible to please, brands
use new channels and nuanced
contexts to serve customers at
the right place and time.

@
@ @

2015 Durex France creates a bot


that searches for and pairs up
BR A ND broken-hearted Twitter users.

EC O SYS T EMS
Consumers are drawn Uber partner with Indian
deeper into the sprawling mobile carrier Bharti
ecosystems that a handful Airtel to offer customers
of tech giants operate. free in-car wifi.
52

HELPFULL

CONTEXTUAL
OMNIPRESENCE O M NICH A NNEL #INSP O

GET READY FOR NEW CHANNELS AND NEW CUSTOMER CONTEXTS.

In 2016, a slew of businesses will continue their scramble to pull together


complex omnichannel strategies. And consumers will continue not to
care. They don’t need every brand they interact with to be everywhere,
all the time. Instead, they’ll embrace smart brands that use new channels
and nuanced contexts to be there as and when they’re needed.

WHY NOW? WHAT NEXT?


DO MIN O’S
INTERNET OF THINGS NEW CHANNELS Pizza can be ordered via SMS,
Connected objects provide ever-richer Don’t limit your product, service or emoji or smartwatch
data on consumers’ preferences and experience distribution to traditional
habits, along with the ability to reach channels. Put yourself in the shoes of the When devising a CONTEXTUAL
them with tailored services. Now, user, and ask where they’re most likely to OMNIPRESENCE strategy, it can pay to first
consumers will expect brands to use be struck with a need that you can meet. ground your discussion in the best examples of
both. See how Amazon has turned Create a new channel and get there omnichannel. Take Domino’s highly regarded
connected objects into retail channels. before your competitors! Pizza AnyWare initiative. The pizza chain has
been continuously expanding the variety of
BRAND ECOSYSTEMS NEW CONTEXT ways that fans can order food. Customers
Smaller brands are able to extend their Since the advent of smartphones, can voice order using the Siri-like app Dom,
reach via partnerships with tech giants location has been the key customer by tweeting or texting the pizza emoji
from WeChat to Uber. context leveraged by brands to serve and while driving home in a compatible
consumers. The consumer is near a store Ford. They can even track their pizza’s arrival
NO HOLDS BARRED time via the Domino’s smartwatch app.
– send them a discount coupon! They’re
Aggressive and unorthodox competitors at the airport? Send destination info!
(see those featured opposite) aren’t Great. But in 2016, new technologies and
limiting their reach to traditional channels new data means that almost anything
Yes this is playful, but it’s also impressively focused on
or slavishly using location as their only can be an actionable context, from your
pizza lovers’ need for ultra-easy ordering. Next: what
consumer touchpoint. Brands that do will customer’s emotional state to their
other channels are there, beyond the smartphone? And
lose out. attention span, and much more.
new contexts, beyond location? Keep reading...
53

HELPFULL CONTEXTUAL OMNIPRESENCE

NE W CH A NNEL S NE W C O N T E X T

A M A ZON DU R E X
Smart devices auto-replenish Condom brand matches
products, from detergent to dog food broken-hearted Twitter users

March 2015 saw Amazon turn fridges and Ever considered relationship status as a
other appliances into new sales channels customer context? In March 2015, Durex
via their Amazon Dash Buttons. In October France unveiled the #LoveBot: a Twitter
2015, Amazon announced 11 partners for the bot generating automated responses
Dash Replenishment Service. Amazon Prime to people’s tweets. Whenever a Twitter
members who own compatible connected user published a tweet featuring the
devices such as Samsung printers, Obe pet broken heart emoticon (</3), the bot
food bowls and Brita water pitchers will have would match the individual with another
their toner, dog food and filters replenished user with a broken heart, and send both
by automated orders when stocks are low. users a tweet suggesting they connect.

HOT EL BA NKS T ELEFÓNIC A R ESE A RCH


‘Fashion bars’ offer guests Researchers can detect boredom
apparel and accessories via mobile activity

May 2015 saw Antwerp’s Hotel Banks turn What about mood or attention as a
their hotel rooms into a fashion channel. customer context? A September 2015
The Mini Fashion Bar was an initiative report from Barcelona-based Telefónica
created with French fashion brand Research showed that researchers are
Pimkie. Rooms were stocked with apparel able to use smartphone activity to
and accessories chosen to match local tell when users are bored (with 83%
weather and activities. Guests could use accuracy). Research participants were
clothes from the fashion bar and purchase sent alerts to check out an article on
items upon checkout. A dedicated BuzzFeed, which (unsurprisingly!)
fashion concierge could be contacted received more clicks and engagement
for additional sizes or different garments. from those who were identified as bored.
JOYNING

S.I.P. ECONOMY
In 2016, Socially Important
People drive a new
economy of platforms,
products and services.
55

here’s an epic shift going on when it comes


T to the way people relate to making and
consuming, work and play (see FUZZYNOMICS for
more on that). Among the consequences in 2016: the
motivations that fuel social behaviors are changing fast.

The idea that the creators that most impact our lives
– artists, musicians, writers and others – must remain
distant and unknowable has already been demolished.
Today, exalted creators are also peers to connect with.

Now, the economy around these Socially Important


People – and the millions who follow them or aspire to
their popularity – will become increasingly mainstream,
driving the emergence of new products, services,
events, platforms, apps and more.

Are you ready to serve the S.I.P. ECONOMY?

READ MORE IN THE INNOVATIONS DATABASE: JOYNING


56

JOYNING

T HE E VOLU TION OF

S.I.P. ECONOMY 85 90
Empowered to achieve massive reach
and driven by an entrepreneurial 2008
mindset, a new breed of creators are S.I.P.S
fueling the S.I.P. ECONOMY.
31
Empowered by social
media, a new kind of
Klout is a platform that ranks
Socially Important users according to online
People offer influential social media influence. Users
recommendations judged influential are offered
and curation. perks and rewards by brands.

2004 2009
S TAT US SEL L SU M ERS
SK IL L S New expectations
fueled by the peer-to-
Saturated by new Japanese camera brand YouTube opens its
Nikon expands the
peer revolution see revenue partner program,
products, consumers
Nikon School, a global consumers looking for previously restricted to
sought status by acquiring,
program of photography innovative ways to profit brands and selected
displaying and sharing
workshops and lessons. from what they have. users, to everyone.
new knowledge and skills.
57

JOYNING

2013
EN T R EPR ENEU RI A
Brands fostered
the entrepreneurial
Turkish Airlines announces its
2016
ecosystem with support Invest On Board initiative with
and services for an accelerator. Business class
ambitious startups. passengers can watch video
S.I.P. EC ONO M Y
pitches by startups during flights.
As the line between S.I.P.s and
mainstream celebrities disappears, a
vast economy grows up around S.I.P.s
and the millions who follow them.

2014 Victorious allows YouTube


creators to make apps that let
M2P them aggregate content and
manage their audience.
Consumers seek
connections to peer
In Brazil, mayonnaise brand
mentors who can Hellmann’s launches WhatsCook,
educate, advise and a free service inside WhatsApp
empower them. that allows users to connect with
expert cooks for kitchen advice.
58

JOYNING

S.I.P. ECONOMY 17,000


NEW CREATORS. NEW FANS. NEW ECONOMY.

YouTube creators now have


more than 100,000 subscribers
Social shifts and new technologies erased the line that divided creative
Tubular Labs, October 2015
peers from fully-fledged celebrities. Now, new breeds of S.I.P.s – and the
millions who follow them – are fueling a vast economy that incorporates
new products, services, digital tools, live events and more. Your
opportunity? Partner with them, serve them, empower them – and profit!

WHY NOW? WHAT NEXT?

DEMOCRACY EMPOWER
BE AU T YC ON
The deepest driver? The epic New-style creators need new kinds of
democratization of creativity, distribution tools; their fans want instant connection Conferences, platform and subscription
and fame, fueled by greater digital and and special treatment. Victorious allows boxes connect beauty creators and fans
cultural (not economic) equality. YouTube Creators to make apps that hit
all those bases. Beautycon connects fashion and beauty social media
NEW LABOR stars, brands and fans. March 2015 saw the brand launch
The world of work is being disrupted (see EVENTS
an online platform to provide both original content and
our NEW LABOR trend on page 88). Rising The democratization of creativity may content aggregated from influencers on Instagram,
numbers see building a fanbase as a have digital roots, but its participants still Snapchat and YouTube. In May 2015, Beautycon held
legitimate career path. crave connection in the physical world. its first event in London, bringing thousands of creators
Beautycon runs events that brings social and fans together. A previous event
YOUTUBE CREATORS media beauty stars and fans together. in Los Angeles achieved over
Beauty vlogger Michelle Phan led the 300 million impressions on social
way, but in 2015 a host of new YouTube PRODUCTS media. In October 2015, the
mega-creators such as PewDiePie (40 Now that S.I.P. product lines are brand launched Beautycon BFF: a
million subscribers) and Zoella (9.4 million becoming commonplace, ask: how can USD 99 per year subscription box
subscribers) truly entered the mainstream we lend our resources and expertize to containing products chosen by

creators who want to go to market? See social media beauty stars.


via publishing deals, brand sponsors and
more. Of course, few will replicate their how Digital Brand Products is supporting
huge success, but many will try! S.I.P.s in the fashion and lifestyle space.
59

JOYNING S.I.P. ECONOMY

DIGI TA L BR A N D PRO DU C T S
Platform lets bloggers launch own fashion brands

In June 2015, US-based social agency Digital Brand


Architects launched Digital Brand Products (DBP):
V IC T O R IOUS a platform to enable bloggers to build their own
lifestyle or fashion labels. DBP will provide bloggers
Apps connects YouTube creators to fans
with support in product development, manufacturing,
merchandising and marketing, and anticipates that 10
Launched in April 2015, US-based Victorious product lines will have launched by the end of 2015.
makes apps that lets ‘digitally-born stars’ The agency was among the first to represent bloggers
connect with fans. The brand has partnerships as conventional media ‘talent’, and works with well-
with some of YouTube’s biggest names, known names, including Gaby Dalkin of What’s Gaby
including beauty expert Michelle Phan and Cooking and Julia Engel, founder of Gal Meets Glam.
comedian Ryan Higa. In total, Victorious
says it has agreements that reach more than
250 million fans and 40 billion annual views.
Creators can use Victorious to make their own
app for free. Via their app they can aggregate
content, manage their fanbase, offer in-app C OLL AT E T HE L A BEL
purchases and run fan polls and competitions.
Style blogger launches her own fashion brand

As the S.I.P. ECONOMY matures, expect an explosion


in S.I.P. product lines and brands from all corners of
the globe. In May 2015 Singaporean style blogger
FA NSIN O Velda Tan launched a new fashion brand called
App connects musicians and their fans Collate The Label. Better known as @Belluspuera
to her 129,000 Instagram followers, Tan previously
co-founded the popular fashion blogshop Love,
In March 2015, Israel-based app Fansino won Bonito. The debut collection was launched
best app of the year at the Mobile World at Singapore Fashion
Congress. The platform connects artists with Week and via a popup
their fans, giving artists the ability to monitor store at the department
streams of their music across all major store TANGS. Tan says
platforms, track social media mentions, and the label is aimed at
connect to individual fans with ‘one tap’. Fans consumers who want
can connect to artists and one another, and affordable luxury.
their fan activity around a particular artist can
be ranked and compared to that of others.
HUMAN
BRANDS

TWO-WAY
TRANSPARENCY
Smart brands turn
transparency back on
their customers in 2016.
61

hat next for the epic, ongoing story of the


W relationship between brands and customers?

First, expect deepening consumer fatigue at spent


brand tactics. The faux-funny brand Twitter feed.
The empty customer service rhetoric. The obligatory,
underfunded CSR program. They’ll all keep happening.

Second, the consumer arena will be darkened by a


lasting shadow cast by brand scandals. There were
plenty in 2015 (more on those in BETTER BUSINESS),
and it’s with depressing confidence that we predict
there will be more in the coming 12 months.

The key consequence? Consumers will intensify their


search for those few brands innovative enough to
create relationships that go beyond the superficial and
transactional. For brands that dare (and most won’t),
this will mean embracing some bold and even counter-
intuitive answers.

READ MORE IN THE INNOVATIONS DATABASE: HUMAN BRANDS


62

HUMAN BRANDS
T HE E VOLU TION OF

TWO-WAY
TRANSPARENCY
The assumption of P2P, a more 2008
transparent consumerism and a P 2P
thirst for self-improvement meet in
Accustomed to peer-
TWO-WAY TRANSPARENCY. to-peer buying and
Airbnb disrupts the
selling, consumers hotel industry by
waded deeper into allowing users to let
the sharing economy. their homes to visitors.

“Their coffee
restored

2007 my faith!”
2012
T R A NSPA R EN CY DEM A NDIN G
T RIU M PH BR A NDS
Consumers embraced the Yelp, the online platform In a more democratic Vitoria soccer team
ability to discuss, review that lets users post consumer arena, change their strip to
and rate every product, reviews of local service consumers embraced white, asking that fans
service and experience. providers, hits 6 million brand-led demands that donate blood to restore
visitors per month. served a higher purpose. the original red color.
63

HUMAN BRANDS

BURNED
630 KCAL

2013 2016
1000
C U R R EN CIES MILES

OF CH A N GE
T WO-WAY
In endless pursuit of self- airBaltic launch Burn
improvement, consumers the Miles, an app that
T R A NSPA R EN CY
turned to brands that rewards passengers Accustomed to P2P two-way ratings
rewarded them for with loyalty points
and brand-led demands, and
positive behaviors. when they go running.
primed to expect brands to be
ENLIGHTENED, consumers embrace
brands that review and rate them in
the name of a better experience.

–10%
2015 Australia’s Art Series Hotel Group
launched Reverse Reviews, a
ENLIGH T ENED promotion that saw staff rate

BR A NDS hotel guests in return for the


chance to win discounts.
Tired of endless Audi Swedish Snow
faux-friendly brands, Rescuers connects
consumers demanded stranded drivers with
meaningful action to volunteer Audi 4x4
make their lives better. owners via an app.
64

HUMAN BRANDS

TWO-WAY 45%
TRANSPARENCY of global consumers would be happy
TURN TRANSPARENCY BACK ON YOUR CUSTOMERS IN 2016. to be rated by a company whose
services they had used.
The Future Foundation, November 2015
Primed by the P2P economy and on-demand services such as Uber –
which sees drivers rate their passengers – in 2016 consumers will
embrace brands that subject their customers to reviews and ratings.
Yes, a counter-intuitive trend. But consumers have seen ample proof that
two-way ratings can mean a better experience for everyone.

WHY NOW? WHAT NEXT?

UBER EFFECT VARIATIONS


P2P giants such as eBay and Airbnb mean For on-demand truck hire startup
peer sellers are long used to being rated. Buddytruk, this trend is core to their
But it’s Uber that’s shown consumers entire proposition. For the Art Series
LIBERT Y M U T UA L ,
how being rated as an ordinary customer Hotel Group it inspired a light-hearted
creates a virtuous circle of better campaign. Your variation?
A M ERIC A N FA MILY
customer behavior and better service. INSU R A N CE & NES T
DATA
Discounts for customers who share data
DEMANDING BRANDS Consumers don’t have to be physically
In a relationship of equals, demands present to be rated. Think shared data.
In June 2015, Liberty Mutual and American
can go both ways. Rising numbers of Analyze, rate and reward – see how
Family Insurance announced discounts on home
consumers are willing to let brands make insurance company Liberty Mutual
insurance for customers using a Nest Protect
demands – if it serves a broader good. partnered with Nest to do just that.
data-sharing smoke and carbon monoxide
detector. The discount – worth on average
SUBVERSION CULTURE
USD 52 – applied to customers signing up for
Sadly, a minority of customers ruin shared Move beyond concrete ratings and
the Nest Safety Rewards program, and was
experience for others. Now, well-behaved reviews and encode a spirit of TWO-WAY
available in a number of US states. Data sent
consumers will expect brands to shine a TRANSPARENCY in your organizational
by Nest Protest includes information about
light on, and stop, bad behavior. culture, as coffee chain Pret does.
the detector’s batteries and condition.
65

HUMAN BRANDS TWO WAY TRANSPARENCY

78%
of Uber drivers are very happy or
somewhat happy with the company.
A LDEN & H A R LOW Uber, January 2015
PR E T
Boston restaurant shames rude
customers on social media Staff reward favorite
customers with free coffee

In March 2015, Boston restaurant Alden


& Harlow posted an Instagram photo of In April 2015, the CEO of UK-based coffee
two customers they claimed had ‘insulted chain Pret revealed that all Pret staff
and berated staff’. Alden & Harlow are given a ‘freebie budget’ that allows
say the customers sat themselves with them to give free coffee to customers
no reservation, refused to leave, and they really like, encouraging them to
threatened to post a bad review online. identify and reward the friendliest (or
Restaurant owner Michael Scelfo said, most fanciable!) customers. The ‘freebie
‘...Uber allows for service providers to budget’ operates in place of a formal
rate customers. We should move to that loyalty card scheme, and Pret say 28% of
customers have benefitted from a free item.
system.’ The post received over 900 likes
TA RG E T & BU DDY T RU K
and 200 comments, mostly supportive.
Retail giant partners with two-way
rated delivery service

Delivery service startup Buddytruk allows


A RT SERIES HOT EL GROU P
users on-demand access to local truck
Guests rated by staff to earn discounts and rewards and van drivers. In July 2015 the business
partnered with US retail giant Target in
Los Angeles, allowing Target shoppers to
In April 2015, Australia’s Art Series Hotel Group launched
book same day home deliveries for large
Reverse Reviews, a promotion that saw staff rate hotel
items. Buddytruk operates a two-way rating
guests. Guests at any of the group’s boutique hotels could
system in which customers rate drivers and
opt in for free, with their behavior and demeanor being
vice-versa. The service is also available
rated and five star reviews published online. Any guests
in Austin, Orange Country and Chicago,
who achieved a rating over four stars were rewarded with
with plans to expand across the US.
complimentary food and drinks, stays or upgrades.
BETTER
BUSINESS

INSIDER TRADING
In 2016, the right internal
culture becomes an
external asset.
67

he on-going convergence of status seeking


T and guilt over negative impacts continues in
2016. First, consumers keep looking for the BIG BRAND
REDEMPTION that will see mega-brands become part
of the answer, not the problem. Second, they intensify
their search for consumption that lets them signal: ‘I’m
doing the right thing’.

Amid all this, the march of transparency means brands


can expect scrutiny from unexpected angles (yes, we
mean Amazon – who knew the world cared so much
about their middle managers?). Prepare then, for
consumers determined to know about a brand’s ethical
status across all dimensions: internal and external.

The challenge? To examine aspects of your


organization that previously didn’t even feature on the
BETTER BUSINESS radar. And to make changes when
you don’t like what you see.

READ MORE IN THE INNOVATIONS DATABASE: BETTER BUSINESS


68

BETTER BUSINESS

T HE E VOLU TION OF

INSIDER TRADING
A desire for GUILT-FREE
CONSUMPTION has combined with 2010
skepticism over traditional CSR to BR A ND
fuel demand for INSIDER TRADING. M OV EM EN T S
Marketing and The American Express
campaigns are Members Project
embedded with a encourages cardholders
higher purpose. to donate time or
money to good causes.

2.78

“My pizza was

2007 2012
just average”

T R A NSPA R EN CY F L AWS O M E
T RIU M PH Consumers embraced
brands that were
Savvy consumers expected Dole traces fruit Domino’s livestreams
back to the farm
open and honest consumer feedback
to know everything
it was grown on. about their flaws. on billboards in
about every product,
service or experience. Times Square.
69

BETTER BUSINESS

2014
GUILT-F R EE
C ONSU MP T ION
2016
A growing desire for Rug Og Stub serves
meals made from
INSIDER T R A DING
continued indulgence
without damaging self, supermarket food As the status of consumers becomes
society or the planet. that would otherwise ever more bound-up in their ethics,
be thrown away.
and amid the rise of a more transparent
consumer arena, increasing numbers
look to brands to make positive
changes to their internal culture.

2015 Uniqlo offers a four-day work week


to employees to help them with
HUMAN family and study commitments.

A F T ER A LL
In a sea of CSR Feminine hygiene brand
initiatives, consumers Whisper celebrates
looked for more women challenging
meaningful change. Indian taboos around
menstruation.
70

BETTER BUSINESS

INSIDER TRADING
In most of the countries surveyed, the
TIME TO MAKE INTERNAL CULTURE AN EXTERNAL ASSET. income gap is at its highest level in
three decades, with the richest 10%
of the population earning 9.6 times
One powerful way to show consumers that your values align with theirs? the income of the poorest 10%.
Make meaningful positive changes to your internal culture, and then tell Organization for Economic Co-operation
the world about them. Yes, internal change is difficult. But in 2016 and Development, May 2015

rampant transparency will ensure that the best things about your culture
– and the worst – will make waves far beyond your office walls.

WHY NOW? WHAT NEXT?

STATUS MEETS AWARENESS TARGET THE PAIN


Growing transparency, and a host of Ask hard questions about your internal
media exposés (hi, Volkswagen, meet culture – and innovate for better answers.
FIFA, Nestlé and more), has shone a Uniqlo addressed Japan’s long work
spotlight on unethical internal cultures. hours by introducing four-day weeks.
For consumers – whose status is bound
up in the ethics of the brands they buy FILL THE GAP
from – your internal culture is now an Fill the gaps left by failing public services
unavoidable part of who you are. and government cuts. In India, where
adoption rates have fallen by 50% over
EMPATHY SHIFT the past five years, Flipkart launched a
Concern for economically vulnerable one-off allowance to support employees
workers is nothing new. Now, rising seeking to adopt. F LIPK A RT
inequality (see the stat opposite) and
WORK/HOME
Etailer unveils adoption allowance for new parents
growing job insecurity means empathy is
expanding to white-collar workers too. The boundaries between work and life
are increasingly blurred (see NEW LABOR July 2015 saw Flipkart unveil a policy giving staff members
BIG BRAND REDEMPTION? on page 88 for more). So think about adopting children a one-off allowance of INR 50,000 (USD
787). The Indian etailer’s employees can use the fee towards
Last year, we told big brands to REDEEM initiatives that improve the quality of
any expenses that occur during the adoption process, such as
themselves by becoming part of the life outside work. Starbucks helped UK
legal or agency costs. According to government guidelines,
answer, not the problem. We’re still employees get on the property ladder.
the cost of the entire adoption process is INR 46,000.
waiting. This is a great place to start.
71

BETTER BUSINESS INSIDER TRADING

R EI
Retailer pays employees to take Black Friday off

In October 2015, REI announced that all of its 143


stores would be closed on Black Friday, to allow staff
and shoppers to spend the day outside. The US-based
U NIQ LO outdoor apparel retailer’s 1,200 employees were paid
for the day and, along with shoppers, were invited to
Four-day week option introduced for employees
share their activities using the hashtag #OptOutside. A
co-op with over 5.5 million members, REI’s profits topped
Since October 2015, employees at Uniqlo’s Tokyo stores USD 2 billion in 2014. During the period, Black Friday
have the option to work four days a week. The four-day, was one of the retailer’s highest-grossing sales days.
40-hour week initiative – available to around 10,000
regional employees – switched workers to 10 hours per day
instead of eight, and is intended to help them fit in family
commitments and studies. Data compiled by the Japanese
government in January 2015 showed that 22% of Japanese
workers clock in more than 49 hours a week, compared
with 16% of US workers and 11% in France and Germany.

S TA R BUCKS IN T EL
Coffee chain helps employees CEO pledges USD 300 million to build
pay for rental properties a more diverse workforce

Amid rising rents in the UK, September 2015 In January 2015, during a keynote at the
saw Starbucks unveil Home Sweet Loan, a Consumer Electronics Show, Intel CEO
program giving its UK employees access Brian Krzanich announced plans to increase
to an interest-free loan to help them pay the diversity of the company’s workforce.
a deposit for rented accommodation. Any Citing lack of diversity in the tech industry,
barista who has been with Starbucks for at Krzanich pledged the Intel workforce would
least one year can borrow the equivalent reach full representation of women and
of one month’s wages, to be paid off minorities by 2020. President Renée James
over a 12-month period. The scheme was (Intel’s highest-ranking female employee)
developed with UK housing charity Shelter. was appointed head of the ‘Diversity in
Technology’ initiative in February 2015.
UBITECH
BENEFICIAL
INTELLIGENCE
In 2016 consumers will
embrace digital services
that make truly smart
decisions for them.
73

hile the onslaught of technological change –


W and commentary on it – continues, we’ll keep
shouting this mantra from the rooftops: stop viewing
the world through the lens of technology, and start
viewing technology through the lens of basic human
needs and wants.

In 2016, consumers will exist amid seemingly


endless hype over the latest tech advances. Artificial
intelligence! Virtual reality! Genetic medicines! Most
will be too busy to separate the signals from the noise.

But from Seattle to Shenzhen, one key consequence


will arise. That is, intensifying customer expectations
that brands will put much-hyped tech trends to use to
serve deep human needs.

One place to start? Transform 2016’s artificial


intelligence into BENEFICIAL INTELLIGENCE.

READ MORE IN THE INNOVATIONS DATABASE: UBITECH


74

UBITECH
T HE E VOLU TION OF

BENEFICIAL
INTELLIGENCE
A tsunami of digital alerts and 2014
tech-fueled services that pre-empt PR EEMP T F U L
needs lie behind 2016’s demand for
Anticipatory brands
BENEFICIAL INTELLIGENCE. began to meet
Nivea’s print advert for
consumers’ needs sunscreen in Brazil includes
before they’d been a solar-powered phone
expressed. charger, so beach readers
can charge their phones.

YOUR 09:00
TRAIN WILL BE
DELAYED

2010 2016
A LERT ING BENEFICI A L
Consumers embraced IN T EL LIGEN CE
information and
Lufthansa’s MySkyStatus updates Consumers adopt Stockholmståg analyzes
alerts from a range friends and family on passengers’ big data to anticipate
intelligent services that
of sources, both travel progress by automatically train delays hours
make their lives easier,
physical and digital. sending updates to their Twitter before they occur and
faster and more fun.
and Facebook accounts. notify passengers.
75

UBITECH
SIGNS O F T HE T IME S

48%
61% OF CONSUMERS IN THE US
ARE RECEPTIVE TO GETTING
REMINDERS ONLINE – FROM
MASS RETAILERS, DRUG
STORES AND GROCERY
OF RETAIL EXECUTIVES DO STORES – TO ORDER ITEMS
NOT BELIEVE THEIR COMPANY THAT THEY MIGHT HAVE RUN
IS EQUIPPED TO DELIVER OUT OF AND NEED TO BE
THE LEVEL OF INDIVIDUAL REFILLED.
EXPERIENCES CONSUMERS
DEMAND. 95% SAY THEY ACCENTURE, MARCH 2015
WILL INVEST IN COGNITIVE
COMPUTING IN THE NEXT
FIVE YEARS.

IBM, OCTOBER 2015


76

UBITECH

BENEFICIAL
INTELLIGENCE
AI IS ABOUT TO DESTROY THE WORLD MAKE LIFE AMAZING!
S TOCK HO L MS TÅG
System anticipates train delays hours before they occur
The lives of many consumers are already touched by intelligent,
automated infrastructure. But in 2016, rising numbers will expect that In September 2015, Swedish train operator Stockholmståg
brands use machine learning and artificial intelligence to put truly smart announced it had developed an algorithm that uses big data
to anticipate train delays two hours in advance. The Commuter
products and services into their pockets, homes, inboxes, and more. Prognosis, developed by Swedish mathematician Wilhelm
Landerholm, allows traffic control to intervene and prevent
the ripple effects caused by forecast delays, while an app

WHY NOW? WHAT NEXT? warns passengers of changes in departure times.

RACE OF GIANTS NEW TECH, OLD PROBLEMS


Google, IBM, Facebook, Baidu, Tech changes, but your customers face
Microsoft, Amazon and Apple are all the same ol’ issues. Can you help them
furiously working on AI. That means save money and time, have fun, have sex,
new developments, and heightened find love or find food with smart services?
expectations.
HUMAN SAFEGUARDS
HEAD IN THE CLOUDS When it was discovered that The
Small developers can now leverage big Princeton Review charged more for
AI resources. The IBM Watson Developer online tutoring in neighborhoods with
Cloud lets anyone include cognitive a high proportion of Asian residents, T OU CHP OIN T
computing features in their apps; it’s used the discrimination was blamed on an
‘World’s angriest robot’ simulates irate customers
by more than 77,000 developers globally. automated pricing scheme. Keep a
human eye on your initiatives.
BEYOND OUR MEANS New Zealand-based software company Touchpoint
Consumers: so impatient, demanding IT’S ABOUT EXPECTATIONS announced in May 2015 that it was building Radiant, an
and greedy (we love them really ;). But You don’t need true AI to deliver artificial intelligence that will learn about the customer service
situations that anger consumers. Radiant will be exposed
human minds alone will struggle to satisfy BENEFICIAL INTELLIGENCE. It’s about
to millions of real, anonymous customer interactions with
their expectations. Maybe AI is the only serving the expectation of smart digital
banks, insurers and telecomm companies to spot patterns.
hope you’ve got! services. See how Paribus does it.
Once set live it will be able to simulate angry customer
interactions, to help brands devise new ways to avoid them.
77

UBITECH BENEFICIAL INTELLIGENCE

PA RIBUS
Service scans email receipts and
automatically files price adjustment claims

Raising USD 2.1 million in seed funding in C OGNI TOYS


October 2015, Paribus is an email plugin that
Educational smart toys
automatically emails price match guarantee
claims to a range of retailers. The plugin scans
learn and grow with kids
email purchase receipts from brands including
Amazon, Walmart and Best Buy, and will auto- Raising more than USD 275,000 on Kickstarter in March
email the retailer when it detects a price change 2015, CogniToys are smart toys which engage and
that is vulnerable to a claim. Paribus takes a grow with children. Using AI (via IBM’s supercomputer
25% commission on savings and is on track to Watson), the USD 99 cuddly toys listen, speak and
protect USD 100 million of purchases per year. simultaneously evolve. Kids can press the toy’s belly to
ask questions and receive age-appropriate responses,
listen to stories or tell jokes, gradually adding to its
personality over time. Children also learn through play
via custom questions on spelling, vocabulary and math.

A IR BNB
R E T HINK Machine learning helps hosts set
Smart app tackles teen cyberbullying the ideal price for their property

US-based teen entrepreneur Trisha Prabhu was In June 2015, Airbnb announced Price
inspired by the suicide of a 12-year-old bullying Tips, a feature that uses machine learning
victim to create a software-based deterrent to to make pricing recommendations for
cyberbullying. Launched in September 2015, the hosts. The system takes a range of
ReThink app uses context-sensitive filtering to detect factors into account, including the size
when a user is about to post something offensive of a property, time of year, and proximity
or intimidating on social media. It then prompts the to local attractions. When hosts set a
user to reconsider. Research shows willingness of an price within 5% of the suggested figure,
average adolescent to post an offensive message they are nearly four times more likely
drops from 71% to 4% when they use ReThink. to secure a booking. Airbnb made
Aerosolve – the machine learning library
behind Price Tips – public on GitHub.
INFOLUST

INFORMAL INFO
In 2016, effective
information is informal
information.
79

hen it comes to information delivery, we’ve


W seen seemingly endless evolution around
relevance and timeliness. From time of day to past
purchases, current location and more, targeting
information effectively depends on context – and this
will remain vital for your INFOLUST innovations in 2016
(see CONTEXTUAL OMNIPRESENCE on page 52).

But what happens when consumers become swamped


by more well-targeted and relevant information than
they can handle? In 2016, they’ll filter ever-more
ruthlessly for information that is easy to understand,
respond to and share. Information that speaks their
language.

When humans interact, simplicity trumps jargon,


shorthand beats verbosity, and nuance comes naturally.
Across the next 12 months, smart brands will take that
to heart.

READ MORE IN THE INNOVATIONS DATABASE: INFOLUST


80

INFOLUST

T HE E VOLU TION OF My life’s balance

INFORMAL INFO WORK PLAY

2016’s INFORMAL INFO has evolved


out of a growing messaging app 2012
culture, more intuitive digital V ISUA LOV E Love to play at work!
technologies, and the demand
Surrounded by
that brands make life better. information, consumers
Free online tool Vizify
embraced visualization allows consumers to create
tools that processed interactive infographics
data in glanceable (and about themselves.
even beautiful) ways.

What can
I help you
with?

2010 2014
IN T UI T I V E GE T T HE
IN T ER FACES M ES S AGE
New technologies Siri is a voice-activated Asia’s messaging apps KakaoTalk announces
allowed consumers information app for iPhone (including WeChat, partnerships to
to have more natural (later acquired by Apple). Line and KakaoTalk) integrate hit games
interactions with devices went global. Candy Crush Saga
and their environment. and Bubble Blaze.
81

INFOLUST

2015
N O IN T ER FACE

2016
A host of off-screen
delivery channels
Mercedes-Benz’s
allowed information haptic accelerator
with more context pedal encourages more
and feeling. economical driving.
INFOR M A L INFO
Consumers embrace information
that’s delivered informally: easier
to understand, use and share.

6/10 49%
six of the world’s top 10 most- increase in time spent with Navigation app Mapkin provides
used apps are messaging apps. digital media in the US between directions with nuance by

2013 and 2015. using tips from real drivers.


Quettra Analytics, Q1 2015
comScore, August 2015
82

INFOLUST

INFORMAL INFO
P OCK E T T OU R
FIND A COMMON LANGUAGE.
Travel agency’s service operates
entirely within messaging app

Alerts, notifications, messages: a relentless flow of information has turned


In July 2015, Ukraine-based travel
the smartphone and other digital devices into the medium via which agency Khoroshiy Otdyh announced the
consumers see the world. In 2016, the information that cuts through all launch of Pockettour, the world’s first
Viber-based travel agency. The entire
that noise will speak the language of customers: fast and informal, but travel booking process of discovery,
also more effective and easier to absorb and act on. reservation and payment is handled
within Viber’s messaging app. Customers
have the option of choosing which of the
agency’s managers they communicate
WHY NOW? WHAT NEXT? with, and can share pictures of necessary
documents or invite friends into the
ENLIGHTENED BRANDS INFORMAL FORMATS chat to organize a group holiday.
Yes, we ridiculed ‘brand banter’ on social Check snobbery about INFORMAL INFO
media in last year’s Trend Report. But at the door. Vertical videos taken by
INFORMAL INFO isn’t just about laughs; smartphone users were long deemed
rather, it should meaningfully enhance amateurish. Snapchat, with 4 billion
your service. And ‘informal’ doesn’t have daily video views, found that its vertical
to mean ‘like a teenager’. Got it, fam? video ads have 9x the completion rate of
H A LO DI A N A
horizontal ones (Snapchat, March 2015).
MESSAGING ECONOMY SMS concierge service sees
Messaging apps such as WhatsApp and EMOTION MATTERS real people answer requests
Line continue to gain users. Yet with 71% How can you play with the tone of your
of online adults in the US not using these information to render it more effective? Launched in Indonesia in September
apps (Pew, August 2015), there is plenty of Waze used children’s voices to create 2015, HaloDiana is an SMS-based
room for growth. Cue more widespread more compelling road safety messages. concierge service that allows users
expectation of informal digital info. to request information, services and
PERSONIFY
assistance with daily tasks. Human
NATURAL INTELLIGENCE Can your service be enhanced by a freelance workers are the ‘voice’ of
Developments in natural language persona? The SMS-based retailer Stefan’s the service, replying to user requests
processing and other pillars of AI (see Head texts participants as ‘Stefan’: a and ensuring that interactions are
BENEFICIAL INTELLIGENCE on page 76) slangy friend with stylish hook-ups. conversational. The launch forms part of
now allow brands to communicate with an a new wave of similar virtual concierge
AI-fueled conversational tone. services launched in 2015, including
US-based Magic and Facebook M.
83

INFOLUST INFORMAL INFO

M A PK IN S T EFA N’S HE A D
Crowdsourced navigation app Exclusive apparel available to order
shares tips from local drivers from Stefan via SMS

Mapkin is a free, people-powered Launched in the US in March 2015,


navigation app from the US that launched Stefan’s Head is an SMS-based
in September 2015. In order to provide retailer. Potential users can only buy
directions that are easier to understand from Stefan’s Head if they first text
and more accurate than those offered by a link to a personal social media
traditional navigation services, the app handle and are approved as ‘on the
reads out tips submitted by local drivers. same page’ (yes, that’s a STATUS
For example, rather than saying ‘turn TEST, see page 16). After that,
left in 200 yards’, it might advise ‘make Stefan sends recommendations and
a left after the 7-Eleven’. Mapkin verifies responds to questions in a friendly,
all tips from community members. informal and slang-filled tone. We
know because we’ve hassled him ;)

WA ZE M A L AYSI A A LO F T M A N H AT TA N
Navigation delivered in voices of DOW N T OW N HOT EL
children to reduce reckless driving Guests can communicate
with hotel via emoji
In response to statistics showing road
traffic injuries as the eighth leading In October 2015, the Aloft Manhattan
cause of death globally, Waze and Downtown Hotel launched TiGi (Text
telecommunications company Maxis It. Get It.), a service allowing guests to
created a road safety reminder. The request hotel services using emoji. For
voices of children were introduced as example, by texting the water droplet,
a pack option on the navigation app, pill and banana emoji, guests can order
after a study determined that nine out the Hangover package, which consists
of 10 parents drive more safely when of two bottles of water, some Advil
their children are in the car. Initially and two bananas. Aloft say they are
launched in Malaysia, the option was considering rolling out the service across
available globally from June 2015. other hotels in the US and Europe.
FUZZYNOMICS

NEW LABOR
In 2016, consumers
embrace products and
services that reflect the
disrupted world of work.
85

n 2016, the on-going disruption of work/leisure


I goes mainstream.

Thanks to social shifts and technological change,


the walls that separate consumers from creators,
buyers from producers, and the marketed-to from
the marketers have been bulldozed, rebuilt and
demolished again.

First came the spread of startup culture, as the


ambition and informality of hubs from Silicon Valley
to São Paulo changed expectations around work for
entrepreneurs (and wantrepreneurs) worldwide.

Next? New legions of ordinary consumers – from


freelancers to gig economy operators to (gasp!) office
workers adopt the same expectations: of flexibility,
creativity, lifelong learning and self-dependence. And
they’ll look to brands to help make that a reality.

Are you ready?

READ MORE IN THE INNOVATIONS DATABASE: FUZZYNOMICS


86

FUZZYNOMICS

T HE E VOLU TION OF

NEW LABOR
Digital platforms, new funding
models and democratized 2011
production have all helped bring OW NER-LES S
about the era of NEW LABOR.
Consumers embraced
the sharing economy, as
The city of Paris launches
brands let them choose Autolib’, an electric
access over ownership. car-sharing scheme, to
complement Vélib’, its
successful bike share.

121 Rover Ave.

2009 2012
$1.15/hr

BOOK NOW

MY STARTUP

SEL L SU M ERS PR ESU MERS


Driven by the global New funding and
recession, and purchase models
Toronto-based Equity crowdfunding platform
enabled by new online ParkingSpots lets off-street
pushed consumers to Fundable launches after the
platforms, consumers parking space owners support products and 2012 US JOBS Act allowed
started selling (not list available spots at a services pre-launch. non-accredited investors
just consuming). price of their choosing. to buy equity in startups.
87

FUZZYNOMICS

2013
EN T R EPR ENEU RI A
Brands fostered the 2016
entrepreneurial ecosystem
Turkish Airlines’ Invest
with support and services On Board initiative allows
for ambitious startups. business class passengers
NE W L A B O R
to watch video pitches from
A NEW LABOR army of
startups during flights.
freelancers, gigpreneurs and
independent creatives look
to new tools and resources to
support and empower them.

LOUISE

We found just
the plan for you!

· Tax Guidance
· Insurance Packages
· Care
· Dental Treatments
· Retinal Detachment

2015 Stride provides health insurance


support to freelance workers,
PEER A R MIES allowing them to find and
purchase insurance plans.
Brands used armies of
peers to supercharge
Audi Swedish Snow
their offerings and Rescuers connects stranded
provide new services. drivers with volunteer Audi
4x4 owners, who can be
summoned via app to help.
88

FUZZYNOMICS

NEW LABOR
U P WOR K ,
2016’S DISRUPTED WORKFORCE PUTS FORWARD ITS DEMANDS.
WA SHIN G T O N P O S T,
V I A DEO F R EEL A N CE
The proliferation of on-demand services, the post-demographic appeal New platforms connect
freelancers to opportunities
of the wantrepreneur lifestyle, and the automation of jobs are
transforming expectations around work. The opportunity? Empower new In May 2015, the world’s largest freelance talent
lifestyles and serve the armies of freelancers, gigpreneurs and marketplace re-launched as UpWork (formerly
Elance-oDesk) offering new tools to freelancers
independent creatives that will make up 2016’s NEW LABOR workforce.
including a free ‘Slack-like’ online collaboration
tool. As of May 2015, freelancers were earning
USD 1 billion annually through the site. June
WHY NOW? WHAT NEXT? 2015 saw the launch of the Washington Post
Freelance Network, a social network that
ON-DEMAND & SUPPLY CONNECT connects the newspaper’s editors to freelancers.
And September 2015 saw the launch of France-
On-demand services rely on networks of The opportunities to help freelancers and
based Viadeo Freelance, which aims to connect
flexible suppliers (see 2015’s PEER ARMIES gigpreneurs connect to work providers –
freelancers and project coordinators.
trend). The number of self-employed US and each other – are boundless. See the
citizens grew by 1 million to 14.5 million in new wave of platforms that do just that,
the year to May 2015 (US Bureau of Labor including UpWork, and the CoWorking
Statistics, Aug 2015). In 2016 consumer Unconference.
demand will only incentivize further
growth of the gig economy. EMPOWER
Freelancers and informal workers need
ENTREPRENEURIA JO HN NIE WA L K ER
support, tools and resources – including
The global startup culture was primarily those that mainstream employees take Creative mentoring program
about ambitious digital innovators. Now, for granted. Stride provides healthcare in India teaches new skills
expectations created by this culture insurance support to self-employed
– flexibility, self-dependence, blurred workers. In Q2 2015, Johnnie Walker ran
work/life boundaries – have spread far The Step Up: a free online fashion,
beyond that silo. THIRD SPACES
food and music mentoring program
How can your brand serve the third space in India. Nine young people took part in
NEW NORMAL needs of the NEW LABOR workforce? challenges created by the whisky brand, mentored by
A diverse POST-DEMOGRAPHIC Waffle House partnered with P2P chef Nikhil Chib, designer Nikhil Thampi, and musician
world demands modes of work that platform Roadie to turn restaurants into duo MIDIval Punditz. Their progress was showcased in
accommodate and reflect changing convenient spaces for meet-ups. a five-part webisode, with one winner in each category
lifestyles and mindsets. receiving a six-month internship in their chosen field.
89

FUZZYNOMICS NEW LABOR

S T R IDE
Platform provides healthcare
support to freelance workers

ROA DIE & WA F F LE HOUSE


Raising USD 13 million in Series A funding
P2P senders can use restaurants in September 2015, US-based app Stride
as exchange locations provides health insurance support to
freelance workers. The app evaluates
individual healthcare needs and suggests
Peer-to-peer delivery service Roadie teamed
costed health plans in a process that
up with US restaurant chain Waffle House
takes 15 minutes, against one hour for
in February 2015 to provide a safe meeting
users of Healthcare.gov. Stride plans to
place for its drivers and senders, and to
expand to include support for tax affairs,
offer perks to drivers. Roadie drivers receive
expenses and multiple income streams.
a free waffle when they sign up to the
app, and free beverages when they meet
up with a package sender at one of 1,750
Waffle House restaurants across the US.

A SI A C OWO R K IN G
U N C O N F ER EN CE W E WOR K
Coworking conference explores Coworking giant develops coliving residences
the future of work in Asia

US-based coworking space provider WeWork has


In January 2015, the Hubud coworking space seen rapid international growth and was valued at
in Bali hosted the first annual Asia Coworking USD 10 billion in a June 2015 funding round. Now, the
Unconference. The three-day event brought coworking company has begun development of WeLive coliving
proponents and practitioners together to discuss the locations, aimed at freelancers and startups. The live/
future of work in Asia, attracting 135 participants from over work spaces contain micro-apartments, shared living
30 countries. The next event is scheduled to take place in the and coworking areas, and the first will open in New York
same location in February 2016. and Washington D.C. in Q4 2015. WeLive predict they
will have 34,000 members living at 69 locations by 2018.
PRICING
PANDEMONIUM

PERSPECTIVE SHIFTS
In 2016, radically shift
consumer views on
pricing by offering a new
perspective.
91

ere’s a (pricing) paradox to consider in 2016:


H while the consumer arena becomes ever more
transparent, perceptions of value become ever harder
to fathom.

Tinder wants to charge for delivering life-changing


value? Okay, but then it charges over-28s four times
more than younger users. Consumers hate paying for
content these days (as Jay-Z discovered with Tidal),
right? But musician Amanda Palmer is now raising over
USD 36,000 a month direct from fans on artist funding
site Patreon. And the macro picture? The Chinese
economy slows; meanwhile, there is a simultaneous
slight increase in Chinese consumer confidence.*

In 2016, the consumer arena is a hall of mirrors that


renders a dizzying and fragmented view of value. But in
a hall of mirrors, perceptions can be shifted.

* Nielsen, August 2015

READ MORE IN THE INNOVATIONS DATABASE: PRICING PANDEMONIUM


92
PRICING
PANDEMONIUM
T HE E VOLU TION OF

PERSPECTIVE
SHIFTS
New expectations around deal 2014
hunting and a crowdfunding PER K F U NDIN G
mindset have shaped 2016’s
Crowdfunders responded
appetite for PERSPECTIVE SHIFTS. to exclusive and unique
George R.R. Martin launches a
rewards offered in return fundraiser for a wolf sanctuary.
for high-value pledges. A USD 20,000 donation
secures the donor a role in
a Game of Thrones novel.

£ 50.00 Barcelona

£ 4 5 .3 1
#SnackHolidays
TAKE PART NOW Lisbonne

2010 2016 LIS


BCN
DE A L ER-CHIC PERSPEC T I V E
New online tools, SHIF T S
group buying platforms
Clothing retailer Uniqlo’s Accustomed to Low-cost airline
and product filters Lucky Counter allows visitors Transavia turns
the disruption of
made deal-hunting to reduce the price of selected snacks and candy
value, consumers
a source of status. items by tweeting about them. into airline tickets.
embrace the playful
reframing of price.
93

PRICING PANDEMONIUM

“PRICE IS WHAT YOU


PAY, VALUE IS WHAT
YOU GET.”
WA R R EN BU F F E T T
94

PRICING PANDEMONIUM

PERSPECTIVE USD 2 billion


SHIFTS of pledges have been made on crowdfunding
SAME PRICE. NEW PERSPECTIVE. site Kickstarter, by around 9.5 million people. It
took nearly five years to hit USD 1 billion, and
19 months to get to USD 2 billion.

The continued evolution of new funding models. An unending stream of Kickstarter, November 2015

(often digital) innovation that disrupts old business models. Just two
reasons why in 2016 consumer attitudes to price will be more malleable
than ever. One opportunity? Playfully reframe your offering as something
else entirely in order to give consumers a radically new perspective on
– and appreciation of – the value you deliver.

WHY NOW? WHAT NEXT?

PERSPECTIVE IS ALL BE FEARLESS


In 2015, digital continued to show When it comes to reframing your offering,
consumers that when it comes to pricing, be bold. Transavia turned candy and
perspective is all. Pay for music on new chips (casual purchase, grab quickly)
platform Tidal – no way! Direct fund a into airline tickets (considered purchase, GR EEK BA ILOU T F U ND
musician on crowdfunding site Patreon – carefully researched). Anything goes! Londoner crowdfunds to save the Greek
sure! Now, consumers are open to a more
economy
playful perspective on pricing. CAUSES
Think beyond consumer spending to
PERKFUNDING consumer giving. Apply this trend and June 2015 saw the launch of an attention-grabbing
Crowdfunding, PRETAIL platforms, new you can reframe a charity drive or call for crowdfunding campaign to aid the Greek economy. A
forms of charity fundraising – a welter of donations and acts of generosity. See 29-year-old man from the UK, Thom Feeney, started the
innovation around pricing and funding how the Dutch Aids Foundation did it. Greek Bailout Fund on crowdfunding site Indiegogo.
means consumers now expect brands to While conceding that it was unlikely he’d hit his EUR
deliver more of the same. ENGAGEMENT 1.6 billion target, Feeney said the project was meant
How can you reframe to draw in to give Europe’s 500 million citizens a new insight into
PLAY customers who wouldn’t typically their combined financial power to help Greece. More
New perspectives are eye-catching, engage? Stockpile sell shares repackaged than 100,000 backers pledged almost EUR 2 million;
playful and fun. It’s that simple! as gift cards. their money was refunded when the campaign closed.
95

PRICING PANDEMONIUM PERSPECTIVE SHIFTS

DU T CH A ID S FOU N DAT IO N
Donate by buying ‘pills for first world problems’

In July 2015, the Dutch Aids Foundation ran a campaign


that encouraged consumers to re-examine their own
good fortune. The charity opened a pop-up store
S T OCK PIL E in Amsterdam selling ‘medication’ for first world
Gift cards are shares in publicly traded companies problems, including Snore Like A Fairy, Ability To See
Unicorns, and Flowery Farts. The First World Problem
Pills are drug-free peppermints, and cost EUR 4.95. All
US-based startup Stockpile produces gift cards that reframe proceeds from sales were donated to the Aids Fonds
thinking around buying shares. The startup produces gift charity to provide HIV medication for those in need.
cards available to purchase at between USD 1 and 1,000,
which can be redeemed for shares or a fraction of a share in
NYSE-traded companies. The giftcards are available to buy in
leading retail chains including Lowe’s and Kmart. In October
2015, Stockpile received a USD 15 million funding round.

S C OT CH SU PER G LU E 3 M
Glue shop sells broken items
along with free packet of glue

In May 2015, Scotch Super Glue 3M opened


a pop-up that reframed the potential value
of a packet of glue. Located in a mall in
Guatemala, ReStore was a ‘discount store’
that sold broken vases, plates and other
ornaments. The brand also partnered with
T R A NS AV I A other interior stores to
sell their products, and
Budget airline turns chip and candy packets into airline tickets
invited shoppers to
break an item before
In April 2015, French budget airline Transavia reframed the value buying. Each item was
of their low-cost flights via a campaign that compared their ticket sold at the cost of
prices to casual spending decisions made in a grocery store. The one super glue pack,
airline created branded bags of chips, candy and cereal bars that which was included
doubled as tickets for a Transavia flight. The products were sold at free with purchase.
participating Carrefour City shops, and in vending machines at two
metro stations, and cost between EUR 30 and EUR 40. A code printed
on the packet secured a flight to Barcelona, Lisbon or Dublin.
POST-
DEMOGRAPHIC

POST-DEMOGRAPHIC
IMPERATIVES
Target a segment of
one. Serve demanding
CITYSUMERS. Raise up
the disempowered.
97

wo forecasts for 2016. Consumers continue to


T chart ever more diverse and unexpected paths
towards the realization of their true selves. And a host
of brands, market research agencies and consultancies
continue to rely on empty demographic clichés. Have
you heard – millennials love authenticity!

The reality? As we flagged back in 2014, in this POST-


DEMOGRAPHIC world many are constructing their own
identities more freely than ever. The old demographic
segments don’t predict behavior the way they used to.

Yet the death of traditional demographics doesn’t


mean the end of the demographic strategy. Rather, it
means a transformational shift in mindset around who
your customers (and potential customers) really are,
and how to serve them.

There are a thousand ways to jump in. But start by


building these three POST-DEMOGRAPHIC IMPERATIVES
into your 2016 strategy.

READ MORE IN THE INNOVATIONS DATABASE: POST-DEMOGRAPHIC


98

SIGNS O F T HE T IME S

TIME TO
CHANGE YOUR
DEMOGRAPHIC
THINKING?

79% OF BOOMERS DESCRIBE THEMSELVES AS PART OF THE ‘BOOMER GENERATION’.

58% OF GEN X-ERS DESCRIBE THEMSELVES AS ‘GEN X’.

40% OF MILLENNIALS DESCRIBE THEMSELVES AS PART OF THE ‘MILLENNIAL GENERATION’.

PEW RESEARCH CENTER, SEPTEMBER 2015


99

49%
OF BRITISH 18-24 YEAR
OLDS CHOOSE SOMETHING

67%
OTHER THAN 100%
HETEROSEXUAL WHEN ASKED
TO PLOT THEMSELVES ON A
‘SEXUALITY SCALE’.

39%
YOUGOV, AUGUST 2015

OF MEN HAVE CHANGED JOBS


OR SAID THEY WOULD BE
WILLING TO DO SO TO BETTER
BALANCE FAMILY LIFE,
VERSUS 57% OF WOMEN.
OF CHINESE CITIZENS IN TIER
II CITIES USE SOCIAL MEDIA, EY AND HARRIS INTERACTIVE,
COMPARED TO 28% IN TIER I APRIL 2015
CITIES.

KANTAR WORLDPANEL,
MARCH 2015
100

POST-DEMOGRAPHIC

POST-DEMOGRAPHIC
IMPERATIVES TA S T E-L ED TA RG E T IN G

THREE TACTICS TO PROSPER IN A POST-DEMOGRAPHIC WORLD.

SP OT IF Y
The rapid embrace of new technologies, unceasing global urbanization Unique playlists delivered
to users each week
and the expectation that everyone should be empowered to live the way
they want. These three juggernauts driving the evolution of the consumer
In August 2015, Spotify introduced
arena – and the emergence of a POST-DEMOGRAPHIC reality – will only Discover Weekly, a weekly mixtape
accelerate in 2016. It’s imperative that you respond! that is unique to each user. The
playlists take a listener’s previous
song selections and uses them to
find tracks that have been played
WHY NOW? WHAT NEXT? by others with overlapping taste.
In October, Spotify revealed that
NEW TECHNOLOGIES TASTE-LED TARGETING 1 billion songs had been streamed
The accelerating development of new Use technology to tailor your offering from the Discover Weekly service,
and that 71% of listeners saved at
technologies and ever-richer consumer around tastes and preferences rather
least one track to their own playlists.
data gives brands the power to treat than demographics. The long-promised
customers as individuals. For just one ‘segment of one’ can be a reality!
example see TRUE SELF on page 28.
SERVE THE CITYSUMERS AXE
UNCEASING UBANIZATION Yes, urbanites are diverse and comprised Online film changes to
Cities are more diverse and socially of many tribes. But they also share match viewer’s interests
permissive. Higher incomes and mature common passions, pain points, high
experience economies make them expectations and a hunger for the new.
In August 2015, deodorant brand Axe
hotbeds of POST-DEMOGRAPHIC behavior. Serve them!
debuted Romeo Reboot in Brazil,
a short film that adapts to each
LEFT BEHIND POST-DEMOGRAPHIC EMPOWERMENT
online viewer’s interests, including
In all markets there remain groups who Empower marginalized individuals – from music taste, brands engaged with
face marginalization and prejudice, a young girl who misses classes during and past purchases. There are
and who remain unable to choose their her menstrual cycle, to a rehabilitated ex- 100,000 variations on the ad: some
lifestyles. But these groups yearn for convict unable to secure employment – versions feature an office setting,
POST-DEMOGRAPHIC freedom just as to overcome the obstacles between them others a crime story, and others
much as everyone else. and their desired lifestyles. a sci-fi setting with a Cyclops.
101

POST-DEMOGRAPHIC POST-DEMOGRAPHIC IMPERATIVES

P O S T-DEM O GR A PHIC CI T YSU M ERS P O S T-DEM O GR A PHIC EM P OW ER M EN T

E AT SA K PN
Super-healthy restaurant Virtual access to gay pride parade
provides 100% automated service
In August 2015, Dutch telecom provider
Opened in San Francisco in August KPN created a special canal boat for the
2015, Eatsa is a restaurant aimed Amsterdam Gay Pride Canal Parade.
at wellness-obsessed, hurried The boat carried 360 -degree cameras
urbanites. Customers choose from that livestreamed the event to users of
a variety of quinoa bowls via iPads, a website called Pridestream. KPN said
selecting their choice of vegetables, their aim was to give gay people who
sauces and cheese, with dishes live in repressive countries a chance to
priced from USD 6.95. After ordering, experience the Pride event and feel ‘the
customers pay via the iPad, then freedom of being your true self.’ The site
wait until their name appears on recorded 67,984 visitors from 128 countries.
the LCD -screen of the cubby box
which contains their prepared dish.

ONEPLUS BE GIR L
Smartphone delivered in one Products to help girls living in
hour in Indian city poverty handle menstruation

In October 2015, Chinese smartphone Be Girl was founded to help girls around
manufacturer OnePlus targeted the world who do not have access to
impatient consumers in the Indian sanitary products. UNESCO estimates
city of Bengaluru by promising to than one in 10 girls in Africa misses school
deliver new smartphones within 60 during her period. Be Girl created two
minutes. Emulating tactics often used reusable solutions, the Period Panty
by pizza delivery chains, OnePlus said (USD 12) and the FlexiPad (USD 6). As
that if customers did not receive their of October 2015, when consumers buy
OnePlus One smartphone within an one of these products Be Girl gives one
hour, the phone would be free. to a girl in the developing world.
REMAPPED

ORGANIZED MASS
New futures for the
informal economy.
103

lower growth, falling sentiment: the hyperbole


S around the REMAPPING of the global economy
took a hit in 2015.

Amid the endless commentary, one thought. Yes, it’s


easy to get caught up in today’s passing weather; but the
long-term outlook hasn’t changed. Fast forward to 2030,
and the economies of Mexico and Indonesia are bigger
than those of the UK and France (in purchasing power
parity terms).* Emerging markets are still the future.

Now, the next chapter unfolds. Mature emerging


markets (think China, Brazil) weather storms and shift
towards true consumer societies. Newer frontier
markets (think Nigeria, Vietnam) make their presence
felt. Along the way, digital tech reshapes entire
informal, if not chaotic, modes of consumerism.

Easy answers? Nope. But plenty of opportunity.

* PWC, The World in 2050, February 2015

READ MORE IN THE INNOVATIONS DATABASE: REMAPPED


104

REMAPPED
T HE E VOLU TION OF

ORGANIZED
MASS
Access to technologies, and new 2013
expectations among the rising CR A M MIN G
global middle class, are fueling the
Emerging market
ORGANIZED MASS. consumers sought to
Messaging app WeChat
cram more information, adds functionality that
productivity and fun allows users to shop
into every moment. online, book taxis, and play
games inside the app.

M–PESA
X-BU886
Confirmed.
Ksh400 sent to

Options

2007 2016
B OP ORG A NIZED
As new technologies MASS
spread, those at the
Kenyan mobile provider Digital technologies Indian startup
Bottom of the Pyramid Safaricom launches Jugnoo lets users
and heightened
expected products and M-PESA, a mobile phone hail an auto rickshaw
expectations mean
services that served payment solution for those via smartphone.
new ways to navigate
their lifestyles. without a bank account. the informal economy.
105

REMAPPED
SIGNS O F T HE T IME S

$10 trillion
OF ECONOMIC ACTIVITY IN THE INFORMAL ECONOMY EACH YEAR WORLDWIDE.

1.8 billion
PEOPLE WORK IN THE INFORMAL ECONOMY WORLDWIDE.

* Figures estimated by Friedrich Schneider, Professor of


Economics at Johannes Kepler University, and leading
expert on the informal economy.
106

REMAPPED

ORGANIZED 970 million


MASS smartphones will be bought in APAC
OJEK CULTURE, MEET SMARTPHONE CULTURE. in 2018, up from 470 million in 2013.
The Economist, August 2015

Frequent use of informal, decentralized, cash-based services (that are


also fast and relevant) are a given for hundreds of millions across
emerging markets. In 2016, those services are revolutionized by more
widespread access to digital technologies, and new expectations.

WHY NOW? WHAT NEXT?

ON-DEMAND CONNECT
Smartphone culture and messaging apps How can you offer more efficient access
have created an on-demand mindset to freelance service providers? Brazilian
that consumers are bringing to bear on beauty brand Natura let consumers send
informal services. What do you mean I an SMS to locate their nearest beautician.
have to hail my ojek by hand? GO-JEK
EMPOWER
On-demand ojek app adds beauty,
PERFECT PAYMENTS Bring convenience to customers and
cleaning and moving services
New smartphone-fueled payment new profits to local providers. Nigerian
methods are encouraging traditionally ecommerce player Kaymu opened a
informal services such as taxis and food physical space to bring buyers and sellers Ojek are unlicensed motorcycle taxis that are a
popular mode of public transport in Indonesia.
stalls to become part of the digital together.
October 2015 saw smartphone-based on-demand
ecosystem (and by extension, the
SYNC ojek service Go-Jek add new in-app extras. Go-
mainstream economy).
Glam offers on-demand access to beauticians.
Once an informal service has been
SAFETY NET Go-Box offers house and office moving services.
organized, what add-ons can you provide?
Go-Clean offers house and office cleaning. Go-
Consumers are embracing the added On-demand ojek startup Go-Jek
Jek transformed the informal marketplace for
quality assurance and trust that comes via launched beauty, massage and moving
ojek when it launched in January 2015. The service
service aggregation platforms and other services inside their app.
operates in Jakarta with over 2,500 drivers.
new access tools.
107

REMAPPED ORGANIZED MASS

S T R EE T FOOD
N AT U R A
BA N G KOK
SMS to locate beauty consultant
App to locate Bangkok street food vendors

March 2015 saw Natura unveil a campaign allowing


Bangkok is known for its rich variety of street food. In
consumers to find their nearest beauty consultant.
September 2015, the Thai Ministry of Foreign affairs
By sending an SMS to the Brazilian beauty
launched Street Food Bangkok, a free app that provides
brand, customers receive details of their nearest
menu, opening times and location information on over 120
consultant, along with contact telephone numbers.
informal food stalls across the city. A spokesperson from
Customers are then contacted by their consultant
the Ministry said the app was intended to help both Thais
in under 24 hours, with the option of receiving
and tourists engage with and find street food vendors.
tips and advice on relevant Natura products.
There are plans to expand the app to other cities in 2016.

K AY M U
Lagos location brings local
J U GN OO buyers and sellers together

Indian app lets users hail auto rickshaws


October 2015 saw Nigerian ecommerce
platform Kaymu open the Kaymu Village,
June 2015 saw Indian startup Jugnoo secure
a physical space in Lagos intended
USD 5 million in funding to bring on-demand
to bring small businesses and local
smartphone ordering to auto rickshaws. Using
entrepreneurs together with buyers.
an app customers can hail a rickshaw on-demand, either for
The space will allow customers who
transportation or delivery purposes. The service currently operates
cannot complete e-payments to buy,
in four cities (Chandigarh, Ludhiana, Amritsar and Jaipur), with
and will provide support, resources
plans to expand to Gurgaon next. As of June 2015, Jugnoo had
and marketing to sellers. Nigeria
150,000 users and handled about 3,000 transactions a day.
has around 67 million internet users
among a population of 180 million.
TRENDS
REVISITED
AN UPDATE ON TRENDS FROM THE 2015 TREND REPORT
109

This is an annual report, but trends aren’t born


(and they don’t expire) at the stroke of midnight
on New Year’s Eve.

We’re still seeing many examples of the trends


we covered in last year’s 2015 Trend Report. And,
more importantly, across the next 12 months those
trends will still be rich in opportunity for brands
willing to apply them.

So let’s take an updated look at a handful of those


trends and related innovations. Yet more food for
thought in 2016!
110

TRENDS REVISITED

BR A ND FA N AT IC S M2P
One counter-intuitive status play? Fueled by the liquidity of digital
Public, loud, even theatrical displays social connection, consumers
of devotion to a chosen brand. are adopting innovative new
ways to connect with mentors.
Available to download from September
2015, Sizzl is an app that matches single Hosted in Lagos during July 2015,
bacon lovers. Created by US food brand UberPITCH gave entrepreneurs the
Oscar Mayer, the app shows users chance to connect with investors
others who share their tastes in bacon during a 15-minute cab ride. Rides
– whether they prefer crispy or chewy, were free, and could be ordered
for example. Users rate each other via inside the app using the UberPITCH
a ‘Sizzl Meter’ and are then notified option. Participants were allowed
YOU ARE of any potential matches, allowing seven minutes for their pitch and
BACON LOVERS them to chat and arrange a date. seven minutes to receive feedback
on their idea from investors including
Main One CEO Funke Opeke.

L A S T IN G SPACES INS TA N T EN C OU N T ERS


While pop-ups can (and still do) Consumers now embrace
delight consumers, many expect immediate, instant, in-person
lasting commitments to their local encounters.
area that have a real impact.
The Nescafé Instant Connections
Restored in July 2015, Pigalle campaign was designed to connect
Duperré is a basketball court in busy city commuters in Germany.
the 9th arrondissement in Paris, The June 2015 campaign centered
featuring brightly colored blocks of on special pairs of roadside devices –
noise-absorbing recycled rubber. similar to typical traffic control displays
The restoration of the court came – instructing people to ‘Press Together’.
via a partnership between fashion When two individuals pressed the
brand Pigalle and art platform Ill- buttons at the same time, both were
Studio. The design took inspiration rewarded with a cup of Nescafé coffee.
from a 1930s artwork by Russian
artist Kazimir Malevich.
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TRENDS REVISITED

BIG BR A ND R EDEM P T ION IN T ER NE T OF


BE T T ER T HIN G S
People will shun major
IKEA brands unless they use their Consumers embrace connected
massive resources for social objects that serve people,
and environmental good. society and the planet.

In June 2015, IKEA committed to Launched in Beijing during June 2015,


accelerating the transition towards a The Laser Egg is a smart monitor that
low-carbon economy by allocating EUR measures the air quality in a user’s
1 billion towards renewable energy. home before comparing it with the air
The IKEA Group will invest EUR 600 outside. A mobile app monitors public
million in wind and solar power, whilst areas where the device has already
the IKEA Foundation will invest a been installed, and suggests nearby
further EUR 400 million to support places with better air quality. The Laser
communities in nations vulnerable to Egg costs CNY 409 (around USD 66).
droughts, desertification and floods.

IN T IM AT E INFO PEER A R MIES


New information delivery channels Brands supercharge their
serve rising consumer demand for offerings by utilizing networks
data that is intuitive and immediate. MISSING of connected peers to create
new services and experiences.
Successfully crowdfunded in June
2015, the GloveOne is a sensor- In May 2015, HP partnered with Brazilian
integrated glove allowing people to NGO Mães da Sé to spread the word
‘feel’ sensations when interacting with about missing people. HP’s ePrint
virtual objects. Created by Spain- technology means that home and
based NeuroDigital Technologies, office printers can print emails that are
the GloveOne allows people to sent directly to them. When a printer
‘touch’ any object they can see via a was signed up to The Print for Help
screen or virtual reality headset. The project, it automatically received and
glove’s integrated sensors vibrate printed a missing person poster when
to reproduce touch sensations. someone in the locality went missing.
APPLY
KICKSTART YOUR TREND-DRIVEN INNOVATION IN 2016!
113

o you’ve absorbed the trends and you’re


S feeling inspired – great!

But organizations don’t win because they know about


trends. They win when they apply trends to create
products, services and campaigns that customers love,
time after time. And that means building a trend-driven
culture.

Inside the Premium Service, you have access to a suite


of tools that can help you kickstart and nurture that
culture. From focusing on the right trends, to using
trends to ideate, to encoding a trend culture deep in
your organization, these tools will support you and your
team every step of the way.

What’s more, we’ve taken the liberty of getting you


started when it comes to using our key ideation tool,
the CONSUMER TREND CANVAS.

So turn the page, and get going!


114

APPLY

APPLY TOOLS
TO HELP YOU BUILD A TREND-DRIVEN CULTURE IN 2016.

/S
ER
VI
CE
VI
S
CONSUMER CONSUMER
TREND RADAR TREND CANVAS
T

IO
UC

N
OD
PR

BRAND:

NOW NEXT BEYOND

Prioritize the trends that matter most Unpack and understand any consumer
to your business, and create a one- trend, and then use it to create new
MA
RK

L
DE
ET
IN

page, visual representation of your product, service, campaign or


M
G

C
ES
S
/

RESPONSE: AM
N
PA SI
I GN BU
Light S

Trend-Driven Innovation pipeline. business model ideas.


Intense

Total

Learn how » Learn how »

TREND-
TREND A TREND B
IDEATION TREND OF THE MONTH TREND LINKS DEPARTMENT
EXERCISES BEST PRACTICES
Exercises to boost your team’s BRAINWRITING TREND CUP
Build a culture of Trend-Driven
creative powers – think across Innovation with help from these ideas,
regional and industry boundaries, tips, and best-practice case studies
blend trends, and more. from other organizations.
Learn how » Learn how »
115

APPLY

A HEADSTART ON THE
CONSUMER TREND CANVAS
WE’VE UNPACKED THE TRENDS – READY FOR YOU TO APPLY THEM!

WHAT IS THE CTC?

The CONSUMER TREND CANVAS (CTC) is a simple tool for generating


trend-led innovation ideas. That means ideas for new products, services,
campaigns, business models, or an entire new vision for your business.

The tool divides this process into two stages. First, analyze the trend by
asking four key questions (the left hand side of the CTC). Second, apply
the trend in your business by asking two further key questions (the right
hand side of the CTC).

NOW, OVER TO YOU…!

Alongside this Trend Report, you’ll find a standalone PDF/booklet:


Trends Unpacked! Inside, we’ve unpacked all 16 of the trends featured in
this year’s report using our CTC. This means that when it comes to
answering the four key questions posed by the left hand side of the CTC,
we’ve done the work for you! See an example of a CTC filled in for STATUS
TESTS, right.

So now you really have no excuse ;). Take one or more of these half-filled
CTCs, and use them to kickstart a team meeting or planning session
around trends. You’ll surprise yourself with the ideas that are generated!
116

GET
GOING!
ABOUT TRENDWATCHING

Established in 2002, TrendWatching is the


world’s leading trend firm, scanning the globe
for the most promising consumer trends,
insights and related hands-on business
ideas. Our Premium Service counts 1,200+
of the  world’s leading brands and agencies
as clients (think  3M, Air New Zealand, Bauer
Media, Coca-Cola, Deloitte, Disney, eBay,
Dentsu, Emaar, Estée Lauder, F/Nazca Saatchi
& Saatchi, Fujitsu, Google, Hershey’s, Hyundai,
Itaú Unibanco, Levi Strauss, Mastercard, Natura,
Omnicom, Oxfam, Samsung, Singtel, Skype,
TBWA, Scandic Hotels, Telefónica, Turkcell,
Unilever, Universal Music, Vlisco, Woolworths
SA and many more!), while our free monthly
Trend Briefings go to over 260,000 subscribers
in 180 countries.

MORE AT TRENDWATCHING.COM

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