BAUD

5 trends for consumer products

By Clara López, member of Baud's team.

Consumer products have complex casuistry and diverse targets and move in an environment of change and growing complexity, accelerated by the COVID crisis. However, there is a common reality: if you connect with the end consumer, it works.

This statement, which seems simple, hides a high complexity behind that must be resolved taking into account the particularities of each case. While it is true that at the same time there are trends that are generally of interest to the entire consumer products sector.

Macro trends 

Macro trends are relevant not only for the consumer sector, but for all sectors. The old acquaintances are digitization, sustainability and the promotion of diversity. 

Those that have acquired new relevance in recent months have to do with the accelerated and real incorporation of the previous ones and also with health and safety, resilience in a chaotic age, and finally entertainment and humor. In an atmosphere of desolation and tension, from an exquisite sensitivity, entertainment and humor open the window to the positive emotions that we all need to move forward.

Consumption trends

We can highlight five more particular trends for the heterogeneous sector of consumer goods.

1. The digital consumer

The world continues its openness to new technologies and new sales channels. This leads to a global competition scenario that increases complexity in areas such as costs or differentiation, but also leads to a multiplied demand. A global digital consumer to which we can contribute a unique value that manages to connect with him and maintain that connection over time. The challenge for large companies will be not to fail and manage failure. For medium-sized companies, a good strategy for private and public partnerships, such as territory brands or Regulatory Councils, and the precise segmentation and monitoring of their campaigns. The challenge for both of them is to make online shopping a complete experience.

2. Scheduled durability

Consumption accelerates your movement from possession to experience. In both cases, the demand for authentic and high-quality goods, new, but also second-hand, is increased, in line with the environmental awareness and conscious consumption of the new generations.

3. Human functionality

Also called 'new pragmatism', consumers seek that the goods they purchase are useful to them, without missing any functionality, but not too much. Satisfactory, no more, no less. At the same time, it is important to understand such satisfaction from a very human prism, relative to functional needs, but also emotional ones. 

4. Alternative currency

Alternative currencies, that is, the mainly digital evolution of the traditional loyalty card, are being presented as an option for brands or for alliances between them, alleviating the financial stress of brands and consumers, and boosting their loyalty relationship.

5. New influences

In order to understand and enhance personal identity in a hyper fragmented society, the new generations look for new references and find them in social networks and in their unknown peers. Everyday influencers who provide valuable content 24/7 in ways as different as retro or K World.

We are drawing the future together today, and companies will have to make the decisions that allow them to move towards it from their uniqueness and vision. Betting on some of these trends or on different ones, but always moving forward.

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Sources: EFE 2020, La Vanguardia 2020, El economista 2020, Fast Company 2020, Mintel 2020, Trendhunter 2018 and 2020, Los 40 2018, McKinsey 2018 and 2020, Deloitte 2020, expertise Baud 2020.

Image by Clay Banks.