Riding the next wave of change - 4 TRENDS THAT WILL DEFINE 2020 - Kadence International
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Riding the
next wave
of change
4 TRENDS
THAT WILL
DEFINE
2020
2020 TRENDS 1
WE ARE
KADENCE INTERNATIONAL Riding the next wave
of change: 4 trends that
will define 2020
The Global Boutique for Data and Insight
Kadence International is a
global boutique market research What does the year ahead hold?
agency. With offices spanning Asia,
Europe and the US, we combine the global
We brought together trend watching experts from across
reach of a large agency, with the agility and
our global boutique to identify four key trends that we
personalised service of a small boutique. We
believe will define the next 12 months, inspiring innovation
passionately believe that great research is at the across Asia, the US and Europe.
core of all business success so it’s our mission to
raise the impact of research in organisations.
1 The shift towards 360 degree wellness
The impact we create for our clients is being
recognised by key awarding bodies globally. In
2019, we were named Market Research Supplier 2 Personalisation reaching a new frontier as it moves offline
of the Year at the Marketing Research and
Insight Excellence Awards in New York, as
well as Market Research Agency of the 3 The move from brand purpose to purposeful design
Year at the Agency of the Year
Awards in Singapore.
4 Consumers left craving connection
We’ll investigate each of these trends in turn, looking at
what’s happening now, the brands leading the charge and
what you can do next, as we help you ride the next wave
of change.
W W W. KA D E N C E .CO M
2
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3
TREND ONE
The shift towards
360 degree wellness
About the
One of the key trends to watch in 2020 is the shift in how
consumers are thinking about their wellbeing. We’re seeing
research
consumers moving away from focusing purely on physical
health and appearance, to now recognising the importance
of their mental health too.
1
According to Twitter, conversations around wellbeing and
self-care have increased a massive 225% between 2016 and
2019. Tweets around the mind and mental health are also
up 122%, whilst the body and physical fitness have seen a 75%
decrease in conversations.1
Twitter conversations around wellbeing and
self-care have increased by 225% between 2016
TREND and 2019 2
ONE But consumers aren’t just talking more about these
topics. They’re looking for solutions too – from small scale
purchases like mindful colouring books, right through to
more structural changes like flexible working patterns and
healthcare systems that better support mental health.
The growth of this trend shouldn’t come as a huge surprise,
given that sadly, 88% of consumers worldwide report feeling
stressed, accordingly to Cigna’s 360 Degree Wellbeing Study.3
Despite this, it’s only a small number of consumers that
are currently spending money on products and services to
support their mental health. In the UK, for example, 70% of
consumers say they don’t yet spend any money on this area,
according to a 2019 report from Attest.4
1
https://marketing.twitter.com/na/en/culture-and-conversations#/
2
https://marketing.twitter.com/na/en/culture-and-conversations#/
3
https://wellbeing.cigna.com/
4
https://www.askattest.com/original-research/2019-health-and-wellness-consumer-trends-report
2020 TRENDS 4 2020
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70% of UK consumers don’t yet spend any money
on products to support their mental health5
Attest 2019 Health and Wellness Consumer Trends Report
This indicates that there is an opportunity for organisations across
multiple sectors to develop solutions and brand partnerships to support
consumers with their mental health and wellbeing.
But what could this look like?
Brands capitalising on the move towards
360 degree wellness
OOCA | HEALTHCARE | THAILAND AIRWEAVE | BEDDING | JAPAN
Meet Ooca, the Thai start-up seeking to support students with the stresses Airweave is a Japanese bedding company. Not only has the firm
of university. Ooca has developed an app which connects students directly launched its own sleep analysis app, it has also partnered with a
with therapists for as little as $30 dollars a session. The start-up is hoping Tokyo-based wedding planning company to pilot a scheme that
that its service can also support employers as they seek to provide mental rewards employees based on the amount of sleep they get each night.
health support to their employees. Employees simply track their sleep through the Airweave app and
those that get more than 6 hours’ sleep a night are able to trade in
their sleep points for food in the company cafeteria.
WEIGHTWATCHERS | FOOD AND DRINK | USA
Dieting giant WeightWatchers changed its name to WW (an abbreviation KINGS | FMCG | UK
of Wellness That Works) in 2019, a move which reflects the broader shift
we’re seeing in consumers’ perceptions of health. The rebrand saw WW Male grooming brand Kings is taking a different approach to mental
launch a brand partnership with Headspace which gives members the health. Instead of developing products or services to support positive
chance to access guided meditations through the WW app. WW is just wellbeing, the brand is donating 20% of its profits to mental health
one of a number of partners that Headspace has, most notably working charities. By taking action on this topic, rather than leading with empty
with 12 airlines worldwide to bring calming meditations and sleepscapes messaging or marketing campaigns, the companies hopes to endear
to over 800 million passengers. itself to consumers and make a positive difference to people’s lives.
5
https://www.askattest.com/original-research/2019-health-and-wellness-consumer-trends-report
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TREND TWO
Personalisation
reaches a new frontier
as it moves offline
2020 will see personalisation reach a new
frontier as it increasingly starts to occupy
offline, as well as online spaces, thanks to the
proliferation of new technology.
2
We already see brands tapping into location In August 2019,
and health data from smartphones and Google announced
wearables to provide personalised products, that its latest smart
services and marketing campaigns to home product will
consumers on the go. But the rise of facial include Face Match
recognition, and its integration into smart technology. The
home technology, will take this to another level, feature recognises
making personalisation part of our homes, our the person using
TREND shops, our day-to-day offline experiences. the device and
then serves up
TWO China, where facial recognition technology is
already widespread, is likely to lead the way in
bringing personalisation offline. A number of
personalised content
such as calendar
entries.
retailers have already installed facial recognition
technology in-store. For those that are able
to get it right, the opportunity is huge – the
ability to identify customers, track their in-
store behaviour, right down to their emotional
reaction to specific products, and then marry
this information with online behavioural data
to personalise offers, ads and experiences both
in store and online.6 Similar principles could
be applied in private spaces like the home or
the car, where smart home technology could
help brands better understand consumers and
provide targeted advertising and personalised
experiences at an individual level.
6
https://www.wired.co.uk/article/retail-surveillance-china
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76%
of Chinese marketers
are planning to increase
data gathering from the
Internet of Things over
the next 3 years. 7
American Marketing Association, Future of Marketing report, produced in conjunction with
Kadence International, Charney Research and YouGov.
Ashley Nin
INSIGHT DIRECTOR
“When it comes to personalisation, consumers
It should come as no surprise then that 76% of Chinese marketers are in a state of cognitive dissonance that will
say they are planning to increase data gathering from the Internet continue into 2020. Many will continue to have
of Things over the next 3 years. concerns about data protection and security, while
also expecting increasingly relevant products and
It’s also a priority for 50% of US marketers, according to our
services. The irony being that advancements in
recent Future of Marketing report for the American Marketing
personalization are primarily driven by the use of
Association.8
consumer data. It’s up to brands to navigate this
But as personalisation starts to invade our personal spaces, contradiction if they want to take advantage of
we expect to see a consumer backlash, bringing personalisation developments in this space.”
to a moment of reckoning. To overcome this and harness the
technology to its true potential, open and honest communication
is key. We’ve seen many brands fall foul of this and suffer the
ensuring reputational damage.
Educating consumers about the benefits of personalisation and
the trade-offs needed to achieve it will be crucial if brands are to
keep their customers on-side as the technology develops.
7
https://www.kadence.com/ama-future-of-marketing
8
https://www.kadence.com/ama-future-of-marketing
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Brands taking personalisation offline
BESTORE | FOOD AND BEVERAGE | CHINA
Food chain Bestore is using facial recognition technology to identify
shoppers in its stores. The technology is linked to the brand’s
ecommerce system, meaning that retail assistants can access
information on a shopper’s preferences to provide them with a
personalised sales experience in-store.
SK-II | SKINCARE | SINGAPORE
SK-II’s store of the future in Singapore utilises smart home technology
to give visitors personalised product recommendations. The Japan
skincare brand uses a smart mirror to analysis a shopper’s skin and then
recommend the most suitable products and treatments.
KIA MOTORS | AUTOMOTIVE | SOUTH KOREA
South Korean automotive brand Kia Motors is taking personalisation
to another level with its Real-Time Emotion Adaptive Driving System.
The system detects a driver’s emotion by tracking their heart rate and
facial expressions, and then adapts the in-car environment accordingly -
adjusting everything from the lighting to the cabin temperature. During
a journey, these signals are monitored constantly so that the system
can adapt to a driver’s emotions in real-time to maintain the optimum
driving experience.
7 ELEVEN | RETAIL | THAILAND
Convenience store 7 Eleven is bringing facial recognition technology
to 11,000 stores across Thailand. The technology is designed to help the
brand identify loyal customers, monitor their emotions and provide
personalised product recommendations.
2020
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TREND THREE
From brand purpose to
purposeful design
Brand purpose is undoubtably With the latter occupying an
one of the big trends of the past increasingly important place
few years. We’ve seen ads against in public consciousness in the
toxic masculinity, deforestation West due to the actions of
and discrimination, as brands have Greta Thunberg and Extinction
tried to convince consumers that Rebellion, we expect this to be
they share their values and have a big trend for 2020 onwards.
a higher purpose than simply
3 selling products. And with research
f rom Havas Media showing that
meaningful brands outperform the
77% of consumers globally
prefer to buy from brands that
share their values.10
stock market by 134% - it’s easy to
see why so many brands were quick Havas Global, Meaningful
to adopt this strategy.9 Brands 2019
TREND
But we’re starting to see a shift.
As consumers begin calling these
campaigns out for being all-talk and
THREE no action, companies are realising
the need to move beyond surface-
level brand purpose and to start
embracing what we refer to as
purposeful design, creating products
and services which allow consumers “Whether it be the use
to make the world a better place. of fast fashion, flying or
eating meat, we’ll see
Innovation in this space falls into two the arrival of products
categories – products and services and services that allow
which enables people to make a individuals to manage
positive impact to the causes they their impact on the
care about and those which enable environment.”
people to reduce their impact on the Darren Lewis
world around them. UK Country Manager
9
https://www.campaignlive.com/article/no-one-care-77-brands-died-overnight-study-claims/1526400
10
https://www.campaignlive.com/article/no-one-care-77-brands-died-overnight-study-claims/1526400
2020 TRENDS 14 2020
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Brands leading the way in
Brands looking to embrace purposeful purposeful design
design will need to remember the
lessons learned from the first forays H&M | FASHION | SWEDEN
into the world of brand purpose. Swedish retailer H&M is trialling a new clothing rental service to
empower its customers do their bit against the environmental
impact of fast fashion. For $40 a week, customers can sign up to
As was the case for marketing, any attempt at purposeful deign the pilot scheme which allows them to rent pieces of clothing for
needs to be authentic. Consumers are aware that many companies up to 30 days.
want to be seen to be doing good but don’t always follow through
on their pledges. They’ll view your products and services in context,
scrutinising the wider actions of your business to ensure that your ROUNDUP | FINANCIAL SERVICES | USA
initiative is genuine. Because of this, purposeful design needs to
reflect a company-wide commitment to a particular cause. If the Roundup is a new app that enables people to put their spare
product you’re designing is at odds with your values, mission or key change to good use. Once you’ve connected the app to your bank
elements of your business strategy, you’ll quickly be found out by account, it rounds up every purchase you make and donates the
consumers and your initiative will be dismissed at tokenistic. money to a chosen charity.
GRAB | TECHNOLOGY | SINGAPORE
Grab is drawing on purposeful design in the development of its
rewards programme. In addition to being able to redeem material
rewards, customers can now convert their reward points into
donations to the International Federation of Red Cross and Red
Crescent Societies.
MASTERCARD | FINANCIAL SERVICES | USA
Mastercard has joined forces with tech start-up Doconomy to
launch a new credit card which allows consumers to manage not
just their money, but their carbon footprint too. The card measures
the environmental impact of your purchases, and caps spending
when you exceed your own personal carbon footprint budget.
This is a particularly interesting development as the emergence
of schemes like this will increase consumers’ awareness of the
environmental impact of their actions, meaning that we could soon
see sustainability becoming a key purchase consideration
for consumers.
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16 2020 TRENDS 16 2020
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TREND FOUR
Consumers are left
craving connection
We’re seeing consumers craving connection in
an increasingly divided and lonely world, brought
about by the perfect storm of socio-economic,
technological and political forces. So what’s
happening?
People are now single for longer, meaning that 40%
more people are living alone, particularly in of Japanese
4
urban centres. In Japan, it’s predicted that 40% of households will
households will be single person households by be single person
2040.11 This trend is echoed in the West – in the US households by
half of young people aged 18 – 35 say they don’t 2040.13
National Institute of
have a steady romantic partner. 12
Population and Social
Security
The way we work is also changing. Whilst an
TREND
increase in remote and flexible working has brought
benefits to many workers, it can, by its very nature,
be isolating. Technological developments, hailed
FOUR for their power to bring people together, haven’t
always brought positive change. The rise of online
everything – shopping, meal delivery, banking - has
46%
resulted in many community spaces closing or of Americans say
falling into disrepair. What’s more, some academic they sometimes or
studies show that social media usage is actually always feel lonely.15
correlated with loneliness.14 Add to this the increasing
polarisation of politics and this feeling of isolation
has reached a tipping point, where people feel more
divided and alone than ever before.
The feeling of
The net result? An overarching sense of loneliness loneliness is strongest
that leaves consumers searching for connection and amongst Gen Z.
a feeling of belonging. Cigna, US Loneliness Index
11
https://www.scmp.com/week-asia/society/article/3004622/are-companion-robots-cure-asias-emerging-loneliness-epidemic
12
https://www.washingtonpost.com/gdpr-consent/?destination=%2flifestyle%2f2019%2f03%2f21%2fits-not-just-you-new-data-
shows-more-than-half-young-people-america-dont-have-romantic-partner%2f%3f
13
https://www.scmp.com/week-asia/society/article/3004622/are-companion-robots-cure-asias-emerging-loneliness-epidemic
14
https://theweek.com/articles/815518/epidemic-loneliness
15
https://www.cigna.com/newsroom/news-releases/2019/cignas-us-loneliness-index-provides-actionable-insights-for-
improving-body-and-mind-health
2020 TRENDS 18 2020
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TRENDS 19In 2020, we predict that we’ll see brands
making fundamental changes in strategy COMPANIES WILL BRING CONSUMERS IN, BY EMBRACING
CO-CREATION AND INVOLVING CONSUMERS IN THE JOURNEY
to meet this need for connection and
play their part in overcoming the We also expect to see brands harnessing co-creation as a tool
to meet consumers’ needs for a sense of belonging. Challenger
loneliness epidemic. We see this playing brands and start-ups do a great job of this and in 2020 we’ll see
out in 4 main ways. bigger brands following in their footsteps. Tandem Bank, for
instance, was born out of a Co-Founder Community. It invited
customers into its HQ to shape its journey and these “co-founders”
decided the name of the brand, shaped its products and informed
its brand identity. As a tool that allows brands to root innovation
firmly in customer needs, and to build a strong bond and shared
COMPANIES WILL REALISE THEIR ROLE AS COMMUNITY CREATORS
sense of purpose with people in the process, co-creation will
enjoy a new renaissance.
Online communities and interest groups have been a fundamental
element of many companies’ strategies for years, but in 2020, we’ll see
these move into the real world as brands seek to bring likeminded
people together in offline spaces. Customers will be empowered to do
the same, as companies seek to find opportunities to connect on FIRMS WILL RE-EVALUATE THEIR USE OF TECHNOLOGY
a global scale. We’ll also see brands moving beyond their core offering,
looking for social activities and causes in adjacent fields that they can In a word that leaves people craving real experiences, technology
bring people together around to create a sense of community. cannot be the be all and end all. We’ll see brands rethinking the tools
they use, focusing on tech that complements rather than replaces
real world experiences. Augmented reality, with its potential to add
richness and depth to a user’s physical surroundings shows great
promise for this, so we expect to see its growth boom in 2020.
BRANDS WILL RETHINK THEIR OFFLINE RETAIL OUTLETS
In line with this, we’ll see brands reshaping their physical stores to
become experiential hubs. We expect to see ever more activities and
community events taking place in stores to facilitate meaningful
offline engagement between a brand and its customers and
between shoppers. We predict that even brands which have
historically struggled to justify retail sites will be dissuaded from
becoming pure-play online retailers, and will instead begin to club
together to occupy multi-purpose retail spaces which focus on
bringing people together to build brand loyalty.
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20 2020 TRENDS20 2020
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TRENDS 21Brands meeting consumers’
craving for connection
FACEBOOK | TECHNOLOGY | INDONESIA
Jakarta is home to Facebook’s first offline community space. The
multi-purpose environment is designed to bring online communities
together in person to further their projects and strengthen their
bond and can be booked through the Facebook platform.
BARCLAYS | FINANCIAL SERVICES | UK
Barclays is hoping to create a sense of connection and community
through its Digital Eagles programme. These tech savvy employees
host Tea and Teach sessions in Barclays branches and in community
spaces that bring residents together to learn digital skills.
VANKE | PROPERTY AND HOUSING | CHINA
In China, property developer Vanke, has developed Blue Heart, a
shared social space within one of Chengdu’s malls. Local residents
can sign up to gain access to the hub, which includes a reading
room, cooking area and space to host social gatherings. Vanke
hopes that building a space for people to connect, in a city where
communal space at home is limited, will make for a commercially
sound venture.
TENZING | FOOD AND BEVERAGE | UK
Founded by ex RedBull CMO, Huib van Bockel, Tenzing is the new
challenger brand in the UK energy drinks market. The company
runs a number of activities that allow consumers to get involved
with Tenzing in the real world: from its running club to a trek to
Nepal, where the Tenzing brand was born. With trail runs and
charity projects coming soon, the brand’s real-world community
is resonating with consumers looking for that human connection,
whilst building a following of loyal and engaged customers in
the process.
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22 2020 TRENDS 22 2020
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TRENDS 23Ready yourself
for the next wave
of change
In this fast-moving world, brands must react to
remain relevant. To find how we can help your
business to respond to the trends outlined in this
whitepaper or identify the emerging themes that
are reshaping your industry, get in touch.
www.kadence.com/off ices
@kadence_insight
www.linkedin.com/company/kadence
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TRENDS 25WWW.KADENCE.COM 2020 TRENDS 26
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