Page 19 - Retail World March 2021

INDUSTRY INSIGHT playing out (slowly but surely) in interesting ways across the region, with companies publicly addressing their shortcomings and committing to tangible positive change. Looking towards the next 18-24 months, many brands will be starting to see the results of their initiatives, and this will set a precedent for guiding strategies. Ethically minded and purpose- driven business philosophies will move into the mainstream. In the long term, a much more collaborative partnership between consumers and brands will emerge, moving away from the more tension-filled times of the early 2020s. Virtual lives Raise your hand if, like many of us over the past year, you managed to fit in a quick getaway to a beautiful tropical island where you could collect shells, catch fish, and visit friends to your heart’s content ... I’m talking about the social stimulation video game, Animal Crossing, if you haven’t already caught on. The game proved extremely popular with consumers of all ages and gaming levels, as the need for some form of escapism soared during lockdown periods. This year, we’ll see gaming move away from being just an entertainment source to being an integral space in which consumers of all ages and demographics form connections with their peers and preferred brands. As such, brands of all categories have the opportunity to reach the vast number of consumers spending their leisure time in the virtual world by advertising within games or partnering with gaming companies and e-sports teams. The mainstream 5G adoption set to occur in the years beyond 2021 will open new vistas in online and gamified experiences and events, into which brands can further embed their strategies around entertainment, working and learning. The increased time spent in the virtual world will also open up more conversations around issues like non-addictive game design as consumers seek a balanced approach to digital entertainment. Priority shift This 2021 trend, driven by the ‘value’ trend driver, focuses on how consumers are returning to the essentials, seeking flexible possession, and reframing what ownership means. Consumers are already tightening their purse strings for tough times ahead and are looking to save more and spend less in areas that don’t provide value. Across the Asia-Pacific region, 72 per cent of surveyed consumers say they have a budget they are trying to stick to as much as possible. While affordability and convenience will remain important, safety, protection and durability of goods will also hold much value. It will be critical for brands to deliver and communicate the tangible benefits that make their products indispensable. The uncertainty likely to persist in coming years will lead consumers to further prioritise flexibility. Flexible rental terms, payment options and ways to obtain (rather than necessarily own) goods can be a winning factor for consumers unable to plan too far ahead. What convenience means to consumers will also evolve. Rather than just speed or portability, convenience could also mean helping people plan, or giving them much easier access to previously unattainable products and services. In the years to come, brands can find opportunities within this expanded definition of convenience. Coming together The collective trauma experienced at the beginning of the pandemic will carry through the next 12 months, as consumers continue to see the effects of the crisis play out in real, immediate ways. Consumers will seek brands that can bring people together, whether digitally or not, to help them overcome the mental stresses of the pandemic. A loss of normality will also mean that consumers will be looking for new ways to celebrate their heritage, values and lifestyles to feel a sense of connection with their communities. Brands would do well to create initiatives that connect with consumer identities and promote feelings of belonging and unity. Years from now, this strong sense of community, born out of social isolation and the need to support each other, will evolve. Consumers will continue to seek new forms of connection, based not just on their local identity, but rather on their interests, beliefs, and goals. As this strengthens further, it could impact our immediate surroundings, with city spaces being designed with communal versatility in mind. Digital dilemmas Tech-based solutions have been immensely helpful to both consumers and brands during the Covid-19 outbreak. However, many consumers in the region still lack experience and familiarity with different technologies, indicating that TO PAGE 18 MAR, 2021 RETAIL WORLD 17