GDI trend radar: consumer grounding and increasing value orientation
In Trend Radar 1.08, researchers at the Gottlieb Duttweiler Institute (GDI) follow up on their analysis of societal trends by describing the most important influences and developments for the retail sector. Among other things, they discuss a return to basics in consumer behavior and customers’ need for tangible quality.
In Trend Radar 1.08, researchers at the Gottlieb Duttweiler Institute (GDI) now describe the most important influences and developments for the retail sector, following on from social trends.
It can be observed that customers have had enough of mass-produced products and marketing lies. They are fighting back by seeking information from other customers rather than from the retailer or manufacturer before making a purchase. Forums, review and comparison sites help them to do this. Providers are thus losing control over their communication.
Another development cited by the institute is the migration of wealth to the east. In India, four fifths of the population are employed. There are 3.5 million university graduates there every year, around half a million of whom are engineers. Wages are rising rapidly and the focus is shifting from exports to consumption. China is hiring Indians, while India is producing in Vietnam and Romania - an "outsourcing of outsourcing" is being observed, according to the GDI press release.
The institute also speaks of a return to basic needs and a resulting grounding of consumption: because prices for basic foodstuffs and energy will rise massively in the near future, consumers will have to spend a growing proportion of their income on everyday goods - and will be able to afford less overall.
Another trend cited is an increase in value orientation in society. The market for sustainably manufactured products will experience a boom as more and more sections of the population want to consume consciously. Suppliers will have to raise their profile in terms of credibility, transparency and trustworthiness. The traditional price war for customers will be replaced by competition based on trust.
Furthermore, a shift from shopping streets to meeting places - so-called social hubs - is to be expected in city centers. In an increasingly anonymous world, social hubs will replace the village and market squares of the past.
The last point mentioned in the trend radar is the customer's need for tangible quality: While for years only the brand was important, customers now want real value for their money again. As a result, classic brand bait from providers is increasingly being seen through.
It can be observed that customers have had enough of mass-produced products and marketing lies. They are fighting back by seeking information from other customers rather than from the retailer or manufacturer before making a purchase. Forums, review and comparison sites help them to do this. Providers are thus losing control over their communication.
Another development cited by the institute is the migration of wealth to the east. In India, four fifths of the population are employed. There are 3.5 million university graduates there every year, around half a million of whom are engineers. Wages are rising rapidly and the focus is shifting from exports to consumption. China is hiring Indians, while India is producing in Vietnam and Romania - an "outsourcing of outsourcing" is being observed, according to the GDI press release.
The institute also speaks of a return to basic needs and a resulting grounding of consumption: because prices for basic foodstuffs and energy will rise massively in the near future, consumers will have to spend a growing proportion of their income on everyday goods - and will be able to afford less overall.
Another trend cited is an increase in value orientation in society. The market for sustainably manufactured products will experience a boom as more and more sections of the population want to consume consciously. Suppliers will have to raise their profile in terms of credibility, transparency and trustworthiness. The traditional price war for customers will be replaced by competition based on trust.
Furthermore, a shift from shopping streets to meeting places - so-called social hubs - is to be expected in city centers. In an increasingly anonymous world, social hubs will replace the village and market squares of the past.
The last point mentioned in the trend radar is the customer's need for tangible quality: While for years only the brand was important, customers now want real value for their money again. As a result, classic brand bait from providers is increasingly being seen through.
