Page 12 - The Five Forces of Everything
P. 12

In 2016, a U.S. poll found that 78% of Millennials*

       It has been said that we’re reaching                                                would choose to spend money on experiences
       the end of the middle. Mainstream                                                   over buying something material.
       players appear to be losing out to small
       insurgents  offering  something  new  and                                           *Observed by HARRIS POLL
       different. What’s causing this disruption?
       According to research undertaken by                                                 Psychologists tell us that experiences,
       the University of Washington, daily use                                             such as vacations, concerts and meals
       of social  media  is  literally  changing  the                                      out bring more enduring happiness
       way our brains work. Constant online                                                than  material  purchases,  such  as
       stimulation is driving people to seek out                                           high-end clothing and electronic
       the same level of experience offline.
       In other words, we are literally being                                              We believe that people’s growing
       rewired to break with what we know.                                                 preference for experiences presents
       For  the  most  powerful example  of                                                opportunities for brands to engage
       this phenomena, consider Millennials in China. Dependency upon                      more of the human senses, to achieve
       social media is perhaps the highest in the world, and this has created              something altogether more profound.
       extreme levels of propensity to try new products and services.
       To achieve success, manufacturers must not only innovate fast, but                  Right: ‘Suffocation’. A publishing narrative has sprung up
       frequently. Smaller, more agile, local brands are therefore gaining                 dedicated to living with less stuff.
       momentum over international players.

                                     But the bigger players are fighting back.             Given that high
                                     Unilever’s Marmite  has  created  Crunchy
                                     Peanut  Butter  in  Europe and  Nestlé’s              value, emotionally
                                     Kit  Kat  has  launched  Chilli  Crab  in Asia.
                                     These launches  demonstrate  that  the                driven occasions are
                                     mainstream is starting to take more risks.            growing* it stands to reason that people want

                                     Social commentator David Brooks observes              something more meaningful from brands.
                                     that society is moving from self-effacement
                                     to self-promotion, presenting brands with             *Observed by KANTAR World Panel
                                     opportunities to support people’s need for
                                     ‘edgy relevance’ across  their social media           We believe brands have permission to push boundaries, be more
                                     networks. All of which favors the fantastic           adventurous and Be The Change. What will you do next?
                                     over the familiar.

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       FORCE #1                                                                                                                          OBSERVATIONS | IMPLICATIONS | ILLUSTRATIONS
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