The landscape of consumer behaviour has undergone significant transformation, driven primarily by the rapid adoption of connected devices. The modern consumer, often referred to as the ‘connected consumer’, is characterised by their reliance on technology to navigate everyday life, making decisions influenced by the vast amounts of information available at their fingertips.
The connected consumer
The rise of connected devices has been a game-changer, with many global consumers relying on such products almost around-the-clock. These devices have integrated seamlessly into various aspects of life – from e-commerce to digital communities – creating a 24/7 feedback loop of information, guidance, and entertainment.
The pervasiveness of connected technologies is evident in consumer preferences, with many Australians agreeing that these technologies have improved quality of life. This sentiment is even stronger among Gen Z and Millennials. Innovations such as voice-recognition technology are reducing shopping frictions, exemplifying the digital era’s emphasis on swift and seamless experiences.
Technologies like augmented and virtual reality are also transforming the retail landscape by allowing consumers to interact with products in novel ways, particularly in categories where physical inspection remains crucial, such as groceries.
Brands are leveraging connectivity to break free from traditional innovation processes; integrating insights from social media to enhance agility in their retail strategies. While digital engagement is paramount, brick-and-mortar experiences still play a crucial role in connecting with consumers. An effective omni-channel approach is essential for retailers striving to meet the demands of today’s hyper-connected and value-conscious shoppers.
The rise of Gen Z
Gen Z is emerging as a highly influential generation, poised to make up a substantial portion of the Asia-Pacific population by 2025 and possessing significant global spending power. This cohort values diversity, inclusivity, environmental sustainability, and social issues, seeking out brands that align with these principles.
Despite their digital nativity, Gen Z is mindful of the potential negative impacts of social media on wellbeing. They are also entrepreneurial, with some leveraging technology for side hustles, such as social media influencing. Their shopping habits are omni-channel, with a significant portion favouring both online and offline avenues, influenced heavily by platforms like TikTok and gaming environments.
To connect with Gen Z, brands must prioritise authentic communication tailored to this generation’s evolving preferences. They value discovery and immersive experiences, favouring minimalistic, eco-friendly packaging that aligns with their sustainability values. Marketing efforts perceived as inauthentic or opportunistic are flatly rejected.
The emergence of savvy shoppers
Economic pressures have given rise to savvy shoppers who maximise their budgets without compromising on quality or experiences. For these consumers, value transcends pricing; it encompasses quality and the overall shopping experience.
While some savvy shoppers invest in high-quality supermarket products, they also indulge in ‘funflation’ spending on experiences like live entertainment and travel, viewing them as essential escapism. This trend translates into ‘little treat culture,’ where even indulgent, high-priced FMCG products find their way into squeezed household budgets.
Brands must adopt a nuanced approach to value, emphasising promotions and offers rather than consistent low pricing. This strategy is particularly relevant for retaining quality-focused shoppers and avoiding the pitfalls of downward trading.
Connect with your consumers through data
At Circana, we understand the ever-evolving FMCG landscape and how to integrate multiple datasets to deliver actionable insights into client business challenges.
AI’s evolution is moving us along the analytics curve, which is mostly related to decisions that solve ongoing business challenges. We believe that the future will automate more marketing, sales and supply-chain decisions. Dashboards will remain a bedrock of performance analytics and how we serve clients but will gradually shift towards continually adjusted automated decisions.
Our future vision shapes the enhancements of our proprietary technology. We are teaching Liquid Data to read, write, listen, learn, think, explain and learn – to quickly and accurately solve problems.
Globally, our real-life applications of AI are helping clients activate personalised data-led targeting, create more efficiency in supply chains, set prices to maximise margin outcomes and manage media campaigns. Circana’s Audiences reaches consumers with a higher propensity to buy your products, shop at a specific retailer and refine marketing strategies.
As our data-driven world continues to evolve; marketers, category and brand professionals are all being held more accountable than ever for success and delivering results – not just with vanity metrics like clicks and engagement, but perpetually trying to understand how they convert into sales as e-commerce transactions provide greater visibility into the purchasing journey with game-changing first-party data.
Alistair Leathwood is head of analytics, insights, and media for APAC at Circana.