DAPPA’s Post

Across various categories of non-essential spending, ONE QUARTER of global consumers on average say they will increase their spending over the next 12 months, according to Euromonitor International’s Voice of the Consumer: Lifestyles Survey (fielded January to February 2023). Younger consumers particularly enjoy spending their money rather than saving it and are more likely to indulge in luxury products compared to older consumers. Looking ahead, premiumisation will continue to flourish and manifest in new ways globally. For businesses to act on these opportunities, they will need to keep the following in mind: 1. Think outside the box – explore new avenues to entice consumers with more premium offerings, from business models to partnerships. 2. Ensure you are bringing the right price point to the right consumer audience – consumers across ages, income levels, and geographies seek premium products, services, and experiences. Tailoring offerings accordingly will be increasingly important. 3. Maintain a strong understanding of consumer values beyond price – experiences, sustainability, and convenience are all important values to consider to make a product feel more premium to consumers

🛒New Retail Trend: Splurge on Groceries🛒 ➡ Younger generations spending more on this category than any other ✨ Fancy drinks, travel size products, unique snacks and skincare are some of the items Millennials and Gen Z are spending large amount of money in 💲 Despite inflation, groceries ranked highest for these generations outpacing restaurants, bars, travel, beauty and personal care, apparel, and fitness ➡ How is the industry seizing this trend? 🔹 Companies such as Walmart are now renovating and transforming their physical stores to include fancier brands and products and compete against Target 🔹 Other players like REWE are introducing all vegan stores, with dining experiences inside to tap into new consumption trends *There are also opportunities in the digital channels to enhance and improve the purchasing user experience Which other supply chain decisions should be made to seize this trend?

What can the 'Lipstick effect' tell us about the economic landscape? I have previously written how brands and retailers' focus on Health, Beauty and Wellness can shield themselves from a downward trend in consumer spending. The resilience of these segments due to its small indulgence, 'little luxury effect' on consumer mindsets keeps these brands and categories humming along. But higher inflation and interest rates have finally caught up, and the 'lipstick effect' can be used again as a true indicator of the actual and real economic slowdown we are seeing. - Prestige Beauty category is seeing a slowdown - Interestingly Prestige and Premium Health and Beauty is outdoing Mass - Premiumisation trend is expected to be a buoy for the industry - Inflation and cost of living is affecting trends, consumer behaviour and channel distribution The importance of brands to stay nimble in the face of such uncertainty is key. Private Label and Independent brands can drive this innovation and dynamism needed for retailers and consumers, to fill them with optimism. "We have no reason to be pessimistic, but being optimistic would be quite bull at this point in time. " - LVMH What economic indicators are you paying attention to? #Beauty #retail #economy

🏃♀️ Keeping up with shifting consumer trends is no easy feat for retailers in an increasingly competitive omnichannel shopping market. Staying ahead of trends is even more difficult. 🔎 To help prepare for the hectic year ahead, Inside Retail US delved into a recent Euromonitor International report, which revealed the top global consumer trends to expect in 2025. 🖱️ Click on the link below to discover three relevant trends retailers may want to tap into as 2024 draws to a close. #insideretail #retail #euromonitor #research #marketing #strategy #consumer #insights #shopping #technology #linkedin #webcontent #editor

Though we are seeing -consumer optimism increasing, real spending remains relatively flat. An interesting observation on higher-income millennials , they are leading the trend of selective indulgence, with a focus on spending in specific categories such as food, fashion, and travel. Consumer are spending and splurging within categories like - 1. food (both in restaurants and at grocery stores), 2. fashion (especially apparel and footwear), and 3. travel. Would good to see how the above categories bring in impact within the retail sector. McKinsey & Company #RetailAnalytics #CPGAnalytics #ConsumerSpending

💄 Beauty and Wellness: The Resilient Retail Heroes 🦸♀️ While many retail sectors are feeling the pinch, beauty and wellness are standing tall – and it’s no coincidence. Over the past three years, the rising cost of living has reshaped consumer priorities, putting self-care firmly in the spotlight. Pharmaceuticals, hair care, body care, and fragrances have become non-negotiables for many. In fact, 68%, 66%, 62%, and 54% of consumers, respectively, have either maintained or increased their spending in these categories. It’s clear that even in tough times, people are willing to invest in feeling good. Here’s the kicker: beauty is winning out over other retail categories. A recent study revealed that 23% of consumers are cutting back on clothing and accessories to splurge on health and beauty. Barclays data backs this up, showing a 1.7% drop in clothing spend last month. Why? Because beauty and wellness are no longer “nice-to-haves” – they’re essentials for coping, thriving, and staying connected to ourselves. One of the main connections to this success is the growing driver that is social media….social commerce is here to stay and one all brands should be paying attention to. https://lnkd.in/e_6vYB2u

"2025: Australian Shoppers Set to Embrace Seamless Shopping and New Products!” As we look ahead to 2025, it’s clear that consumer buying habits will evolve at an unprecedented pace. I am no economist, but judging by the trends, consumers sense a degree of cautious optimism. I hope geopolitical conflicts will soften post-US election, and consumerism is expected to grow. Meanwhile, in our backyard, we expect RBA to achieve its inflation target and reduce interest rates, easing financial pressure on homeowners and freeing up disposable spending. Here’s what’s on the horizon. 📲 The Rise of Omnichannel Shopping: Consumers are no longer choosing between online and in-store—they want it all. In 2025, seamless omnichannel experiences will dominate. Retailers will be drivers by combining e-commerce convenience with in-store experiences (imagine AR-powered shopping or real-time personalisation) and checkout-free technology. Direct-to-consumer (DTC) brands will continue to grow, but those with flexible fulfilment options, like BOPIS (Buy Online, Pick Up In Store) and same-day delivery, will see the most success. International tier 2 consumer brands are set to elevate your shopping experience by providing high-quality, reliable products. Whether through traditional marketplace platforms or direct drop shipping from overseas right to your doorstep, these brands are making it easier than ever to access for the savvy shopper. 🚀 Popular Sales Channels: Social commerce is on the rise, with platforms like TikTok, Instagram, and emerging shopping apps leading the charge. Consumers crave discovery and interaction during their shopping journey, making livestream shopping and influencer-driven marketplaces essential sales channels. Subscription models will also continue to gain ground, especially in lifestyle categories like wellness, beauty, and tech. 💡 Hot Categories in Demand: Sustainability is no longer a trend but an expectation. Categories like eco-friendly household products, sustainable fashion, and ethically sourced food will continue to thrive. Additionally, wellness will remain a booming sector, with growth in fitness tech, mental health products, and wellness travel. Consumers are prioritising both convenience and their overall health, so we’ll see strong demand for smart home devices, wearables, and health-focused kitchen gadgets. #RetailTrends2025 #ConsumerBehaviour #Ecommerce #Sustainability #ProductInnovation

Retailers must emphasise their sustainability credentials and social media engagement to better cater to the younger generations and capitalise on their growing influence on retail market trends, according to GlobalData Plc https://lnkd.in/eaVxJ4nZ #retail #retailnews #customer #markettrends #trends #sustainability #socialmedia #youngpeople #genz #genalpha

🛍️ What Fashion, Electronics, and Groceries Know About Winning Big! And What We Should Learn 📖 Ever wonder what the power players in Fashion, Electronics, and Groceries have in common? It’s not just their billion-dollar revenues or shiny HQs. Their real superpower? They adapt like pros and manage their brand perception like a fine art. Here’s what they’re doing and why it matters to us. 👜 Fashion: Keeping It Fast (and Green) Fashion’s leaders, like Nike and Zara, aren’t just following trends; they’re creating them. Nike aims for 100% renewable electricity by 2025 and a 30% reduction in supply chain emissions. Zara’s parent company, Inditex, launched a €50 million fund for textile innovation, proving sustainability and profitability can coexist. 💻 Electronics: Innovate or Die Apple, nearing a $4 trillion valuation, thrives on AI advancements and product innovation. The iPhone 16 Pro’s titanium build and Apple’s growing services like Apple TV+ prove reinvention is a constant necessity. 🛒 Groceries: Quiet Disruptors Grocery giants like Kroger and Whole Foods thrive by meeting consumers online. Online grocery sales in regions like the Middle East and North Africa have grown significantly, showing how data-driven stocking and personalization turn simple groceries into game-changers. 🏠 Home Goods & DIY: Meet Them at Home IKEA balances affordability with design, while Lowe’s thrives in the DIY boom. Lowe’s Q3 2024 earnings reached $1.7 billion, solidifying its status as a home improvement leader. The new battleground? Your living room or garage. 🧴 Personal Care & Health: Tailored for You! Personalization is the future. AI-driven skincare by L’Oréal and Walgreens’ at-home wellness kits are reshaping how consumers engage with personal care products, solving problems before customers even realize them. 🎮 Entertainment: It’s All About Experience Streaming services like Netflix and Disney+ are huge, but gaming is stealing the spotlight. The gaming industry is expected to hit $282.3 billion in 2024, driven by immersive platforms like PlayStation VR2. When escapism is the product, the possibilities are endless. 🚗 Automotive: Drive (and Repair) Smarter Tesla redefines the auto space with EVs and a lifestyle brand. Meanwhile, AutoZone thrives by catering to cost-conscious DIYers, proving even traditional sectors can succeed with the right strategy. 📈 The Takeaway Across industries, success boils down to three moves: ☑️ Adapt to Consumer Needs: Embrace change. ☑️ Leverage Technology: AI and AR are essentials. ☑️ Embrace Sustainability: Today’s consumers expect more than great products. As Charles Darwin said, “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” 🐢 + 🐶 (Science nerds will get it) #Leadership #Innovation #FutureOfRetail #BrandStrategy #ConsumerTrends #CustomerExperience #RetailLeadership #EcommerceLeadership #RetailNews #UnifiedCommerce