Consumers are now enjoying endless first times, on ... - TrendWatching

February 2013

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VIRGIN CONSUMERS

Consumers are now enjoying endless first times, on a daily basis. With you?

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Definition The accelerating pace of innovation in the consumer arena means everyone is now at times, if not constantly, a VIRGIN CONSUMER – unfamiliar with many of the products, services, apps, experiences or brands they encounter every day. However, far from being coy, VIRGIN CONSUMERS lust after, try out, and experiment with all these new brands, products, services and experiences more than ever. As long as brands make them effortlessly simple, intuitive, and yes, fun.

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A 1 minute summary of trendwatching.com’s Trend Briefing on VIRGIN CONSUMERS

w w w. t r e n d w a t c h i n g . c o m

VIRGIN CONSUMERS

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NEWISM

Driving the explosion of VIRGIN CONSUMERS

The fundamental driver behind the VIRGIN

(Sources: Company statements; Chinese State

CONSUMER trend? NEWISM.

Intellectual Property Office; Startup Britain, all

Today, consumers from Dubai to Canada

January 2013)

can order pizza via a fridge magnet, 3D

That’s NEWISM for you: thanks to the usual

print their own homeware, and visit a virtual

suspects like connectivity, globalization,

grocery store on a train station platform.

the demolition of barriers to entry and the

They live in a world of Chinese luxury

democratization of design and manufacturing,

fashion brands, social credit cards, and

the pace and volume of consumer-facing

ultra-transparent sushi kitchens.

innovation has never been higher. Which

They must navigate through the insane levels

means an explosion in VIRGIN CONSUMERS:

of choice offered by the 19,000 new apps that Apple says are added to their store every


VIRGIN CONSUMERS

consumers who, no matter how experienced, are inevitably (and endlessly) encountering

month, the 18,000 projects on Kickstarter that

tons of products and brands for the first-time.

were successfully crowdfunded in 2012, the 1.2

Now, on to two things to keep in mind

million patents for innovations granted in China

when thinking about (and if you’re a B2C

alone, or the 480,000 companies registered in

brand or agency, catering to) these VIRGIN

the UK in 2012... We could go on (and on).

CONSUMERS:

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1. EAGER VIRGINS Why the lust for the new has never been stronger

NEWISM is not only about the accelerating pace

All that means more consumers than ever are

of innovation, it’s also about fueling consumer

convinced that the ‘new’ will help them improve

appetite for the new, which has never been

every aspect of their lives, and thus the rising

higher.

numbers of eager VIRGIN CONSUMERS, who

Mainly, hyper-competition has led to the ‘new’ no

want to dive in to, try out, experience and

longer being seen as a tired marketing ploy from old brands. Instead, new products and services

being launched on a daily if not hourly basis.

ARE now actually often more surprising, more

Just look at the tech sector (the ultimate NEWISM

convenient, more intuitive – and thus better – than

posterchild): in mid-2012, the Ouya games

established alternatives, if there are alternatives to

console raised USD 1.2 million less than 24

begin with. And the ongoing megatrend towards

hours after its launch on Kickstarter. Meanwhile,

consumers demanding brand honesty too – which

in November, the new iPad 4 and iPad Mini

new brands uncumbered by legacy can embrace

sold 3 million units in three days. But that was a

more quickly and effectively than anyone – means

whole three months ago: gadget-blogs are now

that new brands are often more trusted or even

abuzz with news of Panasonic’s Ultra-HD 4K

respected than their familiar, historied counterparts.

tablet, announced at CES in January 2013. Or

On top of that, the usual risk associated with trying

Samsung’s prototype smartphone with a

the new is now close to zero, thanks to F-FACTOR

flexible screen. Or the Huawei Ascend Mate

recommendations and the TRANSPARENCY

6.1-inch phablet. And on and on it goes.

TRIUMPH of countless reviews.


VIRGIN CONSUMERS

experiment with the new products and services

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2. EXPERIENCED VIRGINS Why even first timers have high standards

While VIRGIN CONSUMERS might be unfamiliar with a specific new product, brand or sector, they aren’t clueless or naïve. Au contraire: years of immersion in consumer societies means that even VIRGIN CONSUMERS are well versed in consumerism at large*. That means previous Trend Briefings relating to changing consumer expectations and attitudes still apply: VIRGINS know good service – or even better, SERVILE BRANDS – when they see them. And it should go without saying that they expect FULL FRONTAL transparency – on ethics, business process, even financials – from brands, and will embrace a GENERATION G(ENEROSITY) approach to giving back to society.

EMERGING VIRGINS The exception is some VIRGIN CONSUMERS in emerging markets, who may be truly new (or nearly new) to many aspects of consumerism. According to Ernst & Young, 1 billion people in emerging market cities are set to join the global consuming class – defined as those with a disposable income of USD 3,600 a year – by 2025. We could (and will!) dedicate a whole Trend Briefing to these EMERGING VIRGINS: in the meantime there will be much more about them in our upcoming Asia-Pacific Trend Report and South & Central America Trend Report.


VIRGIN CONSUMERS

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NEXT

For brands, how to think like a virgin

Seducing a VIRGIN means adopting a VIRGIN mindset (enough innuendo yet? ;-) Anyone can do it, but it obviously comes easier to VIRGIN BRANDS: start-ups unencumbered by the weight of old ways. But of course even established brands* can always think like a VIRGIN. * As with every trend, think in terms of ‘as well’ rather than ‘all’. Are all consumers VIRGINS, all of the time? Of course not. Will brands need to constantly adopt a virgin mindset? No. The inevitable countertrend means there will forever be a time and a place for established brands that deliver the same heritage product.


VIRGIN CONSUMERS

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The key to adopting a VIRGIN mindset:

#1 Keep it simple: Cast off industry convention and (if you’re an established brand) previous product iterations, and reimagine your product from the ground up, so that it makes sense for the way consumers live now, and is intuitive to use right out of the box. See how VIRGIN BRANDS Lytro made photography effortlessly simple for VIRGINS by releasing a camera that could focus after taking the shots. Or learn from Nest, who made thermostats intuitive, sexy and sustainable. 2012 saw big brands thinking like VIRGINS, too: witness the Nike+ Fuelband, an end-to-end service – including wearable device and online platform – that finally made tracking activity through the day easy. While for Microsoft, ripping up two decades of user experience and pivoting to a touch-led tile interface in Windows 8, meant creating an interface that caters to VIRGIN CONSUMERS.


VIRGIN CONSUMERS

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#2 Explain your brand:

Think campaigns that answer foundational questions: who are you? What makes you different? What does your brand say about those consumers who choose it? This is a must for VIRGIN BRANDS, who are new to all consumers: see how new Welsh jeans brand Hiut Denim, launched in March 2012, used the ‘Story’ section of its website – and its ‘Our town is making jeans again’ message – to link itself to the history and heritage of jeans making in Cardigan, Wales. Brand explaining is of course crucial for established brands looking to EMERGING VIRGINS, too: see how Volkswagen connected with VIRGINS in China with no prior experience of the VW brand, with a website for its Phaeton luxury vehicle that explained VW’s manufacturing heritage and its ties to the Saxony region of Germany.


VIRGIN CONSUMERS

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#3 Don’t ask for commitment: Where once VIRGINS may have wanted a long-term relationship, now many would prefer a one-night stand ;-) Indulge the joy VIRGINS take in playing the field by streaming and renting them products instead of selling. Learn from examples such as designer fashion rental platform thesixosix, or established brands like BMW’s DriveNow short-term car rental initiative, and think in terms of how to give VIRGINS access to your product, rather than just selling it to them.

In short, whether you’re a startup or a heritage brand, remember: as NEWISM pushes consumerism to light speed, you simply have to start mirroring the

VIRGIN mindset in your own thinking if you want to stand a chance with many consumers.

But however you cater to VIRGIN CONSUMERS, remember: make it special. It’s their first time ;-) And if it’s your first time reading our Trend Briefings, please make sure you subscribe.


VIRGIN CONSUMERS

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ASIA PACIFIC TREND REPORT

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SOUTH & CENTRAL AMERICA TREND REPORT

Compiled by trendwatching.com’s Asia Pacific office (based in Singapore).

Compiled by trendwatching.com’s South & Central America office (based in São Paulo).

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