The emerging tide of cultural change – A Deep Dive Helen King, Consumer Insight & Innovation November 2014 Growing the success of Irish food & horticulture © Bord Bia 1 How we’ve got here 1 EXPLORE Explore the drivers of cultural change 2 DEFINE Define the framework of emerging cultural themes 3 DEEP DIVE Delve into the richness of key themes Where we are at the moment Output from previous two phases 2 How we approached our challenge OUR QUESTION: Can we add depth of meaning and richness to the Dynamic Identities and Creative Confidence themes? ? OUR APPROACH: A week long online forum to uncover powerful consumer truths in the moment with a group of 8 respondents from Dublin and Cork. We’ve asked them to respond to questions digging into the Dynamic Identities and Creative Confidence shifts to help us immerse and understand their world better. 3 The Era of New Realism © Bord Bia 4 From Indulgence to A New Realism Era of Indulgence Recession Consumer A New Realism Sensibility Exuberance Anxiety Vigilance Ambition Trading Up Economising Responsibility Mindset Bullish Sober Resourceful Passion Accumulation Frugality Prioritisation Orientation Self-expression Self-preservation Connection 5 The last 12 months… Economic consolidation Ongoing distrust in institutions 6 Our framework of cultural layers will allow us to explore the cultural shifts in Ireland more granularly Economic definition of identity Prosperity and growth became a new focus for all, entering the personal and national consciousness Years of self-doubt The financial crisis put everything on hold. Double- and triple-dips meant no clear goals for most Re-adjusting As things go on, consumers re-think their goals and habits, and re-align the values they live by Self-made confidence Once set for the long haul, consumers feel like they are again in control of their choices 7 Cultural change is driving the evolution of Irish Identity Cultural Diversity Fear of the Unknown Traditional Irish Values Modern and forward facing society New Normal Desire to Indulge New Opportunities Ghosts of the Past 8 The “Irish Identity” has evolved since the Celtic Tiger years © Bord Bia 9 The backlash against the consumerism of the Celtic tiger years has helped shaping a new Ireland 2008 2014 10 As the level of trust in institutions remains low, local communities are ever more important in rebuilding confidence LOCAL COMMUNITY BIG INSTITUTIONS Faceless Arrogant Technocratic Greedy Unreliable Dangerous Opaque Single-minded “I believe I know someone I could rely on in time of need” OECD BETTER LIFE INDEX 2014 89% 95% Global Average Ireland Well-known Welcoming Human Generous Timeless Harmless Transparent Caring 11 Irish people feel more in control of their life again and approach future uncertainties with a more positive attitude Stabilised economy and the renewed possibility to project into future Over three-quarters of Irish consumers agree “we should focus more on the future rather than concerning ourselves with what has happened in the past” Euromonitor 2013 Having weathered the storm means feeling able to survive anything “Be as self-reliant as possible will better increase chances of succeeding in today's world” Global MONITOR 2012 56% 66% Global Average Ireland 12 And a modern Irish identity is slowly forming through diverse cultural influences, but at the same time still needs to deal with its fear of the “unknown” Less racism Less quaintness New possibilities A brighter future? Integrating Europe New ways to do things Total Irish migration 2012-2013 87,100 89,000 52,700 55,900 2012 201 3 Immigration Emigration Source: www.cso.ie 13 In these times of change, holding on to Irish traditions becomes more important, and technology increasingly facilitates this Expansion Growth Opportunities Isolation, distance, selfishness Technology Tradition Family Roots The Irish model Glenda Gilson broadcasted by webcam her wedding for all those friends and family that could not attend the event 14 The evolution of the Irish identity provides brands with new connection points Reciprocity and shared purpose are growing values in the current economy Self-reliance and positive attitude are the best way to adapt and cope in precarious times As many people move in and out of the country, brand new Irish rituals form from the intertwining of different cultures Leveraging technology is the best way to maintain and renew old traditions 15 Irish consumers are regaining confidence and positively leverage their “Irishness” © Bord Bia 16 What’s important to our Irish consumers Savvy consumers, looking for indulgences again ‘Everyday high quality’ makes the difference Solving the tension between traditional and modern Ireland Customers support companies promoting true Irishness Micro entrepreneurs questioning traditional measures of success 17 Having experienced the Celtic Tiger days, consumers have emerged cautious but savvy, looking for indulgences again Situation Crisis and turmoil Cruising in stable times Booming growth Need Safety Normality Status Focus Basic Necessities Small Indulgences Luxuries The KBC Ireland/ESRI Consumer Sentiment Index has reached its highest level since June 2007 and as a result some predict the return of the “feel-good-factor” to the Irish economy, as ½ of the Irish consumers are planning to take a holiday abroad during the year and ¼ are planning to purchase a new car. YOU ARE HERE Euromonitor 2014 18 This tension in consumers’ lives becomes an opportunity for brands The desire to remain prudent about your financial situation The need to indulge and feel good about yourself 19 Brands tapping into this The supper clubs of Dublin are making the most of local produce, expert knowledge and a newfound taste for an experience out of the ordinary, without breaking the bank. Urban adventure races are increasingly popular among people that want to feel a bit adventurous without leaving the country. Companies like The Lough Derg Monsters offer grueling courses of kayaking, cycling and running all around Ireland. “Restaurants are sprouting like poppies through the cracks… the flow of pub euro into restaurants, with people much more likely now to spend an evening around a table than on a bar stool” Euromonitor Country Ireland has established its own Thank You Day that encourages people to take stock of what they’ve got and be grateful for the small things that make their life great Pulse 2013 20 Opportunity for Irish Brands As consumers have overcome the recession and reached an economic plateau, how can Irish brands offer them small indulgences that liven up their everyday without breaking their bank? 21 The ‘everyday high quality’ is what makes the difference When able to plan and see things coming, overly cheap products feel like a false economy. High value feels like a ‘real’ saving when it presents higher: • • • Durability (saving over time of use) Intensity (saving over number of uses) Recognition (saving on emotional cost of doubt one’s choice) Volkswagen and Supervalu were named most reputable brands in Ireland in 2014 by the annual RepTalk survey, recognising their ‘reliable quality’. Business & Leadership 2014 22 This tension in consumers’ lives becomes an opportunity for brands The desire to acquire high quality products The need to budget and get the best deals 23 Brands tapping into this Gillette touches a nerve with savvy consumers in Ireland by promising long lasting blades to appeal to the desire of many consumers for prestigious but affordable consumption. Cheap wetsuits from Lidl and Aldi have encouraged more youngsters to buy wetsuits to swim in Dublin’s canals. “We are swimming in the canal for the summer because we don’t have the money for the pool. This is basically our pool” Country pulse 2014 drinkaware.ie and HAILO celebrated St. Patrick’s Festivities with a campaign to get people home safely, by treating some lucky Dublin passengers to Hailo taxi credit. The campaign aimed at making the most of the St. Patrick’s festivities, while ensuring they get home safely. 24 Opportunity for Irish Brands With savvy consumers making increasingly smart choices, how can we stand out and offer small, affordable indulgences? 25 Customers proudly support local and international companies promoting true Irishness Strength in numbers: • • • • Consumers want to know they are part cared for, not taken advantage of They want to help nurture back their environment to its healthiest They want to unite in celebration, not fight in competition They want reassurance that what they have is good Irish products, and that Ireland produces outstanding products 26 The tension in Irish consumers’ lives The desire to support local producers and shops The need to choose the most convenient solution in the market 27 Brands tapping into this The Bru company was established to offer local people with a greater choice in craft beers, emphasizing Irish premium quality, craft and tradition. “Single estate milks” – milk produced by a single farm – are a new growth area in Irish food. They’re the non-homogenised alternative to milk from the large agri-giants, that promote a closer connection to the Irish land. Brands like Coca Cola and Cully & Sully tapping into Irish pride and Irish identity – this is the special edition coke can in Irish green, labelled “Classic Irish” and the Cully & Sully’s Irish Stew “good, honest & tasty like mum’s meals” 28 Opportunity for Irish Brands As Irish people highly regard their local identity, how can we offer products that reflect their desire to celebrate modern Irishness in every aspect of life? 29 New businesses and brands solve the tension between traditional and modern Ireland, defining a new, creative and crafty Irish identity • Need for normality • Everyday quality • Irishness and local community Excitement over new things opening up potential for ‘smarter’ spending, turning a page, re-invention Present modern products in an Irish way OR Present Irish products in a modern way 30 Addressing this tension in consumers lives creates opportunities for brands The desire to hold on to traditions, using the past as guidance The need to renew and reinvent, to look forward and embrace change 31 Brands tapping into this “Young businesses like Roasted Brown in Dublin centre on a certain traditionalism: widesmiles hospitality, locally-sourced food and an emphasis on sociability and community. It’s a thoroughly modern village mentality” Euromonitor 2014 Writer’s tears links Irish traditional and famous Irish authors to whiskey – this product targets younger consumers who want to nurture the enjoyment of drinking whiskey whilst also gaining wisdom and connecting with local traditions 32 Opportunity for Irish Brands As the Irish identity evolves, how can we blend together its traditional roots with its emerging modern representations? 33 Creative micro entrepreneurs are thriving and questioning traditional measures of success “Idle hands are the devil’s workshop” • • • • • Pride at being productive Being part of the change they want to see in the world Steeped in the hope that what goes around comes around Tired and suspicious of one-way processes from producer to consumer True emotional benefits are built, nurtured, developed – not bought! “I would be happier if I owned more material possessions” According to Global MONITOR 2012 40% 20% Global Average Ireland 34 A tension in the lives of Irish consumers turns into an opportunity The desire to experiment, break old conventions and explore new ways of living The need to find a place in society and define new measures of success 35 Brands tapping into this The Bernard Shaw pub in Dublin offers local entrepreneurs a platform to showcase their art, while offering boot sales, music nights, and amazing food Love the Lanes is an initiative from Dublin County Council to brighten up the streets of Dublin by involving people to submit their proposals for creative intervention Fennelly’s is an independent contemporary space in Kilkenny offering new immersive experiences like joint food-andfilm events 36 Opportunity for Irish Brands As young entrepreneurs become the voice of an evolving Ireland, how can we involve them to develop the country’s emerging identity together? 37 Implications for Irish Food Brands © Bord Bia 38 The evolving Irish identity is opening up new opportunities for brands As consumers have overcome the recession and reached an economic plateau, we should offer them new and exciting products that are going to live up to their expectations without breaking their bank As the savvy consumer attitude is here to stay, in the future we should offer small affordable indulgences to solve the desire for high quality products with a limited budget As Irish people proudly live and breath their heritage, we should make sure we focus on celebrating Irishness in every aspect of their everyday life 39 The evolving Irish identity is opening up new opportunities for brands As the Irish identity is constantly evolving we should represent every face of it, blending together it’s traditional roots and its modern transformation As young entrepreneurs are the driving force and the voice of the changing Ireland we should involve them more to develop together the new image of the country 40 But Irish brands need to create better, more meaningful connections with their consumers How can Irish brands build trustful and transparent relationships with their customers and their increasingly important local communities? How can Irish brands cater better to the cultural diversity of Modern Ireland? What are the best ways to celebrate the different influences? How can Irish brands help consumers bridging traditional and modern Ireland, and actively shape the new Irish identity? How can Irish brands remain relevant to both younger and older target audiences, and actively support the formation of a young, modern Irish identity? 41 Thank you! Helen King, Consumer Insight & Innovation Growing the success of Irish food & horticulture © Bord Bia 42