TrendSights Analysis
2020: NextGeneration Shopping
Consumer-centric business models run through technological
innovation
CS2012TS
August 2020
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Reproduction of part or all of this contents without permission is prohibited.
Executive summary
Social media and smart phone adoption are key to digitalization of shopping
Trend drivers
How?
Innovation implications
 Personalization – Brands are using data and behavioral
analytics to understand consumer behavior to provide quality
engagement, customized to each consumer.
 Quality and convenience – One of the drivers is the search for
experiences. Since consumers are also time-poor, this trend is
about offering speedy engagement with consumers but within
their busy lifestyles.
 Responsible innovation – Innovation should be consumercentric and provide quality engagement and improve shopping
experience.
Why?
 Social media – Consumers have expanded their use of social
media, with it now covering activities from dating to shopping.
As a result, businesses can translate this into sales and
consumer loyalty.
 Smartphone adoption – Technology can be integrated in
physical stores and at-home into the shopping experience. This
is especially key in emerging markets.
 Experience-led – Consumers look for at-home and in-store
experiences personalized to them
Consumer targets
Who?
 Millennials are digital natives in most cases and so they are
looking for products and services that can be integrated into
this lifestyle.
TrendSights Analysis 2020: Next-Generation Shopping
What?
Defining the trend
Retail has become digitized and integrated various channels in
order to create a more immersive experience for consumers. This
trend includes bricks-and-mortar retailers, e-commerce, mcommerce, s-commerce, and how these platforms can interact
with one another to create an experience for consumers, allow for
more shopping occasions, and provide brands and retailers with
consumer analytics in order to better serve consumers and
customize options.
 In emerging markets consumers are adopting technologies at a
fast rate and are more open to innovation than in developed
markets.
2
TrendSights Analysis 2020: Next-Generation Shopping
The trend is led by consumer behavior and lifestyles
• 59% of global consumers say they are interested in products that are trending on social media1.
• Social media is where consumers can keep track of trends, express themselves and communicate with their communities –
all valuable information that can be harnessed by brands.
• 23% of global consumers say they intend to spend more time shopping for groceries online2.
Groceries
becoming an
online trend
• E-commerce continues to evolve and gain more mainstream appeal – the pandemic has increased the interest among
consumers in safe and convenient shopping options for everyday items.
• 91% of global consumers say they are interested in products that save them time and effort1.
Time-poor and
convenience
seeking
consumers
TrendSights Analysis 2020: Next-Generation Shopping
Hyper-connected
consumers
• Convenience remains a key priority for consumers and technological innovation can personalize and better serve
consumers' needs.
Source: [1] GlobalData 2019 Q3 global consumer survey, [2] COVID19 Recovery Tracker Survey Week 2
3
Contents
• Trend Snapshot
• Trend Analysis
• What?
• Why?
• Who?
• How?
• Future Implications
• Appendix
4
Trend Snapshot
Next-Generation Shopping is part of the Smart & Connected mega-trend
This trend reflects the hyper-connected world
Trend Snapshot
What?
Why?
Who?
How?
What Next?
The dynamics giving shape to the global consumer marketplace can be found in these eight mega-trends
Sustainability & Ethics
Mounting awareness and concern surround the scale,
complexity, and interdependence of shared social and
environmental challenges globally
Comfort & Uncertainty
Consumers value safety, tradition, simplicity, and
reassurance due to rising stress and uncertainty in their
lives and the world around them
Health & Wellness
People of all ages are more proactively addressing their
health in a more holistic and personalized manner
Individualism & Expression
Values emphasizing individuality and self-expression guide
confident and empowered modern consumers
Sensory & Indulgence
The driving force behind continually higher expectations of
quality, variety, and immersive "consumption experiences"
Easy & Affordable
Time and money are perceived to be the great scarcities of
modern life, and consumers are searching for ways to
maximize these limited personal resources
Smart & Connected (Digitalization)
In a hyper-connected, technology-enabled society,
consumers seamlessly integrate the use of multiple
technologies into their lives and buying behavior
Evolving Landscapes (Demographics)
The underlying and mostly dependable socio-demographic
and -economic trends impacting consumer societies
TrendSights Analysis 2020: Next-Generation Shopping
GlobalData's TrendSights framework recognizes that consumer behavior is best interpreted via an organized "trend hierarchy," whereby each overarching mega-trend is comprised
of a number of trends. This is conveyed by the visualization presented on the following slide. Below is a synopsis of the eight mega-trends that are the driving force of change
across the FMCG industry.
6
Next Generation Shopping is at the intersection of two trends
Next-Generation Shopping brings together Smart & Connected and Easy & Affordable
Trend Snapshot
What?
Why?
Who?
How?
What Next?
Sustainability & Ethics
Comfort & Uncertainty
Sensory & Indulgence
Easy & Affordable
Smart & Connected
Evolving Landscapes
TrendSights Analysis 2020: Next-Generation Shopping
Mega-trends:
Individualism & Expression
Health & Wellness
7
This trend is a blend of business models and digitalization
The trend is driven by convenience and digitalization
Trend Snapshot
What?
Why?
Next-Generation Shopping is shown in the following business models:
Consumers most influenced by the Next-Generation Shopping trend are likely to be:
Tech-savvy – A key feature of the trend is the integration of technology to enhance the shopping
experience. Early adopters of technology are likely to want to experiment with new functions in-store and
online.
Informed – This trend forces brands and retailers to be more transparent in their offerings whether it be in
smart packaging, or sustainable value chains. With so much choice, consumers are able to inform
themselves and only choose the right product for them.
Time-poor – One way of enhancing the customer experience is by increasing efficiency for busy consumers.
Click-and-collect and home delivery provide convenient shopping solutions.
How?
What Next?
Next-Generation Shopping is part of the Smart & Connected mega-trend
TrendSights Analysis 2020: Next-Generation Shopping
Digital-first brands – Digital stores are not prohibitive and allow any small brands to set up shop and sell
directly to consumers, meaning shoppers do not need to go through a retailer.
Retail going digital – Retailers looking to offer complementary services online to increase touch points with
the consumer.
Smart home – Smart appliances can track purchases and order directly from e-commerce for consumers.
In-store experience – Consumers have heightened expectations of what retail can offer, particularly in
terms of options integrated into their personal devices. Retailers need to give consumers a reason to enter
physical stores, whether it be through customer experience, personalization, or innovation.
Who?
8
The trend balances drivers and inhibitors
Security and privacy continue to be concerns, but consumers are balancing them with the positives in this trend
Trend Snapshot
What?
Why?
• Security and privacy – As long as brands and e-commerce platforms
continue to use data analytics to track consumer preferences and
spending, consumers will be wary and suspicious of innovation in
shopping.
• Accessibility – Cash-free society may have many benefits, but it still
prevents many people from accessing the consumer market (consumers
who are bank-less, which is quite common in many nations, and those who
work in the informal economy).
• Digital overload – Consumers also crave human connection and detoxing
from social media and digital lifestyles. In a rush to innovate or digitalize,
brands and services need to make sure the enhancements are not
upgrades just to compete but rather to improve the consumer experience
and engagement.
How?
What Next?
Drivers
• At-home lifestyle – Due to lockdowns, many products and services have pivoted to
at-home offerings. While the situation is not permanent, the new behaviors are
likely to be long-lasting and consumers will come to expect services that are offered
in the home.
• Experiential consumer – As so much happens online, consumers want in-store
experiences to be memorable and personalized.
• Social media – Consumers – particular members of younger, more digital
generations – use social media for more than just connecting with each other. It has
become a marketplace with access to influencers and brands that are big and small,
which means consumers have more choice than ever before.
• Smartphone adoption – As more consumers are gaining access to Internet and
smart phones, the opportunity for a hyper-connected shopping experience
becomes increasingly more feasible.
TrendSights Analysis 2020: Next-Generation Shopping
Inhibitors
Who?
• New consumers and markets – Digitalization of shopping means increased
accessibility to new consumer groups and developing markets. These groups are
open to innovation and with less development, it means there are opportunities for
new trends and behaviors to develop.
9
An empowered consumer drives this trend
This trend intersects the consumer-centric model with technological innovation
Trend Snapshot
What?
Why?
Who?
How?
What Next?
Dimensions: key characteristics of the Next-Generation Shopping trend
Transparency – Consumers are informed and want to know about the products they buy.
Transparency is key for consumers in purchase decisions and trusting a brand.
Constant Evolution – Because so much of this trend is based in technology, it is changing everyday
as brands try to offer increasingly unique and innovative experiences and shopping solutions.
Empowered
consumers
–
Consumers have access to so
much choice and information to
be discerning in their choices.
Direct to consumer (D2C) –
Consumers can now bypass more
easily than ever traditional
gatekeepers and purchase any
brand online directly.
Cause
Cause
Action
Action
Source: Images from Shutterstock
Consumer-centric approach – It
is more than a price war, it is
about providing a service that is
centered on the consumer in
order to be the consumer's first
choice.
TrendSights Analysis 2020: Next-Generation Shopping
Experience – The buying experience is more important than ever and this influences purchase
decisions in all categories.
Retail experience – Retailers
know they are competing with
D2C and so they must enhance
the customer experience in-store
with convenience, innovation,
technology, and service.
10
Trend Analysis
Relevance of trends by sector
Food and personal care are the most relevant sectors to this trend as consumers often prioritize personalization and experiences in these categories
Trend Snapshot
What?
Why?
Who?
Personal care
High relevance – technology,
personalization, and AI have led to massive
changes in personal care, allowing for instore and online unique experiences in
personal care.
Alcoholic drinks
Medium relevance – for consumers looking
to cut back on booze, apps, and labeling can
help.
What Next?
Non-alcoholic drinks
Medium relevance – for health
conscious consumers, smart labeling
or health apps can help consumers
track their intake of sugars/calories.
Smart &
Connected
Household care
Medium relevance – new shopping
touch points for "essentials" such as
toilet roll and washing machine pod
subscriptions, this sector is
increasingly part of the trend.
Tobacco and e-cigarettes
Low relevance – due to regulations
and taxation in this category, this
trend does not apply here.
TrendSights Analysis 2020: Next-Generation Shopping
Food
High relevance – smart labeling for health
and ingredients, experiential tastes and a
globalized world thanks to digitalization
offers more variety and experiences with
food for consumers.
How?
Pet care
Medium relevance – while normally pet
care isn't linked to innovation, consumers
continue to care about their pets like family
and new products and services tailored to
pet owners are being introduced.
12
Relevance of trends by sector
Retail, foodservice, and packaging are consumer-facing and service-oriented and so this is a key area for innovation
Trend Snapshot
What?
Why?
Who?
How?
What Next?
Foodservice
Packaging
High relevance – this is the most important
facet of Next-Generation Shopping because
this is where the changes are being seen in
shopping habits. Whether it be in a
physical bricks-and-mortar store or through
e-commerce, the expectations for the retail
experience are to be extremely consumercentric. The ideal retail experience will help
consumers easily find the products they
need, but also offer an experience to
encourage more shopping and to try new
products. With so many options, especially
D2C, retailers have the increased pressure
of competing with brands that can offer a
seamless direct to consumer product.
Retailers must provide the experience for
the next generation shopper.
High relevance –
in foodservice,
consumers are looking for a delicious but
also sanitary and safe eating experience
thanks to the global pandemic. As a result,
digital tools and services have been
developed and adjusted for a more
hesitant and cautious foodservice patron.
Full transparency and innovation will be
expected of foodservice going forward in a
time of social distancing and sterilized
society.
High relevance – this is often where
consumers have direct access to smart
technology, in the forms of QR codes or
smart packaging. With consumers always
connected, incorporated smart packaging
with their personal smartphone devices is
an easy way to build an experience,
engagement and collect data on consumer
behavior. This is likely to continue to
improve and, as consumers look for
contactless shopping, smart packaging will
be key for those consumers wanting to
protect themselves.
TrendSights Analysis 2020: Next-Generation Shopping
Retail
13
Consumers spending more time shopping online
Personal care is the top category in which consumers say they are spending more time shopping online
Trend Snapshot
What?
Why?
Who?
23%
22%
21%
Household cleaning
20%
Other food products
Consumers are migrating towards online shopping, influenced by the risk of
coronavirus in stores and the convenience that comes with online
shopping. This mode of shopping is continuing to become more
mainstream in all categories.
While clothing and footwear has always been major in e-commerce, the
pandemic has led consumers looking for a wardrobe change, even while in
quarantine, to consider shopping online for clothing. And thanks to
innovations in sizing technology, consumers can be more confident that
their items will fit.
16%
Dairy food products
15%
Juices and squash
15%
Soft drinks
15%
White milk
15%
Dairy beverages or liquids
14%
Plant-based dairy alternatives
12%
Source: [1] COVID19 Recovery Tracker Survey Week 2
In household cleaning, buying more affordable options in large quantities
can give consumers the peace of mind that they will have the products on
hand when they need them and will not have to worry about carrying them
home.
Alcohol has been particularly popular in subscription boxes as it creates an
entertaining experience as well as giving consumers the opportunity to
experiment with new flavors.
TrendSights Analysis 2020: Next-Generation Shopping
Personal care
Alcoholic beverages
What Next?
Shopping online save consumers time and allow for easy price
comparisons
Global by category: consumers who say they are spending slightly/significantly more time
shopping online since outbreak of COVID-191
Clothing and footwear
How?
Personal care has shown the most interest in online shopping, with
subscription boxes being a key driver. Consumers are able to test new
products and new forms of AI technology and smart mirrors mean that
consumers can find customized solutions in beauty and grooming.
14
Food: high relevance
Food is an "experience" and there are opportunities to innovate this experience as well as emphasizing convenience
Trend Snapshot
What?
High relevance in
food
Because consumers are more informed and can
access information from various channels before
adding to their virtual or physical shopping cart,
they expect transparency and customized
products for their needs. Consumers can easily
scan e-commerce sites to compare prices and food
quality, as well as all available offerings from
infinite number of brands.
For food retailers in the physical space, creating a
shopping experience that is both convenient and
efficient for some, but also experiential and
unique, will bring in customers who might be
looking for both or one or the other.
Who?
This trend is relevant for both those who are looking for convenience and/or
artisanal
Food culture has never been more experiential and consumers have never been
more discerning. More than half of global consumers consider themselves a
foodie and consider craft/artisanal food/drinks to be of higher quality. As a
result, brands and retailers know that the weekly food shop is not always about
buying the best value for money. Rather, consumers have the expectation of an
experience or a product that is tailored to their particular needs and lifestyle.
There is an emphasis on provenance and quality. Features such as smart labeling
so consumers can follow the "story" of their food, or opportunities to customize
their favorite products to fit within their lifestyle whether in terms of ethics or
diet (which are often intertwined). At the same time, consumers are also timepoor and convenience-minded. Next-Generation Shopping allows for technology
not only to help inform consumers about products, but also to be integrated into
their lifestyles.
55%
54%
of global consumers consider
craft/artisanal food/drinks to be
higher quality1.
of global consumers consider
themselves a "foodie"1.
Source: [1] GlobalData 2019 Q4 global consumer survey; [2] COVID19 Recovery Tracker Survey Week 2
How?
What Next?
COVID-19's impact
COVID-19 has changed the way that consumers eat and
purchase foods. For example, 50% of global consumers
say that they prefer packaged/sealed food and drinks to
fresh/freshly prepared alternatives2.
COVID-19 has led consumers to re-think priorities.
There is an emphasis on sealed packaging due to
concerns over hygiene. This may turn out to be more
important than shopping at waste-free shops with
refillable containers.
45% of global consumers also said that they have
changed the types of groceries I typically buy.2
Behavior such as panic-buying has led consumers to buy
more non-perishables as they last longer on the shelves,
but have also been through processes that reduce the
risk of contagion. Some consumer habits will be hard to
go back to the way they were before the pandemic. The
concern about packaging and safety will likely remain
for a while and so, long-term, brands need to find ways
to ensure consumers have peace of mind, but also can
fulfil the consumer need to experience the food they
enjoy.
TrendSights Analysis 2020: Next-Generation Shopping
Next-Generation Shopping has a high relevance in
food not only because it represents a large portion
of a consumer's regular spending, but also
because, for many people, it can be linked to an
integral part of their lifestyle and identity. As a
result, the shopping experience is important for
consumers.
Why?
15
Personal care: high relevance
Applying this trend to personal care allows consumers to feel their products are made just for their needs
Trend Snapshot
What?
High relevance in
personal care
As a result, major brands/retailers are constantly
innovating. Natural personal care brand, Lush,
known for its sensory experiences in its stores,
launched in Tokyo in 2019 with a technological
and sensory experience. Consumers in-store can
use the Lush Lab app to scan items as they do their
shopping to learn about the product and trace its
provenance. There are also interactive multimedia
experiences for customers.
Technology not only creates the new shopping
experience, it helps design new products that are
customized. New products can utilize AI to come
up with customized solutions based on the
consumer's skincare needs.
Who?
How?
Innovation allows for "smarter" personal care products that offer customization
What Next?
COVID-19's impact
Personal care has always been linked to technology and innovation as brands often
endeavor have always claimed how its solutions are scientifically engineered for the
consumer. However, increasingly, the shopping experience is also expected to be
engineered for the consumer.
COVID-19 has forced consumers indoors but that
does not mean they want their skincare regimes
to end. In fact, this has been a perfect
opportunity for consumers to try new products
and experiment and they have been using online
63% of global consumers say that in beauty and grooming, they are influenced by how platforms to do so.
digitally smart the product is. Meanwhile, 85% say they are influenced by how tailored it
22% of global consumers say that they are
is to them.3
buying more personal care items online than
before due to COVID-192.
What this means to retailers and brands looking to design the shopping experience is
that consumers look not only at the formulation and customization of the product, but Going forward, brands and retailers need to treat
at in-store or online experiences that reflect the brand's quality and performance. This the internet not just as complementary to the incan be in the form of traceability of ingredients or technology used to show how the store experience, but rather as a key channel
products can be personalized to each consumer.
that expands their reach globally. And so the
online experience must be smart, personalized
Global: "What do you typically purchase online," 20191
and engaging.
67%
57%
Clothing/footwear
Holidays/travel
52%
Household products
47%
Beauty/grooming
Source: [1] GlobalData 2019 Q4 global consumer survey; [2] COVID19 Recovery Tracker Survey Week 1, [3] GlobalData 2018 Q3 global consumer survey
TrendSights Analysis 2020: Next-Generation Shopping
Personal care is, of course, personal. As a result,
the experience of the product and the purchase
decision is very personal as consumers expect
their beauty and grooming regime to reflect their
specific needs.
Why?
The fourth-most purchased category online is
beauty and grooming. There is interest in
buying online and innovation is showing how
the industry can reach consumers at home.
16
Alcoholic drinks: medium relevance
This category is evolving, bringing the pub or bar experience into the home
Trend Snapshot
What?
Medium relevance in
alcoholic drinks
One-fifth of global consumers' alcoholic purchase
decisions are always influenced by how enjoyable
and unique alcoholic beverages are. Since alcoholic
beverages are linked to leisure and socializing, it
makes sense that consumers make this a priority in
their choices. For brands, this means associating
their products with a particular lifestyle or
experience. That being said, trends such as wellness
and moderation and sustainability mean that at the
same time consumers expect alcohol companies to
also be able to fulfill these needs in packaging,
formulations and marketing.
Who?
How?
What Next?
Alcohol subscription services allow for personalization and experimentation
Thanks to trends such as at-home meal kits and subscription boxes in various categories, the alcohol category has evolved in terms of
occasions. Monthly personalized beer subscriptions and natural wine deliveries have also increased the variety of brands and alcoholic
beverages that consumers are exposed to. As a result, smaller and more niche brands have been successful thanks to social media
marketing and e-commerce. As a result of quarantines, the foodservice industry has been testing take-out cocktails and consumers are
recreating the bar and pub experiences through video meeting groups and at-home bar kits. The key point here is that enjoyment and a
unique experience are key to the category and so the future of shopping in this category will involve creating enjoyable experiences that
are also safe and personalized for a consumer who may be spending more time consuming alcohol in the home than before.
For smaller brands in particular, subscription boxes removes a lot of the barriers to entering the market. Since they do not have to go
through a retailer, which can be costly, they can promote themselves through their own subscription services or through partnerships
with other services to get directly into the hands of consumers.
Global: consumers who are always influenced by the following factors when choosing alcoholic drinks, 2018 1
9%
How the world around me is changing
17%
How familiar/trustworthy a product is
16%
How product aligns with my time/money constraints
15%
How well it is tailored to my personality
How digitally/smart product is
How environmentally/sustainable the product is
6%
9%
21%
How enjoyable/unique a product is
How it impacts my health and wellbeing
Source: [1] GlobalData 2018 Q3 global consumer survey
TrendSights Analysis 2020: Next-Generation Shopping
Many of the existing trends in other categories are
relevant in alcohol from direct-to-consumer to
sustainability and transparency. However, with
alcohol, a one-size-fits all analysis is not possible due
to laws and regulations that can change by country
or even within various regions. But this is also why
the Next-Generation Shopping trend is important
for alcohol – how can brands and retailers work
within some of the limitations of the category to still
bring that experience to consumers?
Why?
17%
17
Non-alcoholic drinks: medium relevance
As a regular purchase, non-alcoholic beverages need to provide convenient but also ethical purchase options that can be communicated with smart labeling
Trend Snapshot
What?
Medium relevance in
non-alcoholic drinks
In terms of hot drinks like tea or coffee, the at-home
café experience continues to evolve as brands
develop subscription services and experiential
services which are particularly relevant due to
lockdown.
Who?
How?
What Next?
This trend is particularly relevant to health-conscious consumers who want to know where their products originate
Non-alcoholic beverages is a broad category and so it encompasses many consumer trends and behaviors. As a regularly purchased
category – one third of consumers buy them once per week – convenience and accessibility are key. With the at-home lifestyle evolving
and consumers limiting their time outdoors, brands in categories like coffee or tea or carbonated drinks are offering products and
services that allow consumers to customize their drinks (SodaStream, for example) to create drinks that fit within their tastes but are
also in control of their sugar intake.
In particular, consumers closely monitor their non-alcoholic drinks as, unlike alcoholic drinks, they know they can find healthy options
and they look for functionality in addition to flavor and/or experience. While alcohol might brand an experience or lifestyle, nonalcoholic packaging is important to emphasize the provenance and freshness of ingredients as well as health benefits. This is where
smart labeling can come in which pushes these brands to be transparent in ingredients and health benefits. Packaging can be an
important tool in the product's narrative and for consumers who value this type of detail.
Daily
Global: how often do you shop for non-alcoholic beverages?,
20191
10%
I do not shop for these products/Someone else in
my household purchases them
26%
9%
Once a month
Once a week
16%
7%
Once every few months
Several times a week
Source: [1] GlobalData 2019 Q3 global consumer survey;
81%
TrendSights Analysis 2020: Next-Generation Shopping
One of the major changes in how non-alcoholic
beverages are being marketed is as a trendy and
unique alternative to alcohol, particularly for those
who want to limit or stop drinking alcohol. As a
result, there is the expectation that the brands can
offer not so much an alternative to alcohol, but
rather a unique drinking experience all on its own.
Consumers who are switching to these beverages
are likely interested in health and wellness and so
this is where smart labeling to trace ingredients, or
integrated into their smart watches or health apps is
vital.
Why?
of global consumers
say they pay
attention to the
ingredients in
food/drinks they
consumer1.
32%
18
Household care and tobacco and e-cigarettes: low relevance
While less relevant in household care and tobacco, consumers still express preferences in flavors and fragrances and so purchase options need to encourage trial
Trend Snapshot
What?
Low relevance in
household care
Low relevance in
tobacco and e-cigarettes
Thanks to varying legislation, it can be difficult
navigating the regulatory framework in each country.
Many of the innovation in shopping and consumer
behavior are difficult to apply to countries that might
have plain packaging legislation or limited access
points. E-commerce and harm reduction products
could be seen as opportunities going forward as a way
to continue to stay relevant with younger consumers
even as smoking rates drop.
Who?
While a functional product, the emotional aspect and "peace of mind"
cannot be underrated
Typically, at home essentials and cleaning products, might not have elicited
excitement among the average consumer. However, e-retailers such as
Amazon have offered automatic refills and "essential" packages that show how
these products can be part of digitalization of shopping and provide consumers
with peace of mind.
How?
What Next?
Global top three: "What type of fragrances do you
prefer in household cleaning products?", 20191
43%
33%
Refreshing
Floral/herbal
21%
21%
Calming
Fruity
Particularly thanks to COVID-19, essentials such as at-home hygiene and
household cleaning and of course toilet paper have been in high demand,
changing how consumers look at these products and their important value in
the household.
Low relevance due to restrictions
Due to regulations, tobacco brands have to be careful about marketing (in
particular, they need to avoid being seen as using flavored tobacco to appeal to
young people), but there are lots of opportunities for innovation in terms of
harm reduction such as e-cigarettes. As vaping offers many opportunities to try
out new flavors, like coffee pods for Keurig, brands can still adapt the category
to existing shopping trends such as subscription boxes. As consumers enjoy
experimenting with flavors, tobacco companies can also design new
experiences and sensory experiences to enhance the experience.
Source: [1] GlobalData 2019 Q4 global consumer survey;
Global top three: "Which flavors appeal to you in
smoking/smoking alternative products", 20191
58%
42%
27%
Tobacco
Menthol/Minty
Fruity
TrendSights Analysis 2020: Next-Generation Shopping
Household care might be less engaging than other
categories, but in this particular climate, these
products are very important. In fact, consumers are
quite opinionated about which fragrances they prefer
and these products are integral to defining a
consumer's home, especially while spending more
time indoors. While still in the early stages, there is
the opportunity for brands to connect with consumers
in a more experiential way, as well as offer new
shopping occasions such as subscription boxes.
Why?
19
Pet care: medium relevance
Consumers want products for their pets that reflect their digital lifestyles
Trend Snapshot
What?
Medium relevance in
pet care
Location trackers and live feeds at home also give
consumers peace of mind that their pets are safe
while they are away from home. In this sector there is
a wide range in types of consumers and their priorities
and so digitalization of the pet care shopping
experience can find ways to reach these consumers at
whichever is most convenient and offer products and
services that reflect the way they want to offer the
best health, food, and lifestyle for their pets.
Who?
How?
Convenience and consistency are needs that can be met with creative
shopping services
Pet owners are particular about what they feed their pets. They are influenced
by how personalized and also how convenient the product is. For pet owners,
subscription services are a key way to create consistency and loyalty in their pet
care purchases.
Over one-third of pet owners said they would be open to subscription services
for pet products and so the timing is key right now to market to these
consumers as their habits are evolving.
Global: "How influential are the following factors when
choosing products for your pets?"*, 20181
66%
62%
61%
What Next?
COVID-19's impact
Subscriptions for pet foods and products
became more relevant during lockdown as
consumers were panic-buying these products
for their pets. Going forward, it is expected that
subscription boxes or regular refills will be
popular as pet owners are likely to be
consistent in the type of dog food or cat litter
they purchase.
19%
of global pet owners
actively use a
subscription service for
pet products"1.
38%
TrendSights Analysis 2020: Next-Generation Shopping
Next-Generation Shopping is of medium relevance as
innovation continues to evolve in this category. Pet
owners look for products to reflect their lifestyles and
this doesn't end at pet care. This could be seen in
shopping local or for natural products. This can also be
shown in the way they shop. Convenience is often key
for consumers and so easier ways to shop and avoid
carrying large packages such as dog food or bedding
for small animals.
Why?
34%
How enjoyable or
unique product is
How digitally
advanced/smart a
product is
How well product is How well product fits
tailored to needs and within time/money
personality of my pet
constraints
*Respondents who say always/often
Source: [1] GlobalData 2018 Q3 global consumer survey, [2] GlobalData 2018 Q4 global consumer survey
of global pet owners
would consider using a
subscription-based
service for pet
products"1.
20
Foodservice: high relevance
COVID-19 has forced foodservice to re-evaluate their business models but also are seeing the benefit of direct delivery to better understand their customers
Trend Snapshot
What?
High relevance in
foodservice
The definition of foodservice has also evolved from
the basic pizza delivery. Instead, consumers can order
meal kits to still feel like they are cooking, can buy
from smaller, local places, and can get customized
options. This also allows smaller and local foodservice
restaurants a democratizing opportunity as they can
access the same platform as the big foodservice
operators.
Health and experimentation is also prevalent here.
Consumers want to be able to have transparent access
to ingredients. They are also always open to trying
new flavors from across the globe while still offering
familiar flavors. As a result, brands are looking to
provide authenticity and transparency in foodservice
and technology facilitates this engagement with
consumers.
Who?
How?
Digitalization allows foodservice operators to track consumer
preferences, personalize their offerings, and build brand loyalty
Foodservice has long been considered a people-first experience as a huge
portion of the industry relates to human interaction and customer service.
However, digitalization and some key foodservice leaders have found ways
to use technology to enhance the consumer experience. Cafés and QSRs
have apps to collect points which help build brand loyalty but also to track
flavor and product preferences in order to make customized
recommendations and offer discounts.
There has also been a pivot to more delivery and take-out options in all
levels of foodservice to appeal to the convenience trend. Coffee brands to
pizza to fine dining are offered for at-home enjoyment and brands either
develop their own unique system or use third party apps. Consumers have
so many options and recommendations at their fingertips.
Global: "How has COVID-19 impacted how often you eat the following
meals outside? Significantly less frequently than before"1
19%
24%
24%
Breakfast
Lunch
Dinner
Source: [1] COVID19 Recovery Tracker Survey Week 2
22%
What Next?
COVID-19's impact
Foodservice is perhaps the hardest hit area due to
COVID-19 as consumers have stayed in during
lockdown. Through the period, many foodservice
operators closed or re-evaluated their business model
through meal kits, at-home delivery, and maintaining
engagement on social media such as sharing recipes of
fan favorites. The hit has shown complacent operators
that the model is changing.
As consumers have become accustomed to the athome experience, will they feel the need to return to
foodservice, or prefer the convenience of staying on
the couch? Foodservice operators will need to figure
out how to stay afloat considering they will run under
capacity due to social distancing rules. In addition,
QSRs and cafés in business areas are suffering due to
consumers working from home, forcing high street
chains to also re-evaluate.
51%
TrendSights Analysis 2020: Next-Generation Shopping
Next-Generation Shopping is of high relevance to the
foodservice sector as a key strategy to build and
incentivize brand loyalty as well as to understand
consumer preferences and tastes.
Why?
Of global consumers say they will dine at
home instead of in restaurants once
pandemic period ends1.
Snack between
meals
21
Retail: high relevance
The pandemic has led consumers to look more toward online shopping than before
Trend Snapshot
What?
High relevance in
retail
Often, this trend is seen in how e-retailers provide
customized recommendations and track the
consumer journey through digital methods.
However, increasingly brands and retailers are
finding ways to track the consumer journey from
digital to bricks-and-mortar as a way to understand
the consumer decision-making process.
Retail also allows for real-time experimentation.
Globally, flagship stores test out new technology
and consumer engagement and can then gauge
the success of different innovations. Consumers
are still spending more money in bricks-andmortar locations than online, but online is still
often a key introduction point for the consumer.
As a result, physical stores need to build on the
expectation for a technological and consumercentric approach to fit consumer needs.
Who?
How?
Retailers need to find a mix between quality customer service, technology and
sustainability
Retailers have access to consumers at many more touch points than before. This could
be a blessing or a curse, since it is a race to ensure that at these touch points your
brand has more meaningful engagement than the competition. This is why retail is
where there are high levels of innovation to build engagement and experience for
consumers whether at home or in bricks-and-mortar locations.
What Next?
COVID-19's impact
COVID-19's impact cannot be overstated: it has
been disastrous for many retailers, particularly in
the fashion sector. There have been brands
declaring bankruptcy, massive layoffs, and a
complete overhaul of business models. One of the
key take-outs is that the fast fashion model is not
In addition, as with most sectors, sustainability is part of the discussion. Online may be foolproof and this sector has had to reckon with
convenient, but consumers are also aware that with this convenience comes at a cost not only its environmental impact, but also
to the environment as well as conditions for workers. Next-Generation Shopping in whether or not the business model can survive
retail should be able to incorporate technology as a way to offer more ethical services. crises. However, smaller boutiques have
benefited from increased interest in buying local
and supporting community businesses as they
pivot to offering more online services.
46% of global consumers say they will buy more online than in stores once
2
pandemic period ends .
For the larger corporations it has been a case of
1
re-evaluating online offers as well as reconfiguring
UK: balancing the convenience of online with sustainability
store layouts and making safety adjustments,
UK: "I think the packaging online
which take time and effort to implement on a
UK: "I would be willing to wait longer
orders come in is often unnecessary"
large scale. As consumers spend time shopping
for environmentally-friendly delivery"
online, particularly in fashion and footwear, the
opportunities for AI and innovation to personalize
offerings will be key to winning. Certain retailers
64%
79%
have already started doing this, but the pandemic
has pushed the more traditional retailers to do so
Agree/strongly agree
as well.
Agree/Strongly agree
Source: [1] GlobalData's 2020 E-Retail survey of 10,000 nationally representative UK online shoppers, [2] COVID19 Recovery Tracker Survey Week 2
TrendSights Analysis 2020: Next-Generation Shopping
The trend is of high relevance in retail as the sector
continues need to keep up with the latest
expectations from consumers of an experiential
and customized shopping experience.
Why?
22
Packaging: high relevance
Engagement, security, and transparency drive this trend in packaging
Trend Snapshot
What?
High relevance in
packaging
Global: "I am concerned about the safety of
the packaging of the products I purchase"1
13% 10%
21%
32%
Neither agree nor disagree /
Don't know
Somewhat agree
Who?
Packaging has to advance as shopping platforms do as well
Packaging must reflect the fact that shopping has become
increasingly digitalized. The industry has to keep up with features
such as contactless payments, e-commerce and at-home delivery and
cashier-less stores. Packaging can reflect the brand's narrative and
storytelling, the brand's ethics as well as the product's overall quality.
Consumers are discerning and look for brands that are personalized
and integrate easily into their lives. The packaging is an important
part of the shopping experience. Not only because of aesthetics, but
how consumers perceive the brand.
In addition, D2C trend on the rise among multinational brands means
these companies have to change their approach, cutting out the
middleman perhaps. As opposed to simply being concerned about
the packaging of each individual product, the supply-chain process
can be altered due to the fact that they will be responsible for
designing subscription boxes or packaged options. Not only that, but
consumers expect design and experience with D2C home boxes and
so this is an opportunity for brands to look to packaging experts as
the outside becomes just as important as the products on the inside.
How?
What Next?
COVID-19's impact
Due to health and safety concerns, the opportunity to
develop smart packaging is ripe. Consumers are
concerned about the safety of packaging and so scanfriendly packaging or QR codes can provide peace of
mind as to the hygiene and security of the packaging.
In addition, as consumers are becoming more
accustomed to click-and-collect shopping or delivery,
brands need to ensure the packaging is more robust
and also flexible to accommodate more products that
might have not been delivered before.
TrendSights Analysis 2020: Next-Generation Shopping
Innovative package design is of high relevance in NextGeneration Shopping as it can offer many answers to
common consumer questions based on trust and
transparency as well as build an engaging experience with
the consumer. Innovation in packaging can be easily
integrated into the Next-Generation Shopping trend as
consumers are already hyper-connected and, with
technology as simple as scanning a QR code, consumers
can learn about the product, enter a contest or play a
game, and even pay for the product with ease.
Why?
Somewhat disagree
Strongly agree
24%
Strongly disagree
Source: [1] COVID19 Recovery Tracker Survey Week 2,
Photo from Shutterstock
23
Consumers look for products and services that are convenient
In order to grow s-commerce, target consumers who are spending time on social media but not buying yet – studying these groups will help conversion rates
Trend Snapshot
What?
Reaching consumers where they are
Social media is key for this. While profiles
are a wealth of information on consumer
groups, there are a number of resources
such as direct advertising as well as
influencer marketing where consumers
can buy directly from the platform
through the Instagram store.
Social media, easily integrated into the
lives of consumers, easily integrates
advertising and it can be hard to
differentiate
the
content
from
advertising.
With so many accessible channels for
consumers,
the
efficiency
and
convenience factors are key competitive
advantage in this channel.
Who?
Global: "What best describes your shopping
behavior: products that are trending on social
media," 20191
I am interested,
and I actively buy
such products
24%
How?
What Next?
Global: "What best describes your shopping behavior:
products that save me time and effort," 20191
61%
35%
I am interested,
but do not actively
buy such products
30%
8%
I am not
interested, and do
not actively buy
such products
41%
59% of global consumers say they are interested in products that
are trending on social media
As consumers spend time on social media as part of the lockdown,
there are more opportunities to reach consumers on these platforms.
What cannot be ignored as well is that 41% of consumers are
interested in but do not actively buy products trending on social
media. This shows a developing trend of consumers who do their
browsing on social media channels but may not buy there yet.
Source: [1] GlobalData 2019 Q3 global consumer survey
I am interested, and I
actively buy such
products
I am interested, but do I am not interested, and
not actively buy such do not actively buy such
products
products
91% of global consumers say they are interested in products that save them
time and effort
This is the opportunity for brands to reach consumers who are looking for easy
solutions. This is why the increase in demand for essentials such as toilet paper
subscriptions (which the pandemic led) is an example of consumers looking to
avoid the usual supermarket shopping experience for many of their usual
items. While they say they are looking for products that save them time and
effort, they are also looking for services that can do the same.
TrendSights Analysis 2020: Next-Generation Shopping
Consumers are busy and have access to
so much information and brands know
that that it is best to understand
consumer touch points and be proactive
in finding their particular needs and
preferences where they are most active.
Why?
24
Consumers want trustworthy and convenient products
Opportunity in smart labeling for discerning consumers looking for health and transparency
Trend Snapshot
What?
Why?
Global: "My choice of food/drinks is influenced by the
source/origin of ingredients," 20191
Who?
How?
What Next?
Global: consumers who say they are always/often influenced by the following aspects/features,
20182
71%
How familiar/trustworthy it feels
68%
How well it is tailored to my needs/personality
68%
Impact on health and wellness
65%
How enjoyable/unique
64%
How ethical/socially responsible
Completely Completely
agree
disagree
Neither
agree nor
disagree
Somewhat
agree
Somewhat
disagree
50%
How digitally advanced/smart it is
44%
Choices are driven by how the world is changing around me
43%
The top factors that influence consumer purchase decisions are familiarity, convenience, and personalization
TrendSights Analysis 2020: Next-Generation Shopping
How well it aligns with time/money contraints
These are key features seen in the Next-Generation Shopping trend. Consumers care about the products they consume and their ingredients and so technology can fulfill this need. Consumers
look to brands for transparency, and digitalization and smart labeling help consumers build trust as brands are forced to be more transparent in the provenance of its products. In addition,
convenience continues to be key as brands are regularly looking for ways to streamline the consumer journey and to limit the number of steps needed to make a purchase. This leads well into the
third factor; personalization. Online tools and tracking can help brands and retailers track the consumer journey and provide tailored recommendations so that not only the consumer feels like
they have a customized recommendation, but it also simplifies the shopping experience.
Source: [1] GlobalData 2019 Q4 global consumer survey, [2] GlobalData 2018 Q4 global consumer survey
25
Consumers are changing the way they shop and pay
Subscription boxes are purchased and paid for online – while at the same time, we see the increase in consumer interest in living more cash-free – all of these behaviors show
how business models and payment programs influence each other
Trend Snapshot
What?
Why?
Who?
How?
What Next?
How interested are you in using subscription services for the following products2
28%
of global consumers agree that
they will pay for products or
services only with cards or mobile
phone instead of cash. 1
31%
23%
20%
24%
Food
New forms of payments or bringing
digital payments to the mainstream
means that the shopping experience
will be changed. Cash-less systems
remove the needs for tills or even
cashiers. Consumers could scan and
pay for a product at the shelf. This
could lead to brands better tracking
shopping behavior and integrating
recommendations and customized
offers.
29%
27%
9%
13%
Alcohol
Non-alcoholic
beverages
I am interested and actively use
16%
20%
18%
13%
13%
Beauty/grooming
Household
care/laundry
Pet products
Children's products
I don't currently use, but would consider using in the future
Subscription boxes have exploded in all categories in the last few years, but the quarantine measures globally have fast-tracked the mainstream
appeal
Food subscription boxes is the most commonly used by consumers currently, likely as the industry has been active for a number of years in the form
of meal kits for busy families and professionals. Now they have a greater variety of options, cuisines, and subscription types. Beauty and grooming is
in second place as subscription services let consumers experiment with new shades and palettes and are a lower cost way to test new products.
TrendSights Analysis 2020: Next-Generation Shopping
55%
The most interesting take-out is the future interest in trying subscription boxes. At 31%, the most promising category is in household care. This has
been growing in popularity as "essential" products such as toilet paper or laundry detergents are being offered in subscription services or automatic
refills through e-commerce sites. These types of service are less related to experimentation and experience and more about cost-saving and the
convenience benefits of having these delivered to consumer's door so they do not forget to restock.
Source: [1] COVID19 Recovery Tracker Survey Week 2, [2] GlobalData Global Consumer Survey 2018 Q4
26
Interest in the trend varies by generation
Millennials' purchasing power and digital lifestyles make them a leader in trendsetting
Trend Snapshot
Why?
Who?
How?
What Next?
Global: "What describes your shopping behavior?", products trending on social media, 2019 1
of global consumers who say they actively buy
products trending on social media also
actively buy products/services that save them
time and effort
27%
20%
35%
58%
50%
45%
42%
Deeper dive: By generation
23%
Gen X
82%
Millennials
78%
Gen Z
58%
Gen Z
76%
33%
35%
Gen Y
23%
Gen X
I am not interested, and do not actively buy such products
I am interested, and I actively buy such products
9%
Boomers
20%
4%
Silent Gen
I am interested, but do not actively buy such products
Millennials, like in the case of many trends, have been early adopters of social media shopping
TrendSights Analysis 2020: Next-Generation Shopping
78%
What?
Consumers, especially the younger generations like Millennials and Generation Z, are digital natives and so they are accustomed to the evolving landscape of consumer markets. As early
adopters, they experiment with new platforms and business models, which often leads to brands following their new behaviors. Millennials in particular are interested in products they buy
on social media as a way to save them time and effort. Social media shopping on Instagram, for example, where a consumer can see an influencer posting and click to buy, has allowed for
both smaller brands to thrive and big players to stay relevant among younger consumers. Overall, consumers who say they buy products on social media are looking for products that save
them time and effort. What this means is no matter the generation, consumers want offerings that are convenient and since social media is always in the consumers' back pocket for easy
access throughout the day, brands need to understand that consumers will increasingly use it as part of their shopping behavior. Currently Generation Z is behind Millennials in this trend,
but as they grow into the consumer class and have more agency, they will become the consumers that set the trend.
Source: [1] GlobalData Global Consumer Survey 2019 Q3
27
Regional view: health concerns and shopping intentions
Consumers globally are concerned about visiting shops during the pandemic and consumers are turning to e-commerce to assuage their concerns
Trend Snapshot
What?
Why?
Europe
17%
Asia
56%
MEA
62%
S.
America
40%
MEA
24%
Asia
33%
What Next?
Globally, consumers are unsure of the future of
retail, and this is shown in their concerns about
visiting stores and shopping outlets as they reopen.
To tackle these concerns, it is vital that retailers
continue to evolve the shopping experience to
provide consumers with peace of mind on the safety
and security measures.
This could be a new opportunity to implement new,
cash-free or more tech-savvy methods for shopping
that limits human interaction for hygienic purposes.
In Africa, mobile banking and payments are quite
common and China is a leading player in evolving
retail experience. Due to the changing conditions
under quarantine and the next phases as things reopen, concerned consumers could choose their
brand/retailers based on which means the cleanest
and safest experience.
In addition, consumers claim they intend to spend
more time shopping online for groceries. For those
consumers who would like to minimize their time in
supermarkets (which is often a weekly or multiple
times a week occurrence), online provides a safer
alternative. In developing nations, this could be seen
as the development of new e-commerce and
delivery platforms specializing in grocery delivery.
S.
America
28%
Source: [COVID19 Recovery Tracker Survey Week 2
TrendSights Analysis 2020: Next-Generation Shopping
Europe
33%
N.
America
62%
How?
Consumers who say they intend to spend
slightly/significantly more time shopping for groceries online
Consumers who say they are extremely/quite
concerned about visiting stores and shopping outlets
N.
America
30%
Who?
28
Global view: shopping behavior is driven by connectivity
By 2019, 73% of Internet users were in the developing world, an over 20 percentage point jump since 2008, showing the shift in connected consumers in these markets
Trend Snapshot
What?
Why?
Who?
How?
What Next?
By country: consumers who somewhat/strongly agree: "I will order grocery deliveries from online meal delivery services (e.g. Uber Eats) more often than before"1
India
Brazil
South
Africa
USA
57%
55%
54%
54%
34%
67%
UAE
Italy
UK
41%
41%
37%
29%
87%
56%
95%
63%
Sweden
24%
Germany
19%
14%
84%
96%
95%
By country: internet penetration2
The case for the developing world leading Next-Generation Shopping
Internet penetration isn't the gold standard for openness to innovation. In fact, developing countries – where smartphone and internet penetration may be smaller than developed
nations – show openness to more tech-forward services such as mobile banking and contactless payments and delivery and take-out as they have adopted these systems quickly.
The number of Internet users in developing countries has overshadowed numbers of users in developed countries due to increased access and population growth, so the future
Next-Generation Shopping consumer is in this part of the world going forward, and they show they are ready for this.
Top four: somewhat/strongly agree that "I will pay for products/services only with
cards or using my mobile phone, instead of cash" 1
Individuals using the internet (in millions), developed vs developing countries, 2018 2
2019
2008
73%
74%
68%
65%
65%
Source: [1] COVID19 Recovery Tracker Survey Week 2, [2] International Telecommunication Union (2018)
52%
48%
Developed
Developed
Developing
Developing
TrendSights Analysis 2020: Next-Generation Shopping
China
27%
29
Consumers are split on experiences vs products
When asked whether they prefer products to experiences, most groups are relatively equal, showing that the two are inextricably linked and must be taken into account when
designing products/services for all consumers
Trend Snapshot
What?
By demographics: Which of the following do you
find most exciting?
Why?
Who?
How?
By gender: Men and women are almost equally split on preference
51%
Women show a slight
preference for trying new
products over experiences
By generation: Silent Generation slightly prefer experiences
while Millennials want products
VS
Trying new experiences
Trying new products
Global average: consumers are equally split
49.6%
50.4%
Trying new
experiences
Trying new
products
By region: Asia and Europe prefer experiences while Middle Eastern
consumers show high preference for products
49%
51%
51%
49%
49%
51%
62%
38%
Silent
Generation
57%
43%
Boomer
53%
46%
Generation X
49%
51%
Millennials
47%
53%
56%
44%
51%
49%
Generation Z
Asia/Australia Central/South
America
Europe
Trying new experiences
Source: [1] GlobalData 2018 Q4 global consumer survey
TrendSights Analysis 2020: Next-Generation Shopping
50%
Men show equal
preference on
experiences vs products
What Next?
Middle East North America
Trying new products
30
Concerns around accessibility to groceries differ by generation and locality
Millennials and those in cities are most concerned about how the pandemic will affect accessibility to food
Trend Snapshot
What?
Why?
City vs country: consumers who say they are concerned about availability of basic
groceries due to Coronavirus1
How?
Top three by generation: consumers who say
they are concerned about availability of basic
groceries due to Coronavirus1
What Next?
Top three by generation: consumers who say they
will spend slightly/significantly more time shopping
for groceries online than before due to Coronavirus1
Gen X
67%
94%
94%
Abu Dhabi/UAE
Gen Z
76%
Gen X
23%
89%
90%
Mumbai/India
New York/USA
79%
Cape
Town/South…
68%
Sydney/Australia
66%
London/UK
55%
Rome/Italy
52%
74%
Behaviors by generation: "Which behaviors will you continue (or start) in postpandemic 'new normal'"1
72%
58%
45%
51%
37%
31%
Largest City
Country
30%
33%
In 7 out 11 countries surveyed, consumers in the countries' largest cities were
more concerned about availability of basic groceries than national average.
Source: COVID19 Recovery Tracker Survey Week 2
52%
48% 47%
44%
42%
63%
54%
51%
49%
22%
Stockholm/Swed
en
29%
80%
78%
74%
Sao Paulo/Brazil
Millennials
Millennials
92%
Gen Z
17%
32%
34%
19%
4%
Silent Gen
Boomers
Gen X
Millennials
Gen Z
Working from home instead of in the office
Buying more products online rather than visiting a store
Dine at home instead of in restaurants
Millennials lead in postpandemic behavior that
will affect shopping
behaviors. Working from
home means fewer
occasions for stops to the
shops after work and
dining in means more
foodservice opportunities
in delivery.
TrendSights Analysis 2020: Next-Generation Shopping
96%
95%
Shanghai/China
Berlin/Germany
Who?
31
How to capitalize on the trend: food
D2C snacking and alternative menu options are key innovations for hyper-connected consumers
Trend Snapshot
What?
Create new occasions
Who?
Use technology to be agile
Home Chef is a popular meal kit delivery service where
consumers receive the ingredients and recipes to prepare at
home. As consumers are time-poor but still want to eat
healthy, the meal kit is a successful endeavor. For meal kit
brands, the benefit of this business model is that it can
adapt to trends. In June 2020, it announced it was
partnering with Impossible Foods – consumers could swap
out meat for plant-based ingredients in their recipes.
Brands like Home Chef understand consumer trends and
can pivot and innovate as needed which is especially
important as technology evolves so quickly2.
Source: [1] PepsiCo website, 2020, [2] PR Newswire July 2020, [3] The Verge, July 2020
How?
What Next?
Technology for sustainability
In July 2020, KFC Russia announced it was launching chicken
nuggets using 3D bioprinting technology. These laboratoryproduced nuggets are made with animal cells, KFC spices,
and some plant materials in order to mimic the real thing.
This shows how brands can show they are innovative in
terms of technology but also understand the benefits of
technology for a more sustainable future – both of which
are appealing to consumers. The way that technology and
innovation is so well integrated into consumer lifestyles
means they are more open to new and more efficient
solutions in food for the sustainable and convenienceminded consumer3.
TrendSights Analysis 2020: Next-Generation Shopping
PepsiCo launched PantryShop and Snacks.com quickly in
response to lockdown. Consumers build boxes of their
favorite products to be sent to their homes. If brands did
not take the direct-to-consumer trend seriously, the
lockdown is forcing them to do so. Food brands need to
understand the evolving lifestyles of all consumers who may
be spending more time at home or on-the-go. Their
snacking habits will also evolve and so only being offered at
convenience stores or supermarkets will not be sufficient.
PepsiCo moved quickly to provide convenience and the fun
experience of subscription boxes for products as simple as
cereal and chocolate bars1.
Why?
32
How to capitalize on the trend: non-alcoholic drinks
Smart packaging technology helps brands tell the story of their products
Trend Snapshot
What?
Why?
Who?
Use technology for transparency
In 2018, PepsiCo bought SodaStream, an at-home
carbonated drink manufacturer, for $3.2bn. This was a
strategic way to reach consumers in the home and provide
personalized flavors for consumers who want to experience
new flavors or limit their sugar intake. Consumers can order
new flavors and there are opportunities here for
subscription services for new flavors, to keep regular
consumption of the products. This will help keep PepsiCo
from losing relevance among younger and more health- and
ethics-aware consumers1.
In partnership with Rainforest Alliance, Nestlé's Zoega
coffee beans are now part of their products that can be
tracked through blockchain just by scanning a QR code on a
smartphone. This is yet another example of how the
technology in this trend can be used for consumers who
want to ensure that their favorite brands are transparent.
For the conscious consumer, this trend allows them to
better understand the products they consumer and become
more informed. This is key and allows brands to stay ahead
of competition and create meaningful engagement with
consumers2.
Source: [1] BBC Aug 2018, [2] FoodBev Media, April 2020, [3] MediaPost May 2019
What Next?
Incorporate tech into products
In 2019 200 million Pepsi bottles were outfitted with QR
codes that consumers can scan for augmented reality filters
to be posted on Instagram. This campaign which also
partnered with Instagram influencers showed how to
integrate, in-store shopping experience of buying a Pepsi
with the digital experience of social media engagement and
sharing3.
TrendSights Analysis 2020: Next-Generation Shopping
Reach more consumers by creating new occasions
How?
33
How to capitalize on the trend: alcoholic drinks
Technology is used to confirm quality, provide an experience, and tell a product's story
Trend Snapshot
What?
Why?
Who?
Personalization enhances consumer experience
Halo delivers cocktails directly to consumers' home. This is a
strong example of a brand that understand the evolving
lifestyles of consumers and provided a service to meet
consumer needs. The brand allows consumers to have the
bar experience in their homes and this is likely to continue
during and post-pandemic. The brand has also
acknowledged the changing world of work. Since consumers
cannot stop by the pub after work, Halo offers after-work
drinks to colleagues who would like a digital happy hour1.
Winc is a personalized wine subscription service. New users
fill out a quiz so Winc can understand their palate. Winc
then sends the first subscription box and consumers can
rate them so that each box will be tailored to the
consumer's exact palate. This technology helps create
personalized experiences for consumers. Subscription boxes
are popular for consumers as it allows them to try new
things based on their tastes and interests. Subscription
boxes also allow for smaller brands to build brand loyalty
and mean consumers might stray from the bigger players2.
Source: [1] Halo Website, July 2020, [2] Winc website, July 2020, [3] Everledger website, July 2020
What Next?
Use technology to build consumer confidence
In 2020 block chain company Everledger launched its
technology for the alcohol industry. This is beneficial for
consumers and retailers for many reasons: ensures the
product is tamper-proof, protect against counterfeiting
(which is common in particular regions worldwide) and
allow for consumers to track the product's journey and
ensure authenticity for aficionados. Everledger helps brands
become leaders in the alcohol industry as consumers value
knowing the provenance and authenticity of the drinks they
consumer. In categories like wine, this is especially
important3.
TrendSights Analysis 2020: Next-Generation Shopping
Mimic experiences in new locations
How?
34
How to capitalize on the trend: personal care
Personalization and at-home care lead innovation
Trend Snapshot
What?
Why?
Who?
Mix online with bricks-and-mortar
While much of the discussion related to preventing the
spread of illness has led consumers to shop online,
Meiyume is looking ahead as retailers reopen. Consumers
will still want to shop for personal care products in person
and sampling is a key sales tactic in make-up. The motion
activated machine found in stores dispenses products,
meaning the experience is completely hands-free. Not just
an important safety measure, the innovative concept is sure
to be an experience that will appeal to curious consumers
in-store1.
Credo has shown the benefits of a digital as well as physical
in-store presence for consumers. CredoLive are sessions
with sales associates who are trained for online
consultations due to the pandemic. Currently there is also a
chat function so consumers can speak in real time with
Credo team online as well as Instagram Live sessions by
experts from various beauty disciplines. Credo's work has
shown how a traditional retailer can reposition itself online
and maintain meaningful relationships that will allow it to
continue to build brand loyalty and encourage shoppers instore. It also understands how to match entertainment with
shopping for experiential consumers2.
Source: [1] Vogue Business July 2020, [2] Credo 2020, [3] Glam Squad 2020
What Next?
Bringing beauty home
If consumers cannot go to the salons, the salons can come
to them. GlamSquad allows consumers to book
appointments with beauty experts who will do treatments
in the customer's home. COVID-19 has meant the company
has expanded its offerings to include haircuts as well. This
offering is a mix of convenience and luxury. GlamSquad is
an example that consumers want the personal touch (and
not just a digital experience) and opportunities for
pampering, but within their changing lifestyle3.
TrendSights Analysis 2020: Next-Generation Shopping
Adapt to traditional channels
How?
35
How to capitalize on the trend: household care and tobacco and e-cigarettes
Smart upgrades to functional and everyday products builds consumer loyalty
Trend Snapshot
What?
Why?
Who?
Build experiences around everyday products
For household and essential products, the Amazon Dash
app allows consumers to easily refill their regular purchases.
With household products such as toilet roll or detergent,
consumers tend to be more price-oriented and less loyal to
brands. By creating an easy button to refill, consumers
consistently shop through Amazon to save time and effort.
Amazon creates this habit with its customers and once this
habit is well-established, it is difficult to break it1.
Clean Cult is a sustainable household cleaner subscription
service. Consumers receive regular deliveries of refills of
cleaning products. The brand is fun and engaging and
encourages consumers to change their cleaning habits.
Clean Cult understands that consumers want their
purchases to make a positive impact on the environment
and the online subscription options allow for consumers to
easily change their cleaning product patterns. It also creates
experiences as consumers receive the box monthly, adding
excitement to household cleaning2.
Source: [1] Amazon Dash 2020, [2] Clean Cult 2020, [3] Vype 2020
What Next?
Design services that reflect shopping behavior
Vype has launched a subscription service for consumers
who enjoy vaping tobacco. Consumers can choose their
preferred device and then choose flavors to receive
monthly. This is an example of a brand understanding
evolving lifestyles and new trends and is adapting. Smoking
is now digitized and so brands should be offering
subscriptions and shopping experiences that reflect the
changing demands of digitally native consumers3.
TrendSights Analysis 2020: Next-Generation Shopping
Build the consumer habit for loyalty
How?
36
How to capitalize on the trend: pet care
Humans want to extend their own digital usage into their pets' lives
Trend Snapshot
What?
Why?
Who?
Tap into consumer needs for pets
Chewy understood the auto-refill system used by the likes
of Amazon and applied it to pet food. Pet owners tend to
purchase the same products every month once they have
food their animal loves. So this system is a perfect way to
set up a subscription service that requires no effort from
the consumer and benefits the brand in terms of regular
sales and loyalty. During the pandemic, this type of pet food
shopping grew in popularity due to lockdown measures1.
Consumers might have even more fun than their pets when
it comes to these subscription boxes. Consumers want their
pets' lifestyles to reflect these and so regular deliveries are
fun for everyone. The Woof Box is themed and includes
new products and treats for pets to enjoy. But not only that,
it is a fun experience for their human owners as well2.
Source: [1] Chewy 2020, [2] Woof Box 2020, [3] Petz 2020
What Next?
Create online occasions
Brazil's pet care company Petz launched "Pet-Commerce"
which is an online portal through their e-commerce site.
The site uses facial recognition to capture your pet's
responses to toys on the screen. While this feature is
probably not foolproof in finding the perfect toy, it does
create buzz around the brand and brings people to the
website, which is a key factor in this trend. It is about
getting consumers accustomed to new forms of shopping
and creating the habit3.
TrendSights Analysis 2020: Next-Generation Shopping
Applying new business models
How?
37
How to capitalize on the trend: retail
Retailers use AI and connectivity to make purchase decisions and payments easier for consumers
Trend Snapshot
What?
Why?
Who?
Change shopping and how consumers pay
Called the QVC for Generation Z, NTWRK is a shopping
platform where "hosts" such as celebrities and influencers
present the products (normally trendy street wear). Instead
of offering consumers tons of stock-keeping units, they
promote curated pieces and "appointment viewings" so
that if you miss the livestream, you miss the new product
"drop," building a sense of urgency and exclusivity. This
"appointment viewing" creates the experience of shopping
in the digital space. It is a mix of entertainment and
shopping, instead of the Amazon e-commerce experience,
which could be said to offer consumers too much choice1.
The Swedish bank Klarna is 15 years old and has gained
popularity in Sweden and the rest of Scandinavia. It was
only in the last few years where it became a worldwide
phenomenon in e-commerce. The tool became more useful
for the new shopping patterns. Since then, Klarna has had
big partnerships in retail, known for its option to allow
consumers to pay for smaller purchases in installments. This
allows younger consumers to purchase for example more
fast fashion (with many critics saying this encourages bad
spending behavior) and regular items, and not just high
price items. Klarna has disrupted how consumers pay
online2.
Source: [1] Vogue Business, July 2020, [2] Klarna, July 2020, [3] Raconteur, June 2020
What Next?
Technology for the personalization and fit
Using AI and real-time image processing, Zeekit helps
consumers see themselves in any outfit they see on a
fashion e-commerce site. This virtually eliminates the need
for changing rooms, which is likely to be a long term
concern due to the pandemic. This is a safer and surefire
way to buy online from home. This partnered with sizing
charts and crowd sourced reviews of clothing, consumers
can do their best shopping from home, which would
massively change the fashion retail industry3.
TrendSights Analysis 2020: Next-Generation Shopping
Recreate the real thing online and exclusive
How?
38
How to capitalize on the trend: foodservice
Digitalization brings the food home and keeps consumers safe
Trend Snapshot
What?
Invest in tech experts and innovation
Who?
Blending technology and safety
A pub in Tokyo Japan has designed a system to protect the
servers and customers during the pandemic. Customers
meet the hostess on a screen and are then sprayed with
sanitizer. The increasingly sanitized society due to COVID-19
means that technology, foodservice, and hygiene will
intersect going forward2.
Source: [1] CNBC Sept 2020, [2] SCMP May 2020, [3] Tock Website 2020
How?
What Next?
There's an app for that
This online reservation platform retooled its offerings as
soon as the pandemic hit, offering curbside pick-up and
home delivery. It also focuses on fine dining establishments,
offering high-end meals as an at-home experience. Tock has
been successful because it has an agile system and adapted
quickly to the changing foodservice environment3.
TrendSights Analysis 2020: Next-Generation Shopping
In the last two years McDonald's has invested heavily in
technological innovation, particularly in AI. It has developed
an innovation lab called McD Tech Labs, which looks to
digitalize the McDonald's experience with machine learning,
personalization, and analytics. McDonald's is a strong
example of how a traditional service provider can look
outside of the company for tech expertise and through
acquisitions, grow its business and streamline its
technological practices1.
Why?
39
How to capitalize on the trend: packaging
Packaging can be used as a form of transparency and creating memorable engagement with the consumer
Trend Snapshot
What?
Why?
Incorporate fun into package
In 2019, Kellogg's in Australia launched augmented
reality packaging for kids with Crayola. Kids could
color in the cereal box, and using a smartphone, the
images would come to life. Cereal boxes have always
been designed with kids in mind, but this is an
innovative way to create a multi-media experience
with prizes. This encourages brand loyalty among
consumers and a competitive advantage in a busy
cereal aisle where private label can be a cheaper
alternative. Brands can create small daily experiences
without extra cost to the consumer1.
How?
Scan to engage and inform
•
Wine brand Böen's 2019 campaign was "Tap our
Cap," encouraging consumers to use a technology
called near-field communication to scan the caps and
gather information on the wine, the region, and
pairings through an app. This shows trust and
transparency as consumers can see the origins of
their wines as well as build an experience around
wine tasting with their smartphones2.
Source: [1] Mumbrella, July 2019, [2] Böen Website 2020, [3] 19 Crimes website 2020
What Next?
Packaging can be storytelling
•
19 Crimes wine packaging has made it a must-buy, for
the AR scanning and app that tells the story of the
prisoners on the bottle. Each prisoner, convicted of
one of the 19 crimes that led to their deportation to
Australia, brings the narrative to life and engages with
the user. This creates the consumer experience that
brands need to now offer in order to build that brand
loyalty among a competitive environment3.
TrendSights Analysis 2020: Next-Generation Shopping
•
Who?
40
Future Implications
What next?
Taking the key learnings from this report to action brand recommendation
Trend Snapshot
What?
Pictures courtesy of Shutterstock
Who?
Engage with consumers to gain behavioral analytics from
users that in the end will enhance the product or service.
This is the cyclical nature of the Next-Generation
Shopping trend: the brand innovates to benefit the
consumer, then this allows for data collection that the
brand can then use to greater improve the customer
experience.
How?
What Next?
Target the underserved consumer. It is easy to look at
certain income groups as more open and accessible. But
thanks to the democratizing nature of technology in
many sectors, opportunities to get people to join your
target audience is growing. This is why brands cannot
leave these consumers behind. Instead, innovations must
be inclusive, affordable, and convenient.
TrendSights Analysis 2020: Next-Generation Shopping
Integrate the product or service into the consumer's
lifestyle. An innovation cannot be just for the sake of
innovation. Instead, it must be able to be easy to use and
enhance the consumer experience or make the shopping
experience more convenient or personalized. This means
understanding the consumer patterns and behaviors in
order to understand how to seamlessly integrate it.
Why?
42
Regional insights on the trend
All regions are open to the trend; however, the execution varies
Trend Snapshot
Why?
Who?
How?
What Next?
European consumers tend
to be more conservative
and a little more hesitant
than elsewhere, but value
the transparency that the
trend can offer them.
Emerging economies in MEA and
LATAM are leading the way and the
opportunity is to innovate and test
out new technologies to an openminded consumer base
APAC is advanced in terms
of e-commerce and
contactless payment.
Brands and services should
not launch without
incorporating smart
technology.
TrendSights Analysis 2020: Next-Generation Shopping
In-store innovation in North
America thanks to the
success of brands like
Amazon means innovation is
happening in-store in
contactless payments and
cashier-less stores.
What?
43
Trend lifecycle: growth
Certain categories and regions lead, but not for long
Trend Snapshot
What?
Why?
Who?
Trend lifecycle: category and regional relevance
Size of opportunity
Asia-Pacific
Emerging
Growth
Pet care
Food
Alcoholic
drinks
Personal care
Revival
• The trend is in different phases depending on the region as well the category. In AsiaPacific nations, the infrastructure and the consumer interest is there, and so it is about
continuing to advance the opportunity. In Europe, innovation might be slower, but
consumers are still hyper-connected and so brands and retailers have the opportunity to
push it forward.
Decline
• While food and personal care lead in terms of trend lifecycle, other categories will move
along as consumers become accustomed to incorporating the trend into their lifestyles
and habits and thus purchase behavior.
Maturity
Non-alcoholic
drinks
Conception
Household
care
Tobacco
TrendSights Analysis 2020: Next-Generation Shopping
• In emerging economies, cell phone adoption will soon overtake the developed world,
which shows that this is where brands can focus on growing and experimenting in
innovation.
North
America
South and
Central
America
What Next?
Endless opportunities going forward as consumers are hyper-connected
MEA
Europe
How?
Time
44
How technology will keep up with the consumer
A combination between following and leading the consumer is set to help brands find success
Trend Snapshot
What?
Why?
Mainstreaming Innovation
Mapping the customer journey
Augmented Reality
Artificial intelligence
Drone delivery
The long term effects of the pandemic are still
unknown, but innovation has taken off and as
consumers become more open to a more socially
distanced lifestyle, technology is not far behind.
Going forward, products and services will be more
automated, delivered, and contactless, not just for
hygiene, but for convenience. As consumer
behavior has evolved, companies have focused on
meeting consumers wherever they are.
Contactless
AI Helper
Brands are bringing innovation into their
companies instead of simply looking outward.
McDonalds, Carrefour, and Ikea all run labs to
innovate and use the latest technology to improve
the customer experience. These technologies help
companies build a fabricated consumer experience
and look to solve everyday problems before
applying to real-world situations.
What Next?
Distancing from humans
Design Thinking
In-store personalization
Behavioral analytics
Predictive analytics is a proactive approach to using
Big Data collected by brands and retailers thanks to
consumers hyper-connected lifestyle. These
technologies not only gather consumer
information, but also uses AI to predict behavior
and help brands plan for future innovations and
marketing strategies.
How?
TrendSights Analysis 2020: Next-Generation Shopping
Predictive analytics
Who?
45
Appendix
References
References and further reading
Websites and resources
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Amazon Dash, https://www.amazon.co.uk/b?ie=UTF8&node=15144566031, July 2020
BBC (2018), PepsiCo buys Sodastream for $3.2bn," https://www.bbc.co.uk/news/business-45244759, Aug 2018
Böen, https://boenwines.com/tap-our-cap/, July 2020
Chewy, https://www.chewy.com/app/content/autoship, July 2020
Clean Cult, https://www.cleancult.com/, July 2020
CNBC (2019), "McDonald's acquires A.I. company to help automate the drive-thru, its third tech deal this year," https://www.cnbc.com/2019/09/10/mcdonalds-acquires-ai-company-trying-toautomate-the-drive-thru.html, Sept 2019
CredoLive, https://credobeauty.com/pages/credo-live, July 2020
Everledger, https://www.everledger.io/, July 2020
FoodBev Media (2020), "Nestle introduces blockchain to its Zoegas coffee brand," https://www.foodbev.com/news/nestle-introduces-blockchain-to-its-zoegas-coffee-brand/, April 6 2020.
Glam Squad, https://www.glamsquad.com/, July 2020.
Klarna Website (2020), https://www.klarna.com/international/klarna-15/, Accessed July 10 2020
Halo, https://www.halo-drinks.co.uk/, July 2020
International Telecommunication Union, "Country ICT Data (2018)", https://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx, accessed July 13 2020.
MediaPost (2019), "Pepsi Unleashes Hundreds of Instagram AR filters for summer," https://www.mediapost.com/publications/article/336171/pepsi-unleashes-hundreds-of-instagram-ar-filtersf.html, May 22 2019
Mumbrella (2019), "Kellogg's launches black and white packaging in partnership with Crayola," https://mumbrella.com.au/kelloggs-launches-black-and-white-packaging-in-partnership-withcrayola-587783, July 8 2019.
PantryShop by PepsiCo, https://www.pantryshop.com/, Accessed July 2020
Petz, https://www.petz.com.br/petcommerce/, July 2020
PR newswire (2020), "Home Chef announces collaboration with Impossible Foods," https://www.prnewswire.com/news-releases/home-chef-announces-collaboration-with-impossible-foods301093429.html, July 14, 2020.
47
References
References and further reading
Websites and resources
o
o
o
o
o
o
o
o
o
o
Raconteur (2020), "Why AR hit its stride in Covid-19 era," https://www.raconteur.net/retail/ar-retail-covid, June 30, 2020.
SCMP (2020), "Japanese pub installed disinfectant spraying machine to keep diners safe," https://www.scmp.com/video/coronavirus/3085333/japanese-pub-installed-disinfectant-sprayingmachine-keep-diners-safe, May 20 2020
The Verge (2020), "KFC is working with a Russian 3D bioprinting firm to try to make lab-produced chicken nuggets," https://www.theverge.com/2020/7/18/21329453/kfc-russia-bioprinting-labchicken-nuggets-sustainable, July 18, 2020.
Tock, https://www.exploretock.com/, July 2020
Vogue Business (2020), "Beauty brands scramble to salvage sampling in the pandemic," https://www.voguebusiness.com/beauty/beauty-brands-scramble-to-salvage-sampling-in-the-pandemiccovid-19, July 3 2020
Vogue Business (2020), "Experiential shopping in the digital world," https://www.voguebusiness.com/technology/vogue-business-klarna-webinar-experiential-shopping-digital-world, July 10,
2020.
Vype, https://www.govype.com/gb/en/, July 2020
Winc, https://www.winc.com/, July 2020
Woof Box, https://woof-box.co.uk/, July 2020
19Crimes, https://www.19crimes.com/, July 2020
48
Meet the author
Yamina Tsalamlal, Associate Analyst
Yamina is an Associate Analyst in GlobalData's Consumer team. She has a bachelor's in journalism and for the last five
years has worked in business development and strategy for a media start-up in Canada. In 2019, she graduated from
IE Business School in Madrid with a master's in market research and consumer behavior.
49
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