The Ignition Trend Report: Spring 2020 by BrandJuice

IGNITION THE

Futurefluence TM Trend Report Spring 2020

Discovering Opportunity In Times of Uncertainty When change is the only constant, making sense of the ambiguity is more paramount than ever. With the benefit of both hindsight and strategic foresight methodologies in place, BrandJuice is closely monitoring todayâ&#x20AC;&#x2122;s consumer behaviors and market dynamics to help brands make connections between emerging trends, industries and their customersâ&#x20AC;&#x201D; as a whole new era of societal shifts reshapes the world of tomorrow.

Metamorphic Experiences In 2020, consumers accustomed to the ultra-convenience of “everything as a service” will increasingly expect relevance as a service, too. Indicating a rise of experiences that are constantly adapting around the changing needs of the individual.

Adaptable Self-Care Japanese beauty brand Shiseido announced a new IoT skincare system Optune—a metamorphic skin cream that adapts to the user on a daily basis. Users take a daily selfie via the app, and an algorithm analyzes their skin while also accounting for environmental factors such as temperature, humidity and the user’s sleep data. The information is sent to a device which mixes a cream to fit that user’s personal needs—a direct response to consumers’ heightening expectations for responsive personalization.

Responsive Environments Smart thermostats, lighting, heating and more are getting a responsive upgrade as consumer expectation shifts increasingly towards environments that adapt to us—not the other way around. In response, a number of automakers are experimenting with responsive car interiors. Kia Motors recently unveiled READ, its Real-Time Emotion Adaptive Driving concept, which uses AI to analyze a driver’s emotions via their heart rate and facial expressions and then adjust lighting, sound, temperature and even seat vibration to create a more relaxing, moment-to-moment environment.

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DNA-Driven Nutrition Advances in speedy, sophisticated data analysis are paving the way for lifestyle experiences that offer adaptive, real-time hyperpersonalization. Set to open in Tokyo this year, Sushi Singularity will collect bio samples from their restaurant guests to create 3D-printed sushi tailored to dinersâ&#x20AC;&#x2122; nutritional needs. It joins personalized vitamin startup Baze which uses small blood samples to create and iterate the perfect supplement concoction, catering to usersâ&#x20AC;&#x2122; unique and ever-changing bodies.

Why It Matters People are always in a state of flux. For that reason, there can never be one perfect solution for any given person. Rather, a true fit means constant adaptation around the changing individual. Convenience and personalization are already on the radar, but in a metamorphic world, consumers will expect the merging of those two imperatives, which means brands will need to determine what form of ultra-convenient, ever-shifting responsive personalization their consumers can come to expect from them.

Existential Luxury Perceptions of premium are being redefined. According to The Future Laboratory, today’s luxury purchaser is seeking to express who they are, rather than what they have. Wanting to be seen as ethical, creative, connected, philanthropic and conscientious, they are reinventing luxury to fit with their new lifestyles.

Relevancy is the New Legacy A long-standing legacy no longer guarantees relevancy, which means slow to change luxury department stores no longer resonate with modern premium purchasers, who are more willing to pay for experiences and ethics. Legacy retailers such as Nordstrom and Selfridges are pivoting to the experience economy with workshops, cultural programming and pop-ups, while Gucci and Louis Vuitton are deploying vintage-inspired video games, and newcomers like Showfields are blurring the lines between art, commerce and experience, turning shopping into an immersive and multi-sensory experience.

Ethical Luxury Veganism is being elevated to a covetable luxury amenity driven by ethical mindsets. Hilton recently unveiled “the world’s first vegan suite” complete with plant-based keycards, eco-stationery, a vegan mini bar and Piñatex seating. It joins Saorsa—a 100% vegan luxury hotel in the Scottish Highlands—in fusing understated luxury with practical sustainability. Luxury brands are ushering in the next evolution of vegan lifestyles, delivering on consumer desire for guiltfree indulgence while also opening up unexpected plant-driven opportunities for innovation outside of the immediate food category.

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From Exclusivity to Inclusivity Consumers are looking for companies to embody the values of diversity and inclusion. In 2020, nearly two-thirds of customers say they will choose, switch, avoid or boycott a brand based on its stand on societal issues, which means luxury companiesâ&#x20AC;&#x2122; historically exclusive initiatives will shift to be more inclusive, and come under increasing scrutiny in terms of sincerity and results. From casting models of varied backgrounds to hiring chief diversity officers, luxury brands will have to be more vocal about their inclusivity efforts.

Why It Matters In an era where status is increasingly defined by values and purpose rather than price and prestige, the luxury category is undergoing a significant shift. To stay relevant, luxury brands will indeed need to create deeper and more meaningful engagement with their modern affluent consumers, deliver a new range of personalized, inclusive experiences and innovate both their business models and value propositions to fit modern, digital-infused lifestyles. In shortâ&#x20AC;&#x201D;brands will need to deliver luxury by empowering individual identities and expressions.

Digitizing Humanity A multiplicity of digital channels is giving rise to new expectations when it comes to the democratized conversation between brands and consumers. New virtual characters and avatars are allowing brands to inhabit digital channels in more immersive and human ways.

Immersive Ambassadors Virtual influencers like Lil Miquela have already moved to the mainstream, but as consumers get more accustomed—and more accepting—of digital lifelike entities, more brands are experimenting with AI and Avatar ambassadors. Skincare brand SK-II created YUMI, an avatar that can autonomously develop her own personality and interact with customers in a warmer, more approachable manner than chat bots or virtual assistants, while Chinese search engine Sogou is creating AI author look-alikes to read popular novels in authors’ voices.

ESports Stars GlobalData predicts the gaming industry will be worth $300 billion by 2025, and brands are finding their way into the action—using gamefluencers to promote and launch products, and finding opportunities for in-game activations. Wendy’s introduced their red-haired mascot into the video game Fortnight, having the character enter into burger restaurants and destroy freezers—ultimately instigating a movement with users in the virtual world. As the gaming universe increasingly diversifies and the uptick in users continues, it’s giving rise to gaming and Esports stars as the newest class of celebrities.

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Virtual Companions Amazon is working on a wearable that will understand and respond to the emotions of the user. Aiming to build a virtual relationship that goes well beyond Alexaâ&#x20AC;&#x2122;s current capabilities, the company is one of many aiming to devise tech assistants that are more mobile and emotion-aware, and thus able to fulfill the human need for companionship. The rise of these virtual companions is priming consumers to expect branded virtual entities that connect to them on a deeper level.

Why It Matters Modern consumers are more apt to respond to brands that meet them in the digital channels they live in, and serve themâ&#x20AC;&#x201D;solving pain-points, offering useful information and even delivering promotion-free entertainment. Virtual companions and brand avatars are shaping up to the be the next frontier of brand activations, offering brands the opportunity to bring their values, characteristics and essential nature to a new kind of life.

Rapid Revolution COVID-19 has exposed cracks in the U.S. healthcare system, and both public and private sectors will need to play a role in the upcoming shifts. In the months ahead, we can expect a wave of radically different ways to treat patients and support healthcare professionals.

Pharma Shake Up Fragile supply chains for active pharmaceutical ingredients are leading to a bipartisan consensus that the public sector needs to play a greater role in development of medicines. While leaders in pharma and biotech are battling to bring a COVID-19 vaccine to market, younger startups are making the most of the opportunity, too. Britain’s BenevolentAI is one startup using its artificial intelligence to fast-track a cure. SkyCell, a medicine transporter, is another building momentum, booking out more than 200 additional transportation pallets to send 46 tons of medication safely to China.

Robot Backup As the healthcare system becomes overwhelmed, alternative technologies can provide relief to providers stretched thin—and worried about their own personal health. Robots are one such savior—as in, they can’t get sick, making them ideal for performing jobs in hospitals and connecting those locked down in isolation. Blue Ocean Robotics is one Denmark company developing autonomous disinfection robots that help kill viruses and bacteria in hospitals using UV light. The line has seen 400% year on year growth since its market launch two year ago.

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Telehealth Takes Off In the wake of the virus, federal and state agencies are rapidly revising guidelines and reducing barriers to connected health, giving providers the opportunity to try things theyâ&#x20AC;&#x2122;ve hesitated to try before, and leading to adoption at lightning speed. More than just virtual conversations, telehealth startups are working to provide value in increasingly efficient ways. CirrusMD created an app that lets users text their doctor their symptoms, snap a picture or two and in real time, get a prescription and be on their way.

Why It Matters The pandemic presents an opportunity for challenger brands to gain a foothold. Previously, legislative roadblocks for new technologies and solutions have prevented new entrants from connecting with providers, especially without the promise of reimbursement. But as non-traditional methods prove effectual in the midst of this crisis, people can expect a sea change of legislation once the pandemic is over. Those who will quickly gain adoption are wise to capture rich data in the meantime to craft a compelling case.

Aging Innovation For the first time in history, individuals aged 65 or above outnumber children under five years of age globally. With the increase in life expectancy and falling fertility levels, the new frontier of aging is primed to heavily rely on technology for support and creative solutions.

Increasing Healthspan In times of financial uncertainty, the cost of long-term care is prohibitive. Extending “healthspan,” the time during which older adults are healthy and able to function independently, could ease some of these pressures, beginning with social determinants of health, including healthier diets, accessible exercise and supportive mental health measures. Nutritious meal providers like Mom’s Meals are working to support better health with digital meal plans that meet aging clients’ specific needs with medically tailored meals, delivered directly to customer’s homes.

Blending Health with Hospitality Environment plays a significant role in protecting body and mind as people age. More and more, senior living centers are taking on responsibility as healthcare providers, ensuring the longevity of their clients and helping them manage chronic conditions. Meanwhile, the cookie-cutter retirement center is being slowly overturned with more enriching hospitality and community-based living such as the NoHo Senior Arts Colony in Los Angeles, where hallways are a rotating art gallery, studio space is available for residents to mix their own paints and a theater occupies the ground floor.

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Meeting Menopause According to North American Menopause Society, more than a billion women around the world will experience menopause in 2025. Those facing this stage have often been forced to “tough it out” with few options to address symptoms. Direct-to-consumer startup Rory is focused on increasing awareness and availability of treatment options for women. Through a telehealth platform, in-person healthcare can be complemented, giving patients access to prescriptions that treat common symptoms. Meanwhile, brands like Procter & Gamble are taking a lifestyle approach with ‘Kindra’, a wellness brand that bridges health and beauty—offering skincare, topicals and more to treat the inside-out.

Why It Matters Aging demographics are largely overlooked by marketers, who predominantly target their efforts toward millennials and Gen Z. But in the age of information, these cohorts are increasingly defying ageist stereotypes and definitions of life stage. Businesses who can lean into psychographics—and realize age truly is just a number—can build thoughtful brands that connect on a richer level.

Proactive Possibilities As viruses spread at a breakneck pace and chronic illnesses around the globe continue to balloon, the system has never been so taxed. In order to break these systemic trends, the healthcare industry is facing intense pressure to proactively deliver care and mitigation solutions before problems even begin.

Other Worldly Intelligence Artificial intelligence is primed to make a sweeping impact on the healthcare industry—tackling everything from designing new drugs and treatment plans, to disrupting medical imaging and mining medical records. AI algorithms can tackle these challenges faster than any provider—giving back precious time to spend on human-centric interaction. Companies like Turbine, Recursion Pharmaceuticals and Deep Genomics are leveraging the power of AI to develop new drug candidates and novel therapeutic solutions in record time and speed up the time to market, all while saving costs and lives.

Tracking Gets Technical Health trackers, sensors and wearables continue to empower people to take control of their health and make more informed decisions—and they’re going far beyond the bounds of fitness and diet. Swiss startup Aktiia recently raised over $6M for its continuous-blood-pressure-monitoring bracelet, equipped with an optical sensor and a software algorithm that measures an individual’s blood pressure. Tracking advancements are also helping at-risk patient groups maintain security and independence.

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Why It Matters Adopting and adapting to these waves of changes is no easy feat. Implementing new systems can cost billions of dollars and temporarily erode efficiency with time and training involved. Where industry buzzwords like “productivity” and “efficiency” can come off as lip service, innovative brands that write their own lexicon can break through the noise and demonstrate true value.

Business Post-Pandemic The pandemic isn’t just attacking immune systems—like the Great War and World War II, it’s infecting the very foundations of business and society. This novel virus is reorienting our relationships to government, the outside world and even each other. Rapid change is taking place to the global economy out of necessity, and with it will come long-lasting effects.

Digital Gets More Communal The paradox of online communication is being increasingly underscored: it creates more distance, yes, but also more connection, as people communicate more often with those who are physically far away—and who feel safer to us because of that distance. Inspirational examples of new formats for digital expression and community are on the rise—musicians play live concerts, master yoga instructors teach free classes, entrepreneurs offer time to listen to pitches and the list goes on. This is a distinctly different on-screen life and it’s breaking open the medium with human generosity and empathy.

Global Becomes More Domestic The globalized nature of business and society in recent years has allowed an unprecedented level of trade, however as countries are quarantined and distribution comes to a halt, supply chains are being radically disrupted. The trade impact of this pandemic will create more pressure on corporations to weigh the efficiency and benefits of a globalized supply chain system against the reliability of a domestic-based supply chain. Switching to a domestic supply chain will likely be seen as reducing unpredictability and dependence on an increasingly fractured global system, however the shift could also increase consumer and corporation costs.

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Society Seeks Experiential Reprieve After the 1918-19 Spanish flu and the end of World War I, many Americans sought escapism through carefree experiences, which new forms of entertainment and a flagrant disregard for prohibition facilitated. Everyone, young and old, desired a vibrant, emotional reprieve to contrast the time of seclusion and suffering. As a result, the economy quickly rebounded and flourished. Using the past as a helpful tool to anticipate the future, the passing of this pandemic will likely be greeted with a similar craving for the care-freeâ&#x20AC;&#x201D;and thus a need for brand experiences that can deliver.

Why It Matters Crisis moments present uncertainty, but also undeniable opportunity. Turning focus from short-term ramifications to the long-term impact can help brands bring greater clarity to how theyâ&#x20AC;&#x2122;ll navigate the coming weeks, months and even years. While the pandemic is expected to have detrimental effects on the global economy in many ways, there may also be some positive repercussions to look forward to, such as the more sophisticated and flexible use of technology, less polarization and greater sense of community, and even a revived appreciation for lifeâ&#x20AC;&#x2122;s simple pleasures.

The Privacy Challenge Use of data today is generally perceived as underhanded and unethical with 89% of consumers feeling that the way companies collect and use data is “sneaky,” according to SONAR™. And while policymakers are still split on whether consumers, companies or the public should be “owners” of the data, brands are struggling with how to set the right privacy standards.

Featuring Privacy With increasing concerns around data management and continuous surveillance, tech brands are making strides to ensure privacy becomes a feature purpose-built into their products. Google opened a privacy engineering hub in Europe in addition to introducing new voice commands for Google Assistant to help users better control their privacy. Users can now instruct Google to wipe their data by saying, “Hey Google, delete everything I said to you this week.”

Trust-Earning Data According to a new report from Episerver, 53% of consumers want retailers to respect their anonymity in 2020, but at the same time 61% want more personalization in marketing, messaging and promotions. How brands implement tech capabilities in 2020 will be under increased scrutiny, requiring data-driven initiatives to be designed and executed in an ethical, transparent and trustworthy way. In other words, designing with a people-first mentality, rather than data-first.

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Privacy Ethos Some companies, such as Apple, are going beyond data protection and privacy policies to incorporate privacy as a core company ethos. Following their rollout of iOS 13, an updated operating system that puts data privacy front and center, their entire media campaign featured slogans such as, “Privacy. That’s iPhone.” and “What happens on your iPhone, stays on your iPhone.” In true industry-leader fashion, Apple is setting the standards for a new era of ethical privacy, with more and more tech companies likely to follow suit.

Why It Matters While these initiatives mark the first step in repairing the damage already inflicted in the data privacy battle, there is still a long way to go and brands must tread mindfully. The idea that people can control their own data and their digital identity is not a figment of imagination or a wild hope for the future, it’s actually possible and brands that are able to reliably and ethically bring this future to fruition will find success among consumers.

Sustainability Gains A Foothold The pandemic is generating greater awareness around how people spend and consume. In the midst of the chaos, communities around the world are waking up to aspects of true sustainable living. With greater focus on health and well-being, remote working and more digital collaborationâ&#x20AC;&#x201D;consumers might be ready to channel their efforts into what matters most and save the planet in the process.

Slowing the Surplus Food waste continues to be a growing global issue, one made more difficult to tackle without consumer participation. To combat the problem, innovative brands are leveraging tech to help consumers make the most of their food: food-waste app Karma partnered with Electrolux to create smart, shoppable refrigerators located in busy public centers like train stations. Stocked with surplus goods from groceries that are nearing their expiration, consumers can purchase the discounted food through the app, making it more convenient to conserve.

Leveraging Logistics The world pre-pandemic relied heavily on logisticsâ&#x20AC;&#x201D;now with new stayat-home measures, shipping with accuracy and speed has never been so paramount. But with more shipping comes more greenhouse gases. To do their part, many companies are searching for sustainable means for getting goods from point A to B, including using locally sourced suppliers to help reduce transportation mileage and optimizing shipping containers to use all the space to transport full loads.

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Minimizing Consumerism According to the recent ThredUp Resale Report, the secondhand clothing market is on track to reach sales of $43 billion by 2022, fueled by millennials and generation Z who are adopting secondhand apparel two and a half times as fast as other age groups. In response to consumersâ&#x20AC;&#x2122; changing purchase behavior, many companies are shifting their existing throwaway model for a circular economy alternative that aims to reuse, reduce and recycle within the supply chain model.

Why It Matters While many of these trends have yet to be widely adopted, itâ&#x20AC;&#x2122;s likely that more companies will start to implement sustainability at every touchpoint of their businessâ&#x20AC;&#x201D;from manufacturing and product development to brand values and long-term vision. The result may not only create a more eco-friendly business model, but in some cases a more secure business as a whole, as companies will be less affected and reliant on raw materials and natural resources that could be impacted through climate change.

Looking To The Future We’re always thinking about what’s next with strategies to fuel innovation and insights to make it actionable. If you’re feeling the need to alter your brand’s course to meet the shifting dynamics of your customer’s wants and needs during this unprecedented time of change, we can help connect the dots. Let’s talk.

Andrea Stone Managing Director andrea.stone@brandjuice.com

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