The Ignition Trend Report: Spring 2019 by BrandJuice

IGNITION THE

F u tu refluence T M T rend R e por t S pri n g

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T a ppi n g Foresi ght For I ns ight

S i g n s O f Spri ng With a new season, we welcome a rebirth. This cycle of turnover brings with it a fresh perspective and chance to grow. From the emergence of Gen Z and the ever shape-shifting workforce, to the “Sriracha-fication” of CBD and data-driven everything, there’s a renewed energy to move and transform. If winter is about plotting and planning, then spring is most certainly the time to take action.

HOW DO WE TAKE ACTION? It begins by noticing patterns. Drawing connections. Altering the course. And tracking these greater shifts back to their origins. In this edition of the FuturefluenceTM Trend Report, we look to the world around us, analyzing shifts in human behavior that influence the way we behave and the way the marketplace will respond in turn. This is your guide to anticipate whatâ&#x20AC;&#x2122;s to come, and why it should matter to your business, and your life. Actionizing insights to safeguard the future.

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HUMANIZING EXPERIENCE + In an increasingly chaotic era, brands are working to carve out new opportunities with experiences built on kindness, to reach heads and hearts on a deeper level. Rather than viewing tech as a platform demanding we give up part of ourselves, we shift towards an era where services are purposebuilt to amplify human capability, with messaging that digs deeper to understand the modern challenges consumers face. From apps, to websites, to hardware, more playful and non-threatening approaches are front and center. Uber’s recent re-stage featured a softer, refreshed logo and bespoke set of fonts. Meanwhile, dating app Grindr created a new initiative called Kindr in an effort to foster more inclusivity and a welcoming environment to support the queer community. Socially Well Social platforms are addressing the negative impact they can have on users’ mental health. Facebook launched an Online Wellbeing section that includes a Youth Portal to help young people use the platform appropriately, while Google’s Wellbeing Initiative works to monitor behaviors with custom reminders tracking time and encouraging more conscious consumption. Let’s Talk About Sex Another area on the radar are brands empowering women of today with more open discourse. Women’s wellness company Lola is working to de-stigmatize sexual health with its “Let’s Talk About It” campaign. With a public hotline about common sex questions and concerns available to the public, the brand received over 1,600 phone engagements from both men and women in the first week alone. 6 | ©2019 B R A N D J U I C E

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As the push and pull of tech continues to create unforeseen challenges in reaching consumers, brands will be forced to create initiatives that are authentically tied to their values and a reason for being—having an ethos that consumers don’t necessarily have to “buy” to believe. Integrating life and work in a way that feels purposeful will continue to be top of mind as brands look to lead with heartfelt solutions that lend some semblance of consumer loyalty.

THE NEW LUXURY + Luxury, by definition, has taken on many new forms in the last decade, with reinvention as its driving disruptor for 2019. According to a recent Bain & Company study, Millennials will represent more than 30 percent of the luxury goods market in less than ten years. Aside from the traditional landmarks of luxury (e.g. sports cars, Swiss timepieces, monogrammed handbags), the new luxury is choosing to downplay exclusivity by shopping with intention and purpose, choosing to invest in things that display value and consciousness. Luxury Begins at Home For many, luxury begins within the home, pimping out their pads to create environments that make downtime feel more like a retreat. From expert interior design at your fingertips with services like Modsy and Havenly, to the shoppable lifestyle experiences of the gallery-meets-brunch club at Restoration Hardware flagships, these brands are making luxury more accessible and relatable to consumerâ&#x20AC;&#x2122;s desires. Home is also a central station for health, with consumers shelling out large sums on Peloton Bikes, pricey juicing machines, premium organic cotton sheets, non-toxic appliances, and taking it a step further to ensure their air is of the utmost purity. This new focus on indoor air has created a market for air purifiers which is estimated to reach $33 billion by 2023. Luxury hotels around the world are adding in-room perks in the form of clean air, such as The Four Seasons Hotel in Los Angeles and The Oberoi in New Delhi.

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Don’t Forget Fido And finally, a luxurious attention to detail makes its way to four-legged family members. Tesla recently launched a ‘Dog Mode’ feature that allows unaccompanied pets to remain in the vehicle in climate-controlled conditions, while Jaguar introduced Pet Pack, a range of pet accessories that includes anti-spill water bowls, upholstery protection rugs, a folding ramp to help a dog access the trunk, and a shower to rinse down after a muddy walk.

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With the entry of the next-gen luxury customer, being coined HENRYs (“high-earners-not-rich-yet” who will reach age 38 this year, hitting their stride in career and income), a new segment emerges primed to be the most educated and most connected. This customer will seek brands in tune with the digital way they prefer to engage with brands. The brands who can reach them will succeed by having a crystal-clear focus on the benefit they offer, while not attempting to be everything to this very nuanced audience.

SPEAK MY LANGUAGE + The future belongs to Generation Z. Even though its oldest members can barely buy liquor, Gen Z (born 19952015) is defined by passion. They showed up in droves for the 2018 midterm elections, spurred by a desire to reshape the world into a better place, and theyâ&#x20AC;&#x2122;re ready to put their money where their mouths are with $44 billion in purchasing power. Calling the Shots To gain their trust, many brands are allowing the customer to take the reins, and not the other way around. One example is Magal Jewelry, a direct-to-consumer fine jewelry brand that enables customers to literally dictate the offering and the experience. Similarly, Gen Z-beloved clothing brand Brandy Melville engages customers directly in their R&D process, executing near real-time feedback loops on social that give customers a chance to have a say in the products they purchase. Show Me Your Roots Still relying on Instagram-influencers? Not going to fly with this group. Raised as digital natives, they see through the veneer of overly curated spokespeople. The new influencers will be niche, nonconformist content creators with one-of-a-kind, authentic stories to tell. While they may not speak to the masses, they, along with their followers, are fiercely loyal, willing to go above and beyond to support brands they believe in.

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Hey, AI Accustomed to using tech shortcuts to get what they want, Voice Search will become a powerful vehicle to reach Gen Z when and where they are. Where large swathes of the world have not been able to experience the internet without the ability to read or write, or due to a handicap, voice can democratize the experience. Voice assistants equipped with AI are primed to become the standard, with retailers already introducing it as a step beyond chatbots, integrating seamlessly with a website experience.

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With a total population of over 70 million, this generation will soon surpass Millennials in size. An opportunity exists for businesses to get ahead, creating relationships early on by building trust through understanding. Leveraging insights to better grasp their unique perspective on the world, their environments and how their experiences will shape their lives to come.

“ It i s th e set of t he sai l s , n ot t h e di re ct i on of t he wi nd that wi l l de te rm i ne whi ch d i re c tion we w i l l go.”

- Jim Rohn Entrepreneur, Author & Motivational Speaker

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VALUE IS HERE TO STAY + The transition to value-based care is more than just well underway. It’s a disruptive force that is bringing about greater choice and a more educated healthcare consumer. To win, nimble brands are thinking bigger, thinking better. “Come On Knock On My Door” Value will continue to drive care for the ever-expanding senior population. One recent innovator is Mercy Care, a not-for-profit health plan offering Medicaid and Medicare benefits, who recently piloted a program to deliver in-home urgent care at the touch of a button. By teaming up with startup healthcare partners like DispatchHealth, a provider of mobile healthcare services, the pilot aims to deliver on reducing emergency department visits, preventing readmissions and meeting patients where they are. Sure to Be Insured New private insurance models are shaking up the space, with tech giants entering with an eye on improved efficiency and cost reduction. Amazon made waves by partnering with Berkshire Hathaway and JP Morgan to form an independent company to better manage their employee healthcare and reduce costs through the use of technology. Meanwhile, Chinese payment platform Alipay launched a free health insurance service to provide users a certain amount of coverage every time they make a payment with their Alipay Wallet.

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Keeping Tabs To deliver value even before an ailment arises, adept organizations are turning to IoT to affect preventive care. More proactive wellness initiatives with the familiarity and daily use of an IoT device (think your phone, tablet, smart speaker), are meeting an increasing demand for personalized offerings from customers. With real-time monitoring for timely care interventions, tech can encourage more consistent, holistic health.

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It will be important for healthcare at large to become nimbler, find more creative ways to make regulatory environments work for them, and in the process, to adopt digital technologies to achieve better integration and make consolidation truly effective. Insurers could gain market share in new remote markets by leveraging mobile to offer health insurance, telehealth and a host of other digitally-focused tools that will ultimately contribute to top line growth.

COMMERCE GOES TO POT + As cannabis legalization continues to expand, the perception of its use case will be upended, opening the door to a new consumer mindset with grown up, sophisticated brands leading the way. With a federal stamp of approval on CBD, the non-psychoactive cannabinoid, the “hot sauce” of the category is likely to be infused in just about anything you can imagine. From small batch olive oils, vitamin supplements, skincare, you name it—if there could be an opportunity to provide an added benefit, companies will be open to exploring it. Wholly Holistic And more than just a cream or a salve, new CBD entrants to the space like Mox Mind + Body Care are viewing CBD as a more holistic way to care, both inside and out. Rather than just touting the allure of CBD, the brand plays up the power of ingredient combinations that work with the body—and not against it. Brands such as Mox are positioned to go beyond the niche, with a grown-up, sophisticated approach that is decidedly modern, unisex, and inclusive of needs. Mainstream Infusion From a global perspective, it’s not just for the little guy any more. Big companies are capitalizing on the opportunity with entrants like Constellation Brands (maker of Corona beer) and InBev (maker of Budweiser), announcing investments in as they begin to experiment with new products. All have their eyes on the explosion of Canadian

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cannabis. In a more health-conscious country, edibles present the greatest opportunity, with some estimating the Canadian edibles market to reach $4 billion by 2022.

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Every company is becoming a wellness company. More than just a pointed solution, cannabis is pushing industries of all types to reconsider the standard, and to explore alternatives that holistically support both physical and mental wellness. To play into this new intentional healthcare economy, companies will explore their own form of wellness offering, whether itâ&#x20AC;&#x2122;s the branding elements themselves, or innovating on a new product or experience to help consumers feel they are consciously cared for.

THE AGE OF ANXIETY + The world as we know it has become anxious. Devices discourage face-to-face interactions necessary for a healthy mental state. And that same technology drives employees to stay connected around the clock. People are ready to make changes, spending on high-price solutions to ease the strain. Zen at Your Fingertips In the realm of retail, products abound. Marketed as lifestyle goods through their anxiety-relieving qualities, products speak to a need to attain a true sense of zen that is beneficial to overall health. From white noise machines, adult coloring books, salt lamps and the explosion of weighted blankets—there is a small universe geared towards relieving the tension. Science of Sleep As part of the growing anxiety epidemic is an emphasis on understanding sleep. Tracking has become a huge area of sleep technology with devices from companies like Eight Sleep and Apple giving people a chance to diagnose their own sleep inhibitors. Meanwhile, brands like Casper and Leesa are strategically changing their frame of reference, disassociating themselves from the name “mattress” and opting instead for the umbrella category of “sleep.”

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Need to Retreat Meanwhile, many look to alleviate anxiety with travel, designed with clear intentions of aligning mind and body. Nature-based travel is one sector that has grown with abandon. For those who spend most of their time indoors, venturing outside will bring a sense of calmness in hectic times. Fitness purveyors such as Corepower Yoga are becoming travel companies in their own right, planning and providing mindful excursions that give â&#x20AC;&#x153;perspective in paradise.â&#x20AC;?

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If only one-in-six adults suffers from diagnosed depression or anxiety disorders, then there are five who have no need to be part of this million-dollar market. This may threaten to normalize mental illness, disrupting behaviors to make them a standard part of life, rather than something that requires medical attention. Healthcare brands that can address the root of the problem will gain trust in a sea of opportunistic products that may only provide a temporary solve.

“ W h a t we achi eve i nward ly w il l c h a n g e o ut er reali t y .”

- Plutarch Biographer & Essayist

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THE NEW LABOR + According to the most recent data from the Bureau of Labor Statistics, the national unemployment rate remains at an historic low of 3.7%. While this is great news for individuals, it means heightened competition between businesses to attract and retain the best employees. No longer is the focus just on the bottom line, but on a higher-order culture strategy that demands more diversity, greater compensation and work-life balance. As employee engagement reaches an all-time low, businesses are turning to the gig economy model. With increased turnover, contract work increasingly benefits many organizations, moving away from trying to keep employees around longer and instead reducing costs associated. Nanodegrees So how are individuals advancing their outlook in this era? Where technology drastically outpaces universitiesâ&#x20AC;&#x2122; ability to adapt, future workers look to nanodegrees. These programs offer certifications for tech-based skills, helping students personalize their education careers with greater flexibility. One nanodegree university, Udacity, offers business courses, data science, artificial intelligence, and autonomous systems, where students spend an average of 10 to 15 hours a week in challenging courses built to rival the big schoolsâ&#x20AC;&#x2122;.

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The Next, Next Chapter Meanwhile, the advent of multi-stage careers is taking shape as life expectancy continues to increase. With longer durations of a careers into our 70s and even 80s, comes more role and subject change, in order to stay engaged throughout. To hold onto employees during this journey, businesses will need to offer more career pathing, evolving environments and opportunities to upskill, relocate and more.

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Never before has the individual had so much of a say in the way they choose to work. There will continue to be a push and pull between employer and employee, driving a greater need for flexibility on all ends. Those who can create organizations that are fueled by values that are lived and breathedâ&#x20AC;&#x201D;both inside and outâ&#x20AC;&#x201D;will be primed to increase employee loyalty, tapping into the cause-oriented spirit of new generations.

OPEN SOURCING SUSTAINABILITY + As organizations work to tackle some of the world’s most pressing threats such as climate change, open source solutions might be the key to success. Traditionally, businesses have held their brightest ideas and most sensitive weak spots, close to the chest. But, by sharing their innovations or challenges for others to weigh in, individual questions can become shared answers. Ocean-bound No More In late 2018 it was announced that HP and IKEA had joined NextWave Plastics, a coalition to reduce ocean-bound plastics. Both HP and IKEA already have numerous initiatives focused on reducing their plastic consumption. But by joining NextWave Plastics, the brands pledged to share their learnings and technologies in “a collaborative, open-sourced and transparent fashion to create the first global network of ocean-bound plastics supply chains.” Transportation Data Sharing Another partnership leveraged data to streamline transportation. Ford, Uber and Lyft joined SharedStreets, a data platform designed to help reduce urban transportation issues. Operating in over 30 cities worldwide, the initiative aims to create shared, machinereadable standards for data such as curb usage and traffic speeds, enabling cities to make better investment and management decisions.

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Formula for Foam In the realm of retail, shoe brand Allbirds partnered with petrochemical company Braskem, to develop the first sustainable version of EVA foam, aptly called SweetFoam. Made from sugarcane, the cost-efficient material was a brilliant alternative to the typical production using fossil fuels. In the spirit of their “Mother Nature Made Us Do It” ethos, the brand demonstrated stewardship by making the formula open-source, meaning any company – in the footwear industry and beyond – has access to it.

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To tackle major socio-economic problems, it requires collaboration and unity on a corporate level. And while megabrands keep getting bigger, they are often still tiny players in the grand scheme of modern consumerism. By crossing the aisle, in more ways than one, organizations not only have the opportunity to benefit from the end solutions, but can strengthen their brands by association, joining forces and amplifying their voice with like-minded partnerships.

DRIVEN BY DATA + If data was the great disruptor of years past, in 2019 it will be king, driving evolved business and advertising strategies. According to IDC (the International Data Corporation), investments in IoT devices are expected to reach $1 trillion by 2020, and with the rollout of 5G networks, high-end IoT applications linked to automation (AI, VR and more) will become supercharged. With these evolutions in connectivity, mobile ad spending will skyrocket, uncovering a wealth of new insights on consumer behavior and purchasing patterns. Regulators, Mount Up While the tracking of consumer patterns persists, data privacy regulations are expected to proliferate worldwide. One potential disruptor is the EU General Data Protection Regulation (GDPR), establishing a global standard for increased scrutiny. And while individual pressure to have privacy over data is a driver, the real pain point is linked to the continued incline of cybercrime and data breaches. Always Watching In the workplace, employee data will be used to serve non-traditional initiatives. Historically, companies look to employee data to inform recruitment, retention, performance management and more. But in the age of social media, some companies, well-intentioned or not, are analyzing communication patterns on internal systems, tracking geographical locations, and giving employees health trackers to collect health data.

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Hail to the Chief From an organizational standpoint, data is changing the networking landscape. The ‘I’ of ‘information’ is shifting the CIO, to become more identified with leading a company’s data and information strategy rather than infrastructure and security. Just like digitization and data transformed the CMO role, the CIO adopts knowledge as power, and those who can most amass it and actionize it, will win.

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In recent years, big data was seen as a far-off phenomenon. Now, a breadth of data and analytics tools cater to businesses of all sizes, with vital learnings to help businesses stay competitive and optimize operations. But where quantitative learnings tell one part of the story, brands who fail to lean into more qualitative insights will continue to feel a disconnect from their employees and their customers, missing out on critical emotional connections in the process.

Lo o k i n g To T he Fut u re

At BrandJuice, we’re always thinking about what’s next, with Futurefluence strategies to fuel innovation, and insights to make it actionable. How can you alter your course, and trace back to the origins of your customer’s wants and needs? We can help connect the dots, powering purposeful strategy, uncommon innovation, and artful creation.

Le t’ s T a l k

Andrea Stone M a na ging D irec to r

andrea.stone@brandjuice.com

Alexandra Hilker D irec to r

alexandra.hilker@brandjuice.com

b ra ndj uic e. c o m