Global Edition: What Are the Key Trends Shaping Consumer Psychology in 2021?
Plus: How brand collaborations are defining experiences, the golden era of celebrity fragrances, and our TikTok Take.
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As the Coronavirus pandemic approaches its one-year anniversary, the psychological impact on consumers can be analyzed through a series of broader social movements and trends. Brands cannot ignore the influence of 2020 on consumers as they venture into the new year with no immediate end to the virus’s global spread in sight.
By early April 2020, more than 3.9 billion people — half of the world’s population — were facing lockdown restrictions of varying severity, which were eased and have now been reinstated in places such as Germany, the United Kingdom, and the northern Chinese city of Shijiazhuang. With so many people spending more time confined to their homes over the last year, internet use has skyrocketed, and brands have been forced to accelerate efforts at digitalization. There are now more than 4.66 billion internet users, representing more than 59% of the world’s population. And those people are talking: 2020 was undeniably the year that global conversations took center stage.
Kate Nightingale, founder and head consumer psychologist at Style Psychology, told CCI that 2020 has fueled activism and wellness: “These will continue to be strong as they are less of a trend but rather a manifestation of reevaluated identities. Brands should therefore pay vivid attention to these but only utilize them when it’s truly authentic to their brand identity.”
The prevalence of social media has brought about a wider global focus on philanthropic issues. Online activism is surging, making it necessary for brands to pay attention to what consumers are saying and be more transparent than ever before. Below, we highlight three trending movements that show the impact of Covid-19, and look at the state in which consumers are journeying into 2021.
Activism
Throughout the lockdowns, people had little else to do other than scroll social media, which led to a rising awareness of global news and issues. So when #BlackLivesMatter started trending after the death of George Flloyd at the hands of Minneapolis police in May 2020, the movement grew into an unstoppable global force, with donations and conversations flooding feeds. An estimated 28 million accounts (including brands) posted black squares in solidarity on #BlackoutTuesday the week after Floyd’s death. Despite a range of slacktivist criticism, people around the world were getting involved, from Brazil and South Korea to France and Germany. Searches for the term “how to be an ally” exceeded those for “how to be an influencer” on Google in 2020.
BLM is just one of the 2020 conversations that illustrate the current global consciousness, as conversations on social media turned to focus on politics, the desire for progress, and humanitarian issues. Consequently, brand activism has never been more welcome. According to a recent report by Sprout Social, more than half of consumers expect companies to go beyond corporate statements and donations to announce new initiatives, goals, and involvement in industry-wide coalitions.
Brands can no longer present themselves as indifferent to trending political or social issues, because in 2021, consumers’ purchasing decisions are an extension of their own values.
Wellness
Google also reported that searches for “insomnia” reached an all-time high in 2020, but of course, you don’t need a fact like that to comprehend the scale of suffering that has accompanied the pandemic: from the deaths of loved ones to soaring unemployment rates to the mental strain of isolation. As a result, glossy advertisements based on escapism and aspiration hold less appeal, and brands face the obligation to put support, care, and kindness at the forefront of their marketing efforts.
In China, some 35% of the population experienced mental distress within the first month of the nation’s Covid-19 outbreak, and this increased over the following months. The rest of the world followed a similar course, with the term “doomscrolling” becoming part of the common vocabulary.
Through all the mental suffering, the $4.5 trillion-plus wellness economy thrived. People looked for ways to relieve their stress, resulting in a boom in sex toys, yoga, and meditation — the meditation app Headspace even landed its own Netflix show.
In response to this interest in wellness among consumers, brands must offer relief, support, and assistance through opportunities for self-care, further personalizing their marketing strategies for 2021.
Resale
In the early days of the pandemic, fears over hygiene led to some wariness over whether the fashion resale sector could maintain its burgeoning success. But as unemployment rates soared, more people began turning to reselling as an alternative source of income. Fashion United reported that French resale platform Vestiaire Collective saw orders rise by 54% in May compared to the pre-pandemic February average, and British shopping app Depop saw a 163% year-on-year increase in new app signups and a 200% traffic growth in the U.S. market. By the summer of 2020, ThredUP and Global Data were projecting that the $28 billion resale market would grow to $64 billion by 2024. Despite lagging behind, China’s secondhand shopping scene is finally taking off as well, rising by around 70% since 2018, according to MobData.
In terms of consumer psychology, this movement emphasizes an awareness of sustainability and desire for cyclical fashion, as activism spreads online. In addition, the resale fashion industry aligns with the do-it-yourself, p-commerce preferences of 2021 consumers.
In sum, Nightingale notes that while there has been increasing hope that the pandemic will end before long, “this kind of anticipation however might mean tabling some consumption decisions until more clarity can be achieved. How can brands use that motivation to support relationship building without necessarily expecting large purchases at this stage? That's the question brands should be asking themselves."
- by Sadie Bargeron
Mentioned in today’s newsletter: Alibaba, Bottega Veneta, Depop, Headspace, NBC, Netflix, Roku, Slack, Tencent, Vestiaire Collective.
How Collaborations Are Defining Experiences in China
China’s Gen Z and millennial consumers seek novel products that stand out from the crowd, fueling a rapidly evolving culture of innovative “mega-collaborations” between brands.
While many brand pairings may appear extreme or even bizarre, such items are widely talked about, and their freshness and limited-time appeal can tempt young consumers to at least try new, (often affordably priced) products—which also make them attractive candidates for posting on social media, further helping to expand the reach of brands among that valuable demographic.
Register today to join the Jing Group on Tuesday, January 26 at 10 a.m. EST / 3 p.m. GMT for a live webinar exploring “How Collaborations Are Defining Experiences in China”.
During the hour-long broadcast, presented by cross-cultural agency TONG, we’ll discuss why—from a consumer standpoint—brand collaborations continue to resonate and accelerate in China, and the value for all parties involved, including brands in and out of China collaborating together.
In our discussion, you’ll learn:
The importance of collaborations for your 2021 China marketing strategies
Distinct characteristics of China-focused collaborations
How collaborations continue to be creative by driving forth creativity and innovation
How brands can build upon collaborations with experiences—both digital and physical—and content for wider reach and greater impact
Plus, ask questions and interact with Jing Group editors and guest speakers
This digital event is a continuation of Jing Group x TONG’s “Tracking the Trends for 2021” content series. All Registrants will receive a copy of our joint Jing Group x TONG white paper following the webinar’s conclusion.
TikTok Take
TikTok latest to launch LiDAR. Following Snapchat’s footsteps, TikTok has introduced a LiDAR-powered effect compatible with the iPhone 12 Pro and 12 Pro Max, TechCrunch reports. LiDAR (light detection and ranging) allows for improved sensing of a user’s surroundings, measuring how long it takes for light to reach an object in the space and reflect back, enabling some fairly impressive augmented reality (AR) experiences.
Taylor Lorenz rounds up the year on TikTok. The New York Times internet culture reporter penned an essay discussing the seismic influence that TikTok had throughout the pandemic year, from its impact on the entertainment industry to influences on shopping behaviour, and its role in activism, cultural trends, and global connectedness.
Vogue’s 2021 content predictions: “More glamour, less fast fashion. More sustainable hacks, less steps to shoppable content.” British Vogue reflects on 2020’s biggest TikTok trends to predict what we are likely to see more of in the year ahead.
TikTok regained its position as the world’s most-downloaded app. December saw Douyin/TikTok take back first place from WhatsApp. The video app was downloaded more than 56 million times that month, with the largest share coming from China with 11%, followed by the United States with 10%.
Global News
The Trump administration is considering taking a parting shot at Chinese internet giants Alibaba and Tencent by adding them to a list of firms barred from American investment. Wall Street Journal
Streaming platform Roku is in talks with the shuttered Quibi to acquire its content library, which includes more than 100 original programs. New York Times
An innovative approach to mapping taste across a continuum of cultural savvy and price. The Sociology of Business
Six case studies highlighting how shopping experiences were transformed in 2020, from Snapchat stores to video games. Fast Company
And looking ahead to the future of offline retail, entertainment will reign supreme as the promise of more enjoyment will be necessary to draw consumers into physical stores. Fast Company
The Covid-nesting era is fueling a boom in celebrity fragrance products for the home, with offerings from stars ranging from Anthony Hopkins to Drake and Jennifer Lopez to Michelle Pfieffer. Glossy
A brief Slack outage on the first day back to work in 2021 turned into a meme that brands got in on via social media. Ad Age
And stepping back from social media, Italian luxury fashion house Bottega Veneta deleted all of its branded accounts across Instagram, Facebook, Twitter, and other platforms, though it may be a short-lived experiment. Vogue
Netflix is expanding its production of content in South Korea, leasing studio space at two facilities near Seoul, where it will film Korean movies and series. Variety
NBC’s Peacock streaming service is relying heavily on fans of “The Office” to pay depending on how much of the show they want to watch, but viewers have been frustrated by interruptive ads on its supposedly ad-free premium subscriber option. The Verge
Business is booming for podcast-related merchandise as listeners of popular shows such as “Stuff You Should Know” and “The Office Ladies” are keen to support their creators. Wall Street Journal