The classic fitness lifestyle involved strength and endurance training. A healthy lifestyle now involves adopting a wide range of habits integrated into daily life, from food intake, to physical and mental fitness, to specific skincare, for example. Mental wellness, self-care and mindfulness have become prominent. As well as apps that make it easier to act healthily in everyday life, new technologies, products and services are also helping to inculcate healthy habits (e.g., also regular early detection screenings to check for certain illnesses such as cancer).

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Consumer behaviour, price sensitivity, and perceptions of value are in constant transition. New trends demand re-evaluation of consumer pricing strategies and market positioning — not just once but continuously given the highly dynamic macroeconomic, political and labour market environment. Today’s economic climate and pricing management pressures present challenges not seen in decades. Old pricing models therefore need to be rethought. New insights, for example from neuroscience, can help to define pricing strategies and understand how customers‘ unconsciously perceive prices.

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Consumers are now prioritising a special experience, whether shopping for gourmet food or in an exceptional store or going on a foreign holiday. What they are buying is excitement and great memories. These exceptional experiences vary widely and depend heavily on the cultural context. Many businesses are now trying to create these special experiences in stores or events or even in the virtual world.

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As the consumer population diversifies — by race and ethnicity, or sexual orientation, for example — brands need to consider different backgrounds and experiences in their messaging. This includes images as well as written and audio language. In order to prevent discrimination and encourage individual talent, brands are also expected to consider diversity in their provision of products and services. Consumers want to support brands that represent them and their values and they react much more sensitively than in the past to stereotyping.

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The platform economy enables third-party companies and individual contract partners to form a digital ecosystem. This connects with customers digitally and also allows small retailers or private individuals to offer their products and services to a large number of potential customers. Moreover, ownership and permanent possession are not required for all goods; sharing economy platforms make rental easier. Resources are therefore used in a more efficient way, with more people able to enjoy the benefits of a certain good.

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Functional foods have health benefits for consumers and related groups (e.g., pets) beyond their pure nutritional value. They are said to improve health, increase well-being and even reduce the risk of disease. Functional foods cater to the rise of wellness-focused diets and offer great possibilities for marketing messages as well as scope, to a certain degree, for higher prices. The possibilities range from so-called superfoods to products enriched with protein, probiotics or other ingredients. The global market for functional food and beverages is expected to achieve substantial growth in coming years.

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As the cycle times for technological innovations shrink, companies have begun to explore new ways to innovate and increase collaboration within ecosystems. In a business ecosystem companies make strategic partnerships with other firms in the same or a different industry to work on products and services that could improve and disrupt their R&D. In this way a business gains access to external innovation and expertise. A functioning business ecosystem requires a collaborative, innovative and open mindset and a new operating and governance model with the involvement of collaborators.

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Both consumers and brands are increasingly focusing on premium products: this trend is called premiumisation. It means brands can achieve higher prices and often higher margins, too. But the added value for the consumer must be clear - whether because of the higher quality of the product, or greater durability, or the service related to it – or simply the brand’s reputation. With more and more products available in different price ranges, consumers can spend more on the things that are important to them while saving on other items. Consumers’ need to demonstrate they are successful remains a driver of premiumisation.

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Co-Creation with consumers brings producers and consumers together on an equal footing. The consumer becomes at the same time a producer by interacting with his favourite brands via social media, being an active part of marketing campaigns, or even actively providing input on the development of new products. Many successful companies have profited by expanding innovation outside their organisational boundaries, leveraging the ideas from and needs of their clients.

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For some years the number of consumers with high expectations for sustainability in what they consume – environmentally, socially and ethically – has been rising strongly. This offers companies a great opportunity to position themselves to serve these customers. But there is also a danger because the brand’s reputation can quickly be damaged if consumers suspect greenwashing. The fact that a growing number of consumers are now following the “less is more” principle, and the evolving notion of a post-consumption world are also developments that should make businesses rethink their strategy.

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Responsible sourcing means that businesses take into account social and environmental considerations when managing their relationships with suppliers. Growing consumer expectations of ethical procurement practices and new legislative developments are forcing companies to dig even deeper into their global supply chain. This may include independent third-party audits, risk assessments and reporting, and regular reviews of practices and strategies.

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The idea of the circular economy is to prevent waste; its inspiration is natural ecosystems and the nutrient cycle. Once products have been used the aim is to repair them or turn them into secondary raw materials and put them back into the production cycle. Second-hand goods extend the life of products; although they are not fully circular, they are also part of this idea in a broader sense. If recycling enhances the value of the product, it becomes upcycling, itself a rising trend. The sorting of waste and identification of materials is complex and requires good data. Various data-based AI applications, such as image recognition technology and robotics, are helpful.

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Extended Reality (XR) covers all technologies like AR (Augmented Reality), VR (Virtual Reality) or MR (Mixed Reality). Using the right kind of device, such as AR glasses or a VR headset, digital information or virtual objects can be inserted directly into the user’s field of vision. Users can then interact with the virtual objects by click, voice or gesture control. AR makes it possible to add many types of additional information – special offers, ingredients, background on logistics and production processes. This offers a vast range of possibilities for consumer businesses.

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Web 3.0 is the successor to the current, mobile-powered Web 2.0. One of the main differences will be the shift in experience in which interaction with information will be transferred away from screens into physical space, using smart glasses, voice and gesture. For some time now several firms have been working on the development of a (or several) virtual parallel worlds known as the Metaverse, which is part of Web 3.0. With the help of avatar generators and sophisticated VR worlds, we will be able to design a virtual self that can take our place in video games, concerts or meetings, buy real or digital items, and meet friends. This opens up a whole new world for the consumer industry, including virtual flagship stores, products for avatars and much more.

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While the current internet is based primarily on visual and audio impressions, other senses such as taste, smell or haptics could also be virtually experienced in the future. The first attempts have already been made with a virtual cocktail, the Vocktail. It is supposed to conjure up cocktails from water - digitally simulated by creating virtual flavours, smells and colours. The inside of the glass contains the electronics needed for multisensory stimulation, including fragrance cartridges, LEDs and electrodes which are supposed to provide the salty, bitter or sweet taste. The main drivers for the Internet of Senses include immersive entertainment as well as online shopping.

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Emerging markets like Brazil, India, Indonesia, Mexico, Thailand or Turkey offer huge potential for consumer companies. The growing middle class in these countries is increasing the interest in high-quality goods. This offers companies many options to enter, expand and collaborate – and not just in the luxury segment. But, despite these great opportunities, entering and growing in emerging markets is a considerable challenge and one with which many businesses struggle.

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Supply chains are made up of complex, globally connected systems which are highly coordinated and vulnerable to disruptions of various kinds. Even small, local errors can bring a global supply chain to a halt. The huge impact made by a major crisis, COVID-19, is all too evident at present. Resilient supply chain management therefore aims to build extremely robust supply chains that can withstand disruptive influences, whether they are known currently or not. Resilient supply chains should be flexible and able to adapt.

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Social selling describes the promotion and direct sale of products via social media. Customers can interact directly with the company through comments, likes and private messages. In this way social commerce becomes a consumer experience on a platform that blends inspiration with buying. Its advantage lies in direct and easy consumer access, the large number of potential customers and the low number of clicks required to move from inspiration to purchase. Influencer videos play an important role, and live streamed events can have a huge impact, especially in Asian countries.

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Mobile payments, crypto, smartwatches, AmazonGo: the range of payment options is increasing and both brands and retailers needs to adapt and offer the most convenient options for their clients. In online stores, especially, payment is the most important step – and the point where you don't want to lose a customer. One-click checkouts or payments by voice command are therefore on the rise. Payment methods such as “Buy Now Pay Later” are also increasingly important and offer new possibilities to gain additional customers.

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The final phase of delivery of a product from the retailer to the recipient is vital. This so-called “last mile” is very costly for retailers and strongly influences customers’ rating of the overall service. This means companies are trying constantly to make delivery times even faster, including same-day delivery, and to improve the customer experience by adding new services, such as real-time notifications, flexible amendments to the delivery address, storage in parcel boxes and eco-friendly delivery.

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Customers want a uniform shopping experience across all channels as they usually combine them – for example, starting their journey by gathering information online before turning to another channel to obtain more detail and finally buy the product. The omnichannel approach allows the activities in individual channels to grow into a single, more substantial whole. Omnichannel strategies are complex and data-intensive. All the data, both on individual customers and on product ranges, has to be made available to all other channels in real time. Customers who find the experience positive are far more likely to use it again to buy other products and services.

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Instant shopping describes the possibility to almost real-time buying of items you see in real life or on a screen. Consumers can freeze a Netflix show, tap on a dress and directly buy it via their preferred provider. The same will be possible via smart glasses. Advanced visual AI will instantly recognise a product you see and show buying options you can directly execute via your personal eye-blinking code.

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Voice Commerce uses speech recognition technology. It reduces end-user dependency on hardware such as the mouse and keyboard by using voice commands to search and buy products online. A common example is Amazon’s Alexa smart speaker. Devices learn more about their owners over time and use the data to personalise the shopping experience. The more data obtained about consumer interactions via smart speakers on a growing number of connected devices, the better the insights and offerings for the customer. Voice commerce needs to be seen as part of a broader digital commerce strategy and involves several challenges related to data privacy and the accuracy of the underlying Artificial Intelligence (AI).

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Artificial Intelligence (AI) has enormous potential to change a wide range of tasks and processes. Whether it is writing product descriptions, social media content, analysing data or creating images and videos, AI will transform many aspects of the consumer goods industry. ChatGPT, DALL-E 2 and Midjourney prove what is already possible today – companies should deal with this technology and test where, how and to what extent its use makes sense. The computing capacity of AI will increase exponentially and the results will become more and more amazing. This also harbours risks and will probably be regulated in some way in the future.

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Everyone generates a huge amount of data every day. It may include all the clicks on websites, social media, location data, sensor data or even emotion or voice data. And this data can be used to formulate detailed profiles. Consumer profiling involves smart analysis of the data in order to gain deeper understanding of customers. Combining data from a range of sources makes it possible to draw conclusions on products and markets and the behaviour of specific target groups. But companies must navigate the issue of customer privacy with care.

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Supply chains are made up of complex, globally connected systems which are highly coordinated and vulnerable to disruptions of various kinds. Even small, local errors can bring a global supply chain to a halt. The huge impact made by a major crisis, COVID-19, is all too evident at present. Resilient supply chain management therefore aims to build extremely robust supply chains that can withstand disruptive influences, whether they are known currently or not. Resilient supply chains should be flexible and able to adapt.

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Hyperpersonalisation is the most advanced way in which brands can tailor their marketing to individual customers. It’s done by creating custom and targeted experiences through the use of data, analytics, AI and automation. Through hyperpersonalisation companies can send highly contextualised communications to specific customers at the right place and time, and through the right channel. In this way the interactions between brand and consumer become more relevant. Spotify’s recommendations are an example of hyperpersonal recommendations. They change in real-time in response to the user’s behaviour and offer a personal experience and added value.

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The original Blockchain is open-source technology which offers an alternative to the traditional intermediary for transfers of the crypto-currency, Bitcoin. The intermediary is replaced by collective verification of the ecosystem, offering a huge degree of traceability, security and speed. This technology has huge potential to disrupt many industries. Blockchain can be applied not just in Finance but in any multi-step transaction where traceability and visibility is required. Supply chains are a notable use case. Blockchain could be used to manage and sign contracts, audit product provenance and prevent counterfeiting.

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The store of the future is all about customised reliable information about products like nutritional information, origin, carbon footprint or personalisation options. Interactive shelves with large screens, sensors and motion gesture control offer an engaging and responsive dimension to the shopping experience. They will help customers to make an informed decision and find the desired product. From a business perspective, smart screens allow vendors to deliver promotional content, gather new consumer insights and interact with customers directly in-store.

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Fully automated stores with robots capable of refilling store shelves and managing inventory are expected to be realized by around 2040. As with the other industries we have examined so far, the workflow and layout of retail and food service industries are designed to optimize human performance. Application of robots can be facilitated by redesigning and optimizing the workflows and work environment for the operation of robots. Robots can do many things that are impossible for human beings (like turning their head 360 degrees, working without feeling fatigue, moving at high speed, etc.).

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