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On the hunt for the event industry’s agenda in 2022? We’re serving up the hottest event trends roaring through the world right now – grab your ticket and read on.

The cost of living crisis is becoming ever harder to avoid. Consumers are feeling the pinch and looking to cut their spending, but they still want life’s little indulgences and the chance to go out and enjoy themselves. So much so that the fastest-growing planned purchase year-on-year is concert tickets.

So while budgets might be lower, going out is still on the agenda. But what types of events or festivals are consumers interested in, and what will they do when they’re there? 

Tune in as we update you with the latest insights from our June 2022 Zeitgeist research, including data from our newest market additions; Australia and Singapore.

1. Film, music, and food are the big 3 – but others are important too

As you might expect, live events are mainly a young people’s game. Gen Z/millennials are far more likely to attend events/festivals than their older counterparts. 

But the preferred types of event stay fairly consistent across age brackets. 

Food & drink, film, and music festivals are the top three choices across all generations. But dig deeper and you see what kinds of events resonate most with the different age groups.

A quarter of Gen X are going to comedy events, and nearly a quarter of baby boomers are attending arts events. Among Gen Z/millennials? Gaming events, which 2 in 5 say they’re attending.

2. Home purchases are declining as consumers get outdoors

Across a host of key metrics – like use of public transport and restaurant/cinema visits – engagement is still below pre-Covid levels, but they’re getting ever closer to that benchmark.

It’s a trend that’s reflected in consumers’ purchase behavior. Year-on-year there’s been increases in purchases of hair styling tools and products, make-up/cosmetics, and fragrances. For planned purchases, there’s been notable drop-offs for white goods, home furnishings, and garden furniture, but an increase in plans to purchase vacations and travel tickets.

While home comforts and upgrades were front-of-mind through the pandemic, they’re now being disregarded as consumers make up for events that they missed out on.

3. Different events have different motivations

The most popular reasons consumers go to festivals are to watch live performances, spend time with friends, or to meet new people. 

But these priorities vary, depending on the type of event consumers are attending. 

Let’s take film events as an example. Attendees stand out for buying official merchandise, watching live performances, and learning to do something new. Food & drink festival attendees stand out for joining other activities/entertainment, attending for the food & drink (surprise surprise), and interestingly, to escape their day-to-day lives.

With a range of motivations and consumer needs in the mix, it’s essential to use the right research to engage with your audience properly.

4. Japan may have some untapped audiences

We mentioned earlier how young people are more likely to be interested in and go to live events – but one country is a notable exception. 

In Japan, younger consumers are actually less likely to attend live events/festivals. Japanese consumers also have some of the lowest global interest in attending live events, even though they’re still very interested in things like music. They also rank above the regional average for interest in fashion and fine art, even if their global figures are low.

Small events are the preferred choice for 60% of Japanese festival attendees, which reflects something of the country’s culture. Experiences are enjoyed in terms of the level of care received, where politeness and respect are highly valued. It’s defined by the term ‘omotenashi’, referring to the Japanese spirit of hospitality. The trick is to offer experiences and events that are much smaller and more intimate. 

5. Gaming events have huge potential

We’ve written before about how important gaming is as a cultural space to young people, and live events are no different. 

40% of Gen Zers plan to go to a gaming festival – still a bit behind music (48%) and film (49%), but it’s a category to watch, particularly as many of the biggest events are still relatively new.

Attendees of gaming festivals tend to be highly engaged fans, which is reflected in their behavior at events. In fact, they’re over 50% more likely than the average festival attendee to buy official merchandise at an event, and nearly one in three gaming event attendees are planning to.

It’s a loyal audience that’s keen to upskill. 29% say it’s something they’ve always done, while 48% attend to learn to do something new.

6. Hardcore fans will lead the revival 

Festival-going fans are more likely to be attending more events this year, but more importantly – they’re also more likely to spend when they’re there.

Fandom can be a powerful force for brands, especially controllers of media IP, but it’s an under-researched topic. In our latest study, we’re able to show what types of media convert the most consumers into fans. 

Comic and film franchises have the most interest (no wonder, given the popularity of Comic-Con), but films are the absolute standout for fandom. Something about the big screen makes more people describe themselves as fans, much more than live-action TV. Gaming is another type of media where a large proportion of followers declare themselves as fans. 

The most popular reason for being a fan is to feel part of a community with a common interest, but there are other factors like relating to creators/fictional characters, and having a sense of identity that are important. It’s an insight that event marketers need to account for, showcasing the event to be more than an experience,  and actually fostering a sense of inclusion and community from the get-go.

This impact starts long before the event itself. 40% of fans attending festivals have interacted with an official account on social media, 34% have interacted/posted on a community forum, and read a newsletter. To get them on board, even if fans in general aren’t always going to attend events, making them feel part of something bigger than the event itself can help to harbor the fan relationship.

Key takeaways

• Consumers are ready to get back out there. Interest in attending events this year is on the rise, for events both indoors and outdoors. But it’s not all about attending huge festivals, and budgets will be hit by cost of living concerns. 
• Although it’s generally a younger interest, festival attendees of all ages want to feel valued when they head to an event, and that experience starts long before the event itself. 
• Gaming is not a bedroom hobby – it’s something that has a sizable demand for live events from committed fans. 
• Attendees want to feel part of a community, and event planners need to focus their marketing efforts through social media, newsletters, and beyond, to make them feel part of something bigger.

There’s a lot of talk about who will be the first to use the metaverse or which markets show the most promise. What’s the big opportunity here? And how can brands get involved?

Our data already tells us a lot about what you might need to know, but it’s important to remember that there are no hard and fast rules just yet. That’s why we’re going to talk about a market where metaverse adoption doesn’t look likely, but actually holds a lot of potential: Japan. 

Using data from our Zeitgeist study and our Core survey, we establish some of the reasons why it’s important to look at the bigger picture, uncovering facts about consumers in Japan that may just surprise you.

Interest in the metaverse isn’t necessarily low

General metaverse interest is a good indication of where the concept may or may not succeed – at least in its early stages. Just 16% of consumers in Japan are interested in taking part in the metaverse, so marketers are likely to look at countries like India (57%), Brazil, (42%), and China (30%) with more anticipation. 

But Japan isn’t at the bottom of the list. In fact, out of 9 markets, consumers here are somewhere in the middle, leading against the likes of the US (11%), the UK, (12%), and Germany (13%.) 

Still, things aren’t as straightforward as interest; there are plenty of reasons why Japan might be overlooked as a metaverse candidate.

Why people might rule out Japan

For one, most of the interest in the metaverse comes from younger audiences. While 33% of consumers in 9 markets are interested in participating in the metaverse, the majority are Gen Z or millennials, with 42% saying this compared to just 22% of Gen X and baby boomers. In Japan, where over half of the online population fall into these older segments, this could pose a problem. 

Another thing that stands out is gaming. It’s considered very important in the context of the metaverse. A lot of popular games like Fortnite, Minecraft, and Roblox, are frequently touted as proto-metaverses in their own right, and the concept has been described as the next stage in gaming’s evolution. 

For Japan then, a country that some of gaming’s biggest brands call home, it would seem like the perfect combination. But that’s not necessarily the case.

Gaming is actually less popular in Japan than you might think; consumers are 24% less likely to be interested in gaming than in other markets, putting them 42nd out of 48 countries. 

Then there’s the issue of tech. The country has a reputation as a tech leader today, but consumers here are 57% less likely to be interested in it – ranking them bottom of the list worldwide for saying this. 

That’s coupled with the fact that they fall below the average for following the latest tech-related news or buying new tech products as soon as they can. 

That could pose a real issue for VR, which is often depicted as going hand-in-hand with the metaverse. Ownership sits relatively low worldwide, but consumers in Japan are among the least likely to own this kind of device.

So it might seem like an open and shut case; consumers here won’t necessarily go for this kind of technology and brands might, understandably, have reservations about chasing opportunities here.

But our data enables us to go deeper, considering more nuanced reasons behind why Japan might actually be a more suitable metaverse candidate than you might think.

Japanese people value anonymity online

Consumers in Japan rank second globally for saying they prefer to be anonymous online. Due to prevailing cultural norms in Japan, respondents here often refrain from expressing strong opinions. So their emphasis on anonymity is clearly part of something much deeper. 

Of course, this could be more to do with privacy but the two don’t always go hand-in-hand. That’s why it’s important to test it against trends in other markets when trying to make sense of this, in this case we looked at Spain and Poland.

Each rank highly for their attitudes to anonymity (39% and 41% respectively) but are also high on the list for saying they worry about how their governments track them online (30% and 36% respectively). 

In contrast, consumers in Japan are actually less concerned, with just 12% saying they worry about government online tracking – ranking last out of 48 markets. The same can be said about how companies use their personal data online; Spain and Poland rank near the top, Japan remains near the bottom. And the same is true when looking at other privacy behaviors too.

So these behaviors aren’t necessarily about privacy. They’re down to cultural differences instead.

Anonymity can be liberating in Japan

Our data suggests consumers in Japan are more reserved. Compared to the average, respondents here are far less likely to say they use the internet or social media to share opinions, or post about their daily life. They’re also 80% less likely to say standing out in a crowd is important to them – something that resonates even among the youngest consumers here. 

It’s possible that, with more anonymity, consumers here feel more comfortable expressing themselves freely. There’s more evidence of this in their social media preferences; private messaging service LINE isn’t just the country’s most popular platform, it’s their favorite too (35% of social media users say this.)

This not only has huge ramifications for the metaverse’s potential in Japan but how they might use it too.

The metaverse could be the place they feel most comfortable

While it’s something of a cultural norm for consumers in Japan to be less expressive in-person, going online is a different story.

It’s not uncommon for people to behave differently online. The majority of consumers still prefer to be themselves than an online persona (83% vs 17%) and it’s the same in Japan (84% vs 16%). 

In an entirely virtual space where people can customize their appearance and, effectively, live out alternative lives, the metaverse could give more guarded users a place to truly express themselves.

While over a fifth of consumers here say they’re reserved when interacting in person, this falls to 17% online. That might not sound like much but, when compared to the other 8 markets, Japan leads outright for in-person reservation.

Among Gen Z and millennials the gap is even bigger; 24% say they’re reserved in person compared to 17% online. As the demographic most often associated with early metaverse adoption, it’s important to make sure these spaces accommodate them.

Over 4 in 10 of those interested in the metaverse here say they’re keen on meeting new people while using it, so it’s not as though shyness is going to stop them socializing; the platform they use just needs to be inclusive and accessible for everyone.

We’re already seeing diversity being oven-baked into the metaverse, such as Clinique’s Metaverse Like Us initiative, where there’s a huge focus on the first users to create a safe environment.

There are other behaviors worth noting here. Consumers are less likely to feel nervous online, while being twice as likely to say they’re curious online than they are in person, so the metaverse really opens the door for anyone to feel included.

Popular in Japan are Babiniku’s; where content creators (often, but not exclusively males), masquerade as a feminine, anime-style character. According to research, this is often a positive experience for participants, one that can recover their self-esteem.

It’s just one example, but it’s illustrative of how different consumers might feel more comfortable online than in real life.

Japan offers important lessons for metaverse marketers

Plenty of brands are already laying out their plans for the metaverse but our data reminds us, once again, that a one size-fits-all approach isn’t going to work. 

Meta, a leading name in this space, made that perfectly clear:

“It will be created by people all over the world, and open to everyone.”

For this space to be truly inclusive, it needs to accommodate all kinds of people, and what we’re seeing in Japan cements this. Sometimes it’s about more than different appearances, backgrounds, or ethnicities; it can be deep-seated, cultural and personality-based too. Cultivate this kind of environment, and people can experience the metaverse in a way that makes them feel seen.

In March 2021, 1,400 new words and revisions were added to the Oxford English Dictionary. Among them was the term ‘body positivity’.

Conversations around body acceptance have been lurking in the background for decades, but they’ve never happened on this scale.

The latest branches from #BOPO (which is online shorthand for body positivity) have brought acne, baldness, and body hair into the limelight, and various companies are working hard to create products that suit every need.

Beauty, fashion, and lifestyle brands all have natural links to this movement. For those wanting to stay in the know or take part, read on.

How the fashion industry’s doing

On the whole, people are impressed by the fashion industry’s progress and many say it’s much-improved. 

Over 3 in 5 consumers feel retailers are better at catering to all sizes than they used to be, and a similar number agree that brands are taking positive steps toward body inclusivity. But we still have a way to go.

Only half feel the fashion industry is truly inclusive, and those who feel represented in clothing ads still make up the minority (45%). 

Working to change these stats isn’t just the right thing to do, it can have a major impact on a company’s, and the overall sector’s, reach. Tellingly, people who think the industry is size inclusive are more likely to be interested in fashion and buy clothes monthly.

What people think about body positivity

Body positivity is helping the fashion industry meet its inclusivity goals, but it could be executed even better.

The movement isn’t just about size, it’s about normalizing all bodies. Yet, it’s being received differently by certain groups. Ironically, it’s those who don’t line up with traditional beauty standards that are most wary about body positivity.

This might be because #BOPO campaigns often leave them out. Research shows that most social media posts which use the movement’s hashtags feature young, white, non-disabled females. Plus, VP of Weight Watchers Amy Keller Laird has noticed that its leading ambassadors are all 33 or younger. It’s therefore not surprising that the bulk of 40-64s will take more convincing. 

Body positivity also resonates more with fitness fans than those who don’t have the time, energy, or means to squeeze in regular workouts. 

Off the back of this, some feel that plus-size women are starting to get “the short end” of this movement. Musician Lizzo argues that body positivity has a habit of celebrating medium and small girls, and others point out that the models used for plus-size campaigns are often mid-size. 

The movement has a lot of potential for fashion players, with plenty of consumers keen on inclusive messaging. They just want to know that a brand is genuinely working to normalize bodies that face ongoing stigma, and they’ll have certain things in mind when drawing conclusions. 

Show, don’t tell

Crazes like TikTok’s ‘weight looks different‘ trend are often the first things we think about when someone mentions body positivity. They’re a huge part of the movement, but participating in them isn’t the main change consumers want brands to make.

Many retailers have adopted BOPO messaging in their marketing, and people want this content to be backed up by action. 

To start with, not all in-person customers feel welcome just yet, with around half of Western consumers saying they enjoy shopping for clothes in-store. 

Plus-size mannequins have caused a bit of controversy lately, but our data shows they’re in high demand. 

Most US women describe themselves as a normal weight (47%) or overweight (36%), yet past research shows most mannequins represent underweight women (a category only 3% identify with). 

This means that few people see themselves reflected in brands’ displays right now, and a few simple swaps could help more shoppers relate to the story they’re trying to tell. 

The same is true of ads. 56% say they’re more likely to buy from a brand when they see someone their size in an ad, and 30% want retailers to use models that look like them. 

Beauty and fashion companies don’t need to zero in on body positivity if that’s not what they stand for, but there’s a clear business case for diversifying their commercial content.

Consumers want brands to offer inclusive products before all else

While a brand’s pictures are worth a thousand words, their products have the final say. 

The main thing people want is inclusive ranges, with various companies benefiting from extending their sizes.

Gone are the days when designers would quickly throw together expensive plus-size collections, but some consumers want brands to go further and make them part of their core ranges.

This is one way of making certain styles feel more accessible. 

In 2018, PrettyLittleThing was one of the first retailers to launch a campaign featuring a plus-size and a main range model in the same outfit as part of a wider bid to help each woman express her individuality. And its growth in revenue is a testament to it achieving that.

So, brands betting on body positivity should focus on baking inclusivity into their ads and products before all else.

Where social media comes in

Now we’ve dealt with the essentials, we can look at what social channels have to offer. These platforms created a space for the culture to thrive, and its growth is partly a response to the number of idealized images on social media. 

Companies with a young target audience will benefit most from working body positivity into their online brand narrative – whether that’s by offering confidence pointers or partnering with influencers that embody the movement. 

The pandemic boosted this trend by pushing more people to realize that health is also determined by what goes on in our minds. According to our data, younger consumers tend to be the most affected by mental health issues and receptive to discussions around them, and body positivity is no different. 

Not only are Gen Zs the most likely to say there’s too much pressure to be perfect online, in the US, the number who say staying fit is important has fallen by 7% since 2020. And they’re calling out ‘detox teas’ and sharing information around harmful diets more than ever. 

Victoria’s Secret is one brand that responded to this shift in 2021, finally bidding farewell to its Angels and introducing models of all shapes and sizes as its new ambassadors. 

It’s too early to tell whether the move from exclusive to empowering has paid off, but our data shows that the number of North American Gen Zs buying from this brand is at its highest point since we started tracking it in 2020; and this rebrand definitely ticks a lot of their boxes.

The movement holds a lot of cards

The attitudes of younger consumers hint at how powerful body positive messaging can be. 

2014 research in the US has shown that body satisfaction increases as we get older, and a New Zealand/Australian study carried out between 2010-15 backs this up. Yet, a change seems to have taken place. 

Gen Zs are now the least likely to be trying to tone up; they’re more likely to say they’re happy with the way they look (43% vs 37% of older generations), and to agree that they’ve become more body positive over time (38% vs 30%). 

This suggests that younger consumers have been influenced by the language of the movement, increasingly using words like ‘happy’ and ‘positive’ to describe the relationships they have with their bodies.

The opportunity is in inspiring marginalized groups to take part in the movement’s online culture, and better representation is the best way to accomplish this. 

Where we go from here

For those looking to get behind this trend, here are our key takeaways:

• On the whole, people aren’t too down on the fashion industry and many think it’s much-improved. But we still have a long way to go.
• The BOPO movement can help the sector achieve its inclusivity goals, but right now, it’s not effectively catering to the communities it’s meant to uplift.
• Brands betting on body positivity should focus on baking inclusivity into their ads and products before all else. 
• Companies with a young target audience stand to benefit most from working body positivity into their social media narrative.

Whether it was through virtual Zoom quizzes, messages in a group chat, or impromptu TikToks, digital platforms kept people connected throughout Covid lockdowns. 

But kids had other places to hang out online. And few were more important than Roblox.

Sometimes described as a “proto-metaverse”, Roblox is being turned to by brands like Gucci, Spotify, and McLaren to burnish their web3 credentials. But unless you have young children or relatives, you might be wondering what it is. And even if you’ve seen it in action, you still need to know how to connect with its players. 

So here’s our most important things to know about Roblox and its users. 

Roblox isn’t one game, but many

Technically speaking, Roblox is a free-to-play video game published by the Roblox Corporation. It’s software that you can load up on PC, a phone, or an Xbox One. 

But it’s best to think of it as a game-making platform. Through Roblox Studio, developers can build and share their own games, some of which can be very lucrative. Since Roblox first went live in 2006 (before the iPhone or the Nintendo Wii) millions have been created for users to enjoy. 

There are a few ways brands can get involved. 

1. The simplest is creating virtual items, which can integrate with pre-existing experiences. 
2. Then there are pop-up events, games, scavenger hunts, or concerts that only last a limited time. 
3. And then there are persistent experiences, which live on the platform long-term and receive consistent support from developers and designers. 

Gucci is an example of how the three different activations work, and how brands can deepen their engagement with the platform over time. In March 2021, the luxury brand designed virtual sneakers that could be worn by avatars inside the app. A couple of months later the Gucci Garden opened, a virtual counterpart to a real-life show that was only open for a couple of months. And recently the luxury brand built its first persistent world in Roblox, one without a defined closing date, called Gucci Town. 

Roblox is growing fast

Roblox is the second-fastest growing gaming franchise kids play. The number of 8 to 15-year-olds playing has increased 24% since 2021, and in the leaderboard of most popular games it’s moved from 5th place to 2nd, now sitting behind only Minecraft. With strong social features and an almost limitless choice of games to play, you can see how it came into its own during the pandemic. 

But it isn’t just kids who are playing.

Roblox isn’t just for kids

Roblox is also the second-fastest growing gaming franchise among adults. The number of 16-64 year gamers playing it has increased 40% year-on-year. 

While it’s not a market leader for adults like it is for kids, it attracts a similar number of players as Rocket League, Football Manager, and Fall Guys: Ultimate Knockout. And ever since it started preparing for its IPO in March 2021, the Roblox Corporation has made no secret of its intent to grow even further among older audiences. 

So Roblox isn’t just for the younger generation, and, like a lot of games, the people who play it might surprise you. They’re more likely than the average to be interested in entrepreneurship, business and investments, and to describe themselves as risk-takers. Roblox has a burgeoning digital economy and some developers have become wealthy designing games on the platform. 

There could be room here for financial services brands to get involved, similar to how Mastercard partnered with the Recording Academy during Grammy Week. Roblox players are a varied bunch and the same can be said about the opportunities available on it.

Roblox players are diverse, and value diversity

To understand the culture on Roblox, you have to understand what it allows players and developers to do. 

Players can create almost infinitely customizable avatars, and this has given many a chance to explore parts of their identity they couldn’t in real life. It’s following in The Sims’ footsteps by creating a more inclusive space for players and minority audiences. But unlike The Sims, there’s a multiplayer element that helps establish that sense of a shared culture – one that’s shaping the attitudes of the next generation. 

Roblox is more gender-balanced than its proto-metaverse peers Fortnite and Minecraft. The gender ratio among kids is almost 50/50, with only The Sims, Just Dance, and Animal Crossing having a higher proportion of female players. 

Roblox also has one of the most racially diverse user bases of any games franchise we track.

In the US, 1 in every 5 players aged between 8 and 15 is from an ethnic minority.

The user base as a whole is motivated by diversity and inclusion topics. Compared to the average 12-15 year old, they’re more likely to think the following are important: 

• Seeing all types of people in ads 
• Protecting people from bullying
• Seeing all types of people in TV shows / movies

So they’re clearly motivated by diversity and inclusion in other parts of their life, not just on Roblox. 

Most press coverage about Roblox and similar platforms is very forward-facing, concentrating on how they might become fully-fledged metaverses. But it’s worth thinking about parallels from the recent past. In many ways Roblox is the heir to platforms like Tumblr and bulletin boards, which allowed previous generations of young people to discover more about themselves in relatively safe online spaces. 

Roblox is shaping a generation of hybrid creatives

It’s worth thinking about how Roblox will shape Generation Alpha’s collective future. We can already make a distinction between the formative social media for millennials and Generation Z – the former used largely text-based interfaces, whereas Gen Z, with the help of improved technology, have been drawn to apps centered around photo and video sharing (Instagram and TikTok). This left a real impression in their formative years, with Gen Z more likely to be interested in visual topics like fine art and photography. 

Kids in the Roblox generation have gone through another technological leap, using forms of social media created in 3D, immersive environments. And its influence is already rubbing off. Building games in Roblox Studio needs some knowledge of code, so it’s no surprise they’re more likely than the average child to be interested in coding, and to say IT & computing is their favorite subject. But they’re also more interested in arts and crafts, showing that they’re as imaginative as they are logical. 

Only time will tell if the platform really does inspire a new crop of engineers, designers, software engineers, and architects, but figuring out its influence is a great way to keep up with the next generation of consumers. 

Roblox users crave a sense of adventure

On a platform that allows you to make quite literally anything, from a human giraffe simulator to a game where you escape Ariana Grande in Area 51, the most exciting experiences will rise to the top. 

And again, it’s a culture that’s really rubbed off on its users.

Roblox players are more likely than other kids to be interested in adventure and being outdoors.

It’s easy to make assumptions about kids playing games and ignoring the outdoors but many Roblox events can tease real-life environments. There’s an opportunity for travel brands to show off destinations virtually, as the Cape Town tourist board has recently started doing. 

The need for adventure also means that branded experiences can’t be too static – they should take players on a journey. The goal isn’t to build brand showrooms or construct billboards. This is something Gucci seems to have learned in moving from the Gucci Garden to Gucci Town, with the latter having a greater focus on mini-games. 

Roblox offers clues for the future, but don’t neglect the here-and-now

In devising strategies for the metaverse, brands might be tempted to put all virtual worlds into the same bucket. But like traditional social media, they do have differences and understanding the culture of each platform is vital. On Roblox, behaving inclusively is almost non-negotiable, as is providing a sense of adventure. And if you can provide the tools for players to create their own experiences, so much the better.

Brands who get it right will be well-placed among an audience on the cutting-edge of culture, on a platform that’s growing rapidly. And if nothing else, understanding the Roblox ecosystem will help you understand what its players will be like when they grow up. 

It feels like we can’t seem to catch a break. As if over two years of a pandemic wasn’t enough to contend with, we’ve now got a cost of living crisis looming over our shoulders.

This has a knock-on impact for consumer spending and businesses across a range of industries. More and more people are starting to re-prioritize their spending and asking themselves: can I live without it?

In this blog, we explore how the cost of living is impacting online retail and what consumers are looking for from brands. 

Online shopping: glimpses of a slow down

Online retailers were clear winners during the pandemic as lockdowns forced consumers to shift how they shop. But with Covid becoming something we increasingly learn to live with and the cost of living crisis ramping up, what direction could online shopping take?

While the answer isn’t so clear cut yet, we’re seeing signs of its growth slowing down.

Using GWI Core, the number of consumers globally who say they’ve purchased a product or service online in the last week has declined slightly by 3% since Q4 2021, when up until this point it was consistently ticking upward. While this is not a huge fall, it could be a sign that more instability is on the horizon. 

This is echoed in Mastercard’s SpendingPulse report from May, where it found e-commerce transactions have dropped. ONS data also revealed that UK online retail sales declined during May. Meanwhile, ecommerce powerhouse, Amazon, recorded its slowest-ever growth in the first quarter of this year. 

Many consumers have still embraced online shopping with open arms. Across 6 markets, 25% say their online shopping behavior has increased over the past year and 20% expect it to increase further in the future. 

At the same time, 15% say it’s declined compared to 12 months ago, and a further 12% expect it to decline even more down the line – signaling some people look set to pare back. Generally though, the majority expect their online shopping behaviors to stay the same. 

For the declines we’re seeing, there’s likely a combination of factors at play. Some consumers are returning more to physical stores, which can have a knock-on effect on online sales. At the same time, the cost of living crisis is forcing many consumers to re-prioritize their spending, as the cost of essentials like food and fuel go up. 

Discretionary buys, which are more likely to be online, look set to be first on the chopping block. In the US, for example, the number of consumers who say they’ve purchased clothing online in the last month has dropped by 12% since Q3 2021 when it reached a peak. 

At the same time, purchases of essentials like groceries online have ticked upward by 8% during this timeframe. Consumers might still be making changes to their grocery behaviors, like spending less when they shop or making smart product swaps, but we can expect to see essential categories have greater stickiness than others.

For brands and retailers, it’s important to use online retail to their advantage. Primark, a retailer who has traditionally steered clear of an online offering, is trialing a click-and-collect service across select stores in the UK. It’s a good example of meeting consumers where they’re at and creating more purchase touchpoints. 

Discount stores and own-label brands are in

Pretty much all consumers say they’re feeling more price-conscious to some degree. The majority of consumers also say the current cost of living has increased compared to 6 months ago.

As inflation continues to bite, some people are naturally more laser-focused on value and getting the biggest bang for their buck.

Consumers are turning more to discount or dollar stores, with the number of Americans saying they visit one often increasing by 9% since Q2 2020. 

Many retailers are starting to respond. Nordstrom Rack is expanding its off-price stores in the US, and leaning into its selling point: luxury brands at great prices. 

In the UK, supermarkets like Sainsbury’s and Iceland are leaning more heavily into value. Sainsbury’s recently added its 20 highest volume lines to its Aldi Price Match campaign, while Iceland sold three essential products for 1p in a limited online-only offer. 

Considering food or groceries is the top category consumers say they’re most price-conscious about (59%), these kinds of campaigns are likely to land well as people prioritize essentials. 

Own-label products could be something consumers start to consider more in a bid to cut costs. Using GWI USA, the number of US shoppers who say they buy own-label products has increased by 6% since Q2 2020. 

And across France, Germany, Spain and the UK, close to 70% say they buy own-label products often, with staples like dry goods (e.g. cooking oil, pasta, etc.) and baked items increasing the most since Q3 2021. 

This could increase even further as consumers make more money-saving swaps. In the UK, Boots has frozen prices on 1,500 own-label products until the end of 2022. While in the US, Kroger, Walmart, and Target indicated that shoppers are trading down to store brands. 

Many consumers also plan to jump on Amazon’s Prime Day to nab some bargains. Across 5 markets, 44% say they plan to purchase during the event, with household products and electronics top of their list. Some consumers might use this as an opportunity to pick up a tech product they’ve had their eye on at a discount or nab some gifts for loved ones. Either way, anything that allows consumers to save a few bucks is sure to grab their attention.

The secondhand clothing market picks up speed

The pre-owned market has shifted from charity shops and thrifting, to online retail and resale platforms. And it’s big business. The global secondhand apparel market is projected to grow by 127% by 2026, three times faster than the global apparel market overall, according to the tenth annual ‘Resale Report’ from online resale store ThredUp.

Purchasing secondhand items is one of the fastest-growing online activities we track, increasing by 12% among Gen Z globally since Q1 2021. 

In the US, a quarter of Gen Z say they’re comfortable buying pre-owned items rather than new ones. This remains relatively high among older generations too, with just over a fifth of baby boomers saying the same.

While buying secondhand is a massive opportunity to live more sustainable lifestyles, it’s also something that could cut costs too. 

In France and the UK, 25% and 20% of consumers say they plan to buy secondhand clothing to cut costs – the highest figures of all 9 markets tracked. 

For consumers looking to reduce their environmental impact, the shift from buying new to pre-owned is a manageable lifestyle change, while still satisfying their needs in a more cost-effective way. 

More brands are tapping into this resale phenomenon to match consumer demand. ThredUp recently launched Recommerce 100, an index that tracks which brands and retailers have resale programs. As of March 2022, the tracker recorded 41 fashion shops who have a resale offering, and more are sure to follow suit.

Key takeaways

The cost of living crisis casts a shadow over online retail

Even though online shopping is still on the agenda, we’re seeing early signs that its Covid-induced boom might be wavering. Some categories will be hit harder than others – think discretionary purchases like large household goods or clothes.  

Consumers have value on their mind

As the cost of everything from food to fuel rises, consumers are leaning more toward brands and retailers that have value at their core. Expect to see discount stores and own-brand labels continue to nab consumers’ dollars.

Pre-owned clothing is getting more love

Buying secondhand clothing is one of the fastest-growing online activities for Gen Z. Not only is pre-loved clothing better for the planet, it’s better for consumers’ wallets too. Resale and rental fashion is set to go from strength to strength.

In 1994, a 24-year-old programmer named Lou Montolli wrote a document describing how an internet browser could store data to remember that Wile E. Coyote had ordered a rocket launcher from the Acme Corporation. This was the first ever description of a “persistent client state object” – better known as a cookie. 

Cookies are used to track consumers by seeing the web pages they’ve viewed and the links they’ve clicked on. But they’re slowly being removed from the fabric of the internet. 

It’s why Apple blocked all third-party cookies from Safari in 2020, Firefox has blocked some since 2019, and Google announced that its Chrome browser will start blocking third-party cookies from 2023. 

For businesses, the changes won’t be affecting any first-party data, and they can still see who’s using their website and where they came from. Instead, it’s the third-party data that’s still changing – the data tracked on other websites that aren’t our own. Think of it as the data that tells you what I searched for on Amazon, or the shoes I might buy for my upcoming holiday.

Google’s Chromium blog claims that “Users are demanding greater privacy – including transparency, choice and control over how their data is used – and it’s clear the web ecosystem needs to evolve to meet these increasing demands.” 

But what do consumers really think about their online privacy?  

1. Privacy attitudes have stayed stable over time but older generations are more conscious than others

In the past month, 45% of consumers say they’ve cleared their cookies or browser history, and a further 21% have disabled or turned off cookies in their settings. 

Privacy is clearly very important to people, but concern about it isn’t something we’ve seen grow much in the past few years. Consumer attitudes are actually pretty stable.

And if we take a look even further back into our data from 2017, privacy concerns still remain steady. Things changed slightly in 2018 in the wake of the Cambridge Analytica scandal – privacy concerns rose 11% after the news broke (at a time when GDPR was also front-page news), but then stabilized soon after. 

So, privacy concerns may have been consistent in recent years, but they can flare up when it starts to get mainstream attention. 

It’s not something people think about every day, but at certain times, can provoke a strong reaction from consumers under the right circumstances.

However, concerns can vary by generation, with older consumers being more privacy-conscious than their younger counterparts.

Baby boomers are more likely than younger generations to say they worry about how their personal data is being used and are less likely to feel in control of their personal data.

This explains why this generation stands out the most for wanting brands to be transparent about how they collect and use data, which ranks fourth in importance out of a list of 12 brand actions.

2. Consumers are turning to more privacy-minded alternatives

Consumers’ awareness of cookies and privacy has led to more privacy-focused internet browsers and services emerging. DuckDuckGo, for example, offers users a private searching experience with no ad-trackers and smarter encryption. And it’s clearly becoming popular, as use of it in the US has increased by 69% since Q2 2020.  

Why such a growth, especially when attitudes haven’t changed? It appears that the majority of users of DuckDuckGo are individuals who are more likely to use ad-blockers, private browsing, VPNs, and delete their cookies at least occasionally. All told, very privacy-conscious people. 

Attitudes to privacy may be stable across the general population, but consumers who are the most concerned about protecting their privacy are clearly in the market for services that protect their personal data. 

3. Demographics can impact privacy behaviors

How much people care about their privacy online also depends on demographics – males and high earners are more likely to use private browsing and decline cookies. 

Specific privacy behaviors like declining cookies on a website and clearing browsing history are fairly similar across generations.

Of those who do use an ad-blocker, baby boomers are more likely to use one because they don’t feel ads are relevant to them – which makes sense given they’re the least likely generation to say they feel represented in the advertising they see. 

Younger generations, on the other hand, are more likely to use an ad-blocker to stop any inappropriate content being shown. 

4. Opinions about cookie pop-ups are divided

Consumers react to cookie prompts in three different ways. In 9 markets, just over half say they always accept all cookies or the default settings they’re presented with when they visit a website.

Around a third say they change the settings for some or all cookie types, while 6% decline or leave the website altogether.

There’s clearly a conflict in consumers there, where some either care or don’t mind while the rest are confused.

Among the cookie decliners, their most distinctive feelings are that the pop-ups make their online experience less enjoyable – for these people the feeling of managing settings or trying to work out which ones to choose is upsetting the process of browsing too much.

The setting changers are the confused ones in the bunch. They’re most likely to feel that the relevant privacy information is hard to find, or that the information which is provided is unclear or full of jargon. 

It seems that while cookie banners were designed to give more people control over their personal data, they’ve ended up being annoying, confusing, and doing little to protect privacy. 

Banners are set up so that the fastest way to make them go away is just to accept all the cookies.

Finally, the cookie acceptors are most likely to not really have an opinion about them. This group feels either indifferent or empowered by cookie pop-ups, as they feel like they have more control over their data.

5. Transparency is key when it comes to data sharing

Tracking is one thing, but willingly sharing data is another. 

When it comes to sharing data, around half want a clear understanding of how their data will be protected and used, as well as the assurance that their data won’t be shared with third parties.

While 61% would rather keep their data and pay for services, the remaining 39% could be swayed by free trials of services or free samples of products. 

With 46% in the US wishing they knew more about how their data was being used, it’s possible that individuals may be more open to sharing their data if companies made this information more accessible – transparency is key.

When it comes to who consumers trust to protect their privacy and personal data, the public sector and government come out on top out of a list of 12 for over a third of consumers. 

However, this does greatly depend on which country we’re looking at. Out of 9 markets, the US has the least trust in the government, with only 13% feeling this way. Consumers in the US are much more likely to trust healthcare and financial services.  

However, consumers may be more trusting around data if companies are clearer about what they’re going to do with it. 

Key takeaways

• Consumer attitudes toward privacy are pretty stable over time. While there may be events that change attitudes a little, they’re pretty fickle. Those who are privacy-conscious are likely to always be, those who aren’t might be swayed, but only temporarily. Although attitudes are stable over time, there are generational differences, with baby boomers being more concerned about how companies are using their data. 
• Demographics do matter – they show how likely someone is to be privacy-conscious, while generational behaviors around ad-blockers tell us how advertising is often missing the mark among older generations. 
• Consumers still haven’t decided how they feel about cookie pop-ups – those who accept them don’t really have an opinion or think they make them feel more in control. Those who decline them all find they disturb their browsing experience. The individuals who change some of the settings appear to be the most confused, they feel the right information is hard to find or just full of jargon.
• Data sharing is a complex issue. But it appears that if consumers felt there was more transparency about how brands use their data, they might be more willing to share it. 

We live in a confusing time. Consumers want to do their bit for the environment, save a buck, and make up for lost time during the pandemic. 

Some sustainable behaviors picked up speed during Covid, but out of necessity – with air travel at a standstill and very few places to go, many opted for walks outside instead of driving to destinations. 

But the world has largely reopened, and those feelings of wanting to make up for lost time, along with being more money-conscious, may weigh heavier on the consumer agenda than sustainability.

Using our Core, and USA datasets, we explore the consumer dilemma of being green, while staying in the green.

The US is feeling the pinch

Like consumers all over the world, Americans face a difficult decision when it comes to being eco-friendly. 

In May 2022 inflation hit 8.6% – its highest level since 1981. Among US consumers, nearly 9 in 10 say the cost of living has increased compared to six months ago, while 93% say they’re feeling the impact from price rises.

All of this doesn’t necessarily come as a surprise. Americans have been gradually anticipating their country’s economy to worsen since Q2 2021, with the number who say this having grown 82% since then. The problem is, pessimism is also growing about the environment, with over 1 in 3 saying it’ll get worse as of Q1 2022 – a 39% increase.

So the trade-off becomes all the more difficult. Americans have expected both their economy and the environment to get worse over time, but now it’s time to choose which is more important to them.

Climate change fatigue could affect decisions

But there’s another problem that could be affecting the decision to go green. 

The discussion around climate change has a big influence on the way consumers think about how it will impact them and their future. We’ve written previously about how news services can help shape consumers’ outlook on climate change by offering more solutions than just coverage; painting a more positive future narrative and inspiring consumers to behave sustainably in turn.

All that is still important, but there’s a balance to strike here. Even too many positive stories about the topic could do more harm than good, and it runs the risk of ‘climate change fatigue’.

It’s a phrase that’s been around since the late 2000’s but it’s still very relevant today.

The number who feel that they’re tired of hearing about climate change all the time has increased 5% in the past year. Genuine concern for the environment could be undone by the fatigue people feel from constantly hearing about it. 

It’s a sign that brands not only need to reconsider the way they talk about climate change, but also the volume they talk about it. Non-stop coverage could mean consumers focus on other things, and potentially behave even less sustainably as a result.

Sustainability in the everyday

Americans are making cutbacks. But the upside of this is that many of these actions will also end up helping to cut emissions too. 

Across the board, that generally means reusability. The number, for example, who say they carry a reusable water bottle or use a metal/glass straw has grown 10% and 9% respectively since Q4 2020. It’s a nice win-win for consumers; buy something once to cut back on waste, and save money at the same time.

That includes recycling too – something older consumers are more on board with.

These generations are 28% more likely to say they always try to recycle than their Gen Z/millennial counterparts. They also lead the way against these younger generations for reusing shopping bags, and sit on par for carrying a reusable water bottle. 

But there’s other ways they practice budget-friendly, sustainable activities in their routine. As far as transport is concerned, over a third of Americans are planning on walking or cycling more as a means of being more energy efficient. In fact, cycling reached new heights in Q1 2022 with the number doing so rising 27% in the past year.

That being said, the number who drive weekly is on the up, while the number who use public transport weekly has decreased by 13%. With cycling experiencing such a boom in popularity, it’s a prime opportunity to build on this momentum and introduce more ways for consumers to use this form of transport. 

This could come in the form of US based brands employing a bike-to-work scheme – something that’s already proven successful in Europe. Or providing convenient and secure places to store bikes, as well as offering showering and changing facilities. 

Sometimes going green is as simple as eating your greens

Frugality affects food shopping too. Out of a list of 13 areas people are currently most price conscious about, food or groceries comes out top in the US, with over two-thirds feeling concerned.

In response, consumers are making small adjustments to their everyday routines. Over half say they’re planning to make an effort to cook more at home, and a quarter are considering growing or preparing their own food. 

With some foods set to be hit harder than others (meat has seen the most substantial price increases) groceries and supermarkets should consider promoting meat alternatives in-store. Financial reasons will sway a lot of people’s minds but the added benefit of eating more sustainably will also win customers over.

And many consumers are already looking to reduce their meat consumption as a result. The number of Americans who say they are meat eaters with no plans to change has fallen 10% since Q2 2020, as interest in plant-based diets continues to rise. 

There are many possible reasons behind this. Consuming less meat has an important part to play in reducing carbon emissions, but the rising cost of these products could be affecting consumers’ decisions too.

Americans are buying better when it comes to fashion

Sustainable clothes shopping varies greatly depending on generation. While Gen Z are often seen as advocates for the environment, they’re far more likely to say they purchase clothes or shoes that they don’t strictly need, compared to baby boomers and Gen X. 

Younger consumers are also far more likely to buy clothes and shoes more often, with over half of Gen Z or millennials buying clothes at least once every 2-3 months, compared to a quarter of baby boomers. 

Overall, inflation is likely to have a big impact on what clothing consumers buy, with more potentially opting for long-lasting items rather than fast-fashion. 

This is really noticeable among baby boomers. Not only are they more likely to buy products made in the US, but they also prefer to buy more traditional styles rather than the latest trends, which could mean they end up consuming less in the long run.

And with Americans making more sustainable fashion choices, the secondhand market is growing quickly in response – the US market alone is expected to double to 82 billion dollars by 2026. At the heart of this trend are Gen Zs, who are the most comfortable opting for pre-owned threads rather than new ones. 

A third of US consumers are concerned about the price of clothing, so expect to see more consumers considering secondhand alternatives online. Just over a fifth of Gen Z and millennials say they’re planning to buy more clothing of this kind due to rising costs, but this is likely to grow as more feel the squeeze down the line.

As consumers get thrifty, more may consider renting clothes instead. For those who really want to keep up with the hottest fashion trends, it’s a smart move; rent the clothes you need for a period, then move onto something else – without ever needing to commit to buying a whole new outfit.

It’s not all up to consumers

Brands have probably heard time and time again that being eco-friendly is non-negotiable. There’s plenty of truth to that – if you look at the number one thing people worldwide want from brands it’s to be eco-friendly (43% say this). 

Things are a little less clear-cut in the US, where 37% say this, making eco-friendliness less important to consumers than things like data privacy, social responsibility, or listening to customer feedback. 

That doesn’t mean, however, that brands should treat it as less important; consumers will still pay attention to a business’ environmental track record.

Compared to 8 other markets, Americans are 64% more likely to say corporations have the most responsibility for supporting sustainable initiatives. An additional 28% say that reducing CO2 emissions or using sustainable sourced materials are important things that come to mind when choosing a brand to buy from. 

Brands should be careful of their image, as negativity in the media can easily put some consumers off – especially concerns about false sustainability claims. Over a third of Americans say false sustainability claims (ie greenwashing) would discourage them from buying from a brand. That’s more than the number who said the same for lack of workplace diversity, or even negative comments on social media.

But brands need to also bear in mind the current climate, and help consumers to find ways to be sustainable on a budget. This could be harder than it sounds. While it’s not entirely true that going green is an unsustainable business practice, brands need to think about how they can show support for green initiatives without losing customers who simply can’t afford to pay more for eco-friendly products.

Over 8 in 10 Americans have little to no trust in brands to follow through on their environmental claims. But by supporting initiatives that can make this their full-time goal, businesses can be a part of the solution with less pressure. It could also include making small changes that are easier to follow through on; changing to more local suppliers, going paperless, or providing recycle stations for consumers to get rid of their waste effectively.

Going green is a joint effort, and consumers know that. Brands who can make changes and stick to them will put themselves in better standing. Consumers may have to choose between eco-friendliness and saving money right now, but if they’re trying to tackle both then brands don’t get to choose either.

Going green means staying green

Nearly all consumers care about the environment to some degree. This means that, even as the cost-of-living crisis worsens, they won’t give up on their efforts to be eco-friendly.

While it may sometimes come down to making an important decision between being eco-conscious or being thrifty, brands need to recognize their role in supporting consumers, who will make more efforts to recycle, eat better, and buy better. Even if brands can make it easier for consumers to do just one of these things, a little bit of help can go a long way.

What really matters is that they’re authentic in doing so – reflecting eco-friendly values, and sticking to their commitments.

In March 2021, a graphic designer from Wisconsin made art history. 

Mike Winkelmann, better known as Beeple, saw bidding on his work Everydays: The First 5000 Days close at $69 million at an auction hosted by Christie’s. At a stroke, it put him among the three most valuable living artists.

What exactly had he sold? Not a painting, not a sculpture, but a non-fungible token, better known as an NFT.

Since that auction, NFTs have spread like wildfire throughout the marketing world. But the world of NFTs is an unpredictable one, so we’ve collected our best research into the topic to help guide marketers through it, whether you’re an NFT noob or an OG.  

In this blog we cover:

• Just what NFTs actually are
• What NFT holders care about
• Why some brands are getting them right – and wrong
• What early success stories can teach us
• How QR codes can help predict their future

Most people don’t know what NFTs are

At this point you may be thinking: what exactly is a non-fungible token, anyway?

As with many ‘web3’ topics, explaining it can be difficult, because it relies on terms that need quite a bit of unpacking too. 

The simplest definition is this: it’s a file that establishes proof of ownership of a digital asset.

Crucially, it’s not the digital asset itself. Many newspapers reported on the Beeple auction as if people were bidding on an image file, which wasn’t the case. They were bidding on a file that contained a URL pointing to said JPEG file.

Put more succinctly – the NFT isn’t the digital artwork, it’s the receipt.

It’s a sign of how unfamiliar this world is to consumers. And that’s not even the biggest misconception around NFTs. 

In a survey we ran in April, when asked which option they felt best described an NFT, 14% of consumers chose the deliberate red herring “a digital image/object that people can own”, but the most popular option of all was “a type of cryptocurrency”, which is also wrong. Cryptocurrencies can be traded and have innate value – they’re “fungible” – whereas non-fungible tokens are…not.

Even among consumers who have heard of NFTs, only a quarter of them can correctly identify what they are. And even though knowledge on exactly what they are is low, awareness of NFTs has increased since last year. 

55% had heard of NFTs in June 2021, rising to 72% in April 2022 – no surprise when seemingly every brand under the sun is jumping on the bandwagon. 

For marketers, here’s the first important lesson. It’s easy to get deeply immersed in ‘web3’ topics, especially when awareness seems high, but be warned that the majority of consumers can’t tell their bitcoin from their blockchain.

Any use of NFTs has to ensure they clearly communicate what they are, especially when money changes hands. 

Watch out for instability in the market

The market for NFTs, and crypto as a whole, is incredibly volatile. 2022 has already seen dramatic peaks and troughs, and NFTs will likely go through a series of boom-bust cycles before the market properly stabilizes and their true value becomes clearer. 

This is part of the reason why NFTs can carry some reputational damage if not handled with care. Brands as varied as MeUndies, WWF-UK, and a host of game developers have been forced into U-turns following customer backlash. And our research identifies just what it is about NFTs that creates such a strong response. 

The thing that most interests consumers about NFTs is being able to make an investment. But unstable prices (41%), scams (37%), and a lack of regulation (35%) are the biggest perceived disadvantages. 

Putting out NFTs as an auction on the open market right now is a big risk.

But there are other ways to use them, and NFTs can still work. And the first part of making them work is understanding who their early adopters are, and what they care about.

NFTs are more than just art

It’s easy to get disheartened by the negative headlines around canceled NFT initiatives, but there’s a group of consumers who know what NFTs are, are interested in them, and actively buy them. Through our Sports data set, we have a great window into the 12% of sports fans* who purchase digital collectibles like NFTs. 

Helped by the success of NBA Top Shot, NFTs are more proven in the sports world. And putting NFT owners under the microscope offers useful lessons for how to make best use of them in campaigns for brands of all stripes. 

Who buys NFTs? Your quick consumer snapshot 

When we dive into the numbers behind NFT holders, we find that millennials buy them more than every other generation. 

We find that NFT holders are high earners and, as you might expect, they’re very into business, entrepreneurship and investments. 

They’re more likely to be interested in fine art and modern art than the average consumer, but less likely to be interested in music or film. Their interest in art is more likely to be as an investment vehicle than because they’re serious culture vultures. 

Though many people associate NFTs with digital art (largely thanks to the Beeple auction), they don’t have to look good. The aesthetic behind ventures like the Bored Ape Yacht Club has been criticized, but the look isn’t really what matters. It’s owning that status symbol, and showing you’re part of an exclusive club. 

Outside of art, NFT holders are more likely to be interested in popular culture topics, like reality TV and celebrities. If you’re a brand marketer thinking about what assets might make a good NFT, you’re better off seeking things that drive buzz in the cultural conversation. 

How brands can use NFTs

The most distinctive trait of NFT holders, though, is the emphasis they put on community. 

As a part of the various technologies usually gathered under the banner of ‘web3’, NFTs come from a philosophy of radical decentralization. For the most part, the people building the technology NFTs sit on believe in creating a new type of internet that will empower users, instead of platforms and governments.

How likely or realistic this outcome is is a matter of debate. But the essential idea of identifying with like-minded individuals is a core value NFT holders have. 

They’re deeply community-driven, being 86% more likely to say they buy products to access the community around them, and they’re also more likely to advocate brands that enhance their reputation, or give them exclusive content.

The NFT community is very active on Discord, a social media platform that has community baked into its very core.

Helped by expertise in digital, one brand is showing signs that it truly understands what using NFTs to build and nurture a community actually means.  

Why Starbucks’ NFT move looks promising

While details on it are thin at the moment, largely limited to a press release touting the “digital Third Place”, Starbucks’ upcoming NFT initiative looks promising because it gets what NFTs are about, and positions it in line with the company’s mission.

For starters, Starbucks has proven in the past few years it understands digital, with its app and on-the-go ordering system being pioneers in the field. It has a well-known digital rewards system, which its NFTs are likely to layer nicely on top of. 

It’s the right brand to be focusing on a premium membership tier too. It’s a well-known, well-respected name whose merchandise is often in high demand. 

Its move into NFTs hasn’t come out of nowhere. It’s closely integrated with its business model, even to the point of ensuring its choice of blockchain technology meets its sustainability commitments. Its NFTs won’t be sold as speculative assets, but access passes with a clearer sense of added value to their buyers.  

The “third place”, the space between home and work where people can bond, is central to Starbucks’ identity. And Starbucks NFTs will help create “a new, global digital community”, where branded collections will give customers exclusive access to experiences and perks. 

Starbucks could have easily thrown a few branded pieces into an auction and called it a day, but instead, they’re building something with lasting value that will really resonate with its target audience. 

QR codes: learning the lessons of older tech

It’s easy to say that the future of any technology is completely unpredictable. But there’s an example from recent history we can look at to have a good guess at where NFTs will end up, and help futureproof strategies in the process. A technology that also ushered in a host of short-lived innovations and initiatives. One which promised a whole new way of interacting with online content. 

To understand the future of NFTs, you have to look at QR codes.

Marketers were very keen to play with QR codes when the tech was shiny and new. There were QR codes on pavements, police vehicles, and postage stamps.

Like NFTs, they were often paired with art. And like NFTs, the early user experience wasn’t actually that great. Not all smartphones could natively scan them and users often needed to download an app to be able to use them. Likewise, it’s currently impossible to buy NFTs through your phone on their biggest marketplace. 

Our data shows how well QR codes mapped onto the traditional hype cycle of new technologies. There was a peak in usage during 2013 when they broke onto the scene, before falling again through the middle part of the decade as the sheen wore off, before rising again and stabilizing as they found their niche in 2018.

There are important differences with NFTs, not least in that NFTs tend to come at a price. But based on the QR code example, it’s easy to imagine how the future of NFTs will pan out. Many of the flashier and more experimental use-cases will fade away, while a more practical core of applications will persist. 

NFTs could well be the QR codes of the 2020s. 

So the most long-lasting use-cases for NFTs might be some of the most unassuming. Not as proof of ownership for flashy pieces of art, but for concert tickets, to provide details about a product’s supply chain, or as a key to access a VIP club. NFTs can be linked to anything – the state of San Marino even uses them as part of its vaccine passport system. 

But it’s that sense of using NFTs to access a branded community that’s likely to be the way forward for NFTs in marketing. 

They can give the feeling of community NFT holders crave, but community has to be more than just a buzzword. You have to engage with it, reach out to brand advocates and figure out what works for them.  

Whatever the application of NFTs, though, they have to observe the fundamentals of marketing and be connected to a brand’s mission and goals. 

As an example, fewer consumers than you might think say they care about the environmental impact of NFTs. But if you’re generating a lot of emissions through minting NFTs while also making net zero pledges, it’s probably not a good look. 

High-risk, but potentially high-reward

The only thing certain about NFTs right now is their uncertainty. The market is incredibly volatile, as shown by an NFT linked to Jack Dorsey’s first tweet losing 99% of its value in the space of a year.

That volatility alone is reason enough for brands thinking about jumping into NFTs to resist the temptation of a one-off auction cash grab. It could work in some circumstances and for some brands, but the risk is incredibly high and it’s worth thinking how your brand may look in hindsight a few years down the line. The key things brands need to make sure when thinking about NFTs are:

• They know exactly what they’re dealing with
• Their customers know exactly what they’re buying, and that they think it’s good value
• Their NFT initiative fits the company mission and goals
• It resonates with their target audience
• It’s part of ongoing community engagement.

*Owing to the unique online ecosystem in the country, this analysis excludes China.

Since the pandemic, the importance of mental health has rightly been amplified. And while mental health issues have worsened, the pandemic showed us just how resilient people are.

Leaning into this, it’s important to pay attention to what we’ve learned throughout these past couple of years and the positive action we can take off the back of it. 

In this blog, we’ll walk through what consumers expect from brands around mental wellness, what activities they’re doing more of to protect their wellbeing, and how employers can meet employees where they’re at.

What do consumers want from brands, really?

Mental Health Awareness month in May saw a flood of brand actions around mental health. But what’s the verdict from consumers?

First off, support for mental health messaging in ads varies widely by age, market, and income level. Gen Z lead the way for supporting this at 73%, dropping to a low of 46% among baby boomers, who are more inclined to sit on the fence.

Higher earners are 18% more likely than lower earners to support brands featuring mental health messaging in ads. This is despite the fact that lower earners in many markets, including the UK and USA, are more likely to say they’re more prone to anxiety.

Consumers in Germany and France post the lowest figures of support across all 9 markets, at 32% and 39%, respectively. Over 1 in 10 in Germany say they oppose brands featuring mental health messaging, again the highest of all markets tracked. This is perhaps surprising considering that consumers in Germany are the most likely of all 48 markets we track in GWI Core to say they’re prone to anxiety (44%). 

The lesson for brands? There’s no one-size-fits-all. Ads won’t land with everyone – even among those who are most impacted. 

So what’s the logic here? Well, it might boil down to some consumers refusing to place a huge amount of importance on brand messaging. It might be seen as a more superficial layer of support, rather than something that directly impacts them. It’s something for brands and marketers to bear in mind before jumping in.

In fact, consumers seem to care more about what brands are doing behind the scenes. When asked what’s important for brands to do to support mental wellbeing, some of the top actions are centered around brands’ internal practices. Brands offering mental health support to their own employees sits at the top of the leaderboard. 

Among Gen Z, 38% say brands being transparent about their own internal mental health initiatives is important – ranking third overall for this group and scoring 8 percentage points ahead of Gen X and baby boomers. 

The key takeaway? Brands should practice what they preach first and foremost.

How a brand behaves internally matters more than the messaging they put out.

Younger consumers are generally more receptive to a broader range of brand actions in this space, so there’s plenty of opportunities to meaningfully connect with them.

While not the most important overall, sharing uplifting messaging online, hosting discussions around mental health, and working with celebrities or influencers to share their own experiences all appeal more to Gen Z and millennials. 

Madhappy, a clothing brand centered around positivity and wellness, has appealed to many young people with its mission-driven approach. Aside from creating clothing with positive slogans, the brand engages its community by providing resources. 

One of these is a podcast where the founders have weekly conversations with guests like Emma Chamberlain about their personal experiences – something that’s resonated with younger listeners.

It’s all about keeping it real, being open and honest about personal experiences, and ultimately sharing relatable stories.

How Covid changed consumers’ mental health habits 

Consumers are taking more action to manage their mental wellbeing. Using our Zeitgeist research from September 2021 and April 2022 in 6 markets, we can compare what consumers are doing more of to look after their mental wellbeing since the pandemic started.

Some of the activities that have witnessed the biggest growth are centered around reducing certain media or online activities. 

Taking a digital detox has seen the biggest increase during this time, growing by 77% since we last asked this question.

Other activities like spending less time reading or watching the news and spending less time on social media have also seen significant jumps.

It’s hardly surprising that this is the case. Throughout the pandemic, consumers became weary of negative news overload. And in 2022, it feels like the world is moving from one crisis to another. Covid, the Ukraine conflict, the cost of living crisis, and now monkeypox – to name a few. 

For many people, taking time to switch off from social or the news gives them some respite from all the negative or distressing stories they come across. 

While there’s no doubt many benefits to social media, several studies suggest a link between increased social media use and depression or anxiety, particularly among young people. 

It’s not hard to see why. Unrealistic images and lifestyles online are one likely culprit. Brands are under growing pressure to stop editing images of models, almost to the point where they’re unrecognizable. Skims and Vanity Fair are just some brands that have recently been accused of misleading audiences through photoshopped campaign content. 

With anxiety and stress affecting younger generations more, it’s important for brands to take responsibility for the content they share online and the messages they give to audiences. Covid showed us the value of real, relatable content online – a sense of rawness that was often missing in the past. It’s something worth tapping into long after Covid becomes a distant memory. 

Mental health initiatives should be a workplace norm, not a perk 

The pandemic has spurred long overdue conversations around mental health in the workplace. Let’s paint a scenario, some of which might feel familiar. 

Pre-pandemic, we see a parent of three juggling family life, a fast-paced job at a creative agency working flat out to reach tight timelines, grappling with busy, time-hogging commutes. They’re stressed, tired, and burnt out. 

Their company says it prioritizes mental wellbeing, with company messaging around the importance of “taking time for yourself” being a common theme. In reality, they barely have time to tuck their kids into bed at night, let alone have headspace to take care of themselves. 

It’s so easy to preach about the importance of mental wellbeing, to highlight the things people should do, but speaking about it isn’t enough.

Meaningful change starts from within. Businesses need to create a culture that enables people to have the space to take a step back in the first place. They also need tangible initiatives available to support employees. 

It’s why the top actions employees want from their employers are concrete measures that have an immediate impact. Providing greater flexibility in work hours and mental wellbeing days off are both actionable steps people can take.  

Notably, digital mental health tools and therapy, which many companies are starting to offer, rank bottom of the list. While important to some, it shows many employees value changes to their working life more. 

Often, mental health tools are leaned on when issues become problematic. Tangible changes to work-life like greater flexibility might be more preventative – something that allows employees the space to manage their wellbeing more proactively before it becomes an issue in the first place.  

It’s important to consider the different stressors people might face. Leaning on the parent example again, we know employed parents are more likely to say they’re currently facing workload pressures, struggling to find a work-life balance, or struggling to adjust to post-pandemic life. 

This helps to explain why parents are 13% more likely than non-parents to say they want greater flexibility in work hours and 11% more likely to want exercise/wellbeing classes. On the flip side, employed people who aren’t parents are more likely than parents to say they’re facing uncertainty in life purpose or with their career. 

Struggles look different for everyone. There’s no one-size-fits-all approach to supporting employees, so offering a range of initiatives they can pick and choose from is the best way to support everyone’s individual needs. Mental health issues are a leading cause of absence, so it quite literally pays to care. 

Space Doctors, a UK agency, is just one example of a company that’s leading with mental health in mind. Its “back to school” program gives employees time and budget to do a course aimed at improving their wellbeing. It can be anything from creative writing to a dance-based course. 

Other companies are providing early Friday finishes during the summer time. Both of these are good examples of solid measures that give employees some freedom and headspace to learn something new or have time for themselves. It’s safe to say that nobody wants to go back to our pre-pandemic norm of work if they can avoid it, so creating systems to safeguard employees’ mental health should be a priority.

While there’s no doubt mental health issues have heightened since the pandemic, it’s important to look at what we’ve learned throughout this time and lean on some of the positives we might have gained. 

Many people now have a heightened awareness of their mental wellbeing, and are taking steps to build their own unique mental wellbeing toolkit – whether that’s switching off from certain media or using mediation apps. More people also recognize what they want and need from employers, with mental wellbeing support increasingly expected. It’s not enough to go back to business as usual, so it’s down for both employers and brands to lead by example.