Juicy Info

If you’re in the business of marketing in any shape or form, I’m sure you know just how important it is to understand and harness the megatrends impacting your business.

The infamous BCG (Boston Consulting Group) has been studying the megatrends shaping our worlds for a number of years. It defines this simply as those elements that “hold the power to reshape the landscape of economic opportunity and risk.” And there are many that continue to exert tremendous impact…

According to BCG, 62 of the 78 megatrends it monitors continued to grow during the recession in terms of influence on markets worldwide. Many bearing heavily influence on the performance of multi-million dollar industries.

Trends that have strengthened:

• Technology: Growing online usage; transition to mobile
• Health and wellness: driving organics; nutraceuticals
• Demographic shifts: ageing population in developed economies; middle-class growth in rapidly developing  economies (RDEs)
• Downsizing consumption: trading down

Overall, BCG highlights two ‘cluster trends’ that are pivotal to many industries:

• Asian ascent: Underlining the rising power of RDEs, growing consumer affluence and the power of companies within these economies
• E-migration: Reflecting the fast migration of commerce from physical to online channels. This is obviously a biggy in terms of the extent to which it is quite rapidly reshaping industries, not least publishing.

The full BCG Focus report is called Megatrends: Tailwinds for Growth in a Low-Growth Environment. More details on how to get hold of a copy here.

I spend a fair proportion of my time exploring travel and tourism trends, looking at different regions and aspects of this international industry.

One thing is for sure, travel and tourism is a mega trend – an aspirational leisure and business requirement for an increasing proportion of people worldwide. The growth in middle-classes in the big major economies like China and India is a driving force in particular. Whilst the recession has undoubtedly stemmed demand globally, predictions by the likes of UNWTO and WTTC show it has massive long-term growth potential.

After a very difficult year in 2009, the travel and tourism market is in much need of capitalising on key trends to drive both volume and value growth. On my info journey, I stumbled on this set of predictions by the Intercontinental Hotels Group (IHG), compiled by their European consumer insights director.

If travel and tourism is you’re field – it’s worth reading the full article, which has some thought-provoking insights.

Here’s a snapshot:

• Travel loyalty: A big trend in 2009 as travellers return to tried and tested locations/establishments bolstered by branding. Desire for value over price has made loyalty schemes more popular, just as we have seen in retailing with coupons. Set to continue in 2010 as consumer confidence remains fragile.

• Always on: Technology is becoming a bigger part of the experience for travellers, before they go when researching, on-the-go and when staying in hotels. 2010 will see more use of technology and social media to keep travellers informed and raise the bar on experience. As technology becomes more ingrained in our lives, I anticipate the proportion of ‘flashpackers’ (travellers with gadgets) will continue its ascent.

• Luxury snacking: I touched on the trend of consumers rewarding themselves with smaller treats in the latest edition of Juicy Mag (see consumer section). In travel, it manifests as the ‘quick fix indulgence’ such as weekend breaks or seeking more luxury elements as part of a package.

• Bleisure travel: Combining business and leisure trips started taking off in 2007/8. Again a focus here on gaining value from combined trips.

• Staycations: Growth in domestic tourism set to continue in 2010, especially for the leisure and family market and the budget-conscious.

• Pop-ups and third spaces: Following in the footsteps of retailers and consumer brands, travel brands are expected to move into experiential territory. The article predicts pop-ups at music festivals, sporting and outdoor events. On the flipside, there is a suggestion that hotels could open up to become ‘third spaces’ a la Starbucks. IHT plans to position their hotels as location to gather and network during British Tourism Week in March this year.

• Creating more choice: Pointing to the need for increased choice at breakfast, there is an underlying trend here to provide better choice, customised to individual needs. IHG is set to introduce low glycaemic index menus for business travellers who need to maximise productivity.

• The next hotspots: For business and leisure travellers, IHG predicts growth potential in the Eastern Mediterreanean, Commonwealth of Independent States, Turkey and for unusual parts of the Middle East.

• Female business travellers: Touching on customisation is the need to cater better for female business travellers throughout the travel experience.

• Productivity: In the business travel market, emphasis is on making the most of business meetings, since they are happening less frequently. Check out IHG’s Sleep Advantage product, set to roll out in Europe across 2010.

Lately I’ve been digging into what the medium-long term implications of the recession might be. I was browsing the NYTimes this morning and this article on night classes caught my eye.

It reveals that record numbers are attending night schools at community colleges across the US, as consumers of all ages seek to improve their standard of living, achieve aspirations and lead a better life.

But these aren’t just ordinary nightclasses. They take place literally in the early hours of the morning or during night-time (midnight to 2-3 am) – such is the demand for retraining and gaining extra qualifications. Attendance numbers are booming for this kind of study.

On an individual level, it requires an extraordinary amount of willpower and drive to take this on. Beneath the surface though, I think this symbolises how the recession has had a deeper, more profound impact on people’s lives.

To go back and do a degree or retrain to be a nurse in your 50′s is pretty amazing when you are managing it with a job and family life. In addition to a better lifestyle further down the line, it’s about having greater control over one’s life, fulfilling dreams and feeling good about yourself.

Summer is typically a time when new graduates are relishing that the exams are over and looking to the future to embark on their career. I remember this well, but lucky for me back in 1997, the economy was sound and the dot.com era was bringing in a new age of entrepreneurship. I remember being really excited and couldn’t wait to get on the treadmill.

Today, the situation could not be more different. Students looking to enter the workforce face huge uncertainty. How can they get experience? How do they compete against so many for so few jobs? What jobs will be out there in the future? How and when will they pay off their student debt? When can they move out from the parents and gain independence? etc…

These concerns are far from short-term. As reported in The Guardian, the Higher Education Careers Service Unit (Hecsu) highlights that the graduate job market could be depressed for up to four years. Whilst, there are still graduate jobs out there, the number is far diminished forcing new coping mechanisms.

Here we pinpoint, how students are coping in the recession:

1. Gap travel: Gap years are an attractive proposition to gain life experiences and work experience. Graduates are joining the older youth demographics, both with limited financial ties, and going abroad to wait out the recession.
2. Extending studies: The Guardian reported in June that more UK grads are staying on to do post-graduate courses, gain important vocational skills and Masters.
3. Support/advice: Graduates are in need of careers advice more than ever. As well as career services, they are leveraging online tools and social media to support job hunting efforts.
4. Internships: Working as an intern or freelancer is a crucial way to build experience and the CV. But even interning is highly competitive in today’s climate. There is some respite from this as the government launches Building Young Britain, creating funding for internships. The Graduate Talent Pool website connects graduates with companies offering internships, some 2,000 in total.
5. Gap work: Part-time work to pay the bills e.g. retailing, bar work. Unable to find their desirable job, graduates may well have to do 2/3 jobs to survive. Graduate-jobs.com reveals that direct selling has become popular, benefiting the likes of Avon.
6. Family reliance: Undoubtedly, moving back or staying with the parents, will be high on the agenda. Although financially beneficial, loss of independence and freedom is not always conducive to a youthful lifestyle.
7. Cash poor + time-rich = online: It goes without saying really, but this audience will be spending an abundance of time online to help kick start their career. There have been quite a few studies of late underlining how consumers at large are spending more time online in the recession for entertainment, information and communication purposes.

For today’s graduates, it is challenging times. They are being forced to try new things and adapt their lifestyle to survive in more difficult times. The ramifications for brands are just as important. Youth-targeted brands need to provide a supporting arm to graduates to help them navigate these murky waters. Of course, this could be as much about creating something that embodies happiness or entertainment, as it is about providing some real utility to the job-seeking or financial management process.

Perhaps one of the more serious questions is, what will be the medium-long-term impact of a generation that may avoid and may well abhor excessive consumption?  This is a much bigger subject that we can do justice here. An article in the New York Times in January, called Recession Can Change a Way of Life, looks at the deeper implication of the recession on consumer behaviour. Some food for thought.