The new consumerism, according to the firm, is defined by ‘the search for maximum value’, with consumers placing equal importance on the circular economy (the principles of reduce, reuse and recycle) and onto experience (the idea that consumers want experiences, rather than things).
Drivers of the new consumerism are numerous, suggests Euromonitor: thrift, sustainability, tech, authenticity, wellbeing, simplicity and freedom are all aspect informing it.
“New consumerism is a long-term paradigm shift,” explains the firm, suggesting that brands need to start shifting their thinking and build long-term strategies around it.
The circular economy: what is it, and how to respond?
When it comes to beauty, suggests the firm, key strands of the circular economy can be applied as follows:
Reduce: consumers are adopting a ‘less is more’ mindset. Premium personal care and beauty is set to outperform the mass market for CAGR value growth in the coming five years, growing at 3.5% compared to the mass market’s predicted 2.5%.
Recycle: consumers are keen for a zero waste approach to packaging, and major players are responding: Unilever has committed to 100% recyclable plastic packaging by 2025.
The experience economy: experience above things
Euromonitor suggests that consumers today increasingly look to experiential factors to guide their purchasing decisions and behaviours, whereas the accumulation of loads of products is falling out of favour.
“Focusing on customer experience, considering longevity and creating experience-based advertising campaigns can help those without a natural “fit” in this sector,” says the firm.
Experience will become a means to possession, the firm suggests for the beauty industry, with consumers valuing being associated with hype, exclusivity and loyalty.
Loyalty, the firm suggests, is most likely to be earned through a seamless experience, taking into account four key elements: convenience, omnichannel ease, non-transactional (authentic) engagement, and personalisation.