Introduction
This publication introduces you to GWI global report Connecting the dots – consumer trends that will shape 2023 which discover the trends that will dominate year 2023. It literally connects the dots between what people say, think and do. On a deeper level, it reveals the logic and contradictions that affect the consumer psyche. Data in this publication are based on surveys carried out during 2022. This report highlights the main trends influencing consumer purchasing behaviour and mindset. The report is part of a wider international Core report, from which some of the data is taken. Connecting The Dots report’s customer surveys provide comprehensive information to help businesses in different sectors to develop their operations. Identifying trends and signals is important for future and current tourism. It will also provide topics for other learning activities in the course. The current crises in the world are very much reflected in consumer choices, but people from different cultures and groups understand these changes in different ways. This has a major impact on the research findings, which in turn guide the direction of the future. It is of paramount importance to consider how consumers are responding to these crises and what they are doing differently as a result of their own priorities and worldviews.
Discussion of the report’s key claims
The main themes of the report from a customer perspective are social media trends, which are gaining international popularity among consumers, especially this year. These themes include the increasing multi-dimensionality of the online experience, the information overload on social media, the decline in consumer trust, the decline in time spent online and its impact on the attention economy, and changing consumer behaviour when shopping online. The report also highlighted the virtual world envisioned by the metaverse, the importance of customisation in gaming, impulse shopping and the ‘grab-bag’ in the coming year, the emergence of financial convenience in consumption, the decline in financial and economic confidence and the important issue of sustainability, which has a prioritisation problem in today’s society. While all of the topics in the research report were very interesting to read, I am most interested in the following topics.
Developing the online experience
The way we use and experience the internet has changed, even though it is still actively used by more than 5 billion people. Fewer and fewer people use it to browse and search for information. It has become less functional overall. The search for information is not what it used to be. Consumers want to know that their online time is not wasted, as work and other compulsory tasks reduce the amount of free time they have. The things we often do online are losing their appeal, what is a clear message that brands need to be creative.
The average daily time spent online in 2022 will be 6 hours and 43 minutes. That means almost half of our waking hours are spent online. The results are still quite alarming, because time spent online has reached an all-time high, whether it’s social media or the internet in general. It is a possible side effect of the growing distrust of what is visible online, and it will have an impact everywhere. The data will give us a better understanding of what to expect and what the opportunities are for future trends as development moves towards the metaverse and social media platforms adapt to a post-TikTok world.
Entrepreneur and founder of Lotus, Mitch Kapor has said “Getting information off the internet is like taking a drink from a fire hydrant”. He refers to the fact that there is an infinite amount of information available, which is not always a good thing, as not all information is consumer-friendly. They also want easier and faster access to information. This is where apps like Tik Tok are very effective. Although more people spent more time online during Covid, the daily average is now almost the same as before the pandemic. This is a possible sign that we have reached a kind of internet saturation point. So the next interesting question is, what happens next?
Social media to the first stop on a shopping journey
Today, we no longer look for products, companies look for us online. It has also completely changed the way people consume, because shopping has become so effortless. People’s reasons for using the internet and the way they use it have also changed. This has major implications for many online retailers, who now need to rethink their approach to succeed online among other strong businesses. According to data recently shared by Google, almost half of young people search for answers on TikTok or Instagram instead of Google search. This is just one concrete example of a change that is directly affecting the profitability of social media marketing and sales for many businesses.
Online shopping is now based on less information and more action, because while information is still the main reason for going online, it no longer plays as important a role as it used to. The mindset and expectations we are used to with internet users will not be the same with the new generation. Spontaneous generation Z is more interested in community and their own interests than online shopping, although shopping has not stopped, because around 2 in 5 younger consumers still make regular impulse purchases. New generations are slowly shaping the future of social media in their own way. Convenience is worth emphasising, as it is part of the reason why they are looking for products on social apps in the first place. People will finally get used to this easier standard and start demanding speed throughout the buying process, not just at the beginning.
Consumer “treat budget” in 2023
Every crisis brings its own unique challenges, so we can learn from past downturns and understand how consumers might behave in the future. Consumers’ behaviour and attitudes are not so simple, as they sometimes act in ways that are the opposite of what one might rationally expect. Nothing can be known for sure, as the future outlook in this report is only an estimate. However, no other recession has ever before followed a period of such tight constraints, so the demand is high. Savings accumulated as a result of the pandemic and a favourable labour market may increase economic comfort, although it is clear that economic security is highly uncertain in such times and is likely to remain volatile. A large proportion of consumers are not yet stopping spending, so this creates confidence in the business economy.
In 2023 clothing will be the only category in the top three shopping choices for all genders and sexes. Globally, clothing purchases have not varied significantly, although more attention is being paid to sustainability in affluent societies. Quality takes precedence over cost when deciding which brand to buy from. While price is important, lowering it is not always the wisest course of action – especially for luxury brands. Research shows that lowering prices can potentially reduce the desirability of a purchase and even reduce trust.
In addition to clothing, skin care and beauty are high on the agenda. The resilience of beauty is likely to be the result of a number of factors, and is no longer linked to superficial things. It comes through more social interaction, affordable products and emotional connection. The third biggest shopping trend is predicted to be travel. According to the GWI report the number of people buying holidays or travel tickets outside China has increased by 19% since middle of 2021. Millennials are 22% more likely than everyone else to say they would spend extra on flights and travel as general.
The results of GWI surveys show how much consumers value leisure and travel after being tied to the workplace for so long. According to GWI Travel, just over 90% of consumers say they plan to go on holiday in the next 12 months, with many wanting some much-needed relaxation. For many, breaks are key to maintaining wellbeing, so travel brands should capitalise on these features to capture consumers’ attention. Domestic holidays are more important in most markets, and this has also been reflected here in Finland. It’s great that local travel is valued and that there is a desire to reduce emissions from air travel. There are many other interesting findings from last year’s tourism surveys that also have implications for the future.
Conclusions
This and broader research focusing on specific areas of social media growth will help both students and companies working in the field. Sustainable development is especially topical and an important issue, because sustainable development is taking a back seat. The writings in the report made me think about how continuous development work is needed to improve the customer experience online. The review had a positive impact on me and made me think about myself as a social media consumer. I learned a lot about each of the topics in the report, especially from the results of the GWI Core customer surveys. I was particularly impressed by the research on sustainability, as it has been discussed a lot in other tourism courses and there are many perspectives to explore.
References
Global web index Connecting the dots – consumer trends that will shape 2023
FYI: As part of a larger research, GWI has also produced a separate data set GWI Travel on where’s travel heading next. This research would also be very interesting for the course, as it explores what makes the experiences of tourists important or destructive in the aftermath of a pandemic. It will allow us to see their views at every stage of the travel buying process. You can order a demo of the report from the link, if you are more interested in the topic.
