It feels like 2023 will be the year when things really return to the way they were. COVID-19 restrictions have largely been lifted, people are working in the office more frequently, and travel is returning to pre-pandemic levels.
Yet as we overcome one crisis, we’re starting to feel the effects of another – the cost-of-living crisis. Talks of a global recession and the recent spate of layoffs have put additional stress on people around the world.
Moreover, the pandemic has left an indelible impact on us as consumers. Even as we transition back to our pre-pandemic ways of life, our behaviours and habits have become influenced by how we lived for the past three years, where we relied on the Internet and social media for almost everything, from entertainment to shopping to completing our daily chores, and missed out on things like physical human connection.
With the many different forces at play, it’s hard to make sense of how people truly think and feel. Our latest Connecting the Dots report sheds light on the top need-to-know trends for the year ahead.
Search is no longer the same as before
Recent data shared by Google shows that nearly half of the young people look to TikTok or Instagram instead of Google Maps or Search when looking for answers. The percentage of Gen Z’s online time spent on social media is at an all-time high of 41 per cent, and social media is fast overtaking search engines in becoming the preferred platform for these consumers to start their purchase journey on.
Social media is now seen as a one-stop shop for one’s purchase journey. Social media is an avenue for Gen Zs to explore and find things they didn’t even know they needed.
Also Read: How to orient your brand to Gen Z values
We also found that 48 per cent of Gen Zs are heading to social media for product search, compared to 44 per cent who use search engines. Ads seen on social media have become Gen Zs’ top brand discovery tool when shopping online, and Gen Zs are now more inclined to get recommendations and ideas from real people rather than from an article that could have been sponsored when shopping. Gen Zs in APAC, in particular, are more likely than the average internet user to use vlogs in their product research.
When looking at APAC as a region and its consumers across age groups, our findings don’t deviate much from the above. 60 per cent of APAC consumers say they discover or research products/brands through social media.
With the number of people who are doing their shopping-related research on social media continuing to climb and with platforms testing new features to meet this growing need, brands need to keep track of what’s culturally relevant to their audiences if they want to cut through and make an impact.
Internet and social media behaviours and attitudes are shifting
As we shift back to our pre-pandemic lifestyles, the way we use and even feel about the internet has changed. While certain activities like online gaming continue to thrive post-pandemic, activities that used to be very much associated with ‘going online’ have plateaued.
For example, the number of people globally who use the internet to find information has fallen by 14 per cent since Q3 2018. There are also fewer consumers who are using the internet to share opinions (down 11 per cent), keep up with news (down 15 per cent), and engage in general browsing (down 14 per cent), demonstrating a shift in online habits and how such activities are gradually becoming less important to internet users as a whole.
Looking at social media, platforms like TikTok, Instagram, and, more recently, BeReal and Bondee have become a means for people to connect with one another. However, as we become inundated with more apps to download, more notification alerts on our phones, and never-ending posts from the friends and celebrities we follow, we might feel the strain that social media has on our mental health.
Also Read: Gen Z is redefining global consumption. Can companies keep up?
In fact, consumers who say social media causes them anxiety have grown 11 per cent since Q2 2020. Our latest report on Gen Zs reveals that this younger generation worries that they’re spending too much time on social media. A combination of heavy representation of unrealistic body images and more online abuse is leading female Gen Zs to feel the negative impact of social media.
The ramifications of this trend are incredibly broad, which is why brands need to be mindful of creating a trusted, authentic, and captivating online experience for users.
A cost-of-living crisis doesn’t mean that there isn’t room for treats
Although consumers are feeling the heat of economic pressures and being more selective in where they spend their money, financial confidence in APAC looks steady, where more than half of APAC consumers express a positive outlook towards their personal finances and only 10 per cent anticipate a decline in their financial situation.
Previous recessions have shown that products and services can quickly shift from essentials to treats in consumers’ minds. The most distinctive treats that people are allowing themselves to splurge on this year include clothing, skincare, and travel.
In APAC, 84 per cent of consumers made at least one major purchase in the last three-six months. As more people are getting out of the house and socialising, beauty and clothing have become categories that people are willing to spend on. Clothing has emerged as the most preferred indulgence for APAC consumers, with 33 per cent saying they have purchased clothing as a treat for themselves in the last six months. Even when money is tight, people generally make space for small indulgences that put them in a good mood.
Our research shows that quality is the top purchase driver overall, with 53 per cent of global consumers saying it’s important when deciding what to buy, so brands should hone their messaging around the durability of their items as consumers look to make their money count.
While we can’t be sure what lies ahead, it’s important for brands to remember that there’s still so much pent-up demand, and many consumers will be carving out space for affordable, high-quality and ‘must-have’ treats.
So much is going on around us that is influencing the consumer mindset. By connecting the dots between what people say, think, and do, brands can make sense of what’s happening and zone in on what really matters to consumers across the globe.
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