Retailers are always looking for ways to gain market share and build loyalty, but the strategies that work today may not be relevant in the future. A recent report by WGSN on the future consumer sheds some light on the emerging trends that businesses need to take into account. The report states that four consumer profiles will drive businesses in 2025: the new nihilists, the reductionists, the timekeepers and the pioneers. According to Helen Sac, consultant director of APAC at WGSN, the ne
the new nihilists are faced with chronic emotional turbulence and disillusionment.
For them, finding new meaning in a seemingly meaningless existence leads to them reframing nihilism as an optimistic alternative.
“This demographic, mostly made up of Millennials and Gen Zs, are beginning to question the productivity-obsessed and goal-oriented culture that they came of age in,” Sac told Inside Retail.
She went on to say that they are overwhelmed by the problems facing the world they inherited, and are compelled to take action as they’ve got nothing to lose.
“To cater to this demographic, retailers should look to the rise of modern co-ops and equitable value-based user experiences that reflect the neighbourhoods where they operate,” she said.
The reductionists
Similarly, the reductionists are trading networks for communities. They are looking to re-humanise their lives, and are determined to combat loneliness and rebuild their daily in-real-life interactions.
“The reductionists are looking to break the cult-of-convenience and rely more on communities than networks. They will look for ‘good growth’, a renewed focus on personal rather than digital networks, and ways to embed daily ties into their communities,” she noted.
From intelligent packaging design to regenerative capitalism, Sac feels brands need to be responsible for regenerating economic, ecological and social value instead of just producing mere financial profits to cater to the reductionists who are looking to spend with their values.
The timekeepers
Another subset of consumers is driven by the increase in ‘time anxiety’ from the pandemic. They feel a sense of shame around not living up to their potential or maximising time. For these so-called timekeepers, the pandemic has influenced a cultural reset,permanently warping their relationship with time, age and how they view other demographic groups.
“This intergenerational cohort is rallying against snippet culture, and focused on new productivity markets of success such as travel, leisure and togetherness,” she explained.
Moving ahead, she said we can expect a shift from a monochronic to polychronic time. The latter is more fluid and focuses on people and ability. Polychronic cultures operate with less urgency and set rules.
“The timekeepers are powering a shift towards polychronic time, in pursuit of slowness and leisure, and retailers need to offer strategies as well as channels to cater to this cohort who sees time as an ultimate reward and currency,” she elaborated.
The pioneers
The last consumer profile is the pioneers. They operate at the fringes, experimenting with entrepreneurialism and new ways of living, while combating societal hurdles.
“The role and purpose of physical and digital space sits at the epicentre of their focus, as they reimagine what it means to exist, connect and be cared for,” Sac opined.
Sac recommends brands and businesses looking to attract these consumers to pay close attention to strategic investment opportunities in the metaverse.
“Closer to 2025, we’ll start seeing pioneering fashion executives decamp physical apparel for the digital fashion space. Meta-commerce will also evolve beyond educational service to more interactive, experimental and community-driven formats for the Web3 community,” she said.
Macro trends
Sac feels that in 2025, the top priority for retailers will be to challenge the way they think, as society will be increasingly oversaturated with information in an era of great dissociation and convenience culture will reach critical levels.
“Retailers need to be mindful of how they connect with their customers and their investment strategies for ‘good growth’ – one that is measured, ethical and mindful of the people and the planet,” she added.
She feels that attention spans will narrow as snippet culture is expanding the ways that we experience the world.
“For example, most consumers would be less likely to visit a site that takes a longer time to load, even if it’s only for 250 milliseconds. Brands will need to rethink strategies on humanising their points-of-sale and points-of-purchase,” she stressed.
Sac predicts that retailers will be strengthening their online offers and forging strategic partnerships with local businesses, as consumers will be looking inwards for local touchpoints and experiences.
“For instance, fashion brands should look into worker-owned garment manufacturers which invest in the local supply chain and pay fair wages to garment and factory workers,” she explained.
Degrowth for good
The concept of degrowth for good, in which consumers focus on the essentials with a less-is-better mindset, has gained momentum in recent years.
According to Sac, brands such as Ralph Lauren have made fewer products over the last five years despite still making a profit, proving that degrowth can also be good business.
“Brands, retailers and marketers need to stay ahead of the curve by tapping into alternative solutions to grow their business without negatively impacting the society, people and the environment,” she noted.
On a final note, she also reiterated that while the metaverse and generative AI will still be a nascent space in 2025, the gaming industry will continue to grow and there will be growth in the gaming creator economy.
“Gaming commerce will also offer additional revenue for brands as youth-focused and digital-savvy brands will have a gaming strategy in place,” she concluded.