Kathy Gibson reports – The 2020s have generally been an uneasy decade, with disruption coming from many directions – and this is affecting how consumers feel about the brands they buy.
Nick Coates, regional CEO of Ipsos Sub-Saharan Africa, points to a several macro forces that have influenced this disruption.
They begin with societies in flux, including issues like population fluctuation, community migration and immigration, life stage and family evolutions, greater ethnic and religious diversity, and a move to establish identity.
The second major force is technology, with the role it is playing in our lives becoming more pervasive – with both positive and negative impacts. “Yes, technology is great , but there is often a darker side as well,” Coates says.
Massive economic disparities can be seen around the world, and these divides are widening. At the same time, inequality gaps are developing and the cost of living is rising, driving the collapse of the middle class.
Coates points out that the generation entering the workplace now will be the first since the Second World War that will be worse off than its parents. “This has major consequences and implications. Worldwide we are seeing major rises in the cost of living, and this is driving alternative value structures.”
Environmental emergencies are equally important to consider, including things like climate change, loss of biodiversity, sustainable growth and resource depletion.
Meanwhile political splintering is driving polarisation and increased nationalism. “Technology’s dark side can be seen in political polarisation,” Coates says.
A major disruptive force is the growing lack of confidence in governments and institutions, which is increasing geopolitical conflicts and entrenching inequality.
The wellness revolution highlights systemic health inequality around the world, while it is also driving the emergence of breakthrough therapies and the integration of health and technology.
These forces are driving nine trends, Coates says. These are:
- Globalisation fractures
- Technowonder
- Nouveau nihilism
- Splintered societies
- Climate convergence conscientious health
- The power of trust
- Retreat to old systems
- Escape to individualism
Technology plays an outsize role in driving trends, Coates says. “It is part and parcel of who we are.”
The stats show that eight out of 10 South Africans cannot imagine life without the Internet, with older, higher income and more educated people more likely to rely on technology.
“At the same time, there is this constant tension,” he adds. “We expect technology to solve problems (78% of South Africans). But at the same time, a large number of South Africans (58%) feel technological progress is destroying our lives.
“So people see AI as a force for good and an opportunity but, at the same time, there is this fear of technology.”
Emerging markets tend to be more positive about technology, with more advanced economies demonstrating more trepidation.
In this world, the power of trust is massive, Coates explains.
“With society in such a state of flux, trust becomes more important – and South Africa tends to over-index against other markets when it comes to trust.
Consumers believe that brands can make money and do good, partly because they think brands do more than the institutions we no longer rely on to solve problems.
Consumers are also more likely to trust a brand they know.
“From a customer service perspective, consumers feel it is becoming too automated and losing the human touch. They feel it is more difficult to keep the human connection.”
Consumers are generally willing to spend more on a brand whose image appeals to them.