TrendSights Analysis: Experience Economy

TrendSights Analysis: Experience Economy

  • December 2016 •
  • 37 pages •
  • Report ID: 4575036 •
  • Format: PDF
TrendSights Analysis: Experience Economy

Summary

“Experience-driven” consumers are seeking enjoyment beyond the product itself, and are willing to pay more for an enhanced “brand experience”. It is therefore becoming increasingly important for brands to perform at an experiential level.

Trend drivers
- The shopping experience is increasingly standardized and one-dimensional, leading consumers to seek a more tailored experience.
- Consumers increasingly seek to recreate ‘experiences’ at home.
- Consumers, particularly millennials, are less materialistic, and prefer experiences to ‘things’.

Consumer targets
Experience Economy influences purchasing decisions in a variety of ways, and holds the greatest sway among these cohorts -
- Parents of young children
- Better-off consumers and those on moderate incomes
- Older Young Adults and Pre-Mid-Lifers

Companies need to create immersive experiences around their products in order to encourage consumption. Followed by offering consumers with specialist advice and a tailored service to create experiences. Consumption setting is important, whether it be movie nights with family, boutique shops or mobile units. Brands can further harness the power of social media to drum up interest around products and encourage experience sharing.

The report “TrendSights Analysis: Experience Economy” examines what Experience Economy means as a consumer trend and why it is important, who is likely to be the target audience, how FMCG brands can best capitalize on the trend, and what the future outlook for the trend will be.

Companies mentioned in this report: Pimms, Carlsberg, Sol, Jaegermeister, Zipz, Lush, Cosmetic Kitchen, Weleda, Poptacular, Tesco, Marks & Spencer, La Colombe Draft Latte, Gimdog, Dragonfly Tea.

Key Findings

- Experience Economy is a trend with growth prospects across almost all FMCG categories, including but not limited to Food, Alcoholic Drinks and Cosmetics and Toiletries.
- Experience Economy reflects consumer desire for more immersive consumption experiences, and stems from consumer dissatisfaction with the nature and context of everyday consumption.
- Brands must do more to attract consumers by building experiences or moments into products, and allowing consumers to experience products in unique, highly personalized ways.

Synopsis

This report examines what Experience Economy means as a consumer trend and why it is important, who is likely to be the target audience, how FMCG brands can best capitalize on the trend, and what the future outlook for the trend will be.

Reasons To Buy

- Understand which audiences are most affected by the Experience Economy trend.
- Compare the presence of this trend in each industry across the FMCG space, and learn what the key opportunities are.
- See the actions that major brands are taking to get ahead of the greater interest in Experience Economy.
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