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Innovation, inspiration and ice cream – the FF consumer safari

On Thursday, the Future Foundation and partner The Liminal Space took a small group of clients on our first consumer safari, a curated foray into the experiential side of insight gathering.  To stimulate new ways of thinking, we touched on three very different trend narratives – emotive consumption, ethical consumerism and contemporary connoisseurship.

First stop – the  Victoria Miró contemporary art gallery in Islington, currently exhibiting works by Grayson Perry and Sarah Sze.  Elke Seebauer, our guide and senior sales representative, explored some of the guiding principles behind working with ultra-high-net-worth individuals.  What came through was that for many sectors, the consumption journey can be a deeply emotive and personal experience.  Art collectors are passionate consumers, trading loyalty for exclusivity, trust for authenticity.

The artwork also reinforced the fact that as communicators, we sometimes need to look at things in totally different ways.  Grayson Perry’s tapestries for example, detailed his own consumer safari as he travelled among the taste tribes of Britain, literally weaving the characters he met into a fabric narrative.

Next stop was FARM:, an ethical and environmental outpost in the unlikely urban landscape of Dalston, Hackney.  Co-founder Paul Smyth took us on a journey, starting with a derelict East End shop that was renovated with the help of the local community, via a prototype closed loop agriculture system that harvests fish manure to cultivate soft leaf crops and ending with a vision to bring farming to the urban environment.  FARM: taught the group about innovation, passion for an inspirational mission and grassroots campaigning.  Not to mention how to grow mushrooms out of cappuccino waste!

The final stop of the day was Borough Market, where we met food artist/ fanatic, Caroline Hobkinson.  We’d been promised a futuristic feast from 2062 – ice cream, Stichelton cheese, salmon injected with peaty whisky, locally produced brownies and mint-wrapped edamame beans featured highly. Caroline’s retrofuturistic method of projecting us into 2062 to look back on 2012’s attitudes to food chimes with our own innovation methods, drawing inspiration by looking backwards from the future.

Thanks to The Liminal Space for providing such an entertaining, inspiring and educational experience.  If you are interested in future consumer safaris, let us know!

Your questions answered: part 1

Future Foundation conferences always inspire debate – and our last one, held on May 3rd, was no exception.  Although our fantastic host, BBC Home Editor Mark Easton, fielded as many questions as possible, ideas  continued to stream in via our Twitter feed and text service.  So the panel have regrouped to answer the additional questions – split into two posts.

Matt Taylor via Twitter (@DJMDT): Richard, is it possible for the Jubilympics Summer to positively influence consumer confidence? Will that have any effect?

Economics Editor Richard Nicholls says: Matt – analysis of previous Olympics reveals no conclusive short term pattern on overall GDP growth (e.g. Spain in 1992, Australia in 2000, Greece in 2004, USA in 1996). Similar for consumer confidence for recent European games. This is the topline though. Below the surface, different sectors will see very different fortunes with a huge boon for some obvious sectors, commercial opportunities for others, and perhaps a short term hit for e.g. manufacturing.

Jubilee? Little overall effect on consumer confidence from either the Golden Jubilee in 2002 or the Royal Wedding in April last year. Retail sales were strong in April 2011 – though this was partly also a function of the weather.

By text: To what extent are the trends and forecasts raised today entirely dependent on economic recovery?

FF Economics Editor Richard Nicholls says: That depends on the trend! But most of those showcased at the conference are not recovery-dependent (or only in detail rather than direction).

In late 2008 as we went into recession, and then in 2009 as we came out, we did some analysis of trends that we being boosted, hampered and impacted in a non-directional sense by the recession as part of our Recession Central Scenario and New Normal documents. Much of the reasoning for this still holds. Examples: many technological trends are largely independent of downturn. Sales of smartphones have soared despite a fall in disposable incomes. So Performative Leisure, Murdered by Modernity, The Quantified Self, etc. are driven by non-economic factors. The same is true of demographic or social trends like The Ageless Society.

Maximising has been driven by downturn (but also by technology – and we don’t expect it to fade away immediately on lasting recovery).

Megan Bannon ‏via Twitter (@anthromeg): If the Internet is impacting how we think, then how is it impacting our culture?

Jim Murphy, Editorial Director, replies: Goodness, what a powerful question. Not easily answered in a bite. But, for example, the internet has revolutionised the whole culture of human contact and indeed intimacy. (Consider how hard it is these days to lose contact with a friend). Whether this is a good story or bad news all round speaks to how one views the Murdered by Modernity trend. But we could talk about this theme all day!

Sue J via Twitter (@spartaksuze): If most brands are offering loyalty rewards and personalised offers, does that devalue loyalty as a concept?

I don’t know if it does.  I’d argue that being treated with – genuine – personalised offers that we find helpful or interesting can only make us more loyal.  I’m sure that Amazon have won loyalty by acting as a choice-editor for many people and leading them to interesting products that they may not have found themselves.  As is so often the case in marketing, it all depends on the quality of the execution.

I think we also need to be careful to distinguish genuine loyalty from people who can’t be bothered to change supplier.

Idiology via Twitter (@idiologists): Have consumers given up on personal responsibility for the environment? We now see that govt should act before individuals

Jim Murphy, Editorial Director: Consumer motives towards green agendas have held together pretty well across the economic difficulties of the last 4 years. But it is indeed true that consumers want companies and governments to do the heavy lifting. One related question is : what happens when so many scientific innovations  – in the field of fossil fuel exploitation and use, for instance  – create more eco and more guilt-free consumption?  What happens when transports systems become so green that active pro-green consumer engagement is not required?  This is the world we are entering.

Keep the debate alive – add your own comments and ask us questions!

Additional questions from the nVision UK Client Conference

There were a few questions on Wednesday that we didn’t have time to answer at the end of the session.  We have put the remaining questions to our speakers and their responses are below:

“I am interested in getting your views on the changing role of the high street. With click and collect becoming increasingly more popular and pureplay retailers looking to partner with high street stores or open stores of their own, is the high street becoming more of an information source rather than just a place to purchase your goods?”

  • Parcelforce

In the past, there was a fear that as e-commerce grew, the high-street may suffer as consumers moved to cheaper, convenient online competitors.  However, many of the examples of self-service I gave at the conference point to technological innovations that are enhancing the in-store shopping experience as well as the process of gathering information.  The mobile web is also increasing the information that consumers have at their fingertips no matter where they are – a variety of apps allow consumers to scan items in-store and get an immediate price comparison of that item from other high street stores as well as online.

Bricks-and-mortar and online share a symbiotic relationship and mobile technology is helping to blur the lines between the two. This gives rise to so-called “inline” shopping where technology meets the traditional retail experience.  On top of this, there are several specific reasons why we would argue that the high street will not become solely a base for research:

  • There are limits to the customer service experience online: in-store offers a more complete experience than shopping online thanks to the opportunity for theatre.
  • Localism has a major role to play: there is strong support for local issues/communities/high streets and an accompanying appetite for a more intimate, familiar retail experience.  Localism is going to provide sizeable opportunities in the medium-term.
  • Technological innovation (particularly in the self-service arena) is set to continue enhancing the in-store experience allowing consumers to not only gather ever-more usual information prior to purchase, but also to streamline and improve the purchase process.

Of course, high streets (and the sector in general) still have some major challenges ahead.  Macro socio-economic problems such as regional and inner-city decline will battle with severely restricted disposable incomes.  Overall though, the benefits of shopping in-store (trial, enhanced service experience, immediate gratification etc) will ensure the UK high street is still able to fight for its place as a point of purchase and not just an information source.

- Katie Toll, Head of Research

What impact do you feel inadequate pension provision and saving is likely to have on the extent to which older consumers can get involved in helping out grown up children and grandchildren? Do you see older consumers’ disposable incomes and what they spend on themselves becoming terminally squeezed?

  • Horticultural Trade Association

The new twist on the ‘sandwich generation’ whereby we see a new OAP generation (Old Age Providers) will be one that is short lived. As mentioned in the conclusions of my presentation, the OAP generation is the last of a ‘golden generation’ that will be able to provide for their whole family unit. The current OAP generation are in a unique position to help financially support the rest of their family but, as you suggest, inadequate pension provision together with a reduced level of asset accumulation (largely due to a decline in the housing market) will mean that future grandparent cohorts will not be in the same financial position.

It is likely then that the financial responsibility will be more evenly shared across the whole family along with extra support from extended networks/family ties and via new means such as social lending sites such as Zopa.

- Yasmine Baladi, Associate Director, Client Services

In terms of ethical/social considerations are there differences in terms of age and social grade?

  • JD Williams

The proportion that agree with the statement “I am concerned about what I personally can do to help protect the environment” stands at  over 70% and remained firm throughout the recession.  There is a degree of variation across different socio-economic groups: green sentiment is particularly acute among women and becomes more of an issue among older segments.  Similarly, more affluent consumers are more likely to agree with the statement but despite that, agreement does not fall below 65% in any group.  When we look at behavioural measures we find fewer differences.  The War on Waste has seen consumers preventing financial waste as well as simultaneously meeting their green concerns and this is reflected in the fact that there is no difference across social grades for the propensity to recycle and reduce energy consumption.  Green has become less about paying a premium and more about minimising wasteful consumption, which has additional financial consequences and so is more attractive to a more diverse range of socio-economic groups.

We hold to our conviction that the trend is for consumers, macro-economic storms or no, to be legitimately and often deeply troubled by evidence of worsening environmental despoliation. But we recognise that the expression of eco-concerns has become something of a social norm: an expression, in other words, in which we are all meant to engage. From our review of public survey techniques, we know that when certain questions relating to environmental worries are put to consumers online as opposed to face-to-face then the expressed level of concern can often be somewhat lower. This does not detract from our general view that climate change is, as a public anxiety, widespread, profound and (for all practical purposes) permanent.

- Pippa Goodman, Commercial Director

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