Who Is the New Consumer ????????

Two billion new consumers from the developing world will enter the global economy by 2030.

Who is the “new consumer” who will drive future global growth?

Key Points
• Armed with information technology, consumers become impatient and omnipotent; they drive costs down and quality up, whether in education or food or text-messaging services
• The new consumer is predominantly female – women make 85% of all purchases; they are savvy, demanding, value hassle-free shopping and are multi-loyal among brands and stores
• As the global economy expands, the need for cows will grow sustainably, as consumer demand for meat and milk rise with increasingly affluent populations
• The new consumer demands sustainability, and will punish or reward companies based on their market behaviour, well beyond what the law or political regulations require
• There is no single, broad-based “new consumer”, but rather many diverse segments in differentiated markets
• The “what” and “where” of consumer goods is increasingly giving way to the “how” those products and services have been produced, packaged and delivered
• Not all new consumers want more – in recession-struck economies of Europe and North America, consumers are more frugal, and baby boomers value leisure more than material things

Synopsis
The sheer numbers are sobering, as the Earth’s population will surge to 8.3 billion people in 2030. By then, each individual will eat 45 kilograms of meat per year, twice as much as the 1965 average, and the world will collectively burn 105 billion tons of oil. The expanding economy and burgeoning demographics offer new opportunities for businesses, but impose heavy burdens from savvy consumers who demand sustainable products and services.

Even without all the newborn babies coming into the world each day, the demands of consumers are being unleashed in ways that are transforming the global marketplace from the bottom up. Company executives and even government officials who fail to listen, re-engineer and deliver on these demands will soon find themselves driven out of the marketplace.

Human aspirations have always been high, but technology is now rewriting the rules and the pace of the game. What used to take 50 years to achieve is now expected to be accomplished in five; an item that formerly cost US$ 100 must now be sold for US$ 5. Not long ago, one dollar would buy delivery of eight text messages; now companies are being asked to send 8,000 for the same price.

It would be a mistake to broad-brush the new consumer as any one type or category. Depending on the goods or services and market, there are millions of differentiated new consumers. For example, many do not check or care if a label says “Made in China”. Some value “made locally” for everyday products, but even they likely prefer “Made in France” for luxury items such as perfume. What’s more, in some countries the new consumer does not want any additional stuff, but may even be trading down, saving money for retirement, and shrinking his or her economic footprint.

One potent segment of a global new clientele that is not trading down, however, appears to be women. Their purchasing power has grown alongside technological and political empowerment. They have growing aspirations – for themselves, their children and their spouses – that range from education and mobility to tools for becoming self-employed. Their loyalty to family does not extend to the marketplace, however; unless they find goods and services that are fact-based, emotional and fun, they will turn elsewhere. Fast moving retailers must show what is safe, available, sustainable and affordable.

Some argued that because of widespread risks, regulations on behalf of consumers would be inevitable. Panellists generally agreed, with two caveats. First, even regulations must involve society and be responsive to consumer demands, not unilaterally imposed by a few experts. Second, legal protections merely form the baseline for consumers; success goes well beyond what the law requires.

A broad survey of consumer demands focused on where products come from, how they are made, the size of their footprint and the nature of their labour practices. All of these related to various definitions of sustainability, but that loaded word was open to interpretation. “Green” goods and services remained a niche market for only 5% of elite consumers, while “sustainable” products found broad appeal among 30%. Why? Progress in communication drives research and development to innovate towards reduced impacts. The resulting efficiency may appear in eco-labelling, cradle-to-grave awareness or other marketing efforts, but the progress owes less to visionary leadership or political mandates than to the rising influence of the relentlessly demanding new consumer.

Happy Reading..!!!!