How to Build Products for the Indulgent Consumer?
The way we indulge is shifting
Indulgence is becoming more planned than ever as new technologies give consumers more control over their spending habits and create more regulated daily schedules. Across all industries today, brands are offering a wider range of products and consumers are becoming more health conscious. This requires brands to take a deeper look at the product, experience and occasions the product offers.
The rise of e-commerce is impacting how and where consumers shop, which is reducing the number of impulse purchases. According to Euromonitor International’s Lifestyle Survey, only 23% of consumers “often” make impulse purchases, down from 28% in 2013.
Finding the Right Occasions
More occasions need to be served by a wider variety of products, ingredients and delivery systems. This will lead to new partners, particularly as we become more mobile and consumers look for new ways to spend their time. In order to differentiate a product, we will see brands begin to innovate new products around specific outcomes and moods. For brands such as Airbnb and Uber Eats, there are opportunities to find consumers when they are most likely willing to indulge.
What Companies Will Win?
As we head towards a new world for indulgence brands, companies must refresh their products to meet the needs of the evolving consumer. Brands will need to expand their product portfolios and avoid ingredients with long term health impacts. Vertical integration, real-time innovation and mastery of a much more fragmented channel environment will drive growth over the next 10 years. Finally, brands will need to do more to meet consumers where they are at.
Watch the video The Evolution of Indulgence.