Consumer sentiment shifts rapidly, shaped not only by your company’s directives and strategies but also by external forces, such as viral trends, cultural movements, and economic forces. The brands that endure and adapt to these changes in real-time. Brand tracking is more than a periodic check-in – it’s essential for survival. By continuously monitoring brand health, companies can identify strengths, spot weaknesses, understand competitive positioning and adjust strategy accordingly.

But perception isn’t static. A brand with strong awareness today can lose relevance tomorrow if it fails to track how consumers feel, engage, and respond over time. To remain competitive, brands must continuously track their position in the market and be agile enough to adapt.

What is Brand Tracking, and Why Does it Matter?

Brand tracking measures a brand’s performance over time, helping companies identify shifts in the market, consumer trends, competitive trends, strengths, weaknesses, and opportunities to refine brand strategy.

Brand perception is fluid and influenced by consumer experiences, media narratives, and competitive shifts. Brand tracking helps companies answer critical questions:

  • Is our brand positioning resonating with the right audience?
  • How does our reputation compare to competitors?
  • What messaging, campaigns, or brand attributes build consumer loyalty?
  • Are external factors – economic shifts, social trends, or market disruptions – impacting our brand perception?

Key Elements of Brand Tracking

Brand tracking goes beyond surface-level metrics to assess a brand’s health and market position. Key components include:

  • Brand Awareness: Measuring Recognition and Recall
    • Unaided vs. Aided Awareness 
    • Top-of-Mind Awareness: The first brand a consumer thinks of in a category often signals market leadership and competitive strength.
  • Brand Perception & Sentiment Analysis
    • Consumer Attitudes and Associations: Understanding how consumers feel about a brand—and the attributes they link to it—is key to shaping brand identity. These should include both functional benefits and emotional benefits.  As well as brand personality. 
  • Purchase Intent, Satisfaction & Customer Loyalty Metrics
    • Likelihood of Purchase: Gauging how likely consumers are to choose a brand helps predict future sales.
    • Satisfaction: Understanding brand satisfaction versus competitors
    • Net Promoter Score (NPS): Measuring customers’ willingness to recommend a brand indicates satisfaction and loyalty.
  • Competitive Benchmarking
    • Market Position Analysis: Comparing brand performance against competitors to identify strengths, weaknesses, and market opportunities.
    • Share of Voice: Measuring a brand’s visibility in the market through media coverage and advertising reach.
  • Media & Advertising Effectiveness
    • Campaign Impact Assessment: Assessing how marketing efforts affect awareness, perception, and sales.
brand-tracking-funnel

Turning Data into Strategy

Brand tracking only matters if insights lead to action. Using data strategically, companies can refine marketing, reposition products, and strengthen customer loyalty.

Identifying Strengths and Weaknesses Before They Become Market Issues

Tracking brand health helps brands pinpoint areas where they excel and where they are losing ground. Rather than relying on assumptions, brands that act on measurable shifts in consumer sentiment can adjust messaging and engagement tactics before losing relevance.

Optimising Marketing Campaigns

Effective marketing isn’t just about visibility; it’s about impact. Brand tracking measures how marketing efforts influence perception, loyalty, and purchase intent. If a campaign falls short, data allows brands to tweak real-time messaging rather than wait until the next cycle.

Benchmarking Against Competitors

Brand tracking is most powerful when measured against competitors. Comparing brand health metrics against competitors enables companies to identify gaps in positioning, capitalise on underserved markets, and anticipate industry shifts before rivals do.

Building Customer Loyalty

Brand tracking isn’t just for attracting new customers; it helps brands understand why existing customers stay or leave. Tracking loyalty metrics allows brands to implement better retention strategies, such as loyalty programs, improved customer service, or product innovation.

Brand Tracking Mistakes and How to Avoid Them

Even the best tracking methods fail if poorly executed. Avoid these common mistakes to ensure insights lead to action.

  • Measuring Awareness Without Sentiment
    A high awareness score means little if there are negative perceptions. Brands must pair awareness tracking with perception analysis to get a complete picture of their market position.
  • Tracking Without Business Goals
    Brand tracking is useless if not tied to clear objectives. Tracking must support strategy, whether expanding markets, improving retention, or refining advertising.
  • Ignoring Qualitative Data
    Numbers alone don’t tell the full story. Open-ended customer feedback and sentiment analysis reveal why brand perception shifts
  • Failing to Act on Insights
    Insights are useless if brands don’t act. Whether trust is eroding or a competitor is gaining ground, companies must adjust accordingly..
  • Overlooking Market Trends
    Brand perception doesn’t exist in a vacuum. Economic shifts, cultural trends, and competitors shape public opinion. Effective tracking accounts for these factors.

Brand Tracking Is Not an Option—It’s Survival

Brand perception is a moving target. What consumers think today may not hold true tomorrow, and brands that fail to monitor these shifts risk becoming irrelevant. The market does not wait for companies to catch up; brands that do not track, analyse, and act on data are at the mercy of competitors who do.

Tracking isn’t just about data—it’s about influence. It reveals when a brand resonates or repels, when trust strengthens or erodes. The best brands spot risks before they escalate and seize opportunities before they go mainstream.

Market leaders don’t wait for a crisis to understand their position. They track, measure, and adapt before perception shifts beyond their control. A brand that isn’t tracking its relevance isn’t just falling behind – it’s already lost control of the narrative.

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Understanding Market Size and Why It Matters

Market size is one of the most important concepts in business planning and market research—but also one of the most misunderstood. While it’s often used in pitch decks, strategy documents, and marketing plans, many businesses miscalculate it or rely on assumptions rather than evidence.

So, what is market size really? It refers to the total number of potential buyers for your product or service and the total possible revenue those buyers represent. Knowing your market size gives you a reality check. It helps you understand the scale of the opportunity, determine if your idea is commercially viable, and guide your product, pricing, and positioning decisions.

Getting it right can unlock better investment, clearer strategy, and a faster path to success. Getting it wrong can waste resources on a market that’s too small, too competitive, or doesn’t exist.

In this article, we’ll explain how to calculate your market size, the difference between total and serviceable markets, and how to use this metric to build smarter strategies. For more context, you can also explore our article on why market size is so important.

What Does Market Size Really Measure?

Market size is the total demand for your product or service within a specific market over a specific period—typically one year. It can be measured in two ways:

  • Volume: the number of units or customers in the market
  • Value: the total revenue potential based on price and buying frequency

While some definitions, like the one from Alexa, focus on the number of buyers, market size is more than just a headcount. It’s a commercial forecast—a way to estimate how much you can earn in a defined space, assuming no barriers to entry.

This estimate forms the foundation of business cases, go-to-market strategies, and budget planning, especially in early-stage or growth-phase ventures.

Why Accurate Market Sizing Drives Better Business Decisions

Understanding your market size isn’t just about getting funding—although that’s certainly one benefit. It underpins nearly every aspect of strategic planning. Here’s how:

  • Secure investment with confidence
    Investors want to back companies that can scale. Demonstrating a well-defined and sizable market shows that your opportunity is real and backed by data—not hype.
  • Build stronger business strategies
    Market size informs your go-to-market strategy, pricing model, and growth forecast. It defines the playing field and helps you identify the most profitable customer segments.
  • Plan for scalable hiring and operations
    Whether you’re bootstrapping or scaling quickly, understanding your total market opportunity helps align team size, structure, and resource allocation.
  • Maximize R&D and marketing budgets
    A clear understanding of your market prevents wasted spend. You can target high-opportunity areas with tailored solutions instead of building for segments that won’t deliver returns.
  • Avoid launching into saturated or unsustainable markets
    Estimating your market size forces you to assess whether your product solves a real need, and whether that need exists in a profitable, reachable market.

Want to go deeper? Explore advanced market sizing techniques in our global calculation guide.

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How to Calculate Market Size Step by Step

There’s no one-size-fits-all method to calculate market size, but a structured approach will help you get a realistic estimate. Here’s how to calculate your market size in six essential steps:

  1. Define your target market
    Start by identifying who your product is for. Segment by demographics, geography, firmographics (for B2B), or behavior. This helps avoid bloating your market size estimate with irrelevant buyers.
  2. Estimate the total number of potential customers
    Use reliable data sources such as census information, industry reports, or tools like Statista, IBISWorld, and Google Trends. Your goal is to identify how many people or companies fit your target profile.
  3. Understand buying frequency
    How often will a typical customer make a purchase in a year? This affects whether your market size is a one-time opportunity or a recurring revenue stream.
  4. Determine average transaction value
    Estimate how much each customer will spend per transaction. Use your own price point or market averages from competitors.
  5. Run the basic market size calculation
    Multiply:

Number of potential customers × Average transaction value × Purchase frequency = Annual market size

  1. Validate your assumptions with market research
    Test your assumptions using qualitative and quantitative methods. Concept testing, customer interviews, or survey panels can all help validate if the demand you’re projecting is real.

If you need help structuring this data globally, see our guide to calculating market size internationally, which includes country-specific adjustments.

Is Your Market Size Big Enough to Justify Investment?

After calculating your market size, the next question is: is it large enough to support your growth goals?

There’s no universal benchmark, but in general:

  • Venture-backed startups often target markets of $1B+
  • Bootstrapped businesses or niche offerings may thrive in markets below $100M, provided margins and customer lifetime value are high

If your estimated market size falls under $100 million, that doesn’t mean the business isn’t viable—it just means you’ll need to sharpen your differentiation and focus on profitability early on.

Remember, your total market size isn’t the only number that matters. Investors and stakeholders will also want to know how much of that market you can realistically serve, which brings us to the next metric.

From Market Size to SOM: How Much of the Market Can You Realistically Reach?

Your total market size reflects the full revenue opportunity available—but only a portion of that is accessible to your business. That’s why it’s important to narrow your focus to your Serviceable Obtainable Market (SOM).

SOM refers to the slice of the market you can realistically reach, serve, and convert with your current resources, marketing, and distribution. It’s the most realistic view of your short- to mid-term opportunity.

Several factors shrink your SOM from your total addressable market:

  • Your marketing reach and budget
  • Competitor activity
  • Regulatory constraints
  • Operational footprint
  • Customer acquisition strategy

Understanding your SOM helps set achievable growth targets and improves credibility with stakeholders.

For a deeper dive into how market share fits into this picture, visit our article on how to calculate market share.

That’s where the serviceable obtainable market (SOM) comes in. SOM refers to the portion of your market size that you can realistically reach—based on your marketing, distribution, and operational capacity.

So how do you calculate your SOM?

How to Calculate the Serviceable Obtainable Market (SOM)

Once you’ve estimated your total market size, the next step is to determine how much of that market you can realistically serve—this is your Serviceable Obtainable Market (SOM).

As Tx Zhuo of Karlin Ventures puts it, “If it’s 1 to 5 percent of the pie, you have a realistic plan.” That perspective underlines an essential truth: no business captures an entire market. Your SOM helps ground your growth expectations in operational reality. It considers the actual number of potential customers you can reach with your current capabilities—based on your budget, distribution, and marketing resources.

So, how do you calculate your SOM? According to early-stage investor Jared Sleeper, there are three core approaches: top-down, bottom-up, and value theory.

1. The Top-Down Approach

The top-down method starts with a broad industry estimate—often from market reports or analyst forecasts—and works downward by applying assumptions. For instance, if the global wireless headset market is valued at $2.5 billion, you might assume your region accounts for 10% of that. Then, perhaps your brand positioning appeals to 20% of those consumers. Multiply those percentages to estimate your potential share.

This approach is useful for understanding the overall opportunity, but it can be vague or misleading if the assumptions aren’t grounded in evidence. It’s best used in combination with more tailored methods.

2. The Bottom-Up Approach

The bottom-up method starts with your own product, pricing, and realistic sales capacity. It asks:

  • How many customers can you realistically reach (based on your marketing reach and distribution)?
  • What’s your average selling price or annual revenue per customer?

Your SOM is then calculated as:

SOM = [Reachable customers] × [Average sale value or revenue per customer]

This is often the most accurate method because it reflects your actual go-to-market conditions. It allows early-stage or niche businesses to make defensible projections, especially when pitching to investors or planning budgets.

3. The Value Theory Approach

The value theory approach considers the perceived value of your offering relative to alternatives. You estimate how much customers would be willing to pay for the added value your product delivers.

For example, if your SaaS tool replaces a $200/month manual process and saves users 10 hours of work, you might justify a price of $150/month. Multiply this by the number of customers likely to see that value and convert.

While less data-driven than the bottom-up method, this approach is helpful for positioning premium products or validating pricing strategies.

Combining Methods for a More Accurate SOM

Each of these methods has its strengths. Sleeper recommends blending bottom-up and value theory approaches, as they incorporate the realities of your business rather than relying solely on broad market forecasts.

By triangulating across multiple approaches, you can present a more robust estimate that balances ambition with credibility—essential when presenting to investors or internal stakeholders.

For a deeper view of this layered approach, see our full market sizing methodology guide, where we explain how to combine primary and secondary research for more accurate modeling.

SOM Is Not the End Goal—But It’s a Vital Step

Calculating your market size and SOM is an essential step in launching a product or scaling a business, but these metrics are just the beginning. Without understanding how much of the market you can reach—and compete for—your total market size becomes just a theoretical figure.

Effective market research helps turn these estimates into actionable strategies. At Kadence, we use a mix of qualitative and quantitative tools to help brands validate their assumptions and forecast demand across global markets.


If you’re launching a product, entering a new region, or building a business case, accurate market sizing is where it starts. We help brands go beyond assumptions to define real opportunity—backed by data, not guesswork.

Submit a brief and we’ll show you how we can support your team with research that gives you confidence in every decision.

Before they reach the target market, products or services always start off as unproven ideas. But in order to avoid costly failures, businesses need to understand whether or not they’ll be a hit with consumers.

What Is Concept Testing and Why It’s Essential for Product Development

Concept testing is the process of using qualitative or quantitative research to evaluate your product ideas ahead of launch. It enables you to understand which features are likely to be popular with the target audience, and which may require refinement.

Key methodologies include in-depth interviews, online communities, and structured testing surveys—each designed to gather actionable feedback on your potential product or service. If you’re unfamiliar with the broader benefits of concept testing, our guide to concept testing provides a helpful overview.

The Role of Concept Testing in Market Readiness

Testing product ideas with your target audience enables you to optimize your offering before market entry. By understanding consumer reactions early, businesses can fine-tune features, adjust positioning, and reduce the risk of costly missteps. A robust concept testing strategy dramatically boosts your chances of success—because it replaces assumptions with evidence.

Even seemingly minor product features can profoundly impact outcomes. Concept testing allows you to uncover which elements your potential customers value most. It also gives you clarity on what to include, what to revise, and what to drop before the product ever hits the shelf.

To explore this in the context of innovation pipelines, see our article on why concept testing is important.

Product and Concept Testing in Research and Development

Behind every successful product lies a thoughtful research and development process—and concept testing plays a vital role within it. At Kadence, we’ve partnered with some of the world’s most recognizable brands to transform promising ideas into commercially viable solutions through strategic product and concept testing.

When done correctly, concept testing not only validates the idea but can help shape its final execution—from functionality to pricing to messaging. But how do you test a product concept effectively?

Below are five tested approaches that leading companies use to assess and improve product ideas before launch.

1. Use Concept Testing Surveys to Gauge Overall Appeal and Prioritize Ideas

A concept testing survey can be one of the most powerful tools in your product development toolkit. These surveys can reach large, targeted audiences and provide robust quantitative data on how different ideas resonate.

You can test multiple product concepts to understand their relative appeal and determine which are worth pursuing. Surveys allow you to evaluate core attributes—like usefulness, differentiation, and pricing thresholds—by asking the right questions of the right people.

Often, a Likert scale is used to measure attitudes toward each concept, capturing nuance in consumer perception. It’s critical that your respondent base reflects your actual target market. If not, your results will lack reliability.

A strong concept testing survey can also identify which geographies, age groups, or demographic segments show the highest intent, helping you make smarter investment and go-to-market decisions.

We explore this method further in our examples of product testing article.

2. Conduct Conjoint Analysis to Prioritize Features and Trade-Offs

Conjoint analysis is a statistical technique used to determine how people value different attributes of a product. Rather than asking consumers what they prefer, it uncovers what drives decision-making by presenting combinations of product features for comparison.

For example, in a product testing scenario, respondents might compare variations in price, packaging, and functionality—revealing the trade-offs they’re willing to make. This method helps marketers and product teams categorize features into must-haves and nice-to-haves and assess how changes impact perceived value.

However, it’s important to avoid overwhelming participants with too many combinations. A well-structured conjoint study should be digestible, yet thorough enough to yield insights that guide real-world product planning.

If you’re navigating new product development, explore our dedicated page on concept testing in innovation pipelines.

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3. Use Monadic Product Testing to Avoid Bias and Improve Clarity

Monadic testing presents each product concept to respondents individually, rather than side-by-side. This allows for cleaner, unbiased evaluations of each idea in isolation—particularly useful when you want to gather focused feedback without the influence of direct comparison.

Each participant evaluates a single concept based on criteria such as purchase intent, uniqueness, relevance, and likelihood of recommendation. By isolating the exposure, you can assess raw consumer sentiment and identify whether the idea stands on its own merits.

This approach is often used when testing early-stage concepts or when you want to avoid the cognitive fatigue that can come with multiple exposures. It’s especially useful when the concepts being tested are fundamentally different in form or positioning.

To understand when this method makes the most impact, our overview of concept testing approaches provides more detail.

4. Apply Comparative Concept Testing to Measure Preference and Differentiation

Comparative concept testing places two or more ideas side-by-side and asks respondents to choose their preferred option. This is a practical method for evaluating relative strengths—ideal when you’re deciding between multiple product names, taglines, packaging options, or functional benefits.

While this technique is fast and cost-effective, it does come with a caveat: more polished or visually appealing concepts often outperform less refined ones, even if the core idea is stronger. To mitigate this, ensure all concepts are presented at a comparable fidelity and that creative variables don’t distort results.

This form of testing is particularly valuable when time is limited and decisions must be made quickly. It’s frequently used in packaging research, ad testing, and feature prioritization.

Looking to understand more about how this method fits into the larger testing strategy? See our 5 reasons concept testing is important article for insights into its strategic role.

5. Conduct Concept Screening for Early-Stage Idea Elimination

When you’re at the beginning of the innovation process and have a wide array of ideas, concept screening helps you eliminate weaker options early. This method relies on quick-read formats—typically short descriptions or visual summaries—delivered to a broad sample of your target audience.

The goal is not deep feedback, but rather directional input: Which ideas generate interest? Which fall flat? Which warrant further development?

Concept screening is particularly useful in the fuzzy front end of product development, when you’re working through broad ideation and need to narrow the field efficiently. It’s often followed by more robust methods like monadic or conjoint testing once a shortlist has been established.

To explore how this fits into the research process, our guide to concept testing in new product development explains how to integrate screening into your overall validation plan.

Choosing the Right Concept Testing Method for Your Product

With so many ways to test product ideas, how do you choose the right one? It depends on where you are in the development cycle, how many concepts you’re testing, and what kind of feedback you need.

  • Early-stage ideation: Use concept screening to eliminate weaker ideas and highlight front-runners.
  • Refinement phase: Choose monadic or sequential monadic testing to evaluate each concept independently and in detail.
  • Comparative decisions: Use comparative testing when you’re deciding between two similar options, such as logos or slogans.
  • Feature prioritization: Apply conjoint analysis to understand which elements drive value and which are expendable.

If you’re launching a product in a new market, it’s especially important to localize your testing methods. What works in one region may not resonate in another. Our global teams at Kadence can help adapt methodologies for cultural context and ensure you’re getting feedback that’s not just statistically significant—but actually useful.

To learn more about adapting testing to different markets and business models, our full guide to concept testing outlines strategic considerations in depth.

Turning Insight Into Impact Through Concept Testing

Concept testing isn’t just a checkpoint—it’s a strategic advantage. Brands that build feedback into the earliest stages of development don’t just avoid failure; they design more meaningful products, faster. Whether you’re refining an MVP or comparing go-to-market options, choosing the right testing method can be the difference between assumptions and assurance.

The most successful businesses are those that stay curious—constantly validating, adjusting, and aligning their offer with what real consumers value. In a market defined by shrinking attention spans and rising expectations, the best product isn’t always the one with the best features. It’s the one that speaks most clearly to what people truly want.

Ready to Validate Your Next Big Idea?

If you’re developing a new product or repositioning an existing one, concept testing can help you uncover what your audience values most—and where your idea stands out. From feature prioritization to launch messaging, we help brands remove guesswork and build with confidence.

Explore our concept testing services or request a tailored proposal to speak with our team.

Late one evening in Lagos, 22-year-old Chika is scrolling through TikTok, eyes fixed on a local influencer demoing the latest face serum. She watches the 30-second video twice, screenshots the product, and toggles over to Jumia to compare prices, scanning reviews that look a little too polished to be real. Before checking out, she sends a message to her cousin in Ibadan: “Have you tried this one? Is it legit?” Only after a thumbs-up and a money-back assurance from the seller does she complete the purchase – on mobile, of course.

This isn’t an isolated case. It’s a snapshot of how the next billion consumers will shop, click, and connect.

While Western economies grapple with saturation, inflation, and shifting loyalty, the momentum is migrating – toward Southeast Asia, Africa, and parts of Latin America. These regions are no longer just “emerging markets.” They are where the most dynamic, mobile-first, and digitally sophisticated consumers are coming of age.

The numbers make the case undeniable. According to the United Nations, over 85% of global population growth through 2050 will come from Africa and Asia. The GSMA reports that mobile internet penetration in Sub-Saharan Africa is set to reach 50% by 2025, up from 28% in 2019. Meanwhile, the World Bank highlights how smartphone adoption is leapfrogging traditional infrastructure, giving rise to an entire generation that skipped the PC era entirely.

But these consumers are not easily won. They are bilingual and bicultural, equally fluent in local slang and global memes. They are digitally native but deeply mistrustful, having grown up in online ecosystems rife with scams, misinformation, and empty brand promises. And they are forcing brands – both global and local – to rethink what it means to earn attention, deliver relevance, and build trust in the age of hyper-connectivity.

This is not just a demographic shift. It’s a behavioural revolution. And it’s already underway.

Meet the Next Billion: Demographics, Access, and Expectations

This new wave of consumers is young, connected, and coming online fast. In markets like Nigeria, Indonesia, Vietnam, and the Philippines, the median age hovers around 25. These are societies where more than half the population wasn’t yet born when Facebook launched – and for them, digital engagement isn’t an evolution; it’s a native state.

Urbanisation is accelerating across these regions, but it’s not confined to megacities. Second- and third-tier cities are becoming powerful engines of growth, fueled by digital access and rising educational attainment. In Vietnam, for instance, over 94% of youth are literate, and the number of university graduates has doubled over the past decade. Similarly, Nigeria’s youth enrollment in tertiary education is climbing, despite infrastructure constraints. With education comes language dexterity: millions speak at least two languages – one local, one global – and they switch between them instinctively, depending on the context, platform, or audience.

If their predecessors logged onto the internet, this generation lives inside it – and does so almost exclusively via smartphone. In Indonesia, smartphone penetration has surpassed 75%, with apps like Tokopedia, Gojek, and Shopee becoming gateways to everything from groceries to financial services. In sub-Saharan Africa, handset affordability and prepaid data plans have made mobile the default medium for learning, shopping, and socialising. The desktop? Many have never touched one.

Browser-based experiences are increasingly irrelevant. Instead, this generation navigates a constellation of apps, each with its own cultural role. WhatsApp is for family, Instagram for aspiration, TikTok for entertainment, and Telegram or local forums for unfiltered information. Platform behaviour is deeply segmented and purpose-driven. Brands attempting to force a uniform message across channels are quickly tuned out.

And while their tech habits may look similar from a distance, the nuances run deep. In Nigeria, digital spaces are often leveraged as tools for activism and community solidarity. Mistrust in institutions has made peer recommendations and online reputation more powerful than formal brand campaigns. By contrast, in Indonesia, religious and cultural values shape how products are perceived and promoted – especially in sectors like fashion, beauty, and food. Vietnamese consumers, on the other hand, exhibit a high degree of tech optimism, embracing e-wallets and livestream commerce, but place enormous emphasis on product quality and after-sales service, driven by prior experiences with low-cost imports.

These differences matter. What unites the next billion is their digital fluency, but what distinguishes them is the lens through which they evaluate brands. A price drop may trigger interest in Nigeria, but in Vietnam, durability and performance often take precedence. In Indonesia, localised design or halal certification may be the tipping point. The common thread is that these consumers are not passive recipients of global marketing – they are active participants, savvy navigators, and, increasingly, vocal critics.

To engage them, brands must move past old assumptions about emerging markets being homogenous or easily won with scale. What’s unfolding is a more complex, more nuanced, and more demanding consumer environment – and it’s being shaped not just by demographics, but by deep-seated expectations forged in mobile-first, culturally hybrid, and rapidly evolving societies.

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Mistrust Is the Default Setting

For many of the next billion consumers, scepticism isn’t a reaction – it’s a reflex. Decades of unreliable infrastructure, political instability, and inconsistent enforcement of consumer rights have conditioned buyers to approach brands and platforms with guarded caution. In these markets, trust is not assumed; it’s earned slowly and lost quickly.

The scale of the challenge is significant. According to Edelman’s 2024 Trust Barometer, trust in institutions – including businesses – remains markedly lower in developing regions than in developed ones. In Nigeria, only 42% of respondents said they trust brands “to do what is right,” compared to 62% in the UK. In Indonesia, that figure was closer to 50%, but even there, trust is often linked to familiarity rather than formal reputation – people tend to trust people, not corporations.

This backdrop has fueled the rise of peer-to-peer influence as a dominant decision-making force. In the Philippines, Facebook community groups like “Online Budol Finds” (slang for impulsive purchases) function as real-time marketplaces and review boards, where users share unfiltered opinions about products, pricing, and service. In Kenya, WhatsApp groups play a similar role, serving as both watchdog and validator in a system where traditional consumer protections are weak or absent. Even in Vietnam, where e-commerce infrastructure has rapidly improved, 54% of online shoppers say they rely on recommendations from friends or family over brand messaging, according to Statista.

This preference for informal verification mechanisms stems from bitter experience. Counterfeit goods remain a rampant issue across markets – from fake electronics in Ghana to diluted skincare products in Indonesia. In response, many consumers have developed an internal checklist: check the seller’s social proof, confirm the payment method, look for real customer images, and verify delivery policies. Brands that fail even one of these checks are likely to be discarded in seconds.

At the same time, digital mistrust is compounding the issue. Scams, phishing attacks, and fake reviews have tainted the e-commerce experience. The GSMA estimates that more than 40% of mobile internet users in Africa and Southeast Asia have experienced some form of online fraud or misleading advertising. In Indonesia alone, the National Cyber and Crypto Agency reported over 190 million cyberattacks and suspicious traffic incidents in 2023.

In this climate, even influencer marketing – a strategy once thought to fast-track trust – has grown less effective. In Vietnam, consumers increasingly question whether influencers are being paid to promote products they don’t actually use. The same holds true in Nigeria, where audiences are savvy enough to distinguish between genuine recommendations and sponsored scripts. The result is a gradual shift toward micro-influencers and community advocates, whose endorsements feel more relatable and less rehearsed.

The implications for global brands are profound. Standard top-down marketing no longer carries weight. Instead, trust must be layered in – through reliable service, consistent messaging, transparency in returns and refunds, and responsiveness on the platforms where consumers are active. Brands must also recognise the importance of publicly visible customer interactions. A fast, empathetic reply to a complaint in the comments section may matter more than a million-dollar ad campaign.

Trust, in this context, is not a brand asset; it’s a user experience outcome. And in a market where every interaction becomes a review, the next billion are watching, judging, and sharing – with or without you.

The Battle for the First Page (or First Screen)

For the next billion consumers, the path to purchase doesn’t begin with a browser search – it starts with a scroll. Discovery has shifted from keywords to content, from desktop search bars to full-screen video, and from global search engines to localised social ecosystems. As a result, the first screen – what shows up in a feed, on a homepage, or in a chat group – has become the most valuable real estate in the customer journey.

In Indonesia, 71% of internet users aged 16–24 say they use social media as their primary source for researching brands, according to DataReportal 2024. In Nigeria, that figure is nearly identical. TikTok, Instagram Reels, Facebook Marketplace, and YouTube Shorts aren’t just distractions – they’re digital storefronts where decisions are made in real time, often before a brand’s official website is ever visited. The lines between content, commerce, and community have all but vanished.

And while this trend is visible globally, its intensity in emerging markets is distinct. A key reason: data affordability drives platform choice and usage behaviour. Telecom bundles that include free access to Facebook or WhatsApp often influence which platforms dominate attention. In the Philippines, for example, “Free FB” packages have made Facebook one of the most deeply entrenched platforms in the country’s digital culture – so much so that some users mistakenly believe it is the internet.

The importance of platform-specific strategy can’t be overstated. In Vietnam, product discovery frequently occurs through livestream commerce on TikTok Shop, where real-time interactions foster a sense of authenticity. In Kenya, small businesses routinely post promotions through WhatsApp Status or Telegram channels, bypassing traditional ad formats altogether. In Nigeria, where Twitter (now X) has a strong political and cultural presence, product conversations often unfold in threads filled with memes, humour, and direct audience engagement.

But it’s not just about where brands show up – it’s about how they’re experienced in the moment. Load speed, image optimisation, and mobile UX have a direct impact on trust and retention. According to Google, 53% of mobile users in emerging markets will abandon a page that takes longer than three seconds to load. And that’s not just about tech – it’s about expectations. These consumers are used to fast, seamless, and low-friction digital experiences. Anything less suggests the brand doesn’t understand them.

Just as critically, language and localisation now serve as first impressions. A landing page that defaults to English – or worse, uses awkward machine translations – can signal cultural detachment. By contrast, content tailored in local languages, with region-specific slang and visual references, is seen as a mark of respect and investment. It says: we’re not just here to sell; we’re here to understand.

In a space where attention is both fleeting and fiercely fought over, success no longer goes to the loudest voice or biggest budget. It goes to the most culturally fluent, visually intuitive, and platform-native presence. Winning the first screen isn’t about visibility alone – it’s about resonance.

The Rise of Reverse Aspiration and Quiet Power

Western brands once assumed that success in emerging markets meant becoming aspirational – symbols of modernity and affluence. But for today’s mobile-first generation, the tables are turning. Increasingly, it is not global prestige that earns admiration, but local relevance. In place of overt aspiration, there’s a growing sense of pride in indigenous culture, self-made success, and digital independence. What’s emerging is a quiet power: consumers who no longer seek to imitate the West, but expect brands – foreign and domestic – to meet them on their terms.

Across Southeast Asia and Africa, there’s a perceptible shift from status to substance. In Nigeria, youth are driving a surge in support for homegrown fashion labels like Orange Culture and Ashluxe – brands that blend global aesthetics with distinctly African narratives. A 2023 Euromonitor report found that 64% of Nigerian Gen Z consumers said they prefer to buy local brands that reflect their identity, even when international options are available.

This isn’t limited to apparel. In Indonesia, the halal cosmetics market has seen explosive growth, not merely as a religious preference but as an expression of cultural values. Brands like Wardah and Emina now rival – or outperform – multinational competitors in brand recognition among young women. These brands don’t compete by mimicking Western tropes. They succeed by embedding themselves in the rhythms of local life, from religious observances to beauty standards shaped by regional influencers rather than global celebrities.

The same dynamic is playing out in Vietnam’s tech sector, where local e-wallets like MoMo are outpacing foreign fintech entrants – not because of superior technology but because they better understand the daily behaviours, payment rituals, and security concerns of the Vietnamese consumer. According to a 2023 study by Decision Lab, MoMo enjoys over 60% brand preference among young urbanites, in part due to its partnerships with local merchants and integration into everyday routines like topping up phone credit or paying utility bills.

Meanwhile, global culture is increasingly being shaped by these same markets. Afrobeats, once a niche genre, now tops international charts. Thai skincare routines are influencing global beauty trends. Filipino content creators are gaining global followers on TikTok not because they adapt to global norms, but because they confidently showcase their own. In this way, reverse aspiration is not just a rejection of old hierarchies – it’s an export of influence.

For brands, the lesson is clear: you are not the centre of the story. Consumers no longer measure themselves against your brand identity. Instead, they measure your brand against their values, communities, and cultural fluency. Products must be flexible, not fixed; branding must adapt, not dictate.

The rise of reverse aspiration doesn’t signal hostility toward global brands – it signals maturity. These consumers aren’t trying to join the global mainstream. They are the mainstream – digitally savvy, culturally proud, and shaping the conversation on their own terms. And they expect brands to understand that before making their pitch.

Strategies to Earn Attention and Trust

Capturing the attention of the next billion is not a matter of flashy creative or inflated ad budgets. These consumers are deliberate and discerning, quick to disengage from brands that don’t meet their standards or speak their language – both literally and figuratively. Trust is not a funnel; it’s a framework. And it requires consistent, intentional action across every touchpoint.

1. Hyper-localisation isn’t optional – it’s foundational.
For emerging market consumers, brand credibility is tightly linked to cultural fluency. It goes beyond simple translation to a full embrace of local values, references, and usage contexts. In Vietnam, the delivery app Baemin differentiated itself by infusing its platform with witty Vietnamese slang, inside jokes, and hyper-specific product categories – earning loyalty not through function, but through cultural intimacy. In Kenya, Safaricom’s M-Pesa succeeded not just as a mobile payments tool, but because it was built around the realities of an unbanked population, with offline integration and SMS functionality that anticipated connectivity challenges.

2. Trust is built in the micro-moments.
In high-trust economies, consumers might forgive a misstep. In low-trust markets, every interaction matters. A delayed delivery, a missing refund, or a slow response to a query can permanently damage perception. In Indonesia, beauty brand Sociolla won favour by offering guaranteed authentic products, tracked delivery, and a no-hassle return policy – features that directly addressed consumer anxieties in a market flooded with counterfeits. Transparency, speed, and customer service are not operational choices; they are brand positioning strategies.

3. Community voices trump corporate messaging.
The age of the polished brand ambassador is fading. Peer influence, especially from micro-influencers and everyday content creators, now holds more sway. These are people with modest followings but high engagement, often speaking in native dialects or regional slang. In the Philippines, Shopee’s partnership with grassroots creators in smaller cities – rather than national celebrities – helped drive adoption among new internet users. Brands that co-create with local voices, elevate real customer stories, and share behind-the-scenes content signal a level of openness that consumers find relatable and reassuring.

4. Simplification drives conversion.
The mobile-first mindset means consumers expect streamlined interfaces, fast-loading pages, and frictionless payment processes. The most successful brands eliminate barriers rather than adding features. In India, Meesho – a platform that allows users to resell products through WhatsApp and Facebook – gained explosive traction not by competing on price or product, but by simplifying commerce to match the rhythms of informal entrepreneurship. Especially in markets with lower digital literacy or inconsistent connectivity, simplicity is not just convenient – it’s empowering.

5. Offer real value, not just marketing.
Beyond product benefits, brands that offer utility, knowledge, or community are more likely to earn sustained engagement. During the pandemic, Vietnam’s Vinamilk launched a nutrition education series across Facebook Live, fronted by local pediatricians and nutritionists. The effort was not overtly commercial, but it positioned the brand as a trusted source in a time of uncertainty – building long-term brand equity. Similarly, in Africa, MTN’s “Y’ello Hope” campaign provided remote learning support and free data for health workers, deepening brand connection far beyond mobile service.

6. Show up where it matters – and stay.
Too often, international brands treat emerging markets as seasonal experiments, testing campaigns without long-term investment. But consistency is critical. Consumers notice who’s around during key holidays, national events, and crises – and who disappears when results don’t come quickly. Building trust means being present, listening actively, and responding quickly, even when it’s not convenient. It means moving from transactional to relational.

Attention and trust are hard-won in these markets – but not impossible. Brands that succeed will be those that listen before speaking, localise without diluting, and deliver value at every step. It’s not about cracking a code – it’s about showing up, with respect, relevance, and reliability.

guide-to-gen-z

What the Next Billion Means for Global Strategy

The next billion consumers will not just change where companies grow – they will fundamentally reshape how companies think. For too long, emerging markets have been treated as the final frontier for global brands – places to extend reach and scale after success was achieved elsewhere. That model is not only outdated; it’s strategically short-sighted.

In markets like Vietnam, Kenya, and the Philippines, consumer expectations are being forged under entirely different conditions: mobile-first access, economic volatility, rapid urbanisation, and a deep mistrust of centralised systems. The result is a set of behaviours that are more adaptive, more sceptical, and often more innovative than those seen in mature markets. Consumers here are not merely catching up – they are setting new standards.

Rather than viewing these markets as extensions of Western playbooks, companies should see them as innovation testbeds. Take mobile commerce: features like embedded payments, one-click checkout via messaging apps, or app-free transactions are not novelties – they are necessities driven by constraints around bandwidth, infrastructure, and financial inclusion. Yet these same constraints are producing solutions that may become best practices globally.

Similarly, platform design in these regions often centres on immediacy, low data consumption, and local integration. Global teams should be asking: What can we learn from the success of super apps in Southeast Asia? From the rise of voice notes and vernacular language content in India? From trust mechanics built into informal commerce networks across West Africa? These are not fringe behaviors – they are indicators of where global user expectations are headed.

The ability to operate in these ecosystems requires more than translation. It demands cultural intelligence, operational flexibility, and a long-term mindset. Localisation must move beyond interface tweaks to encompass everything from payment methods and logistics to influencer partnerships and community engagement. A product launch is no longer the finish line; it’s the beginning of a multi-year trust-building process.

This shift calls for investment – not just in marketing – but in on-the-ground research, in building local teams with decision-making power, and in systems that can adapt quickly to feedback loops. The brands that will thrive are those that listen early, prototype fast, and refine continuously. That’s not reactive – it’s resilient.

The next billion are not waiting to be discovered. They are already online, already informed, already choosing. But they are choosing carefully. Their loyalty isn’t earned by reputation – it’s earned by repetition: consistent delivery, relevance, and respect over time.

What we’re seeing isn’t a short-term trend – it’s a structural redefinition of what global success looks like. And in this new equation, the old formulas – centralised control, broad generalisations, and push marketing – no longer hold. The competitive edge will belong to those who approach these markets not as territories to conquer, but as partners in evolution.

Because when consumers are multilingual, mobile-first, and mistrustful by design, brand engagement becomes a privilege – not a right. The challenge is not whether companies can reach them. It’s whether they can rise to meet them.

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Boycotts can upend entire markets overnight. In 2019, a diplomatic dispute between South Korea and Japan turned into a full-scale consumer revolt. Sales of Japanese beer in South Korea plummeted by 92%, and Uniqlo shuttered multiple stores as South Korean consumers rejected Japanese brands en masse. What began as a trade conflict quickly became an economic weapon wielded by consumers.

Boycotts are no longer just reactions to political events—they have become economic power plays. Global brands increasingly find themselves at the centre of cultural, political, and trade conflicts. Starbucks faced backlash from both conservatives and progressives over its unionisation stance, while Disney’s opposition to Florida’s “Don’t Say Gay” bill sparked boycotts from both LGBTQ+ supporters and conservative groups. In today’s market, even neutrality is a decision with consequences.

Brands have become battlegrounds for political, social, and economic conflicts. Silence is no longer a shield. When French President Emmanuel Macron defended the right to publish caricatures of the Prophet Muhammad in 2020, French businesses bore the consequences. Middle Eastern supermarkets pulled French products, and #BoycottFrenchProducts trended across social media. Carrefour scrambled to issue damage control statements. Even companies with no direct political involvement can be caught in ideological crossfire.

Managing consumer activism is no longer optional. Today’s boycotts can move markets and shake billion-dollar companies. In an era where brand loyalty is tied to political and social beliefs, companies caught in the crossfire risk more than just lost sales—trust, once broken, is far harder to rebuild.

Boycotts don’t just make headlines—they leave financial wreckage. In 2012, a territorial dispute between China and Japan ignited a mass boycott, sending Toyota’s sales in China tumbling 44% in a single month. The backlash erased years of market gains, forcing Toyota and Honda into a costly recovery battle.

Gen Z and brand boycotts

Some boycotts reshape markets permanently. In 2019, a South Korea-Japan dispute led consumers to abandon Japanese beer, cosmetics, and cars—habits that didn’t revert even after tensions cooled. Similarly, a 2006 boycott of Danish products in the Middle East, triggered by controversial cartoons, wiped out $70 million in sales for dairy giant Arla Foods. Even years later, some retailers never restocked Danish brands.

Not all boycotts leave scars. Starbucks has repeatedly faced backlash over labour policies and political stances, yet its dominance remains unshaken. The reason? A fiercely loyal customer base and a brand identity strong enough to weather short-term activism. The difference between a fleeting boycott and lasting damage often comes down to one factor: how replaceable the brand is. Companies with distinct identities bounce back. Those that hesitate, or fail to differentiate, may never recover.

Why Some Boycotts Fade While Others Leave Lasting Damage

For over 40 years, Nestlé has faced recurring boycotts over its infant formula marketing in developing countries. Despite its global dominance, consumer advocacy groups have kept the controversy alive, cementing Nestlé’s reputation as a corporate villain for many.

consumers and brand boycott

The real risk isn’t a single high-profile boycott—it’s the slow erosion of trust from repeated controversies. Over time, consumer activism can turn a brand name into shorthand for corporate misconduct, making reputation recovery an uphill battle. A boycott is more than a PR crisis; it’s a moment of truth. Brands can either reinforce loyalty or lose trust from all sides.

Some brands emerge stronger by standing their ground. Patagonia, for example, has made environmental activism central to its identity—even suing the Trump administration over national park protections. Rather than triggering backlash, the move galvanised its core customers.

Avoiding controversy doesn’t mean avoiding backlash. In 2022, Disney’s attempt to stay neutral on Florida’s “Don’t Say Gay” bill backfired spectacularly. Employees and LGBTQ+ activists pressured the company to take a stance, while conservatives retaliated once it did. Florida lawmakers stripped Disney of key tax privileges, leaving it alienated from both sides. A 2023 Harris Poll found that 82% of consumers expect brands to take a stand on social issues—yet 60% say they will stop buying if they disagree with the stance. The lesson? Taking a position can build loyalty with one group while permanently alienating another.

The risk isn’t just political—it’s about perception. Brands that fail to define their values risk having their identity shaped by the loudest voices. In today’s landscape, silence isn’t neutral—it’s a statement.

Navigating a boycott isn’t just about damage control—it’s about leadership. The brands that survive aren’t the ones scrambling to react, but those that take control of the narrative. When a boycott gains traction, the worst mistake a company can make is letting others define its response. A clear, well-structured message—consistent across all platforms—determines whether a brand weathers the storm or gets swallowed by it.

The financial hit of a boycott is often inevitable, but well-prepared brands see beyond the short term. Companies that anticipate consumer activism have contingency plans—shifting market focus, reinforcing ties with loyal customers, and ensuring financial resilience in the face of backlash.

A boycott can erupt in minutes, leaving companies no time to craft a careful response. In today’s hyper-connected world, silence is often seen as complicity, while a poorly handled statement can make things worse. The brands that survive aren’t those that avoid controversy—they’re the ones prepared for it.

The difference between a temporary backlash and a full-blown reputational crisis often comes down to preparation. The brands that weather boycotts aren’t scrambling in the heat of the moment—they have a crisis playbook ready long before trouble starts.

At the heart of any crisis playbook is a clear decision-making framework: Who makes the call on how to respond—the CEO, the communications team, or a crisis committee? Without a defined chain of command, brands risk internal chaos, mixed messaging, and costly missteps.

Just as critical is message control. In the social media age, companies no longer have the luxury of waiting days—or even hours—to respond. A delay means losing control of the narrative. The most prepared brands have adaptable, pre-drafted messaging ready to deploy, ensuring their first response is measured rather than reactionary.

trending hashtags

Not all boycotts require engagement. The strongest brands assess the market impact first—does the backlash threaten core revenue streams, or is it mostly symbolic? Overcorrecting in response to a boycott from non-customers can backfire, alienating loyal buyers—a mistake that has cost brands billions.

Boycotts don’t just test a brand’s values—they reveal whether a company was ever prepared to defend them. The biggest failures aren’t necessarily from taking the wrong stance, but from appearing unprepared, inconsistent, or defensive.  A boycott forces brands to make a critical decision: should they engage directly or let the controversy fade? The wrong choice can amplify the backlash, while the right move can reshape public perception.

Some boycotts are short-lived outrage cycles, driven by social media but lacking real economic impact. Rushing to respond can sometimes prolong the controversy rather than defuse it. Smart brands know when to let public sentiment run its course. But silence isn’t always an option. When a controversy gains enough traction, failing to engage can cause lasting damage. In those cases, brands must take control of the narrative before it’s shaped for them.

When two Black men were arrested at a Philadelphia Starbucks in 2018, the backlash was immediate. Instead of retreating, Starbucks’ CEO issued a direct apology, shut down 8,000 stores for racial bias training, and met with community leaders. By acting quickly, the company prevented long-term brand damage and reinforced its identity as a socially conscious brand.

The High Cost of Getting It Wrong

Contrast this with United Airlines’ 2017 fiasco, when a passenger was violently dragged off a plane. The airline’s initial response—a cold, legalistic defense of policy—only inflamed public outrage. Only after intense backlash did the CEO shift to an apologetic stance, but by then, the damage was done. The lesson? A delayed or tone-deaf response can make a crisis exponentially worse.

Knowing when to engage and when to stay silent isn’t about avoiding controversy—it’s about controlling the story. The strongest brands don’t just react to boycotts; they strategically decide whether to own the moment or let it pass. Brands overly dependent on a single geographic or ideological customer base are more fragile. Companies that diversify—whether through global expansion or appealing to multiple demographics—are far more resilient.

During the 2020 Middle Eastern boycott of French brands, Carrefour and Danone lost significant business over President Macron’s remarks. But both companies quickly refocused on growing consumer bases in Africa and Asia, stabilising their bottom line. Similarly, global tech brands facing boycotts in China have expanded into India and Southeast Asia to offset losses. Instead of engaging directly in controversy, they pivot their business strategy toward emerging markets, reducing long-term financial exposure.

Consumers today can spot corporate insincerity from a mile away. When brands respond to controversy with empty gestures rather than meaningful action, they risk deepening public distrust rather than repairing it.

Pepsi learned this the hard way in 2017 with its now-infamous ad featuring Kendall Jenner handing a can of Pepsi to a police officer during a protest. Instead of making a genuine statement, the ad came off as exploitative—a hollow attempt to co-opt social justice for marketing. The backlash was immediate. Pepsi pulled the ad within 24 hours, but the damage was already done.

H&M faced a different kind of fallout in 2021 when it tried to navigate allegations of forced labour in Xinjiang, China. The company issued a carefully worded—but vague—statement distancing itself from the controversy. Instead of appeasing consumers, the move backfired: Chinese authorities removed H&M from online platforms entirely. The half-measure pleased no one and led to real financial losses.

Consumers today can spot empty gestures. If a brand takes a stand, it needs to mean it—half-measures and corporate platitudes only make things worse. Brands that emerge from boycotts with their reputations intact are those that meet controversy head-on—with clarity, honesty, and decisive action. Attempts to placate all sides or hide behind corporate jargon only fuel further backlash.

When McDonald’s exited Russia in 2022 following the Ukraine invasion, it didn’t just issue a press release—it explained, in plain terms, the ethical and economic rationale behind its decision. By offering transparency instead of vague corporate messaging, it reinforced its credibility as a company willing to take a stand rather than simply responding to pressure.

Patagonia’s 2022 decision to transfer ownership to an environmental nonprofit wasn’t a publicity stunt—it was a long-planned move. By embedding activism into its business model, Patagonia proved that brand values can be more than just marketing.

Brands that rely on damage control instead of transparency often make things worse. Half-hearted statements, vague acknowledgments, or empty pledges do little to rebuild trust. Consumers today don’t just expect brands to take a stand—they expect them to back it up with real action.

Boycotts aren’t rare disruptions anymore—they’re part of doing business in a politicised world. The brands that navigate them best don’t avoid controversy; they prepare for it, understand their audience, and act with conviction when it matters. Some brands survive by doubling down on their values and reinforcing ties with their core customers. Others try to appease everyone and end up alienating all sides. The difference isn’t the controversy itself—it’s how well a brand understands its identity and whether it has the courage to stand by it.

Why Boycotts Are Becoming More Frequent

Several forces have converged to make consumer boycotts more widespread—and more impactful—than ever before.

  • The Acceleration of Social Media
    What once took months of grassroots organising now happens in minutes. A single viral post can mobilise millions, turning hashtags like #BoycottApple and #DeleteUber into economic flashpoints overnight. The sheer speed of digital outrage leaves companies scrambling to control the narrative before it spirals.
  • The Rise of Economic Nationalism
    Boycotts are no longer just ideological protests—they’ve become geopolitical weapons. Trade disputes between the U.S., China, Japan, and South Korea have fueled consumer-driven economic retaliation, proving that governments are no longer the sole enforcers of economic policy.
  • Shifting Consumer Expectations
    Millennials and Gen Z expect companies to align with their values—not just sell products. According to a 2023 Harris Poll, 71% of Gen Z consumers say they would stop buying from a company that does not reflect their beliefs. Corporate reputation is no longer just about products—it’s about leadership, ethics, and action.
When consumers boycott brands

A New Risk: Backlash from Both Sides

Boycotts today aren’t just about what a company does—they’re about how different ideological groups interpret its actions. The result? Backlash from both sides.

  • Disney (2022-Present) – After opposing Florida’s Parental Rights in Education bill, Disney became a target for both progressive activists (demanding stronger action) and conservatives (accusing it of corporate activism). The result? Sustained boycotts from competing sides.
  • Bud Light (2023) – The brand’s handling of its partnership with Dylan Mulvaney alienated both conservatives (who boycotted over the campaign itself) and progressives (who boycotted after Bud Light failed to stand by its decision). The result? A record sales decline and a leadership shake-up.
  • Target (2023-Present) – After backlash over its Pride Month merchandise, Target scaled back displays in conservative regions—only to face boycotts from both the right (for supporting LGBTQ+ issues) and the left (for failing to stand firm).

The Increasing Polarisation of Boycotts

Consumer boycotts have long been a form of economic resistance, but today they are something more—a permanent force reshaping how brands interact with the public. They are faster, more politically charged, and more frequent than ever. Companies aren’t just selling products anymore; they are expected to serve as political, cultural, and ethical entities. This shift demands a new kind of leadership—one that treats consumer activism as a reality to be managed, not just a crisis to be feared.

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Wearables aren’t fringe anymore. Once seen as fitness accessories for gym-goers and early adopters, smartwatches and health trackers are becoming everyday essentials. In the first quarter of 2024 alone, global shipments of wearable devices hit 113 million units – an almost 9% jump compared to the year before. And that’s despite persistent inflation and consumer pullback across key markets.

What’s shifting? People are treating these devices less like gadgets and more like tools for managing stress, sleep, and overall health. Consumers are using them to take control – sometimes even before they know something’s wrong. And tech companies are keeping pace, building in more sophisticated health features, wrapping them in sleek design, and expanding their reach far beyond Silicon Valley.

China, for example, led the world in wrist-worn device shipments through most of 2024, with almost 46 million units sold in just the first three quarters. Japan’s older population is increasingly using wearables to monitor vitals and stay independent longer. In the US and UK, mainstream use is now less about steps and more about holistic wellness. Meanwhile, in Southeast Asia and India, lower-cost models are making wearables accessible to first-time buyers – especially younger users who want health data but don’t need an Apple logo to get it.

This rise isn’t just about health – it’s about habits. The adoption curve shows that consumers are steadily folding digital health tracking into their everyday routines, reshaping not only how we think about wellness but also how we’ll live and age in the years ahead.

From step counters to personal health assistants

The evolution of wearables mirrors a larger shift in how we define health. A decade ago, a fitness tracker was mostly just that – a tool for counting steps or logging runs. Now, it’s a wrist-worn health hub, checking heart rhythms, analyzing sleep, detecting stress, and even alerting users to abnormal vitals before symptoms appear.

This transformation hasn’t just changed the product – it’s reshaped the market. What started with athletes and early tech adopters has now spread across age groups and income levels. Smartwatches are on the wrists of office workers in Singapore, older adults in Tokyo, commuters in London, and Gen Z students in Delhi. And the demand isn’t slowing.

Global sales of wearables reached over $84 billion in 2024, with projections putting the market on track to more than double by 2030. That growth is being powered by consumers in Asia, where China continues to dominate volume thanks to homegrown brands, and where India and Southeast Asia are seeing rising uptake of budget-friendly devices. In Japan, demand is strongest among an ageing population who are using wearables for peace of mind – keeping tabs on heart rate, sleep, and medication reminders.

The US and UK still lead when it comes to higher-end models and paid health tracking subscriptions. But what’s consistent across regions is the shift from passive to active wellness. As one analyst at Canalys put it recently, “We’re watching wearables move from fitness to full-spectrum lifestyle tech.”

And while device makers keep layering in new features – temperature sensing, stress tracking, blood oxygen levels – it’s the behavior behind the screen that matters most. Consumers aren’t just buying wearables; they’re changing how they relate to their own health. What’s changing fastest isn’t the tech – it’s how people are folding it into their everyday decisions.

Consumer Adoption Across Generations and Borders

Younger consumers may be driving volume, but wearables are winning over every generation – for very different reasons.

Among Gen Z and millennials, wearables are lifestyle enhancers. Sleep tracking, stress insights, and gamified fitness goals are baked into daily routines, often synced to social media. According to a 2024 YouGov poll in the US and UK, nearly 60% of millennials who own a wearable use it at least five days a week, while Gen Z’s interest is climbing fastest, especially in India, Indonesia, and the Philippines where affordable models are surging.

For younger users, it’s not just fitness. Wearables help manage anxiety, track menstrual cycles, and even gauge productivity. In Southeast Asia, TikTok influencers regularly promote smartwatch brands with built-in wellness challenges, and the appeal is sticking.

By contrast, Gen X and boomers tend to use wearables with a more clinical lens. In Japan, uptake among older adults rose sharply in the past two years, driven by growing interest in managing hypertension, irregular heart rhythms, and fall risk. Apple’s expanded medical alerts and ECG functions are frequently cited by Japanese media as valuable features for ageing consumers. In the UK, NHS-backed pilot programs are offering wearables to older patients recovering from surgery or managing long-term conditions.

In the US, over 40% of Gen Xers who own a wearable say they’ve shared data with a healthcare provider, up from just 27% in 2021. But privacy concerns linger, especially among Gen Z. Despite their high usage, only 26% of Gen Z respondents to a 2024 eMarketer study said they would be comfortable sharing health data with doctors or insurers – suggesting a growing tension between usage and trust.

Here’s how adoption looks across some of the key markets:

Country/RegionTop Adopting CohortsPrimary Use CasesNotable Trends
USMillennials, Gen XSleep, stress, fitness, medical alertsHigh usage of subscription models like Fitbit Premium
UKMillennials, BoomersHeart monitoring, post-surgery recoveryNHS pilot programs integrating wearable tech
JapanBoomersHeart rate, fall detection, medicationGrowing adoption in eldercare and wellness insurance schemes
IndiaGen Z, MillennialsStep counting, calorie burn, wellness appsHigh growth in low-cost smartwatch brands
IndonesiaGen ZFitness tracking, daily health challengesInfluencer marketing fueling adoption
ChinaAll age groupsEverything from fitness to medical alertsDomestic brands dominate; strong public sector partnerships
SingaporeMillennials, Gen XHealth monitoring, workplace wellnessWearables integrated into corporate wellness programs
GermanyBoomers, Gen XBlood pressure, diabetes managementInsurance discounts tied to wearable usage

The generations aren’t divided – they’re stacked. What started with Gen Z is now reshaping how everyone manages health. And the industry knows it.

The Technology Arms Race

The more wearables become part of daily life, the harder tech companies are pushing to stay ahead. And they’re not just making devices faster or sleeker – they’re turning them into medical-grade tools, payment platforms, and personal wellbeing dashboards, all in one.

What started as a step-counting competition is now a full-blown innovation sprint. Apple’s latest Watch models detect arrhythmias and track ovulation patterns through temperature fluctuations. Samsung has layered in blood pressure monitoring and sleep scoring tied to cardiovascular insights. Google-backed Fitbit has pivoted from steps to stress, with its newer models using electrodermal activity sensors to gauge emotional strain in real time.

And it’s not just the big brands. In Japan, wearable developers are exploring integration with long-term care plans, while Singapore’s public health teams have trialled government-backed trackers to incentivise exercise and preventive check-ups. In India and Indonesia, homegrown brands like Noise and Realme are keeping up by offering entry-level smartwatches with features that mirror high-end models – heart rate variability, SpO₂ monitoring, and meditation modes – at a fraction of the cost.

The market is clearly rewarding innovation. Smart rings, once a fringe category, are now booming. Oura has become shorthand for wellness among executives and athletes, while Samsung’s anticipated launch of its Galaxy Ring is already stirring up the category. Analysts at Canalys expect the global smart ring segment to triple by 2026, with Asia leading the growth.

Sensors are getting better, but software is where the race is heating up. The shift toward AI-enabled personalisation means devices are starting to behave less like monitors and more like coaches – detecting patterns, learning user behaviour, and nudging people to take breaks, breathe deeply, or move more. Apple’s upcoming software update includes passive tracking of mental well-being, aiming to surface early indicators of depression and anxiety based on behavioural signals.

This arms race is no longer about having the best display or longest battery. It’s about owning the feedback loop: gathering data, interpreting it meaningfully, and turning that insight into habit-changing nudges. And with more users willing to share health data – whether for clinical support or lifestyle optimisation – tech brands are rapidly becoming key players in the future of healthcare.

The Economics of Adoption in a Soft Economy

The flood of innovation might be grabbing headlines, but it’s the economics of wearables that’s driving their expansion into the mainstream – especially as consumers grow more cost-conscious.

Subscription models are a major pivot point. Fitbit Premium, Whoop, and Apple’s Fitness+ aren’t just upsells – they’re positioning wearables as part of a recurring wellness lifestyle. Fitbit Premium alone now has over 10 million paid users globally, according to Alphabet’s 2024 earnings report. Whoop, which has no upfront device cost and instead charges a monthly fee, has doubled its subscriber base since 2022, banking on athletes and executives willing to pay for deeper recovery and strain insights.

Yet in many markets, recurring costs are a harder sell. That’s where public and private incentives are stepping in. Singapore’s government-led LumiHealth program – developed with Apple – offers financial rewards for completing activity challenges and tracking sleep. In Germany, health insurers like TK and Barmer provide partial reimbursements for certified fitness wearables when used as part of preventive care. These programs aren’t about gadgets – they’re about reducing long-term healthcare costs.

Affordability is also being tackled at the hardware level. In India, for example, wearable brands like Noise and boAt have carved out a dominant position by offering smartwatches with fitness and health tracking features for under ₹2,500 ($30). These devices may lack the polish of premium models, but they’ve dramatically widened access, especially among younger consumers in urban areas. The result? India is now one of the fastest-growing wearables markets in the world, with domestic brands accounting for nearly 75% of total shipments in 2024.

In the US and UK, cost still matters. Refurbished models, bundle deals, and corporate wellness perks are helping buyers justify their spending. Entry prices are falling, but expectations are climbing. People want value – not just on the sticker but in the insights, the ecosystem, and the staying power of the device.

Wearables as Part of the Health Ecosystem

As wearable technology becomes more sophisticated, its integration into the broader health ecosystem is deepening, transforming patient care and preventive health strategies. Today’s devices don’t just count steps – they stream health data to doctors, flag risks in real time, and plug directly into telehealth platforms.

Seamless Integration with Healthcare Systems

In the United Kingdom, the National Health Service (NHS) has initiated pilot programs to incorporate wearable devices into patient care. These programs focus on remote monitoring of patients with chronic conditions, allowing healthcare professionals to track vital signs and detect early signs of deterioration without requiring patients to visit healthcare facilities. This approach not only improves patient outcomes but also alleviates the burden on healthcare resources. ​

Similarly, in Japan, addressing the needs of an ageing population has led to innovative uses of wearable technology. Companies like Tellus You Care have developed non-contact remote monitoring systems that track the health and safety of elderly individuals. These wearables can detect falls and monitor daily activities, enabling caregivers and medical professionals to respond promptly to emergencies. ​

Enhancing Telehealth Services

In the United States, the synergy between wearable devices and telehealth applications is revolutionising patient care. Wearables can sync with telehealth platforms, providing clinicians with continuous health data streams. This integration allows for more accurate assessments during virtual consultations and facilitates proactive management of conditions such as hypertension and diabetes. For instance, patients using wearable blood pressure monitors can transmit their readings directly to their electronic health records, enabling healthcare providers to adjust treatments in real-time. ​

Addressing Data Privacy and Reliability Concerns

Still, the deeper wearables penetrate healthcare, the more they raise questions – especially around privacy. These devices collect a steady stream of highly personal health data, and not everyone knows where that information ends up. Breaches are rare, but when they happen, the fallout is big. Surveys show many users remain unclear about how their data is handled, which puts pressure on tech companies and healthcare providers to be far more transparent.

There’s also the question of how reliable the data really is. Wearables offer useful health snapshots, but they’re not always accurate enough to replace clinical tools. If users or doctors lean too heavily on that information, it can lead to wrong calls – or unnecessary stress. That’s why most healthcare providers treat wearable data as one piece of the puzzle, not the whole picture.

How Singapore Turned Wearables into a Public Health Tool

Image credit: LumiHealth

Singapore may be small in size, but it’s been outsized in ambition when it comes to health tech. In 2020, the government launched LumiHealth, a joint initiative with Apple that turns the Apple Watch into a national wellness tool. The idea was simple: incentivise citizens to stay healthy by gamifying fitness and preventive behaviours.

Participants download an app, pair it with an Apple Watch, and earn vouchers by completing health goals like walking, meditating, or getting flu shots. The rewards are modest – up to S$380 over two years – but the behavioral nudge is powerful. More than 200,000 residents signed up in the program’s first year, with high retention and engagement among older adults and those managing chronic conditions.

What makes LumiHealth notable isn’t just its use of wearable tech, but how it reframes wellness as a shared responsibility between citizen, government, and platform. It’s one of the first large-scale examples of a nation leveraging consumer-grade devices for population health – and a blueprint for how data, design, and nudges can shift real-world behaviour.

The program has also informed broader policy. Health officials now see wearables as part of Singapore’s preventive care strategy. In 2024, pilot extensions were announced to include nutrition tracking and mental wellbeing prompts – making the Watch not just a step counter, but a guide for daily living.

fitness-medtech-industry-trends-report

From Devices to Digital Selfhood

As wearables sync more deeply with our health, they’re also syncing with something else: identity.

Fitness trackers and smartwatches are no longer just tools – they’ve become quiet status symbols, wellness affirmations, and, in some cases, lifestyle declarations. Wearing a Whoop band or an Oura ring signals a commitment to optimisation. A Garmin on the wrist might suggest serious training. Even design choices – stainless steel finishes, leather straps, minimalist rings – convey intention. The wearable, in short, has become part of the personal brand.

This isn’t accidental. Tech companies are leaning into the rise of the quantified self: a movement that treats data as a mirror for self-improvement. Sleep scores are shared in group chats. Heart rate variability is discussed on Reddit threads. There’s even a social layer – Apple’s fitness rings can be closed collaboratively, while Fitbit allows real-time challenges with friends. What began as private tracking is now an interactive, sometimes performative, pursuit.

That said, cultural context shapes how wearables are used – and what they mean.

RegionAttitude Toward WearablesUnderlying Values
US & UKIndividualised health and performance toolsSelf-optimisation, control, productivity
JapanMonitors for long-term care and group wellbeingSafety, longevity, family responsibility
IndiaLifestyle enhancers for youth and urbanitesAspirational health, affordability, digital status
SingaporeIncentivised national wellness participationCommunity health, public-private collaboration
ChinaEveryday convenience tools across all agesFunctional utility, tech-forward lifestyle

In the West, wearable data is often framed in terms of productivity – how to sleep better, train harder, or manage stress. In much of Asia, especially in countries like Japan and Singapore, adoption has leaned more toward collective well-being: tracking to stay safe, support ageing populations, or meet national health goals. While the hardware might be the same, the intention behind it can be radically different.

That’s the shift: wearables aren’t just keeping score anymore. They’re helping shape identity – quiet signals of the kind of life we’re trying to live.

The Future Forecast: Smart Living 2030

If the last decade was about wearables gaining acceptance, the next will be about wearables becoming invisible – fully embedded in our surroundings, our health systems, and our daily decision-making. By 2030, the line between body and technology will blur further, not through flashy upgrades, but through quiet, continuous presence.

One of the most anticipated frontiers is continuous, noninvasive blood glucose monitoring, widely viewed as the “holy grail” of wearables. Major tech players, including Apple and Samsung, have been investing heavily in research to bring this functionality to market. Success here wouldn’t just serve diabetics – it would recalibrate how millions think about food, energy, and performance in real time.

Another inflection point will be emotional health. Devices are beginning to detect mood states based on physical cues – micro-fluctuations in skin temperature, heart rate variability, or voice tone. In the next few years, we may see wearables that can flag the early signs of anxiety, burnout, or depressive episodes before the user is even aware. The implications for preventative mental health are enormous – but so are the ethical questions.

Artificial intelligence will be the connective tissue that binds these advances together. Already, AI is being used to turn raw data into feedback loops, coaching users to adjust behaviours. But by 2030, it’s likely that wearables will be part of more coordinated, multi-device ecosystems – syncing not just with phones and watches but also with smart homes, personal health dashboards, and even city infrastructure.

It’s a shift adjacent industries are already watching closely. Insurers are piloting risk models based on real-time biometric data. Pharma firms are testing wearable-driven trial designs and adherence tools. And in some cities, planners are exploring responsive environments – public spaces that adjust to physiological signals, from light and sound to air quality.

What’s next for wearables won’t be defined by tech specs – but by what people do with the data, and who they’re willing to share it with. Smart living by 2030 may not look like sci-fi. It may just look… seamless.

A Tipping Point for Personal Health

We’ve passed the point where wearables are optional tech accessories. They’ve moved into the domain of lifestyle infrastructure – tools people rely on not just for information, but for insight, motivation, and increasingly, autonomy.

When Apple’s COO Jeff Williams stood on stage at CES and said, “We’re not just building a watch – we’re building a guardian for your wellbeing,” it wasn’t marketing hype. It was a quiet signal of where the industry sees its role going: less device, more guide.

And yet, as wearables grow smarter, more embedded, and more predictive, we’re entering a new kind of contract with our devices – one where personal health is constantly measured, interpreted, and nudged. The convenience is undeniable. The value is rising. But so is the question: who controls the loop?

Will the decade ahead empower us to become more informed, more proactive, and more in tune with our health? Or will we find ourselves outsourcing our instincts to a wristband?

It’s a future being shaped now, one wrist at a time.

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Even as consumers trim expenses in travel, fashion, and dining out, there’s one area where spending continues to climb: their pets.

The global pet care market is now worth over $324 billion, with projections putting it close to $600 billion by 2033. In the United States alone, Americans are expected to spend more than $150 billion on their pets this year – up from $136 billion just two years ago. That’s roughly $1,700 per pet-owning household.

What’s driving the boom isn’t just more pets – it’s more premium care. Owners are trading up to organic diets, breed-specific supplements, and wearable health trackers. Subscriptions for virtual vet services and home delivery of fresh pet meals are becoming routine. Industry analysts say the trend reflects the growing “humanisation” of pets, where wellness standards once reserved for people are now expected for animals, too.

Here at Kadence International, we’re seeing this shift play out across markets. Consumers might delay upgrading a phone or cut back on takeout, but they continue to invest in pet wellness – whether it’s probiotic chews, allergy relief supplements, or DNA testing kits. The behaviour is less about indulgence and more about prioritising the quality of life for their animals.

The premiumisation of pet care is quickly moving from niche to norm – redefining how pet owners allocate household budgets and how companies compete in one of the most resilient sectors of consumer spending.

Rising Demand in Emerging Markets Reshapes the Global Pet Economy

The pet care boom is no longer centred solely in the West. Markets once considered secondary – particularly across Asia and Latin America – are rapidly becoming the industry’s main growth engines, reshaping supply chains, product innovation, and competitive strategy.

China, long known for its production of pet goods, is now a consumption powerhouse. Urbanisation, rising incomes, and a generational shift in attitudes toward pet ownership have driven the country’s pet economy past 270 billion yuan ($37 billion USD) in 2024, according to data from iiMedia Research. Functional pet foods, insurance services, and AI-enabled pet tech are flourishing in cities like Shanghai and Beijing, where single-person households and delayed family planning are accelerating the “pet as child” dynamic.

In Southeast Asia, pet ownership is rising fastest among millennials and Gen Z, particularly in Vietnam, Indonesia, and Thailand. Here at Kadence International, our fieldwork suggests that first-time pet owners in these markets are skipping entry-level products entirely – jumping straight into grain-free diets, subscription-based care boxes, and app-based training services. This leapfrogging effect mirrors what happened in fintech across emerging markets: consumers are building their relationship with brands in the premium tier from day one.

Meanwhile, in Brazil – the second-largest pet care market globally after the U.S. – veterinary services and pet health plans are expanding beyond affluent neighbourhoods. Brazilian households spent an estimated $9 billion USD on pets in 2023, with wellness products now part of everyday grocery retail.

Even mature markets are shifting internally. In Japan and South Korea, birth rates are at historic lows, and a growing number of households treat pets not just as companions, but as emotional and psychological anchors. As a result, the types of products being purchased – from calming diffusers to mental stimulation toys – are changing the definition of core pet care categories.

This reshaping of the global pet economy isn’t just a redistribution of revenue; it’s altering the cultural context of pet ownership. The premium boom may have started in North America, but the future of pet wellness is being co-authored in Jakarta, São Paulo, Seoul, and beyond.

Premiumisation in Pet Food and Supplements Redefines the Bowl

A decade ago, premium pet food meant a slightly higher protein count or a label with fewer artificial additives. Today, it means bioavailable nutrients, functional botanicals, customised formulations, and health claims that would feel at home in a human wellness catalogue.

The line between nutrition and therapy is blurring – and the market is responding. In 2023, sales of premium pet food grew at nearly double the rate of standard pet food globally, according to Euromonitor International. Functional claims – supporting gut health, mobility, immune strength, or anxiety reduction – have moved from the margins to the centre of packaging in the U.S., UK, Japan, and South Korea. Shoppers are no longer choosing between brands; they’re choosing between outcomes.

Consumer behaviour is shifting accordingly. Mintel reports that more than half of U.S. dog owners now actively seek out food with added health benefits, while one in three expect brands to personalise recommendations based on age, breed, or health status. In the UK, pet owners are increasingly mirroring their own dietary ethics, gravitating toward organic and even plant-based options. In Japan, ageing pets are driving demand for easier-to-digest meals and portion-controlled packaging that reflects pharmaceutical precision.

Supplements have quietly become one of the fastest-growing segments in the category. Once the preserve of niche online retailers, they are now a fixture in big-box pet stores and veterinary clinics. Calming chews, joint support powders, and probiotic drops are increasingly purchased not in response to a diagnosis but as part of a preventive care routine. Subscription models are flourishing in this space – not for convenience alone, but because owners want continuity in their pets’ health regimen.

What’s emerging is a recalibration of value: not measured by bulk or brand familiarity, but by purpose. The pet food aisle is no longer just a product display – it’s a wellness portfolio, curated by consumers who increasingly expect the same standard of care for their pets that they do for themselves.

The App Will See You Now

Veterinary care is no longer confined to the clinic. A growing share of pet owners are now managing health check-ins, nutrition planning, and behavioural advice through digital platforms – often without ever leaving home. In many markets, this is less a futuristic leap and more a pragmatic pivot driven by convenience, cost concerns, and a shortage of veterinarians.

The surge in telehealth for pets began during the pandemic, but it has since evolved into a new tier of service. Platforms like Pawp, Fuzzy, and Joii offer 24/7 vet consultations, monthly wellness plans, and AI-supported symptom triage. These aren’t replacing traditional care entirely, but they are reshaping the front line – handling minor concerns, triaging emergencies, and maintaining continuity between physical visits.

In the United States, pet telemedicine visits increased more than 300% between 2020 and 2023, according to data from the American Veterinary Medical Association. In the UK, the British Veterinary Association reported that one in five pet owners had used digital vet services in the past year. And in Southeast Asia, where access to veterinary professionals remains limited in many regions, digital care is emerging not just as an option but as infrastructure.

Tied closely to this trend is the rise of subscription-based wellness. What began with monthly deliveries of flea and tick medication has grown into a service model that includes customised food plans, behavioural coaching, supplements, and diagnostics – often bundled through a single platform or mobile app. Some services even offer annual blood testing with doorstep collection, designed to catch early signs of illness before symptoms surface.

The value proposition is as much about predictability as it is about health. For time-poor, urban pet owners – especially millennials and Gen Z – these services streamline routines and reduce the anxiety of not knowing when or how to act. They also lock in brand loyalty in a category where switching costs are otherwise low.

What makes this shift notable isn’t just the tech adoption – it’s the reframing of pet care as a continuous service, rather than an episodic, event-based expense. As competition grows and platforms race to add value, the veterinary space may be next in line for the kind of disruption already seen in human primary care.

Brand Spotlight: Butternut Box

Image credit Butternut Box

Launched in the UK, Butternut Box has become one of Europe’s fastest-growing premium pet food brands by reimagining how pet meals are made, marketed, and delivered. What began as a small direct-to-consumer startup offering fresh, human-grade dog food has evolved into a major player in the pet wellness space, known for its personalised subscription model and health-first messaging.

Every meal is pre-portioned, vet-approved, and tailored to the pet’s dietary needs – whether age, breed, or health condition. As demand for functional nutrition surged, Butternut Box expanded its offering to include treats, supplements, and, most recently, fresh food for cats.

The company has seen rapid growth. Revenues jumped significantly in 2023, and subscriber numbers continue to climb as the brand expands into new markets across Europe. Recent acquisitions and infrastructure investments are helping it scale beyond the UK, with operations now live in Ireland, the Netherlands, Belgium, and Poland.

Much of the brand’s appeal lies in its ability to align with pet owner expectations – offering transparency, convenience, and clear health outcomes. Its packaging, product formulation, and tone of voice are all geared toward the modern, wellness-minded consumer who wants more than just “better kibble.” And with fresh food sales rising across the industry, Butternut Box is well-positioned to lead the charge.

As the definition of pet health evolves, Butternut Box exemplifies how brands can thrive by staying close to consumer values. Its growth underscores a larger shift: pet owners aren’t just buying food – they’re investing in long-term wellness. And they’re choosing brands that make that easy, measurable, and personalised.

The Psychology Behind the Spend

Rational budgeting has never fully explained pet ownership. But in a year where inflation has squeezed discretionary spending across sectors, the continued rise in pet wellness expenditure points to something deeper: emotional economics.

In the United States, 62% of pet owners say they are spending “the same or more” on their animals despite cutting back in other parts of their lives, according to a 2024 survey by Morgan Stanley. And it’s not just petting parents in affluent neighbourhoods. In Brazil, where real incomes have fluctuated over the past two years, pet care remains one of the most resilient retail categories, particularly among single-person households and retirees.

What’s driving this behavior isn’t just brand marketing or a surge in new product availability – it’s a cultural shift in the perceived role of pets. In many homes, animals are no longer companions; they’re emotional extensions of the self. Pet care spending is often framed not as an expense, but as an expression of identity, responsibility, and affection. That makes it far less vulnerable to economic headwinds.

There’s also the matter of control. In periods of uncertainty, consumers tend to focus on the things they can manage. For pet owners, that increasingly means doubling down on wellness – purchasing products and services that promise safety, health, and longevity. In this way, premium pet care has become part of a broader coping strategy: a way to nurture stability in an unstable world.

Consumer researchers are watching this closely. “What we’re seeing is a shift from reactive to anticipatory spending,” said one behavioural analyst in a recent study published by Mintel. “It’s no longer just about solving a problem – it’s about preemptively protecting what matters most.”

The implication for brands is significant. Emotional drivers are shaping not just what consumers buy, but how they engage – with higher expectations around transparency, ethics, and personalisation. It’s no longer sufficient to claim that a product is “good for pets.” Increasingly, it has to feel like the right decision for the person making it.

What Comes Next for Pet Wellness Brands

The shift in consumer behaviour is now being mirrored in boardrooms and investment portfolios. Private equity firms, legacy conglomerates, and health tech startups are all converging on a singular conclusion: pet care is no longer a recession-proof niche – it’s a lifestyle category with global, cross-demographic appeal.

In the past 24 months, more than a dozen pet wellness platforms have closed Series A or B funding rounds in excess of $20 million. Unilever acquired a majority stake in pet supplement brand Nutrafol Pets. Mars, already dominant in veterinary services through its ownership of Banfield and VCA, is doubling down on diagnostics and AI tools through its Kinship division. Even players outside the category – like Nestlé and L Catterton – have quietly expanded their holdings in high-growth pet food startups.

This capital infusion is reshaping not just how pet products are developed, but how they’re delivered. Subscription platforms are building vertically integrated ecosystems. Diagnostics companies are exploring partnerships with tele-vet apps. Consumer goods firms are rethinking packaging, sustainability, and supply chains to appeal to increasingly values-driven buyers.

To make sense of the momentum, here’s a snapshot of key growth areas attracting attention:

Emerging Investment Hotspots in Pet Wellness

CategoryWhy It’s GrowingNotable Moves (2023–2024)
Functional Pet FoodRising demand for therapeutic and preventative nutritionNestlé invests in JustFoodForDogs
Tele-Veterinary ServicesExpanding access, convenience, and lower cost barriersFuzzy and Pawp secure $25M+ in funding rounds
Pet SupplementsProactive health management among Gen Z and millennialsNutrafol Pets launches in North America
Diagnostics & Health TechEarly detection, personalisation, and longevity trendsMars launches pet DNA and microbiome services
Subscription-Based ModelsStrong retention, DTC control, consumer preferencePetPlate, BarkBox expand internationally

The next wave of competition won’t be driven solely by who has the best product – but by who owns the end-to-end relationship with the pet owner. As wellness becomes the defining lens through which pet care is viewed, brands will need to operate more like healthcare providers than traditional retailers.

The opportunity is enormous, but so is the expectation. The bar has been raised – by consumers, by capital markets, and increasingly, by the animals themselves, whose needs are now tracked, monitored, and optimised in real time.

A Wellness Revolution Still in Its Infancy

If the past five years marked the emergence of premium pet care as a trend, the next five will define it as an expectation. The convergence of health, data, and digital delivery has already reshaped human wellness; now it’s doing the same for animals – at speed and scale.

What we’re seeing is a new phase of maturity in pet ownership globally. In emerging markets, where pet care was once utilitarian, consumers are leapfrogging into advanced wellness behaviours – driven by rising incomes, smaller households, and increased digital access. In mature markets, the shift is more psychological: pets are not just part of the family, they are central to it, prompting a level of intentionality in purchase decisions that echoes human healthcare.

This signals not just a market opportunity, but a transformation in mindset. We expect to see a rise in predictive care models powered by biometric monitoring, AI-driven nutrition plans, and services that adapt in real time to the pet’s lifecycle or environment. The role of the vet will likely evolve, too – becoming more consultative and tech-enabled, supported by home diagnostics and subscription wellness ecosystems.

And while consumer demand is shaping the future, it’s also setting new standards. Transparency, traceability, and ethical sourcing will become baseline requirements. Products that once stood out for being “premium” will be judged instead by how well they anticipate needs, reduce friction, and integrate into a seamless care experience.

This is no longer a pet product story – it’s a consumer behaviour story unfolding across borders, cultures, and categories. As the definition of wellness continues to evolve, so too will the expectations around how we care for the animals in our lives.

The brands that succeed won’t just sell to pet owners. They’ll understand them – intimately, culturally, and contextually. That’s where the future of the pet industry will be shaped.

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Exchanging pre-owned goods has been a cornerstone of human commerce, from ancient bartering systems to modern marketplaces. The age-old practice has evolved into a booming global second-hand market, prompting brands to rethink their strategies as sustainability and value drive consumer choices. 

Understanding the Second-Hand Market

The second-hand market, also known as the resale or pre-owned market, involves the buying and selling previously owned goods. This market spans many products, including clothing, electronics, furniture, and vehicles, offering consumers access to items at prices typically lower than new equivalents. The rise of digital platforms has significantly expanded this market, making it more accessible and organised.

Types of Second-Hand Marketplaces

The proliferation of these diverse platforms has not only made second-hand shopping more accessible but has also contributed to its growing acceptance and popularity among a broad spectrum of consumers.

  • Thrift Stores and Charity Shops are physical retail locations where donated goods are sold to support charitable causes. These stores offer a variety of items, from clothing to household goods, at affordable prices.
  • Consignment Shops are retailers that sell items on behalf of owners, providing them with a percentage of the sale price once the item is sold. This model is common for higher-end goods, such as designer clothing and accessories.
  • Online Marketplaces: Digital platforms where individuals and businesses can list and purchase pre-owned items. Examples include eBay, Poshmark, and Depop, which have become increasingly popular due to their convenience and extensive reach.
  • Specialised Second-Hand Platforms: Niche marketplaces focusing on specific product categories, such as electronics or luxury goods. For instance, Back Market specialises in refurbished electronics, providing consumers with vetted, high-quality used devices.

Drivers of the Second-Hand Market Surge

Several key factors propel the rapid expansion of the second-hand market:

  • Economic Considerations: Amidst global economic uncertainties and rising living costs, consumers increasingly seek cost-effective alternatives to new products. In the United States, the second-hand apparel market was valued at $43 billion in 2023, reflecting a 10.3% increase from the previous year.
    This growth indicates a significant shift towards more affordable shopping options.
  • Sustainability and Environmental Impact: A heightened awareness of environmental issues has led consumers to adopt more sustainable consumption habits. Purchasing second-hand clothing reduces carbon emissions by an average of 25% compared to buying new items.
    This eco-conscious mindset is particularly prevalent among younger generations, with 42% of global consumers aged 18 to 37 willing to purchase second-hand apparel as of 2021.
  • Digital Integration and Convenience: The proliferation of online resale platforms has revolutionised the accessibility and convenience of second-hand shopping. In 2023, online resale accounted for 46.5% of the U.S. second-hand market, amounting to $20 billion in sales.

    Platforms such as ThredUp, Poshmark, and The RealReal have streamlined the process of buying and selling pre-owned items, attracting a diverse and tech-savvy consumer base.

These factors collectively contribute to the dynamic growth of the second-hand market, reshaping consumer behaviour and retail strategies globally.

Strategic Implications for Brands

The surge in second-hand shopping presents both challenges and opportunities for brands. To navigate this evolving landscape, companies can consider the following strategies:

  • Integrate Resale into Business Models
    • Branded Resale Platforms: Establishing in-house resale channels allows brands to maintain control over the customer experience and product authenticity. For instance, Patagonia’s “Worn Wear” program encourages customers to trade in used items for credit, promoting product longevity and sustainability.
      Partnerships with Resale Platforms: Collaborating with established resale marketplaces can expand a brand’s reach. Alexander McQueen’s partnership with Vestiaire Collective enables customers to sell pre-owned items back to the brand in exchange for store credit, fostering a circular economy.
  • Redefine the Value Proposition of New Products
    • Emphasise Quality and Longevity: Highlighting the durability and timeless design of products can justify the investment in new items.
    • Sustainable Practices: Adopting eco-friendly materials and ethical production methods can appeal to environmentally conscious consumers.
  • Enhance Customer Engagement
    • Trade-In Incentives: Offering credits or discounts for returning used items can encourage repeat purchases and strengthen brand loyalty.
    • Educational Campaigns: Informing consumers about the environmental benefits of purchasing new, sustainably produced items can influence buying decisions.

Global Perspectives: Eastern vs. Western Second-hand Goods Markets

The second-hand market’s expansion manifests differently across regions, influenced by cultural, economic, and technological factors. Understanding these distinctions is crucial for brands aiming to navigate and capitalise on the global resale economy.

Western Markets

In Western countries, the surge in second-hand shopping is primarily driven by sustainability concerns and economic considerations. Consumers are increasingly eco-conscious, seeking to reduce waste and carbon footprints by purchasing pre-owned goods. The proliferation of digital platforms like ThredUp, Depop, and Vinted has democratised access to second-hand items, making it convenient for consumers to buy and sell used goods. This shift is also influenced by a growing desire for unique, vintage pieces that allow for personal expression.

Asian Markets

In contrast, Asian markets exhibit unique dynamics in the second-hand sector:

  • Japan: The Japanese second-hand market has seen significant growth, with the domestic market for used goods nearly doubling 2010 to 2022.
    This expansion is partly due to the popularity of flea market apps like Mercari, which have made buying and selling used items more accessible. Additionally, younger generations, referred to as “reuse natives,” are more inclined toward second-hand shopping, driven by economic factors and a cultural appreciation for high-quality, well-preserved goods. However, this trend has raised concerns about its impact on Japan’s GDP, as second-hand transactions do not contribute to producing new goods.
  • China and Korea: A comparative study of second-hand clothing consumption in China and Korea reveals that both countries have experienced growth in this sector, particularly among millennials and Gen Z. In China, platforms like “Xianyu” have become popular. Cultural factors, economic conditions, and technological advancements influence consumer behaviour in these markets, with a notable shift from viewing second-hand shopping as a necessity for low-income households to a trendy, value-driven choice among younger consumers.

Implications for Brands

Brands must recognize and adapt to these regional nuances:

  • Tailored Strategies: Develop region-specific approaches considering local cultural attitudes toward second-hand goods. For instance, emphasising product longevity and quality in Japan can resonate with consumers who value well-maintained items.
  • Platform Partnerships: Collaborate with popular local resale platforms to reach a broader audience. Understanding the preferred platforms in each region allows brands to effectively engage with consumers in those markets.
  • Cultural Sensitivity: Acknowledge and respect the cultural factors influencing second-hand shopping behaviours. Incorporating culturally relevant narratives can enhance brand authenticity and appeal.

By aligning strategies with regional characteristics, brands can effectively navigate the global second-hand market, fostering growth and consumer loyalty across diverse markets.

Generational Differences in Second-Hand Shopping

The surge in second-hand shopping is not uniform across all age groups. Understanding these variations is crucial for brands aiming to effectively engage diverse demographics.

Generation Z (Born 1997–2012)

Gen Z exhibits a strong inclination toward second-hand shopping, driven by both economic and environmental considerations:

  • Prevalence of Second-Hand Purchases: A significant 83% of Gen Z consumers have either purchased or are interested in purchasing second-hand apparel, surpassing the average for all age groups by 10.7%.
  • Economic Motivation: Approximately 64% of Gen Z individuals engage in second-hand shopping primarily to save money.
  • Sustainability Concerns: Environmental consciousness plays a pivotal role, with 36% of Gen Z consumers purchasing second-hand goods to reduce their ecological footprint.

Millennials (Born 1981–1996)

Millennials also demonstrate a robust engagement with the second-hand market, influenced by financial prudence and a desire for unique items:

  • Regular Participation: Approximately 29.7% of second-hand apparel shoppers in the U.S. are aged between 25 and 34, indicating active involvement in the resale market.
    Financial Considerations: Economic factors are a significant driver, with many Millennials seeking value for money through second-hand purchases.
  • Unique Finds: Millennials’ pursuit of distinctive and vintage items motivates them to explore second-hand options, aligning with their preference for personalised and authentic products.

Generation X (Born 1965–1980) and Baby Boomers (Born 1946–1964)

While engagement is comparatively lower among older generations, there is a growing interest in second-hand shopping:

  • Participation Rates: Consumers aged 35 to 44 constitute 23.8% of second-hand apparel shoppers, while those aged 45 to 54 and 55 to 64 represent 16.6% and 11.8%, respectively.
  • Barriers to Adoption: Older consumers may face challenges such as perceptions of lower quality or concerns about the condition of second-hand goods, which can deter participation.

Implications for Brands

Recognising these generational nuances enables brands to tailor strategies effectively:

  • Targeted Marketing: Crafting messages that resonate with each generation’s motivations, such as emphasising sustainability for Gen Z and value for money for Millennials, can enhance engagement.
  • Diverse Platform Utilisation: Leveraging platforms favoured by different age groups, including social media channels for younger consumers and more traditional outlets for older demographics, ensures a broader reach.
  • Product Assortment and Quality Assurance: Offering a curated selection of high-quality second-hand items can address concerns about product condition, particularly among older consumers, fostering trust and encouraging participation.

By aligning strategies with each generational cohort’s distinct preferences and concerns, brands can effectively navigate the expanding second-hand market and cultivate a loyal, diverse customer base.

Case Study: thredUP’s Strategic Expansion in the Online Second-Hand Apparel Market


Image Credit: Dressember

Founded in 2009, thredUP has emerged as a leading online consignment and thrift store specialising in women’s and children’s apparel. The company’s innovative approach has significantly influenced the second-hand clothing industry, promoting sustainable fashion consumption.

Business Model and Growth

thredUP offers a user-friendly platform where individuals can buy and sell pre-owned clothing. Sellers send in their items using a “Clean Out Kit,” and thredUP manages the entire process, including quality inspection, photography, pricing, and listing. This managed marketplace model ensures a seamless experience for sellers and buyers, contributing to the company’s rapid growth. By 2021, thredUP had processed over 100 million unique second-hand items, underscoring its substantial impact on promoting circular fashion.

Technological Advancements

To support its expanding operations, thredUP has invested in technological infrastructure. In 2017, the company transitioned to Kubernetes for container orchestration, enhancing scalability and deployment efficiency. This shift reduced hardware costs by 56% and decreased deployment times by approximately 50%, enabling faster innovation and improved customer service.

Strategic Partnerships and Market Expansion

Recognising the potential of the resale market, thredUP launched its “Resale-as-a-Service” (RaaS) program, partnering with major retailers like Gap and Walmart. This initiative allows brands to offer second-hand options to their customers, integrating sustainability into their business models and expanding thredUP’s reach. The RaaS program has positioned thredUP as a pivotal player in the broader retail ecosystem, facilitating the adoption of circular fashion practices.

Financial Milestones

thredUP’s innovative strategies have attracted significant investment, with over $130 million in venture capital raised by 2016. This financial backing has supported the company’s technological upgrades, market expansion, and strategic partnerships, solidifying its position as an online second-hand apparel market leader.

thredUP’s success exemplifies how embracing technology, fostering strategic partnerships, and promoting sustainability can drive growth in the second-hand apparel industry. As the market continues to evolve, thredUP’s model offers valuable insights for brands seeking to navigate and capitalise on the burgeoning resale economy.

Final Thoughts

The meteoric rise of the second-hand market is redefining the global retail landscape, driven by consumers’ increasing emphasis on sustainability, affordability, and unique product offerings. This shift is not merely a transient trend but a fundamental change in consumption patterns, compelling brands to reassess and adapt their strategies.

Embracing the resale economy offers brands many benefits, including access to new customer segments, enhanced brand loyalty, and contributions to environmental sustainability. The growing influence of Gen Z consumers, who prioritise ethical consumption and digital engagement, underscores the necessity for brands to innovate continually and align with these evolving values.

Brands that proactively incorporate second-hand offerings into their business models emphasise product durability, and engage authentically with consumers are poised to thrive. The second-hand market is not just an alternative; it is becoming a cornerstone of modern retail strategy, reflecting a broader societal move toward conscious and circular consumption.

As the lines between new and pre-owned continue to blur, the imperative for brands is clear: adapt to the changing tides of consumer behaviour or risk being left behind in a rapidly evolving marketplace.

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Passive loyalty is a thing of the past. Consumers are no longer swayed by points that take years to accumulate or discounts buried in the fine print. What once worked – simple earn-and-burn loyalty programs – now feels outdated when convenience, exclusivity, and instant gratification reign supreme.

Retailers are rewriting the rules. Loyalty is no longer free; it’s a product. From fashion and beauty to tech and travel, brands are introducing paid membership tiers that promise more than just savings. The shift isn’t subtle. Airlines are layering subscription perks onto frequent flyer programs, e-commerce giants are testing premium memberships, and direct-to-consumer brands are betting on exclusivity to drive retention. But as the subscription economy matures, cracks are starting to show.

Consumers are resisting an overload of memberships and scrutinising whether the cost is justified. Some brands have thrived by offering tangible value, while others have struggled to justify their fees. The challenge isn’t just attracting subscribers – it’s keeping them engaged without alienating price-sensitive shoppers.

Understanding Consumer Expectations in the New Loyalty Landscape 

Loyalty is no longer about collecting points; it’s about perceived value. Consumers have become more selective, weighing every subscription against its actual benefits. A decade ago, signing up for a loyalty program was a no-brainer. Today, even well-known brands face scrutiny when asking customers to pay for access.

Subscription fatigue is real. In a crowded market where streaming, food delivery, and retail memberships compete for the same wallet share, consumers are reevaluating what they truly need. A high annual fee isn’t a deal-breaker if the perks outweigh the cost, but brands that fail to deliver meaningful benefits see churn rates climb fast.

Personalisation is the new battleground. Generic rewards don’t cut it anymore; shoppers expect loyalty programs tailored to their behaviour. The most successful models use data to refine offerings, creating a sense of exclusivity without shutting out budget-conscious consumers. When done right, a well-structured loyalty program shifts the conversation from cost to value, keeping customers invested long after the first purchase.

Types of Loyalty Models in the Subscription Economy

Brands are adopting diverse loyalty models that blend traditional rewards with subscription-based benefits to retain customers. These models cater to varying consumer preferences and spending habits, ensuring a personalised and engaging experience. 

Here are the primary types:

  • Paid Memberships with Exclusive Benefits
    • Club Factory VIP (India, China, Southeast Asia): The E-commerce platform Club Factory offers a VIP membership where AI predicts purchasing behaviour and provides personalised discounts on frequently bought products. This approach ensures members receive tailored deals, enhancing shopping efficiency and satisfaction.
    • Watsons Elite (Hong Kong, Malaysia, Singapore, Thailand, Philippines): Watsons, a leading health and beauty retailer, offers a paid loyalty program that offers cashback on purchases, VIP in-store services, and early access to product launches. This blend of financial incentives and exclusive experiences creates a sense of privilege among members.
  • Tiered Loyalty Programs with Subscription Elements
    • MATCHESFASHION (UK): This luxury fashion retailer employs a tiered loyalty system where customer spending determines their membership level. Higher tiers unlock benefits such as priority access to new collections, personal shopping services, and exclusive event invitations, encouraging increased spending and brand engagement.
    • Trendyol (Turkey): A prominent e-commerce platform, Trendyol offers a tiered loyalty program with regionalised perks, including expedited shipping and special discounts. The program adapts to local market preferences, ensuring relevance and appeal to a diverse customer base.
  • Hybrid Models: Freemium Loyalty with Paid Upgrades
    • Karma (Global): Karma offers a free service that alerts users to price drops on desired products. Members gain access to premium features like cashback on purchases and exclusive deals for a subscription fee, blending cost-free benefits with enhanced paid options.
    • Blibli Plus (Indonesia): Blibli, an Indonesian online marketplace, offers a loyalty program with basic membership for free and standard benefits. Subscribers to Blibli Plus receive additional perks such as express delivery and special promotions, catering to casual shoppers and frequent buyers.
  • Experiential Subscriptions for Community and Access
    • Beauty Pie (UK, US): Beauty Pie operates on a membership model where subscribers can access luxury beauty products at near-factory prices. This approach demystifies product markups and offers members significant savings, fostering a community of informed beauty enthusiasts.
    • Public Lands (US): Focusing on outdoor gear and experiences, Public Lands offers a subscription that allows members access to exclusive events, workshops, and early product releases. This model emphasises community building and experiential value over traditional discounts.

Designing Loyalty Programs for a Future-Proof Strategy

Retailers must craft loyalty programs that not only attract customers but also adapt to shifting consumer behaviours and market dynamics. The following strategies offer a blueprint for developing resilient and appealing loyalty initiatives:

  • Exclusive but Accessible: Pricing Memberships Wisely
    • Dynamic Pricing Strategies: Dynamic pricing allows retailers to adjust membership fees based on demand, market trends, and customer segments. This approach ensures memberships remain attractive to a broad audience while maximising revenue. For instance, offering lower fees during off-peak seasons can entice price-sensitive customers to join.
    • Freemium Models: Introducing a free basic tier with optional paid upgrades can lower the barrier to entry, allowing customers to experience core benefits before committing financially. This model has been effective in increasing user acquisition and providing a pathway to upsell premium features.
  • Hyper-Personalisation: Making Memberships Indispensable
    • AI-Driven Personalisation: Leveraging artificial intelligence to analyze customer data enables the creation of tailored experiences and offers. Personalised recommendations and exclusive deals based on individual preferences can significantly enhance member engagement and satisfaction.
    • Behavioural Segmentation: By segmenting members based on purchasing habits and engagement levels, retailers can deliver customised rewards and communications, fostering a deeper connection and increasing loyalty.
  • Flexibility and Modular Benefits: Adapting to Consumer Preferences
    • Customisable Perks: Allowing members to select benefits that align with their interests – such as free shipping, exclusive discounts, or early access to products, can enhance the perceived value of the membership.
    • Short-Term and Seasonal Subscriptions: Offering flexible membership durations caters to customers hesitant about long-term commitments, allowing them to engage with the brand on their terms.
  • Beyond Discounts: Experiential and Social Rewards
    • Exclusive Events and Content: Hosting member-only events and workshops or providing access to unique content can create a sense of community and exclusivity, differentiating the program from competitors.
    • Community Building Initiatives: Encouraging members to participate in forums, social media groups, or referral programs fosters a sense of belonging and turns loyal customers into brand advocates.
  • Sustainability and Ethical Perks: Aligning with Values
    • Eco-Friendly Incentives: Rewarding sustainable actions like recycling or choosing eco-friendly products appeals to environmentally conscious consumers and strengthens the brand’s commitment to sustainability.
    • Charitable Contributions: Allowing members to donate rewards or a portion of their purchases to charitable causes can enhance the program’s appeal to socially responsible customers.

Brands Getting Loyalty Right

  • Lookiero (Spain, France, UK) – Subscription-based personal styling with loyalty tiers.
    Lookiero offers a curated fashion subscription service where customers receive personalised outfit selections. The brand’s loyalty tiers reward frequent subscribers with discounts, early access to limited-edition collections, and styling credits, creating a mix of exclusivity and practical savings.
  • Asia Miles (Hong Kong) – Multi-partner travel rewards program
    Asia Miles, launched by Cathay Pacific, is a travel rewards program that collaborates with multiple airlines and over 800 partners across the dining, retail, and hospitality sectors. Members earn miles through various activities and can redeem them for flights, hotel stays, and lifestyle rewards. This extensive partner network enhances the program’s value proposition, offering flexibility and a wide range of redemption options.
     
  • GrabRewards (Southeast Asia) – Multi-service platform with an integrated loyalty program
    Grab, a leading super-app in Southeast Asia, integrates its GrabRewards loyalty program across services like ride-hailing, food delivery, and digital payments. Users earn points for each transaction, which can be redeemed for discounts, vouchers, or premium services. The program features tiered memberships – Member, Silver, Gold, and Platinum – offering escalating benefits such as priority bookings and exclusive deals, effectively encouraging increased usage and customer retention.

The Future of Loyalty in the Subscription Economy

As the subscription economy continues to evolve, retailers are increasingly turning to advanced technologies to enhance their loyalty programs. Artificial intelligence and blockchain are at the forefront of this transformation, offering innovative solutions to meet the dynamic expectations of modern consumers.

AI-Powered Personalisation

Artificial intelligence enables retailers to analyze vast customer data, facilitating highly personalised experiences. By leveraging AI, brands can predict purchasing behaviours, tailor rewards, and deliver targeted promotions that resonate with individual preferences. For instance, Tesco plans to expand its use of AI to personalise shopper experiences, utilising data from its Clubcard loyalty scheme to suggest healthier choices and reduce waste.

AI-driven chatbots and virtual assistants enhance customer engagement by providing real-time support and personalised recommendations. These tools not only improve the customer experience but also gather valuable insights that can be used to refine loyalty strategies. Wendy’s, for example, has introduced an AI-based loyalty platform that analyzes customer data to create tailored offers and rewards, thereby strengthening brand loyalty.

Blockchain-Based Loyalty Programs

Blockchain technology offers a decentralised and transparent framework for loyalty programs, addressing common challenges such as fraud, data security, and interoperability. By tokenising loyalty points, retailers can provide customers with flexible and transferable rewards that can be redeemed across multiple platforms and partners. This approach not only enhances the value proposition for customers but also fosters a sense of community and engagement.

For example, Singapore Airlines’ KrisPay program utilises blockchain to convert air miles into digital tokens, allowing members to spend them seamlessly with participating merchants.

Similarly, startups like Blackbird are exploring blockchain-based loyalty solutions to connect restaurants with patrons and offer rewards in the form of digital assets.

Integration of AI and Blockchain

The convergence of AI and blockchain technologies holds significant promise for the future of loyalty programs. AI can analyze blockchain-stored data to provide deeper insights into customer behaviour, enabling more precise personalisation and dynamic reward structures. Conversely, blockchain ensures the security and transparency of the data used by AI systems, fostering trust among consumers.

This integration can lead to the development of smart contracts that automatically adjust loyalty rewards based on real-time customer interactions and predefined criteria. Such systems can enhance efficiency, reduce administrative costs, and provide customers with immediate gratification, strengthening brand loyalty.

Emphasis on Ethical and Sustainable Practices

Modern consumers are increasingly conscious of ethical and environmental issues. Retailers can leverage this awareness by incorporating sustainability and ethical considerations into loyalty programs. For instance, offering rewards for eco-friendly purchases or supporting charitable causes can resonate with socially responsible customers, fostering deeper emotional connections with the brand.

Incorporating transparency through blockchain can further enhance credibility, as customers can verify the ethical sourcing and sustainability claims of products. This approach not only aligns with consumer values but also differentiates the brand in a competitive market.

The Rise of Experiential Rewards

Beyond traditional discounts and points, there is a growing trend toward offering experiential rewards that provide unique value to customers. These can include exclusive access to events, personalised services, or early product releases. Such experiences can create lasting memories and emotional bonds between the customer and the brand.

For example, luxury brands increasingly offer personalised shopping experiences or invitations to exclusive events as part of their loyalty programs, enhancing the perceived value and exclusivity associated with the brand.

Loyalty programs are undergoing a significant transformation. Brands are shifting from traditional point-based systems to subscription-based models, offering exclusive benefits to paying members. This strategy aims to foster deeper customer engagement and secure steady revenue streams. 

However, as consumers face an increasing number of subscription options, they are becoming more discerning, leading to potential subscription fatigue. To navigate this challenge, retailers must ensure their loyalty offerings provide genuine value and personalised experiences. Leveraging advanced technologies, such as artificial intelligence, can help tailor these programs to individual preferences, enhancing customer satisfaction and retention. 

Addressing the digital divide is crucial; as loyalty programs increasingly rely on apps, individuals without smartphones may feel excluded, missing out on exclusive deals and services. Retailers need to consider inclusive strategies to accommodate all customers. 

The future of retail loyalty lies in balancing exclusivity with accessibility, leveraging technology for personalisation, and ensuring inclusivity to foster genuine customer loyalty.

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In a bustling market in Lagos, 26-year-old Aisha scrolls through Instagram, weighing whether to buy a locally made dress promoted by an influencer. The brand has no website, just a WhatsApp number for orders. With a few taps, she messages the seller, confirms the price, and arranges for cash-on-delivery. In markets like Nigeria, social commerce is leapfrogging traditional e-commerce. Shoppers don’t browse sleek e-commerce websites; they buy through Instagram DMs, Facebook groups, and TikTok live streams. The brands that fail to adapt to this reality risk missing out on the next billion consumers.

The numbers reveal an undeniable shift in global commerce. E-commerce sales are projected to grow from $5.13 trillion in 2022 to $8.09 trillion by 2028, driven by an influx of new consumers from high-growth regions. China and the United States still lead in online retail, contributing over $2.32 trillion in sales in 2023, but the real transformation is happening in emerging economies like India, Indonesia, Nigeria, and the Philippines. Here, mobile and social commerce has become the foundation of digital retail.

For brands, the challenge is not just expansion; it’s reinvention. These new consumers don’t shop the way the first billion did. Over 80% research products online using search engines, social networks, and short-form videos, while 76% rely on social validation – likes, influencer recommendations, and customer reviews – before making a purchase. Yet, nearly half of the world’s largest consumer brands still lack a presence in these emerging markets, leaving a vast opportunity for those willing to rethink their approach.

But being present is not enough. The next billion shoppers favour social commerce over traditional e-commerce, engage with brands through messaging apps rather than websites, and expect seamless digital experiences across devices – even in regions where internet access is unreliable. They are also fiercely value-conscious, prioritising flexible payment methods like digital wallets and cash-on-delivery, options many global brands still fail to support.

Yet, many companies still operate with outdated digital commerce models built for Western markets. Global brands risk losing ground to more agile, regionally dominant competitors without rethinking payment systems, embedding social commerce, and optimising for mobile-first experiences.

The next billion shoppers aren’t waiting for brands to catch up. The only question is: Are brands ready for them?

Who Are the Next Billion Shoppers?

A 22-year-old university student buys skincare products in India through a WhatsApp group chat. In Nairobi, a young entrepreneur sells handmade jewellery on Facebook Marketplace, coordinating payments through mobile money. Across emerging markets, consumers bypass traditional e-commerce models, turning to social-first, mobile-driven shopping experiences that global brands have barely begun to tap into.

These next billion digital consumers – predominantly in India, Indonesia, Nigeria, the Philippines, Egypt, and Kenya – are young, mobile-first, and digitally fluent. Internet access is expanding at an unprecedented pace, fueling a seismic shift in global commerce. Yet, many brands still fail to understand how these shoppers think and behave.

What sets them apart is how they shop. Unlike their Western counterparts, they favour informal, platform-driven commerce over conventional e-commerce sites. Social media, messaging apps, and peer-to-peer networks aren’t just places to connect; they are marketplaces, customer service hubs, and payment portals. A single Instagram post can trigger thousands of transactions, with sellers coordinating payments and deliveries through direct messages.

But logistical and economic challenges shape their habits. Cash-on-delivery remains dominant in many of these markets, and mobile data costs influence browsing behaviour. Poor infrastructure in rural areas means last-mile delivery is unreliable, forcing consumers to adapt. In response, brands leverage micro-fulfillment centers, regional payment apps, and social commerce strategies to bridge these gaps.

By 2030, these emerging digital consumers will drive global e-commerce revenues past $8 trillion. But brands that attempt a one-size-fits-all approach will fail. To succeed, companies must embed themselves into local digital ecosystems, rethink payment and fulfilment strategies, and embrace how these consumers already shop or risk becoming irrelevant in these emerging markets.

Digital Access Is No Longer a Barrier—But Trust and Infrastructure Are

On paper, the e-commerce revolution in emerging markets looks unstoppable. Smartphone penetration is soaring, digital payment systems are growing, and mobile data is cheaper than ever. But inside a small shop in Jakarta, 28-year-old Rizky still hesitates before clicking ‘buy’ on an Instagram ad.

“The products look good, but I’ve been scammed before,” he says, scrolling through the comments. “What if it never arrives? Or worse, what if it’s fake?”

Rizky’s concerns reflect a broader reality: while digital adoption is rising, trust remains one of the biggest barriers to e-commerce growth. Counterfeit goods, poor customer service, and unreliable delivery services have made many consumers sceptical. Even in fast-growing online markets, many prefer cash transactions or in-person shopping rather than risk a bad purchase.

Payments are another obstacle. While fintech solutions are expanding, millions of consumers remain unbanked or underbanked. In Nigeria and India, cash-on-delivery still dominates, yet many global brands continue pushing credit card-based payment systems. In a region where platforms like GCash in the Philippines, Paytm in India, and M-Pesa in Kenya have become standard, brands that fail to offer these options risk losing sales entirely.

Then there’s last-mile delivery, or the lack of it. In rural Indonesia and sub-Saharan Africa, poor infrastructure means packages take weeks to arrive – if they make it at all. Some brands have adapted, partnering with hyper-local delivery networks or setting up pickup hubs in community centres and convenience stores. Others still operate with rigid, one-size-fits-all supply chains that don’t work in these markets.

The lesson is clear: digital access alone won’t drive e-commerce success. Winning over the next billion shoppers requires more than just an internet connection; it demands localised payment solutions, seamless returns, and a serious investment in trust-building. Without these, even the best-designed digital strategies will fall flat.

How Brands Can Win the Next Billion Shoppers

In Manila, a small fashion retailer went from selling 50 dresses a month to 500 without launching a website. Instead, its business runs through Facebook Live sales and TikTok videos, where customers comment “Mine” to claim an item and settle payments via digital wallets. Across emerging markets, this is the new normal.

For global brands, the lesson is clear: scaling into high-growth digital markets requires far more than a translated website or a localised ad campaign. The next billion shoppers aren’t waiting for brands to find them on corporate e-commerce platforms – they’re already buying where they spend their time: social media, messaging apps, and peer-to-peer networks.

Yet, many Western brands still treat these channels as secondary sales tools rather than primary retail ecosystems. In Indonesia, Nigeria, and the Philippines, more than half of digital shoppers prefer buying through social media rather than traditional e-commerce websites. Brands that expect customers to visit standalone online stores are missing the point, as these shoppers expect brands to meet them where they already are.

That shift is forcing a rethink of engagement strategies. Live shopping, influencer-driven commerce, and peer recommendations have overtaken static product listings and website browsing. In China, where social commerce surpasses $500 billion annually, global brands have had to completely restructure their sales channels to compete with domestic players that integrate commerce seamlessly into entertainment. The same transformation is sweeping Southeast Asia, Africa, and Latin America.

But selling in these markets requires more than just showing up. AI-driven personalisation is now a competitive necessity, not a luxury. Machine learning models are helping brands optimise pricing, tailor product recommendations, and automate language localisation – yet many companies still fail to adjust their messaging, relying on generic campaigns that don’t resonate.

Language and cultural nuance can make or break a sale. While English is widely used in business, most consumers prefer to shop in their native language, engage with familiar imagery, and trust local influencers over foreign celebrity endorsements. Brands that get this right, like Coca-Cola and Unilever, see stronger conversion rates and long-term loyalty. Those that don’t risk alienating their audience before they even make it to checkout.

Simply put, what worked in established e-commerce markets won’t work here. Successful brands embed themselves in local digital ecosystems, embrace social-first shopping, and design their experiences around how consumers already buy, not how brands want them to buy.

Who Controls the Future of E-Commerce? Local Platforms Are Winning

When Indonesian beauty brand Somethinc wanted to expand online, it didn’t launch its website. Instead, it built its entire e-commerce strategy around Shopee and TikTok Shop, running daily flash sales and live-streaming product tutorials. The result? A 10x sales increase within months, driven entirely by social commerce and regional marketplaces.

Somethinc’s story isn’t unique. Across emerging markets, the next billion shoppers aren’t discovering products through branded websites; they’re buying from super apps, social media platforms, and dominant regional marketplaces. For global brands, winning these markets means playing by new rules where local giants, not Western e-commerce behemoths, set the terms of engagement.

The Power Shift: Regional Marketplaces vs. Global E-Commerce Giants
For years, companies like Amazon and Alibaba have defined global e-commerce. But that dominance is fading in Southeast Asia, Africa, and Latin America. Platforms like Shopee, Jumia, and MercadoLibre have become the default shopping destinations, offering localised logistics, digital wallet integrations, and cash-on-delivery options that global brands struggle to replicate.

The numbers tell the story. In China, social commerce sales surpassed $500 billion, with platforms like Douyin (China’s TikTok), Xiaohongshu, and WeChat driving transactions entirely within their ecosystems. The same model is now spreading across Indonesia, Nigeria, and Mexico, where more than half of online shoppers prefer purchasing directly through social media.

Yet, many Western brands still treat these marketplaces as secondary sales channels rather than core business platforms. In India, Flipkart and Myntra dominate e-commerce for fashion and electronics, while Tokopedia in Indonesia has built a hyper-localised supply chain that global competitors can’t match. Simply listing products on these platforms is not enough – brands must actively invest in platform-specific strategies, native advertising, and localised engagement.

Why Direct-to-Consumer Models Are Struggling
For decades, DTC strategies helped brands build direct relationships with consumers. But DTC isn’t the future in emerging markets; it’s a limitation. Brands that cling to standalone e-commerce sites are losing relevance as shoppers expect frictionless transactions within the platforms they already use.

Even in Western markets, the shift is happening. TikTok Shop’s expansion into the U.S. and U.K. signals a major shift in commerce dynamics – one that mirrors the e-commerce revolution already unfolding in Asia and Africa. The next billion shoppers won’t be navigating company websites – they’ll be purchasing inside their favourite apps.

The message is clear: The future of e-commerce belongs to platforms that seamlessly blend social engagement, localised logistics, and frictionless transactions. The brands that adapt to this reality – rather than trying to control it – will be the ones that capture the next wave of global consumers.

How Global Brands Can Win in the Next Billion Market

In India, fast-fashion brand Ajio doesn’t just sell online; it has redefined mobile-first commerce. Instead of relying on traditional e-commerce websites, it built its entire sales strategy around WhatsApp-based shopping, integrating local payment options and live-chat support for consumers who prefer conversational commerce. The approach has been so successful that WhatsApp shopping now drives a significant share of its sales in smaller cities and rural areas.

For global brands, this is the future of e-commerce, requiring a radical shift in strategy. Companies that treat these new markets like extensions of the West will struggle. Those that understand the unique behaviours, expectations, and challenges of the next billion consumers will dominate.

Here’s how brands can compete effectively in these emerging digital economies:

  • Market Research Can’t Be an Afterthought

Global strategies often fail because they assume all emerging markets behave similarly. Shopping habits, payment preferences, and brand trust vary drastically between Jakarta, Lagos, and Manila. Companies that skip deep, localised market research often launch with the wrong pricing models, payment options, and messaging that doesn’t resonate.

Many brands have learned this the hard way. Walmart’s struggles in India stemmed from misunderstanding local retail behaviours, forcing the company to pivot from a direct e-commerce approach to acquiring Flipkart. In contrast, brands like P&G and Coca-Cola invest heavily in country-specific consumer insights and have successfully built strong footholds in these markets.

  • Think Beyond Translation – Create Market-Specific Storytelling

Localisation isn’t just about translating a global campaign into another language; it’s about understanding cultural nuances. Consumers in India, Indonesia, and Nigeria engage with storytelling differently than shoppers in New York or London.

Nike’s Southeast Asian marketing campaigns, for instance, don’t just feature global athletes. They include local sports icons and culturally relevant narratives, tapping into national pride and regional sports culture. This approach has driven significantly higher engagement than generic Western-focused messaging.

  • Build for Mobile-First, Low-Bandwidth Markets

In many emerging economies, the mobile phone is the only device people use to access the internet. More than 90% of internet users in these markets are mobile-exclusive, and many are on low-bandwidth connections.

That’s why progressive web apps (PWAs) and lightweight mobile sites outperform heavy, Western-style e-commerce platforms. Companies like Jumia in Africa and Tokopedia in Indonesia have invested in fast-loading mobile interfaces, ensuring that even consumers in low-data regions can shop seamlessly.

  • Payment and Fulfillment Must Be Localised

Credit cards are not the default in these markets. In India and the Philippines, cash-on-delivery remains a dominant payment method. In Kenya, M-Pesa is the standard for digital transactions. In China, QR-code-based WeChat Pay and Alipay drive nearly all online purchases.

Western brands that only integrate credit card checkouts exclude millions of potential customers. Companies that tailor their payment options—as Apple did by adding UPI payments in India—win consumer trust and adoption faster.

  • Social Commerce Is Now the Default, Not an Add-On

Social media isn’t just a marketing tool in emerging economies; it is the storefront. More than half of digital shoppers in Indonesia and Nigeria buy directly through social platforms, often engaging with brands through WhatsApp, Instagram, or Facebook groups.

Live-stream shopping is also exploding in popularity. Approximately 50% of the country’s internet users in China utilised live commerce in 2023. This model is quickly expanding across Southeast Asia and Latin America. Brands that ignore this trend risk losing to local sellers who understand the nuances of peer-driven shopping.

  • Logistics and Trust Are the Make-or-Break Factors

Selling a product is one thing. Getting it to the customer reliably is another.

Brands like Shopee and Jumia have gained an edge because they built extensive last-mile delivery networks, partnering with local couriers, pickup hubs, and even motorcycle taxi fleets to ensure orders arrive on time. Amazon, by contrast, struggled in markets like India because it initially relied on its Western fulfilment model rather than adapting to local infrastructure.

Trust is also a challenge. Consumers rely heavily on peer reviews and seller reputations before purchasing in markets with high counterfeit product risks. That’s why platforms like Tokopedia and Shopee have built-in buyer protection policies, a feature that global brands must adopt to compete.

The Time to Adapt Is Now

The next billion shoppers are reshaping digital commerce faster than most global brands can keep up. But this shift isn’t just about adding new markets to existing playbooks. It requires a fundamental change in how brands operate, engage, and build trust.

The companies that embed themselves into local digital ecosystems rethink their approach to payments and fulfilment and leverage social commerce as a primary – not secondary – strategy that will lead the next era of global retail. The rest? They’ll be playing catch-up.

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