Are you tired of investing time, money, and resources to develop products that don’t resonate with your target audience? Have you ever launched a product that received little to no interest from the market? If so, you’re not alone. 

Launching a successful product in today’s highly competitive market can be daunting. However, concept testing can help you validate your product ideas, refine your concepts, and increase the likelihood of success.

Concept testing evaluates customer responses to a product idea before launching it in the market. It involves gathering feedback from potential customers to understand their preferences, pain points, and expectations. By conducting concept testing at different stages of product development, you can identify potential issues and improve your product before it’s too late.

In this article, we will explore the importance of concept testing in product development and provide an overview of the different stages involved in the process. From idea generation to launch testing, we will discuss how concept testing can help you maximize your product’s potential and increase your chances of success in the market. 

What is concept testing? 

Concept testing, also known as idea testing, is a crucial step in the product development process. It involves testing a product idea with potential customers to gauge their level of interest and gather feedback to refine and improve the idea.

Concept testing aims to validate a product idea before investing significant resources in developing it. It allows product teams to gather valuable insights from potential customers and make data-driven decisions based on their feedback. This helps to reduce the risk of failure and increases the chances of launching a successful product.

Concept testing can be conducted using various methods, including surveys, focus groups, and interviews. It typically involves presenting potential customers with a description, sketch, or prototype of the product and gathering their feedback on various aspects, such as its features, pricing, and overall appeal.

Concept testing is an integral part of the product development process as it can help companies avoid costly mistakes, such as launching products with no market demand. By gathering feedback early on in the product development process, companies can make informed decisions about whether to proceed with the product idea or make modifications to improve its chances of success.

Stage 1: Idea Generation

Ah, the brainstorming stage – the time to let your imagination run wild with new product ideas! But wait, before you start investing time and resources into developing a product, have you considered the importance of concept testing in the idea generation phase?

Concept testing is critical in the idea generation stage, as it helps to validate and refine your product ideas. Imagine spending months developing a product only to discover that it’s not something your target audience wants or needs. That’s where concept testing comes in – it helps you to validate your ideas before you invest significant resources into developing them.

Let’s say you have an idea for a new fitness tracker that tracks your daily water intake. You might think this is a great idea, but will your target audience feel the same? Through concept testing, you can present your idea to potential customers and gather their feedback on your product’s features, pricing, and overall appeal. If your target audience doesn’t see the value in tracking their water intake, you can refine your idea to include more appealing features.

In addition to validating your ideas, concept testing in the idea generation phase can also help you to generate new ideas. Presenting your product idea to potential customers may generate feedback that inspires new features or functionalities you have yet to consider.

Stage 2: Concept Development

Welcome to stage two – concept development! This is where you take your product ideas and start developing them into a tangible concept. But how do you know which concept is the most promising one? You guessed it – concept testing!

Concept testing in the concept development stage can help you to evaluate different concepts and identify the most promising ones. Let’s say you have developed three concepts for your fitness tracker – one that tracks water intake, one that tracks sleep patterns, and one that tracks heart rate. Through concept testing, you can present these concepts to potential customers and gather feedback on their level of interest in each one. Based on their feedback, you can identify which concept most appeals to your target audience.

Not only can concept testing help you to identify the most promising concept, but it can also help you to refine the concept further. Through feedback from potential customers, you may discover areas that need improvement or additional features that would make the product even more appealing.

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Stage 3: Prototype Testing

Now that you have a promising product concept, it’s time to develop and test a prototype with your target audience. This is where concept testing can help to refine your prototype and identify areas for improvement.

Let’s say you have developed a prototype of your fitness tracker that tracks water intake. You present it to potential customers, and while they are interested in the idea, they express concerns about the size and comfort of the tracker. Through concept testing, you can gather this feedback and refine your prototype to address these concerns. You could make the tracker smaller or adjust the design to make it more comfortable to wear.

In addition to refining your prototype, concept testing can help you identify areas for improvement. For example, if potential customers express confusion about how to use certain features, you may need to adjust the user interface to make it more intuitive.

Concept testing in the prototype testing stage can be conducted in various ways, such as usability testing or field testing. These methods allow you to gather feedback on the functionality and user experience of the prototype.

By refining your prototype based on feedback from concept testing, you can increase the chances of launching a successful product that meets the needs and desires of your target audience. So, don’t underestimate the power of concept testing in the prototype testing stage – it can make all the difference between a mediocre product and a successful one.

Stage 4: Launch Testing

Now let’s look at launch testing! This is where you test the market readiness of your product and identify potential issues before launch. 

Concept testing in the launch testing stage can help you gather feedback on your product’s final version before launch. This feedback can help you to identify potential issues, such as pricing concerns or a lack of interest in certain features. 

For example, if you have developed a new smartphone app, you can present it to potential customers and gather feedback on its functionality, design, and pricing. Based on this feedback, you can make necessary adjustments before launching the app to the market.

By gathering feedback from potential customers in the launch testing stage, you can also gain insights into the competition and the overall market demand for your product. This can help you to make informed decisions about pricing, marketing, and distribution strategies.

Concept testing in the launch testing stage can be conducted in various ways, such as beta testing or product demos. These methods allow you to gather feedback on the final version of your product and make necessary adjustments before launching.

Methodologies for concept testing

Now that we’ve explored the different stages of concept testing and their importance in product development, let’s dive deeper into the various methodologies that can be used for concept testing.

There are several different methods for conducting concept testing, each with advantages and disadvantages. The most commonly used methods include surveys, focus groups, and usability testing.

Surveys are a great way to gather feedback from a large number of potential customers. They can be conducted online or in person and are typically used to collect quantitative data on different aspects of a product concept, such as the level of interest in certain features or pricing.

On the other hand, focus groups are more qualitative and involve gathering a small group of potential customers to discuss and provide feedback on a product concept. They are often used to gain more in-depth insights into the thoughts and feelings of potential customers, as well as to gather ideas for new product features or functionalities.

Usability testing is another method that can be used to gather feedback on a product concept. It involves observing potential customers as they use a prototype of the product and gathering feedback on the usability and functionality of the product.

In addition to these methods, there are other types of concept testing, such as A/B and field testing. A/B testing involves presenting two different versions of a product concept to potential customers and gathering feedback on which one is more appealing. Field testing involves testing a product concept in a real-world setting, such as in a store or online marketplace.

Best Practices

Now that we’ve explored the different methodologies for concept testing let’s explore some best practices for conducting effective concept testing. These best practices help ensure that you gather the most valuable feedback and make informed decisions about your product development.

Firstly, defining clear research objectives before conducting concept testing is important. This will help you focus on the most important aspects of the product concept and gather relevant feedback for your goals. Clear research objectives also help ensure you don’t waste time or resources on gathering irrelevant feedback.

Secondly, recruiting the right participants for your concept testing is essential. This means targeting individuals representing your target audience and likely to use or purchase your product. It’s also important to ensure the participants are engaged and invested in the concept testing process. You can achieve this by providing incentives or rewards for their participation.

Another best practice is to use the correct methodology for your product concept and research objectives. This means choosing a method best suited for gathering feedback on the specific aspects of your product concept that you want to test. 

For example, if you want to gather quantitative data on pricing, a survey would be more appropriate than a focus group.

Finally, analyzing the data effectively is crucial to make informed decisions about your product development. This means looking for trends and patterns in the feedback and using this information to refine and improve your product concept. It’s also important to prioritize the feedback based on its relevance and impact on the product’s success.

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Limitations of concept testing

While concept testing is a valuable tool for product development, knowing its limitations is essential.

For example, concept testing can only provide feedback on the specific product concept being presented to potential customers. It may not capture all possible issues or challenges that arise once the product is launched in the market. 

Additionally, concept testing can be influenced by factors such as how the concept is presented, and the language used, or the participants’ demographic.

Another limitation of concept testing is that it may not capture a product’s emotional or experiential aspects. For example, a potential customer may express interest in a product concept, but they may have a negative emotional response once they use the product.

By acknowledging the limitations of concept testing, product development teams can use it as a tool in combination with other methods, such as user testing and market research, to gain a more comprehensive understanding of their product’s potential success in the market.

Case Studies in Concept Testing

Now let’s look at some real-life case studies of successful concept testing in product development. 

One example comes from the UK-based cosmetics company Lush. In 2018, Lush developed a new product concept for a solid shower gel. Before launching the product, Lush conducted concept testing by sending samples to customers and gathering feedback through surveys. The feedback was overwhelmingly positive, with customers expressing interest in the new product and suggesting additional scents for the line. Lush used this feedback to refine the product and launch it successfully in the market.

Another example comes from the US-based fast-food chain Taco Bell. In 2017, Taco Bell conducted concept testing for a new menu item called the Naked Chicken Chalupa. The company used focus groups and taste tests to gather feedback on the product concept and made adjustments based on the feedback. The Naked Chicken Chalupa was a huge success when launched, selling over 25 million units in its first year.

Finally, an example from Asia comes from the Chinese tech company Xiaomi. Xiaomi developed a new product concept for a foldable phone, but before launching the product, the company conducted concept testing by sending out a prototype to potential customers for feedback. The feedback was mixed, with customers expressing concerns about the phone’s durability. Xiaomi used this feedback to make necessary adjustments and launch a successful foldable phone.

Key Takeaways

In conclusion, concept testing is a crucial step in the product development process. It allows brands to gather feedback from potential customers, refine their product concepts, and increase their chances of success in the market. 

Brands can conduct effective concept testing and make informed decisions about their product development by following best practices such as defining clear research objectives, recruiting the right participants, and analyzing data effectively.

Here are some key takeaways to keep in mind:

  • Concept testing can be conducted at different stages of product development, including idea generation, concept development, prototype testing, and launch testing.
  • Different methodologies can be used for concept testing, including surveys, focus groups, and usability testing.
  • Effective concept testing requires careful planning, execution, and analysis of data.
  • Concept testing has limitations, and it should be combined with other methods to gain a more comprehensive understanding of a product’s potential success in the market.

Overall, concept testing is a valuable tool for product development that can help companies to create products that truly resonate with their target audience. By implementing the best practices and key takeaways discussed in this article, you can increase your chances of success and launch a product that will delight your customers.

If you want to conduct concept testing for your next product development project, consider using a market research agency like Kadence International. We have extensive experience conducting effective concept testing and can help you gather valuable feedback from potential customers. To get started, simply submit your research brief.

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Have you ever found yourself hesitating before making a purchase? You may have been unsure about the quality of the product or whether you could afford it. Or maybe you were simply feeling uncertain about the future and didn’t want to commit to something that might not be a wise investment. 

Whatever the reason, you’re not alone. Uncertainty is a common experience for many consumers and can significantly impact buying decisions. It’s important to understand uncertainty’s role in consumer behavior and how we can respond to it to better meet our customers’ needs.

In this article, we’ll explore the fascinating world of consumer psychology during times of uncertainty. We’ll delve into the effects of uncertainty, how consumers respond to it, and what marketers can do to adjust their strategies accordingly. 

We’ll also discuss market research’s crucial role in understanding and responding to uncertainty and provide some practical tips for conducting research during uncertain times. 

So buckle up and get ready for a deep dive into the unpredictable waters of consumer purchasing behavior!

The Concept of Uncertainty

Let’s break down the different types of uncertainty. 

Economic uncertainty is perhaps the most well-known and pervasive form of uncertainty. It can arise from various factors, such as recessions, inflation, or changes in government policies. When consumers are uncertain about their financial futures, they may be more cautious about spending money and prioritize essentials over luxury items.

Social uncertainty, on the other hand, can arise from changes in social norms or cultural values. For example, the #MeToo movement sparked a reckoning in many industries as consumers became more aware of issues related to sexual harassment and assault. This led to increased uncertainty about what behavior is considered acceptable in the workplace and beyond, which may have affected consumer preferences and buying decisions.

Personal uncertainty can stem from various sources, such as health concerns, relationship issues, or significant life transitions. When consumers are experiencing personal uncertainty, they may be more likely to prioritize products or services that offer a sense of stability or comfort, such as self-care products or experiences that provide a sense of escapism.

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The Effects of Uncertainty

For one thing, uncertainty tends to make consumers more cautious about spending money. Consumers may be more likely to save their money for a rainy day when the future feels unpredictable rather than splurge on non-essential items. This can be especially true during times of economic uncertainty, such as recessions or market crashes, when consumers may be worried about losing their jobs or experiencing a decline in their financial well-being.

Uncertainty can also lead consumers to seek out products or services that offer a sense of stability or security. For example, during social or political uncertainty, consumers may be more likely to support brands or businesses that align with their values or offer a sense of community or belonging. Similarly, during times of personal uncertainty, consumers may be drawn to products or services that provide a sense of comfort or escape, such as luxury goods or experiences.

The effects of uncertainty on consumer behavior can be complex and multifaceted. Still, uncertainty can significantly impact consumers’ willingness to take risks and make purchases. It’s essential for brands to be aware of these effects and to adapt their strategies accordingly. By understanding how uncertainty affects consumer behavior, we can better tailor our messaging, products, and services to meet the needs of our customers, even in the most uncertain of times.

Consumer Response to Uncertainty

Consumers may respond in various ways when faced with uncertainty, depending on their personal circumstances and individual preferences. However, some common patterns tend to emerge when consumers feel uncertain about the future.

One of the most notable responses to uncertainty is a tendency to seek more information before purchasing. When consumers feel uncertain about the quality, safety, or value of a product, they may be more likely to do their research and read reviews before making a decision. This can be especially true during times of uncertainty, when consumers may be more risk-averse and less willing to take chances on products they need to learn more about.

Another common response to uncertainty is a preference for familiar brands or products. Consumers may be more likely to stick with brands or products they know and trust when the future feels unpredictable rather than experimenting with new or unfamiliar options. This can be especially true during times of economic uncertainty, when consumers may be looking for ways to save money and reduce risk.

Additionally, during times of uncertainty, consumers may be more likely to prioritize practical needs over aesthetic or luxury desires. For example, during a recession, consumers may be more likely to purchase essential items like food and clothing rather than splurge on expensive vacations or high-end fashion items.

Implications for Marketers

As we’ve seen, uncertainty can significantly impact consumer behavior, affecting everything from purchasing decisions to brand loyalty. For marketers, it’s important to be aware of how uncertainty affects their target audience and to adapt their strategies accordingly.

One key implication for marketers is the need to reassure consumers during times of uncertainty. This can involve emphasizing the quality, safety, and reliability of products and services and addressing any concerns or questions consumers may have. By providing clear and transparent messaging, marketers can help build trust and loyalty among consumers, even during times of unpredictability.

Another critical consideration for marketers is pricing strategy. During times of uncertainty, consumers may be more price-sensitive and risk-averse, making it challenging to attract and retain customers. To address this, marketers may need to adjust their pricing strategies to reflect changing consumer behavior, such as offering discounts or promotions to incentivize purchases.

Additionally, marketers must be more flexible and adaptable in their approach, as consumer behavior can shift quickly in response to changing circumstances. This may involve experimenting with new marketing channels or tactics or being open to adjusting messaging or product offerings as needed.

Lessons from Past Uncertain Times

The 2008 Financial Crisis 

During the financial crisis of 2008, many consumers became more cautious about spending money, particularly on luxury goods and services. As a result, brands that relied heavily on discretionary spending, such as high-end fashion labels and luxury hotels, saw a significant decline in sales. At the same time, consumers became more interested in value-driven products and services, such as budget airlines and discount retailers. 

Many luxury fashion brands responded by offering affordable options like diffusion lines and collaborations with fast fashion retailers. For example, designer Versace partnered with H&M, a popular fast fashion brand, to reach a wider audience and appeal to price-sensitive consumers. Similarly, many luxury hotels responded by offering promotions and deals to attract customers looking to save money.

The COVID-19 Pandemic

The COVID-19 pandemic has significantly impacted consumer behavior, as many people have experienced economic, social, and personal uncertainty. During the pandemic, consumers have been more cautious about in-person shopping and have increasingly turned to online retailers for their purchases. Additionally, consumers have become more interested in health and wellness products, home improvement, and DIY products as they spend more time at home.

For example, beauty brand Sephora launched a virtual makeup try-on tool, allowing customers to test out products from the comfort of their own homes. Additionally, many brands pivoted their messaging to emphasize safety and hygiene, such as restaurant chains highlighting their contactless delivery options or airlines emphasizing their cleaning procedures.

The #MeToo Movement

The #MeToo movement has profoundly impacted consumer behavior, particularly in the fashion industry. Brands perceived as promoting unrealistic beauty standards or perpetuating gender stereotypes saw a decline in sales, while brands that embraced inclusivity and diversity saw increased demand. 

For example, lingerie brand Aerie launched a campaign featuring unretouched photos of models with a range of body types to promote body positivity and self-confidence. 

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The Role of Market Research

Market research is a crucial tool for understanding consumer behavior, particularly during times of uncertainty. By gathering data and insights on how consumers respond to changing circumstances, market researchers can help marketers develop effective strategies that meet the needs of their target audience.

One of the main benefits of market research during times of uncertainty is the ability to identify changing consumer needs and concerns. For example, during the COVID-19 pandemic, market research has helped brands understand how consumers adjust to working from home, their concerns about public health and safety, and what products and services they are most interested in. By gathering this data, marketers can develop messaging and products that resonate with consumers’ changing needs and priorities.

Another role of market research during times of uncertainty is to identify changes in consumer behavior. Brands that use market research can identify trends and patterns that may indicate more significant shifts in consumer behavior by analyzing purchasing patterns, brand loyalty, and other key metrics. This can help marketers anticipate changes in the marketplace and adjust their strategies accordingly.

Finally, market research can help marketers develop messaging and branding that resonates with consumers’ emotions and values. During times of uncertainty, consumers may be more sensitive to trust, safety, and social responsibility issues. Market research can help identify the most effective ways to communicate these values to consumers.

Overall, market research is a crucial tool for navigating the complex and unpredictable world of consumer behavior during times of uncertainty. By gathering data and insights on consumer needs, behavior, and values, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key Takeaways

Uncertainty is a fact of life that can significantly impact consumer behavior. From economic downturns to social movements to global pandemics, uncertainty can make consumers more cautious, risk-averse, and focused on practical needs. However, by understanding how uncertainty affects consumer behavior, marketers can develop effective strategies that meet the changing needs of their target audience and build long-term success.

Key takeaways include the importance of reassurance, adaptability, and flexibility in uncertain times. Marketers must be attuned to their target audience’s changing needs and concerns and be willing to adjust their strategies accordingly. Additionally, market research is crucial for understanding how consumers respond to uncertainty and can provide valuable insights into changing behavior and priorities.

Moving forward, brands should prioritize building trust and loyalty among their target audience, emphasizing practical needs and value-driven products and services, and remaining flexible and adaptable in the face of changing circumstances. By doing so, marketers can weather even the most uncertain times and emerge stronger and more resilient.

So, let’s approach uncertainty with optimism and confidence. By embracing change, staying attuned to consumer needs, and remaining flexible and adaptable, we can build a more resilient and successful future for ourselves and our brands.

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The beauty industry is constantly evolving and growing, with global sales projected to reach $716 billion by 2025. However, in this crowded and competitive market, it is becoming increasingly challenging for brands to stand out and capture the attention of their target audience.

Did you know that 75% of consumers expect personalized experiences from beauty brands? To provide personalized experiences and create effective marketing strategies, brands in this space must understand the consumer behavior of their target audience.

Demographics

Understanding the demographics of the beauty and cosmetics consumer is essential for product marketing managers to create effective campaigns and products that resonate with their target audience. Over the years, the demographics of the beauty industry have evolved significantly, with changes in age, gender, and socioeconomic backgrounds.

Traditionally, the beauty industry was primarily marketed towards women, but in recent years, there has been a shift towards inclusivity and diversity, with many brands now targeting men, non-binary individuals, and individuals of all ages and ethnicities.

According to a report by Euromonitor International, in 2020, the global beauty and personal care market saw a 6.5% increase in male grooming products, and 60% of men reported using skincare products daily. This trend is expected to continue in the coming years, with more men becoming interested in grooming and personal care.

In terms of age, the beauty industry targets a wide range of age groups. The younger generation, especially millennials and Gen Z, have been particularly influential in driving trends and shaping the industry. This demographic is more likely to be influenced by social media and celebrity endorsements and is more open to trying new products and experimenting with different looks.

Socioeconomic background also plays a role in consumer behavior in the beauty industry. High-end luxury brands tend to target a more affluent audience, while drugstore brands aim to be more accessible to consumers on a budget.

Psychographics

In addition to demographics, understanding the psychographics of your target audience is essential for product marketing managers in the beauty industry. Psychographics refers to consumers’ attitudes, values, and beliefs and how these factors influence their purchasing decisions.

For example, some consumers may prioritize sustainability and ethical sourcing when choosing beauty products, while others may prioritize convenience and affordability. Some consumers may be loyal to a particular brand or product, while others may be more open to trying new products and experimenting with different looks.

To better understand the psychographics of your target audience, it can be helpful to conduct market research, such as surveys or focus groups, to gather insights into their preferences and purchasing habits. Social media can also be a valuable tool for understanding the attitudes and values of your target audience, as it provides a platform for consumers to share their opinions and engage with brands.

Once you have a better understanding of the psychographics of your target audience, you can tailor your marketing strategies and products to meet their specific needs and preferences. For example, if sustainability is essential to your target audience, you could focus on using eco-friendly packaging and ingredients in your products. If convenience is a priority, you could develop products that are easy to use on-the-go.

Consumer Behavior Models

Exploring different consumer behavior models can be helpful to better understand the consumer behavior of your target audience in the beauty industry. These models provide a framework for understanding consumers’ purchasing decisions and can help brands develop effective marketing strategies.

  • Traditional Marketing Funnel: This model is a widely used framework for understanding the customer journey. It consists of four stages: awareness, interest, decision, and action. At each stage, consumers have different needs and requirements, and it is the job of product marketing managers to provide the right information and support to move them through the funnel toward a purchase.
  • Customer Decision-Making Process: This model is a more in-depth framework that focuses on the internal thought processes of consumers. It consists of five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. This model highlights the importance of understanding the needs and preferences of consumers at each stage of the decision-making process.
  • Consumer Adoption Process: The consumer adoption process model focuses on how consumers adopt new products. It comprises five stages: awareness, interest, evaluation, trial, and adoption. This model benefits brands introducing new products to the market, as it helps them understand the factors that influence consumers’ adoption of new products.

By understanding these different consumer behavior models, product marketing managers can tailor their marketing strategies to better meet the needs and preferences of their target audience at each stage of the customer journey. 

For example, suppose a brand is launching a new product. In that case, the consumer adoption process model can be used to develop a targeted marketing campaign that focuses on building awareness, generating interest, and encouraging product trialing.

Understanding the different consumer behavior models is crucial for brands in the cosmetics and beauty industries to develop effective marketing strategies that resonate with their target audience. These models provide a framework for understanding the customer journey and can be used to create targeted campaigns that meet the needs and preferences of consumers at each stage of the decision-making process.

Purchase Decision Factors

To better understand the consumer behavior of your target audience in the beauty industry, it is essential to identify the key factors that influence their purchase decisions. Some of the factors that can influence purchase decisions in the beauty industry include:

  • Brand Loyalty: Brand loyalty is a significant factor in the beauty industry. Consumers often develop strong attachments to specific brands and are more likely to purchase products from those brands. This can be influenced by factors such as product quality, brand reputation, and the consumers’ emotional connection to a particular brand.
  • Price Sensitivity: Price is another significant factor in consumer purchase decisions in the beauty industry. Consumers may be willing to pay a premium for high-end luxury products but also look for affordable options that provide value for money. Price sensitivity can be influenced by factors such as the consumer’s budget, the product’s perceived value, and the market’s competition.
  • Product Quality: Product quality is a crucial factor in the beauty industry. Consumers expect high-quality products that deliver on their promises and provide the desired results. Quality can be influenced by factors such as the ingredients used, the manufacturing process, and the testing and certification of the product.
  • Social Influence: Social influence can also significantly influence consumer purchase decisions in the beauty industry. Consumers may be influenced by the recommendations of friends and family, as well as social media influencers and celebrities. This can be particularly important for younger generations, who are more likely to be influenced by social media.

By understanding these key purchase decision factors, brands can develop marketing strategies and products that meet the needs and preferences of their target audience. 

For example, if brand loyalty is a significant factor for the target audience, the marketing strategy could focus on building emotional connections and highlighting the brand’s reputation and heritage.

Consumer Segmentation

Consumer segmentation divides consumers into groups based on shared characteristics, such as demographics, psychographics, and behaviors. This approach allows brands to understand their target audience better and develop products and campaigns that meet their specific needs and preferences.

In the beauty, personal care, and cosmetics industries, consumer segmentation can be beneficial due to the wide range of products and needs of different consumers. Some examples of different consumer segments within the beauty industry include:

  • Age-Based Segmentation: This segmentation approach targets consumers based on their age groups, such as millennials, Gen Z, or Baby Boomers. Each age group may have different needs and preferences regarding beauty products, and marketers can tailor their products and campaigns to meet those specific needs. For example, younger consumers may be more interested in social media and influencer marketing, while older consumers may prefer traditional advertising.
  • Gender-Based Segmentation: While the beauty industry has traditionally targeted women, there has been a shift towards gender-neutral and inclusive marketing in recent years. Gender-based segmentation can help marketers develop products and campaigns that speak to the specific needs and preferences of different gender identities.
  • Skin Type-Based Segmentation: Consumers may have different skin types, such as dry, oily, or combination. Products can be tailored to meet the specific needs of each skin type, such as developing products for oily skin that focus on reducing shine and controlling oil production.

By understanding the needs and preferences of different consumer segments, brands can develop targeted products and campaigns that resonate with their target audience. For example, if a brand targets younger consumers, it could focus on developing products that are Instagrammable and easily shared on social media. Alternatively, if a brand targets consumers with specific skin concerns, it could develop products that address those concerns, such as anti-aging products for mature skin.

Consumer segmentation is a valuable tool for product marketing managers in the beauty industry to understand their target audience better and develop products and campaigns that meet their specific needs and preferences. By tailoring their marketing strategies and products to different consumer segments, product marketing managers can increase the effectiveness of their campaigns and better connect with their target audience.

Trends in the Beauty Industry

The beauty industry constantly evolves, and brands must stay current with the latest trends and developments. Here are some of the current trends in the beauty industry:

  • Clean Beauty: Clean beauty refers to products made with non-toxic, natural ingredients free from harmful chemicals. Consumers are becoming increasingly concerned about the ingredients in their beauty products and are looking for products that are better for their health and the environment. This trend is influencing consumer behavior and driving demand for clean beauty products.
  • Sustainability: Sustainability is becoming a top priority for consumers in the beauty industry. Consumers are looking for products that are produced in an environmentally-friendly way and packaged in sustainable materials. This trend drives innovation in product development and packaging and encourages companies to adopt more sustainable practices throughout their operations.
  • Inclusivity: Inclusivity is a growing trend in the beauty industry, with consumers looking for products that cater to a diverse range of skin tones, hair textures, and gender identities. This trend drives increased representation and diversity in advertising and product development and encourages companies to be more inclusive in their messaging and branding.

Brands can adapt to these trends by developing products and campaigns that align with consumer values and preferences. For example, a brand could create a line of clean beauty products that use natural ingredients and are free from harmful chemicals. They could also focus on sustainability by using eco-friendly packaging and reducing their carbon footprint. Additionally, they could incorporate inclusivity into their marketing strategies by featuring a diverse range of models in their advertising and offering products that cater to a diverse range of skin tones and hair textures.

Staying up-to-date with the latest trends in the beauty industry is crucial for product marketing managers to develop effective marketing strategies that resonate with their target audience. By adapting to trends such as clean beauty, sustainability, and inclusivity, product marketing managers can create products and campaigns that meet the needs and preferences of their consumers and drive demand for their brands.

Case Studies

To better understand effective product marketing campaigns in the beauty industry, analyzing successful campaigns and understanding why they effectively reached their target audience can be helpful. Here are some examples of successful product marketing campaigns in the beauty industry:

Dove Beauty Case Study

Dove is a brand synonymous with inclusivity and body positivity in the beauty industry. In 2004, Dove launched its “Real Beauty” campaign, which quickly became one of the most iconic marketing campaigns in the industry.

The “Real Beauty” campaign focused on celebrating the natural beauty of women of all ages, sizes, and skin tones. The campaign featured real women in their advertisements rather than professional models or actresses. The campaign also included a series of viral videos that challenged traditional beauty standards and encouraged women to embrace their natural beauty.

The campaign was a huge success, generating millions of views and sparking a conversation about beauty standards and representation in the media. Here are some reasons why the campaign was so effective:

  1. Catering to consumer values: The “Real Beauty” campaign was successful because it focused on consumer values, such as inclusivity, authenticity, and body positivity. The campaign resonated with consumers tired of seeing unrealistic beauty standards in the media and looking for brands that celebrated diversity and real beauty.
  2. Using social media to build a following: Dove leveraged social media to connect with its target audience and build a loyal following. The campaign included a website and social media channels that encouraged women to share their stories and photos, creating a community of women who were united by the campaign’s message.
  3. Differentiating from competitors: Dove differentiated itself by taking a bold stance on inclusivity and body positivity. The campaign challenged traditional beauty standards and celebrated the natural beauty of women of all ages, sizes, and skin tones. This differentiated Dove from other beauty brands focused on promoting unrealistic beauty standards.

The “Real Beauty” campaign was not without its critics, however. Some criticized the campaign for promoting Dove products as a solution to low self-esteem and body image issues. Others argued that Dove was still promoting a narrow definition of beauty, despite its message of inclusivity.

Despite these criticisms, the “Real Beauty” campaign remains an iconic example of effective marketing in the beauty industry. The campaign was successful because it resonated with consumers on a deeper level by focusing on values and emotions rather than just selling products. The campaign also had a lasting impact on the industry, sparking a conversation about beauty standards and representation that continues to this day.

Boots Case Study

Boots is a leading health and beauty retailer in the UK that offers a wide range of products, from skincare to makeup to fragrance. The brand has successfully differentiated itself by providing diverse products and catering to consumers of all ages and backgrounds. Here are some reasons why Boots has been successful in the beauty industry:

  1. Segmentation: One of the keys to Boots’ success is its segmentation strategy. The brand offers a wide range of products that cater to consumers of all ages and backgrounds, from teens to seniors and from luxury to budget. This segmentation strategy allows the brand to appeal to a broad range of consumers and meet the specific needs of each segment.
  2. Branding: Boots has built a strong brand reputation over the years by focusing on quality and affordability. The brand is known for its commitment to customer service and has won numerous awards for its loyalty program. This strong branding has helped to build a loyal following of consumers who trust the brand and continue to shop at Boots for their health and beauty needs.
  3. Product Development: Boots has also been successful in the beauty industry by focusing on product development. The brand offers diverse products, from branded products to exclusive partnerships with other brands. Boots also has a strong focus on innovation, with a dedicated team constantly researching and developing new products to meet the changing needs of consumers.
  4. Digital Strategy: Boots has also been successful in the beauty industry by leveraging its digital channels to connect with consumers. The brand has a strong online presence, a website offering a wide range of products and services, and an active social media presence. Boots also offers a range of digital tools and services, such as its “Virtual Beauty Counter,” which allows consumers to get personalized beauty advice online.

Overall, Boots’ success in the beauty industry can be attributed to its strong segmentation strategy, branding, product development, and digital strategy. By catering to a broad range of consumers and offering a diverse range of products, Boots has built a loyal following of customers who trust the brand and continue to shop at Boots for their health and beauty needs. Additionally, by leveraging digital channels to connect with consumers and offer innovative products and services, Boots has been able to stay ahead of the curve in the highly competitive beauty industry.

Lotus Herbals Case Study

Lotus Herbals is a popular Indian beauty brand specializing in using natural and herbal ingredients. The brand has successfully differentiated itself by focusing on affordable yet high-quality products accessible to a wide range of consumers. Here are some reasons why Lotus Herbals has been successful in the beauty industry:

  1. Natural and Herbal Ingredients: Lotus Herbals has differentiated itself from its competitors by focusing on natural and herbal ingredients. The brand strongly focuses on sustainability and uses environmentally-friendly practices in its production processes. This focus on natural and sustainable ingredients has helped the brand build a loyal following of consumers looking for safe and eco-friendly beauty products.
  2. Accessibility and Affordability: Another key to Lotus Herbals’ success has been its focus on accessibility and affordability. The brand offers a wide range of products at an affordable price point, making it accessible to a wide range of consumers. This has helped the brand to build a large customer base and compete with larger, more established brands in the Indian beauty market.
  3. Innovative Products: Lotus Herbals has also been successful in the beauty industry by focusing on innovation. The brand has a dedicated research and development team that is constantly researching and developing new products to meet the changing needs of consumers. This focus on innovation has helped the brand to stay ahead of the curve and differentiate itself from its competitors.
  4. Marketing Strategy: Lotus Herbals has also been successful in the beauty industry by leveraging its marketing channels to connect with consumers. The brand has a strong online presence, with a website that offers a wide range of products and services, as well as an active social media presence. The brand also partners with influencers and celebrities to promote its products and build brand awareness.

Overall, Lotus Herbals’ success in the beauty industry can be attributed to its focus on natural and sustainable ingredients, accessibility and affordability, innovative products, and marketing strategy. By catering to a wide range of consumers and offering affordable yet high-quality products, Lotus Herbals has built a loyal following of customers who trust the brand and continue to purchase its products. Additionally, by leveraging its marketing channels to connect with consumers and promote its products, Lotus Herbals has been able to stay ahead of the curve in the highly competitive Indian beauty market.

SK-II Case Study

SK-II is a luxury skincare brand known for its innovative and high-quality products. The brand has successfully differentiated itself by using natural ingredients, such as Pitera, in its products. Here are some reasons why SK-II has been successful in the beauty industry:

  1. Product Innovation: One of the keys to SK-II’s success has been its focus on product innovation. The brand is known for using Pitera, a natural ingredient derived from yeast fermentation, in its products. This innovative ingredient has become synonymous with the brand and has helped to differentiate SK-II from its competitors.
  2. Luxury Branding: SK-II has also been successful in the beauty industry by leveraging its luxury branding to connect with consumers. The brand has a strong focus on quality and premium products. It has successfully marketed itself as a high-end brand offering its customers a luxurious and exclusive experience.
  3. Digital Marketing: SK-II has also been successful in the beauty industry by leveraging digital marketing channels to connect with consumers. The brand has a strong online presence, a website offering a wide range of products and services, and an active social media presence. SK-II also partners with influencers and celebrities to promote its products and build brand awareness.
  4. Emotional Connection: SK-II has also been successful in the beauty industry by building an emotional connection with its customers. The brand strongly focuses on empowering women and has launched several campaigns that focus on issues related to women’s empowerment, such as its #ChangeDestiny campaign. This emotional connection has helped to build a loyal following of consumers who feel strongly connected to the brand.

Overall, SK-II’s success in the beauty industry can be attributed to its focus on product innovation, luxury branding, digital marketing, and emotional connection. By leveraging its unique ingredient, Pitera, and focusing on luxury branding and premium products, SK-II has been able to differentiate itself from its competitors and build a loyal following of consumers. Additionally, by leveraging digital marketing channels and building an emotional connection with its customers, SK-II has stayed ahead of the curve in the highly competitive beauty industry.

In conclusion, understanding consumer behavior is essential for product marketing managers in the beauty industry. By understanding the demographics and psychographics of their target audience, brands can create more effective marketing strategies and better tailor their products to meet the needs of their customers.

Additionally, by understanding consumer behavior models, purchase decision factors, and consumer segmentation, companies can better target their audience and create more effective marketing campaigns.

Lastly, by staying up-to-date on current trends in the beauty industry and analyzing successful case studies, brands can adapt their strategies to meet the changing needs and preferences of the market.

Key Takeaways:

  • Understand the demographics and psychographics of your target audience
  • Use consumer behavior models to understand your audience better
  • Identify key purchase decision factors that influence consumer behavior in the beauty industry
  • Use consumer segmentation to target your audience better
  • Stay up-to-date on current trends in the beauty industry
  • Analyze successful case studies to adapt your marketing strategies and product offerings.

Want to learn more about the latest beauty, cosmetics, and personal care trends? Download our report About Face here

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The year is 2033, and the field of medicine has changed significantly. Wearable med-tech devices are everywhere, providing real-time monitoring of patient health and enabling healthcare providers to detect potential issues before they become serious. Innovative technologies such as artificial intelligence and robotics are used to improve diagnosis, treatment, and patient outcomes. Welcome to the future of med-tech.

According to a recent report, the global medical technology market is expected to grow at a compound annual growth rate of 5.6% from 2021 to 2028, driven by the increasing prevalence of chronic diseases, technological advancements, and rising healthcare expenditures. As the med-tech industry continues to evolve, so do the challenges and opportunities for growth.

The Current State of the Med-Tech Industry

The med-tech industry has been undergoing a rapid transformation over the last few years, driven by technological advancements, changing patient needs, and increasing healthcare expenditures. 

One of the major trends in the med-tech industry is the increasing adoption of digital health solutions. With the rise of smartphones, wearables, and other connected devices, patients are more engaged in their health than ever before. This has created a growing demand for digital health solutions that allow patients to monitor their health, track their progress, and communicate with their healthcare providers.

Another trend in the med-tech industry is the increasing focus on patient outcomes. As healthcare shifts from a volume-based to a value-based model, providers increasingly seek solutions that can improve patient outcomes and reduce costs. This has created a growing demand for technologies that can improve diagnosis, enhance treatment options, and streamline operations.

Despite the many opportunities in the med-tech industry, there are also significant challenges that need addressing. One of the biggest challenges is regulatory compliance. Med-tech companies must comply with complex regulations, including the FDA’s Quality System Regulation and the European Medical Devices Regulation. This can make it difficult for companies to bring innovative products to market quickly and cost-effectively.

Another challenge in the med-tech industry is cybersecurity. With the increasing use of connected devices and digital health solutions, there is a growing risk of cyberattacks that can compromise patient data and disrupt operations. This has created a need for med-tech companies to invest in cybersecurity solutions that can protect their systems and data.

Despite these challenges, the med-tech industry is poised for continued growth in the years ahead. According to a report by Grand View Research, the global medical device market will reach $612.7 billion by 2025, driven by factors such as increasing healthcare expenditures, aging populations, and the growing prevalence of chronic diseases.

Med-tech Timeline

The term “med-tech” is believed to have been coined in the late 1990s, around the time when the med-tech industry was undergoing rapid transformation due to the rise of digital health solutions and other technological advancements. However, the roots of the med-tech industry can be traced back centuries, with the development of various medical devices and technologies that have revolutionized healthcare over the years.

  • 1895: The X-ray is invented, revolutionizing medical imaging and diagnosis.
  • 1928: The discovery of penicillin marks the beginning of the antibiotic era.
  • 1952: The first artificial heart valve is developed.
  • 1960: The development of implantable pacemakers leads to significant advances in the treatment of cardiac arrhythmias.
  • 1979: The first MRI machine is developed, providing non-invasive imaging of the body’s soft tissues.
  • 1980s: The development of laparoscopic surgery allows for minimally invasive surgery, reducing patient recovery times and complications.
  • 1998: The first wearable defibrillator is approved by the FDA for use outside of hospitals.
  • 2001: The first continuous glucose monitor is introduced for at-home monitoring of blood sugar levels in patients with diabetes.
  • 2004: The first remote patient monitoring systems were introduced, allowing patients to be monitored at home.
  • 2006: The first wireless fetal monitor is introduced, allowing expectant mothers to monitor their baby’s heartbeat at home.
  • 2010: The rise of digital health solutions and mobile health technologies leads to a new era of patient engagement and personalized healthcare. Wearable fitness trackers and smartwatches have gained popularity, allowing users to track their fitness and monitor their health data, including heart rate and sleep patterns.
  • 2014: The first at-home genetic testing kits are introduced, allowing consumers to analyze their DNA for ancestry and health information.
  • 2016: The FDA approves the first at-home artificial pancreas system for patients with type 1 diabetes, allowing for automated insulin delivery.
  • 2017: The FDA approves the first digital pill, which contains a sensor that can track when the medication is ingested.
  • 2020: During the COVID-19 pandemic, telemedicine and remote patient monitoring technologies increase dramatically, as patients seek to avoid in-person visits to healthcare providers.

The Role of Technology in Driving Growth

In recent years, technology has played a significant role in driving growth in the med-tech industry. From artificial intelligence (AI) to the internet of things (IoT), a wide range of innovative technologies are transforming the way healthcare is delivered. 

One of the most promising technologies driving growth in the med-tech industry is artificial intelligence (AI). With its ability to analyze vast amounts of data and identify patterns, AI is well-suited for a range of applications in healthcare. For example, AI-powered diagnostic tools can help healthcare providers to more accurately diagnose and treat a range of conditions, while AI-powered predictive analytics can help identify patients who are at risk of developing certain conditions before symptoms appear. AI is also being used to develop more personalized patient treatment plans based on their unique genetic and environmental factors.

Another technology driving growth in the med-tech industry is the internet of things (IoT). With the proliferation of connected devices, there is a growing opportunity to leverage the IoT to improve patient outcomes and reduce costs. For example, IoT-enabled medical devices can monitor patient health in real-time and alert healthcare providers if there are any concerning changes. This can help to prevent hospital readmissions and other costly complications. The IoT is also being used to optimize hospital operations by using real-time data to manage patient flow, reduce wait times, and improve patient satisfaction.

Other innovative technologies driving growth in the med-tech industry include machine learning, blockchain, and virtual reality. Machine learning, like AI, analyzes large data sets and improves healthcare outcomes. Meanwhile, blockchain is used to create more secure and efficient healthcare data exchanges, while virtual reality trains healthcare providers and provides patients with immersive therapy experiences.

As the med-tech industry continues to evolve, we will likely see even more exciting developments in the years ahead.

Examples of Innovative Med-tech products

Medtronic’s Micra Transcatheter Pacing System

This tiny pacemaker implanted directly into the heart eliminates the need for leads or a surgical pocket under the skin. The device is only 1/10th the size of a traditional pacemaker and has a battery life of up to 14 years. The Micra system has been shown to have a lower risk of complications compared to traditional pacemakers and has been used to treat over 100,000 patients worldwide.

Philips’ Lumify Ultrasound System

This portable ultrasound system can be used with a smartphone or tablet. The small and lightweight device makes it easy to transport to remote or rural areas. The Lumify system provides ultrasound imaging in emergency rooms, critical care units, and in the field during disaster response efforts.

Prosthetics by Open Bionics

This is a UK-based company that develops prosthetic limbs using 3D printing technology. Open Bionics’ prosthetics are lightweight, affordable, and can be customized to fit each individual patient. The company has developed a range of prosthetic limbs for adults and children, including arms and hands, and has received several awards for its innovative products.

Best Practices for Leveraging Innovative Technology

Leveraging innovative technology is essential for driving growth in the med-tech industry. However, it’s important to approach the selection and implementation of technology solutions strategically to ensure they are effective and aligned with business objectives. 

The first step in leveraging innovative technology is to assess the needs of your target audience. This requires a deep understanding of the challenges faced by healthcare providers and patients and the opportunities for improving patient outcomes and reducing costs. For example, suppose you are developing an AI-powered diagnostic tool. In that case, it’s essential to understand the specific diagnostic challenges healthcare providers face and ensure the device is user-friendly and easy to integrate into existing workflows.

Another important consideration is identifying key performance indicators (KPIs) for measuring the success of technology solutions. This requires a clear understanding of the business objectives that are driving the adoption of technology. For example, if your objective is to reduce hospital readmissions, your KPIs might include the number of readmissions per month or the average length of patient stay.

Building a solid technology infrastructure is also critical for leveraging innovative technology. This requires investing in the right hardware and software and developing a robust data management system that can support the collection, analysis, and storage of large amounts of data. It’s also important to have a team of experienced technology professionals who can manage the implementation and maintenance of technology solutions.

To ensure the effective implementation of innovative technology, it’s important to have a strong focus on user adoption. This requires engaging with healthcare providers and patients to understand their needs and preferences and designing technology solutions that are intuitive and user-friendly. This approach has been shown to be effective in increasing adoption rates and improving outcomes. For example, a study published in the Journal of the American Medical Association found that an AI-powered diagnostic tool was more effective when healthcare providers were engaged in the development process and provided with training and support.

Case Studies from Around the World

Innovative technology is transforming the med-tech industry worldwide, with companies using advanced solutions to improve patient outcomes, streamline operations, and drive revenue growth. In this section, we will showcase some case studies from around the world that illustrate how innovative technology is driving growth in the med-tech industry.

United Kingdom

Sensyne Health is a UK-based healthcare company founded in 2018 by Lord Paul Drayson. The company uses artificial intelligence (AI) to develop innovative healthcare solutions that improve patient outcomes and reduce costs. Sensyne’s clinical AI technology is used to create predictive algorithms to help healthcare providers identify patients at risk of developing certain conditions. By analyzing patient data in real-time, Sensyne’s technology can help clinicians to identify patients who may benefit from early intervention, ultimately leading to better health outcomes and reduced costs.

Sensyne has partnered with several UK-based hospitals and research organizations to develop and test its solutions. One notable partnership is with the University of Oxford’s Big Data Institute. Sensyne is working with researchers to create predictive models for conditions such as heart failure and sepsis. Using AI to analyze large datasets, Sensyne, and its partners can develop highly accurate predictive models to help clinicians make better decisions and improve patient outcomes.

In addition to its partnerships, Sensyne has also reported impressive financial results. In 2020, the company reported a 43% increase in revenue, driven by strong demand for its technology solutions. Sensyne has also secured several large contracts with UK-based healthcare providers, including a partnership with Chelsea and Westminster Hospital NHS Foundation Trust to develop a digital early warning system for patients with COVID-19. 

By developing predictive algorithms and using AI to analyze patient data, Sensyne is helping improve patient outcomes and reduce costs, securing impressive financial results, and establishing partnerships with leading healthcare providers and research organizations.

Europe

Ada Health is a Berlin-based company that has developed a mobile app that uses AI to help patients diagnose their symptoms. The app asks users questions to determine the possible causes of their symptoms and provides personalized health recommendations. Ada Health partners with several European health systems, including the UK’s National Health Service (NHS). It is helping to reduce the burden on healthcare providers by empowering patients to take a more active role in their healthcare.

USA

Atrius Health is a US-based healthcare organization that is at the forefront of using virtual care technology to improve patient outcomes and reduce costs. The organization was founded in 2004 and is headquartered in Newton, Massachusetts. Atrius Health provides a wide range of healthcare services to patients in the New England area, including primary care, specialty care, and behavioral health services.

By leveraging virtual care technology, Atrius Health can connect patients with healthcare providers remotely, reducing the need for in-person visits and improving patient access to care. In recent years, the organization has reported significant improvements in patient satisfaction, clinical outcomes, and cost savings.

One example of Atrius Health’s success is its implementation of virtual group visits, which allow patients with similar conditions to receive care together remotely. By connecting patients with each other and with healthcare providers, virtual group visits have been shown to improve patient engagement and satisfaction while also reducing the need for in-person visits and improving health outcomes. According to Atrius Health, patients who participated in virtual group visits for diabetes management had a 5.9% reduction in HbA1c levels, compared to a 2.4% reduction for patients who received usual care.

Atrius Health has also reported significant cost savings due to its virtual care initiatives. According to a recent report, the organization saved more than $15 million in 2019 using virtual care technology. In addition to cost savings, virtual care has allowed Atrius Health to expand its reach and provide care to patients in rural and underserved areas.

By implementing innovative solutions like virtual group visits and focusing on patient engagement, Atrius Health has established itself as a leader in the med-tech industry, with a strong track record of success and a commitment to improving patient outcomes.

India

Practo is an Indian healthcare company that has developed a mobile app that allows patients to book appointments with healthcare providers, access their medical records, and communicate with their healthcare team. The app allows patients to save time and improve their access to care. Practo has also developed a telemedicine solution that enables patients to consult with healthcare providers remotely, improving access to care for patients in rural areas.

Japan

Sony is a Japanese electronics company expanding its presence in the med-tech industry. One of Sony’s recent developments is a wearable device that can monitor vital signs, such as heart rate and blood pressure. The device uses advanced sensor technology to provide real-time patient health monitoring, allowing healthcare providers to detect potential issues before they become serious.

In 2018, Sony announced the release of its wearable device, the Wena Wrist Pro. The device has sensors that can detect heart rate, blood pressure, and other vital signs. It also has an NFC chip, allowing users to make payments and access public transportation. The device can connect to a smartphone app, allowing users to monitor their health data and share it with healthcare providers.

The Wena Wrist Pro has been used in several hospitals in Japan to improve patient outcomes and reduce costs. For example, in 2019, Sony partnered with Osaka University Hospital to conduct a pilot study using the Wena Wrist Pro to monitor patients with congestive heart failure. The study found that the device was effective in detecting changes in patient health, allowing healthcare providers to intervene before serious complications occurred.

Toshimoto Mitomo, Deputy Senior General Manager of Sony’s AI Robotics Business Group, says, “We see healthcare as a very important business domain for Sony. We are committed to developing technology that can help people lead healthier, more fulfilling lives.” In addition to the Wena Wrist Pro, Sony is also developing other healthcare technologies, such as a biometric sensor that can measure stress levels and a robotic pet that can provide companionship for elderly people.

Overall, Sony’s development of the Wena Wrist Pro is an example of how wearable technology can be used to improve patient outcomes and reduce costs in the med-tech industry. With its advanced sensor technology and smartphone connectivity, the Wena Wrist Pro has the potential to revolutionize the way patients and healthcare providers monitor and manage health.

China Ping An Good Doctor is a Chinese healthcare company that has developed a telemedicine platform that connects patients with healthcare providers remotely. The platform uses AI to provide diagnosis and treatment recommendations and has been used by millions of patients across China and Southeast Asia. The company has reported significant growth in recent years, driven by increasing demand for telemedicine solutions in the region.

Singapore 

Holmusk is a Singapore-based healthcare company at the forefront of using innovative technology to improve mental health services. The company was founded in 2015 by Nawal Roy and has since established itself as a leader in the med-tech industry, focusing on using AI to provide personalized therapy for patients.

Holmusk’s mental health platform, “Big White Wall,” uses AI to analyze patient data and provide customized treatment plans. The platform can identify potential risk factors for mental health issues, such as depression and anxiety, and provide early intervention to prevent serious complications. The platform also includes a community feature, allowing patients to connect and share experiences.

Holmusk has partnered with several healthcare providers in Singapore to improve access to mental health services. One notable partnership is with National University Hospital (NUH), where Holmusk provides its mental health platform to patients with chronic illnesses. According to NUH, the partnership has resulted in a 30% reduction in hospital admissions and a 60% reduction in emergency department visits among patients with chronic illnesses.

In addition to its partnerships in Singapore, Holmusk has expanded to other countries in the region, such as Malaysia, Indonesia, and the Philippines. The company reported impressive growth in recent years, with a 50% increase in revenue in 2020 and a valuation of over $100 million.

According to Nawal Roy, Founder and CEO of Holmusk, “Our mission is to improve mental health outcomes for millions of people around the world. By using AI to provide personalized therapy, we are helping to address the global mental health crisis and improve access to care for those who need it most.”

Canada 

MindBeacon is a Canadian mental health company that has developed an online platform that provides personalized therapy for patients with mild to moderate mental health concerns. The platform uses AI to match patients with licensed therapists and provides access to interactive exercises and guided meditations. MindBeacon has partnered with several Canadian employers and health plans to improve employee access to mental health services.

Thailand

OmiseGO is a Thai fintech company that has developed a blockchain-based payment system for healthcare transactions. The platform allows healthcare providers to securely and efficiently manage payment and insurance transactions, reducing administrative burdens and improving patient experiences. OmiseGO has partnered with several Thai health systems to implement its payment system.

Indonesia

Halodoc is an Indonesian healthcare company that has developed a mobile app allowing patients to consult remotely with healthcare providers. The app provides access to various healthcare services, including telemedicine, pharmacy delivery, and lab tests. Halodoc has partnered with several Indonesian health systems to improve access to care for patients in remote areas.

Vietnam

eDoctor is a Vietnamese healthcare company that has developed a telemedicine platform allowing patients to consult remotely with healthcare providers. The platform provides access to various healthcare services, including online consultations, prescription delivery, and lab tests. eDoctor has partnered with several Vietnamese health systems to improve access to care for patients in remote areas.

Philippines

HealthNow is a Philippine healthcare company that has developed a telemedicine platform that connects patients with healthcare providers remotely. The platform provides access to various healthcare services, including virtual consultations, e-prescriptions, and lab tests. HealthNow has partnered with several Philippine health systems to improve access to care for patients across the country.

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What does the future hold for med-tech?

Futurists predict that technological innovations will significantly impact the med-tech industry in the next decade, with several advancements expected to transform the way healthcare is delivered. Here are a few predictions:

  • Increased Use of Artificial Intelligence (AI): AI will play an increasingly important role in healthcare in the next decade, with the potential to improve diagnosis, treatment, and patient outcomes. AI-powered tools can analyze large amounts of data quickly and accurately, allowing healthcare providers to make more informed decisions.
  • More Personalized Medicine: Advances in genomics, wearables, and other technologies are expected to enable more personalized medicine. Healthcare providers can tailor treatments to each individual’s unique needs by analyzing a patient’s genetic makeup and other factors.
  • Greater Use of Robotics: Robotics will play an increasingly important role in healthcare, with the potential to improve surgical outcomes, assist with rehabilitation, and provide remote care. While robots are unlikely to replace doctors entirely, they will assist with certain tasks, such as surgery, and provide support for patients in areas such as physical therapy.
  • Telemedicine and Remote Care: The COVID-19 pandemic has accelerated the trend toward telemedicine and remote care, which will continue to grow and evolve. Telemedicine and remote care enable patients to access healthcare services from anywhere, reducing the need for in-person visits and improving access to care, especially in rural or underserved areas.

The med-tech industry is undergoing a period of rapid transformation driven by the power of innovative technology. From AI and machine learning to wearables and telemedicine, technology solutions are improving patient outcomes, streamlining operations, and driving revenue growth. 

As the med-tech industry evolves, companies must stay up-to-date with the latest trends and best practices. By assessing the needs of their target audience, identifying key performance indicators, building a solid technology infrastructure, and focusing on user adoption, brands in the med-tech space can position themselves for success in the years ahead.

Want more insight into the world of med-tech? Download our comprehensive trend report “Feeling Good: Powering the Next Gen of Fitness and MedTech” here.

According to a report by MarketsandMarkets, the wearable technology market is expected to reach $54 billion by 2023. Understanding consumer behavior related to wearable technology is more important than ever. Analyzing consumer behavior can provide valuable insights for product marketing managers and research executives, enabling them to design products that meet different consumer segments’ needs and preferences and develop effective marketing and pricing strategies. 

This blog will examine the various facets of consumer behavior related to wearable technology, including purchasing habits, usage patterns, and perceptions of the technology. Through this analysis, we can better understand the needs and preferences of different consumer segments and how companies can cater to these needs to stay competitive in this growing industry.

Wearable technology refers to electronic devices worn on the body, typically as accessories or clothing items. These devices are designed to track or collect data related to the wearer’s health, fitness, and daily activities, among other things. Examples of wearable technology products include smartwatches, fitness trackers, and augmented reality glasses.

The benefits of wearable technology from a consumer perspective are numerous. Wearable devices can help individuals track their fitness goals, monitor their health metrics, and stay connected to their digital lives on the go. A recent study by Grand View Research estimated that the global wearable technology market size is expected to reach $104.39 billion by 2027, with the health and fitness segment being the largest market.

However, there are also drawbacks to wearable technology that should be considered. One concern is the potential invasion of privacy, as these devices collect and transmit data about the wearer’s personal life. Another drawback is the potential for distraction and over-reliance on technology, as wearers may become too focused on their devices instead of their surroundings.

As wearable technology continues to evolve, so do its benefits and drawbacks. The late fashion designer Karl Lagerfeld once said, “Technology has to be invisible. Wearable technology must be beautiful.” This sentiment reflects the desire of consumers for devices that not only function well but also look good and feel comfortable to wear.

Despite the potential drawbacks, wearable technology is poised to continue its growth in popularity as more consumers seek to integrate technology into their daily lives. As the benefits of these devices become more widely recognized and as technology continues to advance, wearable technology is likely to play an increasingly important role in the future of consumer technology.

Wearable Technology Timeline

  • 1975: The first wearable computer, the “Wearable Computer for Computerized Conference Control,” is created by Edward Thorp and Claude Shannon.
  • 1994: Seiko releases the first smartwatch, called the Seiko MessageWatch.
  • 1999: The first Bluetooth headset, developed by Ericsson, is released.
  • 2008: Fitbit releases its first fitness tracker, the Fitbit Classic.
  • 2010: The first generation of the Apple Watch is released, marking Apple’s entry into the wearable technology market.
  • 2012: Google releases Google Glass, a pair of smart glasses that use augmented reality technology.
  • 2014: The first Android Wear smartwatches, including the LG G Watch and the Samsung Gear Live, are released.
  • 2015: The Apple Watch Series 1 is released, which includes features such as heart rate monitoring and fitness tracking.
  • 2016: Pokemon Go, an augmented reality mobile game, becomes a worldwide sensation and brings attention to the potential of augmented reality technology in wearable devices.
  • 2017: Fitbit acquires Pebble, a popular smartwatch brand.
  • 2018: Apple releases the Apple Watch Series 4, which includes advanced health features such as an ECG monitor and fall detection.
  • 2019: The global wearable technology market is valued at $32.63 billion, according to a report by Grand View Research.
  • 2020: The COVID-19 pandemic increases demand for wearable technology that can monitor health metrics, such as temperature and oxygen levels.
  • 2021: Wearable devices continue to gain popularity, with features such as sleep tracking, stress monitoring, and more advanced fitness tracking capabilities.

Wearable Tech Consumer Purchasing Habits 

Consumer purchasing habits play a crucial role in the wearable technology industry, directly influencing product design, marketing, and pricing strategies. 

Here are some of the main factors that influence consumers’ decisions to purchase wearable technology:

  • Health and Fitness Goals: Consumers who prioritize health and fitness are more likely to purchase wearable technology devices, such as fitness trackers and smartwatches, that can help them monitor their activity levels, sleep patterns, and overall health metrics. According to a 2021 survey by Statista, 53% of wearable technology users in the United States use their devices to track fitness and health.
  • Fashion and Style: Wearable technology designed to be stylish and aesthetically pleasing can appeal to fashion-conscious consumers. For example, luxury watch brands such as TAG Heuer and Fossil have introduced smartwatches that combine fashion and technology to cater to this market.
  • Compatibility with Other Devices: Consumers who already own other devices, such as smartphones or laptops, may be more likely to purchase wearable technology compatible with their existing technology. This can include devices that use the same operating system, such as Apple’s ecosystem of products, or devices that integrate with popular apps and services.
  • Price: The cost of wearable technology devices is important for many consumers. According to a 2021 report by PwC, price was the most important consideration for 60% of respondents considering purchasing a wearable device.

Consumer purchasing habits also vary depending on the demographic and psychographic characteristics of different consumer segments. For example, younger consumers may be more likely to purchase wearable technology as they are more likely to be early adopters of new technology. Similarly, consumers with higher incomes may be more likely to buy luxury wearable devices, while consumers who prioritize environmental sustainability may be more likely to purchase eco-friendly wearable technology.

According to a 2020 report by IDC, the top five wearable technology vendors in market share are Apple, Xiaomi, Samsung, Huawei, and Fitbit. These companies cater to different market segments and offer a range of products at different price points. For example, Apple’s high-end smartwatches and earbuds appeal to consumers who prioritize technology and style, while Fitbit’s fitness trackers cater to consumers who prioritize health and fitness.

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Wearable Technology Usage Patterns

Wearable technology has a wide range of applications and features that make it appealing to consumers. Here are some of the ways that consumers use wearable technology and the features and functionalities that are most important to them:

  • Fitness Tracking: Wearable technology is popular for fitness tracking, with features like step tracking, heart rate monitoring, and calorie tracking. According to a 2021 survey by Statista, 57% of wearable technology users in the United States use their devices for fitness and exercise.
  • Health Monitoring: Wearable technology can also be used for health monitoring, with features like blood pressure monitoring, sleep tracking, and medication reminders. This is especially important for aging populations or individuals with chronic health conditions.
  • Communication and Connectivity: Wearable technology can be used for communication and connectivity, with features like phone calls, messaging, and social media integration. This is particularly useful for busy professionals or individuals always on the go.
  • Entertainment and Gaming: Wearable technology can be used for entertainment and gaming, with features like music streaming, video playback, and augmented reality games. This is popular among younger consumers who prioritize entertainment and technology.
  • Workplace Applications: Wearable technology can be used in workplace applications, such as industrial settings where workers need to be hands-free or in retail environments where workers need to access inventory and customer data quickly.

The features and functionalities that are most important to consumers vary depending on the device’s intended use. For fitness trackers and smartwatches, consumers prioritize features such as battery life, accuracy, and ease of use. For workplace wearables, consumers prioritize durability, connectivity, and compatibility with existing systems.

Usage patterns also vary among different consumer segments. For example, according to a 2021 survey by YouGov, men are more likely than women to use wearable technology for fitness and exercise purposes, while women are more likely to use wearables for health monitoring. Similarly, younger consumers are more likely to use wearable technology for entertainment and gaming, while older consumers prioritize health and fitness tracking.

Brands that have successfully tapped into different usage patterns and consumer segments include Fitbit, Apple, and Samsung. Fitbit’s range of fitness trackers and smartwatches cater to consumers who prioritize health and fitness, while Apple’s high-end smartwatches appeal to consumers who prioritize technology and style. Samsung offers a range of smartwatches with features such as cellular connectivity and long battery life, which appeal to consumers who prioritize connectivity and convenience.

Overall, wearable technology is a versatile and multi-functional technology that appeals to a wide range of consumers. Understanding the different usage patterns and preferences of different consumer segments will be critical for companies in this industry to continue innovating and meeting the evolving needs of consumers.

Perceptions of Wearable Technology

Consumer perceptions of wearable technology play a significant role in the success of these devices in the market. Here are some of the attitudes and beliefs that consumers may have about wearable technology:

  • Convenience: Many consumers perceive wearable technology as convenient, allowing them to access information and stay connected without pulling out their smartphones.
  • Health and Fitness Benefits: Consumers who prioritize health and fitness perceive wearable technology as a tool for improving their overall health and fitness goals by tracking their activity levels, sleep patterns, and other health metrics.
  • Fashion and Style: Consumers who prioritize fashion and style may perceive wearable technology as an accessory that complements their personal style and reflects their personality.
  • Privacy and Security Concerns: Some consumers are concerned about wearable technology’s privacy and security implications, as these devices can collect and transmit sensitive data about the wearer’s personal life.
  • Stigma and Social Acceptance: Some consumers may perceive wearable technology as stigmatized or socially unacceptable, especially if the devices are bulky, unattractive, or otherwise conspicuous.
  • Limited Battery Life: Many wearable devices have limited battery life, which can be a source of frustration for consumers who need to use them throughout the day.

Factors influencing consumers’ perceptions of wearable technology include product design, marketing messaging, and media coverage. For example, Apple’s sleek and stylish smartwatches have helped to rebrand wearable technology as a fashion accessory. In contrast, Fitbit’s focus on health and fitness has helped to position wearable technology as a tool for self-improvement.

In terms of concerns and misconceptions, wearable technology companies have worked to address issues such as privacy and security by implementing data encryption and user consent measures. For example, Fitbit’s privacy policy states that user data is encrypted and anonymous and that users can choose whether or not to share their data with third-party apps and services.

Media coverage and public perception also play a role in shaping consumer attitudes toward wearable technology. For example, the Google Glass project was ultimately discontinued in 2015 due to negative media coverage and privacy concerns. However, other products, such as smartwatches and fitness trackers, have continued to gain popularity as consumers become more comfortable with the technology and its benefits.

Overall, understanding consumer attitudes and perceptions towards wearable technology is crucial for companies in this industry to design products that meet consumers’ needs and preferences and address concerns and misconceptions that may impact adoption rates. As wearable technology continues to evolve and become more integrated into daily life, consumer perceptions and attitudes will be key factors in its success.

Understanding consumer behavior related to wearable technology can provide valuable insights for product marketing managers and marketing executives. Here are some recommendations and implications for these professionals based on the analysis of consumer behavior:

  • Design products that meet the needs and preferences of different consumer segments: Consumer behavior analysis can help brands identify the segments of consumers likely to purchase wearable technology, as well as the features and functionalities that are most important to them. This information can be used to design products that meet these segments’ specific needs and preferences.
  • Address privacy and security concerns: Privacy and security concerns are among consumers’ top concerns about wearable technology. Brands should address these concerns, such as implementing data encryption and user consent measures and communicating these measures clearly to consumers.
  • Emphasize the benefits of wearable technology: Consumers are more likely to purchase when they understand its benefits. Brands should emphasize the convenience, health, and fitness benefits, and other features that make wearable technology a valuable addition to consumers’ lives.
  • Innovate with new features and functionality: As wearable technology continues to evolve, brands should look for new features and functionality that can enhance the value and appeal of these devices. For example, advances in biometric technology and augmented reality has the potential to open up new possibilities for wearable technology.
  • Use pricing strategies that cater to different consumer segments: Consumer behavior analysis can also help product marketing managers and executives to identify the different pricing strategies that are most effective for different consumer segments. For example, luxury smartwatch brands may be able to charge higher prices for their products, while budget fitness tracker brands may need to compete on price to attract price-sensitive consumers.

According to a report by MarketsandMarkets, the wearable technology market is expected to grow at a CAGR of 15.5% from 2021 to 2026, highlighting the importance of developing effective strategies to stay competitive in this growing industry. By considering these recommendations, companies can develop effective product design, marketing, and pricing strategies that cater to the needs and preferences of different consumer segments. 

As technology continues to evolve, so will the world of wearable technology. As Steve Mann, a pioneer in wearable computing, once said: “Wearable computing is the next stage in the digital revolution. Combining technology with fashion can make our devices more personalized and integrated into our lives.”

Understanding consumer behavior towards wearable technology is crucial for brands  to design products that meet the needs and preferences of different consumer segments and to develop effective marketing and pricing strategies. 

As the wearable technology market continues to grow, companies in this industry will need to stay vigilant and continue to innovate to meet the evolving needs of consumers.

By analyzing consumer behavior, addressing concerns and misconceptions, and emphasizing the benefits of wearable technology, companies can position themselves for success in this dynamic and rapidly-growing industry. As wearable technology becomes more integrated into daily life, the potential for innovation and growth in this field is limitless.

Learn more about the wearable technology industry in our comprehensive trend report Feeling Good: Powering the Next Gen of Fitness and Medtech. Download here.

Customer journey mapping is the process of creating a visual representation of the steps and touchpoints a customer goes through in their interaction with a company. It aims to understand the customer’s needs, emotions, and motivations at each stage of the journey. 

The importance of customer journey mapping lies in its ability to improve the customer experience by identifying pain points and opportunities for optimization. By mapping the journey, companies can comprehensively understand the customer’s perspective and use this information to enhance the overall experience, increase customer satisfaction, and drive loyalty. 

Customer journey mapping helps companies to align their operations and messaging with customer expectations, leading to more efficient and effective communication and improved customer experiences.

“The customer journey map is a tool to help you understand what your customers are thinking and feeling as they engage with your company.” – Jeannie Walters, customer experience consultant and author of “The Customer Journey: Mapping the Future of Your Brand.”

The concept of customer journey mapping has its roots in the fields of marketing and customer experience design. It is a relatively recent development, with the first recorded use of the term dating back to the early 2000s. However, the practice of mapping customer interactions with a company can be traced back to the early days of market research and customer satisfaction studies.

Other names, including customer experience mapping, customer journey design, and customer journey visualization, sometimes refer to customer journey mapping. 

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Regardless of the name, the underlying process and goals remain the same: to create a comprehensive understanding of the customer’s experiences and use this information to improve the customer experience.

It has become an increasingly important tool for companies looking to improve the customer experience and is widely recognized as a valuable method for understanding and optimizing customer interactions.

Signs a Brand Would Benefit from Customer Journey Mapping

  1. Decreased customer satisfaction: If a brand is experiencing a decrease in customer satisfaction or loyalty, it may be a sign that the customer journey needs to be reevaluated.
  2. Increased customer complaints: An increase in customer complaints can indicate pain points in the customer journey that need to be addressed.
  3. Decreased conversion rates: A decrease in conversion rates can indicate issues in the customer journey that prevent customers from making a purchase.
  4. Increased churn: An increase in customer churn can indicate that the customer experience is not meeting expectations and needs to be improved.

Touchpoints and Pain points

The customer journey refers to a customer’s experiences with a company, from initial brand awareness to post-purchase evaluation. Understanding the customer journey is critical for companies looking to improve the customer experience and increase customer satisfaction.

The key components of the customer journey include touchpoints and pain points. Touchpoints are the moments of interaction between a customer and a company, such as a visit to a website, a phone call, or an in-store purchase. 

Pain points are the parts of the customer journey that cause frustration or dissatisfaction. These can include long wait times, confusing navigation on a website, or poor product quality.

Understanding touchpoints and pain points are essential to map the customer journey effectively. Touchpoints provide insights into the customer’s motivations and needs at each stage of the journey, while pain points indicate areas for improvement. By identifying and addressing pain points, companies can create a more seamless and enjoyable customer experience.

Here’s a fictional example of a customer journey map for a company that sells luxury skincare products:

Industry: Luxury Skincare Marketing Personas:

  • Persona 1: “The Health-Conscious Beauty Enthusiast” – A young professional who values natural and organic products and prioritizes self-care.
  • Persona 2: “The Anti-Aging Advocate” – A mature individual who is looking for skincare products that address aging and wrinkling.

The Customer Journey:

  1. Awareness: The customer becomes aware of the company through social media, influencer partnerships, and recommendations from friends.
  2. Consideration: The customer starts researching the company’s products and reviews online. They may also attend a skincare event or visit a store to try the products.
  3. Purchase: The customer purchases online or in-store and receives personalized recommendations based on their skin type and concerns.
  4. Delivery: The customer receives the products and begins using them, receiving regular follow-up emails and phone calls from the company to ensure satisfaction.
  5. Loyalty: The customer continues using the products and becomes loyal, referring friends and family to the company.
  6. Advocacy: The customer may become a brand advocate, sharing positive reviews and experiences online and attending events on behalf of the company.

Pain Points:

  • Difficulty finding the right products for their skin type and concerns
  • Lack of personal attention and support during the purchasing process
  • Lack of clear instructions and usage guidelines
  • Inconsistent results with the products

Key Touchpoints:

  • Social media and influencer partnerships
  • In-store events and product demonstrations
  • Personalized recommendations and follow-up calls
  • Clear instructions and usage guidelines

The Benefits of Customer Journey Mapping

One of the key benefits of customer journey mapping is increased customer satisfaction. By identifying and addressing pain points, companies can create a more seamless and enjoyable customer experience. This can lead to higher levels of customer satisfaction and improved brand loyalty. Customers with a positive experience with a company are more likely to return and recommend the brand to others.

Another benefit of customer journey mapping is improved brand loyalty. By understanding the customer’s experiences, companies can align their operations and messaging with customer expectations. This can lead to more efficient and effective communication and a stronger emotional connection between the customer and the brand. This, in turn, can drive customer loyalty and encourage repeat business.

The benefits of customer journey mapping are evident, from increased customer satisfaction and improved brand loyalty to more efficient operations and better communication. By mapping the customer journey, companies can gain a comprehensive understanding of the customer’s experiences and use this information to drive improvements and create a more positive customer experience.

Gathering Customer Feedback

Gathering customer feedback is an essential component of the customer journey mapping process. It provides valuable insights into the customer’s experiences and helps companies understand their needs, motivations, and pain points. Customer feedback is a powerful tool for informing the customer journey mapping process and driving improvements in the customer experience.

There are various methods for gathering customer feedback, including surveys, focus groups, and online reviews. Each method has its strengths and weaknesses, and the best approach will depend on the specific goals and needs of the company. For example, online reviews can provide a wealth of information about customer experiences, while focus groups can offer more in-depth and personalized insights.

It is important to use customer feedback to inform the customer journey mapping process. Companies can use this information to identify pain points and opportunities for improvement, as well as to gain a deeper understanding of the customer’s needs and motivations. By incorporating customer feedback into the customer journey mapping process, companies can create a more accurate and comprehensive representation of the customer’s experiences.

By using customer feedback to inform the customer journey mapping process, companies can create a more accurate and comprehensive representation of the customer’s experiences and drive improvements in the customer experience.

The Importance of Empathy in Customer Journey Mapping

Empathy is a critical component of customer journey mapping, as it allows companies to understand the customer’s experiences from their perspective. Empathy helps companies to understand the customer’s needs, motivations, and pain points and to create a more accurate representation of the customer journey.

By incorporating empathy into the customer journey mapping process, companies can understand the customer’s experiences more deeply. This can lead to more accurate and comprehensive mapping and improved customer experience design. Companies can use this information to identify pain points and opportunities for improvement and create a more seamless and enjoyable customer experience.

Empathy can also help companies to build stronger emotional connections with their customers. By understanding the customer’s experiences and needs, companies can align their operations and messaging with customer expectations. This can lead to more efficient and effective communication, improved brand loyalty, and increased customer satisfaction.

Brands that use Customer Journey Mapping 

These are just a few examples of well-known brands that have used customer journey mapping to improve their customer experience and drive business success. Using this approach, these brands have identified areas for improvement, created more meaningful and memorable experiences for their customers, and ultimately differentiated themselves from their competitors.

  • Starbucks: Starbucks used customer journey mapping to understand its customers’ experiences with its mobile ordering app. By mapping the various touchpoints, the company could identify areas for improvement, such as reducing wait times and improving the ordering process. As a result, Starbucks improved the customer experience and increased customer satisfaction.
  • Amazon: Amazon is known for its exceptional customer experience, and customer journey mapping has been a key component of this. The company maps the customer journey across multiple touchpoints, including its website, delivery process, and customer service. By using customer journey mapping, Amazon is able to identify areas for improvement, such as streamlining the checkout process and improving delivery times.
  • Nike: Nike used customer journey mapping to understand its customers’ experiences in China. By mapping the customer journey, Nike identified areas for improvement, such as simplifying the online ordering process and improving product availability. These insights helped Nike to create a more seamless and personalized customer experience, increasing customer satisfaction and loyalty.
  • Apple: Apple has a reputation for delivering an exceptional customer experience, and customer journey mapping has been a key component of this. By mapping the customer journey across multiple touchpoints, such as its retail stores and online support, Apple is able to identify areas for improvement, such as streamlining the product return process and improving the in-store experience.

Creating a Customer Journey Map

Creating a customer journey map is crucial in improving the customer experience. By visualizing the customer’s experiences, companies can gain a deep understanding of the customer’s needs, motivations, and pain points and use this information to drive improvements and create a more positive customer experience.

Here is a step-by-step guide for creating a customer journey map:

  1. Identify your customer segments: Start by identifying your key customer segments. This will help you to understand the different types of customers and their unique needs and experiences.
  2. Gather customer feedback: Use various methods to gather customer feedback, such as surveys, focus groups, and online reviews. This information will provide valuable insights into the customer’s experiences and help you to identify pain points and opportunities for improvement.
  3. Map out the customer journey: Create a visual representation of the customer’s experiences, including all key touchpoints. This can be done using various tools, such as flowcharts, diagrams, or mind maps.
  4. Identify pain points: Use the information gathered from customer feedback to identify pain points in the customer journey. These are the points in the customer’s experience where they encounter frustration, confusion, or other negative emotions.
  5. Analyze the data: Analyze the information gathered from customer feedback and the customer journey map to identify patterns and trends. This will help you to understand the customer’s needs and motivations and to create a more accurate representation of the customer journey.
  6. Drive improvements: Use the information gathered from the customer journey mapping process to drive improvements in the customer experience. Identify opportunities to streamline processes, improve communication, and address pain points, and use this information to inform your customer experience design.

The Role of Data in Customer Journey Mapping

Data plays a critical role in customer journey mapping. There are a variety of data sources that companies can use to inform their customer journey mapping. 

Some common sources of customer data include:

  • Surveys: Surveys can be used to gather customer feedback and insights into their experiences. This can include their motivations, pain points, and overall satisfaction with the customer experience.
  • Behavioral data: Behavioral data can be collected from a variety of sources, including website analytics, customer service logs, and sales data. This data can provide valuable insights into the customer’s actions and behaviors and help identify trends and patterns in the customer journey.
  • Customer feedback: Customer feedback can be collected through various channels, such as online reviews, focus groups, and customer service interactions. This information can provide valuable insights into the customer’s experiences and help to identify pain points and opportunities for improvement.

By collecting and analyzing customer data, companies can gain a deeper understanding of the customer’s experiences and use this information to improve customer experience. Data can inform your understanding of the customer journey and help create a more accurate representation of the customer’s experiences.

Implementing Changes Based on Customer Journey Mapping

Using the information gathered from the customer journey mapping process, companies can identify opportunities for process improvements and product modifications to help drive customer satisfaction and brand loyalty.

Here are some steps for implementing changes based on customer journey mapping:

  1. Prioritize changes: Based on the customer journey map and the feedback gathered, prioritize the changes that will significantly impact the customer experience. This can include process improvements, product modifications, or changes to the customer service experience.
  2. Design new processes and products: Use the insights gained from the customer journey mapping process to design new processes and products that address the customer’s pain points and meet their needs.
  3. Test and iterate: Implement the changes in a controlled environment and gather customer feedback to evaluate the impact. Use this feedback to refine the changes and make further improvements.
  4. Roll out changes: Once the changes have been tested and refined, roll out the changes to the entire customer base. Continuously monitor customer feedback to evaluate the impact of the changes and make further improvements as needed.
  5. Stay flexible: The customer journey constantly evolves, and customer needs and expectations change over time. Stay flexible, gather customer feedback, and improve the customer experience as needed.

Companies can drive customer satisfaction and improve brand loyalty by prioritizing changes, designing new processes and products, testing and iterating, and continuously monitoring customer feedback.

Best Practices for Customer Journey Mapping

While customer journey mapping can be an effective tool for improving the customer experience, it is important to follow best practices to ensure success. 

Here are some best practices for customer journey mapping:

  • Involve key stakeholders: Involve key stakeholders in the customer journey mapping process, including representatives from sales, marketing, customer service, and product development. This will ensure that all perspectives are considered and that the customer journey map accurately reflects the customer experience.
  • Use a data-driven approach: Use data to inform the customer journey mapping process. This includes customer feedback, website analytics, and sales data. This data can provide valuable insights into the customer’s experiences and help to identify pain points and opportunities for improvement.
  • Test changes before implementation: Before making any changes based on the customer journey map, it is crucial to test them in a controlled environment. This will help evaluate the changes’ impact and refine them before they are rolled out to the entire customer base.
  • Continuously monitor customer feedback: The customer journey constantly evolves, and customer needs and expectations change over time. Continuously monitor customer feedback to ensure the customer journey map accurately reflects the current customer experience.
  • Foster a customer-centric culture: Foster a customer-centric culture within the organization by prioritizing the customer journey. This includes regularly reviewing and updating the customer journey map and improving the customer experience as needed.

Negatives of Customer Journey Mapping

  1. Time-consuming and resource-intensive: Customer journey mapping can be a time-consuming and resource-intensive process, especially for larger organizations with complex customer journeys.
  2. Limited to current understanding: Customer journey mapping is only as good as the data and information used to create it. A brand needs to fully understand its customers and their journeys so that the resulting map accurately reflects reality.
  3. Can be subjective: Customer journey mapping is often created by a team, which can lead to subjectivity and bias in the final map. To minimize this, it’s important to involve multiple stakeholders and gather data from various sources.

Frequency of Customer Journey Mapping

It’s recommended that a brand conduct customer journey mapping regularly, at least once a year or as needed, based on changes in the market, customer behavior, and the brand’s offering. The frequency of customer journey mapping will depend on the size of the brand, the complexity of its customer journeys, and the speed at which the market and customer behavior are changing.

What to Consider before Embarking on Customer Journey Mapping

  • Data collection: Before conducting customer journey mapping, it’s important to have a solid understanding of your customers, including their behaviors, preferences, and pain points. This information can be collected through surveys, focus groups, and customer interviews.
  • Stakeholder involvement: To ensure that customer journey mapping is comprehensive and accurate, it’s important to involve key stakeholders, including representatives from sales, marketing, customer service, and product development.
  • Clear goals: Before conducting customer journey mapping, it’s important to have clear goals and objectives, such as identifying areas for improvement, increasing customer satisfaction, or improving the overall customer experience. This will help guide the process and ensure that the resulting map is actionable and relevant.

The Role of Market Research in Customer Journey Mapping

Market research plays an important role in customer journey mapping. By gathering customer feedback and data, brands can gain a deeper understanding of their customer’s needs, motivations, and behaviors. This information can then be used to inform the creation and refinement of the customer journey map, ensuring that it accurately reflects the customer experience.

Customer journey mapping is a critical component of a brand’s customer-centric strategy, and market research is essential in ensuring that it is based on accurate and up-to-date information. By combining these two approaches, brands can create a customer experience that exceeds customer expectations and drives business success.

If you want a crocheted sweater or a bespoke engraved cutting board but need help finding an artisan, you might turn to platforms like Etsy that connect buyers with artisans on their eCommerce platforms. 

The last decade has brought a massive consumer shift in mindset. Consumers today care about where their products come from, who produced them, and under what conditions they were made. They care about the impact of everything they purchase —on the workers and the environment. 

Many trends are responsible for the maturation of the artisan economy around the globe, such as the rise of e-commerce, a growing interest in the environment and sustainability, the demand for rare, unique, personalized items, and a desire to support the local economy and small businesses. 

Consumers care about sustainability, ethical consumption, and small-batch production and are looking for unique pieces with a story to add to their lives. 

There has been a massive demand for handmade products globally. Handmade or artisanal products are high quality and unique, making them desirable for people looking for one-of-a-kind products with a strong narrative. 

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The need for personalization and the recent movements supporting local businesses and artisans have also helped promote bespoke brands or handmade products.

Unlike mass-produced goods, handmade products have certain deviations, and no two products will be the same, adding to the uniqueness consumers seek in the products they purchase.

When consumers purchase a handmade product, they are also buying into the story and history behind it and building a deep connection with the artisan making the product while supporting craftsmanship and local businesses. Consumers are avoiding off-the-shelf pieces, and artisan goods are becoming a staple. 

According to a U.K. Crafts Council report, 73 percent of U.K. adults had bought a craft in 2019 —which amounts to almost 25 million handmade items. About 32 percent of today’s buyers are under 35 years of age, making the younger populations of Millennials and Gen Z the biggest craft shoppers today. There are 11,620 craft businesses in the U.K., with over 43,000 employees. 

Consumers often save crafts and techniques that face extinction and erasure by purchasing artisanal goods. And now, many big brands want to add a piece of the traditional method to their products. For instance, independent watchmaker Daizoh Makihara decided to use the traditional Japanese glass-cutting technique called Edo-kiriko for the dial of his first watch. He found eight companies that specialized in the method, but only one agreed to do it. This was Kyosuke Hayashi, the president of Mitsuwa Glass Kogei. 

In English, Edo-kiriko means “cut glass from Edo”: Edo is an old name for Tokyo, and kiriko is the name of the cutting technique. This partnership gave birth to the first edo-kiriko watch in the world in 2018. 

The weavers and artisans work hard to keep the rich Indian arts and crafts heritage alive. According to IBEF, the total handicraft exports from India reached $3.5 billion in FY20. With over 200 million artisans, India’s handicraft sector is the second largest employer after agriculture. 

While fast fashion is pressuring the environment with its heavy carbon emissions, water waste, and poor working conditions and treatment of workers, consumers are hungry for a better model that offers trendy essentials and accessories without harmful environmental and socio-economic impact.

eCommerce has enabled many skilled artisans and hobbyists to profit from their passion and talent. 

Consumer obsession and interest in handmade products have also seeped into reality T.V., and craft reality T.V. shows have become quite the rage. 

British reality show Handmade: Britain’s Best Woodworker is a furniture-making competition similar to a cooking contest that has captured the hearts of audiences worldwide. Every major network and various streaming platforms are in on the trend. Other similar shows include BBC’s All that Glitters, Netflix’s Blown Away, NBC’s Making It, HBO Max’s Craftopia, ITV’s Bling, and Channel 4’s The Great Pottery Throwdown.  

The pandemic spurred the demand for handmade goods. Online platforms have fuelled much of this growth: in December 2018, Etsy, a U.S.-based online platform for artisans to buy and sell handmade goods, reported that there were 220,000 active sellers in the U.K. with a further 9,000 makers on Folksy, a U.K.-based online platform to purchase handcrafted gifts and original artwork, sold directly by the artists and designers who have created them.

Top handmade product categories on Etsy 

According to a report, the top handmade product category on Etsy in 2020 was home and living, with a 25 percent seller share, followed by art and collectibles (21 percent), jewelry (15 percent), clothing (11 percent), accessories (8 percent), bath and beauty (6 percent), toys and games (4 percent), bags and purses (3 percent), weddings (2 percent), and books, movies and music (2 percent).

Etsy has three main sections in its online marketplace: Handmade, Vintage, and Supplies. Handmade represents 85 percent of sellers, Vintage represents 6 percent, and Supplies represent 12 percent of sellers.

Etsy, founded in 2005, now has more than 1.4 million sellers and 19.8 million buyers. Etsy focuses on handmade and vintage items and features over 5.4 million craft supply items.

Handmade gifts provide a personal touch and make the gift unique and personalized. This unique factor has driven platforms and brands that offer handmade products as popular choices during the Holidays. 

There has been an 80 percent jump in searches on the creator-driven platform Etsy for Holiday gifts in the past three months compared to last year. In 2020, CNBC reported that Etsy saw a 156 percent increase in search traffic during three months compared to the year prior for custom gifts.

Case Study: How Etsy carved a niche for the handmade sector using an e-commerce platform

The Overview

Based in Brooklyn, New York, Etsy is the largest online marketplace globally, connecting buyers to sellers of handmade and vintage goods and craft supplies. Etsy is built on a smart revenue model: it charges sellers a listing fee and a commission and upsells advertising services to push a seller’s products to boost reach. The company expanded through acquisitions, including Blackbird Tech for USD 32.5 million, Reverb in 2019 for USD 275 million, and the fashion resell marketplace Depop in 2021 for USD 1.63 billion.

The company has competitors like Amazon Handmade, Big Cartel, Folksy, iCraft, and eBay. 

The Approach

Etsy took the value creation approach and narrowed its product offering to handmade or artisan-made products. While it has created a community of buyers and sellers, it moved its focus to buyers as the core market when eBay vet Josh Silverman took over Etsy’s reins. A year after hitting an all-time low in 2017, Etsy’s stock rebounded and grew; today, it stands at USD 119.74 a share. Defining and focusing on its key audience helped the brand grow. 

Once the brand identified its core audience, the buyers, it hiked the fees it charged its sellers from 5 percent to 6.5 percent. Even though 20,000 of its sellers went on strike, the company did not budge, and the results showed in the most recent third-quarter earnings in 2022, reporting a revenue bump of 11\.7 percent over the same quarter of 2021, to USD 594.5 million. 

Etsy is also attracting more buyers to its platform via the mobile app. In 2021 alone, the brand reported a 45 percent increase in app downloads bringing 5.7 million new shoppers to download the app. The brand also leverages targeted, compelling email offers based on items favorited or shops browsed. The brand funded discounts and sent them to 18 million shoppers in 2021, and also provided discount technology allowing shoppers to discount goods from their shops. The brand also encourages buyers to follow more shops through sweepstakes and contests. 

The brand also offers multiple additional services to facilitate communication with sellers, on-platform transactions, and access to ratings and reviews. 

Etsy provides its sellers a collective to voice their concerns with congress members and local and federal governments. And lastly, the brand continuously invests in retail technologies like machine learning via acquisitions. The brand has designed convenient distribution channels, upgraded buying and selling software and merchant services, and improved its social media presence to boost brand awareness. This month, Etsy rolled out a new image search feature to allow shoppers to find an object faster than with a keyword search. Users on iOS can now tap the camera icon and search for images by uploading a picture. Etsy then scours its platform to find products visually similar to the ones the user is searching for. Etsy plans to expand image search to Android app users soon.

The Results

Etsy’s impact on the artisan economy is robust. The most recent quarterly earnings report disclosed revenues had risen to USD 198 million, a 31.64 percent increase year over year. Etsy currently holds a market cap of just under USD 5.5 billion – quite a climb from its USD 1.1 billion market cap back in March 2017. The brand attracted 6.3 million shoppers in the third quarter of 2022, ending with 88.3 million active buyers on the Etsy marketplace.

In most developing nations, the handicraft industry is fragmented, lacking legal Intellectual Property laws surrounding its products, and artisans not getting fair compensation for their craft. 

In most countries, handcrafts are highly valued because of the high skill level and talent required and are sold in luxury stores at premium prices. However, although India has a rich culture and many categories of handicrafts, they still need to be given their deserved value and place. Ramesh Menon founded Save the Loom, a nonprofit community group to revive, restore, and restructure the handloom industry in India.

Many other such organizations are helping artisans overcome the many challenges they face. However, online platforms and eCommerce websites like Etsy, Folksy, Amazon Handmade, and others have helped create a viable worldwide path forward for the handmade industry. 

While not every product fits the artisan-made model, the lessons from this growing trend apply to all categories. Consumers want to feel connected to the story behind the product, how a product is made, and the feel-good impact on the environment and people after purchase.

For more insights into the shifting trends in online shopping and consumer behavior around the globe, download our complete report, “The Future of Online Shopping.” 

Product managers and designers frequently get requests to design new products and add new features to existing products, making it difficult to determine which ideas to invest in for the best outcome. 

This is where concept testing comes into play. 

Concept testing ideas and even features for existing products before moving into implementation and design is the best way to approach a customer-centric product development process.

What is concept testing?

Concept testing is a market research method to get user feedback before bringing a new product or feature to the market. It often allows users to provide their input on potential solutions. When end users are involved in the initial product development and design phase, it takes the guesswork out of what consumers want and allows them to shape the idea before it is launched in the marketplace.

It involves putting the idea in front of real consumers and asking them to assess the product’s value in multiple areas. 

Whether the goal is to bring a new concept or product into the market, update an existing product, or change pricing or messaging, input from real customers translates into informed decision-making. This allows brands to save time, money, and resources while preventing financial losses due to failed products and also helps protect the brand and customer relationships.

In today’s highly competitive business environment, brands need to employ a customer-centric approach, and all decision-making should start and end with the consumers’ interests and preferences in mind.

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The value of concept testing

According to studies, more than 25 percent of total revenue and profits come from launching new products, which is true across industries and product categories. 

With concept testing, brands can validate an idea or vision before investing valuable resources into building something that may not resonate with its users. It also helps brands identify potential challenges in executing the idea. Concept testing precedes usability testing, which must be conducted once the refined design prototype or wireframe becomes available. Product testing is crucial and happens after the final product is ready for launch to get first-hand information on how consumers will respond to the final product. 

Launching a product or service is a massive undertaking, even for larger organizations. Research shows only 55 percent of all product launches occur on schedule, and 45 percent are delayed by at least one month. 

Therefore, brands must ensure the product resonates with the end user before launching it. Concept testing helps confirm that your assumptions around a solution or idea are correct. 

Concept testing comes after the ideation phase and is a way of testing ideas that have been developed to an extent but need further refinement and provides a more detailed understanding of the needs of your potential customers. 

Concept testing may also be used to design a complete User Experience (UX). According to studies, every USD 1 invested in User Experience (UX) design results in a USD 100 return. Providing consumers with a seamless UX is crucial for brands to stay competitive in today’s volatile market conditions. 

Concept testing should be considered an unobstructed learning process where brands open the concept up to end users to discover their perceptions —without any predefined parameters.

Benefits of concept testing

Concept testing minimizes risk and is easy to set up.

Concept testing allows brands to test and understand how real consumers will feel about the product before investing time, money, effort, and resources into it, which minimizes the risk of product failure. 

Concept testing can help you optimize the concept before the launch.

Concept testing can provide more information regarding the potential roadblocks to implementation, consumer perceptions, price perceptions, competition, and how the new concept fits into the brand. 

It also allows brands to test multiple solutions or concepts to arrive at the best one and helps provide some information on potential market demand.

Research helps forge strong brands.

Concept testing is a great way to show consumers and investors that your brand believes in constant innovation, has a customer-centric approach, and is transparent. This helps boost loyalty and enhance brand value and equity.

Concept testing prevents costly mistakes.

Even some of the biggest brands, like Google and Coca-Cola, are not immune to making mistakes due to false assumptions about what consumers want (or do not want).

In 2012, Google first announced Google Glass —an eyeglasses-shaped head-mounted display with smartphone functionality. It was based on the premise that “technology should work for you —to be there when you need it and get out of your way when you don’t.” The brand wrongly assumed what consumers wanted from technology. In 2015, the company discontinued the product due to low market demand. 

Coca-Cola is another great example illustrating the importance of concept testing. When Coca-Cola’s flagship cola drink started losing market share to Pepsi, it changed its drink formula for the first time in 99 years. It introduced New Coke, which failed miserably. The brand reintroduced its older recipe and rebranded it as Coca-Cola Classic.

Similarly, in 1990, US-based beer Coors introduced Coors Rocky Mountain Sparkling Water to tap into the fast-growing bottled water segment but fell flat as the Coors name confused consumers. 

Concept testing boosts confidence in product launch and team buy-in.

If you have a concept but need to assure the senior team that it will work, concept testing is the best way because you can show evidence that real consumers will use it.  

The importance of well-designed questions

Over 80 percent of all new products fail, and concept testing allows brands to determine if a new product or feature is a good market fit by asking real users the right questions. 

Therefore, you must ask the right questions that will give you valuable insights into the needs and requirements of real users. Determining the metrics, you will measure in your concept testing is crucial. 

You will set your goals depending on the concept and methodology you choose, and your survey questions should aim to reach these goals. For instance, if you are testing a new type of single-serve, wireless blender, the goal is to determine if your potential customers need a product that makes smoothies on the go. The questions will revolve around understanding the consumer better and if they need a solution like this, along with any other features they might want to see in this blender, for instance, a sippy cup cover or straw to go with it. 

This is where research design comes into play, and the research questions depend upon the business need. For instance, if a brand is taking its concept to a new market segment, they need to conduct a needs analysis using qualitative and quantitative research methods. The questions will be designed to find out if the concept will work in the new market. 

Let’s say the brand is testing a new concept before its initial introduction. In that case, they need to conduct Concept Fulfillment utilizing qualitative research to determine if there is a need for the new product concept.

Some common goals brands set for concept testing are as follows.

  • Get a metric on how likely existing customers and new market segments will be to purchase the product. 
  • How the product will do based on current competition in the market, and what features will make it stand out. 
  • Learning which features would get existing customers to purchase from the brand.

These goals provide brands with invaluable, high-quality data and insights into consumer behaviors, attitudes, and preferences. 

Concept testing methodologies

Brands test concepts in many ways and all the methods involve getting feedback from potential users on the idea’s validity. It can be done via a face-to-face or remote interview. Depending on the concept and the study’s goals, it can be done asynchronously or unmoderated. 

There are four standard methods for concept testing. They are based on the number of ideas you want to evaluate.

Comparative testing

This method is used when you have more than one potential concept to test. Brands use the comparative method to see how multiple concepts measure against each other.

When using this method in a survey, respondents are asked to rate each concept against a set of criteria. Questions must be specific features that can also be ranked to determine which features are most preferred by respondents.

Monadic testing

Unlike comparative testing, monadic testing shows research participants one product or idea. 

This concept testing takes your entire target audience and breaks it into subsets, showing only one concept to each. These user-friendly tests provide a deep dive into the consumer’s mind. They also reduce bias and provide accurate results.

Sequential monadic testing

A sequential monadic survey shows your entire target audience or a subset of the audience, either all of your concepts or some of them—with at least two concepts being shown randomly.

Proto-monadic testing

Proto-monadic testing combines sequential monadic and comparison testing. It asks participants to analyze concepts and compare features to help them choose the best concept.

Steps in Concept testing survey design

When you’re ready to test your concepts, there are four steps to follow:

Choose the most suitable methodology for your business needs.

Select the best methodology depending on the scope, time, and number of features or concepts being tested.

Set a goal.

Work backward, set a goal based on the objective and the information you want to gather from your customers, and design survey questions accordingly.

Choose survey components appropriately.

Make sure you use the most appropriate components for your surveys. From Likert scales to images and demographic questions, brands should carefully make these choices to design a survey with questions that will produce valuable data.

Identify the most promising concept.

Review the collected data to get a clear picture of the concept favored by the target market. Dive deeper into the most desirable features to determine which concept has the highest potential for market success. 

If the data reveals something unexpected or is something you did not imagine before, feel free to change course. This is why you conducted concept testing in the first place —to ensure the concept works in the marketplace. The ultimate goal of this study is to do what’s profitable for the brand. 

Real-world examples of Concept testing

It’s one thing to determine if people want a product or service and yet another to say they are willing to open their wallets and buy the product. 

This is where purchase intent testing comes into play. This helps determine if people will purchase your product or service at your desired price.

Many brands test the product without the price first to gauge consumer interest and later add price to determine purchase intent. 

US-based Electric Vehicle brand Tesla conducted purchase intent testing for a car model before it even designed it.

In 2016, the pioneering EV automobile brand tested purchase intent for the Tesla Model 3 before it was even designed. Interested buyers were asked to put down USD 1,000 for the Tesla Model 3, and about 400,000 people ended up putting down money to book the car. The participants also provided feedback on the car, and Tesla made modifications and features based on real customer input. This also gave Tesla the confidence and the capital needed to develop the car. 

Another undefeated brand due to its concept testing research is Denmark-based Lego, a plastic building-block toy company. For years, Lego was predominantly bought for boys, so the brand conducted extensive market research to discover that boys and girls played with Legos differently. Boys preferred stand-alone structures, while girls enjoyed recreating backgrounds, scenes, and environments. 

In 2012, based on these findings, the brand launched the Lego Friends product range with cafes, salons, supermarkets, and so forth to tap into the new consumer segment successfully. 

Concept testing is a great way to evaluate and identify winning product concepts. It promotes innovative thinking and developing products, features, and pricing that resonates with end users. It allows brands to stay ahead of the competition by developing and designing concepts based on market demand and creating products only after testing the idea and getting invaluable feedback from real consumers. 

Kadence International helps leading brands make game-changing decisions. If you are looking for a research partner to help better understand your customers, we would love to help. Fill out our Request for a Proposal here.

Digitization has reset the online shopping game board, and the pandemic has accelerated technology adoption by both brands and consumers. Today, the most successful retailers have adopted technology at warp speeds. With breakthrough technology complementing every step of the retail process, where are we headed? 

Download our complete report, “The Future of Online Shopping,” to find out.

Here’s a summary of the most significant trends shaping the future of online shopping worldwide. 

Trend 1: The Future is ‘Phygital’ — Reinventing the retail experience. 

At the intersection of physical and digital is a connected retail environment where consumers are placed at the center. In this consumer-centric, channel-agnostic, connected environment, consumers can buy online and pick up from stores.

They can try clothes and accessories virtually, in-store or online, browse large touchscreens for product information, dispense products from vending machines, and even scan an aisle in a grocery store to view an overlay of information about products. 

The future of retail is omnichannel, an approach providing customers with a unified shopping experience. This approach connects experiences across multiple touchpoints, including brick-and-mortar, web, and mobile apps. 
Discover how Singapore’s NTUC grocery chain increased retention and repeat business using an omnichannel approach.

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Online Financing Options – “Buy-Now-Pay-Later.”

Retail brands are removing barriers to make the shopping experience as frictionless as possible, including easy financing terms. 

Apps Making Online Shopping Seamless.

Mobile apps offer retailers an engaged audience they can easily connect with to sweeten their shopping experience, building loyalty and driving in-store sales. 

Download the complete report to discover how Shopee, the leading eCommerce online shopping platform in the Philippines, Taiwan, Thailand, Singapore, Malaysia, Indonesia, and Vietnam, and Sephora, a multi-brand beauty retail store, leading the way in making the shopping experience seamless. 

Trend 2: DTC brands are booming worldwide.

Direct-to-Consumer (DTC) has disrupted the eCommerce industry. As more brands manufacture, design, market, sell and ship their products directly to customers, they are more agile than traditional brick-and-mortar retailers. 

Download the complete report to learn how Nike tapped into the DTC space along with other legacy brands.

Social media advertising significantly contributes to DTC sales; however, rising ad prices damper many of these brands. 

Download our report to discover how DTC brands target users in a cookieless world. 

Also, learn how a home-grown Vietnamese DTC start-up raised USD 2.3 million in the middle of V.C. winter in the country. 

Shein, another DTC brand based in China, adopted and perfected its business model and developed a massive, vibrant, international community around Shein with a customer-centric approach. 

Download our report for the complete case study and discover how Shein has tapped into a massive international market of online fast fashion shoppers in the U.S., Europe, the Middle East, and other big consumer markets. 

Trend 3: Influencers are the new sales associates.

In a crowded digital space, where media consumption is highly democratized, brands seek attention by creating entertaining content that moves the audience. 

Consumers are now in charge — and rather than listening to brands, they listen to peer-to-peer advice on products and services. Consumers are increasingly filtering content, ads, and posts that reek of brand promotions in favor of posts and promotions from people they trust, a.k.a. Influencers. 

So who are the top Instagram influencers right now? 

Download our report to find out who owns the top spot for earnings per paid promotion, and learn how Kim Kardashian sold 150,000 bottles of perfume within minutes on a live stream in China. 

Trend 4: Personalizing the online shopping experience. 

Customers have spoken. They don’t just want personalization; they expect it from brands. 

Research shows that when brands provide personalized experiences, 80 percent of customers are more likely to purchase. When brands personalize a customer’s experience, they anticipate what they want and deliver it to them, increasing engagement, improving conversions, boosting customer loyalty, enhancing the experience, and gaining a competitive advantage. 

Download our report to find out how U.S.-based grocery chain Kroger is delighting shoppers with next-level personalization strategies in our brand case study. 

The future belongs to retail brands that master the omnichannel experience.

Consumers are tightening their purse strings due to inflation and the fear of an impending recession.

High prices of fuel and food are impacting consumer spending. It’s time for brands to get more creative, and eCommerce sellers are in a favorable position to weather the economic downturn using competitive pricing software and data-rich touchpoints. 

Download our free report to find out how top retail brands are globally navigating the new online retail playing field during these uncertain times. 

A summary of our latest trend report: About Face

The beauty and personal care market is one of the fastest-growing consumer markets, particularly in the cosmetics and skincare categories.

About Face: Emerging Global Trends in the Beauty and Cosmetics Industries is an in-depth, 65-page guide providing insights into key trends shaping the beauty industry in the U.S., U.K., Singapore, Japan, Indonesia, China, Thailand, Vietnam, the Philippines, with examples and case studies from leading global brands. 

The beauty and personal care industry includes makeup, skincare, hair care, fragrance, grooming, beauty services, and cosmetic surgery. 

Beauty and personal care worldwide market size

Revenue in the beauty and personal care market amounts to USD 564.40 billion as of 2022 and is expected to grow annually by 4.76 percent (CAGR 2022-2026). The market’s largest segment is personal care, with a market volume of US$254.00bn in 2022.

At USD 87.99 billion in 2022, the United States generates the most revenue in the beauty and personal care market. China is the second-largest beauty and personal care market in revenue and consumption.

Millennials are often considered the main drivers of the meteoric growth of the beauty segment. Purpose-driven, digitally savvy, clinically-backed, and affordable clean products and brands will most likely thrive in the near future.

Here are the major beauty trends shaping the beauty and personal care industry globally. 

Read the full report for deeper insights into these beauty and cosmetics industry trends, along with detailed case studies. 

1. Facing the online world of e-commerce: The changing face of the beauty market.

While many brands were moving online even before the pandemic, the coronavirus accelerated the shift to online sales as stores worldwide shut down. Many beauty products moved online, and e-commerce sales, shoppable social media links, brand websites, and online marketplaces continued to thrive.

Social media-driven brands have successfully captured market share via social channels and utilized influencers or Key Opinion Leaders, also known as KOLs (Influencers with a more targeted following and parallel careers), to build multimillion-dollar companies. This has also helped brands develop valuable content that continues to grow their market share and profits.

Read the full report to discover how brands build expertise, authority, and trustworthiness through product reviews, beauty expert ratings, videos, and blogs.

2. Beauty with Brains —Technology is giving beauty a facelift both online and offline.

In an online setting, technologies like Artificial Intelligence (A.I.), Augmented Reality (A.R.), and Virtual Reality (V.R.) are necessary to create interactions between brands and consumers. Beauty tech is not only helping with personalization but also has an entertainment factor. Brands are using innovative approaches to engage with consumers.

Discover how brands use A.I. for personalization, V.R., and A.R. for product trials, and smart beauty devices as diagnostic tools providing a wealth of information in the full report. 

3. A new generation of direct-to-consumer(D2C) brands is disrupting the market.

Direct to Consumer (D2C) brands do it all —they build, market, sell, and ship their products directly to their consumers using e-commerce platforms, such as brand websites and shoppable social media links.

With an online-first approach, learn how D2C companies build their brands on social platforms, gain a deeper understanding of the customer, lower costs, and stay competitive.

Also, read the full report to find out how Glossier skyrocketed into a billion-dollar brand from a social media handle.

4. Beauty in a box: The rise of beauty subscription boxes.

With the advent of the beauty subscription box, subscribers can now try curated samples of new products every month and spend less than they would on a full-size product. After testing these samples, they can purchase only the products they love.

Co-founders Katia Beauchamp and Hayley Barna launched Birchbox and positioned it as a personal beauty editor who could help everyone find the best beauty products online.

Read the complete case study to discover how Ipsy scaled its influencer-driven content marketing strategy to become an 800 million dollar company.

5. Diversity and inclusion in the beauty industry.

Consumers, especially younger generations —Millennials and Gen Zers are moving away from conventional beauty standards and expect brands to take note. 

In 2004, American personal care brand Dove created a disruptive photography exhibit titled “Beyond Compare: Women photographers on Real Beauty.” The commercial was based on a three-year creative, strategic research effort, which resulted in a new consumer-centric, inclusive approach.

Most recently, Google announced its Monk Skin Tone (M.S.T.) scale, designed to represent various skin tones and be more inclusive.

And Rihanna’s beauty brand, Fenty, is championing diversity and inclusivity with a “show not tell” approach. Read the complete Fenty case study in the report. 

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6. Moving beyond basic grooming: Men’s beauty products shaking up gender stereotypes.

The global men’s personal care market was valued at USD 30.8 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.1 percent from 2022 to 2030. Men demand gender-specific products: shampoos, conditioners, moisturizers, face washes, masks, and peels. E-commerce is further fueling this growth.

7. Beauty for all: The advent of genderless beauty brands.

While not an entirely new trend, genderless beauty took a giant step forward in 2020. Japanese brand Shiseido announced trans model and actor Hunter Schafer as one of its global brand ambassadors. American rapper Pharrell Williams launched his new genderless skincare range, Humanrace.

8. Riding the Korean Beauty skincare wave.

Korean Beauty, or K-beauty, as it is widely known, popularized the concept of investing money, strategy, and time into a ten-step daily skincare routine.

K-Beauty has made bizarre ingredients, like donkey milk, snail slime, bee venom, pig collagen, and even placenta, mainstream.

The extensive 10-step skincare regime might be overwhelming for some Western consumers, but Asian consumers are happy to adapt it to their skincare regime.

9. Cannabis Beauty: A market full of opportunity but fraught with regulatory challenges.

CBD oil-based products have anti-inflammatory, antioxidant, and skin-soothing properties. These remarkable properties in one single blend make CBD oil an effective product in the beauty and personal care segment.

Given the legalization of recreational marijuana in 38 states, the U.S. is at the center of cannabis beauty and self-care. North America is anticipated to lead the CBD skincare market share during the forecast period. The Asia-Pacific is projected to exhibit exponential growth throughout 2026.

Read the full report to learn more about the opportunities and challenges American CBD brands face for international expansion. 

10. You are what you eat: Ingestible skincare.

While supplements for promoting skin health and hair and nail growth have been around for a long time, ingestible beauty products are more like edible skincare.

11. Beauty with a conscience: The era of sustainable brands.

Today’s environmentally-conscious consumer is looking for brands incorporating eco-friendly and sustainable practices into every step, from production and packaging to distribution and sales. It’s about sustainably sourced ingredients, ethical manufacturing, clean formulations, and eco-friendly and biodegradable packaging. 

Learn how Forests Essentials, from India, created a luxury Ayurvedic beauty brand from the ground up.

12. The eternal quest for youth and the anti-aging market.

The cosmetics industry is constantly innovating to help customers regain their lost youth and preserve it for as long as possible.

13. Beauty services and cosmetic procedures are becoming commonplace.

Men and women increasingly turn to salons and spas to rejuvenate and destress. Busy lifestyles, urbanization, higher disposable incomes, and an inclination toward self-care drive growth in this sector. North America is projected to lead the global spa and beauty salon market during the forecast period.

14. The hair care market is booming, with headroom to grow further.

In the global hair care products segment, the U.S.A, Canada, Japan, China, and Europe will drive the 4.6 percent CAGR estimated for this segment. China will remain among the fastest-growing in these regional markets.

Second, only to the U.S., China is the second-largest market for hair care products worldwide and holds the largest market share in the Asia-Pacific region. It will further increase the demand for hair care products in the area, making Asia-Pacific one of the largest markets for hair care products over the next five to ten years.

The beauty industry is a beast.

Beauty and personal care are among the fastest-growing consumer markets, driven by the cosmetics and skin care segments. Consumers know retinol from retinoids and are highly knowledgeable and aware of beauty ingredients. Social responsibility and sustainability are essential to purchase considerations. And the younger generations are mainly driving the trends detailed in this report. 

Read the complete, exhaustive guide here.