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The automotive industry has a clear, shared vision of a dramatically transformed future with electronic vehicles, autonomous vehicles, connected cars, shared ownership, and subscriptions. But are consumers ready to transition just yet? The pandemic has changed how much people travel, and this leaves us with the big question: how will the economic damage caused by COVID impact the car industry?

To further understand where consumers stand and what economic recovery looks like for the automotive industry —one of the hardest hit by the pandemic —we looked at five significant trends. We explored what’s at stake for each of these five trends, evaluated the rate of progress, and put the spotlight on innovative brands and solutions leading the way.

  1. Post-COVID caution: A battered industry navigates massive uncertainty.
  2. Plugged In: The electronic vehicle revolution is happening but still powered by subsidies.
  3. In Control: Artificial Intelligence is enhancing, not replacing, human driving abilities.
  4. Connected Vehicles
  5. Older Drivers, Younger Drivers

Ｄownload the full report and read the summary of the top 5 trends shaping the future of the automotive industry, with a spotlight on the brands that are capitalizing on these trends with their cutting-edge innovative solutions.

#1 Post-COVID caution: A battered industry navigates massive uncertainty.

According to analysts, Jato Dynamics, global new car sales fell by over 12% in 2020, that’s around twice the drop recorded in IEA figures for the worst year of the last financial crisis (2007-2008).

While this drop was only 2% in China, the automotive industry felt a heavy blow globally. France, Germany, the UK, and Brazil saw declines of over 20%.

Consumer behavior changed dramatically, and while new car sales declined due to the pandemic, the automobile aftermarket flourished as people tried to preserve their existing vehicles. Consumers started putting off purchases of luxury cars, hybrids, and EVs.

The early COVID-19 spread brought with it a new innovative trend —virtual showrooms, whereby consumers could move all or at least some part of their car buying experience online. In many parts of the world, COVID restrictions will become a part of life indefinitely, and therefore, this trend is here to stay.

Learn more about how the pandemic has reshaped the automotive industry here by downloading our free report.

#2 Plugged In: The electronic vehicle revolution is happening but still powered by subsidies.

As with much of the electronic vehicle (EV) revolution, subsidies and regulation may be needed for mass EV adoption.

In Norway, subsidies and tax breaks make the cost of an EV virtually identical to that of a non-electric car. 74% of the new cars sold in Norway are EVs, whereas it’s just 2% in the US. In the USA and China, EV sales plateaued when subsidies were reduced or phased out.

In 2021, US President Joe Biden took a step toward cutting greenhouse gas emissions signing an executive order aimed at making half of all new vehicles sold in 2030 electric, a move made with backing from the biggest US automakers.

Amazon is started testing electric delivery vans in 2021. The vehicles were developed in partnership with start-up Rivian, which raised $8 billion from investors, including Amazon through its $2 billion Climate Pledge Fund. The fund includes an agreement to purchase 100,000 electric vehicles from the start-up as part of its ambitious push to make Amazon’s fleet run entirely on renewable energy. Each van has a range of 150 miles per charge.

Before consumers join the EV revolution, they want to know there is a plan for infrastructure for charging stations.

A Deloitte study showed that consumers were putting off plans to buy EVs due to price and driving range. With ranges for EVs now often well over 400km, that is taken care of, but there needs to be a visible EV infrastructure in terms of charging stations. Therefore, at the moment, innovators need to tackle the two most critical factors —price and infrastructure.

Wireless charging stations are an essential solution. Although the technology exists, firms don’t want to build the infrastructure without enough cars; and manufacturers don’t want to create more expensive wireless options without that infrastructure.

Learn more about how Electronic Vehicles or EVs are perceived and the challenges ahead here by downloading our free report.

#3 In Control: Artificial Intelligence is enhancing, not replacing, human driving abilities.

Even though Tesla has made huge strides with its self-driving cars, the adoption is still slow due to consumer trust issues.

Moreover, driverless cars pose problems —of AI, of laws and ethics, and public perception. 

In this scenario, autonomous vehicles with Driver Assistance Systems are becoming the norm in many markets. 

The ultra-high-end Cadillac Escalade Platinum, launched in Summer 2021, is the first vehicle to boast GM’s Super Cruise technology. The vehicle handles your highway driving for you on major mapped roads. However, your car monitors you and will warn you if you stop paying attention to the road for more than five seconds before switching back to manual.

AI is set to become more prevalent in vehicles, learn more about the challenges for these enhancements here.

#4 Connected Vehicles

So far, automotive and infrastructure innovation has happened chiefly at the individual car level. However, traffic jams and rush hours occur at a network level when all those individual cars interact.

We see a change in this direction as businesses and transportation planners recognize the idea of the “mobility ecosystem” —where software platforms can connect, manage and mitigate network-level inefficiencies between transport services and their users.

Navigation apps showing real-time traffic data are already being used widely. We also see more adoption of smart speed limits and smart traffic light systems.

The next generation of connected vehicles goes deeper and broader with tools that allow bikes or mobility scooters to connect to the same systems cars use. Connected vehicles also make fleet management —of buses or utility vehicles, more efficient.

What are the implications for individual drivers? For the mobility ecosystem to work, each car requires a digital identity. They do, however, present the issue of privacy.

Your car’s digital identity can also be linked to your own distinct identity as a driver, which makes the car more secure with keyless entry using facial or voice recognition and biometric sensors.

Our innovation spotlight is on Foxconn, the Chinese manufacturing giant which makes the iPhone. Foxconn is developing an EV platform that any brand can use to bring vehicles to market —in the same way as the Android phone platform. Foxconn bets that the real differentiator in the future EV market won’t be looks or performance; it’ll be the array of connected features and AI capabilities they possess.

A connected mobility ecosystem is one of the trends emerging in the transportation and automotive industry. Download our report to discover more about this emerging trend.

#5 Older Drivers, Younger Drivers

The automotive trends influenced by the aging population and the changing expectations of Gen Z are creating significant changes. For older people, AI can help extend their driving lifetime. For the young, the big question is whether ownership will decline in favor of sharing and subscription mobility.

Late Millennial and Gen Z consumers are a post-ownership generation —they prefer renting to buying houses or vehicles. Car manufacturers have been trying to introduce the idea of Mobility-as-a-Service solutions, which replaces car ownership with car-sharing or subscription-based offers at a lower cost.

However, while Mobility-as-a-Service has had some successes in the bikes and e-Scooter sectors, especially in busy cities, it’s been tougher ask for cars.

Overall, we see a shift away from the brand to features and capabilities.

If you need more detailed information to help make decisions for your organization or brand, download the full report here.

To learn more, download the full report: Automotive Trends For 2022

To learn more about how these trends, download the full report. Alternatively if you’d like to speak to us to understand more about how these trends are playing out in your market, get in touch.

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The global health and wellness industry is booming. Already a top priority for many consumers pre-Covid, health and wellness has come into even sharper focus as a result of the pandemic. Research from McKinsey estimates that the global wellness market is worth $1.5 trillion and is growing fast – at a rate of 5-10% per year. But what are the big health and wellness trends for 2021 that brands need to watch?

Four key health and wellness trends for 2021

This blog post summarizes 4 key trends from our latest report: Health and wellness trends for 2021. These are:

  1. My health on my terms. Advances in tracking and testing are facilitating personalized health and nutrition recommendations on demand
  2. Mental fitness. Consumers will take a more proactive and preventative approach to mental health
  3. The science of sleep. The global sleep economy shows no signs of slowing down, but innovation in the category will be driven by a new focus on circadian health.
  4. Function at the fore. No longer limited to just physical health, brands are focusing on products to better the body and the mind.

Read the summary below or download the full report to learn more about these trends and how brands can respond. It contains inspiring cases studies of companies across the world who are innovating to capitalize on these trends.

1. My health on my terms

One of the most significant developments in health and wellness has been the rapid advances in tracking and testing, which are facilitating personalized health and wellness recommendations on demand.  

Wearables are becoming ever more sophisticated. The models on the market now allow consumers to track more granular metrics than ever before, with Mind Body Green hailing this a new era of “micro-tracking”. Not only are wearables collecting a wider range of data, they’re using this to better empower their users. Oura, for instance, the world’s first wearable ring, provides a “readiness score” to help users understand when they are at their best – both mentally and physically – as well as when they should focus on recovery.

Similar developments are happening in the world of testing, with companies springing up that allow users to complete a series of tests at home, and then personalize their recommendations based on this. We profile the best of these in the full report but the really interesting thing about these examples is that, for the first time, they have real potential to enter the mainstream. In the past, in-home testing has been a barrier to personalized health and nutrition, but now, greater familiarity with the concept as a result of the pandemic could open the door to new services which combine tracking with testing to create hyper personalized recommendations at speed.

There’s certainly interest in these kinds of services, with 88% of consumers in the US, UK and Germany prioritizing personalization in health and wellness as much as, or more than, they did in the past two to three years, according to the McKinsey study.

2. Mental fitness

Over the last decade, mental health has become an increasingly important part of the conversation when it comes to health and wellness. This has come into even sharper focus as a result of the pandemic. The impact of the virus and the resulting lockdowns have seen anxiety and depression skyrocket and, in line with this, mental health has become a key focus. In China, for instance, 87% of consumers are focused on taking care of their mental health, according to research by PWC conducted after the onset of the pandemic.

This isn’t a short- term trend. Research we conducted to determine which of the behaviors adopted during the pandemic will persist in the long-term found that undertaking activities to support mental health is one of the areas with greatest sticking power. Businesses are increasingly prioritizing mental health too. Recent research we conducted in partnership with Bloomberg found that 66% of companies are engaging an external vendor to provide healthcare / wellbeing training for their employees and half are looking to support employees with mental health and stress management.

In line with this growing recognition of the importance of mental health, we see the concept of mental fitness coming to the fore. What do we mean by this? This a move towards taking a more proactive and preventative approach to mental health, where consumers manage their mental health in the same way that they manage their physical health. The US is a market that’s really leading the way here. We’ve already seen a whole host of brands gaining traction but one of the most interesting is a company called Coa, which bills itself as the country’s first “mental health gym”. We profile Coa and other brands leading the way in our full report.

Free report

Health and wellness trends for 2021

The global health and wellness industry is going from strength to strength. Already important to consumers before the pandemic, health and wellness have come into even sharper focus, with the industry undergoing significant transformation in response to Covid.

To help brands navigate these changes, we’ve developed a new report exploring 4 key trends that will shape health and wellness in 2021, profiling the brands and innovations leading the way.

Download the report

3. The science of sleep

Sleep is big business – with the industry set to be worth a massive $585 billion by 2024 according to Statistica. The impact of the pandemic is fueling growth in this sector – with consumers placing an increasing emphasis on quality sleep against a backdrop of anxiety and stress.

This is leading to a more scientific approach to sleep. The Global Wellness Summit predicts that a new focus on circadian health will shape the products and services we see in the category. (A number of these – from a smart mattress to connected lighting – are profiled in our report.) Circadian health relates to aligning behaviors with our natural circadian rhythms – 24 hour cycles such as the sleep-wake cycle, which are influenced by external factors like natural light and temperature.

Shifting the way we think about sleep to place greater emphasis on circadian rhythms could have broader implications when it comes to other behaviors, for instance, disconnecting from devices before bed or the way we care for our skin, making this an interesting space to watch.

4. Function at the fore

The fourth and final big trend we see is a growing interest in functional food and beverages that support better physical and mental health. The most evident application of this is in the field of immunity boosting food and drink. According to re­search from Innova Market Insights, 60% of consumers globally are seeking out food and beverage products that support immune health and we’ve seen a seen a slew of product launches in this space as brands seek to capitalize on this trend. Increasingly, we’re seeing innovation extending beyond this to food and beverage products that support the mind. We feature the best of these in the full report. For brands looking to tap into this trend, this is a relatively nascent category so there’s real potential here, as well as for cross-over products to improve both physical and mental health.

To learn more, download the full report: Health and wellness trends for 2021

To learn more about how these trends, how they are evolving and the brands leading the way, download the full report. Alternatively if you’d like to speak to us to understand more about how these trends are playing out in your market, get in touch.

According to research from Dentsu, understanding what represents a permanent shift in behavior versus a temporary change is the top challenge facing marketers right now. Our latest research study sought to answer this question and separate the long-term trends from the short-term fads. In this blog post, we’ll summarize the key trends from the full report: Which behaviors will stick and which will subside in a world without restrictions?

The report identified 4 key behaviors that will stick in a world without restrictions, as well outlining areas that represent opportunity for innovation and those behaviors that are less likely to become lasting changes.

The 4 key behaviors from the report are:

  • Cooking from scratch
  • Creating special occasions at home with food and drink
  • Learning new skills online
  • Online shopping.

Read the summary below or download the full report to learn where behaviors across a range of categories placed. The report also explores how the key behaviors and areas of innovation explored in this blog post will develop in future, pinpointing trends for brands to capitalize on.

Our approach to understanding sticking power

The research was carried out with 3,400 consumers across 10 markets (US, UK, Singapore, China, India, Indonesia, Japan, the Philippines, Thailand and Vietnam). The approach combined consumer views about the future, with metrics to assess long-term sticking power, namely how well different activities deliver against a range of attributes that are important to consumers when adopting and sustaining new behaviors.

Key behaviors for the future

1) Cooking from scratch

In the food and drink space, the existing trend towards cooking from scratch has been further accelerated and should be considered a key behavior for the future. When asked what activities they planned to continue doing as a result of doing them more during the pandemic, 85% of consumers said cooking from scratch.

2) Creating special occasions at home with food and drink

Interestingly, the research also found that creating special occasions at home with food is another behavior that is set to last, suggesting an opportunity for indulgent supermarket dine-in deals and DIY restaurant meal kits well beyond the pandemic. These behaviors have clear implications for hospitality. 57% of consumers say that in a world without restrictions, they expect to be going out for drinks less than before the pandemic and we see a similar picture when it comes to eating out (53%).

3) Learning new skills online

Lockdowns saw consumers learning new skills online as a way to keep themselves entertained. Interestingly, this is key behavior for the future, although this is a trend that has most potential in Asia. In APAC and South East Asia, online behaviors such as learning new skills digitally and gaming increased to a greater extent than in the US and the UK, despite living under restrictions for a shorter period of time.

Chart showing how the pandemic has impacted digital behaviours

4) Online shopping

Unsurprisingly, online shopping for products other than groceries is another key behavior for the future. The impact of this on bricks and mortar stores will be significant, with over half of consumers (51%) telling us that in a world without restrictions, they expect to be physically browsing stores less frequently than before the pandemic. There are other challenges for retailers to navigate. With 22% of consumers across the 10 markets we surveyed having moved further away from work since the start of the pandemic (with the exception of Singapore) and 52% saying they intend to use public transport less than before COVID, companies will have to reconsider their retail footprint.

Opportunities for innovation

The research also revealed opportunities for innovation. These include better supporting consumers with:

  • Their mental health
  • Eating healthily
  • Online video streaming.

These are areas where there is a strong desire amongst consumers to continue the activity, but it doesn’t deliver as strongly against the key attributes that matter to consumers when adopting and sustaining new behaviors. As such, improvement with the existing products and services is needed to see sustained behavioral change, representing an opportunity for brands.

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Which behaviours will stick and which will subside in a world without restrictions?

Download the full report to see where behaviours across a range of categories placed and to learn more about how key behaviours will develop in future.

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Short-term solutions for Covid-only

Activities such as domestic holidays and working from home are likely to be short-term solutions for Covid-only. In some cases, working from home was an enforced behavior and is not feasible in the long term. Only 62% of consumers say that they are likely to continue working from home in future. Whilst working from home is perceived to be time saving and convenient, some consumers don’t find it very rewarding or enjoyable, reflecting much of the current discourse in the media about workers being zoomed out and missing social interaction. As such, flexible, rather than fully remote working is likely to have a more lasting impact.

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Low potential for lasting behavioral change

There’s also low potential for lasting behavioral change in the areas of socializing online, drinking alcohol at home and ordering takeout, which consumers are less likely to want to continue versus other behaviors in the study, and don’t deliver as strongly against the key attributes for adopting and sustaining behaviors.

Download the full report

To read the full findings, download the full report.

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It’s inevitable that we’ll see lasting behavioral change as a result of COVID-19. But determining which of the behaviors adopted during the pandemic will stick and which will disappear once restrictions come to an end is less clear-cut.

Catch up with the findings of Kadence’s latest study by watching the recordings below. The study, powered by Dynata with 3,000 consumers in 10 markets (US, UK, China, Japan, India, Singapore, Indonesia, Thailand, the Philippines and Vietnam), is designed to help brands understand what represents a permanent, versus temporary, change in behaviors.

Watch the APAC session

Watch the UK session

Watch the US session

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Looking ahead to the trends that will shape the coming year is a critical exercise for any business. But in 2021, this is perhaps more significant than ever. Consumer behavior has been transformed as a result of Covid-19, as many shifts in behavior have accelerated.

To understand the key trends to watch in Asia, we spoke to trend watching experts across our 8 offices in the region. Watch the video to hear their thoughts, or download the full report.

Free report

Which behaviours will stick and which will subside in a world without restrictions?

Download the full report to see where behaviours across a range of categories placed and to learn more about how key behaviours will develop in future.

Download now

Looking ahead to the trends that will shape the coming year is a critical exercise for any business. But in 2021, this is perhaps more significant than ever. Consumer behavior has been transformed as a result of Covid-19, as many shifts in behavior have accelerated. This blog post summarizes 5 key trends from our latest report Consumer Trends in Asia: 2021

  1. Vocal for local – Consumers are looking to support brands closer to home
  2. Looking for action – Consumers want to see brands having a positive impact on the community
  3. Racing towards a digital future – Online shopping is booming, ushering in new innovation
  4. Seeking value – Consumers are prioritizing value and saving more
  5. Health is wealth – We’re seeing a marked change in diets as consumers focus on health

Read the summary below or download the full report to learn more about consumer trends in Asia in 2021 and what your business can do to capitalize on them. It’s packed full of insight and analysis from local experts across our 8 Asian offices – China, India, Singapore, Thailand, Vietnam, Indonesia, the Philippines and Japan – and contains inspiring examples of brands successfully tapping into these trends.  

1. Vocal for local – Consumers are looking to support brands closer to home

The economic turmoil of Covid-19 has made consumers more conscious than ever of the impact of their purchase power. In light of this, we expect one of the big consumer trends in Asia in 2021 to be supporting local brands.

In some markets this is manifesting itself in a wave of support for national, rather than global brands. India and China are two markets where this is happening. In India, Prime Minister Modi’s strategy to aid economic recovery in the country is to focus on local manufacturing and supply chains and to encourage Indian consumers to support Indian brands. In response local brands have leveraged this messaging in their marketing campaigns, further promoting the concept. In China, we also see consumers looking to purchase from homegrown brands rather than global companies. This trend was already underway, due to international trade tensions and the growing popularity of Chinese brands, but it has been accelerated further by Covid-19.

In other Asian markets, we’re seeing the emergence of hyper-localization. Now spending more time at home and recognizing the companies that helped them during the height of the pandemic, we are seeing consumers looking to support businesses in their local neighborhoods through challenging economic times.  This is very much a continuation of the behaviors of the behaviors we saw at the onset of the pandemic. In Japan, for instance, the 応援消費  (consume to support) movement went viral, and whilst in Indonesia, consumers were encouraged to #belidariteman (buy from a friend). This sentiment is likely to be important in 2021 and beyond, particularly in the food and drink industry as our research Understanding the impact of Covid-19: Food industry trends for 2020 and beyond indicates. When asked which of the behaviors they’d adopted in the pandemic that they’d continue in future, 42% of Asian consumers told us they plan to continue supporting local food and drink brands, the second highest of any behavior.

2. Looking for action – Consumers want to see brands having a positive impact on the community

When we think ahead to 2021, we mustn’t underestimate the impact of the pandemic. Covid-19 has caused many people to reconsider what is important to them and this has extended to their relationship with brands. Our Brands Exposed research, exploring how Covid-19 has changed expectations of marketing and brands, found that 63% of Asian consumers think that brands need to re-evaluate their role in society in a post-Covid world.

There’s also an expectation that brands need to do more to support the communities they serve, a trend that is more prevalent in Asia than it is in the West. 63% of Asian consumers believe that organizations have a responsibility to contribute financially to their communities, compared to 43% in the US and 51% in the UK. They’re also appetite to see brands going further, leading meaningful initiatives in their communities – 58% of Asian consumers believe this to be importance, compared to just 41% in the US and 46% in the UK.

So what does this mean for brands looking to make their mark in Asia? One thing’s for sure – brands need to be prioritizing actions over words, providing evidence of the steps they are taking to make a difference and the impact that this is having. And this isn’t just confined to the B2C space. Our recent work with Bloomberg understanding the attitudes of business decision makers across 6 markets in Asia and Australia found that 56% are looking for brands that are protecting the underprivileged and vulnerable and a further 56% want to see brands using their resources to give back to society.

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Which behaviours will stick and which will subside in a world without restrictions?

Download the full report to see where behaviours across a range of categories placed and to learn more about how key behaviours will develop in future.

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3. Racing towards a digital future- online shopping is booming, ushering in new innovation

Seismic regional and global events have often act as a catalyst for behavioral change and innovation – and Covid-19 is no exception.

In response to regulations, businesses and consumers have adopted online solutions at a rapid rate. In some markets like India this has been accompanied by governmental action to provide digital connectivity in remote rural areas and to low income groups, enabling the delivery of basic services during this time. As such, some demographic groups have experienced the benefits of online shopping for the first time.

Others, already accustomed to shopping online, are doing this more and spending in new categories such as grocery and personal care according to a survey of digital consumers in 6 Asian markets from Bain and Facebook. The research suggests that this represents a permanent shift in behaviors. 83% of those surveyed said they are likely to continue increased spending online after the pandemic. These behaviors aren’t just confined to younger people. There are significant numbers (35%) of older people – aged 55 and over – that share this sentiment.

In response to the rapid growth of online shopping we’re seeing innovation in this space. From shopstreaming in China to a new breed of influencers in Japan, you can read more in the full report.

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4. Seeking value – Consumers are prioritizing value and saving more

The Bain and Facebook study also provides interesting insights into consumers’ attitudes towards personal finance in this period. 57% of the consumers surveyed are prioritizing value for money in their purchases. They are also saving more. The study found that 60% are planning to put more money aside in future and that Asian consumers are two times more likely to start saving more after the crisis than their American counterparts. We see this reflected in our own data, as consumers cut back on non-essentials in Thailand.

Against this backdrop, companies across all sectors will have to work harder to get consumers to part with their cash, clearly articulating the benefits and value of their products, and focusing on building customer loyalty to avoid switching.

5. Health is wealth – We’re seeing a marked change in diets as consumers focus on health

Health has been a big focus in 2020 and we expect this to continue, with it being one of the big consumers trends in Asia to watch for 2021. Our research with Bloomberg reflects this, with 67% of business decision makers across Asia and Australia telling us that taking care of their personal and family’s health is more important than ever.

This is playing out in a number of ways, first and foremost in diets. Our report, Understanding the impact of Covid-19: Food industry trends for 2020 and beyond, found that 59% of  Asian consumers believe that what they eat and drink has changed from the better, with only 6% stating their diet has changed for the worse. This represents a marked difference to Western markets – where just 24% of Americans and 34% of Brits believe what they’re eating has improved. In line with this renewed focus on health, the majority of consumers are also cooking more for themselves and consuming more fruit and vegetables than before the onset of the pandemic. This indicates a opportunity for food and beverage brands to develop healthier versions of their products and support consumers in cooking healthy meals from scratch – be that through recipes or product launches.

But health goes beyond just diet. There’s also a greater emphasis on fitness and on mental health, with PwC reporting that in China, 87% of consumers are focused on taking care of their mental health. There are numerous opportunities for brands to support consumers in these areas, which we analysis in detail in the full report.  

To learn more, download the full report: Consumer Trends Asia: 2021

To learn more about how these trends are playing out in each market, our analysis of the implications of these trends and success stories of brands making inroad in these areas, download the full report.

Alternatively, if you’d like our support in understanding the changes taking place in your key markets and how you can capitalize on these, please get in touch.