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

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

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

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

Yet, many companies still operate with outdated digital commerce models built for Western markets.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

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

Who Are the Next Billion Shoppers?

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

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

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

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

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

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

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

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

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

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

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

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

How Brands Can Win the Next Billion Shoppers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How Global Brands Can Win in the Next Billion Market

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

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

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

  • Market Research Can’t Be an Afterthought

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

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

  • Think Beyond Translation – Create Market-Specific Storytelling

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

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

  • Build for Mobile-First, Low-Bandwidth Markets

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

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

  • Payment and Fulfillment Must Be Localised

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

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

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

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

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

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

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

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

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

The Time to Adapt Is Now

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

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

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

On a humid Friday evening in Bangkok, a 29-year-old marketing executive taps through her banking app. She’s just paused her subscription to a second-tier streaming platform and declined an invite to a weekend brunch. But on her walk home, she stops at the Dior counter and buys a lipstick she’s been eyeing for weeks. It’s the one indulgence she’s allowed herself this month. “I cut back on everything else,” she tells a colleague. “This just makes me feel like me.”

Her behaviour isn’t an anomaly – it’s a signal. Around the world, consumers are quietly renegotiating the terms of luxury. While macroeconomic forces push people to trim budgets, many are still carving out space for small, strategic indulgences. Austerity no longer looks like elimination; it looks like prioritisation.

Call it frugal luxe, quiet indulgence, or strategic spending – this is not irrational behaviour but a recalibrated consumption model shaped by the emotional utility and financial realism. Consumers are trading down in broad categories – opting for private-label groceries, reducing ride-hailing use, cancelling entertainment bundles – yet they’re unwilling to let go of the symbols that anchor identity, aspiration, or routine.

The global backdrop is undeniable: inflation remains sticky in many economies, wages are lagging, and discretionary income is under strain. In the U.S., the consumer savings rate hovers below pre-pandemic norms. In Southeast Asia, rising living costs are altering middle-class consumption. In the U.K., nearly half of adults report having to cut back on non-essential purchases. And yet, prestige beauty sales are rising. High-end skincare, fragrance, and entry-point luxury fashion continue to perform.

This isn’t a contradiction. It’s a redefinition of value. And the brands that thrive in this moment won’t be those who offer the cheapest price – but those who understand the psychology of what consumers are still willing to pay for.

Because in an era of smarter spending, winning share of wallet means first earning a place in the consumer’s hierarchy of emotional needs.

The Rise of Frugal Luxe – A Global Snapshot

What began as anecdotal “lipstick effect” spending has evolved into a full-fledged global pattern: consumers are not abandoning consumption – they’re curating it. The frugal luxe mindset is not about depriving oneself, but about making deliberate, emotionally resonant choices under constraint.

Across geographies, data shows a clear shift. McKinsey’s 2024 Global Consumer Sentiment Survey found that 72% of consumers across developed and emerging markets report adjusting their spending behaviours, with the most common action being the substitution of high-cost items for lower-cost alternatives – except in categories they deemed “self-care” or “identity-reinforcing.” In Southeast Asia, a Bain & Company study noted that while middle-class households are spending less on dining out, they are spending more on skincare, small electronics, and niche fashion – categories where brand and aesthetic still hold value. In the U.S., prestige beauty grew 14% year-over-year in 2023, even as overall discretionary spending declined. In the U.K., Boots saw record sales in luxury fragrances priced under £50, many sold alongside budget groceries.

This is not a repeat of post-2008 frugality. Then, the consumer response was often to pull back across the board, saving as a virtue. Today’s frugality is more calculated than moralistic – and driven by a more sophisticated understanding of trade-offs. It’s not about saving for saving’s sake; it’s about cutting what doesn’t serve and keeping what does. That distinction is critical.

The economic pressures underlying this shift are real and persistent. Inflation has plateaued but remains elevated in key markets. Real wage growth is marginal. In many urban centres, rent and utility costs are consuming a larger share of monthly income than at any time in the past decade. But consumers are not reacting passively. They are actively reshaping their personal economies, determining where to trade down and where not to compromise.

Crucially, frugal luxe behaviour is not confined to one cohort. Gen Z is driving it with curated shopping habits and value-hunting sophistication, but Millennials and even Gen X are adopting similar strategies. What’s shared is the intentionality. Consumers are no longer passively consuming – they are performing economic self-optimisation, informed by a steady stream of content that frames “smart spending” as a lifestyle.

Platforms like TikTok and Instagram have normalised “dupe culture” – where users show off how they scored a product that looks like luxury but costs a fraction. Yet in the same feed, those same users will unbox a full-priced Diptyque candle or a single-item designer purchase. The message is not “buy less,” it’s “buy selectively.”

Globally, this has begun to reshape categories. In Japan, the longstanding culture of quality-over-quantity spending (known as shinayakana seikatsu) has found resonance with a younger generation of minimalists who still value premium skincare. In India, beauty brands are reporting a decline in full-sized product sales, but a rise in discovery kits and refillables. In Brazil, mid-market fashion is struggling while resale luxury and independent accessories brands thrive.

Across markets, the conclusion is the same: value is no longer binary. It’s not “luxury vs. bargain” – it’s “what justifies its place in my life?” Brands that misread this as simple downtrading risk irrelevance. Those who tune into this nuance will find opportunity – not just to sell more, but to sell smarter.

The Psychology Behind It – Why We Splurge While We Cut

At first glance, the frugal luxe mindset seems contradictory: a consumer balks at a $6 coffee subscription but buys a $75 serum without hesitation. Economically, it’s inconsistent. Psychologically, it’s perfectly rational.

This is where market dynamics intersect with behavioural economics. In times of uncertainty, people tend to seek out control, reward, and reinforcement – especially when broader financial agency feels compromised. These micro-luxuries become not just products, but emotional instruments: ways to reassert identity, regain a sense of choice, and anchor personal value.

Historically, this has played out before. The “lipstick effect” – a term coined during the early 2000s recession and later observed after 9/11 and in the 2008 financial crisis – described how consumers cut back broadly but still spent on small luxury items, particularly in the beauty category. Today’s version is more sophisticated. It’s not just about lipstick. It’s about emotional return on investment.

This is emotional ROI at work: the subconscious calculation consumers make when deciding whether something is “worth it” not just financially, but emotionally. That $75 serum isn’t just skincare – it’s a commitment to self-care. A branded candle isn’t just scent – it’s sanctuary in a chaotic world. These purchases are rarely made out of impulse alone. They’re rationalised, budgeted, even anticipated. In that sense, they offer the predictability that macroeconomic conditions lack.

Research from Deloitte confirms this. In a 2023 global consumer survey, 64% of respondents said they were more likely to buy products that made them feel emotionally secure, even if those products were non-essential. The strongest responses came from younger consumers, who reported using small purchases as a way to cope with financial stress and identity instability. This is less about indulgence, and more about calibration: consumers are rebalancing their mental and emotional portfolios as much as their financial ones.

Psychologists also point to the role of aspirational continuity. Consumers may be delaying larger goals – home ownership, international travel, luxury fashion – but they still want symbols of progress. A small luxury becomes a token of staying on track. This is particularly pronounced in status-driven categories like fragrance, skincare, and branded accessories, where even a single item can carry heavy semiotic weight.

There’s also a visibility factor. In the age of social media, consumer choices are publicly narrated. Selective spending allows people to maintain an aesthetic or aspirational identity while privately cutting costs elsewhere. In effect, frugal luxe is not just a financial strategy – it’s also a performance of resilience.

Understanding this nuance is critical for brand strategists. Consumers are not spending irrationally. They are optimising emotional impact per dollar, seeking meaning, identity, and autonomy through purchases that feel earned – even if they seem extravagant on paper.

For brands, the opportunity lies not in asking, “Will they buy?” but “What role does this play in how they see themselves?”

Case Study: ASAI Hotels and the Art of Intentional Hospitality

Image credit: ASAI Hotels

In a market where consumers are trimming excess but still seeking meaning, ASAI Hotels offers a blueprint for how travel brands can deliver premium experience without premium pricing. Launched by Dusit International in 2020, ASAI was purpose-built for the frugal luxe traveler – those who want design, culture, and quality, but none of the gilded frills.

Instead of scaling luxury down, ASAI redefines it. Properties are lean by design – compact rooms, limited staff, no banquet halls or sprawling lobbies – but everything a modern traveler values is thoughtfully elevated. Beds are comfortable, showers rainfall, Wi-Fi fast. Public areas double as co-working spaces and social hubs. And in a strategic move that’s as cultural as it is commercial, each hotel is embedded in a local neighbourhood, with a restaurant curated by local chefs and partnerships with nearby artisans, vendors, and guides.

This is not budget travel in disguise. It’s travel edited with intention. ASAI’s Bangkok Sathorn location opened with rates under USD $50 – a striking value in one of Asia’s most visited cities – but paired with Michelin-linked cuisine and locally inspired interiors. Guests don’t feel like they’re compromising. They feel like they’ve discovered something smarter.

What sets ASAI apart isn’t just the product – it’s the philosophy. From agile pricing packages to curated local experiences, the brand is engineered for the consumer who’s making trade-offs, but still wants to feel indulgent. Flexible cancellation policies, digital check-in, and concierge-style staff interactions cater to the desire for both control and care.

And it’s working. ASAI properties consistently receive high ratings for value, design, and service. The brand has expanded beyond Thailand into Japan and the Philippines, proving that its blend of affordability and authenticity has cross-border appeal.

In an era where travel is more intentional, ASAI has found the sweet spot: luxury reimagined as locality, quality, and thoughtful restraint. It’s a case study in what happens when hospitality listens closely – not just to how much travelers want to spend, but to what they want that spending to feel like.

Frugal Luxe in Practice – How It’s Changing Beauty, Fashion, and Travel

The frugal luxe mindset isn’t just influencing what people buy – it’s reshaping entire industries in how they develop, price, and market their offerings. Nowhere is this more visible than in beauty, fashion, and travel – sectors that sit at the intersection of identity, aspiration, and everyday ritual.

Beauty: Dupes and Devotion

Beauty is perhaps the clearest expression of frugal luxe in action. Consumers are cutting costs in functional skincare – opting for no-frills, dermatologist-backed drugstore brands – while still spending on hero products and signature scents. The rise of “dupe culture” – where TikTok influencers promote affordable versions of luxury products – hasn’t killed premium beauty. Instead, it has redefined what’s worth paying full price for.

Take Rare Beauty, which straddles affordability and prestige with minimalist packaging and emotionally resonant branding. In Southeast Asia, Korea’s Olive Young chain is thriving by offering shoppers both budget K-beauty staples and cult-favorite luxury imports. Meanwhile, direct-to-consumer platforms like Beauty Pie (UK) allow users to subscribe to access prestige formulas at wholesale prices – frugality without sacrifice.

Sales figures reflect this duality. While mass beauty volumes have remained flat, prestige beauty in the U.S. grew 14% in 2023 – driven not by breadth, but by a focus on high-performing or emotionally charged SKUs. The consumer isn’t buying more. They’re buying more intentionally.

Fashion: Capsule Thinking and Conscious Curating

In fashion, consumers are trading volume for selectivity. Capsule wardrobes – minimalist, mix-and-match collections anchored by a few standout pieces – are on the rise. Luxury resale platforms like Vestiaire Collective and The RealReal are growing in both inventory and credibility, as consumers seek quality without the markup. The resale market is projected to double by 2027, according to ThredUp’s 2024 report.

Brands are adapting. Zara has introduced higher-end “premium” capsules. COS and Arket are elevating materials and tailoring. In Asia, Taobao’s Luxury Pavilion is bridging mainstream ecommerce with designer credibility. The common thread is discretion over display. Quiet luxury, less logo-heavy but still recognisably refined, appeals to a frugal luxe buyer who wants lasting value, not viral novelty.

Fast fashion isn’t dead – but it’s being used differently. Consumers might wear high-street basics for casual or invisible moments, while saving higher-priced pieces for more visible or identity-expressive occasions. Spending is being segmented not by category, but by context.

Travel: Trade-Offs, Not Cutbacks

Even in the travel sector – often the first to be trimmed during downturns – frugal luxe is shifting patterns. Consumers are taking fewer trips, but spending more on personalisation, experience, and wellness. Budget flights are paired with boutique hotels. Three-day getaways are traded up with Michelin-starred meals or spa packages. Travel is no longer about how far, but how meaningful.

Brands are adjusting accordingly. Luxury travel providers are offering shorter packages with high-touch service. Airlines are upselling “premium economy” tiers with lounge access and upgraded meals. The success of Airbnb Luxe and wellness retreats like Aman Essentials shows that even value-conscious travellers are willing to invest – in the experience feels transformative.

Even Google searches reflect the pivot. In 2024, searches for “affordable luxury travel” and “best value boutique hotels” outpaced traditional terms like “cheap flights” or “budget vacations.” The language of frugality is evolving, and so are the offerings designed to meet it.

How Brands Are Adapting – Strategy Shifts Across the Market

Brands that once relied on abundance, visibility, or exclusivity are now being challenged to respond to a consumer who shops with intent, scrutinises value, and mixes luxury with restraint. Frugal luxe doesn’t mean less opportunity – it means demand for sharper, more strategic brand behaviour.

In beauty, fashion, and consumer goods, companies are rethinking not only pricing architecture, but positioning, messaging, and innovation pipelines. Tiered offerings – once used to ladder customers into prestige pricing – are now reversed. Entry-level luxury products are becoming lead sellers, not loss leaders. Dior’s Addict Lip Glow, Chanel’s Les Beiges Water Tint, and Le Labo’s travel-size scents are all examples of luxury distilled into a smaller, more accessible form – without losing cachet.

This has led to a rise in what analysts call “masstige”: prestige aesthetics at mass-market prices. But masstige has matured. It’s no longer about watered-down versions of designer goods. It’s about embedding value signals – ingredient quality, design, performance – into more approachable formats. Think of Glossier’s minimalist packaging, or Uniqlo U’s designer-led capsule collections. Even Apple has leaned into this zone, positioning older iPhone models as aspirational entry points for Gen Z.

Luxury groups are also evolving. LVMH and Kering have emphasised scarcity, small drops, and storytelling – leveraging limited availability over scale. On the other end, mass retailers are racing to elevate their image: Target’s partnership with designer brands, Boots stocking premium beauty, and H&M launching higher-end home collections. Everyone is meeting in the middle, because that’s where the frugal luxe consumer lives.

Pricing strategy is only part of the story. Messaging has also shifted from status to discernment. Ads no longer shout. They whisper – implying intelligence, curation, and insider knowledge. Brands are moving away from overt luxury cues and toward emotional narratives: empowerment, craftsmanship, quiet confidence. This reflects a deeper shift: luxury is no longer about proving wealth. It’s about affirming self-worth in an uncertain world.

Technology is helping brands track these nuances in real time. AI tools allow marketers to test price elasticity across segments, optimise product mix, and personalise offers based on behavioural signals. Subscription data, refill rates, and post-purchase engagement now drive product development cycles more than focus groups. This enables continuous recalibration of what the customer considers “worth it.”

Even loyalty programs are being reimagined. Cashback is no longer compelling. Instead, brands offer early access, customisation, or social recognition. For a frugal luxe consumer, feeling valued is more motivating than saving money.

Some of the smartest adaptations are happening in emerging markets, where middle-class consumers are under greater financial pressure – but no less brand-attuned. In India, Nykaa uses data-driven bundling to pair affordable essentials with aspirational trial-size products. In Vietnam, localised DTC brands position themselves as “premium but practical.” In Mexico, curated marketplace models are growing – offering shoppers a mix of imported luxury and local craftsmanship at frictionless prices.

The core shift is this: consumers are no longer trading down because they’re disengaged from brands. They’re trading strategically because they’re more discerning. To win this audience, brands must think less about price points and more about permission – have you earned the right to be their one splurge?

That’s a higher bar – but a more loyal customer when cleared.

Research and Innovation in the Frugal Luxe Era

To adapt to the frugal luxe consumer, brands need more than instinct – they need precision. The same buyers who once followed broad loyalty patterns are now driven by a mix of psychology, price sensitivity, and emotional return. Understanding where they draw the line between indulgence and excess requires a new kind of consumer insight – one grounded in nuance, not averages.

That’s why the most future-focused brands are turning to agile, continuous research models. Traditional quarterly surveys and segmentation reports can’t keep pace with fast-changing consumer behaviour. Instead, leading companies are investing in longitudinal panels, rapid user testing, and scenario-based modelling to predict what consumers will splurge on next – and what they’ll drop without hesitation.

In beauty, brands like Sephora and Charlotte Tilbury use shopper feedback loops tied to SKU-level sales data to refine product mix in real time. In fashion, resale platforms analyze upload frequency and price elasticity to anticipate consumer fatigue or desire. And in luxury travel, customer journey mapping isn’t just about destinations – it tracks sentiment shifts around personalisation, sustainability, and perceived self-reward.

Beyond product, brands are rethinking innovation itself. Design-to-value models, once reserved for industrial engineering, are now being applied to consumer goods – ensuring that every feature, material, and format in a product serves either performance or emotional payoff. Packaging is lighter, messaging more focused, and hero SKUs are prioritised over bloated portfolios.

This moment also invites rethinking how value is communicated. Research shows that consumers are more likely to buy when they feel “in on the decision” – when the brand speaks to them as collaborators, not targets. That means transparent storytelling about sourcing, science, and savings – not just brand heritage or exclusivity.

In the frugal luxe economy, innovation isn’t about premiumisation for its own sake. It’s about designing products and experiences that feel earned. And the brands that lead won’t be those who guess right – but those who listen smarter.

Frugality as a Lifestyle, Not a Phase

What began as a reactive shift in consumer behaviour is fast becoming a structural one. Frugality is no longer seasonal or circumstantial – it is being integrated into the architecture of daily decision-making. The frugal luxe mindset isn’t a temporary belt-tightening – it’s a new blueprint for value.

In this emerging paradigm, traditional market signals are losing their predictive power. Income is no longer a reliable proxy for spending intent. Brand awareness doesn’t guarantee brand loyalty. Even sentiment data, unless layered with behavioural nuance, risks misdiagnosis. Consumers are more fluid than the models designed to capture them.

For strategists and researchers, this demands a reset. Legacy frameworks built around “value vs. premium” binaries or static personas can’t keep up with a consumer who is simultaneously trading down and trading up – sometimes in the same basket. The next generation of research will need to map micro-intentions: how consumers compartmentalise indulgence, what triggers rationalisation, and which categories become immune to compromise.

Foresight leaders are already shifting from tracking what people buy to decoding why they justify it. That requires not just data but empathetic intelligence – a blend of qualitative depth, contextual listening, and scenario-based modelling that captures the emotional calculus behind the cart.

The question for brands is no longer “how do we sell more?” It’s “how do we matter in a world where fewer things get bought, but those few are chosen with surgical precision?”

Because frugal luxe isn’t just a response to economic pressure – it’s a reflection of cultural evolution. Consumers aren’t retreating. They’re refining. And the brands that rise to meet them will be those that understand the mindset behind the money – not just the movement of it.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

A new round of tariffs is forcing global brands to rethink their pricing strategies. The United States has announced sweeping import duties – raising tariffs on Chinese electric vehicles to 100%, with additional increases targeting semiconductors, critical minerals, solar cells, and steel. While reminiscent of the 2018 trade tensions, these measures land at a more fragile economic moment. Other countries are expected to respond, further tightening the vise on businesses already navigating slim margins and inflation-fatigued consumers.

Though tariffs are levied on importers, their cost typically travels downstream, landing with the end consumer. The difference this time is timing. These duties follow nearly four years of relentless inflation, with household budgets already strained by higher prices on everything from groceries to rent.

In March 2024, the Federal Reserve Bank of New York reported that median household expectations for inflation remained stuck at 3% – a full percentage point above the central bank’s target. At the same time, spending growth has softened. Consumers aren’t just noticing higher prices. They’re changing how they shop.

According to PwC’s Global Consumer Insights Pulse Survey, 69% of shoppers said they’ve reduced non-essential spending due to rising prices. Nearly one in three said they’d switched to cheaper brands or private labels. Forty-three percent reported actively seeking out discounts or promotions.

The dilemma for brands is clear. Raise prices and risk losing share to lower-cost rivals, or absorb the tariffs and compress margins already under strain. Neither path is easy – especially in categories where loyalty is thin and substitutes are plentiful.

However, there is an opportunity – if brands have the right tools. Pricing isn’t guesswork. With behavioral research and elasticity modeling, businesses can test how consumers respond to different price points long before making changes. In markets where product origin influences perception, measuring how price interacts with sentiment and substitution has never been more critical.

Pricing Models for Navigating Demand Shifts

ModelBest Used ForStrength
Van WestendorpIdentifying acceptable price rangesFast, directional, simple to implement
Gabor-GrangerEstimating price sensitivityUseful for product-level pricing
Conjoint AnalysisTesting price, feature, and origin trade-offsReveals real-world decision patterns
Discrete ChoiceForecasting market share under price scenariosIdeal for competitive or global pricing

The pricing question isn’t binary. It’s not just whether to raise prices – but when, where, and for whom. Brands that are navigating this moment well aren’t reacting. They’re measuring.

Where the Pressure Hits First

These price hikes aren’t hypothetical. They’ve already begun to ripple through procurement and supply chains. In May, the US approved sweeping tariff increases on $18 billion worth of Chinese imports. The most visible: electric vehicle tariffs jumped from 25% to 100%. Other affected goods include semiconductors, batteries, medical equipment, and industrial metals. While the policy aims to safeguard strategic sectors, the short-term effect is clear – brands that depend on global sourcing are now facing higher input costs almost overnight.

For US-based manufacturers reliant on overseas inputs, the new tariffs are immediately disruptive. In sectors like electronics and electric vehicles – where China dominates component supply – there are few near-term alternatives. Benchmark Mineral Intelligence reports that China accounts for more than 70% of global battery cell production and over 80% of refined lithium. Reorienting supply chains isn’t just expensive. It’s logistically constrained.

Other categories – apparel, home goods, and consumer electronics – face similar vulnerabilities. The American Apparel & Footwear Association estimates that 40% of all clothing sold in the US  still comes from China. Even brands that have diversified sourcing rarely achieve full exits. Standing up new capacity requires capital, workforce training, and time – particularly when quality control and speed to market are critical.

Retailers, too, are under pressure – especially in categories where shelf prices are watched closely and loyalty runs thin. In recent earnings calls, both Walmart and Costco flagged tariff-related risks. Walmart said it was actively scenario-planning for affected segments like electronics, appliances, and furniture. These are areas where private-label competition is fierce and price sensitivity is high. Passing along cost increases without losing volume is far from simple.

In food and beverage, tariff exposure goes beyond ingredients – it extends to packaging, machinery, and imported inputs across the value chain. Margins are already thin, and pricing missteps are less forgivable. While grocery inflation has eased since its 2022 peak, consumer memory is long. Kantar data shows that even small price hikes in 2024 prompted shoppers in the UK to trade down, boosting private-label share across nearly every category.

For many brands, the challenge isn’t just cost – it’s timing. Companies entered 2024 anticipating relief after three years of inflation. Instead, tariffs introduced fresh volatility at the exact moment consumers have become more price-sensitive – and less tolerant of surprises at the register.

Calibrating the Right Price

Inside boardrooms and pricing teams, one question repeatedly surfaces: How much can we raise prices before we lose the customer? Instinct won’t cut it. Brands need to quantify demand before it disappears.

At its heart, price sensitivity is about perception – how much a product feels worth paying for and how much slack a brand has before customers balk. That perception isn’t fixed. It shifts depending on the brand, the category, the context, and what else is on the shelf. This is why pricing research has moved from nice-to-have to necessity for companies under policy or cost pressure.

One of the most enduring tools is the Van Westendorp Price Sensitivity Meter. Developed in the 1970s, it remains in use because of its clarity: consumers are asked when a product feels like a bargain, too cheap to trust, starting to feel expensive, or too pricey to consider. From this, brands map an acceptable price range – a range that has narrowed in recent years as consumers react to repeated cost shocks, from freight to fuel to tariffs.

In categories like electronics, beauty, and automotive, price is only part of the equation. To understand what really drives purchase decisions, many brands turn to conjoint analysis – a survey-based method that models how consumers weigh trade-offs between price, brand, features, country of origin, and other factors. By asking shoppers to choose between product bundles, researchers can identify which elements hold the most value.

If shoppers consistently choose a slightly more expensive product because of its origin, that insight can help brands assess whether absorbing tariffs – or moving production – is worth it. It also flags which segments are less price-sensitive and more loyal, a crucial distinction when margins are thin and every unit matters.

Another widely used method is Gabor-Granger pricing, which measures purchase intent at different price points to estimate elasticity. It’s often used when decisions need to be made quickly or across a large product portfolio. While it doesn’t account for competitors, it can show where price increases are likely to hit hardest – or go unnoticed.

Many companies are now layering these models with real-time data – from loyalty programs, e-commerce behavior, and even point-of-sale heat maps – to fine-tune pricing down to the SKU. A 2023 McKinsey report found that brands using dynamic, data-informed pricing strategies saw profit lifts of 2% to 7%, even in flat-growth environments.

Pricing is no longer just a finance exercise. It now draws from behavioral science, brand strategy, and competitive analysis. When costs move quickly – and tariff rules shift with little warning – brands that understand what drives the willingness to pay are better equipped to make smart, fast decisions.

Strategy Under Pressure

A poorly timed price move doesn’t just hurt margins – it can shift entire market dynamics. Over the past five years, brands across sectors have faced rising costs, disrupted supply chains, and increasingly price-sensitive consumers. Some adjusted early and carefully. Others misjudged their customers – and paid for it. The gap between them highlights how well-informed pricing can build trust, while a misstep can fast-track brand erosion.

In 2018, Whirlpool welcomed tariffs on imported steel, betting they would level the playing field for domestic manufacturers. But as raw material costs climbed, so did Whirlpool’s prices – while rivals adjusted sourcing and held firm. By mid-2019, demand had slipped in the company’s key North American appliance segment. Shipments fell, and its early advantage vanished. Whirlpool had overestimated the power of patriotic branding and underestimated how quickly price gaps could trigger customer defection.

Uniqlo took a different path. In 2022, its parent company, Fast Retailing, raised prices only on high-demand products like its HEATTECH thermal line – leaving basics untouched. Executives framed the move not as a response to inflation, but as a reflection of better materials and improved quality. That message was delivered consistently to both consumers and investors. By the end of fiscal 2023, Fast Retailing had posted record profits, and Uniqlo remained one of Japan’s most trusted brands.

PepsiCo chose a quieter strategy. Faced with rising input costs in its Frito-Lay division, the company trimmed pack sizes while keeping sticker prices unchanged – a textbook case of shrinkflation. It didn’t announce the change, but shoppers picked up on it. Social media backlash followed, but unit economics held steady. In 2022 and 2023, PepsiCo posted revenue growth of 8.7% and 9.5%, crediting “responsible pricing” and sustained brand investment.”

In many markets, price tension didn’t boost brands – it boosted private labels. In the UK, store-brand sales surged as national brands introduced a string of small, poorly communicated price increases. Tesco’s Clubcard data revealed that consumers weren’t simply trading down – they were abandoning brands that no longer justified their price. By late 2023, Kantar reported that private labels made up over 52% of UK grocery sales, a level last reached during the global financial crisis.

These case studies don’t share a common tactic. What they share is calibration. The brands that got it right knew how far they could go – and with which segments. Some paired pricing shifts with clear messaging. Others moved quietly, trusting in long-term loyalty. But all respected the limits of what their customers would accept.

Good pricing does more than protect margins. It builds trust, reinforces perceived quality, and – most importantly – avoids unpleasant surprises. In markets where small increases can trigger a switch, clarity and timing matter as much as the number on the tag.

The Strategic Trade-Offs

Companies squeezed between rising costs and price-sensitive customers tend to reach for one of four levers: absorb the cost, raise the price, shrink the product, or redesign it. None are simple. Each carries risk. And the real challenge isn’t which tactic to use – but how to execute it without weakening brand equity or long-term pricing power.

Absorbing higher costs can maintain customer goodwill – but it’s rarely sustainable. In low-margin sectors like grocery and apparel, taking on even a 10% cost increase from tariffs or wages can wipe out profits. It might buy time, but without gains in volume, efficiency, or product mix, it’s a short-term fix with long-term limits.

Shrinkflation – reducing pack sizes while keeping prices flat – remains a go-to strategy in food and household goods. It works best where packaging disguises quantity changes and price comparisons happen by eye, not unit weight. But shoppers notice. A survey found that 64% of US  consumers viewed shrinkflation negatively, and nearly half said it made them more likely to switch brands. The fallout is often reputational, not immediate – but in a loyalty-fragile market, perception matters.

For some brands, reshoring or diversifying supply chains is a way to hedge against tariff risk. Apple, for example, has invested heavily in moving production from China to India and Vietnam – not just for tariff relief, but to reduce geopolitical exposure. These shifts are slow and costly. Quality control, lead times, and logistics all become more complex. For most mid-sized firms, the barrier isn’t intent – it’s feasibility.

Dynamic pricing, once used mainly by airlines and ride-hailing apps, is gaining ground in retail. Powered by real-time data, it lets brands adjust prices based on demand, inventory, or market conditions. While rare in physical stores, it’s now common online. Amazon’s algorithm reportedly makes millions of daily changes to test what shoppers will tolerate. The danger lies in consistency. If pricing feels arbitrary or unfair, trust can fray – especially in categories where stability has long been the norm.

Some brands are taking a tiered approach. They hold prices steady on high-volume, price-sensitive products while testing increases on premium or niche lines. Others bundle extras – free shipping, loyalty rewards, extended warranties – to reframe value without raising list prices. These tactics don’t erase costs, but they redirect attention from the price tag to the perceived benefit.

These strategies differ in form but share one thing: insight. Brands that understand where price elasticity stretches – but doesn’t snap – are far better equipped to make changes that hold. That understanding doesn’t come from spreadsheets alone. It comes from consistently measuring how real consumers respond in the moment.

Price isn’t just a number. It’s a signal – to customers, competitors, and shareholders – of what a brand values, and how well it understands its market.

Pricing in a Slower Growth World

There is no universal playbook for navigating price hikes during a period of soft demand. But companies that treat pricing as a strategic discipline – grounded in research, not reaction – tend to make fewer missteps.

Several patterns are emerging. First, the most resilient brands treat pricing as part of product development – not something tacked on after costs are tallied. They design with trade-offs in mind: what customers see, what they value, and what they’ll pay more for. In these organisations, pricing sits alongside marketing, insights, and supply chain – not in a siloed finance function.

Second, short-term fixes are being replaced with structured testing. Companies that previously treated pricing research as an annual or ad-hoc exercise are now investing in more frequent, faster measurement – integrating survey-based models with real-time sales and competitive data. This shift isn’t about chasing perfect precision. It’s about reducing guesswork.

Third, regional variation is back in focus. After years of global price harmonisation, more brands are returning to market-by-market pricing. Tariff impacts, consumer sentiment, and price sensitivity differ dramatically between the US, Southeast Asia, and Europe. A strategy that works in Singapore may unravel in Texas. Research agencies are increasingly being asked to localise price testing and conjoint simulations – especially for product lines being repositioned or repackaged due to input cost changes.

There’s also more internal scrutiny. Boards and shareholders are asking tougher questions about the long-term effects of pricing actions. What’s the risk of training customers to wait for discounts? Are private-label defections reversible? Are loyalty gains being offset by unit loss? The pressure is no longer just to raise prices – but to prove that doing so won’t damage the brand a year from now.

For leadership teams, pricing has become a balancing act between margin and momentum. Push too hard, and customers disappear. Hold back too much, and financials fall short. The brands that get it right are not guessing where the line is. They’re measuring it – then acting with discipline.

In an environment shaped by shifting costs, tariff risk, and consumer fatigue, pricing is no longer a lever to pull. It’s a strategy to build.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Forever 21 is closing its doors – again. Once the crown jewel of American mall culture, the fast-fashion giant is filing for bankruptcy for the second time in under five years. As shuttered storefronts stretch across the US, its downfall has become more than a brand misstep – a sign that the old fast-fashion model is running out of time.

In its place, a new breed of fashion titans is rising. Shein and Temu, two digital-first platforms with Chinese roots, have turned the industry on its head. Their tools? Artificial intelligence, real-time trend scraping, lightning-fast production, and a hyper-personalized consumer journey. These aren’t just cheap alternatives; they’re smart machines designed for a generation that grew up with TikTok, interactive shopping, and constant trends.

Forever 21’s decline isn’t a singular event. It’s part of a deeper market shift – one where legacy playbooks are being rewritten by code, content, and community. As fashion retail becomes more focused on digital channels, brands that do not change may become outdated and irrelevant.

Forever 21’s Fall Signals a Broken Retail Model

Forever 21’s descent didn’t happen overnight. It was a slow unravelling, a brand once emblematic of youth culture now outpaced by the very consumers it once captivated. At its peak, Forever 21 thrived on trend turnover, sprawling mall spaces, and low prices. But the retail landscape changed, and the brand didn’t.

As digital shopping accelerated and consumer expectations shifted, Forever 21 remained tethered to an outdated model – long production cycles, centralized design decisions, and a heavy reliance on brick-and-mortar foot traffic. Its once-successful approach became a liability. While consumers moved toward immediacy and personalization, the company doubled down on bulk inventory, sluggish turnarounds, and static pricing. It failed to keep pace with the velocity of online trend formation – a pace now dictated not by runways or retail calendars but by social feeds refreshed by the second.

The gap widened as Gen Z entered the market. Raised in an era of choice overload, platform-native shoppers sought brands that moved with them – fluid, responsive, and in sync with their aesthetic sensibilities. Forever 21, by contrast, felt stuck. Its collections lagged behind trends. Its online presence was clunky. It couldn’t deliver the frictionless experience digital-native brands were engineering.

Even attempts at reinvention – rebrands, collaborations, and in-store tech integrations – were often too reactive or off-mark. Market research during this period revealed a steady erosion in brand affinity among younger demographics, who increasingly dismissed mall-based fast fashion as outdated, unoriginal, or environmentally negligent. Once buzzing with teens, the retail floors became quieter, the racks fuller, and the margins thinner.

The retail model that once made Forever 21 a sensation has become outdated. And in an industry that now rewards adaptability over legacy, the brand’s decline underscores a critical truth: fashion doesn’t wait.

Shein and Temu Built a Smarter System

While legacy players like Forever 21 struggled to pivot, Shein and Temu were busy rewriting the rules of engagement. What distinguishes them isn’t just speed – it’s the system beneath the surface, a high-velocity engine built on data, automation, and platform-native behaviour. These brands aren’t retailers in the traditional sense; they’re algorithmic marketplaces fueled by machine learning, social signals, and a relentless feedback loop between consumer demand and product creation.

Inside Shein's fast-fashion model

Shein, in particular, operates more like a tech company than a fashion label. Its infrastructure is designed to detect real-time micro-trends, test new styles in limited batches, and scale only the best performers. Instead of seasonal collections, it drops thousands of SKUs daily – each one a calculated bet based on keyword spikes, user behaviour, and social engagement. What used to take legacy brands months now takes Shein days, with entire production cycles compressed into near real-time manufacturing.

Image Credit: Boffin Coders

Temu is building dominance on a different front. Backed by the e-commerce powerhouse PDD Holdings, its model leans heavily on gamification and bottom-dollar pricing, turning shopping into a behavioural loop. Discounts are dynamic, product discovery is algorithmically engineered, and the platform’s addictive scroll mimics social media architecture. Rather than chasing trends, Temu floods the feed with hyper-targeted inventory based on browsing data, purchase history, and behavioural nudges. Brand storytelling becomes secondary to price, pace, and personalization in this context.

Image Credit: Tech Crunch 

Temu's growth in numbers

Both companies excel at bypassing traditional gatekeepers. Instead of relying on expensive ad campaigns or celebrity endorsements, they tap into the power of peer-to-peer virality. TikTok hauls, influencer codes, and affiliate campaigns do more than drive traffic – they create a cultural moment, making shopping a social performance. The result is a decentralized and infinitely scalable distribution model.

Where traditional fast fashion brands pushed products, Shein and Temu pull consumers into a constantly evolving loop of discovery, validation, and conversion. It’s a model built not on intuition but on information, a data-centric approach that doesn’t just respond to the market but often predicts it.

Speed and Price Now Come with a Cost

But the same mechanisms fueling this meteoric rise are now drawing intensified scrutiny. As Shein and Temu scale at breakneck speed, regulators, watchdogs, and increasingly vocal consumer groups are beginning to question the true cost of their success. Investigations into labour practices, environmental degradation, and product safety are no longer confined to fringe activism; they’re reaching mainstream legislative agendas in the U.S. and Europe.

To soften criticism, Shein recently launched a resale platform in the U.S., positioning it as a circular fashion solution. Branded as a way for consumers to buy and sell secondhand Shein items, the initiative appears, on the surface, to nod toward sustainability. But industry experts and environmental advocates have been quick to call it out. Critics argue that the move lacks substance, pointing out that reselling ultra-low-quality garments does little to counteract the brand’s core business model – one built on volume, disposability, and micro-trend churn. The resale program, some say, is more about optics than impact.

Image Credit: Glossy

This tension highlights a bigger issue in the industry. The European Union has suggested tougher rules for transparency in textile imports, and U.S. lawmakers want more oversight on very cheap goods coming in through de minimis loopholes. These regulatory flashpoints are less about fashion and more about accountability – demanding that platforms operating on mass micro-consumption clarify how and where products are made, under what conditions, and at what environmental cost.

At the same time, cultural sentiment is shifting. What was once dismissed as disposable fashion is becoming a reputational risk. High-visibility criticism from sustainability influencers, investigative journalists, and even former brand collaborators is reshaping the narrative around what it means to shop cheap. For a growing subset of consumers, convenience and cost are no longer blind spots; they’re trade-offs weighed against a rising ethical awareness.

Still, the backlash isn’t yet translating into behavioural change at scale. Most consumers prioritize value and speed, even as they express concerns about sustainability. However, the growing friction between convenience and conscience is opening a critical window. For competitors, this is a signal: the future of fast fashion won’t just be about how quickly brands can produce – it will hinge on how transparently they can operate in a world that’s starting to ask harder questions.

Retailers Must Rethink the Entire Playbook

The road ahead demands a fundamental shift in how fashion brands think, operate, and communicate. Survival won’t come from marginal tweaks to legacy systems but from a reengineering of retail itself – beginning with the supply chain. 

Brands must move beyond cost efficiency and embrace operational intelligence. That means investing in technologies that enable demand sensing, real-time replenishment, and localized micro-manufacturing. Flexibility is no longer optional; it’s the foundation of relevance.

Equally critical is the evolution of pricing strategy. Competing with Shein and Temu on cost alone is a race few can afford to run. Instead, smart pricing – anchored in perceived value, quality assurance, and ethical sourcing – offers a more sustainable path. Consumers may be price-conscious, but they’re also becoming more aware of what pricing signals. Transparency around why a product costs what it does can strengthen trust and justify margins in a way race-to-the-bottom tactics cannot.

The marketing function must also be rebuilt for the algorithmic age. Traditional seasonal campaigns are losing ground to dynamic, always-on storytelling that responds to cultural shifts and consumer moods in real-time. This is where social commerce becomes critical, not as a trend but as infrastructure. Influencers are not just amplifiers; they’re now co-creators, collaborators, and curators of brand identity. Investing in decentralized content strategies, creator partnerships, and community-led design isn’t a nice to have – it’s how brands remain visible in a crowded, scroll-driven marketplace.

Finally, there’s the matter of trust. Authenticity becomes the ultimate differentiator in an ecosystem flooded with low-cost, high-frequency goods. Brands that can demonstrate their values through verifiable action – whether in ESG commitments, labour transparency, or community impact – will carve out a deeper connection with consumers navigating ethics. It’s not about appealing to everyone; it’s about being clear, consistent, and credible in what you stand for.

Guide to Gen Z

The Fast Fashion Reckoning Is Already Here

The fast fashion battleground is no longer about who can flood the market with the most products – it’s about who can navigate a volatile consumer landscape with speed, precision, and purpose. Shein and Temu have exposed the vulnerabilities of legacy brands not just by being faster or cheaper but by building systems attuned to cultural momentum, behavioural data, and the economics of digital attention. But their rise also highlights the limits of optimization when values, trust, and transparency are left out of the equation.

The future belongs to brands that can do both – move at the algorithm’s speed while operating with the discipline of long-term stewardship. Fashion is evolving from a product-based business to a platform-based experience, where relevance is won not once but constantly. For incumbents and challengers alike, this moment is not just a test of resilience. It’s a call to rethink what fashion means in a world where everything can be copied, but not everything can connect.

The rules have changed. What remains is the opportunity for those willing to radically rethink their systems as Shein and Temu have and to act before the next store closes.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

On a rainy Thursday in Jakarta, over 8,000 Sociolla customers received a flash SMS alert offering 20% off select skincare products. By 12:10 p.m., web traffic had tripled. Less than 24 hours later, a follow-up email landed in their inboxes – cleanly designed, product-focused, and personalised with recommendations based on browsing history. The conversion spike didn’t come from a single channel. It came from the right message, at the right time, on the right screen.

It’s a pattern playing out across global markets. With notification fatigue and rising acquisition costs, brands are rediscovering the power of email and SMS – two of the most overlooked but effective tools in the marketer’s arsenal. What’s different now is how they’re being used together.

According to Statista, ad spending in the SMS Advertising market worldwide is forecasted to reach US$809.05m in 2025. Email continues to dominate ROI metrics, delivering an average return of $36 for every $1 spent. But the real shift is strategic. Marketers are no longer siloing these tools. They’re orchestrating them.

In the US, Brooklinen sends a gentle SMS nudge 30 minutes after an abandoned cart, followed by an email packed with customer reviews and lifestyle imagery to rebuild interest. In the UK, ASOS primes audiences with SMS during peak sale periods, then follows up with immersive lookbooks that drive larger basket sizes. For Asian markets like Indonesia and Thailand, timing SMS around commutes or lunch hours and layering email content after hours is a high-conversion formula.

And increasingly, WhatsApp Business is becoming part of that mix. In regions where the app dominates daily communication, brands are using it to share order updates, personalised offers, and real-time service, bridging the immediacy of SMS with the interactivity of chat. In countries like India, Malaysia, and the Philippines, WhatsApp isn’t just a messaging tool. It’s a conversion channel.

What’s emerging is a model of engagement where immediacy and storytelling coexist. Consumers may not articulate it, but their actions show a clear preference: urgency on the lock screen, depth in the inbox – and conversation in the chat thread.

Data That Demands Attention

The performance metrics behind email and SMS are impressive. 

Omnisend’s 2024 ecommerce report shows that automated emails account for just 2% of sends but drive 41% of all email orders. These messages see open rates of 42.1%, click rates of 5.4%, and convert at 1.9% – outperforming bulk campaigns across every measure. Automated emails like welcome, cart abandonment, and browse abandonment flows are particularly effective. Take Baking Steel, a U.S. brand known for its professional-grade pizza-baking surfaces. The company drives 33% of its total email revenue through automated messages, even though they represent just 2.3% of sends. Their cart abandonment series alone accounts for 27% of email revenue, while their welcome series delivers between $10 to $15 per email sent. It’s a clear example of how a small number of well-timed, behaviour-based messages can punch far above their weight.

When paired with SMS, the impact grows sharper. SMS open rates hover around 98%, making it a high-visibility tool for time-sensitive nudges and transactional prompts.

Retailers are taking notice. In Southeast Asia, Love, Bonito enhances customer loyalty through LBCommunity+, offering perks like early access alerts and personalised styling sessions. While specific performance metrics aren’t publicly available, the brand’s hybrid approach – pairing SMS and email across loyalty tiers – has been widely recognised for deepening engagement and increasing repeat purchases among members.

The numbers tell a clear story. SMS delivers reach and urgency, while email drives context and conversion. Together, they’re not just a communications strategy – they’re an engine for revenue.

Speed Meets Substance

Brands are learning that velocity alone doesn’t drive results – it’s the balance between urgency and depth that converts.

Email and SMS each offer distinct strengths. SMS delivers speed, with nearly instantaneous open rates – ideal for alerts, reminders, and real-time nudges. Email offers space to tell a story, showcase visuals, and reinforce value.

Brooklinen, a US-based home goods brand, effectively demonstrates this balance through its abandoned cart email strategy. The emails highlight free shipping, surface customer reviews, and feature clean product visuals, adding persuasion where a short-form message might fall short. The brand’s approach shows how reinforcing urgency with context can reignite purchase intent.

Image Credit: Active Campaign 

Beauty Pie, a UK-based direct-to-consumer beauty brand, integrates email into its promotional ecosystem by offering exclusive perks to subscribers, including discounts and early access offers. These incentives drive sign-ups and build a permission-based channel for richer engagement.

While many brands continue experimenting with channel timing, the best results come when communication flows are mapped with intent – starting with immediacy and followed by storytelling.

Timing Isn’t Everything – Coordination Is

Hitting send at the right time is no longer enough. Today’s consumers expect connected experiences – where messages don’t just arrive on schedule but arrive with purpose.

Disjointed campaigns risk confusion or, worse, being ignored. According to Omnisend, brands that use three or more channels in a coordinated way see a 287% higher purchase rate than those using single-channel outreach. But coordination doesn’t mean duplication. It means sequencing messages across platforms in a way that feels human, not robotic.

Brands that succeed build journeys, starting with a short SMS that grabs attention and followed by a visual email that deepens the story. Automated triggers based on user behaviour (like browse abandonment or wishlist adds) help ensure these touchpoints feel timely, not templated.

This shift from reactive timing to proactive orchestration pushes marketers to rethink their flows. It’s not about when a message is sent; it’s about how it fits into the bigger narrative.

Personalisation That Pays Off

Personalisation is no longer optional; it’s the standard. Brands that succeed use customer behaviour as the blueprint for when, where, and how to communicate.

Brooklinen exemplifies this strategy by utilising behavioural data to send personalised messages – welcoming new subscribers, reminding users of abandoned carts, and re-engaging inactive shoppers. Each email is optimised for timing and relevance, often highlighting customer testimonials and free shipping incentives to drive conversions. These flows are built to respond, not interrupt.

Personalisation at scale means more than using a first name – it means designing communications that adapt to customer intent. The brands that get this right don’t just see better metrics; they build better relationships.

Inside the Inbox and Lock Screen

The real test of a campaign happens in seconds – on a lock screen swipe or an inbox scan. Successful brands know that getting the message seen is only the beginning. Getting it acted on is the goal.

Brooklinen’s cart abandonment email is a masterclass in the visual hierarchy: a clean header, compelling product image, a short reassurance (“Don’t worry, your cart’s still here”), and a call-to-action button with contrast and urgency. Paired with their SMS—“Still thinking it over? Your Brooklinen cart’s waiting…”—the combined impact is gentle and effective. No pressure, just presence.

Email marketers often focus on copy, but design plays just as critical a role. Omnisend recommends mobile-first layouts with clear CTAs, minimal text, and product visuals above the fold. For SMS, the best-performing messages are under 160 characters and feature clickable short links – delivered during peak engagement hours like lunchtime or early evening.

Though design elements may vary by region and industry, the pattern remains consistent: a visual hook, a clear message, and a frictionless path to action.

Whether it’s a text reminder to “Finish checking out before your 10% off expires” or an email showcasing reviews from people with similar purchase behaviour, these touchpoints are designed to feel relevant at the moment. Not just another notification.

Lessons from the Brands Getting It Right

Some brands aren’t just testing SMS and email integration; they’re building it into how they communicate. And the results show.

Brooklinen has become a case study in lifecycle marketing. Their welcome flows introduce the brand’s voice with simplicity and style, often including a first-purchase discount and lifestyle imagery that reflects their clean aesthetic. Follow-up emails and SMS reminders – especially around cart abandonment – are personalised, brief, and supported by social proof. This multistep approach increases the likelihood of conversion without overloading the user.

Love, Bonito, a fashion brand based in Southeast Asia, strengthens loyalty through its LBCommunity+ program. Members receive early access notifications and personalised recommendations via email. While SMS is often used for time-sensitive drops, email delivers richer content – lookbooks, styling tips, and editor picks tailored to user preferences. It’s a strategy that respects both format and context.

Warby Parker, in the US, offers another strong model. Their abandoned cart emails pair sharp product imagery with service-driven reminders – like free shipping and easy returns. Meanwhile, SMS is used sparingly but strategically, such as to confirm appointments or alert customers when their in-store pickup is ready. The brand’s restraint adds to its impact.

Each of these brands succeeds not by doing more but by doing it better. Clear roles for each channel. Data-driven triggers. Messages that respect the medium and the consumer’s attention span.

Avoiding the Double Tap Trap

With nonstop notifications, message fatigue is real, and brands that overcommunicate are paying the price.

According to GetApp’s 2024 Digital Content Consumer Survey, 40% of U.S. consumers unsubscribe from brand texts and emails at least once weekly. Over half will unsubscribe if they receive four or more marketing messages from the same company within 30 days. The problem isn’t communication; it’s saturation.

Many consumers also see diminishing value in brand outreach. Nearly 49% of Americans say more than half of the emails they receive feel like junk, a perception that erodes trust and damages engagement.

The smartest marketers are now designing campaigns that avoid redundancy. A time-sensitive SMS may kick off a promotion, while email follows with more detail and imagery. Triggered automation ensures once a customer clicks or converts on one channel, the other backs off – preserving relevance without repetition.

Avoiding the double tap isn’t just about frequency; it’s about flow. Respecting your customer’s attention span is now a competitive advantage.

What Great Design Looks Like

In integrated campaigns, how a message looks can matter as much as what it says. Design is the first filter – especially on mobile, where space is limited and attention is scarce.

Omnisend’s benchmarks point to a consistent pattern: campaigns with a clear CTA, minimal text, and mobile-optimised visuals significantly outperform cluttered or text-heavy alternatives. For SMS, the highest-performing messages stay under 160 characters, often including a short, trackable link and a clear sense of urgency – whether it’s “Last chance: 20% off ends tonight” or “Your order is ready for pickup.”

On the other hand, emails benefit from layered content – clear headers, bold product imagery above the fold, and buttons that pop. Brooklinen’s campaigns frequently use short copy and soft colour palettes that echo the brand’s tone. Beauty brands like Glossier and Love, Bonito often lead with visuals, letting product photos and user-generated content do the talking.

The golden rule is design for the scroll. Whether it’s a swipeable message or a mobile inbox preview, every pixel counts. Alignment between email and SMS design – through tone, colour, and CTA language – helps reinforce the message without repetition.

The most effective campaigns don’t just look good. They work hard in small spaces – and stay out of the way once the job is done.

The Tech That Ties It All Together

Smart strategy means little without the infrastructure to support it. Behind every well-timed message and seamless customer journey is a stack of tools built to automate, segment, and adapt in real-time.

Marketers are increasingly turning to platforms that integrate email and SMS – allowing for centralised data, unified campaign flows, and cross-channel automation. Brands use technology to sync customer behaviour across touchpoints, trigger messages based on actions (like page views or cart additions), and suppress redundant sends if a user has already converted.

This orchestration isn’t just efficient; it’s essential. With third-party cookies phasing out, first-party data has become the lifeblood of personalised marketing. Integrated platforms offer a direct line to user behaviour, purchase history, and channel preferences, helping marketers reach the right audience without overstepping.

Brooklinen’s flows, for example, are powered by behaviour-triggered automation that adjusts timing and content depending on customer interaction. Meanwhile, Glossier leverages its CRM system to send personalised messages to loyalty members based on engagement tiers and product affinity.

Tech isn’t the show’s star – but it’s what keeps the spotlight aligned. Without it, even the best creative and messaging strategy risks falling flat.

Final Send-Off

Consumers aren’t just scrolling; they’re actively filtering. Every ping, preview, and push competes for attention in a space where attention is finite.

The brands winning today aren’t louder. They’re smarter. They know when to text and when to email. They automate without sounding robotic. They build systems that talk to each other so their messages don’t overlap – or get ignored.

As marketing budgets tighten and customer expectations rise, the margin for error shrinks. SMS and email, when used in sync, offer rare precision: fast, personal, and measurable.

The smart play isn’t about choosing the right channel. It’s about connecting them and knowing when to pause.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

Streaming once promised a cheaper, simpler alternative to bloated cable packages. That era is ending. The subscriber land grab is over, and platforms are pivoting hard toward profitability – raising prices, pushing ad tiers, and upselling premium features that quietly pressure viewers to spend more.

Netflix, once the champion of disruption, now nudges users toward ad-supported plans or costlier premium options. Disney+, HBO Max, and Amazon Prime Video are following suit, each finding new ways to monetise content once available at a single flat rate. The result? A growing divide between basic and premium subscribers creating a class system that echoes the old cable era.

For viewers, the question is clear: Pay more for an uninterrupted, high-quality experience, or settle for less in a world where “basic” means ads, lower resolution, and restricted access. The future of streaming is shifting – and for many, it won’t be an upgrade.

Squeezing More from Subscribers

Low prices and bottomless content once defined streaming’s appeal. But the growth-at-any-cost era is over. Today, platforms are restructuring to wring more revenue from the users they already have.

Netflix long resisted ads – now, its ad tier is a gateway to more expensive plans. Features once standard, like 4K resolution, are now locked behind paywalls. And its crackdown on password-sharing is designed to turn passive users into paying ones.

Disney+ is bundling its services, locking Hulu and ESPN+ behind higher-priced packages. HBO Max, now rebranded as Max, has trimmed its catalogue while introducing new pricing tiers, making ad-free viewing a privilege, not a standard. Even Amazon Prime Video, long considered a value-add to its retail empire, is rolling out ads unless users pay extra to remove them.

The Divide Between Premium and Basic Subscribers 

Streaming once promised equal access – a single subscription unlocked the same content for everyone. That reality is disappearing. A growing divide now separates premium subscribers from those stuck on basic plans.

It’s no longer just about ads. Basic-tier users face lower video quality, fewer downloads, and restricted streaming options. Netflix locks 4K resolution behind a paywall. Disney+ reserves certain exclusives for higher-paying subscribers. Max and Amazon Prime Video follow the same playbook, gradually making standard features feel like upgrades.

This isn’t just inconvenience – it’s a redesign of access. Blockbusters, early drops, and high-definition are now privileges for those who pay more. A two-tiered system is emerging: premium users get the best, while the rest settle for second-rate.

The question is whether audiences will accept this shift or find ways around it.

Research-brief

Consumers Are Pushing Back Against Rising Costs and Subscription Fatigue

Audiences aren’t blindly accepting price hikes. Many are cutting back, consolidating services, or hopping between platforms based on what’s trending. Some are even turning to piracy, a practice once on the decline but now creeping back as frustration grows.

Nearly three-quarters of subscribers say they’re paying too much. As a result, 31% have already scaled back, and 29% are thinking about it.

Subscription fatigue is setting in. The market is oversaturated, and consumers are reaching their limit. With each price increase, more users question whether another monthly bill is worth it. Churn rates are rising, and platforms are scrambling to keep subscribers locked in.

Not all regions react in the same way. In lower-income markets, ad-supported tiers are gaining traction. But in wealthier countries, frustration is mounting as streaming costs rival the cable bills they once replaced.

Streaming Is Starting to Look a Lot Like Cable

Streaming was supposed to end cable’s reign, not recreate its worst features. Yet, as platforms carve up content into exclusives and push higher-priced tiers, consumers are facing the same frustrations that once drove them to cut the cord.

Must-watch shows are scattered across multiple services, forcing viewers to juggle subscriptions to keep up. Once simple, pricing models have morphed into a maze of tiers, bundles, and add-ons. Even staggered releases and blackout windows  – hallmarks of traditional TV – are quietly making a comeback.

Some companies see an opportunity. Aggregators are emerging to bundle streaming services under a single bill, which resembles the old cable model. Apple and Amazon are already positioning themselves as digital gatekeepers, offering centralised hubs that package multiple services.

The convenience that once defined streaming is slipping away. What began as a revolution now echoes the very systems it sought to replace.

Brands Rethink Strategy as Streaming Turns Premium

As platforms rework their business models, brands are rethinking their approach. Streaming is no longer a commercial-free oasis – it’s a growing opportunity for advertisers willing to pay for premium placement.

Netflix’s ad-supported tier, once unthinkable, is now a prime spot for brands looking to reach engaged audiences. Disney+ and Amazon Prime Video follow suit, offering hyper-targeted ads powered by detailed viewer data. Unlike traditional TV commercials, these ads are tailored, personalised, and difficult to skip.

Sponsorships and product placements are evolving, too. Shows seamlessly integrate brands into their storylines, blurring the line between content and advertising. Reality series feature branded backdrops, scripted dramas include strategic product placements, and sometimes, entire episodes are built around sponsorships.

Case in point: HBO’s White Lotus didn’t just captivate audiences – it redefined the Four Seasons brand. A hotel became a character, driving real-world demand and reframing the idea of luxury travel.

For brands, streaming’s evolution is an opportunity but also a challenge. As premiumisation pushes some viewers out, advertisers must decide whether to reach a shrinking audience or invest in a more engaged one.

As Streaming Becomes a Luxury, Can Affordability Survive?

The future of streaming is tilting toward exclusivity. Platforms are betting consumers will pay more for better quality, fewer ads, and access to premium content. But as prices climb, a crucial question remains – will affordable options still exist?

Ad-supported tiers offer a middle ground, but they come with trade-offs. Lower-quality video, unskippable ads, and restricted content make them feel like a downgrade rather than a real alternative. Meanwhile, piracy, long in decline, is creeping back as frustrated users look for workarounds.

Some platforms may hold off on full premiumisation to keep price-sensitive users, especially in emerging markets. Others could test hybrid models – offering free content with upsell paths. But the direction is clear: cheap, unlimited streaming is being replaced by a tiered system where the best experience comes at a price.

Streaming was built on accessibility. The question now is whether that promise will survive.

The Future of Streaming Will Be Defined by Who Can Afford It

Streaming isn’t going away, but the experience is changing. The best content, highest quality, and most seamless access are increasingly reserved for those willing to pay more. What was once an industry built on affordability is turning into one that prioritises premium subscribers.

For brands, this shift presents both opportunities and risks. Ad-supported tiers offer new ways to reach viewers, but the overall audience could shrink as prices rise. Marketers must decide whether to invest in high-spending premium users or reach the broader base still willing to tolerate ads.

The next chapter of streaming won’t hinge on content – it will hinge on cost. As platforms chase profits, accessibility is slipping. The era of cheap, all-you-can-watch entertainment is ending. What comes next depends on how much viewers are willing – or able – to pay.

Streaming’s Evolution Is Redefining Entertainment Access

Streaming is no longer an equal-access platform. A growing gap separates premium subscribers from those on budget plans. High-definition, uninterrupted viewing is now a luxury, while basic users navigate ads, lower resolution, and restricted content libraries.

Consumers are responding in different ways. Some are cutting back and keeping only essential subscriptions. Others rotate platforms, subscribing for a month, binge-watching, and cancelling. Piracy, once on the decline, is making a comeback as viewers push back against rising costs.

Over half of Americans (53%) subscribed to a service in the past year just to watch one show. Of those, 72% cancelled – 57% within the first month.

For brands, this fragmentation complicates marketing strategies. Streaming was once a direct line to engaged audiences. Now, it’s a fractured landscape where viewership depends on price tiers, ad tolerance, and content exclusivity. The rules are changing, and advertisers must adapt – or risk losing their audience.

Is Streaming Headed for a Breaking Point?

The race for subscribers is over. Now, platforms are fighting for control – of pricing, access, and how audiences consume content.

Ad-supported tiers, exclusive bundling, and premium restrictions aren’t just revenue strategies; they’re levers to dictate viewing behaviour. Streaming is becoming a gated ecosystem where top-tier access is reserved for those willing to pay more. The shift isn’t subtle; subscription churn is rising, bundling fatigue is setting in, and piracy, once in decline, is returning.

The industry is approaching a tipping point. Price hikes and paywalled features may drive short-term revenue, but they also push consumers to reconsider their subscriptions. Fragmentation makes it harder to justify multiple services, and frustration is growing. Viewers are finding ways around rising costs, and platforms may underestimate their willingness to walk away entirely. 

The future of streaming won’t be dictated by platforms alone. Audiences still hold the power; if streaming loses its accessibility, its dominance could unravel. What began as an entertainment revolution is at risk of becoming an exclusive club, where access is a privilege and the audience that once fueled its rise is left behind.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

A TV show about dysfunctional elites on vacation has done more for Four Seasons’ bottom line than any ad campaign could. Since The White Lotus aired, bookings at the luxury hotel’s Maui, Sicily, and Thailand properties have surged, with high-end suites seeing record demand. The show didn’t just showcase opulence – it turned its filming locations into must-visit destinations for high-net-worth travellers.

What started as a pandemic-era gamble – letting HBO use Four Seasons resorts as backdrops for satire – has become a masterclass in luxury hospitality marketing. Now, the brand is doubling down, offering private jet tours between its White Lotus resorts and reshaping how luxury travel intersects with pop culture.

This isn’t just a tourism bump. It’s a blueprint for how high-end brands can turn cultural cachet into long-term revenue.

Turning Screen Time into Bookings

The White Lotus didn’t just feature Four Seasons;it made the brand part of the story.

Following the debut of The White Lotus, Four Seasons experienced significant increases in interest and bookings. For instance, after Season 1, the Four Seasons Resort Maui at Wailea saw a 425% year-over-year increase in website visits and a 386% rise in availability checks. Similarly, during Season 2, the Four Seasons Hotel Taormina in Sicily reported a 193% increase in web traffic. With Season 3 set in Thailand, the Four Seasons Resort Koh Samui has already observed a 65% spike in searches shortly after the premiere.

Four Seasons Resort Maui at Wailea became shorthand for tropical indulgence, while Sicily’s San Domenico Palace, once a monastery, emerged as an icon of old-world grandeur. Following Season 2, the Sicilian property saw a 193% increase in web traffic. Now, with Season 3 set in Thailand, the Four Seasons Resort Koh Samui has already recorded a 65% surge in searches from travellers looking to step into the show’s next setting.

Rather than letting the hype fade, the hotel chain quickly capitalised. It introduced private jet itineraries linking its White Lotus resorts, offering an ultra-luxury package for guests looking to replicate the on-screen experience. More than just a tourism boost, the HBO partnership has given Four Seasons a new brand identity – one that sells not just a stay but a story.

TV Tourism Is the New Gold Rush for Hospitality Brands

Four Seasons isn’t the only brand cashing in on TV tourism. After Emily in Paris, hotel bookings in the French capital spiked, with luxury stays marketing their own “Emily-style” experiences. Game of Thrones turned Dubrovnik into a global tourism hotspot, with visitors flooding its medieval streets years after the series ended. The message is clear: travelers don’t just want a destination, they want a cinematic setting.

Hospitality brands are responding fast. Hotels are no longer just offering rooms – they’re curating worlds viewers already feel connected to. With the right media partnership, a resort becomes more than a destination; it becomes a cultural landmark. But to turn a pop culture moment into long-term brand value, it takes more than just letting the cameras roll.

Four Seasons understood this shift. It didn’t just lend its properties to The White Lotus; it leveraged the show’s themes of exclusivity and indulgence to redefine its own brand narrative. Every infinity pool, oceanfront suite, and private excursion wasn’t just a set piece; it became part of the experience the hotel could sell long after the credits rolled.

Experiential and Ultra-Luxury Tourism Is Redefining Travel Marketing

For luxury travellers, a five-star suite alone no longer satisfies. Today’s premium offering is access – an experience so exclusive, it feels scripted. This expectation is driving the rise of “live the show” tourism, where resorts don’t just host guests – they immerse them in a narrative they’ve already bought into.

Four Seasons has capitalised on this demand. In Sicily, guests can book private yacht tours along the same coastline where The White Lotus characters plotted their next move. In Thailand, where the latest season premiered, the chain has been marketing cultural excursions inspired by the series, turning its resorts into real-life extensions of the show’s world.

The strategy is paying off. VIP packages, custom itineraries, and pop culture-branded experiences now command premium rates – some exceeding $10,000 per stay, according to industry reports. Luxury travellers aren’t just buying comfort; they’re buying cultural capital. For hospitality brands, the takeaway is clear: locations don’t sell on their own. Story-driven experiences do.

Is TV the New Luxury Travel Influencer?

TV-driven-Tourism-hotspots

Forget glossy travel ads and celebrity endorsements – scripted entertainment is proving to be a more powerful driver of luxury tourism. The White Lotus turned Four Seasons from a high-end hotel chain into a must-visit brand, delivering hours of aspirational storytelling that no traditional campaign could replicate.

Luxury hospitality groups are taking note. The right on-screen exposure doesn’t just showcase a destination; it reshapes traveller demand. Hotels, airlines, and tour operators now see productions as strategic partners rather than passive tenants. From filming incentives to immersive brand collaborations, entertainment is becoming a long-term marketing asset.

For Four Seasons, The White Lotus wasn’t just a tourism bump – it was a repositioning moment. The show’s themes of wealth and indulgence aligned so closely with the brand that its resorts felt like characters in the story. Now, as other luxury brands chase their own White Lotus moment, the real competition isn’t location or amenities – it’s cultural relevance.

Luxury Hospitality Is Turning to Entertainment as a Growth Strategy

Four Seasons didn’t just benefit from The White Lotus; it created a new blueprint for luxury travel marketing. The divide between entertainment and hospitality is disappearing, and brands that fail to adapt risk being left behind.

High-end hotels are now seeking strategic partnerships with streaming platforms, aiming to replicate Four Seasons’ success. Destination collaborations with filmmakers are no longer just background deals; they’re becoming core business strategies designed to position hotels as aspirational travel hubs. The next phase of entertainment-driven tourism isn’t passive product placement; it’s about immersive brand integration, where travellers don’t just visit a location – they step inside a story.

This shift is already happening. Hotels are launching co-created experiences, interactive stays, and even story-driven itineraries modelled on cinematic worlds. The most forward-looking brands are embedding themselves where travel, entertainment, and culture converge – turning pop culture into long-term brand growth.

Cultural Relevance Is the New Currency of Luxury

In luxury hospitality, the meaning of status is shifting. It’s no longer defined solely by five-star service or remote, exclusive locations. Today, status is increasingly measured by how seamlessly a brand lives within the cultural moment.

The White Lotus gave Four Seasons more than exposure – it gave the brand narrative power. Suddenly, staying at the Four Seasons wasn’t just aspirational; it was culturally resonant. In a world where travellers want to mean as much as indulgence, the ability to connect with the zeitgeist is the ultimate differentiator.

In the attention economy, real luxury is no longer about where you go. It’s about how that place makes you feel – and whether the world is paying attention when you get there.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The wellness economy isn’t just growing – it’s taking over.

What started as a niche industry of boutique fitness studios and green juice bars has exploded into a $1.8 trillion global powerhouse. Today, wellness means AI-powered health diagnostics, biohacking retreats, and personalised longevity plans tailored down to the cellular level. Consumers aren’t just tracking steps anymore; they’re measuring stress responses, monitoring metabolic health, and optimising their bodies like data-driven machines.

And they’re not just buying into wellness – they’re questioning it. Who can prove their claims? Which brands offer real science over marketing hype? Consumers demand transparency, personalisation, and measurable results. The wellness-first mandate is rewriting the rules of business. Products that fail to deliver real well-being won’t just lose market share – they’ll disappear.

From skincare to financial services, travel to technology, brands are racing to embed wellness into every touchpoint. But who’s doing it right? And how will this next phase of the wellness revolution separate the disruptors from the dinosaurs?

Wellness as a Brand Imperative

Wellness isn’t an industry anymore. It’s an expectation. And for brands, failing to deliver isn’t just a missed opportunity – it’s a death sentence.

Millennials and Gen Z aren’t buying into wellness trends blindly. Raised on health tracking and biohacking culture, they don’t just want feel-good branding; they demand proof. Can a product deliver real cognitive benefits? Does a service measurably improve longevity? If not, it won’t last.

The stakes go beyond retail. Consumers want stress-free money management in finance—automated savings, real-time spending insights, and AI-powered financial planning. Employees now evaluate companies in the workplace on their mental health support, flexibility, and work-life balance policies. A free gym membership or wellness app isn’t enough. If brands don’t take well-being seriously, they’ll lose top talent to those who prioritise it.

Wellness is not just a product feature; it is an expectation that spans industries.  The question isn’t whether brands should adapt. It’s whether they’ll survive if they don’t.

Workplace Wellness Is No Longer a Perk – It’s a Business Survival Strategy

Employee burnout is no longer a quiet crisis – it’s a corporate emergency. A disengaged, exhausted workforce isn’t just unproductive; it’s walking out the door. The companies that fail to prioritise well-being aren’t just losing morale. They’re losing their workforce.

For years, workplace wellness meant subsidised gym memberships and stress management webinars. That’s not enough anymore. Employees demand real change – flexible work, mental health support, and financial security. Companies that resist? They’ll watch their top talent leave for organisations that treat well-being as a business priority, not a line item in HR’s annual report.

Some companies are getting it right. Goldman Sachs expanded its mental health offerings, giving employees free therapy and resilience coaching. Microsoft’s four-day workweek experiment in Japan resulted in a 40% productivity boost – without burnout. Salesforce has gone beyond wellness perks, integrating financial literacy coaching and savings programs to reduce employees’ money stress.

The message is clear: workers expect companies to care about more than just their output. Leadership isn’t about offering wellness benefits as an afterthought; it’s about embedding well-being into the foundation of corporate culture.

The companies that lead on workplace wellness won’t just retain talent – they’ll attract the next generation of high performers. The ones that don’t? They’ll be left scrambling when the best employees leave for competitors that take well-being seriously.

Innovations in Product Development to Meet Wellness Expectations

At 3 p.m., Amanda Chang hits a wall. She’s not tired from lack of sleep, nor has she skipped lunch. She’s dehydrated—a reality she only recently started tracking after her smartwatch nudged her with a hydration reminder. Now, like millions of others, she reaches for an electrolyte packet instead of an afternoon coffee.

She’s not alone. The hydration economy is booming, fueled by a new consumer mindset that views optimal fluid balance as a pillar of longevity, mental clarity, and peak performance. Once reserved for athletes, electrolyte-enhanced drinks and functional hydration products have gone mainstream, reshaping how people approach energy and wellness.

Companies have taken note. Unilever’s acquisition of Liquid I.V. signals a strategic shift – hydration is no longer a niche category but a global wellness priority. Nestlé, too, has expanded its portfolio of functional beverages, tapping into a market where consumers aren’t just looking to quench their thirst but to optimise their biological performance.

This is just one example of how brands reinvent their products to align with a wellness-first consumer base. Across categories, companies are shifting from passive health benefits to science-backed, measurable, and highly personalised solutions.

In food and beverage, gut health is now front and centre. Probiotics, prebiotics, and postbiotics are transforming everything from yoghurt to snack bars, with major players racing to offer digestive-support products backed by clinical research. Cognitive performance is another emerging focus, fueling demand for nootropics and adaptogens – ingredients designed to enhance focus, stress resilience, and mental clarity.

The shift toward longevity and biohacking is accelerating in beauty and personal care. Consumers are moving beyond anti-ageing to skin health at the cellular level, with brands investing in microbiome research, peptides, and NAD+ boosters to enhance skin regeneration. Shiseido, for example, has poured resources into advanced skin longevity research, aligning with the consumer push for products that deliver quantifiable, long-term benefits rather than superficial fixes.

Meanwhile, household and consumer goods are experiencing a clean-label revolution. Transparency in sourcing and formulations is no longer optional – shoppers scrutinise ingredient lists, demanding non-toxic, sustainable, and ethically sourced products. Regulatory bodies are catching up, forcing brands to substantiate wellness claims with hard evidence. In a significant move, the Federal Trade Commission issued its first major update to health marketing guidelines since 1998, tightening restrictions on unproven claims and requiring all health-related advertising to be backed by credible, peer-reviewed scientific research.

Under the updated guidance, the FTC is taking a firm stance against what it identifies as “vague qualifying terms” in advertising. The agency asserts that all health-related claims made by companies must be substantiated by credible, peer-reviewed scientific research. This shift signals a tougher regulatory environment for health product marketers, emphasising the importance of transparency and evidence-based communication in an industry often criticised for its lack of accountability.

Wellness is no longer an add-on – it’s the foundation of modern product development. Companies that treat it as a marketing gimmick risk losing to disruptors who understand that today’s consumers aren’t just buying products. They’re investing in performance, longevity, and measurable results.

AI, Wearables, and Predictive Wellness

Your body is now a data stream, and Big Tech wants in.

What started with step counters and calorie trackers has evolved into AI-driven biohacking, where algorithms don’t just monitor your health – they attempt to predict and optimise it. Consumers are no longer passively checking fitness stats; they’re outsourcing their well-being to wearables, biometric scans, and AI-driven health assistants.

And the biggest players are moving fast. Google’s AI-powered dermatology tool claims medical-grade accuracy. Apple’s Health app quietly reshapes preventive medicine, feeding real-time biometric data into predictive alerts for conditions like atrial fibrillation. Platforms like InsideTracker promise to extend your lifespan using machine learning to analyze your blood biomarkers and recommend longevity-focused interventions.

AI-powered mental health tools, like Woebot, offer chatbot-based cognitive behavioural therapy. Meanwhile, smart rings and glucose monitors claim to optimise health.

The next frontier? Brain-computer interfaces. Neuralink is experimenting with cognitive enhancement, and startups like Sens.ai are launching neurofeedback headsets that claim to rewire the brain for improved focus and resilience.

As technology continues to merge with biology, wellness is shifting from a reactive model to a precision-driven, predictive experience. Consumers no longer want generic health advice; they expect data-driven, AI-curated, real-time insights that empower them to optimise their lives with surgical precision. Brands that can deliver on this promise will lead the next wave of the wellness economy.

Wellness Is Rewiring the Way We Shop, Stay, and Travel

The future of retail and hospitality isn’t just about convenience; it’s about well-being. From high-end hotels to grocery stores, brands are redesigning physical spaces to support mental, physical, and emotional health in ways that would have been unthinkable a decade ago.

At Lululemon’s immersive wellness hubs, customers can do more than shop for activewear – they can meditate, attend breathwork sessions, or recover with guided treatments. Sephora is curating its shelves to reflect a new consumer demand: clean beauty products with transparent, safety-tested ingredients. Meanwhile, luxury hotels are pivoting from indulgence to longevity, offering IV therapy, cryotherapy, and biometric-driven nutrition plans designed for more than relaxation. They’re selling optimisation.

Even mass-market brands are responding. Airlines are no longer just upgrading seat comfort; they’re integrating circadian lighting and personalised nutrition options to mitigate jet lag. Coworking spaces are incorporating biophilic design and air purification systems as professionals demand healthier work environments.

This shift isn’t cosmetic; it’s structural. Wellness is no longer a category – it’s a design principle shaping how we shop, travel, and experience spaces. Consumers now expect retail stores, hotels, and workspaces to not only offer products and services but also actively enhance their well-being.

For brands, this is no longer about staying ahead of the curve. It’s about staying relevant.

Wellness Goes Ethical, But Are Brands Keeping Up?

Consumers aren’t just buying wellness. They’re demanding it on their terms. From sustainable packaging to ethical sourcing, today’s shoppers expect well-being to extend beyond the individual to the planet and society. And they’re holding brands accountable like never before.

This shift isn’t theoretical; it’s shaping spending habits. Nearly 80% of global consumers say sustainability influences purchasing decisions (IBM Institute for Business Value). That’s why Patagonia’s commitment to regenerative supply chains isn’t just branding; it’s a business necessity. Aesop has built a cult following around its sustainability-first skincare, while Stella McCartney is pushing the fashion industry toward bioengineered materials and circular design to cut waste.

But ethical wellness isn’t just about environmental impact – it’s about who gets included. Wellness has long catered to a narrow demographic, but consumers now expect cultural competence and inclusivity. Fenty Skin has set a new standard in beauty with its commitment to diverse skin types, while fitness brands are finally recognising the need for more representation in product design and marketing.

Yet, for all the progress, the industry still faces a reckoning. Greenwashing remains rampant, with brands exaggerating sustainability claims without transparency. Inclusivity marketing is everywhere, but how many companies reflect it in their hiring and leadership? Consumers are paying attention, and performative wellness will no longer cut it.

The new era of ethical wellness isn’t just about selling sustainability or inclusivity. It’s about proving it. The brands that back up their claims with action will earn loyalty. Those that don’t? They’ll be called out and left behind.

The Future of Wellness Is Personal, and Big Business Knows It

Wellness is no longer about staying healthy. It’s about engineering longevity, optimising biology, and hacking the human body for peak performance.

This isn’t science fiction. Billion-dollar biotech startups like Altos Labs are pouring funding into cellular rejuvenation, while advances in senolytics – compounds designed to eliminate ageing cells – are setting the stage for a world where ageing itself could become a treatable condition. Skincare, nutrition, and fitness brands are already pivoting from anti-ageing to lifespan optimisation, signalling a shift that will reshape consumer health as we know it.

At the same time, digital wellness is becoming a fully immersive, data-driven experience. The metaverse isn’t just a playground for gamers – it’s becoming a wellness hub. Virtual reality meditation apps like TRIPP are gamifying mindfulness, and AI-powered health coaches are turning biometric data into real-time lifestyle interventions.

The era of one-size-fits-all health solutions is ending. DNA-driven nutrition plans, microbiome-based dietary regimens, and continuous glucose monitoring replace outdated wellness norms. Companies like Viome are leveraging gut microbiome analysis to create ultra-personalised food and supplement plans, while wearable tech is evolving from passive tracking to real-time health optimisation.

For brands, the opportunity is massive, but so is the pressure. Consumers will no longer accept generic wellness promises. They expect science-backed, precision-driven solutions that seamlessly integrate into their daily lives.

The brands that embrace hyper-personalised, predictive wellness will define the future of health. The ones that don’t will be left selling yesterday’s version of well-being in a world that’s already looking ahead.

The Wellness-First Mandate – Adapt or Be Left Behind

Wellness is no longer a trend. It’s the economic engine reshaping industries, the cultural shift redefining consumer priorities, and the business imperative separating industry leaders from the obsolete.

This transformation isn’t about virtue signalling or slapping a “clean” label on a product. It’s about structural change – a radical rethinking of how brands serve consumers when well-being is the ultimate currency. Companies that embed wellness into their DNA, from product formulation to workplace culture, will thrive. Those who view it as a passing fad will fade into irrelevance.

The future belongs to brands that do more than just sell – they safeguard, optimise, and extend quality of life. Precision health, longevity science, AI-driven well-being, and sustainability aren’t niche concerns anymore; they are market expectations. Consumers aren’t just buying – they’re scrutinising. They want proof, not promises.

For brands, the choice is stark: evolve or fall behind. Wellness is no longer a consumer preference; it’s a corporate survival strategy. The brands that hesitate won’t just lose market share. They’ll disappear.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

In 2005, Nintendo was teetering on irrelevance in the UK. Once a dominant force, the gaming giant had been eclipsed by Sony’s PlayStation and Microsoft’s Xbox, holding a mere 5% market share in a space increasingly dominated by high-powered consoles and competitive gaming. Gaming had become synonymous with young, tech-savvy male audiences – a niche where Nintendo no longer held sway.

Within two years, Nintendo executed a turnaround that defied industry norms. By 2007, its UK market share had skyrocketed to 80%, driven by a marketing strategy that ignored the industry’s obsession with specs and focused on accessibility, playfulness, and the redefinition of what it meant to be a “gamer.” The Nintendo DS and Wii weren’t just consoles; they were cultural phenomena that expanded the gaming audience beyond teenage boys and esports enthusiasts to parents, professionals, and an emerging market now known as kidults – adults who engage in play-driven, nostalgic, and social entertainment.

This wasn’t just a comeback. It was a masterclass in market expansion, consumer behaviour, and brand reinvention. Nintendo didn’t just take back its position in gaming – it transformed the industry’s entire trajectory. How did they do it? And what lessons can today’s brands learn from this seismic shift? 

The Market Landscape Before Nintendo’s Comeback

By the mid-2000s, gaming was a high-stakes, high-performance industry. Sony and Microsoft were in an aggressive race, pushing cutting-edge graphics, processing power, and online multiplayer experiences. The PlayStation 2 was the undisputed king, selling over 155 million units globally, while the Xbox, backed by Microsoft’s deep pockets, had secured a loyal base of hardcore gamers. Nintendo, once the industry’s dominant force, had been relegated to an afterthought.

The problem? The market had narrowed. Gaming had become a battlefield of tech specs and realism, catering to an increasingly insular demographic – young male gamers. The industry had overlooked a fundamental truth: entertainment isn’t just about cutting-edge technology; it’s about accessibility, emotional connection, and cultural relevance.

This was the opportunity Nintendo saw before anyone else. Instead of competing on hardware power, the company pivoted toward a different gaming experience, prioritising intuitive gameplay, social engagement, and an audience that had been ignored for too long.

Nintendo engineered one of the most dramatic turnarounds in business history by rejecting the industry’s fixation on complexity and high-performance specs. Its strategy didn’t just reclaim market share – it reshaped the gaming landscape, expanding the definition of who a gamer could be.

Key Strategies That Fueled Nintendo’s Success

Nintendo’s comeback wasn’t a fluke – it was a deliberate strategy that defied industry norms. While Sony and Microsoft escalated the hardware arms race, Nintendo redefined what gaming could be. Instead of emphasising specs, it broadened its audience and made gaming more intuitive, turning the conversation from power to play.

#1. Expanding the Audience Beyond Gamers

Gaming had long been marketed to young men obsessed with high-speed, high-performance play. Nintendo shattered this mould by targeting demographics the industry had ignored: families, women, and older adults. The company understood gaming wasn’t inherently niche; it had simply been positioned that way.

The strategy was simple but groundbreaking: the barriers stopping non-gamers from picking up a controller. The Wii and Nintendo DS were designed to be intuitive, eliminating the intimidating learning curves of traditional gaming. This wasn’t about mastering complex button combinations or navigating hyper-realistic battlefields; it was about play.

Nintendo’s marketing leaned into this accessibility, positioning gaming as a shared experience rather than a solo, skill-based pursuit. Instead of hyper-stylised action sequences, Nintendo’s ads featured families playing together in living rooms, grandparents competing with grandchildren, and social settings where gaming wasn’t just entertainment; it was connection.

The result? Nintendo didn’t just win back players – it created millions of new ones. This wasn’t just about reclaiming dominance; it was about reshaping the gaming audience entirely.

#2. Leveraging Innovative Gameplay Experiences

Nintendo’s resurgence wasn’t about cutting-edge graphics, faster processors, or blockbuster storytelling. It was built on a simple yet powerful principle of consumer psychology: ease of use. By stripping away complexity, Nintendo made gaming more accessible than ever.

The Nintendo DS: A Touch-Based Revolution

It was built on a simple yet powerful principle of consumer psychology: ease of use. By stripping away complexity, Nintendo made gaming more accessible than ever.

Image Credit: Nintendogs Wiki Fandom

More importantly, Nintendo ensured the software supported this approach. Titles like Brain Age and Nintendogs weren’t designed for traditional gamers – they were built to attract a broader demographic, including older adults and casual players who had never picked up a console before. By moving away from conventional gaming tropes, the DS became a global sensation, selling over 154 million units.

The Wii: Motion-Control Gaming That Redefined Engagement

If the DS lowered the barrier to entry for handheld gaming, the Wii redefined accessibility in home entertainment. Launched in 2006, the Wii introduced motion-sensing controls that eliminated complex button inputs. Players could physically swing, punch, or steer their way through games, making gaming feel more interactive and immersive.

Image Credit: Game Rant 

Bundling Wii Sports was a masterstroke. The Wii’s intuitive, motion-based gameplay made it essential for the living room, drawing in families, older adults, and social gamers. By 2007, the Wii had outsold the Xbox 360 and PlayStation 3.

Rather than competing in the high-performance gaming race, Nintendo carved out an entirely new segment – one that prioritised intuitive, inclusive, and social play. The company didn’t just win back market share; it expanded the definition of gaming itself.

#3. Creating a Software Lineup That Sold Consoles

Nintendo’s success wasn’t just about hardware innovation. The real driver behind the DS and Wii’s dominance was a software strategy that prioritised accessibility, engagement, and repeat playability. While competitors focused on high-budget, graphics-heavy blockbusters, Nintendo leaned into intuitive, universally appealing experiences that turned occasional players into loyal consumers.

Research-brief

The Power of Bundled Games

Few games have matched the cultural impact of Wii Sports. With simple motion controls for tennis, baseball, and bowling, Wii Sports turned gaming into an active, social activity. The result? It became one of the best-selling games of all time.

Similarly, Brain Age for the DS tapped into a new category of users: adults looking for cognitive challenges. Its premise, built around mental exercises and daily training, positioned the DS as a lifestyle product. This pivot expanded Nintendo’s consumer base and set the stage for future mainstream gaming trends.

Franchises That Defined an Era

Beyond bundled titles, Nintendo doubled down on its iconic IPs. Mario Kart DS brought the beloved racing franchise to handheld gamers, while New Super Mario Bros. revitalised classic platforming for a new generation. These titles weren’t just nostalgia-driven – they were strategically designed to leverage Nintendo’s strongest assets while remaining accessible to casual players.

Image Credit: The Gamer 

The Wii also saw a boom in motion-driven exclusives. Games like Wii Fit turned the console into a fitness tool, targeting a demographic far beyond traditional gamers. This content diversification ensured Nintendo wasn’t just selling consoles; it was building long-term engagement.

Image Credit: Game Stop

By focusing on intuitive gameplay, evergreen franchises, and software that appealed to untapped markets, Nintendo created a virtuous cycle: every best-selling game drove more console sales, and every console sale expanded the audience for future games. This strategy transformed Nintendo from an industry underdog to a market leader once again.

#4. Making Gaming More Affordable and Accessible

While Sony and Microsoft were engaged in a hardware race, pushing consoles with advanced graphics and premium pricing, Nintendo took a different approach. It focused on affordability, positioning the DS and Wii as low-cost, high-value alternatives that didn’t require a deep investment in gaming culture or expensive accessories. This pricing strategy wasn’t just about undercutting the competition; it was about lowering the barrier to entry and widening the consumer base.

Disrupting the Price War

In 2006, the PlayStation 3 launched at £425 in the UK, while the Xbox 360 ranged from £209 to £279. The Nintendo Wii, by contrast, entered at just £179—an accessible price point that made it an easy choice for families, casual gamers, and first-time buyers long priced out of gaming.

The DS followed a similar model. At launch, it was significantly cheaper than Sony’s handheld PSP, which was marketed as a high-performance portable console with multimedia capabilities. While the PSP struggled to compete with the rise of smartphones in the years ahead, the DS thrived by staying true to its core audience – offering simple, engaging experiences at a price point that felt accessible.

The Cost-to-Value Proposition

Price alone wasn’t enough – Nintendo had to prove value. Bundling Wii Sports gave consumers an instant reason to buy, eliminating the need for additional purchases. The Wii’s motion controls also removed the expense of extra accessories. Meanwhile, the DS thrived on a library of budget-friendly, mass-appeal titles, positioning gaming as an everyday activity rather than a luxury.

This affordability-first strategy had long-term implications. It cultivated a new generation of casual gamers, many of whom might never have considered purchasing a console. More importantly, it reinforced Nintendo’s reputation as the most accessible gaming brand, not just competing for market share but actively expanding the market.

By rejecting the premium-price model and focusing on mass-market adoption, Nintendo proved that success in gaming wasn’t just about hardware specs; it was about making gaming available to everyone.

#5. A Marketing Masterclass in Consumer Engagement

Nintendo’s comeback wasn’t just about hardware, software, or pricing – it was about storytelling. While Sony and Microsoft marketed gaming as a high-performance, immersive experience for dedicated players, Nintendo positioned gaming as something entirely different: a social, intuitive, and universally accessible activity. This shift in messaging was a fundamental repositioning of what gaming meant to consumers.

The Shift from Power to Play

Sony’s PlayStation 3 campaign emphasised its powerful hardware, with cinematic trailers showcasing hyper-realistic graphics and advanced processing power. Microsoft’s Xbox 360 leaned into its online gaming ecosystem, targeting hardcore players with a focus on multiplayer capabilities.

Image Credit: Miscrave

Nintendo went in the opposite direction. It didn’t market specs – it marketed people. Instead of high-adrenaline gameplay, its ads showed families, grandparents, and first-time gamers picking up a Wii remote and playing instantly. The message was clear: gaming wasn’t just for gamers anymore.

Turning Gaming into a Shared Experience

The Wii Would Like to Play became one of the era’s iconic marketing campaigns. Featuring two suit-clad Japanese men introducing the Wii to everyday households, it emphasised invitation over exclusivity. Nintendo wasn’t selling a console; it was selling interaction, laughter, and inclusion.

Image Credit: Playback

For the DS, Nintendo leaned into relatability. The Touch Generations campaign targeted non-gamers, featuring celebrities and everyday users engaging with brain-training games, puzzle titles, and social experiences. This wasn’t gaming for the elite; it was gaming for everyone, reinforcing the company’s core strategy of mass accessibility.

Here’s the 2006 Touch Generations Nintendo DS print ad.

Image Credit: ebay

Retail Strategy and Experiential Marketing

Beyond traditional advertising, Nintendo excelled at experiential marketing. The company rolled out widespread in-store demo stations, allowing hesitant buyers to try the Wii’s motion controls or experience the DS’s touchscreen before making a purchase. This hands-on approach eliminated scepticism and turned a casual interest into immediate conversion.

Nintendo also capitalised on the rise of social proof. Word-of-mouth marketing skyrocketed as the Wii became a staple in living rooms worldwide. The more people saw their friends and family engaging with Nintendo products, the more likely they were to join in, creating a viral effect that fueled record-breaking sales.

By shifting its marketing from performance-driven specs to emotion-driven engagement, Nintendo didn’t just sell consoles – it sold experiences. In doing so, it reshaped the gaming industry, proving that success wasn’t about catering to the existing market but creating an entirely new one.

#6. The Long-Term Impact on Gaming and Consumer Behavior

Nintendo’s strategy didn’t just reclaim market share – it redefined gaming itself. It shifted perceptions of who a “gamer” could be and expanded what gaming could offer. The ripple effects went beyond Nintendo, reshaping the industry and consumer expectations for years.

Mainstreaming Casual and Social Gaming

Before the Wii and DS, gaming was a niche hobby dominated by young men. Nintendo shattered that perception, proving gaming could be inclusive, social, and effortless. The runaway success of Wii Sports, Brain Age, and Nintendogs sparked demand for intuitive, accessible gameplay – paving the way for mobile gaming’s rise.

Nintendo inadvertently set the stage for the mobile gaming revolution by lowering the entry barrier and emphasising fun over complexity. The App Store, launched in 2008, followed the same principles: games that were simple to learn, easy to access, and designed for mass appeal. Today, the global mobile gaming market generates more revenue than console and PC gaming combined, a shift that can be traced back to Nintendo’s strategy of broadening the gaming audience.

The Legacy of Motion Controls and Interactive Gaming

Initially dismissed as a gimmick, the Wii’s motion controls became a blueprint for interactive gaming. Microsoft’s Kinect and Sony’s PlayStation Move were direct responses, chasing the demand Nintendo had created. More significantly, the idea of physical engagement in gaming extended beyond consoles – AR and VR gaming owe much of their mainstream appeal to Nintendo’s early innovations.

Image Credit: Nintendo 

Nintendo’s focus on intuitive play also influenced how developers approached game design. Today, user-friendly mechanics and immediate engagement are central to many of the industry’s best-selling titles, from fitness-based games like Ring Fit Adventure to the continued success of Just Dance, a franchise built on motion-based play.

A Blueprint for Market Expansion

Nintendo’s greatest lesson wasn’t reclaiming market share – it was creating new demand. Rather than competing in a saturated market, it identified an untapped audience and built products around them.

This strategy continues to influence modern gaming. The resurgence of retro consoles, the rise of cloud gaming services that prioritise accessibility over hardware power, and even the success of games like Animal Crossing: New Horizons – which attracted a massive non-traditional gaming audience – can all be linked to the blueprint Nintendo established in the mid-2000s.

Nintendo didn’t just revive its brand – it reshaped the gaming industry. By proving that innovation comes from creating trends, not following them, it set a new standard for market disruption. And its influence didn’t stop at gaming.

Nintendo’s resurgence wasn’t just a corporate turnaround; it redefined how entertainment itself was consumed. By shifting gaming from a skill-based pursuit to a social, inclusive experience, it expanded the industry’s reach far beyond its traditional audience. The DS and Wii weren’t just successful consoles; they were cultural phenomena that reshaped consumer behaviour, fueled the rise of casual gaming, and set the stage for today’s interactive entertainment trends.

The takeaway for brands? Market dominance isn’t about competing harder – it’s about expanding the playing field. Nintendo succeeded by challenging assumptions, identifying unmet consumer needs, and making gaming effortless and engaging. It didn’t just reclaim leadership; it shaped the future of digital entertainment for decades.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.

The marketing department, as we know it, is obsolete.

Generative AI develops millions of personalised ads in milliseconds. Consumers shape brand narratives in real-time. Predictive algorithms anticipate needs before customers even recognise them. The traditional marketing playbook isn’t just outdated; it’s collapsing. Legacy teams, built on rigid hierarchies and campaign cycles, are being outpaced by AI-augmented ecosystems designed for continuous adaptation.

Tomorrow’s marketing function won’t be a department. It will be an intelligence system embedded within product development, customer experience, and behavioural data science. Brands that fail to restructure will not just fall behind; they will disappear.

Winning in this new landscape requires more than AI-driven automation. Emotional intelligence, ethical AI governance, and seamless integration with business operations will separate leaders from laggards.

The shift is already happening. The only question is: how fast can marketing teams evolve?

The five pillars of the future marketing team

#1. AI-Augmented Strategy Teams – Humans and Machines as Co-Pilots

The future of marketing is not about AI replacing human creativity; it’s about AI augmenting it. In the next decade, marketing teams will no longer rely on static consumer personas or outdated segmentation models. Instead, they will deploy real-time predictive marketing engines powered by AI that adapt to shifting consumer behaviours instantaneously.

But here’s the critical distinction: AI will not replace human intuition but enhance its precision. The most successful marketing teams will be those that train AI to think like a strategist while ensuring humans retain control over brand ethos, ethical boundaries, and cultural nuance.

Nike’s marketing team has already embedded AI into its decision-making process, using machine learning to predict product demand, optimise pricing, and create hyper-personalised consumer journeys. However, Nike does not hand over creative control to algorithms; it ensures AI insights serve human-led storytelling and brand building.

However, AI’s increasing role raises governance concerns. If left unchecked, algorithmic bias, AI hallucinations, and opaque decision-making processes can erode consumer trust. Google’s ad-targeting models, for instance, have faced scrutiny for bias in content distribution, highlighting the need for marketing teams to establish AI ethics frameworks.

The human component will remain irreplaceable. AI can crunch data, but it cannot understand cultural nuances, context, or the emotional weight of a story.

Marketing leaders must own the governance of an AI-driven strategy, ensuring automation enhances brand trust rather than undermines it.

#2. Consumer intelligence & behavioural science units to decode decision-making in real-time

The future of marketing will not be driven by demographics but by deep behavioural insights. Real-time consumer intelligence hubs will help track sentiment, subconscious decision-making, and predictive behavioural shifts.

Neuroscience, biometric tracking, and AI-driven sentiment analysis will become the foundation of modern marketing teams. Instead of just asking consumers what they think, brands will measure how they feel in the moment. Eye-tracking, galvanic skin response, and neuro-marketing scans will reveal how audiences react to products, content, and messaging, eliminating the guesswork from engagement strategies.

Unilever has already integrated neuroscience into its advertising research, measuring emotional responses at a subconscious level. By analysing brain activity, Unilever can determine whether an ad creates an authentic emotional connection before it ever reaches a consumer’s screen, ensuring campaigns resonate deeply rather than rely on assumptions.

However, access to such insights comes with ethical responsibility. As marketing teams gain deeper access to real-time consumer psychology, the risk of manipulation increases. Personalisation cannot become digital surveillance.

Brands that thrive will use behavioural data to enhance consumer experiences, not exploit them. Ethical AI oversight within marketing teams will be non-negotiable.

#3. Hyper-personalisation & growth teams leading the shift from segments to individuals

Marketing will no longer be about targeting audiences; it will be about orchestrating individual consumer journeys in real time. Growth teams will shift their focus from optimising channels to engineering highly individualised consumer pathways powered by AI and real-time identity graphs.

Spotify’s AI-driven campaigns, like Discover Weekly and Wrapped, are personalised brand experiences rather than traditional marketing tools. Every interaction refines the algorithm, ensuring recommendations grow more precise, engagement deepens, and retention soars.

This level of hyper-personalisation presents a paradox. The more tailored the experience, the more invisible the marketing becomes. When done well, the consumer does not feel targeted; they feel understood. But when algorithms misfire, the illusion shatters.

Growth teams of the future will need to master the balance between automation and authenticity, ensuring AI-driven personalisation enhances human connection rather than replacing it.

#4. Decentralised, agile creative networks and the end of the traditional in-house model

Marketing teams will no longer operate as rigid, in-house departments. Instead, they will function as fluid, decentralised creative networks, tapping into on-demand talent pools powered by AI-driven collaboration platforms.

Gucci Vault has already embraced decentralised creativity, collaborating with independent digital artists and Web3 designers rather than dictating brand aesthetics from a central creative team. By co-creating with digital-native communities, Gucci ensures its brand narrative evolves organically rather than being imposed from the top down.

Maintaining brand consistency in a decentralised model will be challenging. Future marketing leaders must find ways to empower external creators while ensuring alignment with brand identity.

#5. Ethical & sustainable marketing frameworks: the new non-negotiable

Marketing will no longer be judged solely on performance metrics. The future belongs to brands that align with consumer values and embed ethics and sustainability into their strategies.

Patagonia’s self-imposed carbon tax and long-term sustainability initiatives have proven that consumers reward brands whose actions match their messaging. If a company fails in this area, it can lead to serious greenwashing and ethical mistakes that destroy trust. This is especially true because AI-powered fact-checking tools and decentralised watchdog communities can quickly reveal inconsistencies.

The rise of regenerative marketing will push brands beyond sustainability pledges toward long-term societal impact. Companies will shift from minimising harm to actively contributing to environmental and social well-being. This will require marketing teams to collaborate with policymakers, sustainability experts, and ethical data specialists, creating a new discipline where profit and purpose are no longer opposing forces but interconnected drivers of success.

The future marketing team must integrate ethics into every stage of strategy and execution, ensuring profit and purpose are interconnected rather than opposing forces.

The future marketing leader – a hybrid of technologist, psychologist, and strategist

The CMO role is disappearing. In its place, a new breed of marketing leader is emerging, one who blends data fluency with behavioural science and technology expertise with strategic vision.

Companies like Adobe and Tesla already embed AI, automation, and predictive analytics into their core strategies. But successful marketing leaders will not just be digital experts – they will be experience architects, shaping every consumer touchpoint across an increasingly fragmented landscape.

As marketing, product development, and customer experience become inseparable, the Chief Growth Officer or Chief Experience Officer will replace the traditional CMO, reflecting marketing’s new mandate: not just to promote but to engineer adaptive, intelligent brand ecosystems.

The Marketing Team as a living intelligence system

The marketing team of the future is not just a department. It works as a living, changing system. AI helps boost human creativity, insights about customer behaviour guide decisions, and decentralised networks share brand stories.

But technology alone will not define the winners. The brands that thrive will understand the irreplaceable role of human judgment – the ability to interpret, contextualise, and ethically apply data-driven insights.

To future-proof their marketing teams, organisations must:

  • Invest in cross-functional talent – marketers must be fluent in AI, behavioural psychology, and digital ecosystems.
  • Establish AI governance frameworks – bias, privacy, and transparency will be critical.
  • Shift from campaign-based marketing to real-time experience management or risk irrelevance.

Marketing is no longer a function. It is the foundation of consumer trust, brand longevity, and sustained competitive advantage. The next era will not belong to those who adapt; it will belong to those who lead the transformation.

Stay ahead

Get regular insights

Keep up to date with the latest insights from our research as well as all our company news in our free monthly newsletter.