For years, millennials have been painted with broad, often misleading strokes—labelled lazy, entitled, and financially irresponsible. But is that the real picture? Our latest report, The Modern Millennial, aims to shatter these stereotypes and reveal the truth about how millennials approach work, spending, and their values.
As millennials move into their peak earning years, they’re shaping industries and redefining how we do business. This report breaks down eight powerful codes defining millennial consumer behaviour, offering actionable insights for brands ready to connect authentically with this dynamic generation.
The report highlights eight distinct codes showing how millennials navigate their consumption choices based on their economic behavior and core values providing insights for brands aiming to connect meaningfully with this generation.
Millennials redefine work-life balance by prioritising flexibility and personal well-being. Unlike previous generations, they don’t see work as a sole means to financial security but as part of a holistic life experience. This generation places high value on mental health, leisure time, and opportunities for self-improvement, which extends beyond traditional job benefits like salary. Brands today must recognise that work-life balance is not a perk but an expectation.
This shift has led many organisations to rethink their internal policies. Forward-thinking businesses have adopted flexible work schedules, remote options, and wellness programs. By providing mental health support, meditation apps, and gym memberships, companies align with the millennial desire for workplaces that care about well-being. This change isn’t just about retaining talent; it’s about fostering environments where employees can thrive professionally and personally.
From a millennial viewpoint, organisations failing to evolve risk losing top talent. The companies that succeed are those that understand that work-life integration is essential to productivity and job satisfaction. For millennials, career success isn’t measured only by paychecks but by quality of life, making holistic job satisfaction a crucial element in any recruitment strategy.
Code 2: Millennials Are Everyday Changemakers
Millennials use their purchasing power to support social and environmental causes. This generation is highly aware of the impact their choices have on the world and often makes deliberate decisions to support brands that share their values. They seek out companies prioritising sustainability, fair labour practices, and environmental stewardship and expect them to be transparent about their initiatives.
Brands that actively contribute to social causes gain a competitive edge. Companies like Patagonia and TOMS have built their business models around giving back, which resonates deeply with millennials. For instance, Patagonia’s commitment to environmental activism, such as donating a portion of its profits to conservation efforts, has made it a favourite among socially conscious consumers. These brands don’t just market products; they sell a purpose that consumers can align with.
Millennials also expect authenticity. Greenwashing—when companies falsely claim to be environmentally friendly—is quickly exposed on social media. Brands need to walk the talk by embedding these values into their corporate structure rather than just marketing campaigns. The brands that millennials support demonstrate a genuine commitment to making the world a better place.
Code 3: Millennials Are Equality Champions
Diversity and inclusion are must-haves for millennials. This generation expects brands to promote diversity in their advertising and reflect these values internally. Representation matters, and millennials want to see a workforce that reflects the diversity of their world. This is more than just a trend; it’s a non-negotiable value for this generation.
Brands championing diversity, such as Ben & Jerry’s, have gained millennial loyalty by taking strong public stances on social justice issues. Companies must move beyond tokenism and ensure their efforts are authentic and impactful. Diversity initiatives should extend to all levels of the organisation, from entry-level employees to the C-suite. Millennials want to see inclusive hiring practices, equal opportunities for advancement, and a genuine effort to eliminate systemic biases within companies.
Inclusion isn’t just about hiring a diverse workforce—it’s about fostering a workplace where everyone feels valued and heard. Companies that focus on building an inclusive culture are more likely to retain millennial employees, who are quick to leave environments that don’t live up to their diversity promises. Brands prioritising equality will continue to resonate with millennials, who view their purchasing decisions as activism.
Explore case studies showcasing brands leading the charge for equality and how they reshape perceptions in our comprehensive analysis. Download the report now.
Code 4: Millennials Are Smart Spenders
Frugal yet intentional, millennials navigate economic challenges by making informed spending decisions. This generation grew up during the financial crisis, which shaped their approach to money. They’re cautious but willing to spend on products that offer both value and ethical production. For millennials, quality and transparency matter more than brand loyalty.
Millennials often research extensively before making a purchase. They rely on reviews, price comparisons, and peer recommendations to ensure they’re making the best choice. As a result, brands need to be transparent about what they offer. Ethical considerations, such as sustainable sourcing or cruelty-free products, often influence their final purchasing decision. This focus on informed spending means that brands must be ready to provide proof of quality and social responsibility.
Millennials are also willing to switch brands if they feel they’re getting a better deal or more ethical products elsewhere. This fluidity means companies must work harder to retain millennial customers by offering real value. It’s not just about price but the product’s overall experience and ethical backbone. Brands that can balance cost with quality and transparency are the ones that win over millennial consumers.
Code 5: Millennials Are Brand Besties, Not Loyalists
Millennials’ loyalty is earned through shared values, not rewards programs. Unlike previous generations, who may have stuck with brands due to convenience or tradition, millennials want to build deeper, value-based relationships with the brands they support. This shift has forced companies to rethink how they engage with consumers, moving from transactional relationships to more meaningful connections.
Brands like Glossier have built communities around shared values and authenticity, creating a space where consumers feel like part of a larger movement rather than just customers. By fostering these connections, brands can engage millennials emotionally, leading to stronger, long-term relationships. For millennials, it’s not about points or discounts—it’s about feeling aligned with a brand’s mission.
This generation also values transparency. They want to see a company’s human side, whether through authentic storytelling or real engagement on social media. Brands that pretend to be something they’re not will quickly lose credibility with millennials. The brands that thrive maintain authenticity communicate openly and align their actions with their values.
Code 6: Millennials Are Always Online, Always Ahead
As digital natives, millennials expect seamless experiences across platforms. They grew up in a world where technology is an extension of their daily lives, and they demand that brands keep up. This means having a strong online presence, providing personalised experiences, and ensuring smooth transitions between digital and physical touchpoints.
Brands that leverage technology to enhance personalisation stand out to this generation. Netflix and Spotify are prime examples of using data to curate personalised recommendations that make users feel understood. For millennials, convenience and personalisation are paramount, and they gravitate toward brands that can deliver both without sacrificing quality. Companies must continuously innovate their digital strategies to meet these high expectations.
Moreover, millennials expect brands to be responsive and adaptive in real time. Slow websites, outdated apps, or clunky online shopping experiences can lead them to abandon a brand entirely. Brands must invest in cutting-edge technology to keep pace with the millennial consumer, ensuring their digital journey is smooth, engaging, and personalised.
Code 7. Millennials Crave Meaningful Content
Authentic storytelling is key to capturing millennials’ attention. This generation is sceptical of traditional advertising tactics and responds best to content that aligns with their values. For millennials, it’s not just about what you sell—it’s about the story behind it. They want to know the why behind a brand’s mission and how it aligns with their beliefs.
Meaningful content goes beyond product descriptions. It’s about creating narratives that reflect the values of your target audience. For example, Nike’s “Just Do It” campaigns often feature real stories of athletes overcoming adversity, resonating with millennials who value perseverance and authenticity. Brands that tell stories rather than sell products foster deeper connections with their consumers.
Additionally, millennials engage more with content that sparks conversation or offers value beyond the product. Whether it’s educational, inspiring, or entertaining, the content must connect on a personal level. To capture millennial loyalty, they must move beyond superficial marketing tactics and create content that speaks to their audience’s values and desires.
Nostalgia is a powerful engagement tool for millennials. This generation finds comfort in revisiting the past, often reflecting on childhood memories or simpler times. Brands that reintroduce classic products or themes in modern contexts tap into this desire, creating emotional connections beyond mere product offerings.
Reebok, for instance, has successfully revived classic sneaker designs from the 90s, appealing to millennials who remember these styles fondly from their youth. This blend of the old and new allows brands to balance modern innovation and nostalgic charm. These throwback products evoke memories for millennials while fitting seamlessly into their contemporary lifestyles.
However, nostalgia marketing isn’t just about rehashing old ideas—it’s about recontextualising them for today’s consumers. Brands must be thoughtful in how they incorporate nostalgia, ensuring that it feels relevant rather than forced. The best campaigns honour the past while staying true to the present, creating a sense of continuity that resonates deeply with millennials.
Find out how innovative companies are successfully tapping into nostalgia to drive consumer interest in our full report.
The Modern Millennial report provides a comprehensive look at how these codes shape consumer expectations and behaviours, offering actionable insights for brands to thrive in this evolving marketplace.
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Download the full report here to understand how to navigate the complexities of millennial consumerism and leverage their values for sustained success.
In the quiet corners of boardrooms and the backend of tech startups, Generation X is quietly shaping the world we live in today. Often sandwiched between the vocal Baby Boomers and the digitally dominant Millennials, Gen X has earned the nickname “the forgotten generation.” Yet, despite the lack of spotlight, this generation is at the helm of many of today’s most significant shifts—from the rise of digital-first workplaces to the reinvention of entire industries.
While not known for bold proclamations or hashtags, Gen X’s influence is undeniable. They are the steady hands steering organisations through periods of transition, whether by adopting cutting-edge technologies or fostering flexible work cultures. From the laid-back co-working spaces of Berlin to the bustling financial districts of New York, Gen X leads with pragmatism and a focus on solutions rather than fanfare.
Much like their journey from analogue to digital, Gen X’s impact on the global stage has been one of quiet evolution rather than revolution. But as we look closer, the choices they’ve made—whether embracing remote work or championing financial prudence—have laid the groundwork for trends that future generations will continue to build upon. For brands and industries, understanding this “silent disruptor” is key to predicting what’s next in a world of constant change.
Debunking Gen X Myths
Generation X has long been cast in the shadows of its neighbouring cohorts—seen as slackers in the ’90s and now overshadowed by the cultural clout of Millennials and Boomers. But these characterisations miss the mark entirely. The myth of Gen X apathy, born from an era of grunge music and ironic detachment, hides a far more compelling reality: this is a generation built on resilience, adaptability, and a work ethic forged in times of uncertainty.
Contrary to the slacker stereotype, Gen X entered the workforce during economic volatility and rapid technological change. They faced the collapse of traditional job security and had to navigate careers during the dot-com bust and the Great Recession. Far from being disengaged, Gen Xers became adept at reinventing themselves, pivoting industries, and learning new skills long before terms like “lifelong learning” became buzzwords. In fact, their agility in a shifting world has allowed many to rise to leadership positions today.
Another misconception? That Gen X has been eclipsed by the louder voices of Boomers and the digital prowess of Millennials. The truth is, while they may not court the same media attention, Gen X has been quietly leading from the middle, ensuring stability as they build bridges between the analogue past and the digital future. This generation, often the last to remember a world without the internet, has seamlessly integrated into the digital age, using their tech savvy and pragmatism to guide industries through major transformations.
From shaping flexible work environments to championing mental well-being in the workplace, Gen X is proving they’re anything but passive. As we dispel these outdated myths, what becomes clear is their crucial role as the steady, reliable force behind today’s evolving workforce. Gen X may not be loud, but their impact is unmistakable.
From Analog to Digital: The Pioneers of Tech
Long before the world was swiping screens and talking to voice assistants, Generation X was cutting their teeth on dial-up modems, cassette tapes, and brick-sized cell phones. They witnessed the dawn of the internet and experienced the seismic shift from analogue to digital in real-time. This unique perspective has positioned Gen X as the true pioneers of tech—early adopters who embraced new technologies and have become the leaders shaping today’s digital landscape.
While Boomers had to catch up and Millennials were born into a fully connected world, Gen X learned to adapt as technology evolved. They were the first to send an email, launch websites, and build businesses on early versions of the internet. This generation was at the forefront of industries that were being transformed by technology, whether in finance, media, or entertainment, and they led the charge with a blend of analogue wisdom and digital innovation.
Today, many companies at the cutting edge of tech—whether in Silicon Valley or the fintech hubs of London—are helmed by Gen Xers who understand both the pre-digital and post-digital worlds. They bring a practical, no-nonsense approach to the digital revolution, avoiding the pitfalls of overhyping trends while still embracing innovation. Whether investing in AI, driving advancements in cybersecurity, or shaping the future of media, Gen X leaders use their dual perspectives to steer industries into the next phase of technological evolution.
In a world that often credits Millennials and Gen Z with driving digital transformation, it’s important to remember who paved the way. Gen X bridged the gap between past and future, analogue and digital, and continues to be at the helm of the most critical industries shaping the future.
Balancing Act: Work, Life, and Well-being
Generation X, having grown up watching their Boomer parents navigate the demands of a work-first culture, came to the workforce with a different vision of success. Where Boomers often wore long hours and job loyalty like a badge of honour, Gen X took a more measured approach. They saw the cost of burnout, the toll of high-stress careers, and the strain on personal lives and decided that a better balance was not just ideal—it was essential.
For Gen X, work-life balance isn’t a trendy buzzword; it’s a necessity that has been hard-earned through years of juggling responsibilities. Many in this generation have built careers while simultaneously raising families and navigating both corporate ladders and PTA meetings. They’ve mastered the art of flexibility, often opting for careers that allow them to blend work and personal time, whether through remote work, flexible hours, or entrepreneurial ventures. Gen X is the generation that normalised the idea of working from home long before it became widespread, valuing autonomy and control over rigid office culture.
Mental well-being, too, is at the forefront of Gen X’s priorities. Having witnessed the emotional and physical strain of the Boomer “grind,” Gen X has taken a proactive approach to self-care and workplace wellness. They’ve been instrumental in shaping modern workplace policies prioritising mental health, pushing for employee assistance programs, advocating for boundaries between work and personal life, and supporting more humane approaches to career growth. This generation has led the charge in rethinking what it means to be successful—not just in terms of money or status, but in terms of well-being and fulfilment.
As they enter their peak career years, Gen Xers seek balance, modelling a healthier way to work and live for future generations. Their ability to manage competing demands with pragmatism and grace has set the tone for a future where success isn’t just about climbing the corporate ladder but maintaining a life worth living.
Financial Prudence and Consumer Behavior
Generation X has often been dubbed the “middle child” of modern generations, but when it comes to financial habits, they’ve always been a step ahead in caution and pragmatism. Shaped by economic uncertainty and major disruptions like the 2008 financial crisis, Gen X has learned to approach money with a mix of practicality and wariness, ensuring they’re better prepared for the unpredictable than their younger counterparts.
Unlike Millennials, who tend to focus on experiences over savings, or Boomers, who invested heavily in home ownership and long-term employment, Gen X walks a fine line between spending and saving. They came of age during a time of skyrocketing credit card debt, rising home prices, and fluctuating job markets, making them more financially cautious. For many Gen Xers, the 2008 financial crash was a defining moment—one that reinforced the need for an emergency fund, diversified investments, and a more measured approach to risk.
With retirement looming closer than it is for Millennials, Gen X is heavily focused on building financial security. A generation that lived through both the dot-com bubble and the housing crash, they’ve learned the importance of not putting all their eggs in one basket. You’re likely to find a Gen Xer with a well-rounded portfolio, balancing stocks, bonds, real estate, and other assets. Their investment strategy, while conservative compared to the risk-heavy approach of younger generations, is designed to weather economic downturns and ensure long-term stability.
Consumer behaviour among Gen X reflects this same prudence. They are less likely to chase trends and more likely to spend on products and experiences that offer real value. A desire for quality, longevity, and practicality informs their purchasing decisions. This generation reads reviews, compares prices, and seeks durability over flash. Brands that align with Gen X values of reliability, transparency, and longevity often win their loyalty.
Gen X remains a bastion of financial prudence in a world of instant gratification and consumerism. Their careful balancing of spending and saving, combined with a deep understanding of economic cycles, positions them as the generation most likely to weather future financial storms with resilience and foresight.
The Sustainability Shift: From Consumers to Conscious Advocates
For Generation X, sustainability wasn’t always at the forefront. As young adults, convenience was king, and the idea of environmental responsibility often took a backseat to the demands of juggling careers, raising families, and navigating the rapid pace of technological change. But over time, Gen X has undergone a notable shift—from being passive consumers to becoming active advocates for sustainability and ethical consumption.
As they’ve matured, Gen X has become increasingly aware of the environmental impact of their consumption habits. What began as an interest in recycling or reducing waste has evolved into a full-scale commitment to supporting eco-friendly brands and practices. Unlike younger generations who grew up with sustainability as a central narrative, Gen X’s journey toward environmental consciousness has been more gradual, driven by both personal experiences and a growing awareness of global environmental challenges.
Today, Gen X is one of the strongest proponents of sustainability, willing to pay more for ethically sourced and eco-friendly products. Brands that prioritise transparency in their supply chains, minimise their carbon footprints, and align with values of environmental stewardship are most likely to capture their attention—and their wallets. This generation’s desire for authenticity means they’re quick to spot greenwashing, holding companies accountable for living up to their promises of sustainability.
Gen X’s advocacy extends beyond personal consumption. Many in this cohort are now leading organisations or holding positions of influence, bringing their eco-conscious values into the workplace. Whether implementing sustainable business practices, reducing corporate waste, or supporting green initiatives, Gen X leaders are making a tangible impact on industries worldwide.
The transition from convenience-driven consumerism to conscious advocacy is one of Gen X’s most significant evolutions. In an era where sustainability is no longer optional but a necessity, they’ve proven that it’s never too late to adapt, evolve, and take responsibility for the future of the planet. Their practical, no-nonsense approach to sustainability is reshaping industries and setting a standard for generations to come.
Media and Entertainment: Tailoring Experiences for Gen X
When it comes to media consumption, Generation X straddles two worlds: the nostalgic pull of analogue and the convenience of the digital age. This generation grew up with mixtapes and Saturday morning cartoons but also embraced the rise of streaming services and social media. Their tastes reflect this unique position, blending a love for classic content with a desire for the latest entertainment technology.
For Gen X, nostalgia is a powerful force. Reboots of ’80s and ’90s TV shows, remastered albums, and sequels to classic films aren’t just pop culture trends—they’re direct appeals to a generation that values the memories of their youth. Platforms like Netflix and Hulu have tapped into this sentiment by offering a mix of original programming and licensed content from decades past. Streaming services have allowed Gen Xers to revisit old favourites while seamlessly integrating new shows and films into their viewing habits.
At the same time, Gen X is far from stuck in the past. They were the first to embrace digital entertainment, from the early days of music downloads to today’s multi-platform streaming environment. Unlike Boomers, who may find themselves overwhelmed by the rapid pace of digital innovation, or Millennials, who are digital natives, Gen X finds comfort in navigating traditional and new media. Whether binge-watching the latest series on their smart TVs or listening to podcasts during their commute, this generation has adapted to the demands of the digital landscape without abandoning the media they grew up with.
This duality has made Gen X a driving force in the demand for a wide range of entertainment experiences. They value the ability to tailor their media consumption to fit their moods—sometimes seeking the comfort of nostalgia, other times exploring cutting-edge content on innovative platforms. They’re just as likely to sign up for the latest streaming service to dust off a vinyl record or attend a classic film screening.
Understanding this blend of nostalgia and innovation is key for brands and media companies. Gen X expects flexibility in their media choices, and they appreciate platforms that offer high-quality new content and access to the media that shaped their formative years. By catering to these preferences, companies can capture the attention of a generation that’s as comfortable in the digital age as they are reminiscing about the analogue one.
Global Perspectives: Gen X Across Borders
While Generation X shares common experiences, such as the transition from analogue to digital and the pursuit of work-life balance, their values and consumer behaviours are deeply influenced by the cultural contexts in which they live. From the fast-paced urban centres of the U.S. to the tech-savvy streets of Asia, Gen Xers around the world have developed unique perspectives shaped by local economies, social norms, and regional trends.
In the United States, Gen X emerged during an era of relative economic stability followed by seismic disruptions, such as the dot-com bubble and the 2008 financial crisis. This economic whiplash has led to a cautious and pragmatic approach to spending and saving. American Gen Xers prioritise financial security, investing in retirement funds, real estate, and education for their children. Still, they also indulge in experiences—travel, dining, and entertainment—as rewards for their hard work. They strongly advocate for sustainability, increasingly opting for eco-friendly products and transparent business practices.
Across Europe, particularly in countries like Germany and the UK, Gen Xers are known for their focus on quality and practicality. With a history steeped in craftsmanship and design, European Gen X values durability and functionality in the products they choose, preferring brands that reflect reliability. Financial prudence and a commitment to sustainability are key factors, with many opting for long-term investments in property and low-risk financial strategies. Their deep-seated commitment to environmentalism shapes both personal and professional decisions, as they support businesses and initiatives that champion green living.
In Asia, Gen X displays an impressive adaptability to rapid technological advancement. In countries like China and Singapore, this generation has seamlessly integrated into the digital economy, leading industries in finance, e-commerce, and technology. Gen X in these markets is known for its entrepreneurial spirit, balancing traditional family values with the fast-paced demands of modern business. While they appreciate the convenience and digital innovation, many are still grounded in a respect for cultural heritage, seeking out brands that honour both tradition and forward-thinking innovation.
India’s Gen X, like their global peers, has also been shaped by rapid change, particularly in technology and economic growth. Known for their resourcefulness, Indian Gen Xers balance modernity with tradition, maintaining strong familial ties while embracing digital solutions in their professional and personal lives. Their consumer behaviour reflects a dual focus: they seek value and quality in their purchases but are also highly tech-savvy, leveraging digital platforms for e-commerce, education, and entertainment.
In Southeast Asia, particularly in countries like Thailand and the Philippines, Gen X demonstrates strong ties to community and family. While they are digitally connected and innovative in their use of technology, they often prioritise decisions that benefit not only themselves but also their extended families and local communities.
Sustainability plays an increasingly significant role in purchasing decisions, with many supporting local businesses and eco-friendly products aligning with their environmental and social values.
Across borders, Gen X stands as a generation that balances tradition with innovation, financial security with personal indulgence, and local culture with global trends. While their specific behaviours may differ from region to region, the underlying values of resilience, adaptability, and a focus on the present and future remain the same. As global citizens, Gen X is shaping industries and consumer markets in ways that reflect their individual circumstances and the shared experiences of a generation that has witnessed—and adapted to—unprecedented global change.
Challenges and Opportunities for Brands
As Generation X enters their 50s and 60s, brands have a unique opportunity to engage a cohort that values practicality and authenticity while embracing digital convenience. This generation, which has often been overshadowed by the louder narratives surrounding Boomers and Millennials, is now poised to influence key markets with their distinctive approach to consumption and decision-making. For brands looking to connect with Gen X, understanding the challenges they face and the opportunities emerging from their evolving needs is critical.
The Need for Authenticity and Practicality
Gen X is known for their scepticism towards traditional advertising. They grew up in an era of mass media but quickly adapted to digital technologies, and they expect brands to speak to them with transparency and sincerity. Marketing campaigns that lean heavily on flashy promises or unproven trends will likely fall flat with this demographic. Instead, Gen X prefers brands that offer practical solutions to their current needs, whether it’s high-quality products, services that simplify their lives, or financial tools that help them plan for the future.
To engage Gen X, brands must highlight the tangible benefits of their offerings, focusing on long-term value rather than short-term gimmicks. According to a report by Kantar, 78% of Gen Xers say they are more loyal to brands that are honest about their products and services. Brands prioritising transparency, durability, and functionality over trend-chasing will resonate with this group.
Digital Convenience with a Personal Touch
While Millennials and Gen Z are often lauded for their tech-savviness, Gen X was the first to embrace digital tools and platforms. They are comfortable shopping online, using digital financial services, and staying connected via social media.
However, unlike younger generations, Gen X values personalised experiences, direct customer service, and digital convenience. This creates a challenge for brands to blend high-tech solutions with a personal, human touch.
Gen X expects efficiency in their digital interactions but also wants to speak to a real person when needed. Brands that provide seamless omnichannel experiences—where consumers can transition easily from digital to in-person service—will win over this demographic. For instance, financial services and healthcare industries can leverage this by offering user-friendly digital platforms combined with accessible, expert consultations.
Future Trends: What Will Matter to Gen X?
As Gen X ages, their priorities are shifting, and brands need to anticipate these changes. Key focus areas include health, financial security, and caregiving responsibilities as Gen Xers begin to care for ageing parents while also planning for their retirement. The rise of telemedicine, home care services, and retirement planning tools are becoming increasingly important to this generation, with many seeking out brands that can address these specific needs with both practicality and innovation.
Here are some industries and products that will play a crucial role in Gen X’s future:
Industry/Product
Why It Matters
Opportunities for Brands
Aged Care & Caregiving
With Gen X now parenting their parents, caregiving services, home care solutions, and elder tech will surge.
Offer digital caregiving platforms, home health devices, and in-home assistance tailored to their practical needs.
Health & Wellness
Aging concerns like preventative care, fitness, and mental health are rising.
Brands should provide comprehensive health management apps, telehealth services, and accessible wellness products.
Retirement & Financial Planning
As they approach retirement, Gen X is focused on financial stability and investment options.
Financial brands can offer tailored retirement planning tools, investment apps, and educational resources.
Home Technology & Security
Many Gen Xers are upgrading their homes for comfort and security in later years.
Smart home technologies, from security systems to energy-efficient devices, will appeal to their desire for safety and sustainability.
Travel & Leisure
While mindful of finances, Gen X is eager to experience meaningful travel, focusing on family-friendly or eco-conscious options.
Brands can promote eco-friendly travel packages, family adventures, and loyalty programs that reward practical spending.
Personalized Consumer Goods
As discerning consumers, Gen X looks for quality and customisation in products, from fashion to tech gadgets.
Brands offering personalised products, limited editions, and superior customer service will win their loyalty.
Aging with Tech: The Rise of Digital Health and Wellness
One of the most significant opportunities for brands lies in the intersection of health, ageing, and technology. As Gen Xers prioritise their well-being, telemedicine, and wearable health tech will play a pivotal role in their lives.
According to a recent study by Accenture, 60% of Gen Xers are open to telehealth services, and 45% already use some form of wearable technology to monitor their health. Brands that provide easy-to-use, integrated solutions—such as apps that track health metrics or offer virtual consultations—will find a loyal audience.
Furthermore, mental health is becoming increasingly important for this generation. Having witnessed the stress-heavy lifestyles of Boomers, Gen X is now actively seeking tools and services that help them maintain work-life balance and reduce stress. Brands offering meditation apps, mental health resources, or flexible wellness programs can capitalise on this growing demand.
Financial Prudence Meets Digital Innovation
Financial security is a top concern for Gen X as they approach retirement. Many have experienced the 2008 financial crisis and remain cautious but increasingly turn to digital solutions to manage their money. Brands that offer innovative financial tools—whether through robo-advisors, digital banking platforms, or AI-driven investment apps—are well-positioned to serve this need. According to a report by Deloitte, 52% of Gen Xers use digital banking services regularly, and the number is expected to rise as more turn to apps for financial planning and retirement investments.
The Gen X Loyalty Factor: Winning with Consistency
Loyalty is critical for this generation. Unlike Millennials who tend to switch brands frequently, Gen X is more likely to stick with brands that meet their needs over the long term. This is an opportunity for brands to cultivate loyalty through consistent quality, excellent customer service, and rewards programs that offer real value. Offering long-term solutions, from investment products to healthcare plans, will foster trust and ensure Gen X returns as repeat customers.
The Legacy of Generation X
As the years pass, Generation X will not be remembered for making the loudest noise or demanding the most attention. Instead, their legacy will be defined by the quiet yet powerful ways in which they disrupted industries, reshaped workplace cultures, and adapted to the technological transformations that now drive our world. Often dubbed the “silent generation” of the modern age, Gen X’s influence is rooted in pragmatism, resilience, and a remarkable ability to balance tradition with innovation.
They bridged the analogue and digital divide, led organisations through economic uncertainty, and pioneered shifts in everything from financial prudence to work-life balance. Far from being passive, Gen X has consistently found ways to shape the world on their terms, embracing change while maintaining their core values of practicality and loyalty.
They redefined the meaning of success, prioritising mental well-being and sustainability long before these became mainstream topics, and they’re now leading in the global conversation on ethical consumerism and digital transformation.
As they continue to age, their role in society will only grow more significant. From guiding younger generations with their unique blend of wisdom and adaptability to shaping the industries of caregiving, health, and finance, Generation X’s legacy will be one of quiet, thoughtful leadership. Their ability to navigate complex challenges, coupled with a dedication to authenticity and practical solutions, has left an indelible mark on the world that will be felt for generations to come.
In the end, Generation X doesn’t need to shout to make an impact—they’ve already proven that their strength lies in the power of steady, deliberate disruption.
Like many developing countries, Indonesia‘s economic liberalisation in the mid-1980s brought growth alongside inequality.
Urban centres thrived, attracting investment, jobs, and infrastructure, while rural areas lagged, widening the gap in living standards. This divide extends beyond income and development, shaping the distinct consumer behaviours seen today.
In urban areas, consumers are drawn to the convenience of modern retail formats like malls, hypermarkets, and e-commerce. Meanwhile, in rural regions, traditional markets and neighbourhood stores remain the preferred choice, rooted in community ties and local customs. Understanding these contrasting buying behaviours is essential for brands navigating Indonesia’s vast and diverse market.
The Urban Retail Landscape of Indonesia
Modern retail dominates Indonesia’s growing urban centres. Cities like Jakarta, Surabaya, and Bandung boast sprawling malls, hypermarkets, and a robust e-commerce ecosystem. Urban consumers, with higher incomes and better access to technology seek convenience, variety, and efficiency in their shopping.
Malls are more than just shopping destinations; they are social hubs where people gather for entertainment, dining, and leisure. The rise of hypermarkets, offering a one-stop shopping experience, has further driven urban consumers away from traditional markets. E-commerce, fueled by Indonesia’s increasing internet penetration, has also reshaped shopping habits, allowing urban dwellers to make purchases from the comfort of their homes, particularly for fashion, electronics, and household items.
Key data & insights about Indonesia’s urban consumers:
Infrastructure improvements and the growing middle class drive urban retail growth.
According to a 2023 Nielsen report, urban households spend nearly 30% of their monthly income on modern retail and e-commerce, compared to 8% in rural areas.
Platforms like Tokopedia, Shopee, and Lazada have experienced rapid growth in cities, capitalising on the shift toward digital purchasing and mobile payments.
Urban Consumer Behaviour
Urban consumers in Indonesia exhibit distinct characteristics shaped by rapid urbanisation, rising incomes, and a growing middle class. Key behaviour patterns include:
Emphasis on Convenience and Speed: Urban consumers prefer quick, seamless shopping. They gravitate toward one-stop shops like malls and hypermarkets, where they can find a variety of products under one roof. Time efficiency is essential for busy city dwellers.
High Adoption of Digital Channels: Urban Indonesians are increasingly comfortable with digital shopping. E-commerce platforms like Tokopedia and Shopee have transformed purchasing habits, especially in fashion, electronics, and household goods. McKinsey reports that urban households are more likely to experiment with online shopping and are heavy social media users, although full adoption of e-commerce still faces hurdles.
Brand Loyalty and Preference for Local Products: Despite exposure to global brands, Indonesian urban consumers strongly value local products, particularly in food and beverage categories. However, perception matters greatly—many consumers mistakenly believe international brands with localised marketing are Indonesian, giving global brands opportunities if they adapt effectively.
Mobile and Social Media Usage: Urban consumers are heavy users of smartphones and social media platforms. However, despite high engagement in social media, trust issues with online payment systems mean that urban Indonesians still often hesitate to fully embrace e-commerce.
Shift Toward Premium and Discretionary Spending: With rising disposable incomes, urban consumers are increasingly willing to spend on premium products and discretionary items such as travel, leisure, and personal electronics. This trend is expected to accelerate as more Indonesians join the consuming class by 2030.
Example: Tokopedia’s Urban Expansion Strategy
Image Source: KrASIA
Tokopedia, one of Indonesia’s leading e-commerce platforms, recognised the rapid shift toward digital purchasing among urban consumers and developed a targeted strategy to capitalise on this growing trend. Tokopedia invested heavily in its logistics network to ensure same-day or next-day delivery in urban centres like Jakarta and Surabaya. This fast fulfilment option was a key differentiator for time-sensitive urban shoppers, who value convenience above all.
Tokopedia also launched hyper-targeted promotions and partnerships with local urban retailers, blending e-commerce with brick-and-mortar stores. As a result, they managed to capture a significant portion of the urban retail market. From January to May 2023, Tokopedia saw an increase in inter-island shipments, with the farthest shipment happening from Medan (North Sumatra) to Merauke (Papua). In addition to helping people meet their physical product needs, Tokopedia makes it easier for people to access digital products.
Tokopedia’s success illustrates how e-commerce platforms can tap into Indonesia’s urban consumer base by focusing on fast delivery, localised strategies, and convenience—meeting the high expectations of tech-savvy urban shoppers.
The Rural Retail Landscape in Indonesia
In rural Indonesia, traditional markets and small neighbourhood stores, known as warungs, remain the cornerstone of daily shopping for most households. These informal retail channels offer essential goods and serve as key social hubs for rural communities. Rural buying habits are deeply rooted in cultural practices and community ties, differing significantly from urban shopping behaviours.
Key data & insights about Indonesia’s urban consumers:
According to McKinsey, over 60% of rural consumers still rely heavily on traditional markets, even though modern retail formats are gradually entering these areas.
Due to limited income and a cash-based economy, rural consumers are more likely to make frequent, small-value purchases. Cash transactions account for over 90% of retail purchases in these areas.
The role of neighbourhood stores remains significant because of limited access to larger, modern retail outlets and logistical challenges stemming from Indonesia’s geographical diversity, with thousands of islands and less-developed infrastructure.
Consumer Behaviour in Rural Indonesia:
Trust and Familiarity: Rural consumers tend to shop at stores with established trust with the vendor. Unlike urban consumers who prefer the efficiency of hypermarkets and e-commerce, rural buyers are more likely to develop long-term relationships with local shopkeepers.
Community-Centric Shopping: Rural shoppers often view traditional markets as social spaces where they can interact with friends and neighbours, making shopping a communal experience. The lack of infrastructure for larger retail chains often reinforces the need for these local markets to thrive.
Lower Brand Awareness: Rural consumers have lower brand awareness than urban consumers. Large marketing campaigns influence them to choose products based on price and familiarity.
Limited Adoption of Digital Transactions: E-commerce has not yet fully penetrated rural areas, with low levels of digital literacy and unreliable internet access being major barriers. Rural consumers typically prefer to see and touch products before purchasing, which challenges brands looking to expand online.
Example: Indofood’s Success in Rural Markets
Image source: Seeking Alpha
Indofood, Indonesia’s leading food company, has successfully navigated the rural market through its widespread distribution network and focus on affordable, locally adapted products. By focusing on everyday essentials like instant noodles and snacks, Indofood has built a strong presence in rural communities. The company’s strategy involved partnering with local vendors and warungs, ensuring its products reached even the most remote regions.
Indofood’s localised pricing and packaging, such as smaller, affordable portions, have catered to the economic realities of rural consumers. The brand’s deep integration into the rural retail landscape showcases how companies can thrive by tailoring products and pricing to local needs.
Drivers Behind the Urban-Rural Divide in Indonesia
The stark differences in consumer behaviour between Indonesia’s urban and rural populations are shaped by a complex interplay of geographic, economic, and cultural factors. These underlying drivers help explain why urban areas lean towards modern retail formats while rural areas prefer traditional markets and local stores.
Geographical and Infrastructure Barriers
Fragmented Geography: Indonesia’s vast archipelago of over 17,000 islands creates logistical challenges for modern retail expansion in rural areas. Remote villages often lack the infrastructure needed for large retailers or e-commerce to penetrate these markets effectively. As a result, rural consumers continue to rely heavily on nearby traditional markets.
Access to Technology and Internet: Urban centres enjoy better internet connectivity and mobile coverage, fostering the growth of e-commerce and digital payments. However, rural regions suffer from unreliable connectivity, limiting the adoption of online shopping and digital transactions.
Economic Disparities
Income Levels: Urban households typically enjoy higher incomes, enabling them to spend more on premium goods and services. McKinsey reports urban consumers account for 55% of Indonesia’s GDP, driven by the increasing affluence of middle-class families. In contrast, rural areas have lower purchasing power, driving consumers to prioritise affordability and essential goods.
Discretionary vs. Essential Spending: Urban consumers allocate a significant portion of their income to discretionary spending, including fashion, electronics, and leisure, while rural households focus more on essentials like food and daily necessities. This leads to differences in the types of products available in rural traditional markets versus urban malls and hypermarkets.
Cultural Preferences
Community and Trust: In rural areas, shopping is a community-centric activity, where trust in local vendors is crucial. Consumers prefer to buy from people they know and have established relationships with, reinforcing the role of neighbourhood stores and traditional markets.
Modern vs. Traditional Lifestyles: Urban consumers, influenced by globalisation and digital media, are more open to adopting modern lifestyles and shopping habits. This includes using mobile wallets, loyalty programs, and online promotions. Meanwhile, rural consumers tend to stick to long-standing traditions and purchase behaviours that are less affected by global trends.
Emerging Trends in Both Markets
Urban Retail: There is a clear trend toward premiumisation in cities, with more urban consumers willing to pay for high-end products. Rising disposable incomes and greater exposure to international brandssupport this trend. E-commerce is also rapidly growing, especially among younger, tech-savvy urbanites prioritising convenience and speed.
Rural Shift: While traditional markets dominate, rural areas are starting to see the introduction of small-scale modern retail formats such as convenience stores. Brands are beginning to explore hybrid models that combine modern convenience with the local, community-driven experience that rural consumers value.
Bridging the Divide: Opportunities for Brands in Indonesia
The urban-rural divide presents both challenges and opportunities for brands. Successfully navigating these markets requires a tailored approach that recognises each consumer base’s unique needs and preferences. Brands that can adapt their strategies to cater to urban and rural shoppers stand to gain significant traction in Indonesia’s rapidly growing economy.
Strategy for Urban Markets
Digital Transformation and E-Commerce: In urban centres, brands must strengthen their digital presence. This includes investing in e-commerce platforms, mobile apps, and digital marketing strategies to meet the expectations of tech-savvy urban consumers. Offering features such as personalised shopping experiences, app-based promotions, and fast delivery services are key to success.
Premiumisation and Loyalty Programs: As urban consumers shift toward premium products, brands should leverage loyalty programs, exclusive online offerings, and partnerships with premium retailers to capture this growing segment. Creating a seamless omnichannel experience where physical and digital stores complement each other can enhance customer engagement.
Strategy for Rural Markets
Local Trust and Personalisation: Brands targeting rural markets should prioritise building trust and offering personalised, localised experiences. Partnering with traditional market vendors and warungs can help reach rural consumers who rely on these familiar channels. Smaller packaging and affordable pricing, tailored to the spending power of rural buyers, will also resonate with this demographic.
Adapting Modern Retail Formats: Introducing modern retail formats, such as mini-marts and convenience stores, in rural areas can bridge the gap between traditional markets and modern trade. These stores should balance modern convenience and local appeal, offering products that rural consumers trust at prices they can afford.
Hybrid Retail Models
Blending Traditional and Modern: A hybrid retail model may be key to succeeding across Indonesia’s urban and rural markets. Brands that combine the convenience of modern retail with the trust and familiarity of traditional channels can win over consumers from both demographics. For instance, local brands could experiment with smaller physical stores in rural areas offering e-commerce options for urban dwellers, creating an integrated shopping experience.
Final Thoughts
Indonesia’s urban-rural divide presents a unique landscape where brands must balance modern retail innovations with deep-rooted traditional practices. While urban areas are hubs of growth, driven by rising incomes, digital adoption, and a shift toward premium products, rural areas remain anchored in trust, familiarity, and community-oriented commerce. The key to navigating this divide lies in developing nuanced strategies that respect these differences while capitalising on the evolving retail dynamics in both markets.
Brands that succeed in Indonesia will be those that can not only cater to urban consumers’ demand for convenience and digital integration but also engage rural shoppers through personalised, trust-based relationships. Bridging this gap requires a hybrid approach—leveraging e-commerce, modern retail formats, and mobile technologies in urban regions while maintaining localised, affordable, and culturally relevant offerings in rural areas.
By aligning their strategies with these consumer behaviours and considering the economic and infrastructural challenges, brands can create a strong presence across both urban and rural markets. In doing so, they can secure a competitive edge in one of Southeast Asia’s most diverse and fast-growing markets, ensuring long-term success and customer loyalty.
When executed with precision and cultural sensitivity, this tailored, dual-market approach can unlock significant growth potential, allowing brands to thrive amidst Indonesia’s diverse and rapidly transforming retail environment.
Consumer beliefs and behaviours are evolving at an unprecedented pace. To keep up with—and potentially shape—these shifts, brands must harness deep consumer insights. According to Epsilon’s 2023 research, 80% of consumers are more likely to make a purchase when brands offer personalised experiences. This statistic highlights the importance of understanding what drives your customers’ decisions.
Usage and attitude surveys are essential for capturing these insights, providing a comprehensive view of how consumers interact with products and services. By delving into what consumers think and how they use offerings, brands can uncover actionable data to fuel innovation and strengthen customer relationships. Leveraging these surveys enables organisations to align their strategies with their market’s true needs and desires, ensuring they remain responsive to evolving consumer needs.
Definition and Purpose of Usage and Attitude Surveys
Usage and attitude surveys (U&A) are structured market research tools designed to gather detailed information about how consumers interact with products and services (usage) and their perceptions, feelings, and opinions about them (attitude).
These surveys typically consist of targeted questions to uncover patterns in consumer behaviour, preferences, and motivations.
Role of Usage and Attitude Surveys in Market Research
Understanding Consumer Behaviour: Analysing how often and in what ways consumers use a product helps identify usage trends and potential areas for improvement.
Assessing Brand Perception: Gauging how consumers perceive a brand, including its strengths, weaknesses, and overall brand sentiment.
Informing Product Development: Guiding the creation of new products or enhancing existing ones to better meet consumer needs.
Measuring Market Satisfaction: Providing metrics to assess customer satisfaction and loyalty critical for long-term business success.
Benefits of Usage and Attitude Surveys
According to McKinsey’s report, companies that excel at data-driven decision-making are five times more likely to make faster decisions than their competitors and twice as likely to be in their industries’ top quartile of financial performance.
Deep Consumer Insights: Delving into the nuances of consumer behaviour and preferences provides a comprehensive understanding of what drives purchasing decisions.
Data-Driven Decision Making: Relying on empirical data informs strategies, reducing the reliance on intuition or guesswork.
Enhanced Personalisation: Understanding consumer attitudes allows brands to tailor marketing efforts to resonate more deeply with their target audience.
Competitive Advantage: Effectively leveraging these insights differentiates companies by aligning their offerings closely with consumer expectations.
Risk Mitigation: Identifying potential issues or shifts in consumer sentiment enables brands to proactively address challenges before they escalate.
Why and When to Perform a Usage and Attitude Study
U&A studies are highly versatile tools that can be utilised in various scenarios to extract critical consumer insights. Brands should consider conducting a U&A study under the following circumstances:
Situations to Conduct a U&A Study
Situation
Need
Benefit
Understanding Customer Desires and Pain Points
Gain a comprehensive understanding of what customers truly want and the challenges they encounter.
Identify areas where your products or services can better meet customer needs, enhancing satisfaction and loyalty.
Identifying Consumption Opportunities
Discover potential areas for increasing product usage or driving additional consumption.
Uncovers untapped opportunities to boost sales and enhance product adoption.
Developing New Products or Marketing Strategies
Ensure new product categories or marketing initiatives align with consumer preferences and market demands.
Guides creating products and strategies that resonate with your target audience, increasing the likelihood of success.
Analyzing the Competitive Landscape
Gain a deeper understanding of how your brand stands relative to competitors.
Provides insights into market positioning and consumer perceptions, enabling strategic adjustments to outperform competitors.
Objectives of a Usage and Attitude Study
Conducting a U&A study serves several key objectives instrumental in shaping effective market strategies:
Trend Analysis in Buyer Behaviour:
Objective: Observe and analyse the latest trends in consumer behaviour that drive market dynamics.
Example: The COVID-19 pandemic significantly altered purchasing patterns, such as increased home consumption of products like wine and spirits.
Deepening Buyer Understanding:
Objective: Gain a profound understanding of how customers incorporate your products into their daily lives.
Example: Insights into how customers use an at-home elliptical machine—such as its placement in the home, frequency of use, and shared usage among family members—can inform product enhancements and targeted marketing campaigns.
Measuring Product Demand:
Objective: Assess consumer demand for your products at each stage of the development process, including ideation, development, go-to-market, and iteration.
Example: A U&A study for yoga mats targeting beginners can reveal the need for illustrated guides, leading to the development of mats that cater specifically to novice users.
Strategic Planning for Future Initiatives:
Objective: Inform and optimise strategies for significant changes, such as launching new product ranges, investing in major advertising campaigns, extending the brand, or entering new markets.
Example: Before launching a new product line, a U&A study can clarify customer preferences and usage patterns, ensuring the initiative is well-aligned with market needs.
Overview of Consumer Diversity
Understanding consumer perspectives across diverse markets is paramount for global success. The United States and the United Kingdom represent mature markets with high consumer sophistication and demand for innovation.
In contrast, emerging markets like Indonesia, Vietnam, India, the Philippines, and Thailand are characterised by rapid economic growth, increasing internet penetration, and a burgeoning middle class eager to adopt new products and services.
Meanwhile, China and Japan offer unique cultural dynamics and technological advancements that influence consumer behaviour distinctly.
Singapore is a strategic hub in Southeast Asia, blending Western and Eastern consumer traits.
Each country presents its own set of opportunities and challenges for companies aiming to tailor their market approaches effectively.
Key Findings: Common Trends and Unique Insights
Country
Trend
Insight
Unique Insight
United States
High demand for personalized experiences and sustainable products.
75% prefer brands offering personalized recommendations based on past behaviors.
60% are willing to pay a premium for eco-friendly products.
United Kingdom
Increased focus on digital engagement and online shopping.
68% engage with brands through social media, influencing purchasing decisions.
Post-Brexit, there is heightened awareness around local sourcing and supporting British-made products.
China
Dominance of mobile commerce and digital payment systems.
Mobile commerce accounts for 70% of all online sales.
Consumers prefer integrated ecosystems, favoring brands offering seamless digital experiences across devices.
Japan
Emphasis on quality and brand loyalty.
80% remain loyal to brands delivering high-quality products.
Interest in combining traditional craftsmanship with modern technology influences product design and marketing strategies.
Singapore
High adoption of advanced technologies and smart products.
85% are open to using smart home devices and AI-driven services.
Consumers value efficiency and convenience, driving demand for innovative solutions that save time and enhance lifestyle.
Indonesia
Rapid growth in e-commerce and digital adoption.
E-commerce sales are expected to reach $130 billion by 2025, up from $44 billion in 2020.
Mobile-first consumers prefer apps offering seamless shopping and localized content.
Vietnam
Increasing disposable income and consumer spending.
Consumer spending is projected to grow by 10% annually over the next five years.
Consumers prefer value-for-money products, balancing quality with affordability.
India
Diverse consumer base with varying preferences across regions.
70% prioritize brand reputation and trust when making purchases.
Rising trend of health and wellness products driven by health awareness post-pandemic.
Philippines
High social media influence and digital connectivity.
76 million are active social media users, heavily influencing shopping habits.
Community and peer recommendations make influencer marketing highly effective.
Thailand
Growing interest in experiential and lifestyle products.
65% prefer spending on experiences over material goods.
Significant market for health-conscious and eco-friendly products, aligning with sustainability trends.
Sources:
Nielsen 2023 report
Mintel 2023 study
Statista 2023 report
McKinsey 2023 survey
IDC Singapore 2023 report
Google-Temasek 2023 report
PwC Vietnam 2023 report
KPMG India 2023 report
We Are Social and Hootsuite 2023 data
Euromonitor Thailand 2023 report
Tailoring Market Approaches
Understanding the nuanced consumer perspectives globally allows brands to craft tailored strategies that resonate with each market’s unique characteristics.
Here’s how these insights can inform strategic decisions:
Personalisation and Localisation: Offer personalised experiences that cater to local preferences, such as eco-friendly products in the UK or health-conscious offerings in Japan.
Digital Engagement: Invest in robust online platforms and social media marketing to enhance brand visibility and consumer interaction.
Product Development: Innovate based on quality preferences in Japan and the demand for smart products in Singapore.
Marketing Strategies: Emphasise peer recommendations in the Philippines and unique customer experiences in Thailand.
Operational Efficiency: Optimise mobile commerce platforms and ensure seamless digital payment systems in Indonesia and Vietnam.
Sustainability Initiatives: Integrate and communicate eco-friendly practices to enhance brand loyalty and attract conscientious consumers globally.
Transforming Market Strategies with Survey Data
Integration of Data into Market Strategies
Integrating usage and attitude survey data into market strategies is essential for transforming raw insights into actionable business decisions.
Here are key methods to ensure survey findings seamlessly inform and enhance your market strategies:
Data Consolidation and Centralisation:
What is it? Aggregate data from various surveys and sources into a centralised database or data warehouse for a holistic view of consumer behaviours and attitudes.
Implementation: To integrate and manage data efficiently, utilise advanced data management platforms such as Salesforce CRM or Microsoft Power BI.
Example: A global consumer goods company could consolidate survey data from its operations in multiple countries into a centralised system, enabling real-time access to insights across departments.
Advanced Analytics and Reporting:
What is it? Employ statistical analysis, machine learning, and predictive analytics to uncover patterns and forecast future consumer behaviours.
Implementation: Use tools like Tableau, SAS, or Python-based analytics to perform in-depth analyses and generate comprehensive reports.
Example: McKinsey & Company’s 2023 report highlights how advanced analytics can predict consumer trends, allowing companies to adjust their strategies proactively.
Segmentation and Personalisation:
What is it? Segment the consumers based on demographics, behaviours, and attitudes identified through surveys to create targeted marketing campaigns.
Implementation: Implement customer segmentation strategies using platforms like Adobe Analytics or Google Analytics to tailor marketing efforts.
Example: A leading e-commerce platform could use segmentation data to personalise email marketing and increase open and conversion rates.
Cross-Functional Collaboration:
What is it? Foster collaboration between marketing, product development, and customer service teams to ensure insights are integrated into all aspects of the business.
Implementation: Conduct regular interdepartmental meetings and workshops to share key findings and develop cohesive strategies.
Example: Many brands utilise cross-functional teams to integrate consumer insights into product innovation, which has led to the successful launch of several market-leading products.
Continuous Feedback Loops:
What is it? Establish ongoing mechanisms for collecting and analysing consumer feedback to keep strategies dynamic and responsive to changing market conditions.
Implementation: Continuous feedback systems should be implemented using platforms like Qualtrics or SurveyMonkey to gather and analyse consumer input regularly.
Example: Brands can maintain continuous feedback loops through regular surveys, enabling them to swiftly adapt their marketing strategies based on real-time consumer sentiments.
Strategic Tailoring with Data-Driven Insights
Data-driven insights from usage and attitude surveys empower brands to customise their branding and product management strategies effectively.
Here are examples of how these insights can be leveraged:
Personalised Marketing Campaigns:
Tailor marketing messages and campaigns based on individual consumer preferences and behaviours identified through survey data.
Example: Netflix uses detailed consumer usage data to personalise content recommendations, enhancing user engagement and retention. In 2023, personalised recommendations contributed to a 20% increase in viewer hours watched.
Product Development and Innovation:
It involves utilising consumer feedback to guide the development of new products or the enhancement of existing ones, ensuring they meet market needs.
Example: Apple consistently integrates consumer feedback into its product development cycle. The introduction of the Apple Watch Series 8 was heavily influenced by user surveys indicating a strong demand for advanced health monitoring features.
Brand Positioning and Messaging:
Refine brand messaging and positioning based on consumer attitudes to resonate more deeply with target audiences.
Example: Dove’s “Real Beauty” campaign was refined through consumer attitude surveys, highlighting the desire for authentic and inclusive beauty representations, increasing brand loyalty and market share.
Customer Experience Enhancement:
Improve customer service and overall experience by addressing pain points and leveraging positive feedback identified in surveys.
Example: Amazon uses customer feedback to enhance its user interface and customer service protocols, leading to consistently high customer satisfaction scores and repeat business.
Best Practices for Conducting and Utilising Surveys
Survey Design
Creating effective usage and attitude surveys is foundational to obtaining meaningful and actionable consumer insights. Well-designed surveys ensure the collected data accurately reflects consumer behaviours and attitudes, providing a solid basis for strategic decision-making.
Here are key best practices for designing impactful surveys:
Define Clear Objectives:
What does this mean? Clearly outline the survey’s goals to ensure each question aligns with the desired outcomes.
Implementation: Identify specific information you need, such as understanding product usage patterns or gauging brand sentiment.
A 2023 survey by SurveyMonkey emphasised that businesses with well-defined objectives are 25% more likely to achieve actionable insights than those with vague goals.
Keep It Concise:
What does this mean? Design short and to-the-point surveys to maintain respondent engagement and reduce dropout rates.
Implementation: Limit the number of questions and ensure each is essential to the survey’s objectives.
According to Qualtrics’ 2023 report, surveys under 10 minutes in length have a higher completion rate and better data quality.
Use Clear and Neutral Language:
What does this mean? Ensure questions are easily understood and free from bias to obtain accurate responses.
Implementation: Avoid jargon, leading questions, and ambiguous terms. Test the survey with a small group before full deployment.
Gartner’s 2023 guidelines highlight neutral phrasing increases the reliability of survey responses by 15%.
Incorporate a Mix of Question Types:
What does this mean? Use a variety of question formats (e.g., multiple-choice, Likert scales, open-ended) to capture different dimensions of consumer attitudes and behaviours.
Implementation: Balance quantitative questions for statistical analysis with qualitative questions for deeper insights.
A 2023 study by Pew Research found that mixed-question surveys provide a more comprehensive understanding of consumer sentiments.
Data Accuracy
Ensuring the accuracy of survey data is crucial for making informed business decisions. Accurate data reflects true consumer behaviours and attitudes, minimising the risk of strategic missteps.
Here are best practices to enhance data accuracy:
Sampling Techniques:
Use appropriate sampling methods to ensure the survey population accurately represents the target market.
Implementation: Depending on the survey objectives and population diversity, random, stratified, or cluster sampling should be employed.
Statista’s 2023 guidelines recommend stratified sampling to achieve higher accuracy in diverse populations, resulting in 20% more reliable data.
Data Validation:
Implement checks to identify and correct errors or inconsistencies in the survey responses.
Implementation: Use automated validation rules within survey platforms to flag incomplete or contradictory answers.
SurveyGizmo’s 2023 report indicates that automated data validation can reduce data entry errors by 30%.
Anonymity and Confidentiality:
Assure respondents that their answers are anonymous and confidential to encourage honest and accurate responses.
Implementation: Communicate privacy policies and data protection measures within the survey introduction.
Harvard Business Review’s 2023 study found that guaranteed anonymity increases response honesty by 25%.
Regular Calibration and Testing:
Continuously test and calibrate survey instruments to maintain their reliability and validity over time.
Implementation: Conduct pilot surveys and use reliability analysis techniques, such as Cronbach’s Alpha, to assess consistency.
McKinsey & Company’s 2023 research emphasises regular calibration of survey tools improves data reliability by 18%.
Actionable Insights
Translating survey data into actionable insights is the final step in leveraging consumer perspectives to drive business success. Actionable insights enable organisations to implement strategies directly addressing consumer needs and preferences.
Here are the best practices for extracting and utilising these insights:
Identify Key Trends and Patterns:
Analyse survey data to uncover significant trends, patterns, and correlations that can inform strategic decisions.
Implementation: Use data visualisation tools like Tableau or Power BI to highlight key findings and facilitate easier interpretation.
Deloitte’s 2023 report showcases how identifying trends in consumer preferences led a retail client to optimise their product offerings, resulting in a 15% sales increase.
Prioritise Insights Based on Business Impact:
Focus on insights with the highest potential impact on business objectives, such as revenue growth, customer retention, or market expansion.
Implementation: Use a prioritisation framework to evaluate the potential ROI of addressing each key insight.
Forrester’s 2023 analysis recommends prioritising insights that align with core business goals, enhancing the effectiveness of strategic initiatives by 20%.
Develop Strategic Action Plans:
Create detailed action plans that outline how to address each key insight, including specific initiatives, timelines, and responsible teams.
Implementation: Use project management tools like Asana or Trello to track the implementation of action plans and ensure accountability.
A 2023 case study by Bain & Company demonstrated structured action plans based on survey insights led to a 10% improvement in customer satisfaction scores.
Monitor and Measure Outcomes:
Continuously track implemented strategies’ effectiveness to ensure they deliver the desired results.
Implementation: Establish key performance indicators (KPIs) and use analytics tools to measure progress against these metrics.
Salesforce’s 2023 State of Marketing Report highlights that companies that monitor outcomes regularly achieve a 30% higher success rate in their marketing campaigns.
Foster a Culture of Data-Driven Decision Making:
Encourage all levels of the organisation to utilise survey data in their decision-making processes, promoting a culture that values empirical evidence over intuition.
Implementation: Provide training and resources to employees on how to interpret and apply survey data effectively.
IBM’s 2023 internal survey revealed that organisations fostering a data-driven culture see a 20% increase in innovation and efficiency.
To illustrate how actionable insights can transform market strategies, consider the following example:
Case Study: Starbucks’ Personalised Loyalty Program
Objective: Enhance customer engagement and increase sales through a more personalised loyalty program.
Survey Findings:
Usage Data: Customers frequently purchase the same beverages and visit during specific times of the day.
Attitude Data: High preference for personalised rewards and offers tailored to individual preferences.
Action Plan:
Personalisation: Implement personalised rewards based on individual purchase history and preferences.
Timing: Introduce time-specific promotions to encourage visits during off-peak hours.
Outcome:
Result: According to the 2023 Starbucks Investor Report, the revamped loyalty program led to a 15% increase in active membership and a 10% boost in average transaction value.
Final Thoughts
Understanding consumer beliefs and behaviours is paramount for brands striving to maintain a competitive edge. Usage and attitude surveys play a pivotal role in capturing the nuanced perspectives of consumers across global markets. By leveraging these surveys, organisations can gain deep insights into how diverse customers interact with their products and services, as well as their perceptions and preferences.
Key Insights:
Comprehensive Consumer Understanding: Usage and attitude surveys provide a dual perspective on consumer behaviour and sentiments, enabling brands to make informed decisions that resonate with their target audience.
Global Diversity: Consumer preferences vary significantly across different regions. Tailoring market strategies to accommodate these diverse insights is crucial for global success.
Data-Driven Strategies: Integrating survey data into market strategies fosters personalisation, enhances product development, and improves marketing effectiveness, ultimately driving higher ROI and customer loyalty.
Best Practices: Effective survey design, ensuring data accuracy, and translating insights into actionable strategies are essential for maximising the value derived from consumer data.
Too young for MTV Unplugged and too old for Snapchat, Xennials find themselves in a unique generational sweet spot. Born between 1977 and 1985, this micro-generation bridges the gap between Gen X’s analogue childhood and Millennials’ digital-first upbringing. They’re old enough to remember life without the internet yet young enough to have embraced social media, smartphones, and streaming services.
Often overlooked, Xennials carry significant cultural and economic influence, blending Gen X’s scepticism with Millennials’ optimism. Understanding Xennials is crucial for global brands crafting nuanced, cross-generational strategies. Brands and market researchers must prioritise them, especially across key Western and Asian markets.
Definition and Origin of Xennials
The term ‘Xennials’ refers to those born between 1977 and 1985. Sitting between Generation X and Millennials, this micro-generation was shaped by societal and technological shifts, having grown up in a world transitioning from analogue to digital. Xennials experienced life before the internet, yet they were among the first to adopt it. This unique combination gives them a distinctive perspective—blending traditional values with modern technological comfort.
Unlike Gen X, often characterised by scepticism and individualism, Xennials tend to have a more optimistic, adaptive outlook, closer to Millennials. However, they’re less digitally dependent than Millennials, maintaining a balance between tech-savviness and pragmatic realism.
Key Characteristics of Xennials
Xennials are known for several traits that make them a standout consumer group:
Adaptability: Xennials are highly adaptable, seamlessly transitioning from landlines and paper maps to smartphones and GPS. This adaptability makes them early adopters of new technologies without the digital dependency seen in younger generations.
Technological Savviness: Growing up alongside the rise of the internet, Xennials are fluent in digital technologies but maintain caution, balancing their online and offline lives.
Value-Driven Purchases: Xennials prioritise quality, longevity, and sustainability, focusing more on value-driven purchase decisions than brand loyalty.
Global Insights on Xennials
While Xennials share core characteristics globally, cultural and economic contexts influence their behaviours:
United States: Xennials in the US tend to be financially cautious, particularly after the 2008 crisis, with spending directed toward practical purchases like home improvement and wellness.
United Kingdom: Similar to the US, UK Xennials value sustainability and ethical business practices, balancing digital literacy with technological scepticism.
China: Chinese Xennials are highly tech-savvy but remain deeply rooted in family values, often investing in property and education.
India: In India, Xennials are a bridge generation, embracing mobile technology and e-commerce while maintaining strong ties to community and family.
Singapore: Xennials in Singapore are highly urbanised and focus on quality over novelty, especially in areas like education and technology.
The Xennial Consumer
Xennials blend digital savviness with caution. Learn how behavioural economics, personalisation, and ethical marketing can help brands connect with this generation.
Xennials’ buying behaviours are shaped by their pre-internet childhood and fully digital adulthood. This unique positioning influences their preference for quality over quantity, brand loyalty with caution, and a focus on experiences over possessions.
Quality Over Quantity: Xennials prefer products with durability and long-term benefits, choosing to invest in items that last over fleeting trends.
Brand Loyalty with Caution: While they exhibit brand loyalty, Xennials are discerning consumers. They prioritise brands that align with their sustainability and ethical sourcing values, making loyalty contingent on transparency and authenticity.
Experiences Over Possessions: Like Millennials, Xennials prioritise experiences—travel, wellness, and personal development—over material goods, but with a more practical, less impulsive approach.
Spending Power
These cautious yet value-driven behaviours translate directly into their spending power across key industries. In their late 30s and early-to-mid 40s, Xennials hold significant economic power, balancing family obligations with career advancement. Xennials are notable for spending on home renovations and family services, reflecting their dual roles as professionals and parents.
Global Insights
Brands that successfully engage Xennials understand the importance of aligning with their values of practicality, quality, and social responsibility:
United States: Apple’s long-lasting products and seamless ecosystem resonate with Xennials, who appreciate functionality and durability.
United Kingdom: Waitrose taps into Xennials’ preference for ethically sourced, high-quality products that support sustainability and reduce plastic.
Japan: Muji’s minimalist, functional, and sustainable goods appeal to Xennials, who value durability and ethical consumption.
Indonesia: Tokopedia has successfully targeted Indonesian Xennials, focusing on reliability, trust, and seamless online shopping experiences.
The Role of Technology in Xennial Lives
Technology Adoption
Xennials approach technology with caution and balance. Unlike Gen X, who were slower to adopt new technologies, and Millennials, who embraced it without hesitation, Xennials strike a middle ground. Their comfort with both analogue and digital worlds makes them adept at using modern tools, but they remain pragmatic about integrating technology into their lives.
Impact of Social Media and E-Commerce
Xennials use social media and e-commerce strategically rather than impulsively. They use platforms like Facebook and LinkedIn to network and stay informed while avoiding viral challenges and performative content. When it comes to online shopping, Xennials prefer trusted platforms that prioritise transparency and authenticity.
Singapore: Platforms like Lazada and Qoo10 cater to Xennials’ desire for affordable, high-quality products.
Vietnam: Social commerce is growing in Vietnam, and Xennials prefer established brands like Tiki, emphasising transparency and reliability.
Real-Life Examples
Tata CliQ (India): This e-commerce platform appeals to Xennials with a focus on premium, branded products, clear product descriptions, and transparency.
Decathlon (Global): Decathlon combines affordability with eco-friendly initiatives, appealing to Xennials’ practicality and commitment to sustainability.
FairPrice (Singapore): FairPrice’s mix of digital and offline experiences, sustainability focus, and personalised recommendations resonate with tech-savvy Xennials.
Brand Strategies for Reaching Xennials
Personalisation and Value-Driven Marketing
To effectively engage Xennials, brands must go beyond traditional marketing approaches and focus on personalised, value-driven strategies. Xennials gravitate towards brands offering more than just a product—authenticity, sustainability, and quality are key. This group is particularly discerning, preferring brands that align with their ethical values and offer practical benefits.
AI-Powered Personalisation: Using AI-driven predictive models, brands can create hyper-targeted campaigns based on Xennial preferences. This data-driven approach allows for tailored recommendations and individualised experiences.
Sustainability and Ethics: Xennials gravitate toward brands emphasising sustainability, fair trade, and corporate transparency. Highlighting long-term value and social impact can build trust.
Behavioural economics provides deeper insights into the psychological drivers behind Xennials’ purchasing decisions, offering brands a more nuanced way to influence their choices. By understanding principles like loss aversion, social proof, and present bias, brands can craft strategies that resonate with Xennials’ values and decision-making processes.
Loss Aversion: Xennials are risk-averse, having experienced economic uncertainties. Brands can frame their products as long-term investments to help Xennials avoid potential future losses.
Social Proof: Authentic reviews and community endorsements build the trust Xennials seek before committing to a purchase. Leveraging this can strengthen brand relationships.
Present Bias: Xennials value long-term quality but are also motivated by immediate rewards. Limited-time offers and personalised discounts can appeal to this bias while aligning with their demand for quality.
Anchoring Effect: Brands can present premium product versions to set higher reference points, making their standard offerings seem like better-value alternatives.
Ethical Framing: Xennials are drawn to brands that highlight ethical practices. Framing product choices around social or environmental benefits appeals to their preference for ethical consumption.
By integrating these behavioural principles, brands can create campaigns that resonate deeply with Xennials’ motivations, driving trust and loyalty.
Marketing to Xennials Across Regions
Global brands must adapt to regional contexts while maintaining consistency. Here are some examples:
Thailand: Unilever has built strong connections with Xennials through sustainability-focused campaigns in personal care products.
The Philippines: Globe Telecom targets Xennials through its digital services and messaging around environmental conservation and digital education.
United Kingdom: John Lewis & Partners focuses on ethical sourcing and sustainability, resonating with Xennials who value quality and longevity.
Actionable Insights for Senior Leaders
Leverage Data for Personalisation: Use AI and CRM systems to deliver personalised experiences.
Emphasise Long-Term Value: Focus on quality and sustainability to build trust and loyalty.
Maintain Global Consistency with Local Sensitivity: Adapt strategies to different cultural contexts while staying true to core brand values.
Final Thoughts
Xennials represent a unique micro-generation that bridges the gap between Gen X and Millennials. Straddling both the analogue and digital worlds, Xennials showcase adaptability, technological savvy, and value-driven purchasing habits. They prioritise quality, sustainability, and authenticity in their consumer choices and have become influential across various markets. As they continue to age into leadership and decision-making roles, Xennials hold significant spending power, making them a critical demographic for brands to understand and engage.
Actionable Recommendations to Engage Xennials
For brand managers and CMOs, integrating Xennial-specific strategies into global marketing plans can create a lasting impact.
Here are clear steps to consider:
Focus on Personalisation: Use data-driven insights to deliver highly personalised experiences that resonate with Xennials’ preferences and values.
Emphasise Longevity and Quality: Ensure your products offer lasting value and practical benefits. Xennials are more likely to invest in quality over fleeting trends.
Align with Values of Sustainability and Ethics: Communicate your brand’s sustainability initiatives and ethical practices. This generation is drawn to brands that reflect their desire for positive social and environmental impact.
Balance Digital and Offline Channels: While Xennials are fluent in digital technology, they still appreciate offline touchpoints and real-world experiences. Offer a balanced approach catering to their preferences online and offline channels.
Adapt Regionally: While maintaining core brand consistency, tailor your marketing strategies to suit the local context in different regions, especially in Asia and Western markets, to fully engage Xennials.
As Xennials age into their 40s and beyond, their influence on consumer behavior will grow. With their increasing presence in leadership roles, Xennials are poised to drive trends in sustainability, technology adoption, and value-driven purchasing. Brands that successfully engage this generation today will position themselves to benefit from their long-term loyalty and advocacy, shaping consumer markets for years to come.
Behind every successful automotive launch is a mountain of data and research, often collected from car clinics—spaces where raw consumer opinions shape cutting-edge designs. But the clinics that generate real value aren’t just about feedback. They’re strategic investments that provide the kind of insights capable of shaping a brand’s future. It’s not just about asking questions; it’s about finding the right ones. Thoughtfully designed car clinics help automotive leaders understand what truly matters to customers, turning concepts into products with confidence.
The power of a well-executed clinic lies in precision—getting the right participants, asking the right questions, and ensuring the data collected can be translated into decisions that impact everything from engineering to marketing. It’s a delicate balance, but when done right, car clinics can provide not just insights but a roadmap to maximise returns and drive innovation in the ever-evolving automotive world.
Understanding the Value of Car Clinics in the Automotive Market
Car clinics are the driving force behind automotive market research. They offer a controlled environment where consumers can interact with vehicles—sometimes prototypes, sometimes current models—and provide in-depth feedback on everything from design to performance.
This isn’t just another focus group. Car clinics allow automakers to get hands-on insights that can’t be gathered through surveys or online panels. These sessions are where consumer preferences meet the realities of engineering, and the feedback gathered can make or break a product’s success.
But with the substantial investment required to run a car clinic—both in terms of cost and time—the need for measurable ROI is critical. Automakers can’t afford for these insights to collect dust. The data must directly inform decisions on design tweaks, marketing strategies, and broader business initiatives. A well-run clinic offers more than just opinions; it provides actionable intelligence that drives efficiency and innovation.
Ensuring that every piece of feedback leads to tangible business outcomes cannot be overstated. In an industry where a misstep can cost millions, car clinics are the strategic tool that bridges the gap between consumer desires and a profitable product launch.
Setting Clear Objectives for Your Car Clinic
Setting specific, actionable objectives is the foundation of any successful car clinic. Without a clear focus, the insights gathered can be scattered and ineffective. In an industry where every decision counts, car clinics must begin with a clear understanding of what’s being measured and why.
Whether testing a new feature, gauging brand perception, or benchmarking against competitors, setting clear goals ensures that every minute spent with participants is purposeful and leads to meaningful outcomes.
Product testing, for example, allows manufacturers to fine-tune designs based on actual consumer interaction. On the other hand, clinics can also focus on how the brand is perceived—are customers associating the right values with the vehicle, or is there a gap in communication? Competitor benchmarking offers a chance to measure your product against the competition while understanding customer preferences can highlight what drives loyalty or dissatisfaction.
These objectives aren’t just academic. Clear objectives tied to measurable business outcomes ensure a solid ROI. A car clinic designed with clear business questions in mind—whether improving fuel efficiency or boosting luxury appeal—ensures that the data collected can be transformed into strategic actions, driving better results and maximising the return on investment.
Selecting the Right Participants for Actionable Insights
Choosing the right participants is where a car clinic’s value is truly made or lost. It’s not just about filling seats; it’s about filling them with the people whose opinions will lead to actionable insights. To achieve this, a thoughtful blend of demographics and psychographics is essential.
Demographics like age, income, and location provide a broad view of your market. Meanwhile, psychographics—factors like lifestyle, values, and personal preferences—dig deeper, helping you select participants who reflect the emotional and psychological drivers behind purchasing decisions.
Sample size is just as important. Too few participants, and the data lacks depth or reliability; too many, and you risk diluting insights or overspending without added value. The sweet spot lies in gathering enough participants to provide statistically significant results while keeping costs in check.
ROI depends on participant selection. The more aligned the sample is with your target audience, the more valuable the feedback. Selecting participants who accurately represent the market ensures that the insights gathered aren’t just noise but can be transformed into business strategies that resonate with real customers, making every dollar invested in the clinic worthwhile.
Designing an Engaging and Effective Car Clinic
Creating an environment where participants feel comfortable is crucial in getting the honest, valuable feedback that car clinics depend on. From the moment participants walk in, the clinic setup should encourage open communication. Comfortable seating, accessible layouts, and a welcoming atmosphere help put people at ease, while clear instructions ensure they understand how their feedback will be used. The more at ease participants are, the more likely they are to share candid insights that can drive real value.
Sample Research Questions for Car Clinics
Category
Sample Research Questions
Design & Aesthetics
– What is your first impression of the vehicle’s exterior design?
– How does the interior layout make you feel? Are there any design elements you find particularly appealing or off-putting?
– Does the vehicle’s color palette meet your preferences?
Comfort & Ergonomics
– How comfortable are the seats after sitting for 15 minutes?
– Are the controls and dashboard easy to reach and operate?
– Do you feel that the interior space meets your needs for personal comfort?
Technology & Features
– How intuitive do you find the infotainment system?
– Does the vehicle’s tech (e.g., AR/VR integration, touchscreen) meet your expectations for innovation?
– How would you rate the ease of use for features such as navigation or voice control?
Performance Perception
– Based on your experience today, how do you think the vehicle would perform on the road in terms of speed, handling, and acceleration?
– How responsive did you find the steering and braking mechanisms?
– Do you feel the vehicle’s engine and transmission align with your driving style and expectations?
Safety Features
– Are there any safety features (e.g., airbags, lane assist) that particularly stood out to you?
– Do you feel confident in the vehicle’s safety technology compared to other cars you’ve driven?
Brand Perception
– How does this vehicle compare to your perception of the brand’s overall image?
– Does this model align with what you expect from this manufacturer in terms of quality and innovation?
Competitor Benchmarking
– How does this vehicle compare to others you have driven in the same category or price range?
– Are there any features in competitor models that you wish were included in this vehicle?
Purchase Intent & Value
– Based on today’s session, how likely would you be to consider purchasing this vehicle?
– Do you feel the vehicle offers good value for its price point?
– What improvements would make you more inclined to purchase this car?
Incorporating technology such as VR, AR, and interactive touchpoints can elevate the experience even further. Virtual reality can allow participants to “drive” a concept car without leaving the room, while augmented reality can overlay features and options for better visualisation. These tools engage participants and provide richer data by enabling more immersive, detailed evaluations.
Data collection forms the backbone of every car clinic. Tools like digital surveys, video analysis, and real-time feedback systems ensure that every piece of feedback is captured in detail. Efficient clinic design maximises ROI by streamlining processes, integrating smart tech, and reducing costs while improving data quality. In turn, this ensures that the insights gathered lead directly to more informed business decisions.
Interpreting Data for Maximum ROI
Collecting data at a car clinic is just the start—its value lies in how it’s interpreted. Raw feedback—whether it’s opinions on design, usability, or performance—needs to be translated into actionable insights that drive product development, marketing strategies, and broader business decisions. The process begins with organising the feedback into themes and patterns. Understanding where preferences overlap or diverge helps brands prioritise features, identify improvements, and position their vehicles strategically.
For example, suppose feedback suggests that participants appreciate a vehicle’s interior design but find the tech interface confusing. In that case, this signals a clear directive for product development to refine the user experience. Likewise, suppose brand perception feedback shows a disconnect between the image a car manufacturer aims to project and how customers see it. In that case, marketing teams can adjust messaging to bridge that gap.
Advanced analytics and AI play an increasingly vital role in interpreting data at scale. These tools can process vast amounts of feedback quickly, identifying trends, correlations, and even predictive insights that might be missed by human analysis alone. AI can help segment participants into subgroups, allowing for a deeper understanding of how different demographic or psychographic profiles respond to the same vehicle. This level of analysis helps pinpoint what consumers want and why they want it, which is essential for driving strategy.
The ROI impact of effective data interpretation is significant. Insights derived from car clinics can inform better decision-making across the board, from streamlining production processes to developing targeted marketing campaigns that resonate with the intended audience. Ultimately, when data is properly analyzed and acted upon, it leads to more efficient use of resources, improved products, and stronger market positioning—delivering measurable returns on the initial investment in the clinic.
Post-Clinic Analysis and Reporting
The work of a car clinic doesn’t end when the last participant walks out the door. One of the most critical phases of the process is post-clinic analysis and reporting. This is where all the gathered data must be organised, synthesised, and transformed into a coherent narrative that decision-makers can act on. Synthesis starts by organising raw feedback into themes—positive insights, pain points, suggested improvements, and competitor comparisons. Whether it’s about design features or satisfaction, these findings should be distilled into a clear, actionable report.
Once the data is structured, the next step is translating these insights into actionable recommendations. This is where the true value of the clinic shines. A well-executed report doesn’t just present data; it provides a roadmap for stakeholders to follow. For instance, if participants were dissatisfied with a vehicle’s infotainment system, the recommendation could involve refining the user interface or integrating new technology to meet consumer expectations. The report must connect the dots between consumer feedback and real business opportunities, guiding product development, marketing, and strategic adjustments.
Measuring ROI is essential to justify the significant investment in car clinics. Clear metrics must be established to gauge the clinic’s impact on business outcomes. These can include direct results like increased sales of the tested model, product improvements made in response to feedback, or enhanced customer satisfaction as reflected in follow-up surveys or brand loyalty metrics. Additionally, softer metrics like improved brand perception or more effective marketing campaigns can also be tied to insights from the clinic. By linking findings to tangible business improvements, the post-clinic report helps ensure that every dollar spent on the clinic delivers measurable returns.
Common Pitfalls to Avoid in Car Clinics
Even the most meticulously planned car clinic can stumble if common pitfalls aren’t carefully avoided. Car clinics represent a significant investment of time and resources, so ensuring these errors are avoided is crucial to maximising the value of the insights gathered and achieving a strong ROI. Here are the most frequent issues that can derail the success of a car clinic:
Participant Selection Errors:
One of the most common mistakes in car clinics is selecting the wrong participants. If the sample isn’t representative of the actual target market, the feedback you receive could lead to misguided decisions. For example, choosing participants who are too similar in demographics or preferences can result in skewed feedback that doesn’t reflect the diversity of the broader consumer base. Alternatively, selecting participants who have no genuine interest or potential to purchase the vehicle being tested can lead to irrelevant or superficial insights. Ensuring a balanced and accurate participant profile, including a mix of age, income levels, and psychographics, is essential to getting actionable data that truly reflects market demand.
Data Misinterpretation:
Another major pitfall is misreading the data collected. It’s easy to latch onto certain opinions or trends and over-generalise them, but this can be dangerous for decision-making. Data needs to be analyzed in context and cross-referenced against other findings to avoid making changes based on a vocal minority or outlier feedback. Moreover, nuances in consumer feedback should be interpreted carefully—what seems like a minor comment about design might reflect a deeper dissatisfaction with the product that needs attention. Proper analysis tools and skilled data interpretation can help mitigate this risk.
ROI Drain:
A significant risk for car clinics is the drain on ROI due to misaligned objectives or inefficient processes. If the clinic’s goals aren’t clearly defined from the start, the data gathered may not align with business needs, leading to wasted time and resources. Focusing on trivial aspects rather than critical factors like performance, safety, or brand perception can lead to insights that fail to translate into business value.
Additionally, an inefficient clinic setup—whether in terms of time management, technology use, or data collection methods—can lead to increased costs without delivering proportionate benefits. Clear objectives and streamlined processes safeguard ROI, ensuring the clinic delivers value.
Ensuring Market Research Success with Car Clinics
When designed and executed thoughtfully, car clinics are a powerful tool in the automotive industry’s market research arsenal. Throughout this blog, we’ve explored how critical it is to set clear objectives, select the right participants, and design an engaging and effective clinic to ensure the highest quality of data. We also delved into the importance of interpreting that data carefully, utilising advanced analytics to extract actionable insights, and avoiding common pitfalls like participant selection errors or data misinterpretation. Each factor is pivotal in ensuring your car clinic delivers strong ROI, transforming raw feedback into strategic actions that drive tangible business outcomes.
A well-run car clinic provides far more than just opinions; it offers a direct line to what consumers value most in a vehicle, guiding product development, marketing, and overall business strategy. By focusing on precise, actionable feedback and tying it to business goals, car clinics can become the foundation for successful market research, leading to measurable gains in sales, customer satisfaction, and brand loyalty.
For any automotive brand looking to stay competitive in the fast-moving auto market, investing in a carefully designed and executed car clinic is not just a good idea—it’s essential. Contact us, we would love to help.
Understanding consumer preferences is like solving a complex puzzle. It requires advanced tools to dive deeper into what drives consumer decisions, going beyond basic data analysis. Two powerful methods—MaxDiff and TURF analysis—enable brands to comprehensively understand their audience, allowing them to tailor products and messages with precision.
MaxDiff analysis helps brands prioritise a product or service’s most and least important attributes, enabling more effective resource allocation. TURF analysis, on the other hand, determines the optimal combination of product features or marketing messages that will appeal to the broadest possible audience. These tools complement each other, providing granular insights to help brands refine their strategies for maximum impact.
What is MaxDiff Analysis and How Does it Work?
MaxDiff, or Maximum Difference Scaling, is a survey-based market research technique designed to identify the attributes of a product or service most and least important to consumers.
Unlike traditional rating scales, where respondents might rate several items as equally important, MaxDiff forces respondents to make trade-offs, providing a clearer hierarchy of preferences.
MaxDiff surveys typically involve multiple rounds, where respondents are asked to choose the most and least important attributes from a set of options. This process produces a ranked list of features based on their relative importance to the target audience.
For example, an apparel company might use MaxDiff to determine whether fabric quality, sustainability, or price is more important to consumers. The data gathered allows the company to focus on the attributes driving the most value.
What business objectives does MaxDiff address?
Identifying key product features: MaxDiff reveals which features matter most, enabling brands to focus on what will have the highest impact on consumer satisfaction.
Prioritising resources: By understanding which features are most valued, MaxDiff helps brands allocate resources more efficiently.
Guiding product design: MaxDiff assists in determining which features should be prioritised in product development, ensuring alignment with consumer preferences.
Advantages and Disadvantages of MaxDiff Analysis
Advantages of MaxDiff Analysis:
Accurate prioritisation: MaxDiff forces respondents to make trade-offs between options, leading to more accurate identification of the most and least important attributes. This prevents the common issue of respondents rating many items as equally important, which often occurs with traditional rating scales.
Clear hierarchy of preferences: MaxDiff provides a clear, ranked list of attributes based on consumer preferences. This allows brands to see which features are most valued and to focus their efforts on the areas that will have the most significant impact on consumer satisfaction and decision-making.
Resource optimisation: By identifying the most critical features, MaxDiff enables brands to allocate their resources more efficiently. Brands can concentrate on the attributes that matter most to their target audience, ensuring better ROI on product development and marketing efforts.
Flexibility across industries: MaxDiff is versatile and can be applied across a wide range of industries, from consumer goods to services. It helps brands of all types and sizes understand what drives consumer decisions, making it a widely used tool in market research.
Disadvantages of MaxDiff Analysis:
Complex survey design: The structure of MaxDiff surveys can be complex and time-consuming to design. Ensuring respondents are presented with balanced and meaningful trade-offs requires careful planning, which can increase the complexity of the survey development process.
Respondent fatigue: Since MaxDiff surveys require respondents to make multiple trade-offs across several rounds, they can be mentally demanding. This can lead to respondent fatigue, especially if the survey is lengthy or if the trade-offs become repetitive, potentially impacting the quality of the data collected.
Limited attribute evaluation: MaxDiff works best with a manageable number of attributes. When dealing with a large number of attributes, it can be challenging to structure the survey without overwhelming respondents, which may result in incomplete or inaccurate data.
Difficulty in measuring emotional or complex preferences: MaxDiff is highly effective for straightforward, attribute-based comparisons but may fall short when it comes to measuring more complex, emotional, or abstract preferences. It primarily focuses on tangible attributes, which may not capture the full spectrum of consumer motivations.
What is TURF Analysis and How Does it Work?
TURF, or Total Unduplicated Reach and Frequency, is a market research technique used to determine the optimal combination of product features or marketing messages that will maximise reach within a target audience.
TURF analysis builds on the data from multi-select survey questions, where respondents indicate their interest in multiple product variations or messages.
For example, a beverage company might ask consumers to select all the flavours they want to purchase. TURF analysis then calculates which combination of flavours appeals to the largest segment without significant overlap, helping the brand maximise its reach without offering redundant options.
What business objectives does TURF address?
Optimising product lineup: TURF helps identify the best combination of products to appeal to the broadest audience.
Maximising marketing impact: TURF analysis can determine the optimal mix of messages that will resonate with the largest group, ensuring effective and efficient marketing efforts.
Focusing operations on high-value services: TURF analysis can pinpoint which subset of services provides the highest return, allowing brands to concentrate on offerings that deliver the most value.
Advantages and Disadvantages of TURF Analysis
Advantages of Turf Analysis:
Maximises Audience Reach: TURF analysis helps identify the optimal combination of product features or marketing messages to reach the widest possible audience without redundancy, ensuring that brands make the most out of their offerings.
Efficient Resource Allocation: By revealing which combinations are most effective, TURF analysis helps brands avoid investing in redundant or less impactful features, allowing for more strategic use of resources.
Improves Product and Marketing Strategy: TURF provides insights into the best mix of products or messages, which can guide decision-making for both product development and marketing campaigns, enhancing overall effectiveness.
Customisable for Various Markets: TURF analysis can be tailored to different regional preferences, allowing brands to optimise their product offerings and marketing strategies for diverse consumer bases.
Disadvantages of TURF Analysis:
Complexity of Data Collection: TURF analysis requires detailed, multi-select survey data, which can be time-consuming and complex to collect. The quality of the analysis depends heavily on the quality and comprehensiveness of the data gathered.
Limited Focus on Individual Preferences: While TURF focuses on maximising overall reach, it might overlook niche segments or individual preferences that could be important for specific subgroups within the target market.
Resource-Intensive Analysis: Implementing TURF analysis can be resource-intensive, requiring sophisticated software and expertise to process and interpret the data accurately, which may not be feasible for smaller businesses.
Potential for Over-Simplification: TURF analysis aims to find the most efficient combination of features, which might result in oversimplification or exclusion of features that could be significant for long-term brand differentiation or innovation.
MaxDiff vs. TURF: Complementary Tools for Market Success
MaxDiff and TURF analysis provide a holistic view of consumer preferences. While MaxDiff focuses on the importance of individual attributes, TURF identifies the optimal combinations to maximise market impact.
Aspect
MaxDiff Analysis
TURF Analysis
Focus
Identifies the most and least important individual attributes.
Determines the optimal combination of product features or messages to maximise reach.
Usage
Helps prioritise specific features, messages, or benefits.
Identifies which mix of offerings will appeal to the broadest audience.
Goal
Optimises resources by focusing on what matters most to the target audience.
Maximises impact by ensuring a brand’s offerings reach the largest segment without redundancy.
Example: A global skincare brand could use MaxDiff to determine whether SPF protection and hydration are the most valued attributes in its product line. Then, the brand might apply TURF analysis to find the best product combination, including these attributes to ensure their product range appeals to a broad audience without unnecessary overlap.
Global Perspective: MaxDiff and TURF in Diverse Markets
Western Markets: Staying Competitive with MaxDiff and TURF
In highly competitive markets like the US and the UK, where consumer choices are vast, brands often leverage MaxDiff and TURF analyses to stay ahead. In consumer electronics, automotive, and FMCG industries, these tools are critical for understanding shifting consumer priorities and making data-driven decisions to differentiate brands.
MaxDiff in Western Markets: Brands in the US and UK often use MaxDiff to focus on innovation and technological advancements. For example, consumer electronics companies might prioritise features like AI integration, battery efficiency, or eco-friendly designs. By understanding which features consumers value the most, brands can ensure their product development aligns with market demand.
TURF in Western Markets: In crowded sectors like FMCG, where multiple products often compete for shelf space, TURF analysis helps brands optimise product variety to reach the widest audience. By identifying the right mix of flavours, packaging sizes, or product variants, brands can maximise their reach without overwhelming consumers with too many choices.
Asian Markets: Rapid Evolution and Strategic Adaptation
In rapidly evolving markets like China, Singapore, and Indonesia, MaxDiff and TURF analyses are becoming increasingly important. These regions are characterised by dynamic consumer behaviour and shifting preferences driven by traditional values and modern influences.
MaxDiff analysis in Asian Markets: In countries like China, where status and convenience play key roles in consumer decision-making, MaxDiff analysis is often used to prioritise features reflecting these values. For instance, luxury brands may focus on attributes such as exclusivity, brand heritage, and premium materials, while tech companies might emphasise convenience features like mobile payment integration and fast delivery.
TURF analysis in Asian Markets: With diverse and segmented populations, TURF analysis is essential for optimising product offerings in markets like Singapore and Indonesia. Brands need to find the right balance between modern and traditional preferences. For example, in Indonesia, where regional diversity is significant, TURF analysis can help brands decide which combinations of products (e.g., local flavours vs. global trends) will resonate across different consumer segments.
Key Takeaways: Leveraging MaxDiff and TURF for Data-Driven Decision-Making
MaxDiff and TURF analysis are indispensable tools for senior market research and branding leaders. By integrating these techniques into their strategic processes, brands can gain deeper insights into consumer preferences and make more informed decisions about product development, pricing, and marketing. MaxDiff clarifies which attributes resonate most with consumers, while TURF helps optimise product combinations or messaging to reach the widest possible audience.
Prioritise Critical Features: Focus on the most valued product attributes aligning with consumer priorities, ensuring resources are directed toward what matters most.
Maximise Reach: Use TURF analysis to create a product lineup or messaging strategy to cover the broadest market segment, enhancing both market share and consumer satisfaction.
Optimise Product Offerings: Reduce overlap between offerings, ensuring each product in the lineup provides unique value while collectively maximising appeal.
Strategic Tips for Implementing MaxDiff and TURF
Align tools with business objectives: Clearly define your business goals. Use MaxDiff to prioritise features or messages and TURF to optimise combinations for broad market appeal.
Tailor research to regional markets: Adapt MaxDiff and TURF analyses to local market dynamics. Consider cultural differences, such as the emphasis on functionality in China or innovation in the US.
Invest in data integration: Ensure your data collection processes are robust and comprehensive. Combine MaxDiff and TURF analyses with other consumer insights tools to build a 360-degree view of your audience. This approach allows for more accurate predictions and refined strategies.
Test and iterate: Use the insights from MaxDiff and TURF to inform initial product or marketing decisions, but don’t stop there. Continuously test and refine your strategies based on real-world performance. This iterative approach will help you stay responsive to changing consumer behaviours and market dynamics.
Future Outlook: The Evolving Role of Market Research
As consumer behaviour continues to evolve rapidly, driven by technological advancements and shifting cultural values, the role of advanced research tools like MaxDiff and TURF will only grow in importance. Market leaders will increasingly rely on these tools to navigate complex consumer landscapes, stay ahead of trends, and tailor their offerings to meet the nuanced needs of their target markets.
With the rise of AI and machine learning, MaxDiff and TURF will become even more powerful as they integrate with predictive analytics. This will enable more precise targeting and optimisation of products and marketing messages. Brands that invest in advanced market research tools today will be well-positioned to adapt to the ever-changing consumer environment and maintain a competitive edge.
Understanding and anticipating consumer preferences is more critical than ever for global brands. By adopting advanced research techniques like MaxDiff and TURF analysis, brands can position themselves to meet the complex needs of modern consumers, ensuring both immediate success and long-term growth.
Now is the time to embrace advanced analysis tools as essential components of your market research toolkit. These tools will empower your brand to make data-driven decisions and remain relevant, resonant, and ahead of the curve in modern, global markets.
Urban mobility is an increasingly lucrative market, attracting significant investment from major brands such as Audi, Baidu, and Amazon. However, the key to unlocking its full potential extends beyond technological advancements.
While innovations like autonomous vehicles and ride-sharing platforms are crucial, they must be paired with a deep understanding of cultural nuances and the specific needs of each city.
Recent advancements in urban mobility highlight the need for tailored solutions. A recent study by McKinsey & Company emphasizes the importance of considering local cultural factors, while the International Transport Forum’s report stresses the necessity of city-specific approaches.
Our comprehensive research with commuters in various global cities further supports these findings, underscoring that technological leadership must go hand-in-hand with cultural understanding.
The Research: Methodology and Findings
Research Overview
Kadence conducted an extensive study involving over 5000 commuters from 13 diverse cities worldwide. The cities included in the research were:
London
Berlin
Singapore
Shanghai
Jakarta
Manila
Ho Chi Minh City
New York
Los Angeles
Hong Kong
Mumbai
Delhi
Tokyo
The objective was to capture a wide range of commuter experiences and expectations to ensure the findings were applicable across various urban contexts.
Concepts Tested
The study explored several forward-thinking urban mobility concepts to assess commuter interest and acceptance. The concepts tested included:
Air Taxis: Designed to reduce travel time and alleviate congestion by providing aerial commuting options.
Environmentally Friendly Commuting Schemes: Initiatives aimed at rewarding commuters for eco-friendly practices, such as using public transport, cycling, or walking.
Premium Car Hire: High-end, on-demand car services offering luxury and convenience for urban travel.
Shared Autonomous Vehicles: Self-driving cars that offer shared rides, reducing the number of vehicles on the road and improving traffic flow.
Smart Public Transport Systems: Enhanced public transport options featuring real-time tracking, improved connectivity, and seamless payment systems.
Micro-mobility Solutions: Personal transport options like electric scooters and bikes designed for short urban trips.
Mobility-as-a-Service (MaaS): Integrated platforms providing various transport modes, including public transit, car-sharing, and bike-sharing, through a single subscription.
The study aimed to understand commuters’ preferences, expectations, and concerns by presenting these concepts to them. The findings revealed the importance of considering technological innovation and cultural context in developing effective urban mobility solutions.
Urban Mobility by Region
USA: New York and Los Angeles
Mobility Challenges and Opportunities: Due to their size, density, and urban sprawl, New York and Los Angeles present unique mobility challenges and opportunities. New York is known for its extensive public transportation system but struggles with congestion and aging infrastructure. Los Angeles, on the other hand, is car-dependent, facing significant traffic and pollution issues.
Commuter Preferences: Commuters in these cities strongly prefer luxury and convenience. A study by Deloitte found that 58% of New Yorkers and 65% of Los Angeles residents would pay extra for premium car hire services that offer comfort and convenience. The focus in these cities is on reducing travel time and enhancing the commuting experience through high-end services.
Supporting Data:
New York: The Metropolitan Transportation Authority (MTA) reports that daily subway ridership is around 2.4 million, highlighting the city’s reliance on public transit despite its challenges.
Los Angeles: According to the Los Angeles Department of Transportation, the average commuter spends 119 hours per year in traffic, underlining the need for efficient and luxurious alternatives.
UK: London
Unique Infrastructure: London offers a unique blend of historical and modern infrastructure. Its extensive public transportation network includes the Underground, buses, and a growing cycling infrastructure. The city’s commitment to sustainability is evident in its policies promoting green commuting options.
Focus on Sustainability: A report by Transport for London indicates that 36% of Londoners use public transport as their primary mode of travel, and 23% use active modes like walking and cycling. London’s Ultra Low Emission Zone (ULEZ) and congestion charge are key initiatives to reduce pollution and encourage sustainable transport.
Supporting Data:
Public Transport Use: TfL data shows that bicycle journeys increased by 22% from 2019 to 2022.
Sustainability Initiatives: The UK Department for Transport reports that London’s ULEZ has reduced harmful nitrogen dioxide levels by 44% in central London.
South East Asia: Singapore, Jakarta, Manila, Ho Chi Minh City
Mobility Challenges and Cultural Attitudes: South East Asia presents diverse mobility challenges and cultural attitudes. Cities like Singapore have advanced public transport systems, while Jakarta, Manila, and Ho Chi Minh City face congestion and inadequate infrastructure.
Singapore: Singapore is known for its efficient and orderly public transportation system. A 2023 study by the Singapore Land Transport Authority (LTA) found that 76% of residents use public transport daily, reflecting a cultural preference for efficiency and orderliness.
Jakarta: Jakarta’s traffic congestion is a significant issue. According to the Jakarta Transportation Agency, the average commuter spends 2 hours in traffic daily. A study by the Asian Development Bank highlights the need for practical and scalable solutions in such environments.
Manila: Manila faces challenges with overcrowded and unreliable public transport. The World Bank reports that only 20% of residents can access reliable public transit. Due to economic constraints, Commuters prefer affordable solutions.
Ho Chi Minh City: Ho Chi Minh City is rapidly urbanizing, and mobility solutions must adapt to these changes. The Vietnam Ministry of Transport report indicates a growing preference for motorbikes and a need for better public transport options.
Supporting Data:
Public Transport Use in Singapore: LTA data shows a 15% increase in public transport ridership from 2020 to 2023.
Traffic in Jakarta: The Asian Development Bank report highlights that improving public transport could reduce traffic congestion by 30%.
Manila’s Transit Issues: The World Bank suggests that investments in infrastructure could improve accessibility for 10 million residents.
Urbanization in Ho Chi Minh City: The Vietnam Ministry of Transport reports a 10% annual increase in motorbike usage, emphasizing the need for diversified transport solutions.
These findings underscore the importance of tailoring urban mobility solutions to each city’s specific cultural and infrastructural context. Brands must consider these nuances to develop effective and appealing mobility options.
Eastern vs. Western Perspectives
Premium Car Hire Preferences: The research indicates significant differences in the acceptance of premium car hire services between Eastern and Western markets. In Western cities like New York and Los Angeles, there is a higher acceptance and demand for luxury commuting options. This preference aligns with cultural values that emphasize convenience and personal status. A survey by PwC found that 62% of commuters in the United States are willing to pay a premium for enhanced comfort and convenience during their commutes.
In contrast, Eastern cities like Tokyo and Singapore favor premium car hire services more conservatively. Cultural values in these regions prioritize practicality and efficiency over luxury. According to a 2023 study by the Singapore Management University, only 25% of commuters in Singapore are interested in premium car hire services, with the majority preferring reliable and efficient public transportation options.
Cultural Influences:
Western Markets: Cultural values such as individualism and status play a significant role in commuter preferences. The desire for convenience and the ability to make a statement through one’s choice of transport are prominent. This is reflected in the higher demand for premium services.
Eastern Markets: Cultural values such as collectivism and practicality influence commuter choices. There is a stronger emphasis on community welfare and efficient resource use, which translates to a preference for public transportation and cost-effective commuting solutions.
Global Trends and Statistics
Urban Mobility Trends: Global urban mobility is evolving, with significant trends emerging worldwide. The International Transport Forum (ITF) reports a steady increase in adopting various urban mobility solutions to address congestion, sustainability, and efficiency.
Latest Statistics:
Electric Vehicles (EVs): The International Energy Agency (IEA) states that the global stock of electric cars surpassed 10 million units in 2022, with China, Europe, and the United States leading the market. This trend indicates a growing shift towards more sustainable urban mobility solutions.
Shared Mobility: According to a report by Frost & Sullivan, the global car-sharing market is expected to grow at a CAGR of 16.4% from 2021 to 2026, driven by increasing urbanization and changing consumer attitudes towards car ownership.
Public Transport Use: The World Bank highlights that cities with well-developed public transportation systems, such as Tokyo, Singapore, and New York, continue to see high ridership levels. For instance, Tokyo’s public transport system serves over 40 million passengers daily, reflecting the importance of efficient and reliable transit options.
Environmental Concerns: A recent study by the World Resources Institute underscores the importance of integrating environmentally friendly practices in urban mobility. Cities like Copenhagen and Amsterdam lead by example with extensive cycling infrastructure and policies promoting green commuting.
Technological Advancements: Autonomous vehicles and smart public transport systems are at the forefront of urban mobility innovation. A report by McKinsey & Company projects that by 2030, autonomous vehicles could account for up to 15% of all new cars sold, driven by advancements in technology and consumer demand for safer, more efficient transport options.
These statistics and trends underscore the dynamic nature of urban mobility and the critical role of cultural understanding in shaping effective solutions. Brands must navigate these cultural differences and leverage global trends to create urban mobility solutions that resonate with diverse commuter preferences.
Implications for Brands
Strategic Importance of Cultural Understanding
Nuanced Approach: Understanding cultural nuances is paramount for brands entering the urban mobility market. A one-size-fits-all strategy is unlikely to succeed due to commuters’ diverse needs and preferences across cities and regions. Brands must adopt a tailored approach, considering local cultural values, commuting behaviours, and infrastructural challenges.
Conduct Localised Research:
Invest in market research to gather insights into commuters’ specific needs and preferences in each target city. This involves understanding the local cultural context, existing transportation infrastructure and common pain points commuters face.
Example: Kadence International’s study revealed that Tokyo commuters prioritise efficiency and practicality, while New Yorkers value luxury and convenience.
Collaborate with Local Stakeholders:
Partner with local governments, transportation authorities, and community organisations to develop solutions that align with regional policies and commuter needs. This collaboration can help in navigating regulatory challenges and gaining local support.
Example: Uber worked closely with city officials in London to comply with local regulations and enhance its ride-sharing services to meet the city’s sustainability goals.
Customise Offerings:
Develop mobility solutions that cater to each market’s unique cultural and infrastructural context. This may involve offering a range of services, from premium car hire in Western cities to efficient public transport integrations in Eastern cities.
Example: Didi Chuxing in China offers various services, from ride-hailing to bike-sharing, tailored to the diverse transportation needs of Chinese commuters.
Leverage Technology:
Utilise advanced technologies like AI and big data to analyze commuter patterns and preferences. This data-driven approach enables brands to continuously adapt and refine their offerings to better serve different markets.
Example: Google Maps leverages AI to provide real-time traffic updates and optimised routes, enhancing the commuting experience for users worldwide.
Case Examples in Urban Mobility
Uber:
Location: Global
Strategy: Uber tailors its services to meet local needs. In India, UberAUTO was introduced, allowing commuters to book auto-rickshaws through its app and addressing the demand for affordable and convenient transportation. In the United States, UberBLACK caters to users seeking premium travel experiences.
Outcome: Uber has maintained a strong presence in diverse markets by adapting its offerings to local preferences.
Grab:
Location: Southeast Asia
Strategy: Grab has successfully localised its services across Southeast Asia. In Singapore, it emphasises efficiency and integrates with the city’s public transport system. In Jakarta, it offers motorbike taxis to navigate heavy traffic.
Outcome: Grab’s culturally informed approach has made it a leading mobility service provider in Southeast Asia, with a strong user base and high market penetration.
Lime:
Location: United States, Europe
Strategy: Lime provides micro-mobility solutions like e-scooters and bikes tailored to the urban landscapes of cities such as Paris, Berlin, and San Francisco. Lime has resonated well with environmentally conscious commuters by addressing the last-mile connectivity issue and promoting eco-friendly transportation.
Outcome: Lime’s focus on sustainability and convenience has led to widespread adoption in cities prioritising green transportation options.
By understanding and addressing the cultural nuances of each market, brands can develop effective urban mobility solutions that resonate with local commuters. This culturally informed approach enhances user satisfaction and fosters long-term success in the competitive urban mobility landscape.
Embracing Diversity: The Path to Urban Mobility Success
Cultural Understanding is Crucial: Urban mobility solutions must go beyond technological advancements. Brands must incorporate a deep understanding of cultural nuances to meet the unique needs and preferences of commuters in different cities. This approach is essential for developing successful and sustainable urban mobility strategies.
City-Specific, Culturally Informed Approach: The findings from Kadence’s study and supporting research highlight that a one-size-fits-all approach is ineffective. Instead, brands must adopt a tailored strategy that considers each market’s distinct cultural and infrastructural contexts. By doing so, they can create solutions that resonate with local commuters and address their specific challenges.
Brands must leverage comprehensive insights and tailored strategies to unlock the full potential of urban mobility opportunities. Kadence International is here to help you navigate this complex landscape. Our detailed research and expertise can guide you in developing culturally informed mobility solutions that truly connect with your target markets.
Commuting is a universal experience that many of us share. Whether it’s the daily drive to work, catching the bus, or riding a bike, we all have our stories and complaints about our commutes. But have you ever wondered how your commute compares to other parts of the world?
This article compares global commuting patterns and reveals new opportunities for brands. Our findings are based on Kadence International’s latest research, which surveyed over 5,000 commuters across 13 global cities.
The Study
Kadence International conducted a comprehensive study involving over 5,000 commuters from 13 diverse cities worldwide. The cities included in the research were London, Singapore, Shanghai, Jakarta, Manila, Ho Chi Minh City, New York, Los Angeles, Hong Kong, Mumbai, Delhi, Tokyo, and Berlin.
Understanding these commuting patterns is crucial for brands looking to innovate in the urban mobility space. By examining how people commute in different parts of the world, we can uncover valuable insights and opportunities for developing better, more efficient transportation solutions.
Research Methodology
Scope and Sample
To understand global commuting patterns comprehensively, Kadence conducted an extensive survey involving over 5,000 commuters from 13 major cities worldwide. These cities were carefully selected to represent diverse cultural, economic, and infrastructural contexts. The cities included in the study were:
London
Singapore
Shanghai
Jakarta
Manila
Ho Chi Minh City
New York
Los Angeles
Hong Kong
Mumbai
Delhi
Tokyo
Berlin
This broad scope allowed us to capture a wide variety of commuting experiences and preferences, ensuring that our findings are relevant and insightful for a global audience.
Data Collection
The data collection process was designed to gather detailed insights into the commuting behaviours, preferences, and challenges commuters face in each city. The methodology included:
Surveys: We conducted structured surveys with a diverse sample of commuters in each city. The surveys included questions about their daily commuting habits, preferred modes of transport, average commute times, and any specific challenges they faced.
Interviews: In addition to surveys, we conducted in-depth interviews with a subset of commuters to gain deeper qualitative insights. These interviews helped us understand the personal experiences and attitudes that drive commuting behaviours.
Observational Studies: Researchers also carried out observational studies in various transportation hubs within each city. This helped us validate survey responses and get a real-time view of commuting patterns.
Secondary Data: We supplemented our primary research with secondary data from reputable sources, such as government transportation reports, academic studies, and industry publications. This provided additional context and helped triangulate our findings.
By combining these data collection methods, we were able to build a comprehensive picture of commuting across different cities. This robust methodology ensures that our insights are accurate, reliable, and valuable for brands looking to innovate in the urban mobility space.
Commute Duration
Shortest and Longest Commutes:
Our research reveals significant differences in commute durations across the 13 global cities. According to the latest data from the INRIX Global Traffic Scorecard, the average commute times vary widely:
Los Angeles: Commuters in Los Angeles enjoy one of the shortest average commutes, clocking in at approximately 31 minutes each way. This is partly due to the extensive freeway network and the prevalence of car ownership, allowing for relatively faster travel times despite the city’s notorious traffic.
Mumbai: On the other end of the spectrum, commuters in Mumbai face the longest average commute times, with journeys taking around 49 minutes each way. The city’s dense population and heavy traffic congestion contribute to these prolonged travel times, making daily commutes particularly challenging for residents.
Variations in commute times underscore the importance of context-specific solutions in urban mobility planning. Brands aiming to innovate in this space must consider these local differences to effectively address the unique challenges and needs of commuters in each city.
Preferences for Driving and Public Transport
Driving in Los Angeles and New York:
In cities like Los Angeles and New York, driving remains the dominant mode of transport. According to the American Community Survey, a significant majority of commuters in these cities rely on their cars for daily travel:
Los Angeles: Approximately 83% of commuters use their own cars at least three times a week. The city’s car-centric culture and extensive freeway system support this high reliance on personal vehicles.
New York: While public transport is more prevalent in New York than in Los Angeles, around 45% of New Yorkers still commute by car. This preference is partly due to the convenience and flexibility that driving offers despite the city’s extensive subway network.
Jakarta’s Preference for Motorbikes:
In contrast, Jakarta sees a different commuting trend, with a strong preference for motorbikes. Recent data from the Jakarta Transportation Agency indicates that:
Motorbikes: 61% of Jakarta’s commuters regularly use motorbikes for their daily travel. This preference is driven by the city’s severe traffic congestion, where motorbikes provide a faster and more flexible way to navigate the gridlock.
Public Transport in Tokyo:
Tokyo stands out for its high usage of public transport. The latest data from the Tokyo Metropolitan Government shows that:
Trains and Subways: 65% of Tokyo’s commuters use the train system, renowned for its efficiency, punctuality, and coverage. The extensive network allows for quick and reliable travel across the city.
Car Usage: Only 13% of Tokyo residents use their own cars for commuting, significantly lower than the global average of 48%. High parking costs, traffic congestion, and excellent public transportation options influence this low car usage rate.
Commuting as “Me Time”
Many commuters worldwide view commuting time as “me time.” However, this time varies significantly across cities, reflecting local cultures, infrastructure, and personal habits. Updated research from Statista and various local surveys provide insights into these trends.
Working During Commutes:
London and Mumbai: Commuters in London and Mumbai are more likely to use their commute time for work-related activities. According to a recent Statista survey, 29% of London commuters and 34% of Mumbai commuters use this time to catch up on emails or prepare for meetings. Reliable internet connectivity on trains and buses in these cities facilitates this productivity.
Hong Kong: In contrast, as per a local transport survey, only 5% of Hong Kong commuters report working during their commute. This lower percentage may be attributed to cultural differences and the preference for separating work and personal time.
Online Shopping:
Mumbai, Singapore, and London: Online shopping during commutes is a notable trend in these cities. The Statista survey indicates that 24% of Mumbai commuters, 21% of Singapore commuters, and 15% of London commuters shop online while travelling. This behaviour is driven by the convenience of mobile shopping and the desire to maximise free time.
Jakarta: According to the latest data from the Jakarta Transportation Agency, only 5% of Jakarta commuters shop online during their commute. Commuters in Jakarta focus more on navigating through heavy traffic rather than engaging in online activities.
Internet Browsing and Social Media:
Hong Kong: According to the Hong Kong Transport Department, 68% of commuters in Hong Kong browse the internet or check social media during their commute. This high percentage reflects the city’s advanced mobile infrastructure and high smartphone penetration.
London: Transport for London reported that 41% of London commuters engage in similar activities. While still substantial, this lower figure compared to Hong Kong may be due to varying levels of internet accessibility and personal preferences.
These findings show that commuting time is valued differently across the globe. Brands can leverage these insights to tailor their services and marketing strategies, catering to commuters’ unique behaviours and preferences in each market. Understanding these patterns can lead to more effective engagement and innovative solutions that enhance the commuting experience.
Infrastructure and Technology Use
Internet and social media use during commutes varies significantly between cities, reflecting differences in infrastructure, cultural habits, and technological adoption.
Hong Kong:
Hong Kong commuters are among the most active internet and social media users during their commutes. According to the We Are Social and Hootsuite Digital Report, 68% of Hong Kong commuters browse the internet or check social media on their way to work. This high level of activity is supported by Hong Kong’s advanced mobile infrastructure, which offers widespread high-speed internet access and reliable connectivity even in transit.
Mobile Penetration: Hong Kong’s mobile penetration rate is over 92%, one of the highest in the world, which facilitates easy access to online content during commutes.
Internet Speed: The average mobile internet speed in Hong Kong is around 54 Mbps, ensuring that commuters can stream, browse, and interact without significant delays.
London:
In London, the percentage of commuters using the internet or social media during travel is lower than in Hong Kong but still significant. Transport for London (TfL) and the Digital 2023 report by We Are Social and Hootsuite indicate that 41% of London commuters engage in internet browsing or social media activities during their commutes.
Mobile Penetration: London also boasts a high mobile penetration rate, with about 88% of the population owning smartphones, facilitating access to online activities during commutes.
Internet Speed: London’s average mobile internet speed is around 44 Mbps, sufficient for browsing and social media use, although it is slightly lower than in Hong Kong.
Implications for Brands:
These differences in internet and social media usage during commutes present unique opportunities for brands. In cities like Hong Kong, where a high percentage of commuters are online, brands can leverage digital advertising, social media campaigns, and mobile-friendly content to effectively engage with commuters. In London, while the engagement is slightly lower, a substantial audience can still be reached through targeted online initiatives.
Understanding these patterns allows brands to tailor their marketing strategies to the specific behaviours and preferences of commuters in each city, enhancing engagement and creating more impactful campaigns.
Emerging Trends
The commuting landscape has evolved significantly since the original study, driven by factors such as the COVID-19 pandemic and the rise of remote work. Recent studies and reports provide updated insights into these changes and highlight new trends in global commuting behaviours.
Impact of Remote Work:
The COVID-19 pandemic has fundamentally altered commuting patterns worldwide. With many companies adopting remote or hybrid work models, the frequency and nature of commuting have changed. According to a 2023 report by Global Workplace Analytics, about 25-30% of the workforce in advanced economies now works remotely multiple days a week, significantly reducing the daily commute.
Reduced Commuting Frequency: The reduction in daily commuting has led to decreased traffic congestion and lower demand for public transportation in many cities. For instance, the Global Traffic Report by TomTom indicates a 15% reduction in peak traffic congestion levels in major cities like New York and London compared to pre-pandemic levels.
Shift in Commuting Times:
Flexible Hours: With flexible working hours becoming more common, traditional peak commuting times have become less pronounced. A study by the University of California, Berkeley found that commuters increasingly travel outside the traditional rush hours, leading to a more even distribution of traffic throughout the day.
Increased Use of Micro-Mobility:
Rise of Biking and Scooters: There has been a notable increase in the use of micro-mobility options, such as bicycles and electric scooters. According to a report by the International Transport Forum, cities like Paris, Berlin, and San Francisco have seen a 20-30% increase in bike and scooter usage as commuters seek alternative, socially-distanced modes of transport.
Public Transport Adaptations:
Health and Safety Measures: Public transportation systems worldwide have implemented enhanced health and safety measures to address commuters’ concerns. A survey by the International Association of Public Transport found that 70% of transit agencies have introduced increased cleaning protocols, contactless payment options, and social distancing measures to restore commuter confidence.
These emerging trends underscore the dynamic nature of commuting behaviours and highlight the need for brands to stay informed and adaptable. By understanding these shifts, brands can develop innovative mobility solutions that cater to commuters’ evolving needs and preferences in a post-pandemic world.
Engaging with Commuters
Contactless and Mobile Payments:
The adoption of contactless and mobile payment systems in public transportation has surged. Global contactless transaction values are expected to reach $6 trillion by 2024. Brands can capitalise on this trend by integrating seamless payment solutions into their services.
Smart Mobility Hubs:
Mobility hubs integrating various modes of transport (bikes, scooters, buses, and trains) are gaining traction. These hubs provide a seamless transition between different transportation modes. A recent McKinsey & Company study indicates that smart mobility hubs can reduce commuting time by up to 20%.
Sustainable Mobility Solutions:
There is a growing demand for sustainable commuting options. Electric vehicle (EV) adoption is increasing, with BloombergNEF predicting EVs will constitute 58% of new passenger car sales by 2040. Brands can invest in EV infrastructure and promote green commuting initiatives.
Personalised Commuting Services:
Using AI and big data, brands can offer personalised commuting services catering to individual preferences. For instance, predictive analytics can optimise travel routes and schedules, enhancing the commuting experience.
Regional Analysis
USA (New York and Los Angeles):
Driving Habits: The American Community Survey reports that 83% of Los Angeles commuters use their own cars regularly, while 45% of New Yorkers commute by car. Despite a reduction in peak congestion due to remote work, personal vehicle use remains high.
Public Transport Usage: In New York, public transport usage has slightly declined, with 55% of commuters now using it regularly, down from 62% pre-pandemic. Los Angeles continues to struggle with low public transport adoption, with only 25% of commuters using it frequently.
New Commuting Trends: The rise of remote work has led to a more distributed commuting pattern, reducing peak hour congestion. There is also increased interest in micro-mobility options, with bike and scooter usage growing by 15% in both cities.
UK (London):
Sustainable Transport Initiatives: London has implemented several sustainable transport initiatives, including the Ultra Low Emission Zone (ULEZ) and expanded cycling infrastructure. Transport for London says these measures have reduced vehicle emissions by 44% and increased cycling by 22%.
Commuter Behaviours: A recent survey by the UK Department for Transport shows that 36% of Londoners primarily use public transport, while 23% walk or cycle. There is a growing trend towards active commuting, with more Londoners opting for bikes and e-scooters.
South East Asia (Singapore, Jakarta, Manila, Ho Chi Minh City):
Singapore: Efficient Public Transport: Singapore’s public transport system is highly efficient, with 76% of commuters using it daily (Singapore Land Transport Authority). The government’s investment in smart technology and seamless payment systems has enhanced the commuting experience.
Jakarta: Motorbike Dominance: Due to severe traffic congestion, 61% of Jakartan commuters use motorbikes. The Jakarta Transportation Agency reports that recent infrastructure projects aim to improve public transport usage.
Manila: Overcrowded Public Transport: Only 20% of Manila commuters can access reliable public transport. Brands have a significant opportunity to develop affordable and efficient mobility solutions.
Ho Chi Minh City: Rapid Urbanisation: Ho Chi Minh City is experiencing rapid urbanisation, with a 10% annual increase in motorbike usage (Vietnam Ministry of Transport). There is a growing need for integrated and sustainable transport options.
Summary of Key Takeaways
Understanding Global Commuting Patterns: The findings from Kadence International’s comprehensive study and recent insights highlight the significant differences in commuting behaviours across various global cities. From the shortest commutes in Los Angeles to the longest in Mumbai and from the high car usage in the US to the dominant motorbike culture in Jakarta, these patterns reveal crucial information about regional preferences and challenges.
Importance for Brands: Understanding these global commuting patterns is essential for brands looking to innovate in the urban mobility space. It allows them to develop tailored solutions that resonate with local commuters’ unique needs and preferences. The shift towards remote work, increased adoption of micro-mobility options, and the growing demand for sustainable transport solutions underscore the need for a culturally informed approach to urban mobility.
To harness the full potential of these insights, we encourage brands to engage with Kadence International. Our team offers detailed research findings and tailored recommendations to help you navigate the complex urban mobility landscape.
Thailand, often celebrated as the “Land of Smiles,” is a nation where warmth and friendliness are as much a part of the culture as its vibrant street markets and stunning temples. This nickname, popularised by a tourism campaign in the 1980s, highlights the country’s welcoming spirit and subtly emphasises a profound understanding of service and hospitality. Yet, to consider Thailand solely through the lens of its tourism slogan is to overlook the complexity of the cultural, economic, and social elements that shape the preferences and behaviours of Thai consumers.
Understanding the Thai consumer is about acknowledging external friendliness and appreciating the underlying cultural values, economic conditions, and social dynamics that influence purchasing decisions.
From the influence of Buddhism, which instils a sense of zen, to the strong ties of family and community that guide daily life, these cultural underpinnings play a significant role in shaping consumer behaviour in Thailand. Marked by a growing middle class with increasing purchasing power, Thailand presents unique opportunities and challenges for domestic and international brands.
Also read: “How Thailand is Strategically Positioned for International Expansion, here.
Cultural Background of Thailand
Thai Culture, Traditions, and Values
Thai culture is rich in traditions and values that reflect the country’s long history and ethnic diversity. Respect, humility, and kindness are deeply ingrained in Thai society, influencing social interactions and behaviours. The traditional Thai greeting, the “wai,” where a person bows with palms pressed together, symbolises respect and is a key example of the polite manners expected in Thai culture. This emphasis on respect extends to a deep reverence for the monarchy, which plays a central role in Thai identity and unity.
Thai traditions are also closely connected to the agricultural calendar, with festivals such as Songkran (the Thai New Year) and Loy Krathong (the light festival) reflecting the country’s agrarian roots. These celebrations are significant for their cultural value and influence consumer behaviour, as they are times of increased spending on food, gifts, and entertainment.
Influence of Buddhism and Its Impact on Consumer Behavior
Buddhism is the predominant religion in Thailand, shaping the country’s moral framework and daily life.
Buddhist principles of karma (the belief that good deeds lead to a better life) and moderation influence Thai people’s approach to consumption.
There’s a tendency toward mindful spending, with many Thais valuing experiences and personal growth over material wealth. This doesn’t mean they avoid purchasing goods; rather, they prefer products that offer value in terms of quality and sustainability, reflecting a broader ethical consumption trend.
Buddhist holidays and rituals also impact consumer patterns, with certain periods dedicated to fasting or abstaining from alcohol, which can affect sales in relevant industries. Brands often participate in activities promoting goodwill, like donating to temples or charities, which can enhance their reputation and appeal to ethically-minded consumers.
Role of Family and Social Structures in Shaping Purchasing Decisions
Family is the cornerstone of Thai social life, often extending beyond the nuclear family to include a wide network of relatives. Decision-making is collective, with a high value placed on harmony and the group’s well-being over individual desires.
This collective approach influences purchasing decisions, with products and services that cater to family and social activities often seeing higher demand.
Social structures in Thailand also emphasise seniority and hierarchy, which can influence consumer behaviour.
Products or brands perceived as status symbols or confer prestige can be particularly appealing, as they reflect well on an individual’s social standing. Additionally, word-of-mouth and recommendations from respected community members can significantly impact consumer choices, making influencer marketing and community engagement crucial business strategies.
Consumer Behavior Trends in Thailand
General Consumer Behavior Trends in Thailand
The consumer market in Thailand is transforming, with increasing confidence and a growing preference for digital platforms and sustainability. According to a survey by The University of the Thai Chamber of Commerce, Thai consumer confidence reached its highest level in 48 months in February due to government stimulus measures and a rebound in tourism that revitalised economic activities.
Consumer confidence slightly dropped from 63.8 to 63 points in March due to the rise in the cost of living and the economy. So, brands must understand the changing consumer behaviours to adapt their marketing strategies to attract budget and value-conscious consumers.
Thai consumers are also increasingly drawn to digital consumption, with a notable shift in interest toward sustainable living and convenience. Searches for “restaurants near me” and “sustainability” have seen significant upticks on Google, highlighting a consumer base that values environmental considerations and ease of access.
Attitudes Toward Local Versus International Brands
Thai consumers show a nuanced approach to brand preference, balancing local authenticity and international quality. There is also a preference for direct interactions with brands via their websites over social media channels.
Around 70% of Thai consumers reported that more than half of their journey stages, including inspiration, search, and purchase, occurred online.
Source: A survey by The Nation News
This shift is attributed to a desire for clear incentives, accurate product descriptions, and the appeal of free delivery options. Interestingly, Key Opinion Leaders (KOLs) have emerged as significant influencers in purchase decisions, more so than family or traditional advertising channels.
Trends in Digital Consumption, Including Mobile Usage and Online Shopping Habits
Thailand is the second-largest digital economy in Southeast Asia, just after Indonesia, according to Statista. The e-commerce market in Thailand comprises around 43.5 million consumers, with a gross merchandise value of $19 billion. The market is mainly dominated by younger Thais, with those aged between 17-36 accounting for 62 percent of the market. Thais aged between 37-50 account for 33 percent, while those aged between 51-71 make up 5 percent of the market.
Shopee, Lazada, Central, Hompro, Jib, and Kaidee are popular e-commerce sites in Thailand with advanced logistics and delivery infrastructure primarily used by sellers.
Almost half of Thailand’s online shoppers have made cross-border e-commerce purchases.
Cross-border e-commerce accounts for 30% of the country’s e-commerce market.
A marked increase in search interests for financial literacy, including investments and cryptocurrencies, indicates a more financially savvy population. The online shopping sector reflects a diverse and discerning consumer base. While traditional e-commerce platforms like Shopee and Lazada continue to attract users, there’s a noted increase in purchases made directly from brand websites, driven by the pursuit of better deals and more detailed product information.
45% of Thai consumers plan to increase their online shopping in 2024
Source: Neilson
Digital consumption extends beyond shopping to encompass a broader lifestyle shift towards a seamless online-offline integration. Consumers are embracing hybrid experiences that allow for the convenience of online discovery and transactions, along with offline engagements. The rising popularity of “buy now pay later” schemes, virtual try-ons, and booking apps underscores a lifestyle that values flexibility and blending digital convenience with physical experiences.
At the beginning of 2023, Thailand had approximately 61.21 million internet users, equivalent to 85.3% of the total population. The country also registered 101.2 million mobile connections and 52.25 million social media users.
Source: Digital 2023
Key Sectors and Product Preferences in Thailand
Technology: The technological market in Thailand is vibrant, with international brands like Samsung and Sony being prominent players. These brands, alongside domestic ones, cater to a digitally savvy Thai population that has rapidly embraced e-commerce and digital solutions, especially in light of the pandemic’s push towards online shopping.
The market value of e-commerce will reach $32 billion by 2025.
Source: The E-Commerce Association
Mobile devices are responsible for over 80% of all online sales in Thailand, and 23% of all transactions are made through mobile wallets. It is predicted that by 2025, the prevalence of mobile wallets in Thailand will increase to 63%.
Fashion: In the fashion sector, e-commerce has seen a significant boom, with fashion items, including clothes and footwear, accounting for 60% of the total market, according to Trade Gov. Both international and local fashion brands have capitalised on this trend, focusing on online sales channels to reach their customers.
Food and Beverage: The food and beverage industry has witnessed a surge in interest in plant-based alternatives, aligning with global trends towards sustainability and health.
According to a Statista survey conducted in April 2023, Thais aged between 25-34 years old were found to be the leading age group ordering food delivery at least three to six times per week in Thailand.
GrabFood, LINE MAN, Food Panda, and Shopee Food are some of the key players in Thailand’s food delivery market, with Grab holding the highest market share.
The value of the food delivery market in Thailand has reached around 400 million U.S. dollars.
According to Statista, the Thai beverage industry is mainly focused on domestic consumption, with almost 80% of its production being consumed in Thailand. Despite the inflated cost of living, the sluggish global economy, and ongoing conflicts, the demand for beverages has gradually recovered.
In 2022, the beverage industry grew by 2.8%, ranking second among consumer goods with the highest growth rates.
Source: Statista
In the upcoming years, the overall trading of alcoholic and non-alcoholic beverages may increase slightly as the local market continues to thrive, despite the challenges faced in exports.
Beauty Products: The beauty sector is experiencing growth through e-commerce, supported by international giants like Amazon and Tmall and direct-to-consumer brands.
It is projected that the revenue in the Beauty & Personal Care market in Thailand will reach US$6.67bn by 2024.
Source: The Global Wellness Institute
Consumers demand an omnichannel experience, and brands are recognising the importance of in-store experiences alongside online shopping.
Preferences for Sustainable and Eco-Friendly Products
Sustainability plays a crucial role in shaping consumer preferences in Thailand, with 44% of Thai adults strongly prioritising products or services with strong environmental credentials. For more detailed insights, read our comprehensive report, “The Green Brand,” which offers an in-depth analysis of sustainability practices across ten countries, Thailand included.
Impact of Health Consciousness on Consumer Choices
Health consciousness significantly impacts consumer choices, with a continued focus on wellness influencing food and beverage preferences.
A study by Thailand’s Commerce Ministry has found that the country’s health economy has a great potential for growth as people around the world are becoming more aware of the importance of health and self-care.
A strong inclination toward digital consumption, sustainability, and health-conscious choices characterises Thailand’s consumer market. These trends are shaping the strategies of both international and domestic brands across key sectors, emphasising products and services that align with these evolving consumer preferences.
Marketing Strategies Tailored to the Thai Market
Cultural Sensitivity: Understand and respect Thai customs and values. Incorporating elements of Thai culture into marketing materials shows respect and can enhance brand perception.
Social Media Utilisation: Leverage platforms like Facebook, Instagram, and LINE, which are popular in Thailand. Tailoring social media campaigns that engage with Thai users can significantly increase brand visibility.
Local Influencers: Collaborate with Thai influencers who resonate with your target audience. Their endorsement can build trust and credibility among potential customers.
Localised Content: Ensure all marketing materials are available in Thai, and adapt your messaging to reflect local interests and linguistic nuances to connect more deeply with Thai consumers.
Case study: AirAsia
AirAsia’s success in Thailand can be attributed to a strategic blend of clear branding, cost-effective operations, and strong management practices.
Source: AirAsia
Here’s a breakdown of how these strategies played out:
Clear and Compelling Branding: “Everyone Can Fly”
AirAsia’s tagline “Everyone can fly” encapsulates the airline’s mission to make air travel affordable for a broader audience. This powerful message directly appeals to cost-conscious consumers, offering them the possibility to travel by air, which was previously considered a luxury for many. By democratising air travel, AirAsia tapped into a new segment of the market, increasing its customer base significantly.
Low-Cost Model: Operational Efficiency
The core of AirAsia’s business strategy is its low-cost model, which is pivotal in maintaining its competitive edge. By focusing on minimising operating costs, which account for 32.2% of its strategy, AirAsia is able to offer significantly lower fares compared to traditional carriers. The airline achieves these savings through various means, such as using a single aircraft type to reduce training and maintenance costs, maximising the utilisation of planes with quick turnaround times, and selling tickets primarily online to cut down on commission fees to travel agents.
Strong Management and Quality Control
Although it’s the aspect that receives the least emphasis at 27.8%, developing a strong management team and emphasising quality control are critical to AirAsia’s success. Effective management teams ensure that operations run smoothly and efficiently, essential in a low-cost carrier model with tight profit margins. Also, maintaining high-quality customer service and safety standards enhances customer trust and satisfaction, leading to repeat business and a positive reputation in the competitive airline market.
AirAsia’s success in Thailand results from its ability to combine a strong value proposition with efficient operations and effective management. This approach satisfies the immediate needs of price-sensitive customers and builds a sustainable business model that can adapt and thrive in the evolving aviation landscape.
Case Study: McDonald’s Thailand’s Viral TikTok Challenge
Campaign Overview
To connect with a vibrant and digitally savvy Thai audience, McDonald’s Thailand embraced a fun and engaging TikTok trend that originated in Indonesia. The campaign cleverly adapted this trend to the Thai cultural context, integrating local flavours and customs, culminating in a tailored product launch that significantly boosted sales and enhanced customer engagement across Thailand.
The campaign was designed to capture the attention of Generation Z in Thailand, a demographic that predominantly interacts with brands through social media. Engaging this segment effectively was crucial for capturing a substantial market share.
Creative Strategy:
When a soft serve ice cream eating hack went viral in Indonesia, McDonald’s Thailand saw an opportunity not just to replicate but to ‘Thai-fy’ the trend. This approach not only embraced the viral nature of the original content but also added a unique local twist that resonated well with Thai consumers.
The original trend involved customers combining multiple orders of soft serve into a large bowl, creating an enjoyable and shareable experience. This concept quickly gained traction on TikTok, gaining widespread popularity and user engagement.
Campaign Roll-out:
Leveraging TikTok’s dynamic platform, McDonald’s Thailand used ads to amplify user-generated content rather than creating traditional advertisements. This strategy utilised organic posts from the community, enhancing the authenticity and relatability of the campaign.
To deepen the campaign’s cultural resonance, McDonald’s introduced a new menu item: a special ice cream cone designed for smashing into a bowl, celebrating the communal and fun nature of Thai eating habits.
They further incentivised participation by offering bowls in-store with each purchase of the new item, encouraging customers to engage with the trend physically and digitally.
Market Impact:
Previously, McDonald’s Thailand faced challenges in converting social media engagement into tangible sales. This campaign marked a turning point by effectively integrating an online trend with offline purchasing. The introduction of a culturally tailored product, combined with the strategic use of native TikTok ads, led to a staggering 130% increase in soft serve sales and an 83% rise in in-store foot traffic month-over-month.
The new ice cream cones quickly sold out across the country, demonstrating the campaign’s immense popularity and effectiveness.
The success of this initiative showed how McDonald’s could seamlessly integrate digital trends with physical products, leading to substantial business growth and stronger connections with the local community.
Final Thoughts
The Thai consumer is characterised by a complex interplay of cultural authenticity, sustainability, digital innovation, and global influences. Brands looking to capitalise on this market must navigate these trends by offering clear value, engaging directly with consumers, and adapting to the growing demand for sustainability and digital convenience.
The rise of KOLs and a preference for direct brand interactions over social media suggest that personal recommendations and trust drive consumer behaviour in Thailand. As digital platforms continue to shape consumer preferences, brands offering an integrated online-offline experience and a commitment to sustainability will resonate with Thai consumers.
As a global market research agency with a strong foothold in Western and Asian markets, including Thailand, we are ideally positioned to help brands understand and engage with these dynamic consumer trends. Connect with us to leverage your brand’s potential in Thailand and beyond, ensuring your strategies are informed, relevant, and competitive.
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