The Party's Over ✊
Welcome to "nouveau monde", sort of a "nouveau genre" newsletter to better understand how to make the world better through the lens of retail. This is #18!
This week in nouveau monde, we’ll talk about how consumers behavior is changing and shifting to a more sustainable consumption, one survey at a time. And also, how the gig economy changes, for the good this time ?
Things move fast in retail and sustainability, we’re really happy to help you get the right tips and be inspired !
Read, like, share, subscribe :-)
Today's newsletter is 984 words (or so), a 5-minute read (anyways, just read it).
Did you hear your customers?
January 10, 2018. A research, developed in partnership with the National Retail Federation (NRF), polled nearly 19,000 consumers from 28 countries, across all demographics and generations, from GenZ to Baby Boomers (ages 18-73), to understand how individual purchasing decisions are evolving and help today's consumer-facing companies navigate trade and commerce complexities.
What the PR says: “One-third of all consumers today will stop buying their preferred products if they lose trust in the brand, and one-third of consumers have already stopped purchasing their longtime, favorite brands in 2019. As such, consumers are prioritizing those that are sustainable, transparent and aligned with their core values when making these decisions. They're willing to pay more, and even change their buying habits, for brands that get it right.
At the same time, buying behaviors have changed drastically. Consumers shop whenever and wherever the mood strikes them - usually while doing something else. Whereas impulse buying was once the norm, impulse shopping is the current norm, 7 in 10 consumers now shop in "micro-moments" – or shop simultaneously while conducting their daily tasks.”
Read more here and download the research.
The solution? Earn consumers' confidence through transparency and traceability, measure sustainability through economic impact, deliver value through more flexibility, not more products.
Again, later on 2018. Futerra’s survey of over 1,000 consumers in the USA and UK shows that 96% of people feel their own actions, such as donating, recycling or buying ethically, can make a difference. Over half believe that they personally can make a big difference.
And on and on. Read the Forbes article here.
June 04, 2019.
The survey of 6,000 consumers in 11 countries across North America, Europe and Asia, results of which were previewed at the American Chemistry Council (ACC) Annual Meeting today, found that while consumers remain primarily focused on quality and price, 83% believe it’s important or extremely important for companies to design products that are meant to be reused or recycled. Nearly three-quarters (72%) of respondents said they’re currently buying more environmentally friendly products than they were five years ago, and 81% said they expect to buy more over the next five years.
IBM, Accenture, what else, they will all agree. Release some research. And what else?!
You should read the article from RetailDive, with bunch of example on how to follow the (new rules) or get some inspiration from DTCs, Retailers…Packaging, sourcing…
Yes, “Will sustainability change the retail landscape?”. Ask CB Insights :)
Because you know, this is #18, and we really want to know if you click on links there. Just a test with some good stuff. Hope you’ll enjoy this and our newsletters as well: we got you back here. Take care.
Gig Economy, act III
I have to admit that I'm personally not a power user of the gig economy.
Always thought the service was cool but that there was some kind of bug in the equation.
We've heard since a long time that the workers had a pretty decent pay at the beginning of these services but that at the same time the startups behind the service was burning a lot of cash to make their product look great and affordable.
And as time passed, riders and other delivery guys saw their income decrease little by little. On the customer side, prices were still low and we didn't see that the decrease of the workers pay was just to fill the giant hole of the gig economy's bank account.
Don't know if this is happening in France but I was amazed by an article in the New York Times recently titled "Farewell, Millenial Lifestyle Subsidy" by Kevin Rose (if you're not a NYTimes subscriber, you should be able to read it thanks to my ability to make a "gift" and let people read articles for free...)
Key takeaways :
for a long time, these gig economy services were subsidized by venture capital and the giant raises of money they made to catch the market as fast as possible
gig workers were the first collateral victims when VC asked for a certain path to profitability
the covid crisis broke the dynamic by suddenly stopping all activities and put the companies in front of the reality that they would never go anywhere by maintaining the crazy race to catch the market (there was no more market...)
since a few month, according to Kevin Rose, prices are rising and we tend to realize that the cheapness of the services was not natural and that we eventually have to pay for a service we are using
the risk is that platforms raise their fees without taking their gig workers into account and maintain a high pressure on their pay, thus risking of a bad customer experience.
At the same time, some workers try to assert their right by protesting. Not easy when you're a gig worker (we talked about it on nouveau monde #8). It seems that the new shining stars in the delivery startups ecosystem - the fast grocery delivery - face the same problem, even if they have mostly opted to incorporate their workforce : Gorillas, the german company, recently faced a strike after they fired - a little to quick - a worker in Berlin.
Interesting by the way to see that the protest sign is here written in English as protesters know that it is a worldwide fight they are taking part.
Prices coming up, protests everywhere, is this a sign of maturity coming for the crazy "sharing economy" which indeed didn't really share the created richness to every stakeholder ?
Take that into account if you are a retailer, the business model of the early days of the gig economy might not last long as they are not sustainable for all stakeholders, you’d better build on other strong foundations.