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5 Hot Consumer Behaviors in 2023, What trends are coming?

In 2023, seven factors will affect consumer behavior: physical well-being, value, rights, respect, and protection (Rights), being protected. Accept (Identity), new experiences (Experiences), and relationship with the environment. (Surroundings), and Technology (Technology), which can be divided into 5 consumer behaviors as follows:

1. Addicted to identity to focus on more personalization
2. Want to participate They want brands to listen and understand what they want.
3. Exhausted as a result of receiving news media all the time, therefore, needing something that will help make him feel at ease
4. Support communities for society and sustainability Most of them are from the trend of saving the world. (Sustainability) and doing good to return profits to the world and society.
5. Spend wisely as a result of the slowing economy But be willing to pay to reward yourself

This New Year 2023, many entrepreneurs may start planning to expand their business or enter new markets to strengthen their business portfolio. But may still be hesitant about how to start because the economy is still uncertain. If the strategy is wrong, bad luck can be ruined.

In this article, we will talk about, What is consumer behavior? What are the factors that affect it?

Behavior 1: Eat Identity

Behavior 2: Wanting to Be More Involved

Behavior 3: Tired and exhausted

Behavior 4: Support communities for society and sustainability

Behavior 5: Spend Wisely

What is consumer behavior? What are the factors that affect it?

Consumer behavior refers to the study of consumer decisions towards a product or product in which direction. Will you use or buy that product? Or what factors can encourage customers to buy products, etc. This information is very useful for entrepreneurs. Because it will give insights of customers until finally able to market to sell products that meet the needs of consumers. If you know the behavior of consumers better. The more brands will be able to penetrate more customers.

But in reality Consumer behavior is not the same all the time. External factors such as economy, society, personal preferences, etc. always play a part in changing consumer behavior. Therefore, entrepreneurs need to “understand” their customers through studying trends. Market-Industry Analysis to adjust sales strategies

For 2023, the British market research agency Mintel It is predicted that there are 7 main factors that will affect consumer behavior as follows:

1. Happiness
2. Value
3. Rights, respect and protection (Rights)
4. Recognition (Identity)
5. New experiences (Experiences)
6. Relationship with the environment (Surroundings)
7. Technology

From the above 7 factors, it can be summarized as 5 main consumer behaviors in 2023:

Behavior 1: Eat Identity

Questions like “Who are we and what do we want?” will remain a classic amongst consumers, but in 2023 there will be another: “What expresses who we are clearly?”

“Personalization” or “designing products-personalized services” may not be strange. Because since 2021, we will see big entrepreneurs launch strategies to Personalize and Customize a variety of products and services. From Basic to Advanced, such as

• Officine Universalle Buly offers engraving services on branded products.
• Nike lets customers design their own shoes.
• Apple released a new operating system with features that allow users to customize the Home Screen as they wish.

A Deloitte survey found that 80% of consumers are willing to use products from brands that Personalization get along with yourself the most Therefore, next year, this trend is likely to continue as consumers become increasingly addicted to personalized services, and we will see each brand competing for this strategy more aggressively. Some brands may upgrade their service to Hyper-Personalization uses data to analyze data to design personalized services that best meet the needs of customers. This could be anything from shooting ads to customers based on their online search behavior. Until organizing special promotions for products that some customers buy often

Opportunities for Entrepreneurs

the heart of Personalization is to offer a service that “Most meets the needs of customers” as well as making customers feel the product or service received. “Born only for me”. Zodiac coffee mugs The food menu to choose from, “machines” can be put as many as you want. Can also be caused by a small service such as putting the name of the customer in the message we send. Remember the customer’s name when entering the store or issuing promotions for specific groups of customers (such as “special discounts for healthcare professionals”).

If entrepreneurs are ready, they can use technology to collect data to market to each customer as well.

Behavior 2: Wanting to Be More Involved

Modern consumers want brands to really “listen” and “understand” what they want. Analyze the market and release products to sell. This strategy may have worked well in the past. But nowadays, it may not work at all because “customers” have become an important variable for business as “consumers” and “co-creator” because they have money to buy things. And also have an idea of how the things that you want to buy or want to use should be.

So instead of marketing around the world, incorporating our customers – the people who actually use our products – in the process in the first place is even more beneficial for the brand. Because when participating, the incentive to buy the product is even higher.

Over the past year, we may have seen examples of “Use real people” to help design both

• IKEA opens its “Ideas Factory” for designers to join in designing products.
• DHL opens up a space for customers to design new ways to deliver parcels to solve the problem of slow delivery.
• Nanyang released the Black Pink Elephant Star sandals, celebrating the artist along with the customers. which was a campaign that received good feedback both in sales and image.

Opportunities for Entrepreneurs

Entrepreneurs can adapt this approach to their own business by creating a business model that allows customers to participate, for example, perhaps creating a product review feedback system. Create product design contest campaigns, etc.

Behavior 3: Tired and exhausted

“So much news that it gives me a headache” or “Following the trend until I’m tired” is one of the behaviors that may occur among consumers next year. Technology plays a very important role in causing this behavior.

In the past 2 years, consumers have doubled their use of the internet. Global usage statistics average around 7 hours per day (Thai people use 9 hours). Various contents have moved to online platforms. In addition, “unexpected events” such as wars, epidemics, and inflation have caused consumers to burnout, burnout, or goblin mode (as Oxford calls it the word of “good-for-nothing”). year 2022) as well.

Therefore, in 2023, consumers are paying attention. “Physical health – mental health” more and will seek to create a lifestyle or products to eliminate stress. McKinsey reported that in the United States, the Wellness and Self-Care group had revenues of about 4.5 billion US dollars last year. and tends to grow further in the following years

Examples of interesting wellness businesses such as:

• Cosmetics company Selfmade launches skin care products along with hormonal-mind balancing through skin care steps. The result is better skin and mental health.

Opportunities for Entrepreneurs

When the pain point is clear that “there is only discomfort these days,” brands may be able to pull the point. “Design for peace of mind” can become a selling point for businesses. However, entrepreneurs have to break the problem of “comfort” and turn them around with their own business.

‍Also, this may be a time for entrepreneurs to find a way to communicate with new customers. which may be thought on the basis that “How to talk to customers that don’t bother them” focuses on the efficiency of communication rather than quantity to build good and fit relationships with customers.

Behavior 4: Support communities for society and sustainability

Environmental problems and building a better society is what consumers value We have previously written that ESG trends are affecting businesses across all sectors. This trend might be one example to illustrate.

Buying or using local products supports the idea of sustainability. because it supports the community return profits to society And save the world because it reduces the carbon footprint caused by transportation. (In some cases, it may be related to the production)

In addition, community products are more beneficial to consumers because they are cheap and have no hidden costs. and can be sent faster In addition, local entrepreneurs also improve the quality and design of their products, which are as good as imported products from outside the consumer.

Examples of brands that respond to this consumer behavior include:

• Lays produces potatoes in a farm in Chiang Mai to promote local agriculture.
• Local Alike, a state-owned enterprise for the community Develop products to generate income for local people under the Local Aroi and Local Alot brands.
• NGL Pillows and products made from rubber Helps add value to Thai rubber agriculture.

Opportunities for Entrepreneurs

Local entrepreneurs can expand opportunities for their businesses by making their products more visible to consumers online. because despite how ecological and organic this trend sounds But this does not mean that consumers will reach out to the community to buy products. Expanding sales channels to online platforms creates more sales opportunities.

besides that This trend may be an opportunity for entrepreneurs to rethink their own supply chain. Try to systematically think about the supply chain from upstream to downstream. Entrepreneurs may start to consider new production bases to reduce transportation costs. or replacing certain materials for more sustainable production.

‍Behavior 5: Spend Wisely

Next year’s economic outlook remains a worrying direction. Looking at the 2-10 spread statistics, we can see that inflation and sluggish economy will not end easily, so consumers will be spending their money and shopping more wisely which may be divided into 3 cases:

1. Top Saver: Smart Spender

This is the case with similar and cheaper products. Previously, consumers rarely changed products often because Brand Loyalty was still high. Whatever was good, they used the same one. But over the past year, 45% of consumers said their preference for the same brand had decreased, and 22% said they would be willing to switch to a new brand if the price was lower.

2. Price Hunter: Price Hunter

In the case of products that have specific properties cannot be used interchangeably. Consumers will wait to buy during promotions. McKinsey reports that consumers in China prefer to buy skincare and luxury products through platforms such as WeChat or TikTok because they are cheaper than going directly to the store and the brands themselves. Marketing to increase online sales by organizing a promotion to cut the price when buying for the first time. or offer free delivery to attract consumers as well ‍

3. Splurger: Extreme Splurger

This case relates to the exhaustion trend. Because consumers tend to spend unlimited amounts to reward themselves, but the “things they are willing to pay for” must also be worth the money. It could be in the experiential or other premium areas, such as omakase meals. or trips to the Caribbean islands in the South Seas, etc.

may sound contradictory But this is proven true by the Lipstick Index, a theory that the more the US economy How low will it be? The higher the lipstick sales. It is believed that because the more difficult life or feeling the need to tighten their belt More and more people are turning to buying little “luxury” things that are still affordable to cheer themselves up. Just in 2022, lipstick sales have increased by 48% compared to the previous year.

Opportunities for Entrepreneurs

On days when consumers are more “Price Loyalty”, “Brand Loyalty” strategies may be less effective. Especially if our products are not very different from competitors. Instead, strategies that entrepreneurs can create may be strategies that play with the price, quantity, and a “feel good” experience for the consumer.

Coles supermarkets, for example, sell large-size products at cheaper prices to create a sense of value for consumers.

However, from Item 3, it cannot be overlooked that sometimes consumers will still be willing to pay a high price. If the product is pleasing Can really create a good experience, so if our products meet this requirement There is still an opportunity to make money without going into a price war.‍

Summarize

From all behaviors, We can roughly conclude that in 2023, consumers will pay more attention to physical and mental health (wellness), but will also focus on sustainability. (Sustainable) as well. In addition, consumers will consider the value for money paid more as a result of the economy (value).