Environmental Factors and the Future Consumer
I’m part way through a small research piece for an FMCG company that is interested in exploring the future consumer and what kind of environmental factors might influence their purchasing decisions. Interestingly enough toward the end of last year I had three FMCG firms approach me about a similar challenge, so ‘Future Consumers’ must be ‘flavour of the month’ (pun intended). When talking consumers, an Environmental Factor refers to the things that influence the consumer, especially at point of sale and delving into some of the emerging developments in this space is delightfully interesting.
Without giving too much away before I hand my report to my client, there’s a very distinct sense of change in the food sector that suggests a myriad of possibilities in the products space. There’s examples of how data is being used to engage with customers; examples of product stewardship; examples of functionality and more. But perhaps the biggest challenge is what appears to be a shift in price sensitivity over which OTHER factors are being layered. I won’t say much specific here but offer an example from a different but aligned sector: petroleum.
It appears that over the past 12 months, Petroleum has crossed the ‘must have threshold’. In otherwords, regardless of current price, people were going to fill their tanks. But recent Environmental Scanning has identified that the threshold has snapped. Simply put, a confluence of factors (cost per litre, down-sizing by companies leading to job losses, increased acceptability of genuine job flexibility location options and new technology among others) now suggests that consumers are actively choosing to reduce their need for fuel. The cost has become overladen with other factors that heighten consumer sensitivity to it. Environmental Factors are shifting consumer behaviour away from the incumbent.
This has a whole array of other impacts connected to it – less consumption increases prices charged increases less consumption. Higher prices lead to fewer car sales = slump in imports and on it goes.
Building the systems map for my FMCG client is showing some glaring change over the next five to ten years that will potentially capture many current brands by surprise. In summary, the Environmental Factors that influence consumer behaviour appear to be evolving. Opportunities and Risk abound!
Are we there yet? Have people finally cottoned on to the idea that maybe, things aren’t going so well for the planet and our place in it? Storms, up; floods, up; fires, up; droughts, up; people being displaced by climate events, up. The signals are all around us. And yet, as a species we struggle…
Read More >One of the most challenges aspects for owners of businesses, and also for Boards charged with running businesses, is how to allow for the impact of a decision to unfold over time. Many listed company Boards will be delaying with a CEO on a limited tenure. The Board will have set expectations for performance and…
Read More >Local Governments in Australia face an emerging risk space that many seem unaware of. Brought on by rising costs, especially in business premises rentals, compliance needs and registration costs, research we’ve identified as part of work with a Local Government client is indicating a significant increase in businesses popping up in residential areas. What seems…
Read More >It’s been a rather hectic few months here at Looking Up Feeling Good in between getting a complete site rebuild, multiple interstate travel commitments and assisting an assortment of clients trying to deal with one rather interesting challenge – what to do when we’re supposed to be done and dusted with a pandemic, yet we…
Read More >Interesting emerging dynamic about to land on the shop fronts of Australian retailers that pose serious risks to their staff. And few retailers are ready With moderate level of vaccinations targets achieved, the NSW Government has decided to open up from a #Covid19 lockdown. It does so, relying on compliance enforcement to be undertaken by…
Read More >There’s a lot not to like about the latest spike in Victoria’s #Covid19 numbers. And the most culpable are mainstream media companies who created the social response The latest spike in #Covid19 infections can be directly attributed to Channel 7, Channel 9 and the ABC with lesser blame attributed to Channel 10 and SBS. In…
Read More >For those of you that follow me on other platforms, you’ll have seen, heard or read some of my thoughts on the lab grown proteins from firms like #ImpossibleFoods or #BeyondMeat. I’m a fan of those lab grown protein concepts arriving at that position whilst undertaking a Master of Science in 2004 in which…
Read More >Trying to understand something you’ve never experienced before can be a real challenge. In this post the #Covid19 #pandemic is explained using cars and traveling Your body is your car – it’s your mode of transport in this life. We want to treat it well and insure it and ideally we want to be able…
Read More >There’s a significant disconnect with a number of articles on ‘Hybrid Workplaces’ and it’s really disappointing to see SO MANY large consultants pump out articles that ignore reality. So this is a short take to offer an additional perspective. 1) Hybrid workplaces have existed for centuries, they are not new, though the sudden interest is…
Read More >Hi everyone – though a focus on particular those of you in Victoria, Australia who have an idea related to sports, active living or recreation that they might like to convert into a business. Sportstech & Active Living Pre-Accelerator program is being run by the Australian Sport Technologies Network (ASTN) and the Global Sports…
Read More >