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!
Old normal, new normal, normal normal. As some businesses aim to rush back to ‘old normal’ they’re likely missing a key opportunity to define, perhaps for the first time, what a new normal should look like for themselves. This Workforce Planning framework should help As a CEO or senior manager, here’s questions I’d want…
Read More >As Covid19 variants continue to emerge, the cause of which can be fairly placed at a lack of social distancing and slow vaccine rates that allow ‘mixing’ of viral strains in social settings, India is on the brink of a healthcare collapse and the implications for Australian companies, especially in the tech sector, are huge.…
Read More >What does the future hold for Australia in the next 3 months, to 3 years? Travel, work, living… Recording to the one hour session inc a Q&A Here’s the Link: https://us02web.zoom.us/rec/share/pBJqFvN_yZVrktNsN2xWRE7heUTpr226GtyjJpiChG8yZA2D3qEHpACjm8TpMfxd.67Jj1DNSPserOvpZ Passcode: 1DPi*.$Z
Read More >Sometimes the words come to you readily and this small piece has me thinking about what I’d like to say at a time when maybe I’ve lost the cognitive ability to do so Before I was Me Before I was Me I used to be fit, and even quite smart; We’d chat about love,…
Read More >I was doing it well before then and there’s clips of me online going back as far as 2010 or so, railing against the idea of human resources as a label and the insistence by HR managers or CEOs that only people who work ‘in the office’ are going to be productive. It Is A…
Read More >Like lab grown meats, Vertical Farming is going to be part of the future of food. For now it might be best to compare them to small scale battery storage on the electrical grid that can help balance out spikes of demand in the system and provide an output directly where needed. Eventually (like…
Read More >In rental and lease markets it’s fair to say that for the best part of three decades, the landlords have been the price setters. The rules around negative gearing in domestic supply enable sizeable portfolios. Demand in office spaces in central suburbs has been consistently tight. And now, finally, CFO’s have become aware of the…
Read More >With Australia having just about wrestled Covid19 to the ground (NSW remains a bit of an issue) there’s now surging demand for PPE in the USA. The Covid19 virus is tracking toward an exponential increase and PPE Manufacturers should start looking for supply opportunities Sadly in the USA over the past week, they are adding…
Read More >The Mechanical, Psychological, and Biological Interventions of a Pandemic With Johnson and Johnson also pausing it’s #Covid19 #vaccine trial, it is becoming clearer to more of the public, that the long steady path to a vaccine is not something that can be rushed for anyone’s political agenda or preferred view of the world. We’re learning…
Read More >It seems that one way or another, Victoria is going to pop out of #Lockdown. Probably not in the way we would have hoped. And so for everyone pushing for #AfterLockdown in Victoria and for the wider society, there are two questions you must confront: One – ‘What do you feel is an acceptable level…
Read More >