TrendSights Analysis: Personalization - Providing a superior and more unique fit for specific consumer segments
Specialized and differentiated products are being introduced in order to optimally cater for different age, gender, and ethnic groups, as well as the lifestyle benefits sought by more demanding consumers. Personalization facilitates differentiation and uniqueness by creating a product that is perceived as being more closely aligned with individual consumer needs.
By increasing product relevance this can enhance engagement and create more involved buying behavior. It can also lead to higher consumer satisfaction at a time when preferences are becoming stronger and more forcefully expressed. Companies can command a price premium and, at the same time, be rewarded with greater loyalty.
- Informed consumers: Consumers are more aware than ever of their specific needs and requirements, seeking products to address them.
- Individualism: Consumers want to express themselves resulting in more choices being related to identity and lifestyle.
- Desire for efficacy: The idea that personalized solutions can result in more effective results and better address specific concerns.
Consumers are seeking more complex solutions by which to meet their needs across their entire lifestyles, from diet through to beauty, through to the products they use to clean their home. With today’s consumers being more aware and informed of their individual needs than ever, the pressure is on for brands to better resonate with consumers in more meaningful and relevant ways on an individualized and personal level. Brands that can effectively do this are likely to gain favor among these “individual-centric” consumers.
Brands should consider updating traditional personalization approaches, such as by demographic, through combining lifestyle cues alongside conventional segmentation. Explore the use of technology such as apps and devices in order to provide a more personalized service to customers through tracking usage patterns and needs and suggesting products which can meet them from existing portfolios. Specific functional concerns and preferences such as diet and health remain key issues by which brands can personalize their offerings to better meet consumer needs.
The report TrendSights Analysis: Personalization is a TrendSights series and explores how brands can provide a superior and more unique fit for specific consumer segments.
Companies mentioned in this report: Kashi, Seeds of Change, Gippsland Dairy, You've Dalandan it Again, Temple Turmeric, Ice Break, Garnier, Eucerin, Bulldog Skincare, Glenfiddich, 123 Tequila, The Respect Co., Aekyung Trio, Farmers Market.Scope
Reasons to buy
- 43% of consumers globally have a more favorable perception of products featuring claims personalized to their needs.
- Personalization benefits rank among the top 10 factors that would encourage consumers to buy luxury/premium products.
- Brands should consider updating traditional personalization approaches, such as by demographic, through combining lifestyle cues alongside conventional segmentation.
- Gain insight into the different routes through by which products can align with the Personalization trend, including examples of best-in-class innovation.
- Compare the presence of this trend in each industry across the FMCG space, and learn what the key opportunities are.
- Identify the innovation implications of personalization for your sector.
- Content to help you learn from the past, understand the present, and see the future
- Executive Summary
- Tailoring products to provide more relevant solutions
- Personalization crosses over with two TrendSights trends
- Personalization is one of the 63 trends in GlobalData's TrendSights framework
- Personalization reflects the desire for more tailored offerings
- Personalization is essentially a route to mass customization
- The mega-trends aligning with Personalization significantly influence the FMCG space
- Targeting consumer segments through identification of specific demographic, lifestyle, and functional needs and preferences
- This trend is shaped by a number of drivers and inhibitors
- Personalization has significant relevance across the majority of FMCG sectors
- Personalization is intrinsically linked to a number of trends across GlobalData's TrendSights framework
- There are three key themes by which brands can personalize their offerings
- Demographic segmentation remains a core way by which brands can personalize their products
- Linked to demographics is also life stage which can have a significant impact on consumption choices
- Innovation snapshot: personalization through demographic and life stage positioning (1)
- Innovation snapshot: personalization through demographic and life stage positioning (2)
- Lifestyle alignment taps into the needs of increasingly diverse and individualistic consumers
- Different lifestyle occasions create unique needs for consumers as their consumption choices change to fit that specific moment
- Aligned with consumer lifestyles is the interest in offering personalized solutions based upon their location and cultural nuances
- Innovation snapshot: personalization through individuality and the lifestyles they lead (1)
- Innovation snapshot: personalization through individuality and the lifestyles they lead (2)
- Consumers are seeking out products which can align with their functional requirements, particularly for wellness and wellbeing oriented consumers
- Diet plays a significant role in personalizing products to meet consumer preferences given its central nature to consumer lifestyles
- The wide range of concerns across both health and beauty create important opportunities for personalized solutions which can address them, as well as potential areas of concern in future
- Innovation snapshot: personalization through aligning with functional requirements
- Technology is playing an increasingly valuable role within the personalization process and is a key consideration for FMCG brands seeking to tap into this trend
- Innovation snapshot: harnessing tech to enhance the personalization credentials
- Trend implications across FMCG sectors
- Growth prospects for the Personalization trend
- Future considerations and implications for this trend