Fads, such as TikTok challenges and the latest slang, may be short-lived, but they serve as valuable signposts of broader cultural shifts. They offer brands a playful and relevant way to connect with their audience. On the other hand, futures represent deeper, more profound changes that gradually transform the world and have the potential to inspire brand strategies for years to come.
Compiled by Point’s strategy director, Carla Gontier, this edition of ‘Fads and Futures’ outlines key market trends, including the rise of sustainability, the integration of AI in various industries, and the evolution of retail experiences.
Gontier expressed, ‘Understanding these trends empowers brands to make informed decisions. Embracing sustainability, leveraging technology, personalising interactions, investing in unique in-store experiences, and exploring innovative materials are crucial strategies for staying relevant and competitive. By keeping a finger on the pulse of both fads and futures, brands can navigate the ever-evolving digital landscape with confidence and foresight.’
Here are some trends, dissecting the fads from the futures from the report:
Sustainability: a dominant theme reflecting growing consumer eco-consciousness.
· Fads: ‘Conscious production’ campaigns.
· Futures: Systemic changes towards sustainable materials and practices.
Technology: tech continues to transform how we live and shop.
· Fads: AI-powered chatbots.
· Futures: AI seamlessly integrated into supply chains and everyday operations.
Experiential retail: as online shopping booms, physical stores must adapt.
· Fads: Pop-up shops.
· Futures: reimagined retail spaces that offer immersive and interactive experiences.
Sustainability Fad: The Rise In Conscious Production
As consumer awareness about the environmental impact of mass consumerism grows, the demand for sustainable practices is reshaping the market. Fast fashion, fossil fuels and waste reduction are at the forefront of this shift. Major brands like Zara, H&M, L’Oreal, Selfridges, and Sainsbury’s, known for their significant influence in the retail and consumer goods sectors, lead the charge by launching innovative campaigns, programmes, products, and pop-ups focused on conscious consumption. This mainstream movement towards sustainability drives circular habits and sets a new standard for corporate responsibility.
Sustainability Future: Materials Migration
Materials migration, a term used to describe the shift from less eco-friendly materials to sustainable alternatives in manufacturing, is reshaping sustainability efforts. This strategic move has led to year-on-year carbon reduction trends. Using FSC-certified, recyclable, and recycled-content materials, brands are making more conscious decisions that have long-term positive impacts.
A prime example is Fabrick, an innovative material for retail displays. Made from repurposed recycled textiles, Fabrick addresses textile waste and produces durable bricks, creating an eco-conscious retail environment. Combining strength and sustainability, Fabrick is set to upgrade materials in retail, aligning with environmental stewardship goals.
Technology Fad: AI-Powered Chatbots
While AI chatbots offer 24/7 service and handle simple tasks efficiently, their limitations in understanding complex requests, lack of human touch, and potential privacy concerns can make them feel impersonal and fad-like. However, they can also significantly reduce customer service costs and improve response times, making them a popular choice for many businesses.
Technology Future: AI In The Supply Chain
Brands and retailers are increasingly turning to AI to transform their supply chains. Large Language Modelling and Generative AI enable them to predict consumer behaviour, personalise offers, optimise demand planning, and enhance inventory control. This AI-powered approach also leads to improved media targeting and advertising, delivering highly relevant products, deals, and promotions to consumers based on their first-party data. Fujitsu and L’Oreal used AI in demand planning. L’Oreal has had its Modiface for several years in virtually trying on make-up on Amazon.
Technology Future: Operation AI
Operation AI, a term used to describe the integration of AI into various operational processes, is reshaping how businesses operate. Nestlé and PepsiCo are transforming their operations with AI technology. Nestlé is harnessing AI to forecast demand and optimise stock levels, ensuring product availability while minimising waste.
Meanwhile, PepsiCo is deploying AI-driven logistics systems to streamline delivery routes, significantly enhancing supply chain efficiency and cutting costs. These advancements mark a new operational excellence and sustainability era for global brands. In the UAE, Barakat, a fresh produce company, has AI-powered fraud detection systems to identify and prevent suspicious online transactions. Almarai, a dairy company in Saudi Arabia, is exploring pilot projects for AI-powered robotic milk delivery to further automate and improve their logistics operations.
Experiential Retail Fad: Pop-Up Shops
While trendy and exciting, pop-up shops can be seen as a fad. The novelty of the temporary experience can wear off, and the limited reach and capacity of individual pop-ups might not be sustainable for long-term brand building. Additionally, the reliance on creating a unique and engaging experience can be challenging to maintain, potentially leading to repetitive or unoriginal pop-ups.
Experiential Retail Future: Reimagined Retail Spaces That Offer Immersive And Interactive Experiences
Amid the rise of ecommerce, physical stores are innovating to attract customers. Retailers are introducing interactive elements and personalised services to enhance the shopping experience. Carrefour, a global retail chain in the UAE, has launched ‘Dine & Play’ stores featuring in-store restaurants, play areas, and entertainment zones, creating a family-friendly destination beyond just grocery shopping. Meanwhile, Noon, an ecommerce platform in Saudi Arabia, has introduced ‘Scan & Pay’ technology, allowing customers to scan and pay for groceries directly from their phones, reducing checkout queues and offering a seamless shopping experience. These changes aim to merge the convenience of online shopping with the unique benefits of in-person experiences, making stores more dynamic and engaging.
Understanding the interplay between fleeting fads and enduring futures is crucial for brands aiming to stay competitive. Download the full ‘Fads & Futures’ report here.
POINT
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