Audience Insights Data Shows These Are the Key Trends for Brands to Keep in Mind in 2023
Following consumer discussions, surveys and data collected all around the world, GWI, the audience insights company, has compiled a list of anticipated trends for 2023.
GWI consumer trends manager Laura Connell told WWD a significant trend as we enter 2023 is an overarching goal for simplicity.
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“As we enter 2023 with a tough economic outlook, value for money and a more modest mentality is going to impact all areas of American life — even in the workplace,” said Connell. “Striving for simplicity has led some to make big changes in their working life and time away from traditional working environments has allowed workers to explore other options.”
Connell said that the number of people who work while on the road or while traveling has increased 38 percent since Q3 2021, indicating that “the search for a simpler life is as much a cultural trend as it is an economic one.”
One trend being examined by GWI looks at the American dream vs. reality, with research showing that Americans are currently reporting they are unhappier than ever. Only 19 percent of American consumers reported being happy, representing a 50-year low as concerns over cost of living and security continue, according to the General Social Survey.
“Americans are dealing with a lot coming out of the pandemic,” said Connell. “In early 2021, when lockdown restrictions were beginning to ease, U.S. consumers were feeling hopeful. Thirty-seven percent thought that the economy would get better, but as the cost of living continues to rise, today that number has decreased to 18 percent. Combine this with rising concerns about gun violence, geopolitical tensions and tax increases, Americans are feeling less than optimistic. Fifteen percent of U.S. consumers say they’re never satisfied with their life, and this is one of the fastest-growing consumer sentiments in the U.S.”
There are implications for retailers, Connell contends.
“Many [consumers] will continue to look for a positive distraction, especially after the peak Black Friday/Cyber Monday spending this year,” said Connell. “But our data shows that Americans are less concerned about showing off. When times are hard, status symbols change. This is key for brands to understand in 2023, especially in luxury and premium sectors. Since mid-2021 there’s been an 8 percent drop in the number of Americans who want brands to be ‘exclusive.’ In 2023, with economic concerns looking to continue, we can expect consumers to further reprioritize what, when, and how much they buy — as well as how they choose to find catharsis from the world, impacting things like music choices and travel.”
Another key finding in GWI’s research is that there is a growing distrust among consumers, especially toward the media, with misinformation and overexposure still rampant. According to its research, consumer distrust in U.S. media has grown 17 percent since Q2 2020, while trust in the news has dropped by 14 percent.
From Twitter controversy to the presidential campaign season, GWI tells WWD, “we can expect increased distrust among consumers, with Baby Boomers the most skeptical and Millennials the most trusting.”
Continued distrust should be expected, Connell said, but GWI’s data shows that corporations are still currently trusted more than the government.
“If brands are able to do positive things when politicians can’t, it may help break through the noise,” said Connell. “Information and media coverage of sustainability is a good example of this. Consumers have grown tired of empty promises and over a third in the U.S. would be discouraged from buying from a brand if they made false sustainability or environmental claims.”
As consumers lose confidence, she said, “brands that build trust with their customers will become a much safer bet. As businesses increasingly compete on price, retailers that look set to stand out are those that will prioritize building trust, keep innovating and drive empathetic, value-add messaging.”
To that end, GWI’s data indicates that social responsibility is no longer an indicator, meaning that while corporate social responsibility continues to be important to U.S. shoppers, it’s not a top priority as cost concerns grow.
However, “brand blunders” continue to show that reduced consumer prioritization doesn’t mean companies are devoid of social responsibility, authenticity and inspiration. Rather, it indicates that brands will need to adjust how they communicate with consumers and their appetite for risk amid ever-growing competition.
“Being socially responsible is the fastest-falling brand initiative for U.S. consumers since 2020, but this doesn’t mean it’s not a priority, just that only 36 percent believe progress is being made,” said Connell. “The last two years have been emotionally charged and challenging, and that’s begun to take a toll. U.S. consumers want brands to shift their efforts toward education, assistance and action. The overturning of Roe v. Wade is a good example of this. The most important consumer priority in response to the decision was for brands to offer paid leave for women’s health issues, and the least important was to post supportive messages on social media.”
She said 2023 “is going to be about how brands navigate their awareness of consumers’ collective headspace and focusing on what consumers really want — meaningful action communicated when it’s achieved clear results.”
Connell tells WWD that to navigate the climate, brands should be about “less talk and more action.” While seemingly obvious, these actions are top of mind for the U.S. consumer. Sixty-two percent of consumers reported caring about the impact of social justice issues.
“The key word here is impact,” said Connell. “Brands will need to continue adjusting how they communicate with consumers and thoroughly consider a multitude of factors, whether that’s the tone of an ad campaign, diverse representation in their media, or which celebrities or influencers they choose to endorse their products. The spotlight is not only on products and communication but how brands treat their workers too — 47 percent of Americans say the poor treatment of staff would discourage them from buying from a brand.”
When considering communication strategies in the new year, GWI also highlights the need for brands to use BeReal and social media for Gen-Z consumers. While 76 percent of consumers say they have never heard of BeReal, data shows that it has gained as many users as Tumblr and Telegram. The platform is notably known for its transparency with 34 percent of U.S. consumers saying it is easy to use and 31 percent reporting they believe it is “fun.”
“Americans are now much less focused on being trend-focused and they’re less concerned with showing off,” said Connell. “With TikTok and Instagram becoming key for brand discovery and product research among younger generations, the number of product searches via social media has risen by 43 percent since 2015, and globally Gen Z are more likely to say they use social media than search engines to find product information. Brands can use social platforms like TikTok as sources of inspiration, moving marketing capital out of typical outlets and refocusing on these popular social media outlets to make products more relatable.”
GWI’s data shows that the number of Gen Z who use social media to find inspiration is up by 12 percent, year over year. And with the emergence of social media platforms like BeReal, there is a fueling of change in online expectations as the apps pave the way for more inspirational content instead of aspirational content. Brands and influencers, said Connell, will benefit from sharing more genuine, filterless posts.
