Visa

Mobile shopping is becoming an increasingly mainstream habit. In the U.S., smartphones now account for a quarter of visits to e-commerce sites, up from 18% in 2013, Business Insider reports. In the APAC region, Frost & Sullivan expects mobile commerce to grow from a $76 billion market in 2013 to $153 billion in 2017. And InMobi predicted in February that 83% of global consumers with mobile devices will make a purchase through their device in the next year. Recent research from GlobalWebIndex breaks down where Internet users are most apt to use phones to shop (China is No. 1) and where they’re most apt to use tablets (China again).

In emerging markets like China, many shoppers are leapfrogging PCs and using mobile as their primary device to access the Internet. At the same time, mobile penetration continues to increase (indeed, there were 96 mobile subscriptions for every 100 people on earth in 2013).

Brands are increasingly focused on ways to make mobile transactions more seamless. The Starbucks app will soon give users the ability to order and pay with their mobile devices. The Visa Checkout app will allow consumers to complete debit and credit transactions without leaving vendor apps. Both Twitter and Facebook are exploring ways to make in-platform purchases easier. At the same time, basic tools like texts are also effective. According to James Van Arsdale III, director of UX for WebLinc, text messages lead to more sales than emails among younger consumers.

Image credit: Visa

Virtual dressing rooms have been around for a long while, but early technology struggled to meet consumer expectations, and many initial attempts faded. Today, however, virtual dressing is enjoying a renaissance thanks to new technologies—including augmented reality and 3D modeling—and better use of consumer data. The new models go beyond simply building body replicas and follow a “fit and flatter” ethos.

The current wave of virtual dressing adds clothing dimensions, personal preference and crowdsourced data to traditional fit models, as USA Today reports. Banks of data about consumers with similar body types, preferences or personalities can mean more satisfied outcomes, notes Internet Retailer. And Fortune reports that companies like Fitbay (“a clothes discovery service personalized to your unique shape and size”)can offer online retailers data such as which brands are most favored by people with specific body types.

The reimagination of virtual dressing rooms is driven by the ongoing upswing in e-commerce and the expense of returns that retailers must bear. Return rates average 20 to 30 percent for online apparel retailers compared with less than 10 percent on average for hard goods, as Internet Retailer notes.

Expect a continued push for virtual dressing as technology evolves further. eBay recently bought 3D visualization and simulation company PhiSix. Video game technology may also play a role; in Japan, clothing brand Urban Research uses Microsoft Kinect for virtual pop-up dressing rooms. And retailers could adapt the virtual reality headgear Oculus Rift in interesting ways, as an in-store Tesco experiment demonstrates.

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Multigenerational households continue to grow, a trend we termed More Under One Roof in our Things to Watch in 2009, as the recession was getting well under way. New research from the Pew Research Center shows that 18 percent of the U.S. population lived in a multigenerational household as of 2012, up 50 percent from 1980. That translates into 57 million Americans in these households, almost twice as many as was the case in 1980.

A key driver of the trend is Millennials, who are continuing to grapple with the effects of the recession but also tend to regard parents as friends (“peerents”). According to Pew, almost 24 percent of adults 25 to 34 live with multiple generations, up from 11 percent in 1980, and more Millennials than seniors (ages 85 and older) now live in multigenerational households. This trend has significant ripple effects in the economy as so many members of this generation delay adulthood and the traditional milestones of getting married, buying a house and having children, as USA Today notes. As they do so, we’re seeing the social normalization of living with one’s parents into adulthood.

Read our roundups in magazine form on Flipboard, via the iOS and Android app or online; click here to find our magazine collection.

-By 2030, the world’s mega-cities will be located mainly in Asia and Africa, according to a new U.N. report, as outlined in Quartz.

-Bloomberg reports on Pew Research finding a continued increase in multi-generational American households thanks to Millennials remaining at home for longer.

-National Geographic chronicles the changing face of hunger in the U.S.

-McKinsey discusses the rise of digital banking in Europe, along with how and why retail banks need to move aggressively.

-Savvy, selective, budget-minded Millennials are still shopping offline, but in new ways, The Dallas Morning News reports.

-A Kantar report charts the explosion of the market for “free from” food in the U.K. as the “worried well” embrace these products, reports The Telegraph.

-The New York Times examines the rise of the “Nice Internet” and the profitability of uplifting content.

-Nielsen Social looks at social brand ambassadors, with stats on influencers and their importance to brands.

-New York examines the smartwatch hype and their potential to catch on with consumers. Some smartwatch brands are betting that the kids market will drive the category, notes Bloomberg.

-As Boston.com reports, a study on “hook-up culture” finds that Millennials are no more promiscuous than older generations. Time spotlights research finding that young men desire intimacy above sex.

Continue reading “Weekly Roundup: Future mega-cities, the ‘nice Internet’ and nudity” »

 

 

Worldpridelogo

Many consumers not only approve of brands backing LGBT causes and consumers—as JWT’s April study for Buzzfeed showed—but in some cases feel especially supportive of brands that do so. As a recent JWT Canada study found, LGBT support can also inspire patriotic sentiments. In advance of Toronto’s massive WorldPride celebration in late June, 81 percent of respondents said they were glad to live in a country where people can participate in an event like WorldPride, and more than half (54 percent) agreed that hosting WorldPride made them feel more proud to be a Canadian. Support was especially high among Millennials (85 percent and 69 percent agreed, respectively).

As part of WorldPride, JWT Canada also created a Twitter-powered flag on behalf of ShantyTown Inc. and Toronto PFLAG. Stationed above a popular pub in Toronto, the flag was raised higher when Twitter users wrote LGBT-positive tweets and sunk lower with expressions of intolerance. The #RaisethePride initiative produced 5.2 million social media impressions, with 6 percent of Twitter conversations in Toronto centered around the installation. In this case, LGBT pride was contagious, generating a ripple effect of positive emotions.

Image credit: WorldPride

Kyle WiensLaunched out of Wiens’ college dorm room in 2003, iFixit is akin to a Wikipedia for information on repairing electronics, appliances, vehicles and more. Wiens also launched Dozuki, in 2012, which focuses on documentation software. We talked to him while researching our trend report on the circular economy, an alternative, more sustainable economic model whose principles include keeping goods in circulation for as long as possible rather than tossing them into landfills. Wiens discussed why brands should get more proactive about helping consumers fix their products, which brands are doing so and which consumers are most interested in making their own repairs.

What was the inspiration to create iFixit?

I was just trying to fix my computer. I was a student, and I wasn’t able to afford a new computer. I had dropped my laptop on the power plug; I knew it was just a loose connection—if I could take it apart and just put a drop of solder on the connection, it would be fine. I was looking around on the Internet for how to open the computer, and I couldn’t find any information anywhere. I got it fixed, but it was never perfect again.

It turns out most repairs are like that. Once you’ve done it once or twice, it’s easy, but the first time is difficult. We decided to take some pictures of the process and put them online for our own satisfaction, just because we were annoyed at how hard it was. We had 10,000 hits the first weekend. It turned out there was a lot of pent-up demand, because it was something the manufacturers just weren’t doing.

To frame it in a circular economy context, there are oftentimes circular opportunities around products that the manufacturers don’t realize, maybe because they’re not entrepreneurial enough internally. Maybe it’s just an opportunity that hasn’t gotten big enough for them to choose to take advantage of it. And in this case, the manufacturers have left a gaping hole in the market.

In order to have a repair economy work, the person doing the repair—whether it is the consumer or repair technician—needs three things. They need the knowledge of how to do the repair, they need the tools to get in and open the product up, and then they need replacement parts. iFixit provides all three of those. So if you break your iPhone and need to repair it, we provide you with a replacement screen; it comes in a kit with the tools you need, and then the instructions are free on the web or in an app. We make it really easy to go through and do the repair. Continue reading “Q&A with Kyle Wiens, co-founder and CEO, iFixit” »

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The mobile wallet, as we noted in May, has been slow to gain traction in the U.S., although that may change as Apple and other key players show greater interest. But among consumers who use mobile payment technology, the habit is a popular one, according to Nielsen’s Q2 2014 Mobile Wallet Report. Some 40 percent of mobile wallet users say mobile is now their primary mode of payment. Not surprisingly, most of these mobile wallet fans are young (55 percent are 18-34), but they span income levels.

As this Nielsen chart shows, mobile payments take an array of forms. With a smartphone, the most common method is to display a QR code or barcode that cashiers can scan, followed by tap-to-pay using NFC. Paying peers with services like Venmo, which almost a quarter of mobile payers are doing, helps ease social awkwardness and reduce tension around splitting a bill, Nielsen notes.

The key to converting more people to mobile wallets may be reward and loyalty programs. Nielsen reports that 69 percent of consumers would be willing to switch to mobile payment methods if they were to get discounts for doing so. The same percentage would convert if their rewards programs were integreated with their mobile wallets, allowing immediate redemption of points. Euromonitor and Yankee Group have found similar results, as Mobile Payments Today observes.

Read our roundups in magazine form on Flipboard, via the iOS and Android app or online; click here to find our magazine collection.

Due to Independence Day office closures, this roundup covers the past two weeks.

-The OECD released its predictions for the world economy through 2060, forecasting slowed growth and greater inequality. As The Guardian reports, “The best of capitalism is over.”

-To celebrate its 125th anniversary, The Wall Street Journal features essays from a range of big names writing on the future of their industry.

-WPP’s Sir Martin Sorrell spotlights 10 trends influencing the global advertising business.

-JWT Head of Digital Worldwide Stefano Zunino explains the 10 biggest trends in digital technology in Latin America.

-Nielsen blogs about global macro trends discussed at the Aspen Ideas Festival.

-GlobalWebIndex’s GWI Brand study looks at consumer and brand behavior in 32 markets, analyzing digital behaviors around brands and consumption.

-The New Yorker explores whether luxury brands can have both mass appeal and exclusivity.

-According to The New York Times, big data isn’t only for big business.

-A new Forrester report covered by Adweek and The Wall Street Journal explores the potential for advertisers when it comes to global messaging apps.

-The New York Times explains why email newsletters are more popular than ever.

Continue reading “Weekly Roundup: Vamping, neglected Gen X and meme culture” »

Jamie ButterworthJamie Butterworth has worked with the Ellen MacArthur Foundation since the initial launch of the 5-year-old nonprofit, which aims to accelerate a transition toward the circular economy. In November, he plans to leave the foundation to set up a complementary venture tied to the circular economy. We spoke with Butterworth while researching our new trend report, which explores what the circular economy is and how brands are adopting its principles. He discussed why businesses are becoming more interested in this alternative economic model, some companies that are role models in this realm and what’s next for the circular economy.

How would you describe the circular economy in layman’s terms?

I would start by looking at the linear economy. In today’s economy, we tend to take something out of the ground, make that into something, take that something into a market, and at the end of its life, we throw that something away. We use a large quantity of resources to make that happen. We’re beginning to see increasing constraint on energy costs, and the circular economy is effectively a way by which businesses can begin to decouple future economic growth from resource constraints.

What are the social drivers and business incentives for the shift to the circular economy?

We see a number of elements that are causing the shift. The first one is economics. Between 1900 and 2002, we saw a century’s worth of price declines as we got better at extracting and processing materials in the economy and energy. In the decade between 2002 and 2012, however, we saw that century’s worth of savings effectively erased, so we’re beginning to see much more volatile commodity and energy prices.

Secondly, we’re seeing a different type of consumer, who is interested in different ownership and business models. We’ve seen many of these spring up in the last few years, like Airbnb or Zipcar. Others have been around for quite some time, but these are all successful models by which we begin to shift from ownership towards access or performance of products.

The third is, we’re beginning to see some increased legislation around topics such as toxicity levels in different materials or landfill taxes, recycling targets.

Continue reading “Q&A with Jamie Butterworth, CEO, Ellen MacArthur Foundation” »

Our latest trend report takes a deep dive into the myriad ways businesses are transitioning to a circular economy, an alternative model that seeks to create a system that’s regenerative by intention. In the food industry, reducing waste is one of the key ways to create a more circular system. Currently an estimated 1.3 billion tons of food is wasted annually around the world, an issue that has steadily gained attention over the past few years (Curbing Food Waste was among our 100 Things to Watch in 2012).

Governments are placing greater pressure on businesses to address food waste. The European Commission has put forward a proposal to reduce food waste as much as 30 percent by 2025 as part of an effort to transition to a more circular economy. And more U.S. states are passing laws that require hospitals, supermarkets and other establishments to separate and recycle food scraps from other waste. In Massachusetts, businesses that produce more than one ton of food waste a week will be banned from sending it to landfills as of October.

Across the EU, businesses are tackling the issue in myriad ways. A new certification in Denmark, backed by Unilever Food Solutions, among others, indicates that a food-producing establishment has implemented at least three waste-reducing initiatives and recycles its food waste. So far 100 establishments have signed up. In the U.K., Sainsbury’s (which has been campaigning to reduce food waste for some time) and Google have introduced an app, Food Rescue, that helps people create recipes using ingredients that would otherwise have gone to waste. The app also aims to bring communities together to cut waste and shows how much food has been rescued at the city and country level.

With more companies seeking alternatives to sending their food waste to landfills, new business opportunities are opening up. H.J. Heinz Co. may profit from the discarded peels, stems and seeds of the tomatoes it uses to make ketchup thanks to a new partnership with Ford, which is researching ways that tomato fibers could be used to create sustainable material for car components. And EcoScraps is a four-year-old American company that collects waste from restaurants, schools, supermarkets and elsewhere, creating garden products rich in organic nutrients. Last year the company struck its first nationwide distribution deal, with Target.

While the transition to a more circular food system will be slow—requiring the development of new recycling and reverse-logistics operations, and a different mindset among consumers as well—watch for more examples of food companies coming up with creative solutions for curbing rampant waste.

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Things to Watch

  • Chinese mega-cities
    July 24, 2014 | 1:15 pm

    Tianjin

    China, home to the world’s second largest rural population, is expected to add close to 300 million more urbanites by 2030, when Shanghai and Beijing will likely account for two of the world’s Top 5 mega-cities, according to new UN research. “We are observing one of the most significant economic transformations the world has seen: 21st-century China is urbanizing on a scale 100 times that seen in 19th-century Britain and at 10 times the speed,” notes a new McKinsey paper on cities and luxury markets. China’s wealth will be concentrated in these urban areas: Over the next decade, McKinsey expects Beijing, Tianjin, Guangzhou, Chongqing and Shenzhen, in addition to Hong Kong, to join the list of “top luxury cities.” —Marian Berelowitz

    Image credit: Jakob Montrasio

  • Brands + Google Glass
    July 15, 2014 | 6:09 pm

    SPG

    As Google Glass makes its way into the hands of more people (last month it became available in the U.K.), brands are experimenting with the new possibilities that the platform affords. In March, Kenneth Cole became the first to launch a marketing campaign—the “Man Up for Mankind Challenge”—through a Glass app. Users were challenged to perform and document good deeds for the chance to win a prize.

    Starwood’s new Glass app, billed as the first such app from the hospitality sector, lets people voice-search its properties, view photos and amenities, get directions and book rooms. An array of other marketers have turned out apps for early adopters, from Sherman Williams’ ColorSnap Glass (easily create a paint chip that mirrors anything in view) to Fidelity (delivers daily market quotes for Glass wearers). —Tony Oblen

    Image credit: SPG

  • Ugly produce
    July 10, 2014 | 2:45 pm

    Intermarche

    Ugly Produce, on our list of 100 Things to Watch in 2014, is proliferating in Europe, thanks in part to government efforts to reduce the 89 million tons of food wasted in Europe each year. In France, Intermarché has been getting buzz for creating a produce section dedicated to “Inglorious Fruits and Vegetables”; a whimsical ad campaign reportedly drove a 24 percent rise in store traffic.

    U.K. supermarket Waitrose recently began selling packs of tomatoes that are misshapen or have fallen off the vine naturally. And in Portugal, Fruta Feia (“Ugly Fruit”) is a cooperative launched in late 2013 that sells unsightly produce that would have gone to waste. Per The New York Times, the group already has a waiting list of 1,000 customers. In line with one of our 10 Trends for 2014, Proudly Imperfect, watch for ugly produce to catch on with both retailers and shoppers. —Jessica Vaughn

    Image credit: Intermarché

  • The $1.25 Cube
    July 3, 2014 | 12:30 pm

    As we outline in Immersive Experiences, one of our 10 Trends for 2014 and Beyond, entertainment and narratives are becoming more enveloping in a bid to capture consumers’ imagination and attention. An immersive project from JWT Israel, a winner of the Cannes Chimera challenge, aims to help people experience what it’s like to live in extreme poverty. Once it’s created, the cube will create a multisensory experience that uses tools like augmented reality to simulate sights, sounds and smells and elicit certain feelings. Participants can exit only when the person in line behind them inserts $1.25, a metaphor for the collaborative efforts needed to fight poverty. The aim is for the cube to travel to international events like the Davos conference in order to influence global leaders. —Hallie Steiner

    Image credit: JWT Israel

  • Google’s Android Auto
    June 26, 2014 | 3:00 pm

     

    Android

    The connected car is rapidly becoming a reality. Fast 4G LTE connections are turning vehicles into hot spots that come with a data plan, while Apple’s iOS and Google’s Android are making their way onto dashboards. This week Google introduced Android Auto, with the first compatible cars expected by year-end. Apple’s similar CarPlay, which turns the car into a platform for an iPhone’s content, was announced in March and is included in new Ferrari, Mercedes-Benz and Volvo models.

    Car-based app ecosystems will provide relevant info (traffic, maps, vehicle diagnostics, restaurant suggestions) and entertainment, combined with safety precautions like voice control. As we outline in our mobile trends report, connected cars—complete with Internet hot spots, a suite of apps and sensors that communicate—will eventually link up with drivers’ homes, mobile devices and other gadgets to form a seamless system. —Marian Berelowitz

    Image credit: Android

  • American Eagle Outfitters’ recycling boxes
    June 19, 2014 | 3:45 pm

    American Eagle

    In a bid to create a more closed-loop production cycle, retailers including Puma and H&M are partnering with I:CO, a Swiss reuse and recycling firm that sets up collection points in stores for used clothing and shoes. The latest retailer to link up with I:CO is American Eagle Outfitters, which has added collection boxes in all its North American stores. Customers who participate in the “Live Your Life. Save Your Planet” initiative get a $5 credit toward AEO jeans. Any proceeds gleaned from the program will be donated to the Student Conservation Association.

    “The vision is for all products to be designed with future uses in mind, so materials can be 100% reused in a truly endless cycle,” explains a post from I:CO on American Eagle’s blog. An array of brands are taking steps toward a similar vision, as detailed in our upcoming report on the circular economy. —Marian Berelowitz

    Image credit: American Eagle Outfitters

  • Marriott’s #LoveTravels
    June 11, 2014 | 1:45 pm

    Americans are now largely open to seeing LGBT characters or couples in ads, as recent JWT research confirmed, and thus “advertising is coming out of the closet, with visible and innovative LGBT Pride campaigns from a diverse range of brands,” writes GLAAD’s Rich Ferraro in Brandchannel. One of the more notable campaigns this Pride month is Marriott’s #LoveTravels, featuring portraits of people including gay NBA player Jason Collins, transgender model Geena Rocera and two dads with their kids. The campaign includes print and display ads and building wraps at five Washington, DC, hotels; a microsite details the individual stories.

    “This is one of the most diverse and inclusive campaigns to have ever run in mainstream advertising,” writes Ferraro. Meanwhile, rival Hilton has revamped its LGBT-focused site and is hosting a wedding reception at the Beverly Hilton for the co-plaintiffs in California’s Proposition 8 gay-marriage court case. —Marian Berelowitz

  • Vogue’s shoppable Instagram
    June 4, 2014 | 2:36 pm

    As we outline in Everything Is Retail, one of our 10 Trends for 2013 and Beyond, shopping is shifting from an activity that takes place in physical stores or online to a value exchange that can play out in multiple new and novel ways. Instagram, a platform ripe with potential, is among those new ways. Vogue’s Instagram feed is now shoppable for consumers who have signed up with rewardStyle’s Like to Know service; liking certain images triggers an email with instructions on how to buy featured items.

    RewardStyle tells DigiDay that more magazines will be signing up shortly. Other firms helping brands monetize Instagram include Soldsie and Hashbag. —Marian Berelowitz

  • Ethically sourced electronics
    May 29, 2014 | 10:45 am

    Last year’s launch of Fairphone, an ethically sourced and produced mobile phone, put a spotlight on the raw materials in our digital devices. Currently taking orders for a second batch of 35,000 phones, the Dutch company ensures that minerals come from conflict-free areas so they’re not helping to fund armed groups. Now a two-minute spot from Intel showcases the company’s commitment to using conflict-free minerals in its microprocessors. Intel’s website delves into the issue, and CEO Brian Krzanich also spoke on the topic at this year’s CES.

    Alongside sourcing sits labor issues, another ethical consideration that Fairphone addresses. Expect more tech companies to start improving their track record when it comes to how their products are made. —Will Palley

  • ‘Look Up’ and the ‘Heads-Up Movement’
    May 20, 2014 | 3:45 pm

    As noted in our new mobile trends report, people are developing a love-hate relationship with our phones. We’ll see a “heads-up movement”—something we forecast in our 100 Things to Watch for 2014—as people try to become better attuned to their real-life environment. The video “Look Up” from Gary Turk, a British writer-director, dovetails perfectly with this idea, with lines like “Look up from your phone, shut down the display, take in your surroundings and make the most of your day.”

    After its release in late April, “Look Up” quickly went viral; it’s now accumulated some 38 million views, approaching the numbers racked up by last year’s similarly themed “I Forgot My Phone,” and inspired a few parodies. —Marian Berelowitz

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