TOP 10 CONSUMER TRENDS FOR 2013 Euromonitor International 13 February 2013

In 2013, spending on convenience is nudging into the quest for value while consumers are increasingly moved by

things local. Dominant current consumer trends include the passion for eating and knowing more about food as a

leisure activity, and an invigorated segment of mature working consumers. Living arrangements and lifestyles see

different generations interacting more and most leisure activity is 'connected' while shopping has some tech elements

too. A more gender-neutral form of consumption is emerging. Meanwhile, the power of particular consumer niches

is entrenching, with brands trying to mirror and target those new segments.

Which consumer trends do Euromonitor International think will reign around the world in 2013?

2. SPENDING ON CONVENIENCE NUDGING INTO THE QUEST FOR VALUE

3. CROWDED HOUSE REDUX

4. DOWNTIME DECODED

5. FOOD – MORE THAN A LIFE STAPLE

6. GENDERED CONSUMPTION RIP?

7. LOCAL LOVE

8. OLDER AND OFF TO WORK AND TRAIN

9. PARENTING LIFESTYLES

10. SHOPPING LIKE IT'S THE FUTURE

11. THE ROLL CALL OF CONSUMER CONCERNS – CONSUMERS RESEGMENTING Download a PowerPoint presentation of Euromonitor International's Top 10 Consumer Trends for 2013 <a

href="http://www.portal.euromonitor.com/portal/presentations/Top Ten Consumer Trends for 2013.pptx"

target="_blank">here</a>.

1. SPENDING ON CONVENIENCE NUDGING INTO THE QUEST FOR VALUE: The recessionary consumer's dislike of paying for convenience is softening. Consumers are tempted by bite-sized brand offerings aimed at emerging and now developed market shoppers and greater novelty and superior niche services. The popularity of consumer reviews is also cutting the risk of trying something new.

Convenience nudging into thrift Prolonged tightened budgets and continued economic instability mean that thrift is still part of daily life for millions

of consumers. Money jitters continue to chip away at consumer loyalty to brands even those that stand out with

better customer service and transparency.

However, while the quest for value is ever present – consumers that can or have to, are willing to spend on

convenience. Rather counter intuitively, this trend is linked to the economic downturn. While consumers have

slimmer wallets, millions of workers have been coping with the crisis by working for more hours so paying for

convenience features more in their budgets as time is short. "I don't buy online because it's cheaper, I do it because

it's convenient, I'm a mother of three children," said Australian Patricia Tanks speaking to The Herald Sun

newspaper. Many office workers in Ho Chi Minh City are reluctant to leave the comfort of their air-conditioned

offices for lunch which has boosted the popularity of takeaway-ordering websites like Eat.vn and Orderfood.vn.

This pressure on time is also affecting shop layout. Global consumers are now showing a clear preference for more

compact store layouts and are less keen on out-of-town bulk purchases. “I spend a little more, but I'm in and out in

half an hour,” says a minimarket shopper in Santiago, Chile. “A growing number of consumers are prioritising other

aspects of the shopping experience ahead of price. Nowadays, time is more precious, so location is crucial,” said

Jaime Alé of Chile's Retail Trade Association.

In looking at this tension between the consumer quest for value and convenience, it is important to mention that

consumers are already changing their shopping habits in response to higher prices in an interesting and contradictory

way. They can be found buying both premium and value brands – in the UK, for instance, shopping at both Lidl and

Waitrose.

Savvy brands anticipate those spaces where time-pressed consumers may be willing to pay a little more for

convenience. For instance design that incorporates a forced activity into a daily routine. An alarm clock designed for

Fred Worldwide is dumbbell-shaped and needs to be curled 30 times in order to stop it from ringing.

A new wave of niche subscription-based services are popular in countries such as the USA and UK offering bespoke

products catering to diverse consumer groups – products such as curated ethical snacks and treats boxes.

Brands have woken up to the fact that 'dead time' at airports can be exploited – most recently in pampering and

entertainment areas.

The expansion of the thrift staple of recent years, group buying, has taken some knocks of late even though it is still

growing, particularly in emerging economies. Many shoppers are tiring of daily deals, blogging about their less-than-

welcome reception when they go to use their discount vouchers, while brands complain that couponers just flit to the

next brand offering discounts.

Chart 1 Shoppers who are Willing to Pay More for Convenience: 2011

% of respondents who agree or strongly agree

Source: Euromonitor International Annual Survey 2011

Consumers facing hardship keen on cheaper convenience Millions of formally comfortable consumers still face financial hardship. An October New York Times article

describes struggling consumer, Emmakate Paris, as a one-woman tornado whipping through the racks at the thrift

shop. She confesses to a life consumed by worries “about the kids, insurance, vacation, school, taxes, the price of

gas, everything.” Meanwhile, some refer to the Argentine middle class as “Class O” (“Class Or”), as they must make

hard choices when it comes to goods and services. Last autumn, the Greek government passed a law allowing

supermarkets to sell expired food at discounted prices while around the world, credit card debt is a growing problem.

Cheaper convenience is still being marketed to consumers struggling financially. August 2012 saw household goods

multinational, Unilever, announce that it would employ packaging and marketing lessons from its Asian division in

European markets, in response to the increasing number of households operating on tight budgets. The company is

selling Surf detergent in packets of just five sachets in Spain, for instance. In August, the head of Unilever's

European division explained why: “If a consumer in Spain only spends €17 when they go shopping, then I'm not

going to be able to sell them washing powder for half of their budget.” Even the consumer finance sector is now

selling its products in 'sachets'. Some life assurance companies in the Philippines, for instance, are selling cover at

rates of PHP1 (US$0.02) a day.

2. CROWDED HOUSE REDUX: Multigenerational and other combined living arrangements are leading to shifting consumption patterns as the 'floating generation' stay or return home to economise. Peers and even separated couples are forced to cohabit.

Homes for multi-generational life A November 2012 International Herald Tribune piece subtitled “House builders pursue a big opportunity in

multigenerational living” underlines that “Many of the big builders are now offering to accommodate the changing

shape of the American family: boomer couples with boomerang children and aging parents, an increasingly

multiethnic population with a tradition of housing three generations under one roof, and even singles who may need

to double up with siblings or friends in this fraught economic climate.”

Scott Thomas, national director of product development for PulteGroup, says that 30% of customers are asking for

multigenerational features in new housing. Lennar, one such firm, started marketing its new designs last autumn

explicitly as multigenerational. Its “Next Gen - The Home Within a Home” was billed as futuristic, even though

historians and other builders see this as a throwback to a pre-WW2 household style. Over all, more than 50 million

Americans are in multigenerational households, a 10% increase on 2007, reports the article. “What the recession has

done has really hit household formation hard, so instead of forming households we are having some contractions: the

college student moving back in or someone's brother-in-law loses a job,” said Stephen Melman, Director of

Economic Services at the National Association of Home Builders.

It is interesting to see how these living arrangements impact upon the way that technology is used in the home.

While observers have noted that technology is crossing generations, others note that youth retain control. Writer of

new book 'Sorry! The English and Their Manners', Henry Hitchings, wrote in the British Daily Telegraph newspaper

that when it comes to modern communications technology, protocol travels from young to old. Indeed, in today's

multigenerational homes, the most common scenario is the family together but interacting with separate pieces of

technology – with younger consumers often hidden in their tech-led 'media bedsits'.

Gadgets like smartphones are popular with young adults living with their parents who are looking for a way to

maintain a degree of independence. These gadgets can be passed up the family tree when they become outdated. A

pre-Christmas 2012 survey from UK mobile operator, Three, found parents receive 'hand-me-ups' for Christmas –

outdated gadgets from younger consumers – with almost half of respondents aged 18-24 giving old gadgets to

parents.

Boomerang kids, their “sandwich" generation parents and other combined living arrangements A newly-released UK-government-commissioned 'Future Identities' study is only the most recent study or article

highlighting the intensified burden on thousands more middle-aged parents forced to care both for their own frail

parents and offer a home to and financial support for adult children from the so-called “floating” or “lost”

generation” hit by the economic backdrop. Since 1997, Future Identities mentions that the number of young adults

in the UK living with their parents has risen by 20% to 3.5 million – and this is a common scenario in many

countries. According to the Central Statistical Office of Poland, 44.4% of Poles between the ages of 25 years and 34

years were living in the parental home for instance.

But these older dependants still dare to dream. For instance, a survey conducted by financial institution Caja Madrid

during autumn 2012 found that nearly 80% of those aged between 18 and 34 years and currently living with their

parents in Spain wanted to buy a home of their own. This survey found that more than half (54.4%) of this age group

were still living with their parents. Significantly, many said they enjoyed an enhanced quality of life and increased

purchasing power by living at home.

In response to an online newspaper article about adult children living at home, Amy of Aylesbury, the UK, wrote in

October 2012 in a British Daily Mail newspaper online talkback: “If I could afford to, I'd move out of my parents'

house in a heartbeat... I'm 28 and desperate to start my 'adult life' in a home of my own.”

Chart 2 World's Highest Youth Unemployment Rates: 2012

% of economically active population

Source: Euromonitor International from national statistics Note: Data refer to a ranking of 111 countries. Youth Unemployment Rate refers to the unemployed population aged 15-24

as a percentage of the economically active population of the same age.

In Australia, many families in city hubs are turning to shared houses for affordable options. The number of

Australian households shared by three or more families has increased from nearly 30,000 to nearly 50,000, in the last

five years, according to the Australian Bureau of Statistics. A host of articles such as Le Monde's 'Living Together

Apart: When Divorce Makes It Too Expensive To Move Out' have highlighted the difficulties of cohabiting once

separated.

Greater intergenerational interaction for 2013 Evidence of enhanced relationships is everywhere. At the January 2013 Pitti Uomo men's fashion fair in Italy,

designer Brunello Cucinelli featured photographic backgrounds showing different generations interacting –

grandparents and grandchildren. ”I want people to think about the family liaisons,” said Cucinelli. In our post-

recessionary landscape this is a common preoccupation. Ageing populations call for intergenerational support. For

instance, the Netherlands' junior health minister recently warned that pressure on government spending means that

families will have to play a greater role in the provision of healthcare.

At Israel's Design Museum of Holon, “workshops for people of all ages [grandparents and grandchildren]” are being

held. Research published at the start of 2013 by Skipton Building Society in the UK, credits grandparents for coming

to the rescue of struggling parents (64% of working families) in their role of childminders. Meanwhile,

mylovelyparent.com is a new website, available in English-speaking countries, where single parents can find love

with the help of their sons and daughters aged 18+.

Multigenerational holidays are now considered to be mainstream as 'austerity' getaways', with the extended family

having made a comeback as recession continues to take its toll on holidaymakers. For instance, a mid-2012 study by

Age UK and mature travel experts at Silver Travel Advisor shows the average number of family members

holidaying together is now six. A mid-2012 survey by LV= travel insurance indicated that many family parties

would feature two adult generations and, possibly, grandchildren too. The UK Passenger Shipping Association

(PSA) has also indicated that multi-generational cruises are thriving.

3. DOWNTIME DECODED: Digital life is making 'leisure' harder to define: 'digital detox' periods are shared digitally, holidaymakers are 'smoasting' – using social networking to boast about their holiday fun. Meanwhile health-conscious consumers are working hard to stay fit.

I love technology Technology is everywhere as we move around with smartphones and tablets and cram several experiences into the

same moment. The Minneapolis Guthrie Theatre has just started offering balcony-level 'tweet seats' during selected

screenings. This step is applauded by Salon.com's Mary Elizabeth Williams, who sees it as an intelligent response to

changing behaviour codes. During the final moments of the televised 2012 Superbowl, Twitter reported 12,223

tweets per second. Companies even offer QR codes for gravestones, the early 2013 Marks and Spencer online

catalogue offers touchscreen gloves, while consumers flaunt their good taste without buying anything on social

curation sites, such as Pinterest. Writing about new hit drama “Girls”, Glenda Cooper in the UK Daily telegraph

recently wrote: “The twenty-something generation is addicted to letting everyone else know what they are doing or

feeling – even if that cuts down the amount of time they actually have to do it.“

Cocooning at home or on the loose is a mentality no longer restricted to Gen Z consumers and geeks. Significant

population segments have user rates reaching borderline addiction levels which guzzle their free time.

Even holidaying consumers can't bring themselves to disconnect. Many are 'smoasting', aping celebrities and using

social media to boast of their holiday fun, while brands use gamification to expand consumer engagement.

The application of technology is starting to transform tourism. Technology now has a role in the vacation-planning

process, eg Hilton's new online vacation diagnosis teaming up with The Onion to lure younger leisure travellers with

humour, or more options for couch potatoes who travel vicariously.

Digital detox Now even companies feel compelled to wean employees off their electronic devices especially outside work hours.

A new Seattle-based company, Centric Brand Anthropology, encourages its staff to build in downtime when

travelling for work. “Switching off after work is important, even if you are on a business trip,” said Sabrina

Schrimpf, a Daimler spokeswoman. Marriott and Renaissance hotels in the Caribbean and Mexico launched

technology-free 'Braincation zones' in December for travellers wanting a break from their digital devices. As travel

journalist Christopher Elliott points out in the 'National Geographic Traveller': "What to do right now? Open your

browser, and all will be revealed. Whatever happened to exploring, happenstance, and serendipity? That essential,

spontaneous part of the vacation is at risk of extinction."

Device-free entertainment is offered nearer home via apps that restrict internet use like Freedom, or by Device-Free

Drinks, a Californian party and weekend retreat company. “I'm a geek, I'm not a Luddite,” says founder Levi Felix

but we have to learn how to use it, and not have it use us.”

Shelley Turkle, an academic specialising in the social applications of science and technology at M.I.T and author of

“Alone Together: Why We Expect More From Technology and Less From Each Other,” explained to the New York

Times that she prefers to stress restricting our interaction with tech: “We shouldn't give it up. It's more like food, and

being on a digital diet.”

Meanwhile, there are efforts to inject greater value into digital activity. Dubbed the world's first “real social

network” by its Swedish and French founders, Challengera aims to get members to be active: “Facebook is great for

communication, but there is no social network to it. You go there simply to be there, rather than to actually do

something.“

Shopping as leisure

Chart 3 Respondents who Ranked Shopping as their Favourite Leisure Activity in selected major

economies

% of male & female respondents

Source: Euromonitor International Out and About Survey 2012

Shopping is increasingly perceived as fun by consumers and making greater inroads into our downtime. According

to Pablo González of the UNDP: “The notion of gratification through consumption, that people 'deserve' to spend

money on themselves, is now widespread.”

A new shopping survey from high-end UK supermarket, Waitrose, found that one in four online shoppers log on

from their beds, with two thirds of those admitting to shopping after midnight.

Consumers are shopping for the pets they dote on too. Natasha Adlakha, a freelance writer in India, estimates that

she spends around 20% of her monthly salary on her golden retriever.

Journey and destination wellness In 2013, wellness is as much about the journey as the destination, with consumers holding experience consumption

in higher esteem. While consumers are increasingly looking for aspects of the 'wellness cluster' on holiday – and

there are resorts and spas galore for them, it is also about nutrition and fitness, classes and pursuits that consumers

can follow nearer home. Tech-led 'wellness' like Calm.com offers tranquillity via natural landscapes with the sound

of running water and short guided meditations. Its founder, Alex Tew, says it has been used by over a million people

in just a few months.

Crucially, fitness is a means to connect with others. 29-year-old Deirdre Berne described exercise classes as “my

entertainment and part of my social life. You see the same people… you have a common interest, you get to be

friends.”

4. FOOD – MORE THAN A LIFE STAPLE: Food is now celebrated, avoided, greener, healthier, grown in more urban spaces and hopefully safer.

Food problematized Most of the population in developed countries is trying to lose weight. However, cost is a significant barrier to eating

healthier food, at the same time as eating and lifestyle patterns are changing. Busier lives, irregular working hours,

more single and multigenerational households and more working mothers mean less structured meal times. People

are consuming more snacks and light meals outside the home and ready-made meals at home.

Worrying stories about proportions of obese consumers and the burden on healthcare provision continue to grab

headlines. Euromonitor International data shows that in 2012, the top three world countries in terms of obese

populations (people with a BMI of 30kg/m2 or more) were Kuwait, Mexico and the USA. More than 40% of

Kuwaitis were obese in 2012 – a problem worsened by its people's passion for fast food. In some Middle Eastern

countries such as Saudi Arabia, the absence of bars and discos means that fast food restaurants are a popular

socialising venue for groups of same-sex youngsters. Euromonitor International Annual Study 2011 findings show

that the younger a respondent is, the more likely they are to eat away from home at least once a week.

Some policy proposals are controversial. These include a recent idea from the London Borough of Westminster, that

some overweight Brits could find their welfare benefits cut if they don't complete an exercise regime.

Chart 4 Daily Fruit and Vegetable Portions: 2011

% of respondents

Source: Euromonitor International’s Annual Survey 2011 Note: Results are drawn from 16,000 online consumers ranging in age from 15 to 65+

Food celebrated In 2013, more consumers are deriving pleasure from preparing and eating food as a leisure activity.

The blog world was a gift to foodies; now entertainment built around food interests is spreading taking in TV

cookery duels as well as after-hours cookery classes – both in gourmet restaurants and more unexpected locations. In

Latin America, prestigious figures such as Mexican chef Ricardo Cabeza often feature on videos uploaded by people

attending courses and tastings.

A global celebration of food is tangible. A local version of Masterchef was one of the top three shows in Israel in

2012. "Food is absolutely the new pastime for people," says Australian author Maeve O'Meara, presenter of the Food

Safari TV series which showcases immigrant cuisines.

A new Egyptian food show with housewife/chef Ghalia Mahmoud has captivated viewers with its practical tips on

tasty, simple and cheap cooking for struggling households.

The inaugural World Street Food Congress will be held in Singapore this summer, reflecting the newly cool status of

street food.

A healthier, safer, greener menu Consumers are more aware than ever of the damage food can do, as well as its pleasures. An editorial from Mark

Bittman in the New York Times last December focused on the need for 'Dietary Seat Belts'. “Preventable, chronic

disease - to a large extent brought about by diet - is now the biggest killer on the planet. Soda kills more people than

guns - more people than car wrecks - only less dramatically,” he cautions. He praises places like New York City

which have aggressively tackled dietary issues in schools and elsewhere leading to declining childhood obesity rates.

Is sugar the next tobacco? "Sugar: The Bitter Truth," a lecture from author and paediatrician Robert Lustig posted

on YouTube, had well over three million views at the start of February 2013.

Some innovations from large and small brands are encouraging. September 2012 saw McDonald's begin publishing

calorie information on all its restaurant menus in the USA – a move that has been demanded by policymakers in

several countries. An organic supermarket chain in Germany, Fresh 'N' Friends, is enticing kids to eat more healthily

by creating ready-to-eat packs of fruit salad presented in the shape of animals, flowers and tractors.

Consumer interest in urban agriculture is surging in North America and Western Europe and beyond. IKEA

launched a miniature greenhouse last summer. In Hong Kong, a London-born designer, Michael Leung, has created a

rooftop farm above his studio. Speaking to the magazine Time Out Hong Kong, Leung argued that using these

underutilised spaces for sustainable, green enterprises could help reduce Hong Kong's carbon footprint and make it

less of a concrete jungle. Consumer self sufficiency efforts on urban balconies and other small spaces are being

promoted and supported on websites like verticalveg.org as consumers question the provenance of their food and

worry about 'food miles'.

5. GENDERED CONSUMPTION RIP? Gender-specific consumption and outlooks may be fading. This trend is apparent in everything from unisex tech preferences,

to new gaming audiences as well as behaviour traditionally seen as female now being feted in business situations.

Unisex tech preferences In 2013, few women want pink computers and most women just want to be addressed as consumers, not as women.

Women are taking an active part in social networks and pass on information through blogs and tweets about big

ticket item purchases.

Thus the reported lukewarm response to a recent initiative by Austrian electronics chain Media Markt seeing

dedicated 'Women's World' areas with depilating gizmos, white TV sets and kitchen gadgets and floral deco in 31

branches, is unsurprising.“I don't know that women need to have their own little play-pen like toddlers,” remarked a

female baby boomer.

Chart 5 Growth in Sales of Smartphones: 2007-2013

2007 = 100

Euromonitor International from trade sources/national statistics Note: Growth refers to retail value sales in constant US$. 2013 data are forecast

Fun and games Female gamers are of increasing importance when analysing gamer profiles. They are reported to be the largest

players on social networks such as Facebook and on MySpace in the USA. PopCap, creator of popular mobile phone

games such as Insaniquarium, revealed in a briefing published in June 2012 that the new American gamer profile for

its social-network games reaches an average age of 48 and that 55% of them are women. In view of this, it is not

surprising that brands like L'Oréal with their XBOX console app called “The Next Level” are edging into the world

of gaming. This new attitude starts early: “Girls don't necessarily care about, 'That's a boy toy; that's not for me,' ”

said a Mattel spokesperson. “Now, more so than ever, girls are looking at what's fun.”

In a piece on the website of Kenyan radio station Capital FM, Gideon Kariuki laments what he refers to as the

“evolved” Narobi woman. He writes, for instance, that: “The Nairobi woman is galloping from one club to another

with her gang of girls… She would rather quench her thirst with Smirnoff than cold water… you may think she loves

rings, but if you try to put a wedding ring on her finger, she will disappear without a trace.” This piece prompted a

lively online debate. A poster called Patrick lamented: “The good old days are long gone, even in the villages.

Women are the new men!” Similar comments have greeted the new checkhimout.com shop-style dating website

available in several English-speaking countries which is encouraging women to shop for men like they're products,

placing eligible 'man-products' in a shopping bag.

Gender fluidity in fashion and style Androgynous fashion is undergoing a renaissance with popular chains like American Apparel and Uniqlo full of

unisex garments. The poster boy for this trend is model Andrej Pejic. TheDailyBeast.com sees Pejic as spearheading

something bigger: “He's the leader of a new gender fluidity in fashion, in which traditional male and female attitudes

are starting to matter less. It's a message that is being slowly adapted industry-wide-and is resonating with

consumers.” Some claim today's androgyny is less about gender-bending and more about gender-blending.

“We're living in a fragrance democracy,” says designer Tom Ford. “Ultimately, choosing a scent is personal and

primal, and should be decided not by gender, but by inhaling and asking, 'Does it smell good to me? Does it smell

good on me?'”

Men as well as women around the world are more open about wanting to flaunt stylish items and look good. Male

consumers are spending more and more on grooming products, aesthetic treatments and luxury fashion traditionally

dominated by female shoppers. Despite his love for luxury bags, 26-year old Beijing resident Ren Jiansong prefers to

rent them. "I rent high-end bags for parties and business meetings because they help refine my image," he added.

To exploit a wider customer base, inclusive gender-neutral marketing, rather than crude gender stereotyping, appears

to be the way forward for many products and services traditionally regarded as 'male' or 'female'. “The number of

male clients we have has grown by 30% since 2010. As a result, we have changed our advertising by incorporating

masculine images,” said Yanina Fuks of M&D Dermacycle, an Argentinean aesthetic centre. Last August, London

luxury department store Harrods opened its gender-neutral toy department grouped by theme and not gender.

Men and women shopping for households Men are becoming a prominent presence in more global supermarket aisles and home kitchens. Damodar Mall,

President of the Food Bazaar in Delhi, estimates that men are behind at least 40% of shopping trolleys.

In recent months, for the first time in Barbie's 50 years plus history, makers Mattel introduced a Barbie construction

set. According to Stephanie Clifford in the New York Times, this reflects two key changes: “Fathers are doing more

of the family shopping just as girls are being encouraged more than ever by hypervigilant parents to play with toys

(as boys already do) that develop math and science skills early on.”

6. LOCAL LOVE: Things local are capturing the consumer imagination as more prosocial consumers (those who care about others and society as a whole) reject 'burbiness' (a term that reflects commercialism and the prevalence of chain stores) and global brands court local cultural relevance and tastes. The love for things local explains why airport shopping feels less global, the return of large-scale manufacturing to developed markets and 'remigrants' (migrants who return home).

Better made here With renewed consumer interest in things local, successful global brands are making more concessions to local

tastes. For instance, McDonald's France advertised widely that 95% of its ingredients hail from France.

Global brands are also forced to change in their countries of origin. Starbucks opted for 'brand-less' shops in the

USA to satisfy its more intellectual clients, who think the brand has become “too massive” and global.

Buying local is spurred by consumer disillusionment with global consumer culture, a wish to put national economies

first, and elevate sustainability concerns.

The December 2012 issue of the Wall Street Journal Magazine featured a glossy gift guide – “the finest seasonal

gifts, from sparkling jewels to bespoke suits – each made in America”. Meanwhile, a study conducted by researchers

at St. Gallen University during 2012, found that a “Made in Switzerland” label on a product can increase its

profitability by 20%.

In response to the popularity of market-leading smartphones against Canadian brand Blackberry, posters on state

broadcaster CBC's website are often protective: “I'll stick with my tried and proven (and Canadian) BlackBerry,”

said one. At the start of 2013, Danish Discounter Netto is looking at more local sourcing after the chain's plan to

purchase the “best and cheapest” food, regardless of its origin, met with a strongly negative reaction from some

consumers.

In Greece, local brands that play up their 'Greekness' are gaining sales from their international rivals although some

international brands are fighting back. Cans of Fanta now state that the fizzy drink is made from “Greek oranges”.

High-profile unpatriotic consumers are sometimes 'outed'. Last October, Taiwan's Information Minister Hu Yu-wei

stirred up controversy for not buying local. “Can you imagine the South Korean government spokesman speaking

out for iPhone 5 on his Facebook page?” asked the United Daily News.

This trend is also about a new-found pride in local heritage that is undermining the ubiquity of Western culture and

will see emerging markets proudly export and flaunt their national and cultural heritage in the coming year –

tradition that was formally downplayed.

Reviewers have noted, for instance, that Latino soap operas are now less global in scope, and reverting back to

greater focus on local culture. In an interview with the newspaper Vanguardia, Salvador Mejía, producer of new

show, What a Wonderful Love, said that he expected it to “impact on Mexicans because it will bring them back to

their roots.”

Local and green Urban gardening and agriculture is basking in consumer interest and support. 'Vertical gardening,' using balcony and

wall space for growing vegetables and other small-scale urban agriculture initiatives, is thriving. Amidst rising food

prices and concerns for food safety, many urban consumers are growing their own produce.

O'Hare International Airport in Chicago opened the Urban Garden in 2011. It grows herbs and vegetables for the

airport's restaurants in a secluded spot between terminals. Brad Maher, director of operations for HMSHost, which

runs a majority of the concessions at O'Hare, said that the garden recently opened a farmers' market kiosk: “Where

we package some of the herbs for sale if people want to buy them.”

Chart 6 Top 10 Emigration Countries: 2010

Millions

Euromonitor International from World Bank Note: Data refer to the stock of emigrants living outside the country

Remigrants Migrants are returning home to newly-prosperous economies in record numbers. Poland appears poised to benefit

from a 'brain gain' brought about by returning migrants. According to an unnamed journalist who was speaking to

the US-based Christian Science Monitor newspaper: “If you sit in a Krakow pub long enough, you will find someone

who has returned.”

This reverse migration trend is reflected in popular TV drama. 'I Do' is a new soap opera in India centring on Zoya,

an Indian woman who returns home from New York and has to adjust to her traditional community. The Ministry of

Overseas Indian Affairs (MOIA) estimates that over two million Indians have returned from abroad since 2010,

nearly 10% of the Diaspora (Source: MOIA, 2012).

7. OLDER AND OFF TO WORK AND TRAIN: An increasing number of governments and companies are raising or abolishing retirement thresholds. Simultaneously, more tech-savvy, active and image-conscious older consumers need and want to work and spend comfortably for longer.

Grey power It isn't only arch chameleon, David Bowie, who can reinvent himself in his sixties. His lauded new song 'Where Are

They Now?' ends up celebrating the present. Bowie's contemporaries and mature consumers in their fifth and seventh

decades and more can also celebrate their capacity to repackage themselves. Millions of older consumers are carving

out new work paths.

Governments with ageing populations who are enjoying longer, healthy lives, are helping them with supportive

policies. For instance, in autumn 2012, UK legislation was introduced to stop employers from compulsorily retiring

workers once they reach the age of 65. Older consumers also need to boost their long-term financial security and

lifestyles by working longer.

A new UK survey from investment bank Citi, discussed in the UK Sunday Times newspaper, finds that a 'greying

workforce' is “squeezing the younger generation of jobs”. Figures quoted from the UK's Office for National

Statistics (ONS) reveal that 93% of the jobs increase in the last decade has been among the over-50s. The number of

self-employed workers aged 50 to 64 rose by 15% in the last four years, soaring by 54% among the over-65s in this

period, reported the UK's Daily Mail newspaper, quoting the ONS.

Globally, mature workers are being courted for their experience and skills. Sue Black, head of human resources at

outsourcing firm Sodexo Canada, says employees aged 50+ are three times more engaged than their younger

colleagues and comprise a third of the workforce. In a 2012 survey by professional services firm PwC, 60% of

Canadian CEOs said they plan to amplify their efforts to recruit and retain older workers.

Joi Ito, director of the MIT Media Lab, an interdisciplinary research body at the Massachusetts Institute of

Technology looking at the interface between technology, multimedia and design, identifies lifelong learning as key

in 2013. “Today, the ability to learn on your own or from your peers has become really easy. I think this change is

leading to a fundamental disruption in education,” he says.

'Upwards mentoring' is an interesting variant of work training offered to older staff. Educational brand Pearson's

website explains: “We have also set up some 'upwards' mentoring relationships, so that more senior colleagues are

mentored on a particular topic – such as digital technology – by someone who has less experience in general, but

more experience in a particular field.”

Chart 7 Global Greying Workforce Hotspots in 2012

Employed population aged 65+ ‘000

Source: Euromonitor International from International Labour Organisation (ILO)/Eurostat/national statistics Note: Data refer to top eight countries ranked by number of people aged 65+ in employment. Data available for 109

countries.

Mature workers enjoying modern flexibility Older workers are benefitting from more flexible work lifestyles; many using digital communications to work out of

the office and accommodate leisure into working lives.

Brands are factoring the new working reality of older consumers into what they sell. Journalist Stephanie

Rosenbloom, in a February 2013 New York Times article, stresses how the travel industry is adjusting to working

boomer needs: “While many vacationers strive to get away from e-mail and smartphones, tour operators say

boomers are telling them they no longer want to be out of touch with their offices and families,” she explains.

Pamela Lassers of upmarket travel firm Abercrombie & Kent discusses how the core of the firm's business has

shifted from a 'getting away from it all' ethos. Today: “Safari lodges in Africa are installing internet connections...

They're [boomers] in the middle of the Serengeti...and they want to update their Facebook page.” JoAnn Bell, who

manages programming for educational tours group, Road Scholar, and is already offering shorter cruises, adds:

“Speaking from a boomer who feels like I'm going to be working until I'm 70...we're very conscious of the fact that

so many more people are still working.”

Looking the part In view of their greater presence in the workforce, an emphasis on grooming and style among older workers is

unsurprising. The increased interest in and take-up of rejuvenating surgical procedures among older women and men

are well documented, but the media is rich in simpler tips for older employees on updating working wardrobes and

beauty regimes.

Carine Roitfeld, until recently editor-in-chief of Vogue Paris, is the new global fashion director of

harpersbazaar.com and is almost 60. The website's homepage currently flags a huge 'Fabulous at Every Age' feature

as a route into various fashion trends.

The blog 'Chic at Any Age' celebrates stylish older role models: “From the oldest working model, Carmen

Dell'Orefice, gracing the catwalk at New York Fashion Week at 81, to M&S advertising campaigns staring

Twiggy...there's never been a more glamorous time to be over 50,” it enthuses.

Style blogger, Ari Seth Cohen, photographs elegant older consumers and featured several of them in his recent book

'Advanced Style'. He also photographed a cast of four women aged between 65 and 92 chosen to model the new

Karen Walker eyewear collection. His website explains that he scouts the streets of New York looking for the “most

stylish and creative older folks...Let these ladies and gents teach you a thing or two about leading life to the

fullest...personal style advances with age.”

8. PARENTING LIFESTYLES: Parents are now buying to suit themselves as well as tomorrow's generation. Growing trends include 'shopturnals', yummy mummies, parents befriending their teens online, stay-at-home dads, 'tiger mothers', 'idle parents', parent bloggers and gifts in lieu of time spent with kids.

Parenting in the recession In new book 'Songs of Innocence: The Story of British Childhood' author Fran Abrams acknowledges that in

recessionary times: “The question of why parents have them [children] is thrown into ever-sharper relief.“ As

women are delaying having children and having fewer of them, however, this means that despite the recession,

parents are continuing to put their kids first. “They've waited a long time for this, so they won't compromise

spending on their baby,” the founder of Baby Concierge, an upmarket consultancy service, told the British Airways

website babusinesslife.com in September. As the recession continues to hit, parents may economise on baby

products by buying supermarket own brands, but refuse to compromise where the health and safety of their infant is

concerned. Budgeting consumers are keen on using collaborative consumption to ease costs. For instance, Grownies

is a children's clothes exchange website.

However, there is a price to pay for parents working long hours as head teacher at a school in Rio de Mouro,

Portugal says: "Parents now have two or three jobs and so they spend less time with their kids. The kids are growing

up on their own."

What's more, with the current backdrop, parenting extends into the future. In the words of one pessimistic UK

Guardian newspaper reader's post, in the face of austerity measures, skyrocketing property prices and scary

unemployment rates, “the kids are going to be home…for keeps.”

Parents and their 'must-have' buys and experiences for their offspring Affluent parents to 'waitress moms' want the best for their kids but it's not just about pester power. Parents often

crave items for their kids and in so doing send out signals about their identity and style savvy. In the last five years,

the premium baby skin care category, for instance, which comprises mostly natural and organic brands, has grown

significantly globally.

In 2013, all eyes will be on the purchasing choices of the Duchess of Cambridge.

Parents still want that statement buggy. One contributor to UK parenting blog Netmums explained her Bugaboo

pram was something she'd “treated” herself to.

More and more parents are 'shopturnals' shopping online between midnight and 6am. Many of these shoppers are

new parents who are kept awake by their babies. The number of baby products sold in the six-hour period has risen

78% over the last year according to new research by Amazon.com.

Chart 8 Global Average Age of Women at First Childbirth and Fertility Rates: 1980-2020

Age in years/children per female

Euromonitor International from UN/Eurostat/national statistics

Vanishing dividing lines between children and 'peerents' The disappearing generation gap is contributing to parents becoming 'peerents', working through issues with their

children and sharing experiences in a form of 'collaborative parenting'. A plethora of articles have noted that parents

and their children often wear the same brands, listen to the same music and enjoy similar experiences – perhaps

aided by greater collaboration between generations.

Numerous studies highlight how kids are spending more time clicking than playing, with experts blaming a lack of

time among parents for the trend. Toni Nagy admits on Salon.com that her smartphone serves as “a baby sitter for

my kid when I don't want to deal” although Nagy and many parents, such as Amal Talib a Singaporean mother,

impose time limits on gadget use.

Parents are increasingly online and vocal. Sharing of the parenting experience on blogs like mommyisgreen.net has

become a worldwide cottage industry with voices that even politicians are heeding. Parents are also availing of new

apps like Johnson's Bedtime, which helps users establish an evening routine for their babies. Mums of older children

even go online to communicate with their teenagers: thus, a reported 57% of Australian parents have 'befriended'

their children on Facebook.

Parenting styles and services to meet them Styles of parenting, from the more involved 'Tiger Mothers' to the more laid back 'Idle Parents' aiming to foster

greater independence, continue to be discussed in the public arena.

A slew of services have emerged to offer help to time-pressed parents from Nanny in the Clouds matching parents

travelling with young kids to babysitters on their flights, to a new 'rent a granny' service for Brno in the Czech

Republic responding to a shortage of pre-school places. Other examples include a 'Week of Sleep for Exhausted

Parents' at the Almyra Hotel in Cyprus and Fleurette Kids Taxi in Ottawa Canada which transports and supervises

kids at after-school activities. Malls are also increasingly involved in childcare provision – such as the 'drop and

shop' service at the Dubai Mall.

9. SHOPPING LIKE IT'S THE FUTURE: New tech-driven shopping culture reveals generational fault lines. Brands are focusing on interpreting consumer lifestyles to reach out to customers warming to innovation. 'Showrooming', gamification, Facebook's piloted 'want' button and in-store digital information offerings are all part of this trend.

Tech-driven shopping a comfort zone for younger consumers Technology is changing the shopping experience. It feels like consumer shopping acumen honed on the internet via

reviews, has spilled over into real world shopping. Being the most comfortable with digital technology, it's not

surprising that younger 'digital natives' feel at ease with shopping trends such as shopping via smartphone. A survey

conducted by Canadian wireless carrier Mobilicity during October 2012 found that 30% of smartphone users were

planning to use QR codes or other mobile discounts to buy Christmas gifts, but this percentage rose to 43% among

respondents aged 18-34.

Not only are customers shopping online via smartphone (nearly 25% of Chinese respondents to Euromonitor

International's 2011 Annual Survey said they bought an item or service via mobile 1-2 times weekly) but consumers,

armed with their smartphones, are taking comparison shopping into bricks and mortar stores where they are

'showrooming'. This term refers to the practice of looking at items in shops and buying later online. Other consumers

are utilising increasingly sophisticated shopping apps to help them buy for less. Praised on tech site Mashable's list

of 12 sites to survive the end-of-year holidays in 2012, the Decide app's customised algorithm recommends whether

users should buy an item or wait for a better price. “Scan a product's UPC barcode while in store to compare prices

on the web and get an instant prediction that's 77% accurate,” its creators claim.

It is likely that more shops will copy innovations from US retailers in their fight against competition from online

sellers. US stores such as Toys R Us, Best Buy and Target are trying to make their stores showrooms for their own

sites, using smartphone apps to bring the advantages of online shopping with them to in-store customers. Gibu

Thomas, Wal-Mart's senior vice president of mobile and digital says that more than 12% of online sales made

through Wal-Mart's smartphone app happen while customers are in-store.

In a response to a mid-2012 New York Times article on tech and shopping, Robin from Santa Fe writes: “I don't feel

a bit sorry about checking things out at stores. With all these sources available I feel like I am less likely to settle for

whatever the local market peddler wants to carry. Buying a camera lens for example, the sales guy just doesn't know

every feature of every lens, so in the end I have to consult the web anyway.”

Chart 9 Comparing Prices on Mobile Phones In-store: 2011

% of respondents

Source: Euromonitor International's Annual Survey 2011

Shoppertainment Retailers are working to make shopping more fun via 'shoppertainment'. Last December, a London branch of

department store John Lewis offered visitors a dance floor for the testing of Christmas party footwear.

October 2012 saw China's biggest food e-commerce site, Yihaodian, announce plans to open 1,000 3D augmented

reality (AR) grocery stores in blank city spaces and landmarks. AR in retail is a live view of a physical, real-world

shop environment on empty wall space whose elements are augmented by computer-generated sensory input.

Shoppers typically scan the QR code of products they want to buy and add these to their shopping carts. This move

is part of a global physical/virtual trend which offers both augmented reality and tangible experience to shoppers.

Clothing retailer C&A Brazil is attempting to cross-pollinate social media and bricks and mortar shopping with a

campaign entitled 'Fashion Like.' It involves the company uploading pictures of items from its clothing line to its

Facebook page where they collect 'likes' from fans. In-store, special hangers display the number of 'likes' for the

selected items, and these are updated in real time.

Millions of consumers continue to enjoy engaging themselves in collaborative consumption on- and offline, selling

and reselling products, services and even shelter away from home via sites like Airbnb.

Shopping with gaming elements Gamification, the integration of gaming dynamics into non-gaming environments, is increasingly used to engage

consumers in buying experiences. Gamification aims to infuse otherwise mundane actions with the thrill and the

instant feedback of video games. Digital technologies such as smartphones have intensified this phenomenon

especially among adults. More websites are gamifying shopping which psychologically can make buying more

addictive. These sites include time-bound 'flash shopping' sites giving customers a thrill when they beat the clock.

In the USA, over 75 utility companies are using a service from energy efficiency and customer engagement

company, Opower, which awards badges to customers reducing energy consumption. Customers can compare their

progress with that of their neighbours and broadcast achievements on Facebook.

10. THE ROLL CALL OF CONSUMER CONCERNS – CONSUMERS RESEGMENTING: Consumers are becoming more vocal about their needs, through identifying with others who share them and mobilising together via the net. Brands are also increasingly responding to new consumer niches. Such consumer segments include those calling for a quest for simplicity. There are even havens for smokers.

The power of particular consumer niches is entrenching People worldwide are moved by a roll call of often-narrowband consumer concerns on and offline and brands are

trying to mirror and target those new segments at the same time. Current often unrelated preoccupations of an army

of consumer watchdogs take in personalisation by online search engines (filter bubbles) and by brands. Thousands of

others are airing their discontent about the prospects of school leavers and graduates or about the lack of products for

larger consumers or the quality of school meals. Vocalising concerns is a global consumer preoccupation. Mexicans

are increasingly using social networks to criticise everything from consumer goods makers to telecom service

providers. The hashtag “#Fail” has become something of a phenomenon on Twitter in Mexico.

Brands need to heed what is being said and note that what they convey via advertising may be less relevant, for it

can be contrasted with opinions and facts shared by millions of social network users worldwide.

Chart 10 Typical Interactions with Companies and Brands on Social Media

% of respondents

Source: Euromonitor International Analyst Survey - Analyst Pulse; December 2011

The value of transparency Cynicism about corporations has not dipped since the start of the recession, and companies are coming under

pressure to prove that they stand for something more than 'better, faster or newer'. While the direct link between

brands and consumers through social networks is seen to have humanised this bond, transparency from brands is

seen as the panacea for a catalogue of concerns. This is a new value increasingly demanded by users and consumers,

and one of the few attitudes that make companies respected and that develop brand loyalty.

Commenting on 'malicious' customer hotel reviews, TripAdvisor founder, Stephen Kaufer, defended the site

invoking this principle: “Hotels would ring us saying, "We've been given a terrible review, take it down". But that's

against everything we are meant to do, which is to create transparency.”

Brands not doing enough to accommodate tomorrow's bigger consumers Dieting hype aside, consumers are expanding and many brands aren't creating goods to suit them even though global

obese and overweight populations are set to continue growing, often to a third or more of the general population.

Brands would be unwise to ignore this significant group of consumers who are set to require and therefore consume

more trend-aware goods and services such as clothing, furniture, transport and travel services that suit their larger

needs. Last September, the Hindustan Times quoted from the 'Diary of an XL woman': “I like fashion. But the

question is whether fashion likes me. I don't think so.”

Safety first Green issues are being thrust into consumer consciousness by safety concerns related to food and air quality – such

as a catalogue of contaminated food scandals. Reeling from a series of food scandals, Chinese consumers are

combining their passion of food with social networking to name and shame companies. When some Coca-Cola

products were found to be contaminated by chlorine in 2012, millions of Chinese consumers flocked online to call

for a boycott of their once adored “yang”, or foreign brand. “Coca-Cola can delete the evidence and refuse

compensation. We consumers also can delete Coca-Cola from our shopping list,” wrote one irate blogger on Sina

Weibo, a massively popular local microblogging service.

Smokers' rights Feeling cornered, more smokers are fighting to defend their wish to light up. In Australia, the plain packaging for

cigarettes decorated only with macabre health warnings, mandatory since December 2012, has been heavily

criticised by smokers.

In an effort to give smokers some 'breathing space,' investment firm General Fundex has launched a chain of

dedicated smoking lounges in Tokyo. The city has gone one step further than most in terms of banning smoking in

public places; it is now a civil offence to smoke while walking.

Smoking bans in Latin American countries have impacted on the habit of social smoking. Smokers' clubs in

Argentina, Brazil, Mexico and Caribbean nations such as Honduras and Puerto Rico have expanded along with

tobacco culture. They have their own specialist publications and internet portals while their new acquisitions and

product launches are a hot topic on social networks.

For further information please contact Daphne Kasriel-Alexander, Consumers Editor at Euromonitor International: daphne.kasriel@euromonitor.com

About Passport Survey Passport Survey reaches out to thousands of consumers each year to find out more about their motivations, habits,

and opinions. Questions span a range of topics, from healthy living to technology to personal values, and are

developed in collaboration with Euromonitor International's Industry and Countries & Consumers experts. In the

Annual Survey, 16,000 consumers of all ages (15-65+) were surveyed online in eight mature and developing

markets. Similarly, the Out and About survey reached out to online consumers aged 15-65+ in 15 of the world's

largest or fastest growing markets. Respondents in both consumer surveys were pre-screened to resemble the

population of their country with regard to age and gender, and reflect a wide range of income and educational

achievement.

Each month, Passport Survey also reaches out to Euromonitor International's worldwide network of in-country

analysts and in-house researchers in order to find out more about current, local attitudes and behaviours. Analyst

Pulse survey results should be interpreted with some caution. The results reflect a great degree of geographic,

economic, and cultural diversity among educated consumers who are also market researchers. Passport Survey

presents their opinions and experiences in order to provide starting points for potential further investigations and

sparks of tactical insight.