a trendMARK feature by Dion Chang (@DionChang) Let’s talk about retail disruption and other top trends for 2014, including: social media commerce; catering to the millennial palate; the reassurance economy; and millennial martyrs (the big data backlash).
1. Retail Disruption
The rise of online shopping is proving to be one of the most significant game changers for the retail industry. It is not only changing consumer behaviour, but also the value chains of the retail industry. Initially, the dilemma of providing either a non- or offline service, has now evolved into servicing a more complicated hybrid shopper.
Retailers are now grappling with problems like ‘showrooming’, where customers try on merchandise in-store but make the final purchase online. Landlords, in turn, are coming to terms with Shoppable Windows: touch screens mounted on regular shop fronts that enable passers-by to browse and buy from the online inventory of a retailer who no longer needs to rent the floorspace, or physically stock the merchandise. These disruptions create new business models for brands and consumers while the landlord sare the ones left short changed.
2. Social Media Commerce
The social media landscape nudges its way towards a more commercial realm. All social media platforms start out as a free service and monetising the machine once the users have adopted the platform is a tricky balancing act, which can elicit a backlash from its loyal users.
Facebook bought Instagram for$1-billion, when it was two years old, had 9 employees and no revenue stream. Now with over 150 million monthly active users it is gearing up to sell advertising. Designer Michael Kors posted the first advertisement in November, and immediately received a mixed bag of 200 000 comments and likes – but like it or not, social media advertising has arrived.
However, Starbucks (always one step ahead) has already ventured into Social Media Commerce with a “Tweet a coffee” service. It allows app users to buy a coffee for someone via Twitter just by tweeting @tweetacoffee to (@recipient’s Twitter Handle). What could be more social?
3. Catering to the Millennial Palate
The fast food and fizzy drinks industries are doing a whole lot of soul searching. Not only do they have to adapt to a more health 
-conscious public, but their next generation customer base–the millennials–are proving to be fussier than they thought. McDonalds is still reeling from being knocked off the top 10 list of millennial favourite restaurants.
The iconic Campbell soup company has literally embraced the hipster within and sent its research team to find the Holy Grail: a youth-appeasing formula. The results were“heat and eat-on-the-go” concoctions like Chicken & Quinoa and Spicy Chorizo soups.
Coca Cola on the other hand launched a new derivative called Coca Cola Life, also targeted specifically to millennials. This new variant has natural sweeteners, reduced calories and environmentally friendly packaging, with—most notably—the iconic red label switched to green. It is becoming clear that appealing to millennial palates is not just a taste twist ,but re-thinking the entire DNA of a brand.
4. The Reassurance Economy
Consumer trust is at an all-time low. As consumers, and as citizens, we have been bombarded with irrefutable evidence that we’ve been consistently hoodwinked and lied to by brands, financial institutions, service providers and governments. We’re wary of the food we eat, skeptical of the sports matches and athletes we watch, unsure of our social media privacy setting sand nervous about the new world of online banking and retail.
It’s no wonder that word of mouth recommendations from family and friends, as well as consumer opinions posted online, are the preferred methods of introducing new brands, or promoting the now rare concept of brand loyalty. Trust has become a commodity, and unlike a transient advertising campaign,building long-term trust requires a whole new brand strategy. There are no quick fixes.
It’s like a slow food movement for brands. Say hello to the Reassurance Economy. Gaining trust takes time, is variable and can be lost in a second.
5. Millennial Martyrs (the big data backlash)
Edward Snowden sacrificed everything for his beliefs, as did Aaron Swartz and Chelsea (Bradley) Manning, whom TIME magazine called, “the Geeks Who Leak”: ‘hacktivists’ who leak sensitive information that they believe contravenes personal privacy and freedom.
When Manning was sentenced to 35 years in prison he issued this statement, “When I chose to disclose classified information, I did so out of love for our country and a sense of duty. If you deny my request for a pardon I will serve my time knowing that sometimes you have to pay a heavy price to live in a free society”.
In a similar vein, actor Wentworth Miller outed himself as a gay man, publicly rejecting an invitation to attend the St. Petersburg International Film Festival, due to Russia’s anti-LGBT laws. This new breed of martyr is growing. Governments should watch them closely, as should corporations, companies and brands.
Dion Chang (@DionChang) is a trends analyst and the founder of Flux Trends.
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