In what is best described as a digestible approach to 2017 consumer predictions, Euromonitor International has run through a series of factors certain to affect worldwide consumption.
Along with slow juicers, robotic vacuum cleaners and Shopkins, the consumer market research company is banking on an increase in Millennials living with their parents due to rising real estate prices, steep college tuition and escalating personal debt. Around the world, 55 percent of the population will live in cities — a 5 percent hike compared with 2007. The median age will hit 30.1 years — another upswing compared to 27.9 years a decade ago. Despite rising incomes, better standards of living and improved health care in many parts of the world, obesity and diabetes are on the rise as a result of higher caloric diets and increasingly sedentary lifestyles.
Political uncertainty — as in the U.K.’s bid to trigger Article 50 to leave the European Union and the incoming Trump administration in the U.S. — will be an important trend from the view of Sarah Boumphrey, global lead of economies and consumers for Euromonitor International, consumer expenditure should inch up 2.3 percent over the next year with every household saving on average $3,609, she wrote. With the U.S. accounting for nearly one in three dollars spent globally, she underlined that “consumer behavior in the Trump era matters to the world. Despite its slowing economy, Chinese consumers will continue to see amongst the largest increase in spending, and spending in emerging and developing economies will grow by more than twice that of developed markets.”
Each week next year, an additional 3.5 million people are expected to get online, $40 billion should be spent by consumers and $146 billion should be saved by consumers, according to the Euromonitor report. Shoppers in all sorts of countries are choosing to move away from cash, given that credit card payment surpassed cash as the largest source of consumer payment globally this year. By 2021, credit card payment is expected to increase 5 percentage points to 49.1 percent by 2021. Card payments have caught on due to more access to financial products and services, card-friendly payment policies and China’s rapid adoption of cards in the past 10 years. Despite that, Euromonitor’s senior consumer finance analyst noted the potential for disruption as more electronic transfer platforms “reach remote consumers in emerging markets and younger and more technologically advanced consumers in developed markets.”
In the release sent from the company Wednesday, Magdalena Kondej, head of apparel and footwear, predicted “further disruption and acceleration of the fashion cycle.” As more shoppers demand instant gratification, looking to “purchase fashion anytime, anywhere and on any device,” the see-now-buy-now trend that surfaced this year is expected to become more widespread, according to Kondej. The immediacy of fashion shows coverage online and via social media will “push more brands to introduce seasonless fashion calendars. Instead of making consumers wait six months to purchase the collections, they will make them available to buy straight off the catwalk,” she wrote.
In terms of personal accessories, affordable luxury brands should continue to see an uptick due to consumers in developed countries trading down and from ones in developing countries in search of affordable luxury brands, according to the Euromonitor research. The eyewear industry should be affected by other factors including eyesight disorders caused by changing lifestyle habits, increased blue light consumption and the aging population. Demand for eyewear should be steady in developed markets with more accelerated growth stemming from India and Vietnam.