Top 5 cultural conflicts driving consumer behavior
By Todd Kaufman (vice president, strategy & partnerships) and Whitney Rosenfeld (manager, business development & marketing)
Gen Z is the digitally native generation. However, Gen Z also leans into analog pleasures from the pre-internet days such as digital cameras, vinyl records and flip phones.
Consumers are more health-conscious than ever. However, overly indulgent menu items continue to generate hype and consumer interest. (Case in point: after a 10-year hiatus, KFC relaunched the Double Down, a sandwich featuring two slices of bacon between two extra crispy fried chicken breasts.)
The economy is in flux and consumers are tightening their spending. However, luxury brands are seeing unprecedented growth.
What do these conflicting statements have in common? They are all true. There are two sides to every trend. For every cupcake, there’s a green juice. For every plant burger, there’s an ancestral blend patty. And on and on.
This group of cultural tensions – two seemingly conflicting statements that occupy separate sides of the same line – validates one of our favorite sayings. Both things can be true.
Here are the top five cultural conflicts that are currently driving consumer behavior.
1. Luxury up vs. economy down
Despite the recent banking crises that have alluded to an impending recession, whereby industry leader JPMorgan shared that the “economic engines are about to turn off,” luxury brands are proving to be resilient. Culture-driven experiences and collabs driven by luxury houses like LVMH or Kering are enabling these higher-tier players to survive, especially as consumers seek lavish moments that make up for lost time during the pandemic.
LVMH kicked off 2023 with a cultural collab that sparked buzz and mass reception; Louis Vuitton debuted a co-branded collection with beloved Japanese artist Yayoi Kusama. In addition to a range of iconic handbags, the fashion house created more touchpoints for consumers through an interactive robot modeled after Kusama that lived in the window displays at Louis Vuitton’s flagships, as well as in high-trafficked public areas around the world.
Vogue also predicted the surge of the “quiet luxury” trend. In laymen’s terms, “elevated basics” are here to stay and brands like The Row, Khaite, and Bottega Veneta are the ones in the driver’s seat.
2. Linear TV vs. streaming
FAST channels (or “free ad-supported streaming TV”) have been on the rise as cord-cutters seek a cable-like experience without exorbitant monthly fees. Deadline reported that these channels could be worth upwards of $500m in the UK by 2027, as the medium provides creators ways to maximize the value of their IP.
Despite this, Linear TV hasn’t completely dissipated either. Programs like Abbott Elementary or The Last of Us, airing once weekly on cable to remind us of the old-school community-style watching, continue to dominate ratings and viewership with the HBO program garnering its series-high viewership with over 8.2 million watching on March 12, despite Oscar broadcast competition.
However, this doesn’t mean that Linear TV will last forever. As it stands, live sports, and the networks that host them, are now preparing for the next phase; Bally Sports Networks, which owns several regional sports channels, is heading in the direction of bankruptcy. This impending crash has caused panic in finding alternatives for broadcast without the existence of these channels; fans complain that they can’t watch their teams without a cable subscription, but also don’t have means to subscribe to all streaming services that support their favorite teams.
3. Manual vs. autonomous vehicles
For many years, the auto industry has talked about the “future” of automotive. While the development and adoption of fully autonomous vehicles has slowed considerably, there are still major technological advancements contributing to the growth of advanced driver assistance systems. McKinsey predicts that by 2035, 37% of all vehicles sold will have advanced autonomous driving technology, with 12% featuring Level 3 or higher autonomous technologies. For reference, Tesla is currently at Level 2.
In the United States, electric vehicle (EV) sales grew by 65% in 2022 and EV’s comprised almost 6% of automotive sales in 2022. The number is expected to reach 30% by 2030 and 50% by 2050. Citing fuel savings and environmental impact as their top purchase motivators, Millennials and Gen Z are the generations leading the charge.
Despite this, according to the Wall Street Journal, two-thirds of consumers aged 18-34 are eager to learn how to drive a stick-shift vehicle. In fact, sales of manual vehicles have doubled in the last two years. BMW-owned Mini recently added three models to its stick shift lineup and opened a manual driving school at the BMW Performance Center in Thermal, CA. Acura, which had previously discontinued stick shifts in 2015 released a manual Integra last year. More than 50% of people who purchased one were between 18-46.
4. Resting vs. testing
5K’s, half-marathons, and ultramarathons defined as any race longer than the standard 26.2 miles - who would do that? Apparently, a lot of people; global participation in ultramarathons increased 345% between 1996 and 2020. The London Marathon saw 410,000 runners sign-up for 40,000 spots. New York City saw 84,000 signups for 50,000 spots. Generally, registration for endurance races was up 16% last year.
Despite this, restorative wellness has never been more popular. From theraguns, to IV drips, to cryotherapy, and more, consumer interest in products and experiences that focus on doing less to heal more has never been higher. Percussive therapy device Hyperice is now a $1bn brand. In addition to Calm and Headspace, performance-based fitness brands such as Equinox and Peloton offer meditation modules within their apps. Technology-based sleep trackers such as Oura and Whoop have propelled sleep health into the world of experiences with hotels and wellness centers offering specific sleep holidays designed to restore and unwind.
5. Savvy sustenance vs. unguilty pleasure
It should come as no surprise that consumers want to eat more healthily. When polled, the statistics overwhelmingly back this up. According to a study by Deloitte, 80% of consumers say they try to eat a healthy diet. 55% say they would pay more for healthy/fresh foods. One-third try regularly try to eat sustainable foods.
In the US, health-focused dining/snacking outposts such as Sweetgreen, Juice Press, and Playa Bowls continue to open new locations, offering consumers a nutritious alternative to traditional grab-and-go options. In Latin America, major CPG companies such as Grupo Nutresa are releasing healthy snacking options such as Tosh granola bars, peanut butter and oats that promote a balanced diet and mind-body equilibrium.
Despite this, indulgence is all the rage. Even among the health conscious. Nearly half of all consumers stated that they are eating more comfort foods. Another report states that 85% of consumers eat at least one snack for indulgence each day. Citing “permissible indulgence” consumers believe that their predominantly healthy lifestyles justify their right to a daily “luxury” in the form of indulgent foods. In Latin America, Mont Blanc is promoting their Baileys chocolate with the tagline “double chocolate, double seduction.”
As consumers continue to live predominantly healthy lifestyles, they will give themselves permission to try the latest over-the-top indulgences as a reward and relief from stress.
To sum up
As product offerings and purchase habits evolve, consumers will continue to explore the spectrum of brand experience. In fact, it will be interesting to see how one end of the spectrum drives behavior towards the other. For example, if somebody binge watches a true crime series and listens to the companion podcast, digital fatigue may drive them towards reading a physical book for their next engagement with content. Or, after finally splurging on a pair of Oliver Peoples sunglasses, a consumer may opt for a more affordable pair from Goodr or Knockaround as their second pair. Again, the only certainty we can rely on is that more than one thing can be true.