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Through 2030, values-based consumption rises among the increasingly prosperous middle classes of emerging markets, and they look to brands for cues. Ethical and ideological concerns carry more weight in brand choice, partially edging out value-for-money and conspicuous consumption as drivers.
What’s driving this forecast…
- Growing middle classes. Global middle classes are adding hundreds of millions of increasingly wealthy and educated people.
- Brands as status. Brands convey status for millions in the world’s emerging middle classes.
- Ethical consumers. Consumers around the world view themselves as socially responsible and want to reflect this in their purchases—and they can afford to do so.
- Rising transparency. Companies’ activities are increasingly transparent in a networked world connected by mobile phones and social media.
What this means for companies…
- Rising role for CSR. This trend will extend the reach of corporate social responsibility (CSR) as it expands in high-growth markets. Brands tied to culturally aligned values may get a boost.
- Regionally distinct causes. The standard causes of CSR for developed-world consumers (such as labor conditions or rainforest preservation) may not be the ones that take precedence in emerging markets. For instance, corruption might be a more prominent concern.
- New tokens of status. “Ethical consumption” offers new approaches to status that can replace or augment traditional luxury categories.
- Clashing values. Values-based buying may be at odds across markets, with consumers in one market wedded to values that upset those in another, potentially putting companies in the middle. For instance, cultural conservation might clash with animal rights.
For more on the future of brands and branding, see our report The Future of Brands 2030.
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