Public Relations & Social Marketing Insight

When a book telling people to throw away almost everything they own becomes a best seller and the start of a spiritual movement, it’s a good indication we’re consuming too much. But it’s hard to reconcile this idea when so many families, even in some of the world’s most durable economies, feel like they are barely getting by.

Households have never had so many material goods, yet we hear constant reports of economic anxiety and feelings of hopelessness.

The problem is livings standards. Our expectations of what we should own have increased—but incomes, for many of us, haven’t kept up. The disconnect leaves households vulnerable and struggling.

There is no doubt living standards are rising. People around the world, of all income levels, are living longer, finding more leisure time, and enjoying more luxuries than at any time in history. Remember, only 30 years ago, air-conditioning was a luxury. Now it’s practically seen as a necessity....

Much has been written about “millennials” and much of it makes sweeping assumptions, often representing this vast group as “the yoof,” a homogenous bunch of bright young things with idealistic worldviews and a love for over-sharing on social media. However, since the term was first coined, sections of this group have become proper grown-ups, albeit of a slightly different sort than the generation before. They aren’t the buyers of tomorrow; they are the buyers of today. Some are running proper, functioning companies and not just aspirational start-ups with their friends. Some are even doing both of these things and succeeding. Some are already political leaders, parents and professors.

“By 2017, the “millennial” generation is expected to outspend the baby boomers, according to a study by Berglass + Associates recruiting firm.” - CNBC

All this means that when it comes to luxury or premium brands, the millennial mindset and lifestyle isn’t something to consider for “future-proofing” workshop exercises; it’s something to act upon now. Those who don’t technically fit within the demographic are being influenced by the “millennial way,” either as their parents or as colleagues. Therefore, any brand looking to maintain or move into a premium or luxury space needs to take note and act fast. Let’s look at some of the key characteristics of this group and then explore the implications when it comes to brand design, experience and communications....

In 2007, 10,000 people around the globe were asked about portable digital devices. It was part of a study conducted by the global media company Universal McCannMcCann.

...There’s a growing feeling that something is not working with market research, where billions are spent every year but results are mixed at best. Some of the problems relate to the basic challenge of using research to predict what consumers will want (especially with respect to products that are radically different). But marketers face one additional key problem: Study participants typically indicate preferences without first checking other information sources—yet this is very different from the way people shop for many products today.

In the Universal McCann study, for example, people were asked how much they agree with the statement, “I like the idea of having one portable device to fulfill all my needs.” Indeed, there was a significant difference between the percentage of people who completely agreed with this statement in Mexico (79%) and in the United States (31%). So, in theory, people in the United States were much less excited about a phone that’s also a camera and a music player.

But it was a different story when people got closer to making a decision. They heard about the iPhone in the media, where it was declared a revolutionary device, and read blogs and reviews from real users. As iPhones started rolling into the marketplace, the idea of “having one portable device to fulfill all my needs” was replaced by actual reports from users....

So why is this? Why do some societies not encourage casual smiling? I got my answer, or at least part of one, when I stumbled across a new paper by Kuba Krys, a psychologist at the Polish Academy of Sciences. In some countries, smiling might not be a sign of warmth or even respect. It’s evidence that you’re a fool—a tricky fool.

Krys focused on a cultural phenomenon called “uncertainty avoidance.” Cultures that are low on this scale tend to have social systems—courts, health-care systems, safety nets, and so forth—that are unstable. Therefore, people there view the future as unpredictable and uncontrollable.

Smiling is a sign of certainty and confidence, so when people in those countries smile, they might seem odd. Why would you smile when fate is an invisible wolf waiting to shred you? You might, in those “low-UA” countries, even be considered stupid for smiling.

Krys also hypothesized that smiling in corrupt countries would be, um, frowned upon. When everyone’s trying to pull one over on each other, you don’t know if someone’s smiling with good intentions, or because they’re trying to trick you....