Welcome to 2024!
How was your Year 2023? No matter what happens, 2023 will be history very soon. Let’s wish for a happy 2024.
I have five predictions for consumers in 2024. As usual, I welcome your feedback. Please share your thoughts.
Prediction 1: Consumers may still spend their money cautiously.
In 2023, consumer confidence level in major economies (such as USA and the Euro Area) was low, although it gradually improved over the year. (Data source: Trading Economics)
Disputes between Russia and Ukraine, as well as Israel and Palestine, are going on. On the other hand, interest rates in major economies are still high, making it costly for consumers to borrow money.
In 2024, I predict consumers may still spend their money cautiously. Consumers need a strong reason to spend on luxury items or a premium on necessities. What may be seen is a rise in private-label products.
At the same time, group purchases may be more popular because they offer special discounts to consumers.
Prediction 2: Consumers may celebrate more than ever.
Although consumers spend cautiously, they may celebrate more than ever.
Remember, the Paris Olympic Games will be held in the summer of 2024. This will be the first Olympic Games after Covid-19. People have stronger motivations to travel across borders and celebrate their national pride after travel restrictions.
What may happen in 2024 is an increase in cross-cultural interactions, making consumers more desire to learn more about other countries.
Besides, to celebrate national pride, small gifts and rewards may become popular.
Prediction 3: Consumers may redefine beauty.
Consumers not only celebrate national pride but also who they are. Consumers embrace different aspects of beauty.
The 2023 Miss Universe contest saw the first ever plus-size contestant, who eventually became a semi-finalist. (Read this article from Fox News.)
Meanwhile, plus-size models are also becoming more popular than ever. (Read this article from InStyle and this article from Glamour.)
Fashion brands have started to understand the importance of representation on the runways. Instead of solely listening to professional advice from fashion and beauty KOLs on social media, consumers have become more confident in sharing their viewpoints about beauty.
Consumers have also started to accept they are not perfect.
In 2024, I expect this trend may continue. Consumers may have more conversations with fashion and beauty brands to redefine beauty standards.
Photo generated by Adobe Firefly.
Prediction 4: Consumers may use Artificial Intelligence to make purchase decisions because of stronger exposure.
As of December 30, 2023, there are nearly 11,000 AI tools available for people to use. (Data source: There’s An AI For That)
However, according to a BCG survey published in September 2023, more than 50% of the global executives interviewed still discourage generative AI adoption. They have concerns with the limited traceability of the data sources, and hence high possibility of making wrong business decisions.
Despite all these concerns among executives, I expect more people may use AI in everyday work. A PwC study reveals that AI can contribute up to $15.7 trillion to the global economy in 2030.
As a result of stronger exposure, consumers may even use AI when making purchase decisions. Now an easy way for them is to chat with ChatGPT. Perhaps one day there will be a new tool that can read consumers’ minds and suggest what to purchase based on consumers’ behaviors, personalities, and so on.
That may sound exciting. Yet, before all these excitements, let’s take one step back. Will marketers use AI as a marketing and communications channel? If so, will they use AI to promote their brands ethically?
I expect there may be more discussions about the proper use of AI, or even legislation.
Prediction 5: Consumers may live in a simple lifestyle.
In 2023, sustainability continues to be a hot topic with growing interest in Google Search, according to Google Trends.
Very interestingly, we do not see an uplift in people’s interest in different environmental issues such as global warming and air pollution.
With ongoing education from governments and companies in previous years, public awareness of sustainability has been growing quickly. Sustainability has been an indispensable part of everyday life. Consumers take action to reduce waste and buy sustainable products unconsciously.
What may continue to happen in 2024 is that consumers will choose a simple lifestyle for themselves: buying fewer but better, buying products with fewer decorations, lighter materials and reduced packages, or checking their carbon footprint.
As 2023 is coming to a close, I wish all of you a happy and prosperous 2024. Take care and all the best.
Vincent
Vincent Kwong 
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