Don't discount the power of a shopper's desire to find that special something at rock bottom prices. While most thought it would be high-tech, computers and smart phones are no longer the key items shoppers crave. It's not just about saving money anymore in fact an average American household will spend 11 percent more in 2022 than they did in 2016. As more people start to travel more, vacation time has become collateral damage in the quest for a bargain.
Instead of technology savvy shoppers, the 2022 consumer is going to be looking for a bargain on luxury household items and home improvements. They will also be seeking high end automotive brands that they don't need but can afford because they are looking for status. What they really need and want, but can't afford are now only going to be a dream.
This means that you will be targeting the high end luxury consumer who is more interested in status than prestige however they still love bargains. Getting on the list of preferred vendors for large retailers will also increase your visibility to the new high end consumer.
Vacation time has increased by 15 percent between 2016 and 2022. During this time the average per household expense will be $4300 which is more than twice normal spending habits for an American household in 2016 according to a recent report from the Bureau of Economic Research located in Washington DC. As people start taking longer vacations away from home, like cruises and long road trips, vacation costs are no longer negotiable.
Some of the hottest products at this end of the market will be luxury automobiles that consume fuel too quickly to drive for a 5 hour duration but are still desired by consumers as status symbols. The challenge is going to be in convincing these consumers that they need your high-end product.
There will be an increase in non-flying vacations, mostly bus and train trips for the first time since 1949. Unfortunately trains are going to want a luxury experience as well or people just won't board them. This means that there is a huge influx of money available for tourism advertising and campaigns. You will want to partner with the railroads and bus lines in order to get access to these consumers.
As people pay more for travel they are going to be looking for great deals on hotels, limos and restaurants. Non profit groups trying to attract business travelers will also need this information but don't have as much money available as a luxury hotel chain.
People are going to be spending more money on home repairs, upkeep and improvements. In a recent study by the Bureau of Labor Statistics in Washington DC, 71 percent of people spend less than $500 per year on home maintenance. This means there is a huge pool of money available for local contractors that can educate their clients about their services.
Consumers will be looking for a well reviewed contractor that they can trust to get the job done. Since these jobs are all around $500 or less, any service that helps them find a good contractor could see an increase in business of over 30 percent per year between 2016 and 2022. It's also important to note that this is going to be growing market in a growth economy and the fact that there might be money available will attract other businesses who are looking for success.
As the technology market continues to grow there will still be consumers that don't want an app on their phone or to upgrade their operating system every time Apple releases a new product because they see little value in it. This is going to be the first generation of consumers who find value in doing the bare minimum and not upgrading when a new technology comes out if there are no real benefits that they see in using the product or service.
When creating services, products and branding for this group of people, you are targeting people who don't have brand loyalty, are more price sensitive than convenience, and who would rather have an experience bought from local businesses than online. This group is going to see the largest drop in disposable income overall though so you will need to be able to pinpoint what really matters for this group of people and then figure out how your product or service can solve that problem.
In order to get access to this group of people, you will need to speak directly to them. It won't be enough for your ad team or marketing department to research the market and create an ad campaign with a high dollar value. You will want to invest in creating direct relationships with these consumers.
Other businesses are going to start providing services because they think they will get access to this group of people. It's going to be harder to market directly to them because you're up against local businesses and other companies that might have long standing personal relationships.
Most importantly, the only way a company like yours is able to succeed with these consumers is if you truly understand their values and create a product or service that embodies their values.
You will also need to partner with other businesses in order to provide a higher level of service than the local competition. Since these consumers are not loyal and not brand driven, you're going to need help with fulfillment, logistics and communication. It's very possible that none of your customers will ever see or meet you or your employees.
To summarize, by 2022 the market will be split between the majority of consumers who are loyal, brand driven and value convenience and then a smaller group that is less likely to spend money on upgrades or services.
The overall trend is going to be an increase in spending on home improvement projects, transportation services and local vacation planning because this will be the most affordable way for people to gain experiences in an economy where everything is more expensive.
This consumer group will be looking for a unique and personal experience that has real demonstrative value in their lives, not just another app on their phone.