IPG Group’s managing director, Terry Peigh, revealed the ‘New Realities’ report in Mumbai on 26 September.
The six-country (India, USA, Russia, Brazil, China and South Africa) study looks at purchasing attitudes and habits of consumers.
The study which was conducted in India along with FCB India, revealed that consumers are trusting influencers lesser than they were before. This has led to brands in the United States of America like Glossier and Macy’s adopting different modes of marketing.
Peigh said, “Glossier treats regular people like influencers. All of its marketing comes from users. It treats customers as a demographic to be marketed to and marketed by. Macy’s on the other hand uses its employees as influencers.”
Peigh also revealed ‘new forces, challenges and beliefs’ that are impacting the marketing world.
- Focus is shifting to the need/value of marketing and supporting the customer longer term.
- Previously the focus of marketing was on ‘convincing’ and ‘selling’. Now there’s a new direction. Like Jeff Bezos says - “We don’t make money when we sell things. We make money when we help customers make purchase decisions.”
- Focus is on the user experience and how that gets passed along to others.
- Focus shifting from what you say about your product to what your customers say to each other.
- Need to continue communication with the consumer after the purchase.
- Social issues are critical in defining and giving meaning to products.
- Now, consumer trust is perhaps the most critical item to track and improve.
- ‘Return on reputation’ is a key metric. Puts trust development at the center of all marketing discussions.
- Brand transparency is key to building and retaining trust.
- Private labels and store brands are becoming a major force around the world.
- Branding is not associated only with the marketing department of a company.
Some other findings from the report:
- 81 per cent of Indian consumers are holding brands to a higher standard.
- 65 per cent of Indian consumers state that their knowledge about certain brands enhance their self-esteem.
- 61 per cent Indians regularly initiate conversations with friends about brands .
- Consumers globally are spending more and more time considering their purchase. 39 per cent Indians need 'more time', 37 per cent are spending 'some time' and 24 per cent are taking 'less time' before purchases.
- Brand trust is gaining prominence. People are 2X more likely to buy products, stay loyal, advocate for the brand and defent it when things go wrong. 77 per cent of the consumers in India are looking to seek out trusted sources of information and they trust media lesser than people.
