Consumer Trends Shaping the Future of Homes and Community. Presented by Colleen Sharp, Vice President January 19, 2017
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1 Consumer Trends Shaping the Future of Homes and Community Presented by Colleen Sharp, Vice President January 19, 2017
2 We help our clients profit from change Start with the consumer Be future-focused Take the reins to UNDERSTAND with greater clarity what s happening and why to ANTICIPATE the future with greater certainty to SHAPE your business with greater confidence 2
3 Trends Shaping the Future of Homes and Community Life, Digitally Remastered The Big Blend Big Tent Branding The Big Blend 3
4 4 4
5 2005 KANTAR Kantar FUTURES Futures St. Peter s Square, election of Pope Benedict XVI, April 19,
6 2013 St. Peter s Square, election of Pope Francis, March 13, 2013 KANTAR Kantar FUTURES Futures
7 7.3 BILLION BILLION Projected 7 7
8 Uber-like business models for everything $4.8B+ invested to date in on-demand start-ups including $2.2B+ in past 12 months SOURCE: BUSINESS INSIDER 8
9 Controlling my day, tracking my world, reducing my impact 62% 65% 60% 43% KANTAR FUTURES % 28% 45% Total Millennials Xers Boomers African Americans Hispanics Asian Americans I wish I had more ability to monitor my home via my mobile device (vs. currently have remote home automation products) 36% Non-Hispanic White 79% I am paying more attention to the energy and resources that I use in my home on a daily basis than I have before (2016 MONITOR Home Study) 9 9
10 KANTAR FUTURES
11 The evolving American identity From this To this Our standard demographic categories are falling apart. William H Frey Brookings Institution 11
12 The triumph of individualism Everybody should be free to do their own thing 69 % 65 % 70 % 70 % 69 % 67 % 67 % 79 % Millennials 80 % 83 % Xers 71 % 82 % Boomers 66 % 76 % In the future, it seems, there will be only one ism individualism and its rule will never end. Ross Douthat New York Times SOURCE: 2014 U.S. Yankelovich MONITOR KANTAR FUTURES
13 Identity is more dynamic ETHNICITY GENDER LIFESTAGE 13
14 Dynamic Identities: Polycultural & Culture-grafting CULTURALLY BLENDED High Openness & Low Attachment 32% 37% LESS ATTACHED ACULTURAL Low Openness & Low Attachment 21% 9% LESS OPEN MORE OPEN POLYCULTURAL High Openness & High Attachment MORE ATTACHED MONOCULTURAL Low Openness & High Attachment 14
15 Dynamic Identities: Polycultural & Culture-grafting DYNAMIC IDENTIITIES Spice Kitchen Option, Riverstone MPC, Sugarland, TX 15
16 Dynamic Identities: Putting Singles First Median age at first marriage % married at age Millennial (2013) 26% Gen X (1997) Boomer (1980) 36% 48% Mature (1960) 65% Mean age at first child: 1980: : 25.8 Women Men First births among women and 40-44, especially single women, continue to rise. U.S. Census Bureau;; Pew Research Center;; Centers for Disease Control (1) (2) (3) 16
17 Dynamic Identities: EmpowHER Single females are the largest group of homeowners (after married couples) They are also more likely to pay more for their mortgage yet default less than single males Housing Finance Policy Center Urban Institute, September 2016 The dimensions we rely on to assess credit risk today do not adequately capture all the differences. This omission has real consequences. Women generally are denied for mortgages more often despite their superior payment performance. Laurie Goodman, Urban Institute 17
18 Dynamic Identities: How We Use SPACE Living space is being radically re-engineered to transform old constraints into inspired lifestyle solutions. KANTAR FUTURES
19 Consumers are looking for greater flexibility and ease I wish I had more flexible spaces or rooms in my home that could be used for multiple activities without much hassle or effort to reconfigure them I m always looking for ways to make my home easier to care for or maintain 74% 71% 53% 86% of Boomers Millennials Xers Boomers 2016 MONITOR Home Study 19
20 Dynamic Identities: How We Use SPACE Consider the concept of Usable Footage to replace square footage as the new metric KANTAR FUTURES
21 BIG TENT BRANDING KANTAR FUTURES
22 Convergence of many changes leading to a longing for belonging Increased volatility in the world Demographic shifts are creating new consumer groups and needs, blurred boundaries Individual Ownership declining (cars, homes, stuff ) Rise of sharing economy enables having without owning Enabled by ubiquitous technology Creates a need for relationships (to execute commerce, to find commonality and a shared narrative INDIVIDUALITY COMMUNITY 22
23 An abundance of individuality creates a scarcity of community. One of the most significant changes in the U.S. is the decay of middle ring relationships. These involve people who are not as close as kith or kin, but not as distant as a mere acquaintance. 58% 2015 I wish I had more people in my life I could rely on when I am in a jam KANTAR FUTURES 2017 THE FUTURES COMPANY
24 Consumers are looking for something to bring them together, to help them get more engaged and involved. I should be doing more to help my local community Feeling connected to my community is a sign of success and accomplishment 59% 67% 65% KANTAR FUTURES 2017 The Futures Company s 2016 US Yankelovich MONITOR 2724
25 Big Tent Branding can create that sense of Community And Communities can offer the Big Tent to those longing to belong KANTAR FUTURES
26 Using MindBase to Uncover and Develop Community Identity Annual study of broad consumer attitudes 1 10,000 sample size nationally representative and projectable MindBase segmentation developed from MONITOR and updated regularly Scored on national consumer database of 260MM adults 26
27 Trends Shaping the Future of Homes and Community Life, Digitally Remastered The Big Blend Big Tent Branding The Big Blend Acceleration of Change Uber-all Economy Control vs. Convenience Dynamic Identities EmpowHER Space Remixed Longing for Belonging Expansive not Exclusive Uncover and Create Community 27
28 Thank You COLLEEN SHARP Vice President
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