Urban powerhouses
9 September 2024

The EIU’s latest African Cities 2035 report revealed that Africa is on the brink of a major urban revolution. With the continent’s population surging, Africa is officially the world’s fastest urbanizing region and, by 2035, its urban population is set to hit 1 billion (up from 650 million in 2023). Six African cities — Luanda, Dar es Salaam, Cairo, Kinshasa, Lagos and Greater Johannesburg — will each surpass 10 million residents by 2035. In fact, over half of Africans will call cities home, transforming urban centers into buzzing hubs of innovation, creativity and economic dynamism.

This urban boom brings its own set of challenges: overcrowding, informal settlements, stretched infrastructure and climate vulnerabilities. City planners are tasked with balancing rapid growth with sustainable, forward-thinking solutions 🌱

🌍 The bottom line: as Africa's cities swell, they’ll be hotspots for both wealth creation and social tensions. Opportunities and challenges will grow in tandem. So, city planner or not, how can you help young people thrive in these emerging megacities?

Mainstreaming anime
6 September 2024

Warner Bros. recently released the official trailer for the highly anticipated anime prequel in The Lord of the Rings franchise. The Lord of the Rings: The War of the Rohirrim explores events in Middle-earth 261 years before The Fellowship of the Ring, focusing on King Helm Hammerhand's defense of Rohan. Veteran actor Brian Cox, known for his leading role in Succession, voices Helm, while Miranda Otto reprises her role as Eowyn. Key LOTR veterans are contributing to the project, including Peter Jackson. The film is set for international release on 11 December 2024.

Anime has always been a popular subculture but was long considered niche and largely associated with otakus and weebs: both somewhat derogatory labels for Japanese subculture enthusiasts. In recent years, however, it has gained mainstream appeal. For one, streaming platforms offering anime titles, now with English dubs and/or subtitles, have significantly expanded the genre's global reach. In 2023, the most in-demand TV show worldwide was the anime title Jujutsu Kaisen.

Luxury brands in particular have also taken notice of anime’s increasing influence on the global stage. Brands looking to shift luxury goods from commodities into collectibles have turned to anime collaborations: Loewe x Studio Ghibli, Gucci x Doraemon, Jimmy Choo x Sailor Moon, and more. In turn, these luxury tie-ups further enhance anime’s cultural cachet, creating a reinforcing cycle of increasing popularity. Could your next brand opportunity for cultural partnerships lie with anime IPs?

More broadly: last week we discussed the record-breaking success of Black Myth: Wukong and the growth of Asian cultural properties on the global stage. The rise of anime as a medium for prestige culture is another example. What role can your brand play within the movement?

AI Rivalry
5 September 2024

Remember when OpenAI’s ChatGPT smashed records by reaching 1 million subscribers in just 5 days? For context, it took Netflix 41 months, Facebook 10 months and Instagram 2.5 months to achieve the same milestone.

⏩ Fast forward two years, and ChatGPT reached another milestone: 200 million weekly active users by August 2024, doubling its user base since November 2023. That’s edging in close on Netflix’s 278 million subscribers! 

📈 This surge follows OpenAI’s launch of the more affordable, advanced GPT-4o Mini model.

🏢 Not to mention, 92% of Fortune 500 companies now rely on OpenAI’s tools.

But OpenAI isn’t the only one hitting big numbers. According to Mark Zuckerberg, Meta AI now has 185 million weekly active users. Anthropic’s Claude, meanwhile, reached USD 1 million in mobile revenue in just 16 weeks — though ChatGPT achieved that milestone in 3 weeks.

As ChatGPT and other AI assistants become part of everyday routines — following in the footsteps of binge-watching Netflix and searching Google — the question is: how can you harness the advances of the LLM oligopoly while also tapping into (and backing!) local and purposed innovators who might be more closely aligned with your needs and values?

Social fabric
5 September 2024

A report by German supermarket giant Edeka — its fifth annual survey of neighborhoods across the country — reveals a complex picture of social cohesion. While three-quarters of respondents perceive significant division within German society as a whole, this sentiment doesn't necessarily translate to their immediate surroundings. In fact, 64% of those surveyed report little to no polarization within their own neighborhoods.

The study highlights a potential antidote to societal fragmentation: community engagement. A majority of Germans (also 64%) believe that neighborhood involvement can have a positive impact on social cohesion. This optimism is reflected in the willingness of 75% of respondents to consider future social engagement in their communities. 🛠️ Interestingly, the survey found that individuals who are already actively involved in their neighborhoods tend to perceive less societal division overall.

Polarization continues to intensify, and Germany is no exception — just this week, AfD became the first far-right party to win a state election in the country since World War II. From elections to heated debates over social and environmental issues, many countries are grappling with ideological divides. Edeka's research suggests that fostering connections at the most local level could be a powerful tool to combat polarization. Without necessarily taking sides, brands can play a role in promoting local engagement as a counterbalance to societal divides. One to get started on asap?!

See Edeka's five tips for residents seeking to strengthen neighborhood bonds
Mental (mis)conceptions
4 September 2024

Gen Z has fully embraced being in their feelings. 'Therapy speak' is ingrained into young adults' everyday vernacular, especially in online spaces. While many health professionals argue destigmatization can lead to positive health benefits, there's also concern that the high cost of in-person therapy sessions means many young people rely solely on digital resources.

Mental health content on TikTok has surged in recent years, but over 83% of related advice on the platform is misleading, which could exacerbate cyberchondria. Solutions like BetterHelp have also attracted controversy — the US Federal Trade Commission found that the telehealth provider sold patients' sensitive health information to companies like Facebook, Snapchat and Pinterest.

Additionally, online discourse about mental health trivializes experiences that can be truly debilitating and can normalize issues that shouldn't be (case in point: some social media users made light of psychiatric hospitals). While Gen Z now has a vocabulary for describing how and what they're feeling, pop-psychology shortcuts can lead to false and harmful self-diagnoses and thwart genuine, deeper conversations.

The conclusion? More words don’t always lead to better, clearer and more honest dialogue. Whether your brand wants to provide mental support or get Gen Z talking among themselves, consider these three trends:

📣 COMMON TONGUE: Use lingo that inspires empathy rather than superiority and utilize platforms that are already Gen Z native. Despite the generation being chronically online, some conversations are best left face-to-face.

🤖 OPTI-BOTS: Consider how you might provide e-relief to those who can't always discuss their concerns with friends. If all else fails, they could also turn to their future self for advice.

✅ FACTUAL HEALING: Help discern medical fact from fiction and ensure your own activations are trustworthy in terms of advice and privacy, too. Get your next initiative reviewed by teens (and health professionals!) and guarantee data security, especially when it comes to sensitive topics.

Free-time fears
2 September 2024

Older generations might accuse Gen Z of having a limited work ethic but, in reality, what it means to be ‘productive’ is evolving. A recent Ipsos survey revealed that 48% of Gen Z in the US worry about not using their free time productively, compared to 34% of all generations combined. They’re more concerned about boredom (37% vs. 26%), affording hobbies (39% vs. 26%) and choosing a vacation that lives up to their dreams (18% vs. 9%).

Stops and starts
29 August 2024

🚖 Waymo, Alphabet’s autonomous vehicle arm, just hit a major milestone: 100,000 paid robotaxi rides per week across Los Angeles, San Francisco and Phoenix – a 100% increase from earlier this year, with more expansion in the works. As for the competition, Cruise, General Motors’ autonomous vehicle division, is shifting into high gear with a multi-year partnership with Uber. Starting in 2025, Uber users will be able to book a Cruise robotaxi. While Waymo and Cruise race ahead, Tesla appears to be falling behind, repeatedly postponing its robotaxi rollout.

Safety last? 🤔 As the US accelerates toward a driverless future, safety concerns continue to slam the brakes. Sometimes literally. Cruise's deal with Uber marked a significant comeback after a major accident in SF last year temporarily halted operations, but GM just recalled nearly 1,200 Cruise vehicles due to unexpected braking. No wonder claims by China’s Pony.AI that its robotaxis are 10 times safer than human drivers are boosting adoption rates. (The latest Waymo robotaxis hitting SF streets are made by Zeekr, a Chinese electric vehicle manufacturer.)

✨ Whether or not the nuts, bolts and software of autonomous vehicles are all in place, robotization is here. And it's not just cars. Consumers are increasingly craving automation-fueled experiences that offer convenience with a touch of magic.

Tween taste
28 August 2024

Beano Brain has released its Coolest Brands 2024, gathering 55,000 responses from kids and teens aged 7 to 14 in the US and 45,000 from those in the UK, asking them, "Which of these brands do you think is cool?"

For anyone who has recently interacted with kids in that age group, it won't come as a surprise that YouTube tops the list of fave brands in both countries. The platform retained its position in the US from last year, while in the UK, it bumped Netflix off the throne. Netflix now comes in second in both countries, and Nintendo, Nike, Oreo and Lego made the top 10 on either side of the Atlantic, too. A few insights:

▶️ For Gen Alpha, YouTube is everything. It's where all of their interests can be summoned with a tap, from live gameplay and toy reviews to DIY crafts and their favorite songs. For this generation, YouTube isn't just a platform; it's a gateway to entertainment, education and influencers who feel like friends.

👣 The highest mover in the UK, up by 35 places to number 49, is Crocs. Besides being ultra comfy and easy to slip on, Crocs charms add an element of self-expression as well as the fun of collecting, bolstered by their availability on Shein and Temu at a fraction of the price of official Crocs Jibbitz.

🧴 In the US, teen and tween obsession with skincare helped two brands enter the list: Sephora, riding the coattails of Drunk Elephant, Summer Fridays and Glow Recipe (and the prejuvenation trend), and Bubbles, whose formulations are actually geared to young skin.

Coming out
26 August 2024

🎶 ‘I’m coming out…!’ 🎶
When Diana Ross sang those iconic words in 1980, the song instantly became an LGBTQ+ anthem, in the same way James Brown’s ‘Say It Loud – I’m Black and I’m Proud’ became a rallying call for the Black community in 1968. Fast forward to 2024 and the landscape of coming out is shifting.

What’s happening?
LGBTQ+ adults are coming out at younger ages. A Gallup survey in the US revealed that the youngest LGBTQ+ adults (18-29) come out at a median age of 17, compared to early 20s for those aged 30 to 64, and 26 for those 65+.

Why the shift?
Today’s youth are recognizing their identities earlier. The median age of self-awareness is 14 for those aged 18-29, 15 for those 30-64 and 16 for those 65+. Plus, 70% of both LGBTQ+ adults and the broader US population agree that societal acceptance has improved over the last decade.

Going damp
23 August 2024

The global shift toward cutting back on alcohol is gaining momentum. In Ireland, the iconic Guinness pint is being swapped out, and in the UK, football fans are reaching for nolo beers. Even Japan’s brewing giant, Asahi, predicts that by 2040, half of its sales will come from no and low alcohol drinks... 🍻

In the US, Gallup reveals that today’s young adults drink far less than their early 2000s counterparts. Why? 65% of people aged 18-34 believe alcohol harms health, compared to just 37% of those 35-54 and 39% of those 55+. It’s the biggest generational gap since 2001.

Health isn’t the only factor — rising alcohol prices are a boozekill, too 💸

Yet, the social side of drinking is deeply ingrained, and capable of transforming introverts into social butterflies for the night. So, as more people embrace 0.0%, it's time to reimagine the concept of social drinking. Early adopters? Munich, synonymous with beer, now has Die Null, its first alcohol-free beer garden, while Athletic Brewing has become soccer club Arsenal’s first Official Non-Alcoholic Beer Partner.

Cautious consumers
22 August 2024

The so-called 'millennial lifestyle subsidy' — convenience offered at low prices by a slew of venture capital-backed apps and services — is coming to an end. No more free money means apps are raising prices, while higher interest rates (and inflation) are also cutting into consumer spending power. Many are still happy to pay for convenience, as witnessed by strong Q2 earnings posted by Instacart and DoorDash.

Others, once accustomed to cheap rides and meal deliveries, are now seeking alternatives. Reporting on the shift, Business Insider describes 31-year-old Sarah Manley facing sticker shock: "If I was using rideshares and the delivery apps and everything the way I was, I would run out of money each month," she says. Some people are ditching delivery and reverting to old-fashioned, pre-app shopping habits; others are getting creative and thrifty, comparing prices across platforms and using public transit more often.

Companies are refining their pricing models and strategies, too. Bilal Baydoun of the Groundwork Collaborative warns that dynamic pricing could become more widespread, making budgeting difficult for consumers: "It's making people miserable to not know what things cost." As businesses pursue new pricing tactics, customer loyalty may erode (or worse, as witnessed by the backlash against supermarket Kroger for alleged price gouging by way of electronic shelf labels). The good news? Caution and concerns create space for empathic brands to demonstrate they understand the plight of value-focused consumers.

Involved iteration
20 August 2024

Brands have been co-creating products and services with customers for decades. The concept is gaining fresh momentum in the form of open beta testing, with various brands ‘launching’ semi-baked products and inviting consumers to help adapt and refine. 

Why now? On the one hand, it’s a transparency play from brands looking to build strong, trusting relationships with consumers. And on the other, it reflects the growing presence of generative AI, which consumers are increasingly using to (wildly) reimagine existing brand offerings however they please.

A couple of recent examples that demonstrate how brands are tapping into consumer preferences and creativity for involved iteration:

  • MM:NT Berlin Lab defines itself as a beta-hotel and the world’s first and only ‘hotel laboratory’. The highly digitized property opened in July 2024 with the intention of learning more about consumer preferences and behavior over time – information it will then leverage to continually tweak and improve the guest experience both in Berlin and in future hotels it plans to open. 
  • KFC Philippines recently launched a campaign inviting consumers to use an AI-powered image generator to create Meta stickers of their dream KFC snacks. After gathering countless data points on consumer preferences, the brand selected 11 of the most innovative ideas and rustled them up IRL. While KFC’s snacks were just prototypes to be enjoyed by the winners, rather than consumer-facing products, the initiative reveals how gen AI is becoming a valuable testing ground for brands who are brave enough to engage with it.

Is it time to rethink your launch strategy? Whether or not you make AI part of the mix, bring consumers into your product development process by involving them in your earliest iterations.

Influencer pay gap
19 August 2024

SevenSix Agency’s 2024 Influencer Pricing Report revealed significant pay disparities 📉 among UK creators:

  • White creators earn 45% more on average, bringing in GBP 1,637 per sponsored Instagram Reel
  • That’s 34% more than Black creators, who earn GBP 1,080 on average
  • South Asian creators make GBP 1,135 (-31%)
  • East Asian creators earn GBP 1,009 (-38%)
  • Southeast Asian creators see the lowest earnings at GBP 700 (-57%)

This goes beyond ethnicity — hair texture, age, skin tone and disability also affect pay. Preexisting biases might have crept into the creator economy, but consumers are clamoring for more diverse content...

Gen Z, the most multicultural and queer generation yet, isn’t content with homogenous influencer line-ups. They want to see niche creators who truly reflect their experiences. For brands, this goes beyond checking a DEI box and token representation — connecting authentically with Gen Z means showing real support for marginalized voices. As the creator economy continues to grow, how will you help bridge the pay and opportunity gap?

TECH VS TOUCH IN RETAIL
15 August 2024

Consumer enthusiasm for tech-powered shopping is big — whether it's social commerce 🛍️, in-game buying 🎮, AR try-ons 🕶️ or AI-driven recommendations 🤖. But there's one thing tech can't replace (yet): the power of touch. The latest EY Future Consumer Index, published in July 2024, confirms this:

  • 57% of consumers across 30 countries still crave to see, touch and feel products before buying
  • 32% continue to value the personal service that only in-store shopping offers
  • 68% seek expert advice for high-value purchases to make the most informed decisions

It’s a balancing act: while 68% of consumers love AI-curated offers, 49% are frustrated by ineffective chatbots and 33% worry about biased AI recommendations... ⚖️

The silver lining? Leverage tech as a sidekick, but keep human interaction front and center. Take Target, which is rolling out a gen AI-powered chatbot to empower retail staff, ensuring top-notch customer service.

🎯 So, how will you blend tech and human touch to create the ultimate customer experience?

AI genies
12 August 2024

Since the launch of ChatGPT nearly two years (!) ago, the global appetite for outsourcing everyday tasks — both professional and personal — to technology has surged. Looking ahead, Dentsu's June-published study finds that nearly half (49%) of consumers worldwide say they’d like to have an AI clone to manage shopping, administrative tasks and communication by 2035. In APAC, this figure climbs to 62%. 👥

Asian consumers’ enthusiasm for AI is supported by another study from McKinsey, which found that 16% of global consumers regularly use gen AI outside of work, rising to 30% in APAC. That report also found that Gen Z are early adopters, with 31% utilizing AI for daily life hacks — from home décor suggestions to crafting travel itineraries. Many expect AI to offer expert advice, replacing traditional consultations.

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