Farnaz on Featured, New World People, New World Companies, New World Strategies, New World Trends, New Realities
Happy new year. I really don’t know of anyone who is sad 2012 is over—are you? We’ve had another tough economic year filled with so many predictions and prophecies that didn’t come true–and some did. As we start 2013, pundits with crystal balls start forecasting trends everywhere…top 10, bottom10 …hey, I did my own last year. But this year, I realized that I’ve been among many reading and analyzing trends all year. What am I expecting or forecasting to happen as the clock turned at midnight on January 1st? Are we confusing trends and forecasts with new year’s resolutions, or simply creating a marketing need?
Unlike new year’s resolutions, most meaningful trends are long lasting, creating long term evolutionary changes. So this year, instead of adding to your long list of bookmarks of what’s hot and new, I’d like to give you 3 simple key issues that have been of critical importance these last few years that were ignored by most….and still remain critically important in 2013 and beyond. That isn’t to say that you should ignore trends and forecasts, but instead of staying glued to your rear-view mirror, you need to start using your peripheral vision and address these 3 key issues for your company in a meaningful way in 2013. What better way to predict the future than to create it yourself. Ignore and blow off at your own peril, but at least take a quick look:
Economy trumps other emotional needs: The world has been in an epic economic crisis since 2008. Economic forecasts may vary slightly from year to year, but a full recovery is still far away. More importantly, economy continues to be top of mind issue for people in general—not just business people concerned about taxes and fiscal cliff, but also consumers who want to know what your company can do to pitch in and make their lives a little easier. Unless you represent a luxury brand, you should get moving. You don’t have to be the giant Starbucks focusing on driving job creation through small business loans and housing financing…I don’t know how that program is working for them, but it’s highly visible and talked about. But at the very least, your marketing campaign should tie-in and relate to your consumers’ needs and expectations during tough economic times. Economy and price are no longer rational decisions, they are very much an emotional need and decision that needs to be addressed in a meaningful way in your marketing campaign. Simply dropping your price is as just as dangerous as passing all your operational cost increases to your customers. Price relative to your competition is a strategic decision that should not only accompany a re-evaluation of your delivery systems, but also a marketing communication strategy that tells the story of your brand relationship to your customers.
Step into The New World Marketplace: If you’ve ignored my top 3 major macro trends so far, you no longer can afford to do so in 2013. Women, youth and multiculturalism are shaping our future. If you were following our recent Presidential election closely, you’d know that despite our tough economy, these 3 macro trends led to President Obama’s re-election. Women are 50% of work force, 51% of population and control 85% of consumer buying decisions…Gen Y is 3x the size of Gen X, soon to be the majority of work force and your consumers, and the most diverse generation in human history….for every 2 men graduating from college, 3 women are and with better GPAs….1 out of 4 kids being born in the US has a parent who is an immigrant…multicultural population accounted for ALL of the US under-18 population growth in the last decade and in just 12 years (2025) more than half of US families will be multicultural (excerpts from The New World Marketplace). If you haven’t re-evaluated your target yet, do so now. Are you still treating women, youth and multiculturalism as a marketing niche or segmentation add-on?
Differentiate authentically: Growth of digital communications and technologies have changed the marketing game for some time now. We are continuing along that path, and there will always be something new every hour–and that’s not a new trend in 2013. Your consumers have so many choices, so many alternatives, and so much control, and they see the world so noisy that they can’t hear or see you. They are in hot pursuit of truth and authenticity and willing to engage with you if you are. Differentiation is always a strategic gate keeper for success, but it is no longer enough just to differentiate—because people and companies spin, exaggerate and lie. So the consumers may not believe you when you say you are better or different. Proof is only useful if it leads to belief. You have to gain their trust, attention and engagement by holding true to core values and principles through authenticity and transparency. Only then, you can change your customers’ beliefs and consumption behaviors…and are ready to chew gum and do social media at the same time.
I know…I know…. I gave you a list too, because I’m a marketer at heart and I want you to open and read my blogs (see I’m being authentic and transparent). But it’s only 3 things that you should remember….3 key issues that should’ve been addressed by now, and are critical for your success in 2013.
I often talk about “negating stereotypes”…..even devoted a category on my web site to it. Recently, I realized there are just as much stereotyping with Gen Y as there are with women and multiculturalism. There are obvious dangers with stereotyping millions and billions of people in to a few headlines. The opportunity here is to take research directionally, instead of replacing our insights—meaningful insights that only happen through relating, understanding and experiencing “people.”
Gen Y is often referred to as the lost generation battered by economy. One of the great articles, America’s screwed generation, shared great, shocking stats …. but just as the title suggests, painted a dark picture. Yes, the wealth gap between younger and older Americans is now the widest on the record. According to US Census, median net worth of young people under 35 fell 35% from 2005-2010, versus 13% for adults over 65. The older generation not only benefited from good economic timing, but they also are not retiring as early. Entry level positions are filled with experienced talent pool, making unemployment rates among Gen Y 50% above national average. Then there is their debt—from student loans to credit cards. Many stay in school just so they are not forced to start paying their student loans without a good job—or any job—so they incur more debt. It’s a doom loop, you see?
Inevitably, Gen Y has delayed adulthood in many milestones. According to a Pew study, one third have put off marriage and kids and a quarter moved back with their parents. There are other personal and cultural factors at play with this delay in adulthood (see my blog do you really know 20-somethings), but regardless, this can have major demographic implications in the decades to come. Twentysomething Inc report that 85% of new grads move back with parents to save on living costs while they job hunt. And when they are finally ready to move out, the prospects of “owning” a home is out of reach for so many. But home ownership, starting a family and other traditional milestones for adulthood are not life’s starting points for Gen Y.
Sure, no generation has suffered more from the recession than Gen Y. This has led into assumptions that are now backed by research data. But the world economy has been tough for a while now. Many members of Gen Y haven’t personally experienced the economic boom most of us have, or bitter about pay cuts, downsizing or outsourcing. They are experiencing the new normal in The New World Marketplace.
I see more positive signs amid all these negative statistics. I wonder how much of our own economic fears we project on to this generation. This is the unafraid, optimistic, tech savvy, educated, resourceful, and diverse generation who will know what works and what doesn’t…. greatly decreasing the collective learning curve. Culturally liberal, one third were raised by a single mother … so gender roles are blurred and multiculturalism is the norm. Gen Y men prove to be hopeless romantics .… young women earn more than men in big US cities ….. young women now top young men in valuing a high-paying career….these are just a few research examples of negative stereotypes when it comes to Gen Y.
Financial success, beyond necessities, is just one part of happiness….probably a small part. They are committed to find “meaningful” work and pay out student loans versus getting rich. Unlike previous generations, there is no shame in getting help from parents, but a luxury worth bragging about. Parental support, technology and rise of entrepreneurism provide this generation the freedom to pursue their hearts’ desires. And they will.
Despite all the labels and stereotypes (including my own), majority of work force will be filled by Gen Y by 2025—so, the current sluggish job market and steep student loans will not hold them back. It’s just the timing. More importantly, it will be about when, where and how work gets done that will bring forth the big cultural change. And the new values and ideological power of Gen Y will shape our future work force.
We are about to redefine the culture of middle class in the US, and most people and companies are not aware. Some of us who are, ignore it or simply not happy about it. Just the word “multicultural” draws in polarized reactions. This is one of the three macro trends that I define as imperatives for business and social success in the future. And it is shaping the emerging middle class in America.
I remember the marketing days when Latinos were primarily segmented into the lower income category. But that is no longer the case, is it? According to a new Nielsen report published last month, Latino’s income growth during the past decade has significantly surpassed the nation’s average. Although 43% of Latino’s still earn below $35k/year (versus 35% total), 36% earn $35-75k (at par with 34% total) and growing at a higher rate. What may be even more surprising to most is that 10% earn $75-100k, which is a 31% growth since 2000…. and 11% over $100k per year, which is a dramatic 71% increase.
Over 52 million strong, or 1 in 6, Latino buying power of $1 trillion in 2010 will change to $1.5 trillion by 2015. You can expect Latino population and buying power to continue growing even with the decline in the immigration numbers.
Let’s put this into context… There are more Latinos in the US than Canadians in Canada, Malaysians in Malaysia, or South Africans in South Africa. Latinos in the US represent second-largest Latino nation, right after Mexico, and before Spain, Columbia and Argentina. If a standalone country, the buying power would be one of the top 20 economies in the world.
In my November blog, how to reach the fastest growing Asian market, I explained how the Asian market is over-indexing the US national average in just about every meaningful consumer category—specially in income, education and family size. With this recent study showing Latino income on the rise, we can safely say that the landscape of American middle class is rapidly changing into a multicultural mosaic. We are about to redefine the culture of middle class in America, which will in turn redefine every aspect of the pop culture, consumerism, politics, economy and business. Just think of how branding strategies will have to shift for retail, residential buying, food, education, financial services, transportation, entertainment and media.
American marketers have never relied on a broad-stroke depiction of White consumers. They should keep the same mindset when it comes to Latinos and other racial/ethnic groups. Stereotyping the Latinos or Asians in the US will not be any different than stereotyping Caucasians.
According to Census, among US children, Hispanics are already 1 in 4 of all newborns. Hispanics, Asians and multi-racial children accounted for all the US youth growth in the last decade. Think of how this will define the next generation of our country. The multi-racial children are clearly the result of inter-racial marriages. Marriage across racial and ethnic lines has doubled since 1980, with 41% of all intermarriages in 2008 between Hispanics and whites, 15% between Asians and Whites, 11% between blacks and whites, and 16% in which both parties are non-white.
Contrary to the popular belief on language barrier, Neilsen particularly notes that Latino consumers’ usage rates of smartphones, TV, online video and social networking/entertainment makes this group one of the most engaged in the digital space. During February 2012, Latinos increased their visits to social networks/blogs by 14% from a year ago. This is also true for all multicultural population as Gen Y is the most racially and ethnically diverse generation in American history. Unlike the ethnic groups in previous generations assimilating in the mainstream culture, the new and young multicultural populations take big pride in their ethnic and cultural backgrounds, and are considered acculturated.
This article is not intended to be an advertising campaign for Hispanic media and agencies. For me, it is critical to add that older, white males are just as much part of the multicultural societies as any other ethnic groups. I define Multiculturalism by a mosaic of different cultures in one platform, and a society that is ethnically and culturally diverse. That does not mean excluding Caucasians or implying ethnic minorities only.
So, how are you defining or stereotyping your multicultural initiatives?
In the process of final editing & proofing of my book, I realized a lot of my forecasts and predictions pertain to the future. But how about 2012? There are so many exhuastive predictions on surveys, blogs and conversations. Many believe that 2012 prophecies have already happened in 2011. So I decided to devote a blog to my own 2012 trend predictions before we’re too far into it.
Any one of these can easily have its own blog. But here’s a quick recap:
- Economy will get better. We’re already seeing this in financial market, regardless of the bitter political debate on media. Not sure how long it will last, but we will see consumer confidence and business revenues go up this year. With the mild winter that we’re having (rolling over a bad one from prior year), if your business is not up, something is wrong internally.
- The buzz about women controlling 85% of all buying decision will get louder and finally get Corporate attention–with seminars, conferences & media coverage, including my own book.
- Racism & Sexism will be far more intolerable than previous years. Gender lines & roles will blur even more. You will see manifestation of this in politics, marketing/advertising and all social conversations–online and off line. Get ready to embrace an androgyneous mind.
- You will start hearing “Asia” a lot more….just as strong as the Latin craze we’ve had these past few years. (Read this blog)
- And it’s no longer just China & India–you’ll hear more about Vietnam, Indonesia & other Asian countries.
- Luxury brands will start targeting China & India. Even Middle East.
- Asian and African countries grow their middle class, while US share of global middle class keeps declining.
- Muslims will go under marketer’s radar in the US, and globally.
- Green & social responsibility will be included in all successful Corporate strategies. It is no longer just about products & services–it’s also about making this world a better place to live.
- Marketers & advertisers will focus more on authenticity, keeping it real, brand heritage, eco chic, and more is less.
- Savvy marketers will target savvy customers who are social consumers–ie 20% high sharere on internet to reach the other 80%–aka early adopters. A bigger shift in social media towards branding.
- Last two years have been all about social media. This will be the year of the Mobile platform. The capabilities of phones & tablets will grow immensely. Remote work is on the rise…!!!
- Get ready for social TV. All media & social devices will come together to offer us TV experiences wherever and whenever we want.
- Multiculturalism will rise beyond a racial discussion and will extend into fashion, colors, food, music…all lifestyle pillars.
- Focus on food health will shift from low fat or high protein to gluton-free, wheat-free, less processed, and going LOCAL.
- With boomers staying younger & more fit, expect to see a higher % of ad dollars for them.
- Multigenerational households will become common with boomers retiring and Gen Y moving back home.
Are you seeing or hearing any other major trends for 2012 that I should add to this list? Love to hear your thoughts.
I’ll end this by telling you how excited I am that we finished all the final editing of my book–I even proofed a printed sample last week. I realized how much information I packed in a very small book–you could finish it in 1-3 settings. I’m sure the content will resonate with you. We should be going to print in a week or so, and my next blog will give you the timing and ordering details.
Happy New Year! Yes, I know….I am late for both my happy new year wishes and bimonthly blogs. Truth is, I’ve been busy finalizing production details with my publisher and gearing up for a busy season of consulting and speaking. But I wanted you to be the first to see the layout of my book cover: “The New World Marketplace – how women, youth and multiculturalism are shaping our future.”
I am super excited and will be rebranding my social media platform once the book is in the market in a month or so. I will also provide updates on book signing events and speaking gigs, and hope to see you in my travels.
In keeping with my commitment to share a New World Marketplace update in each blog, I’d like to tell you a bit about how constant cost cutting during economic challenges can drive new product innovation and quality of service into the ground. While cost cutting is an important discipline in any business model, it should never be at the expense of quality and service—which are the revenue drivers. You can choose to drive profits from the front end, or the back end. Your call. But if you choose the latter, remember your competition is putting new products out in the market faster, and offering better quality and service. At the very best, you’ll end up as a mediocre company with mediocre products and services.
And how long do you think that will sustain you during a recession?
Earlier this month, I decided to end my 7 year love affair with my Audi TT and get a hybrid car. So you can just imagine the pushy sales tactics that I had to overcome online, and by phone just minutes after a click, before I even entered a car lot. I ended up with a Lexus hybrid CT 200h. Sure the product and price was the best fit for me, but it was the service that sealed the deal. Lexus products and prices are not that different than other high-end competitors, it is the service that is their strategic differentiation. Think about this: what type of price or cost do you allocate toward great service? OK, Audi didn’t have a hybrid, but I left because of their inferior service to begin with. Do you think I’m really that unique? And what if low-mid price brands offered luxury service? Wow…that will be one recession-proof brand….!!!
Gen Y’s strong affiniy for hybrid cars are leading us away from traditional vehicles. They also prefer cars that are an extension of their social media and digital lifestyle…and willing to pay for it. This is good to know regardless of what products you sell. It’s about keeping up with the pace of the New World Marketplace.
Atlanta (June 29, 2011) – Walk through the mall, a school or a business office today, and in nearly any city in the country, it will be obvious that “we” is getting trickier to define in terms of race, ethnicity and collective identity. Within relationships, cross-cultural is becoming the norm rather than the exception. This shift from a similar-looking status quo to one that incorporates a plethora of faces, has been referred to as “multiculturalism,” and this typically means both celebrating the uniqueness of each culture and navigating relationships with cultural differences. That might sound nice in an employee handbook, but what does it mean at the bank, at a PTA meeting, on a date or even at a wedding?
Farnaz Wallace, Founder of Farnaz Global and expert in multiculturalism and social and cultural change, has developed strategies and frameworks to help people and organizations find success in forming relationships across all kinds of cultural boundaries. “Multiculturalism should neither be a demand for special rights for minorities, nor a threat to protecting one’s own cultural identity and safety,” she says. “It is a phenomenon of resolving differences and building on commonalities based on values of trust, freedom, respect, equality, justice, dignity, open mindedness and mutual happiness.” (more…)
Are American Businesses Behind the Curve or Ready to Shift from Prejudice to Profit? 2010 Census Data Reveals New World Marketplace Has Already Arrived
Atlanta (May 2, 2011) – There is a $2 trillion marketplace that is up for grabs, and according to the 2010 US Census results, this market can only be defined as multicultural. The question is whether US businesses are ready and willing to make the changes necessary to take advantage of this critical demographic shift. From an aging white population to a growing youthful multicultural market where women have become key players, businesses that can adapt to this “New World Marketplace” will find themselves leading the way, while those holding onto traditional prejudices will falter. (more…)
You have heard quite a bit about multiculturalism recently from me, and other media sources in light of the recent 2010 census data. But are you leading your businesses and personal lives with the New World Marketplace mindset?
And I’m not just talking about how companies leverage the power of social network or provide latest tools and technologies. This framework should use this emerging technology with new ways of working, relating and engaging with people across all generations and demographics. Without a deep meaningful understanding of this New World Marketplace, the greatest technological tools can misfire your messages.
Work place of the future is being morphed and shaped today. Family dynamics and gender roles are changing. What is “personal” is also changing – but it still mirrors human dynamics and the multi-dimensions of each individual’s life. So, yes, leverage the digital world to help connect and drive higher levels of engagement and motivation, but do it in a personal way. You have to be and act personal. Whether you are talking to your customer, your stakeholder, or your family and friends, responding to concerns, needs and aspirations drive engagement and emotional connection with each experience. So, perhaps the good old saying of “think global, act local”, should really be “think global, act personal.”
Today’s leadership should have the ability to influence and lead through persuasion and attraction, by co-opting people through commonalities, rather than coercing them through power differentiation. The New World Marketplace leaders breed trust, set the pace and shape the new path. Today’s Gen Y is learning to become our future leaders by experiencing the world through travel and cultural understandings. What a great way to start bridging the cultural gap.
In keeping with my commitment to share latest trends, here are a few facts that support “women” are the next global emerging market:
- Women control 65% of global spending, more than 80% of US spending
- By 2014, the World Bank predicts that the global income of women will grow by more then $5 trillion
- Globally, women consumers control $20 trillion in consumer spending. They make the final decision for buying 91% of home purchases, 65% of the new cars, 80% of health care choices, and 66% of computers
….and yet, women continue to represent such a small percent of C-executives and board seats, where all the decisions are being made. I can’t figure this one out, can you? (also read Women Are Entrepreneurs, Working Women, Working Force and Economic Impact of Women Owned Businesses)
As always, please forward to anyone on your list who may benefit from my content. And, if you are seeing micro or macro trends in your business that you would like to discuss, I’d love to hear from you.
Everyday businesses across America open for business. Who is walking through the door has changed significantly. We’ve had a decade of rapid multicultural growth, aging whites and housing boom and bust. Is your business ready to serve the needs of the New World Marketplace customers in this transformational decade?
Here are some shocking facts recently released by 2010 census:
- Hispanics now account for more than half of the US population increase over the last decade…a new milestone: 50 million, or 1 in 6 Americans. Among US children, Hispanics are already 1 in 4 of all newborns.
- More than 9 million Americans checked more than one race category…up 32% from 2000…a sign of multiracial growth.
- Hispanics and Asians are the two fastest growing demographic groups, increasing about 42% from 2000…Asians for the first time had the largest numeric gain than African Americans.
- Multiracial Americans are on track to increase by more than 25%.
- What’s even more shocking is that most companies still define “multicultural branding” as African American marketing…or if they are a bit more progressive, African American & Latino event sponsorships with possibly a small percent of ad budget. Really? Think again!!!
Here are a few frameworks to consider:
- Re-evaluate your core target. What is “General Market” afterall?
- Consider business models that capitalizes on motivations and attitudes with multicultural dimensions.
- It is no longer about degree of acculturation and melding with the mainstream culture. It is now about influencing , shaping and defining it!!!
- Dig deeper into the values and beliefs of your new multicultural customers….how they live, love, play…what they fear, resent…why they consume what they do. This goes beyond common held assumptions found in research questionnaires.
- Choose an “emotional space” to create a meaningful relationship with your multicultural customers….choose how you’d like your multiculti customer to feel after walking into your business. It’s an outside/in mindset.
The key to the kingdom is changing hands. Multiculturalism is now the rule, not the exception. Take time to really understand your new customers, who are the potential growth that is walking in your door.