A new decade is just six weeks away and many of us are so consumed with the “here and now” of meeting a budget, closing out the year, protecting jobs and surviving the crises, that we are potentially missing a sea change in thinking.   This near term view, while necessary in many cases for personal and economic survival, exacts a price in that it may cause us to miss the big changes in sentiment around us. 

The start of a new decade is often marked by a dramatic close of one era and the exciting start of another. Part of this is due to co-incidental timing - such as the bursting of the Internet bubble in 2000 or the collapse of the Berlin Wall and Soviet Block in 1989/1990 or the coming to power of Margaret Thatcher in 1979 and Ronald Regan in 1980. 

Part of the historical shifts in mood are due to the emotional importance we place on decades - classifying them as milestones and giving them labels - “The Sixties”, “The Seventies” or “The Eighties”.  Decades become eras, even though the era will not likely last a full ten years because the pace of change is accelerating.

While there really should be a better term than the “Tens” to describe the coming “era”,  this next decade will be marked by some of the huge changes around us. Smart brands should understand the changing currents of sentiment and build their products, services and messaging around these changes.

Here are 10 currents of thought that brands can harness in the coming decade:  

1. Age of Responsibility

We are now entering an “Age of responsibility”. While decades are usually named in hindsight (e.g., the “Roaring 20’s” or “Swinging ‘60’s) there are enough visible signs to indicate that this coming decade will be more of an age of “Responsibility” versus  “Conspicuous consumption”. 

There will be those who will want to display their new found wealth, particularly in emerging markets; but there will be an even greater number of people, who will want to show they are responsible given the global trend to hold brands accountable to a “triple bottom line” of profit, people and planet.  

In this Age, the products and services that will be in high demand will be those that minimize environmental impact, are natural, support “fair trade” and generally do good things for their varied stakeholders.  

Implications/indicated action:

• Brands must act and communicate that they are responsible to retain consumer support and loyalty.  Failure to do this will result in brand switching to competitors who can demonstrate they are more responsible.
• A larger portion of marketing and communications will be dedicated to promoting socially responsible causes related to people and the planet.  
• Luxury brands will need to plot a careful course within this changing climate as they have not historically been linked to sustainability.

2. Trust will need to be earned through good deeds

Over the recent financial and economic crises, people around the globe lost significant levels of trust in companies. This was felt most with financial institutions that were both seen to precipitate the crisis and were able to reap a number of advantages including government bailouts and some even awarded bonuses following these bailouts.

That said, trust in business has not gone down equally in all markets. According to Edelman’s 2009 Trust Barometer, trust in developing markets such as Brazil and China rose while those in India and Indonesia (which were added to the 10 year old study last year) are also high.

As such, the loss of trust does not appear to be a “universal issue”, and especially in developing markets, because business is seen to be a more important driver for growth and prosperity.

Implications/indicated action:

• Brands in the financial services industry – banks and insurance companies which currently show the lowest levels of trust -  must understand the negative impact they have had on other people’s lives and not communicate as “business as usual”.
• Brands overall need to earn back trust by listening more, addressing real needs, adding more value and doing good deeds for its stakeholders vs. simply saying nice things.

3. Technology will remain a key growth driver

While people have lost their trust in some sectors, support for technology has held up relatively strong over this downturn. This is likely due to the thinking that technology can solve many of the world’s financial, social and environmental problems.  

People can also physically see and feel how technology makes their lives better because of the tremendous innovation in mobile, computers, television, and Internet – at a continuously decreasing cost.

Implications/indicated action:

• Technology brands can take leadership roles in society building from their relatively strong positions of trust.

4. Security is a big concern

Job and income security are very important concerns in this coming age. That because the recent financial and economic crises have made many people risk averse.  Many are more willing to make a “safe choice” (often by not changing at all) than the “smart choice” due to concerns in security.

This thinking is pervasive and even touches upon human relationships. For example many young women in Japan are now more interested in young men in lower paying but more stable government jobs than with higher paying but riskier jobs offered by some foreign companies in this country.

Implications/indicated action:

• Brands need to consider the importance of security in the decision making process positioning themselves both as the “Safe choice” and the “Smart choice”
• Smart brands will also differentiate themselves by demonstrating to staff and new recruits how they look after their people in a downturn.

5. Sustainability

Consumers will pay a premium for products and services that do good or that reflect their values and beliefs. Moreover a majority of people will switch brands to those that made the world a better place. For example many would switch to hybrid or electric vehicles, provided their pricing is competitive with existing products. Others will reward brands that reflect strong values such as the Body Shop or Ben & Jerry’s.

Implications/indicated action:

• Brands will need to spend more resources on developing and communicating their “environmental” and “social” credentials, proving to their various stakeholders how they are good corporate citizens.
• Brands should identify higher needs to address than they have done in the past.

6. Consumer activism

“The deer have guns” according to Isobar. While companies are out hunting for new customers and to increase usage among current customers, consumers are increasingly active discussing brands in social media. Moreover they have become bolder and more assertive with the “success stories” that have circulated about how consumers have changed brand behavior e.g., Jeff Jarvis turned Dell into company that embraces social media through his blog “Dell Hell”.

Implications/indicated action:

• Brands will ultimately need to share some power with their users. It is better to do this pro-actively that reactively as Dell and Starbucks have learned.
• Brands must learn how to encourage others to tell stories about them by engaging experts, non-government organizations, key influencers and alpha bloggers.

7. Social Media

Consumers are increasingly turning towards Social Media to connect, express themselves, learn, network, play, search and share. People are spending more time with Social media and are using it to make their mark on brands.  

Implications/indicated action:

• Social media will become a commitment vs. a campaign for more brands
• Brands will increasingly need to use social media to listen, plan around the communities and influencers around them, engage and optimize conversations using social media.

8. Generation “Y” aka “Millenials”

This generation of young people were born in the 1980’s and 1990’s and are now coming of age, preparing to buy their first cars, first homes and first mutual funds. This is a sizable generation, much larger than the preceding Generation X group and almost as large as their Baby Boomer parents. As such it will be a key driver for renewed growth in the years to come.

This generation has grown up in a marketing-saturated age when they have been pitched to at every waking moment and through an increasing number of media channels. They think, feel and act very differently than their counterparts in Generation X or among the Baby Boomers.  For example, when it comes to work, people in Generation Y expect to have many careers during their lives. This contrasts to the “Boomers” who generally hold one job for a long period of time, or those of Generation X have hold one career for an extended period of time.

Generation Y bring tremendous energy and digital talent into the workforce but they are difficult to retain. This is especially true during the recent tough economic times when employers have squeezed employees.   As the economy recovers, these people (and others) are thinking of leaving your company.

Also when it comes to sales pitches Generation Y respond more to social conscious campaigns, humor, irony and truth.

Implications/indicated action:

• Brands will need to find ways to keep Millenials engaged in their jobs by showing that they do good things for people and the planet.
• Brands also need to rotate Generation Y employees through various functions to keep them engaged with the company.
• Brands will also need to find ways to communicate and build loyalty with Generation Y and this will require different campaigns/media than what is employed with other generations.
•  Brands will need to use more Internet communications to reach Generation Y as it is their medium of choice.

9. Centre of economic power

The next decade will see a tipping point for shifting power from the Western World to that of the East.  Asia Pacific will gain more clout and attention as the world relies on it to help restore growth and prosperity to the world.

Implications/indicated action:

• Brands in Asia Pacific should use these times to gain more influence over their destinies.
• Brands should consider presenting their Asia credentials as these will be picked up by both proud consumers within the Region and who show renewed respect and interest from outside.

10. Nationalism

There is a growing nationalism in markets where the economy is booming. As wealth increases, so does confidence and pride. These national sentiments present powerful opportunities for ambitious brands to build and strengthen their franchises as we saw with Brand China in 2008 when it hosted the Summer Olympic Games.

Implications/indicated action:

• Local brands should leverage this growing positive sentiment to their advantage, particularly in emerging economies such as Brazil, India and Indonesia.
• Global brands will need to work harder to tap into local sentiment and do good work to retain their franchises. 

With the New Year and New Decade soon at hand, we’ll have to soon think about New Year’s Resolutions.  That should be the basis of another blog posting.