Ten Trends That Will Shape The Way We Live This Year

Consumers will evolve past being frugal this year by becoming more aware of their spending behaviours and looking for alternatives to buy goods in less traditional ways, said market research firm Euromonitor International in its annual prediction report.

The company’s annual trend report forecasts what consumers will value in the coming year and how companies should adapt to those behaviours. This year, consumers will change their spending in subtle ways. They will also even experiment with the metaverse, the research firm said.

“We see the middle class resetting and thinking about their spending, but we see that way beyond—everybody’s being a lot more frugal,” said Alison Angus, head of lifestyles research at Euromonitor.

Euromonitor traditionally begins the forecasting process around July. The fast-spreading Omicron variant has slowed down recovery efforts across industries and among consumers, but many of the forecasted trends are unaffected, Ms. Angus said.

Ahead are Euromonitor’s predictions for global consumer trends in 2022:

Supply-chain workarounds

Product shortages and disruptions have spurred consumers to use subscription services or buy secondhand to find what they want. Companies need to adapt to these individuals by offering alternatives to items, said Ms. Angus. Virtual queue systems present an opportunity for shoppers to get a place in line and hope they receive a product, the research firm said. Offering rental or refurbished products is another chance to keep that customer’s loyalty as does enticing them with exclusive or presale items.

Climate change becomes top of mind

The 26th conference of the Parties to the United Nations Framework Convention on Climate Change, otherwise known as COP26, made consumers think about their everyday actions in relation to climate change, said Ms. Angus. People are looking to cut back on food waste, reduce their plastic use and recycle more. Sixty-seven per cent of consumers surveyed by Euromonitor stated that they tried to do something every day to have a beneficial impact on the environment. Climate change and sustainability are trends that continue to evolve from previous years, but in 2022, younger consumers will have more of an impact on their peers, parents and grandparents.

Senior citizens optimize their digital lives

The pandemic forced many people to adjust their behaviours, such as shopping for groceries online for the first time. That trend was especially popular among seniors. Now, this group of consumers want to continue their digital use, and companies should respond accordingly by offering training, support and making products that are easy to use, the research firm said. For some companies, it may mean making an app or website function the same across all types of devices such as a laptop or smartphone, Ms. Angus said.

Taking control of finances

The pandemic’s instability caused many consumers to become more aware of their finances, as well as experiment with investing and trying out cryptocurrencies, the firm said. Companies should offer ways to educate consumers about their financial services or make products more accessible, such as lowering fees, Ms. Angus said.

Prioritizing personal values and goals

Thirty-four percent of people in the latest survey preferred to spend money on experiences as opposed to products in 2021, compared with 27% in 2015. Companies need to address the change by becoming flexible to what consumers want, whether they are still working or looking for a new job opportunity. “Last year, we were talking about consumers rethinking their priorities and what their life wants to be like,” Ms. Angus said. “This year…they’re actually making the changes.”

The metaverse switches from experiment to a reality

Consumers who were forced to conduct their lives online via video chats are now changing their behaviour to engage with digital worlds and communities, Ms. Angus said. Virtual concerts, sales of nonfungible tokens and dressing avatars are behaviours that consumers are tapping into, and some companies are meeting them there, the research firm said. “Any business can’t afford not to be thinking about this,” Ms. Angus said. “Because it is happening and consumers are going there.”

Secondhand loses the stigma

Buying items secondhand is no longer stigmatized. It has become a sought-after option for consumers who want to have unique items or are shopping on a budget. Options such as gift cards or buyback programs that promote secondhand shopping behaviours from consumers are winning them over. Companies should meet this demand by addressing consumers who want to bring in older versions of items and receive a voucher or repair them in-store, Ms. Angus said.

City residents opt for suburban and rural perks

People who stayed in cities and didn’t flee to the suburbs during the pandemic now want some of the advantages of living outside a city, such as having access to green spaces. Others want more services closer to their homes, with many still working from home, the research firm said. Companies should aim to bring shops and services closer to them that don’t require a train or car ride. “Making everything accessible to consumers within 15 minutes,” Ms. Angus said.

Indulgence in self-care and happiness

Fifty-six per cent of consumers expect to be happier in the next five years, the firm stated. To reach that nirvana, people are buying products that help their mind and body, such as cannabis products or meditation courses. Personalized shopping experiences that can predict a consumer’s needs will become a key component in reaching these people, Ms. Angus said.

Hybrid approaches to socialization

As the pandemic continues, consumers are becoming fragmented: those who want to go back to their normal lives and engage in social activities, and those who remain cautious. This means hybrid possibilities, such as digital visits or waiving cancellation fees, can address the needs of different consumers, the firm said. Products and services need to become multifaceted and seamless to serve this split consumer base, Ms. Angus said.

The marketplace has spoken and, at least for now, it’s showing preference for hybrids and plug-in hybrids (PHEVs) over battery electrics. That makes Toyota’s foot dragging on EVs (and full speed ahead on hybrids) look fairly wise, though the timeline along a bumpy road still gets us to full electrification by 2035.

Italian supercar producer Lamborghini, in business since 1963, is also proceeding, incrementally, toward battery power. In an interview, Federico Foschini , Lamborghini’s chief global marketing and sales officer, talked about the new Urus SE plug-in hybrid the company showed at its lounge in New York on Monday.

The Urus SE interior gets a larger centre screen and other updates.
Lamborghini

The Urus SE SUV will sell for US$258,000 in the U.S. (the company’s biggest market) when it goes on sale internationally in the first quarter of 2025, Foschini says.

“We’re using the contribution from the electric motor and battery to not only lower emissions but also to boost performance,” he says. “Next year, all three of our models [the others are the Revuelto, a PHEV from launch, and the continuation of the Huracán] will be available as PHEVs.”

The Euro-spec Urus SE will have a stated 37 miles of electric-only range, thanks to a 192-horsepower electric motor and a 25.9-kilowatt-hour battery, but that distance will probably be less in stricter U.S. federal testing. In electric mode, the SE can reach 81 miles per hour. With the 4-litre 620-horsepower twin-turbo V8 engine engaged, the picture is quite different. With 789 horsepower and 701 pound-feet of torque on tap, the SE—as big as it is—can reach 62 mph in 3.4 seconds and attain 193 mph. It’s marginally faster than the Urus S, but also slightly under the cutting-edge Urus Performante model. Lamborghini says the SE reduces emissions by 80% compared to a standard Urus.

Lamborghini’s Urus plans are a little complicated. The company’s order books are full through 2025, but after that it plans to ditch the S and Performante models and produce only the SE. That’s only for a year, however, because the all-electric Urus should arrive by 2029.

Lamborghini’s Federico Foschini with the Urus SE in New York.
Lamborghini

Thanks to the electric motor, the Urus SE offers all-wheel drive. The motor is situated inside the eight-speed automatic transmission, and it acts as a booster for the V8 but it can also drive the wheels on its own. The electric torque-vectoring system distributes power to the wheels that need it for improved cornering. The Urus SE has six driving modes, with variations that give a total of 11 performance options. There are carbon ceramic brakes front and rear.

To distinguish it, the Urus SE gets a new “floating” hood design and a new grille, headlights with matrix LED technology and a new lighting signature, and a redesigned bumper. There are more than 100 bodywork styling options, and 47 interior color combinations, with four embroidery types. The rear liftgate has also been restyled, with lights that connect the tail light clusters. The rear diffuser was redesigned to give 35% more downforce (compared to the Urus S) and keep the car on the road.

The Urus represents about 60% of U.S. Lamborghini sales, Foschini says, and in the early years 80% of buyers were new to the brand. Now it’s down to 70%because, as Foschini says, some happy Urus owners have upgraded to the Performante model. Lamborghini sold 3,000 cars last year in the U.S., where it has 44 dealers. Global sales were 10,112, the first time the marque went into five figures.

The average Urus buyer is 45 years old, though it’s 10 years younger in China and 10 years older in Japan. Only 10% are women, though that percentage is increasing.

“The customer base is widening, thanks to the broad appeal of the Urus—it’s a very usable car,” Foschini says. “The new buyers are successful in business, appreciate the technology, the performance, the unconventional design, and the fun-to-drive nature of the Urus.”

Maserati has two SUVs in its lineup, the Levante and the smaller Grecale. But Foschini says Lamborghini has no such plans. “A smaller SUV is not consistent with the positioning of our brand,” he says. “It’s not what we need in our portfolio now.”

It’s unclear exactly when Lamborghini will become an all-battery-electric brand. Foschini says that the Italian automaker is working with Volkswagen Group partner Porsche on e-fuel, synthetic and renewably made gasoline that could presumably extend the brand’s internal-combustion identity. But now, e-fuel is very expensive to make as it relies on wind power and captured carbon dioxide.

During Monterey Car Week in 2023, Lamborghini showed the Lanzador , a 2+2 electric concept car with high ground clearance that is headed for production. “This is the right electric vehicle for us,” Foschini says. “And the production version will look better than the concept.” The Lanzador, Lamborghini’s fourth model, should arrive in 2028.