A Cultural Snapshot of the UK

A cultural snapshot of the UK

Last updated July 2014 Overview

The impact of the economic recession has left behind a permanent change in With a referendum on Scottish independence and membership to the EU, the Brits’ spending habits. Many are searching far and wide for a bargain, fuelling UK is at a crossroads. Britain could emerge from this as a smaller, more the popularity of discount stores such as Aldi and Lidl. And even with luxury inward-looking nation, with less influence in the world. But with the rise of purchases, people are seeking products that will retain their value. anti-immigration posturing from parties like UKIP and the Conservatives, and a British public that’s opposed to intervening abroad, are people in the UK As technology becomes a part of everyday life, people are using contactless happy to step back from the world stage? payment cards more often, educational courses are moving online, and innovative technological systems are enhancing in-store experiences. While London may have become a truly globalised city – reflected in its cultural make-up, with less than half of the capital’s population defining While social media is as popular as ever, its appeal is changing. Networks are themselves as ‘white British’ – the rest of the UK is largely culturally increasingly used for customer service and recruitment, and privacy concerns unchanged. And just as people are opting for a more discreet projection of the have led to the rise of private messaging apps like WhatsApp and Backchat. UK abroad, they’re taking a quieter pride in their British identity.

Economic Overview Cultural Character Sectors

¥ Cultural characteristics ¥ Eating and drinking ¥ Fact and ﬁction ¥ Health and beauty ¥ Country pride ¥ Getting around ¥ What’s pop? ¥ Money ¥ Where’s hot? ¥ Home life ¥ Communicating ¥ Shopping ¥ Leisure ¥ Luxury ¥ Media and entertainment ¥ Technology

Economic Overview

Economic Overview Cultural Character Sectors

Economic Overview

After a gloomy few years following a deep recession, Britain’s economy as a whole is ﬁnally moving again. It grew by 1.9% in 2013 – the fastest annual growth since the ﬁnancial crisis. Consumer spending has been the main driver of the recovery, supported by a resurgent housing market, and the unemployment rate dropping to 7.1%.

Yet the recovery has done little to alleviate the economic divide between London and the rest of the UK. Since the crash of 2007, London and the South East has been responsible for 48% of the UK’s economic growth. Every other nation and region (except Scotland) has suﬀered relative decline over the same period. Demonstrating the gulf between capital and regions, the unemployment rate in the North East increased to 10.3% in 2013.

And while the economic outlook might seem bright, there are signs that people have adapted to a recession mindset for the long term.

Thrifty mindset After a double dip recession and the government reigning in its spending, people have had to adapt to a very diﬀerent climate. The pressure on household budgets has brought about a new cultural mindset. The spend- thrift habits during the economic downturn, which saw people cut items out of budgets and downgrade to cheaper versions of the same product, have become even more pronounced in the last year. Discount grocers Aldi and Lidl both enjoyed record trading over Christmas 2013, putting pressure on Britain’s 'big four' supermarkets – Tesco, Asda, Sainsbury’s and Morrisons – to shift their strategy.

But it’s not just careful budgeting. British shoppers have become professional bargain hunters, using a combination of price comparison sites to make their money go further. Smart companies are recognising the value of rewarding loyalty, with EDF’s Blue Price Promise letting people know if they can get cheaper tariﬀs with its competitors.

Great Britain or Little England? Britain’s place in the world is less certain than it has been for decades, with Scotland voting on independence in September 2014 and a referendum on the UK’s membership of the EU by the end of 2017. If Scotland were to become independent, Britain would become one-third smaller – and its inﬂuence in the world could be reduced. A country that cannot hold itself together is hardly in a position to lecture others on how to manage their aﬀairs. And with the rise of anti-immigration parties like UKIP, the country is at risk of becoming more isolated and insular.

Cultural Character

Economic Overview Cultural Character Sectors

Cultural Character

While some people believe Britishness is about shared values of tolerance, respect and fair play, others deﬁne Britain’s cultural character through its association with the country’s institutions – such as the NHS and BBC. But whether it’s pubs or the monarchy, Britishness, like all identities, is evolving and adapting to today’s globalised world. And with a population that’s shifting ethnically, Britain’s cultural characteristics have been impacted by the growing number of people who come to live there.

Yet there’s a big cultural diﬀerence between London and the rest of the UK. The capital absorbs more than half of all immigrants to the nation. And in the 2011 census, 80% of all Britons deﬁned themselves as 'white British', but less than half (45%) did so in London. Demonstrating the cultural divide, there are more black and Asian people in the London borough of Newham than in the whole of Scotland.

Culturally diverse While the government may be restricting the ﬂow of immigration, the UK continues to become more ethnically diverse. Ethnic whites have decreased from 91.3% of the population in 2001 to 86% in 2011, with Indians still the biggest non-white group. But it’s not just new arrivals that are changing the country’s cultural landscape; those of mixed ethnic origin have increased to 12% of the proportion of households in the UK. And with the 2012 Olympics representing a triumph for British multiculturalism, it seems most people in the UK are proud of their ethnically rich society.

A liberal youth? From the mods and rockers of the 1960s to the hipsters and indie kids of today, Britain has one of the world’s most unique and vibrant youth cultures. Experimenting with new technologies, fashions and ideas, young Brits are classical liberals. They have long tweaked established social institutions and prized social freedom. Yet, according to the British Social Attitudes survey, Generation Y’s support for the Tories has doubled to 20% since 2003.

Festival culture From Glastonbury to Wilderness, music festivals are now an established part of British culture, deﬁning most people’s summertime. In the last ten years, there has been a dramatic increase in the number of music festivals across the UK, rising from around 100 in 2004 to more than 700 in 2013. Festival wristbands, from the reﬁned Latitude to the grimy Reading, can be an indicator of a person’s identity, and shown to friends or colleagues. But while festivals used to be about leaving behind social snobberies and jumping enthusiastically into the mud and madness, some people are choosing to go ‘glamping’ – and paying extra for a luxury tipi with a shower.

Fiction: All British people have a stiﬀ upper lip Fiction: British people are all royalists

Fact: The UK is known as a nation of self-restrained people who don’t show Fact: Despite celebrations of the marriage of the potential future king, the their emotions, but British stoicism may be ebbing. The death of Princess Queen’s Jubilee and the birth of a prince, the monarchy isn’t for everyone. Diana is often cited as the turning point when the British public openly Just 39% of Britons want Prince Charles to succeed to the throne, as there’s a expressed their grief and looked to the Queen to show a similar emotion. perception that he will play a more active role as monarch than his mother. Today, contestants on the X Factor and The Great British Bake Oﬀ cry not only And while many young people still support the royal family, popularity is if they don’t get chosen, but also if they do. ebbing, with royalist expressions most likely to come from older generations.

A quieter British Patriotism Following two years of national celebration from the Olympics to the Queen’s Diamond Jubilee and the birth of Prince George, the UK has been ﬂooded with national sentiments. Yet, according to the 2013 British Social Attitudes survey, most people take a quiet pride in their British identity. The number of people saying they are 'somewhat proud' to be British (47%) has overtaken those who are 'very proud' (35%) over the last decade. While the ﬁndings don’t suggest a crisis of pride in British identity, they do show how the national identity is changing in a multinational UK. Devolved national pride As Scotland prepares itself for a vote on independence, it’s becoming increasingly apparent that Britishness is really a plural set of very distinct national identities – namely English, Welsh, Scottish and Northern Irish. And when it comes to sport, it’s not surprising that each has their own national side, with strong rivalries coming to the fore during competitions such as the Six Nations rugby tournament.

From apps to beer, ‘What’s pop?’ looks at the UK’s current cultural phenomena

The Great British Bake Off Tinder Craft beer Sponsored runs Now in its fifth season, this baking Appealing to Millennials looking to With microbreweries popping up all From the Tweed Run to the London programme has captured the minds simplify an increasingly complicated over the UK and festivals dedicated to Brighton Cycle Ride, fundraising of the nation. With life moving so hookup culture, Tinder added more the finest local brews, as well as events such as sponsored runs are rapidly today, baking reminds people than one million users in the UK in the online services like Beer52 sending becoming increasingly popular. Since of a simpler time and what it means to first 60 days of 2014. Using a boxes of craft beers straight to 2007, the number of fundraising be British. More than seven million simplistic, game-like interface, Tinder people’s doors, craft beer has taken events has increased 700% and the people tuned in to watch the show’s reduces rejection and strokes people’s Britain by storm. A new breed of beer participant numbers have doubled, finale in 2013. egos, as attitudes towards sex drinker seeks out beers like a collector with running events accounting for become increasingly casual. seeks rare artefacts. 77% of all fundraising pages.

Trends Trends Trends Trends Slow, Nostalgia Hookup culture Hyperlocalisation, Craft Beer, Fundraising, Charity Authenticity

From chicken restaurants to street food, ‘Where’s hot?’ reveals London’s coolest hangouts

Oslo Secret Cinema Street Feast Chickenshop Drawing on a Nordic aesthetic, Oslo is Immersive shows such as Secret Showcasing London’s best street food, Set up by the founder of the more a restaurant, bar and club located in Cinema have become increasingly Street Feast is an indoor night food glitzy Soho House clubs and the burgeoning area of Hackney popular with people looking for market with enough food choice to restaurants, Chickenshop is a fifties- Central. It occupies the previously alternative experiences. People will cater for every palate. And with an style diner. Located in in the South deserted old Hackney rail station and pay five times what they‘d pay at a eclectic mix of parents and children London suburb of Tooting, the shows off everything that’s cool about normal cinema, which doesn't include mingling with hipsters, Street Feast is restaurant has a rotisserie grill serving Scandinavia right now. the film’s themed services, food, drink aimed at those who love food and bottles of Camden Pale Ale. and beauty treatments. base their whole evening around it.

Trends Trends Trends Trends Global Mindset Experience Hunters Authenticity Nostalgia

From jazz bars to teahouses, ‘Where’s hot?’ reveals Manchester’s coolest hangouts

Matt & Phred's The Blue Pig Rosylee Walrus Located in Manchester’s trendy From single malt whiskies to fancy Recreating quaint Georgian and With an African-themed Tiki bar, Northern Quarter, Matt & Phred's is a tequilas and family-owned liqueurs, Edwardian decor with a modern twist, Walrus has become one of the most laid-back jazz club. As well as an The Blue Pig is a drinking den Rosylee is a quirky teahouse in the popular go-to spots in Manchester. By intimate music venue playing Folk, crammed full of the finest spirits from Northern Quarter. It rethinks day it’s a restaurant and a place to Gypsy, Electro and Swing, it has a bar around the world. Evenings and Britishness and tradition, and lets hang out, and in the evenings Walrus and restaurant, serving pints and weekends are filled with live music people order scones at 11pm. It’s turns into a popular nightspot with pizzas to people after work. and Manchester’s best DJs, along with popular among food lovers who want resident DJs. On Sundays, it holds special guests. something different from open mic and acoustic sessions. Manchester’s booming meat scene.

Trends Trends Trends Trends Modern swing Authenticity Nostalgia Bohemian

From cake shops to diners, ‘Where’s hot?’ reveals Edinburgh’s coolest hangouts

Timberyard Bell’s Diner The Edinburgh Larder Mimi’s Bakehouse Located in a converted cavernous old Despite being more than forty years A café, artisan bakery and bistro, The Run by Mimi, the fourth generation of timber yard, Timberyard is restaurant old, Bell’s Diner has now become a hip Edinburgh Larder brings the best of bakers in her family, this bakehouse with a short, simply written menu place for people to hang out in. With the Scottish landscape on a plate and has built a loyal following in just a few based on locally sourced ingredients. red painted walls hung with prints of sources seasonal ingredients from years. With a reputation for excellent The food is divided into four sections – Native American scenes, the small, conscientious producers. The baking, the counter is piled high with bite, small, large and sweet. It attracts restaurant has an old-school charm. café and bistro are tucked away from traditional and inventive sponges, people looking for a unique dining And in true American style, burgers the busy main streets, and are cheesecakes and tray bakes. Feminine experience that’s both sophisticated come in three sizes – from referred to as a ‘hidden gem’. decor creates a boudoir feel that’s and relaxed. manageable to massive. popular with women and families.

Trends Trends Trends Trends Local, Fine dining Old school Hyperlocalisation, Informed True Stories, Local Consumerism

Sectors

Economic Overview Cultural Character Sectors

Eating and drinking

Unlike countries like Italy and France, the United Kingdom lost its food heritage a long time ago. Brits have been embracing foreign cuisines and exotic ﬂavours as their own, with the curry becoming a national staple as a great example. But in recent years, Britain has been returning to its culinary roots. Heston Blumenthal's restaurant Dinner celebrates traditional British dishes, while shows like Jamie Oliver’s Great Britain have seen huge success.

After years of interest in molecular gastronomy and cutting edge culinary innovations, people are going back to basics with their food, demanding simple, honest dishes. The desire for simplicity means vegetables are becoming stars on the menu, such as in London’s Caravan restaurant, which treats meat as a side dish to the main ingredient – the vegetable.

Following news that UK families are throwing away nearly £60 worth of food every month – almost an entire meal a day – there is a shifting mindset towards cutting down on food waste. As a result, the local supermarket has experienced a revival, with Nisa stores surging in popularity, as families prefer to buy less but more often to cut down their waste.

Despite cooking being a popular pastime activity, home cooking is on the decline – especially among low-income families, who increasingly rely on prepared foods that ﬁt into their limited budget. While half of all cakes eaten 20 years ago were home-baked, they now account for just 20%.

Casual ﬁne dining After several years of casual dining being popular across the UK, there's a growing sense of ﬁne dining making a comeback. People are shifting away from pop-up restaurants and casual burger joints, towards restaurants with attentive customer service and a sense of occasion. But this isn't about super formal service; according to food and drink writer Glynn Davis, many are scared of overly formal settings, preferring a warm and friendy atmosphere.

One of the UK’s best chefs, Marcus Wearing, has admitted that "formality is out", and has ordered a £1.4 million makeover of his flagship restaurant The Berkeley. Staff will be retraining to be ‘more American and less French’ in their approach to service. Table linen will go under its new name Marcus, to create more of a ‘dinner party atmosphere’ for diners. The GrillStock Smokehouse festival offers a true taste of Americana

Blended drinking establishments Americana craze The UK’s drinking scene is undergoing a revolution. Craft breweries are The UK is going all out for all things American. From food and drink to popping up all over the country, with each major city developing their own entertainment, American influences can be seen everywhere, particularly in craft culture. And smoking bans and competition from supermarkets have London. The Soho Diner, Jackson & Rye, Strip Bar & Steak and Avenue are all meant the pub is changing, too. According to Glynn Davis, we’ll see more ‘café- adapting elements from American culture and bringing it to the UK with great style' drinking establishments, alongside off-license stores offering in-store success. For a good night out, the Brooklyn Bowl concept launched in 2014, drinking, as the younger social media savvy Brits are moving away from the combining bowling, live music and American food all in one package. "drinking-at-the-pub scenario". The GrillStock Smokehouse festival celebrates proper southern style BBQ, Vagabond Wines is a boutique wine shop in London that not only sells some alongside the finest tunes from America. It runs in two locations, Bristol and of the world’s best wines, but also offers customers the opportunity to sample Manchester, and over 17,000 people attend every year. It has attracted such a them in a relaxed atmosphere. Others such as Bottle Apostle are following following that organisers have a launched a street food stall in St Nick’s suit, combining the desire to purchase drinks for consumption at home, with Market, as well as a permanent restaurant, in Bristol. the opportunity to try them out before they do.

Health and beauty

Beauty in the UK is a sensitive topic. Just 31% of British women describe themselves as beautiful, and over a quarter of women would pass on a holiday because of their worries about how their body would compare around the pool. With social media playing an active role in maintaining our online identity, half of British women say it has made them more self-conscious about their appearance. And it’s not only women who are body-conscious, with 80% of men also saying they are unhappy about their body. As a result, cosmetic surgery is on the rise among women, while men are devoting more time to maintain their looks.

But while people are increasingly concerned about their appearance, just a quarter of Brits participate in sport at least once a week. And despite the popularity of football on screen, swimming remains the most popular sport, with just under 2.9 million people going swimming at least once a week. While its popularity is rising, football, cycling and cricket have all fallen in appeal.

While gym membership is popular, with nearly 4.5 million adults having a gym membership, only a quarter (27%) of gym members regularly go to the gym. And for many, it's an opportunity to relax and socialise, rather than exercise vigorously. According to a survey, a quarter of gym-goers spend more time in the sauna than actually exercising, and only half complete a serious workout. Of those that don't work out seriously, 50% spend the majority of their time chatting or reading.

Dealing with obesity the hard way When it comes to health, the UK lags behind the rest of Europe. Women top the rankings for obesity. Experts suggest obesity rates will increase dramatically in the future, with a lack of exercise among the key factor behind it. In fact, research suggests obese women get only one hour of vigorous exercise each year, meaning many are turning to other ways of combating their growing waist lines.

The number of liposuction procedures performed in 2013 was 4,326 – an increase of 41% on the previous year, making it the sixth most popular procedure among women. While many non-surgical providers are available, many have found these ‘less eﬀective than advertised’, according to Rajiv Grover, the president of the British Association of Aesthetic Plastic Surgeons. Murdock London oﬀers men a bespoke grooming service

Men feeling the pressure to groom The rise of everyday women Following the popularity of TV shows such as The Only Way is Essex and While ten years ago, beauty was determined by a few celebrity models such as Geordie Shore, and the examples set by celebrities like David Beckham, male Kate Moss, today’s ideal is more inclusive and focuses on everyday beauty. grooming has taken off and become a mainstream trend. Nowadays, it‘s far Friends (47%) and everyday women (46%) now have more influence on the much more acceptable for men to engage in grooming, with half of men definition of beauty among women than celebrities (37%) and models (36%), happy to describe themselves as metrosexuals. Some even feel under and one in five (21%) women say ‘everyday women’ are the most influential pressure to groom, with 53% saying they felt it was expected of them. role models when it comes to beauty.

The male beauty industry is more about discreet treatments rather than Dove’s ‘Real Beauty’ campaign challenged beauty ideals with a series of ﬂashy make-up, and big brands are launching cosmetic ranges for men. adverts celebrating real women. Since then, other brands have joined the Fashion designers Tom Ford and Marc Jacobs have both introduced a male conversation. Clothing brand American Eagle launched a campaign with collection, featuring usual items like cleansers, moisturisers and lip balms, but completely un-retouched models of all shapes and sizes, with beauty marks also mud masks, concealers and bronzers. and tattoos, to empower women.

Getting around

Despite the rising popularity of public transport and cycling, cars remain the backbone of transport in the UK. In 2012, car journeys accounted for 64% of all trips made and 78% of the total distance travelled. And while women generally make more trips than men, men tend to travel much further.

The popularity of cars is especially evident outside of major cities, where the limited coverage and infrequent service of public transport makes it difficult for rural and suburban residents to use. Despite many families experiencing financial difficulties, the proportion of households with cars rose from 75% to 79% between 2007 and 2012.

While elsewhere in Europe people are embracing electric cars, the UK is lagging behind, with only 7,200 electric cars registered in the country. A major barrier is the number of charging points across the country, which are concentrated in cities. While there are government initiatives to encourage the up-take of electric cars, and car makers are bringing reasonably priced and longer running cars, it may be a while yet until they are fully embraced.

Following cars, walking is the second most popular way of commuting in the UK, with nearly 3 million people walking to work. In fact, almost four times as many people walk than cycle to get to the oﬃce in the UK as a whole.

Cycling popular in big cities The numbers of miles cycled in the UK grew 20% in the past 15 years, accounting for 5 billion kilometres in 2012, while commuting by bike jumped in popularity by 17% over the past ten years. In fact, 43% of the population owns or has access to a bicycle. Growing health awareness, saving on travel costs and the Team Great Britain’s success at the 2012 Olympics are the most common reasons behind the popularity of cycling.

While Barclays Cycle is surging in popularity in London, and expansion plans are underway, other parts of the UK are joining the cycling wave, too. To get around the problem of having to build extensive docking infrastructure in Newcastle, ScratchBikes uses a new bike sharing scheme concept that allows people to pick up and return bikes from any bike rack in the city. Three million people use London’s Underground network every day

Swapping car ownership for pay-as-you-go hire Extending the transport network People living in Western parts of the UK, particularly the younger population, With rising petrol prices and increasingly congested roads, many people use no longer desire to own a car. This is partly down to the desire to streamline public transport to commute to work every day. This is especially true in and remove clutter from their lives, preferring to use products and services on London, where the Tube is the second most popular way of commuting demand instead. One way people have been able to still enjoy the beneﬁts of behind cars. But those seeking to get away from congested areas are unlikely a car without all the hassle is through car-sharing schemes and hourly car to ﬁnd it in the Underground network – where during peak times demand hire, which have soared in popularity in recent years. often drastically outstrips supply.

ZipCar is the biggest car-sharing scheme in the UK, offering people the In response, Transport for London is extending the Tube network, increasing opportunity to hire a car by the hour, with cars conveniently located on city train capacities and reintroducing ‘hop-on’ buses to make journeys easier for streets. BlaBlaBla is another car-sharing concept that has attracted attention commuters. And for those going on a night out on a Friday and Saturday, the in recent years. Lone drivers can offer their spare seats for other people, Underground network will be running a 24-hour weekend service from 2015. making travelling not only more efficient, but also a unique experience.

Money

The UK was hit hard by the recession, and many of the behaviours adopted during this period have been engrained and remain to this day, despite encouraging signs of economic growth. Money saving and bargain hunting are common among Brits, and not only among the lower classes. This is fuelling the success of discount retailers such as Poundland, Aldi and Lidl, who are introducing premium ranges to appeal to a wider audience.

Part of the reason behind this is that people have less money to spend. Following the recent rise of utility prices in the UK, households are struggling to keep up with their payment schedule. In fact, 4.5 million people are in arrears with their energy bills, with many likely to fall into debt as a result.

When it comes to payment methods, cheques were a traditionally popular way to pay bills. But while there are still some in circulation, they are largely being replaced by cashless payment options – 91% of adults have a debit card. And people believe they’re here to stay, with 86% of people saying they expect to be carrying debit or credit cards in 2025. As a result, companies are discontinuing their cash payments in favour of cashless cards or m-payments.

While there is a growing availability and awareness of mobile payments, there is a limited desire to actually use them. Despite 55% of UK internet users being aware of mobile payments, just 3% have actually used their phone to pay for something in a store.

Frugal mindset here to stay The recession has deeply affected the spending habits of a significant portion of British population, and it appears this attitude will remain. Often described as the ‘new normal’, people are viewing the world with a frugal mindset, seeking value and low prices in their purchases. Many realise they can’t afford to buy new products, and as a result there is a growing appreciation of things that people already have – which 59% of people agree with. There’s also a growing fixing culture, with people keen to revive their old possessions.

And with people reining back their spending, brands are making their products and services more available. Sky, for example, has launched a Day Pass for its Sports packages, allowing people to watch any of their channels for a 24-hour period. London buses have become completely cashless

Recession saving culture still going strong The UK becoming a cashless society Followed the beginning of the ﬁnancial and economic crisis, people in the UK While cash is unlikely to completely disappear in the near future, Britain is started saving again – a behaviour that’s still going strong. Despite a slight increasingly becoming a cashless society, with nine in ten (89%) of all drop in the household savings ratio, people still feel they are saving more, purchases being cashless in 2011 – well above the global average of just over with almost half (47%) saving they have added to their savings in 2013, well half (52%). Paying with credit and debits cards is the norm, and mobile above the European average of 34%. Yet despite this, over a quarter of people payments using NFC are rapidly rising in popularity. Retailers such as in the UK have no savings at all. Waitrose, Boots and M&S have all introduced the convenient ‘contactless’ payment option. While savings for emergencies was the most common reason for savings, Brits were the most likely to save for a holiday, based on a survey by ING from 14 The Oyster card is as synonymous with the London Underground network as European countries. And it seems saving is having an important side eﬀect of Big Ben is of Westminster. It is hugely popular, and while 20% of journeys improving mood. Over half of Brits say savings improves their state of mind, were paid for by cash ten years ago, this is expected to drop to 1% in 2014. while nearly a third say saving more each month would improve their mood. London buses have already made the transition to become cashless, and since June 2014 no longer accept cash for fares.

Home life

While many Britons dream of owning their home, it’s becoming increasingly difficult for people to take their first step on the housing ladder. Economic and financial uncertainty has left many without a realistic possibility of home ownership, especially among young professionals, who are forced to rent instead. Of the 14.3 million homeowners in the UK, just 1.4 million are aged between 25 and 34.

Some are forced to continue living with their parents for longer – in 2011, three million British adults aged 20-34 lived with their parents, up by 20% since 1997. And among those who do move out, over a third (35%) end up back with their parents later on.

Later marriage, longer life expectancy and a rising number of singles have all contributed to the household size reducing. In 2013, 29% of households contained one person – adding up to 7.7 million people living alone, an increase of 10% since 2001. Combined with rising house prices, people are switching to smaller apartments, especially in the UK’s larger cities.

Recession bringing people together While the recession has hit the country hard, with many forced to cut back on their spending and return to the good old times of bargain-hunting, it had an unexpected side eﬀect – bringing people together. Almost half of Britons agree with the statement “in recent years, I have made new friends and social connections”, while a ﬁfth agreed that “the recession has brought me closer together with my family and friends.”

With the ﬁnancial situation out of their hands, people are paying closer attention to things they can control, helping them have a positive outlook about the future. In fact, a third of people in the UK say they are more optimistic about the future. And those who made connections with friends and family were signiﬁcant more optimistic than the average. Busy lifestyles mean many Brits eat on the go

Seeking quick fixes Marriage changing its appeal Britons are living increasingly busy lifestyles – which involve longer working Despite divorce rates dropping, married couples with children were the only hours than elsewhere in Western Europe. Alongside this ‘long-hours culture’, type of household in the UK to shrink in the latest census. What’s behind these people spend an average of 54 minutes commuting each day. All this leaves seemingly opposing trends? The answer can be found in the current people with little time to take care of their home or themselves, meaning generation of young adults’ attitude to marriage. People are discovering that many resort to quick-working products that require little effort. From all-in- successful marriage isn’t a social, religious or family matter – it’s personal. one products to shortcuts, people are demanding quick-fixes. Marriage is becoming increasingly flexible, and often comes as the last piece of the jigsaw to a flourishing relationship. One in five adults skip breakfast in the UK because they don’t have enough time – and as a result, brands have been introducing convenient breakfast Of those that plan to get married, more than 1.5 million are looking to travel options. For people leading busy lifestyles, Weetabix has launched an ‘on the abroad. Behind this is a down-to-earth, frugal mindset, as tying the knot go’ breakfast shake, featuring all the protein, energy and fibre of regular overseas works out much cheaper. While the average wedding in the UK costs Weetabix cereal. The breakfast on the move market is enjoying immense £20,000, elsewhere in the world people can say their marriage vows for success, with sales up by 79% in 2013 compared to 2012. between £7,000 and £8,000. Some even combine it with their honeymoon.

Communicating

Social media has changed the way people communicate. It’s become so important that 42% of people said they would rather give up the ability to make phone calls than lose their social media presence. People across all age groups are active on social media – with over half of UK pensioners now on Facebook.

As a result, a growing number of brands are taking up social media as a way to connect with their consumers. But while it can be an important customer service tool, it can also help engage people with the brand. For example, British Airways created a digital campaign designed to help people choose a holiday. After creating a mood board, they were recommended relevant holiday destinations – which they could then share across social media.

While there has previously been an emphasis on mobile communication, now people are embracing a ‘connected’ strategy, which allows them access to services wherever they are, and across multiple devices, depending on whichever is most convenient. With an ‘out-of-oﬃce’ lifestyle increasingly popular, the importance of a consistent user experience has risen.

Social media changing customer service expectations Social media is having a big impact on the way people communicate. But it’s not only a useful way of getting in touch with your friends, as it’s increasingly becoming a ﬁrst point of contact for customer service – with three in ﬁve customers turning to Facebook and Twitter for complaints. But turning to social media has changed people’s expectations too – as almost three quarters of those who complain expect a response with an hour.

Despite 76% of UK organisations running a Twitter account, only 39% provided a successful answer to a question. And while people expect a swift response, the average reply came after almost nine hours. Vodafone UK is considered to be the best at making use of the platform, with the highest response rate to customer service queries via Twitter than any other brand. 81% of UK teenagers have a smartphone

Recruiting using social media tools Teenagers migrate from Facebook in search of privacy With 8 in 10 British internet users on at least one social media platform, it For teenagers, Facebook is no longer the cool place to hang out with their becomes an interesting source of information for organisations. An increasing friends, but rather an “obligatory communication tool that younger people number of companies are ﬁnding job candidates through some form of social maintain because everyone else does”. Their focus has shifted mainly to network, which has raised the importance of managing an online identity. Job mobile messaging apps such as WhatsApp, as teens develop a preference for titles, for example, are experiencing a resurgence following the rise in private chatting to avoid their parents online. For teens, Facebook “is basically popularity of the social platform LinkedIn. dead and buried... it’s simply not cool anymore.”

But with almost half of employers already using social media tools in their With a growing appetite for anonymity and private messaging, developers are recruitment process, there’s a debate around how much snooping they should reacting by creating new platforms more suited to this demographic. Backchat be allowed to do. To clarify things, the Chartered Institute of Personnel and is an ‘anonymous’ messaging app that allows people to communicate initially Development has released a good practice guide for conducting pre- under the cloak of anonymity – but as the messaging goes on, clues are employment checks on job applicants. oﬀered to reveal the true identify of the person on the other side.

Shopping

The UK is the most internet connected retail nation in Europe, with total sales reaching £87 billion in 2012 – an increase of 12% from the previous year. And with smartphone penetration expected to reach 75% in 2014 and a third of the population now using tablets, mobile shopping is proving to be a big hit among Brits too.

According to retail journalist John Ryan, technology integration with multi- channel stores is the single most important development in retail. Retailers are responding to shoppers' demand for a more blended online and in-store experience, with almost half (44%) now oﬀering a click and collect service compared to only 21% two years ago.

But not all shoppers are responding to this, and brands are ﬁnding they must create unobtrusive, opt-in digital in-store experiences to be accepted. People need to see value in using these additional services – because, after all, "they are there to shop.”

Another major development in this sector is the growing importance of the appearance of packaging, as well as the in-store environment. Retailers like Topshop are updating the looks of their stores to make them stand out among the competition.

Demanding more convenience Shoppers are realising that they have the bargaining power in retailer- customer relationships, and they’re increasingly demanding that shopping happens on their own terms. People want more convenience, expecting products to be delivered as soon as possible, with free delivery and returns. Brands are responding, with Doddle oﬀering commuters parcel pickup at train stations, and Asda trialling a click and collect service at Tube stations.

Following Argos’ successful same-day delivery service in partnership with Shutl, whose delivery record is under 14 minutes, eBay has acquired the courier to extend its eBay Now service to London. The retailer is aiming for one-hour delivery, and the opportunity to pick up items at Argos stores, in an attempt to get items to people faster. Online shopping is set to hit £107 billion in 2014

Searching for a good bargain Technology behind the scenes The cost-conscious approach adopted by UK shoppers began during the As shopping activity moves online, brick-and-mortar retailers are trying to get recession, but despite economic recovery, this habit looks like it's here to stay. people back into shops. While many are experimenting with digital stores, Regardless of disposable income, Brits are as likely as ever to seek 'cheap and making use of touchscreens and other visuals to capture people’s attention, cheerful' products – and this has meant discount retailers and those offering retail journalist John Ryan warns that not everyone is digitally savvy. Ryan own-label products have flourished. Poundland’s profits, for example, more claims that many retailers are taking out front of house tech, but keeping it than tripled between 2008 and 2012 to £32 million. behind the scenes, to make the technology integration seamless.

With even the middle class and more affluent shoppers seeking out better Despite shoppers not engaging with digital interfaces in-store, they are still value, supermarkets have been rebranding their own-label products to appeal keen to consult their smartphone, whether they're looking for reviews or a to more customers. Tesco, for example, has revamped its Everyday Value better deal online. While many retailers have in-store apps, like Westfield‘s range, as well as its Finest range, as shoppers turn their attention away from personal shopping app, others are trialling Apple’s new iBeacon technology. big brands to supermarket labels. Sandwich shop chain Eat uses it to send marketing notifications to its customers through a dedicated app when they enter one of its stores.

Leisure

For many Brits, leisure means travelling. 60% plan to increase the amount they spend on holidays – and are more likely to do so after seeing a holiday picture on their friends’ social media accounts, rather than reading a review or seeing an advertising campaign. Although one in five look to book a ‘fly and flop’ beach holiday, one in eight are looking to travel further afield, fuelling the desire for unusual holiday destinations.

While the majority of Brits are expected to visit countries they have been in previously and are familiar with, there’s also a growing trend of breaking away from your comfort zone and trying new destinations, such as the Caribbean, Brazil and Malaysia.

When at home, the UK has a long tradition of DIY, with people enjoying making household repairs in their spare time. However, this habit is not as prominent among young Millennials, among whom the diﬃculty to get on the housing ladder has left many dependent on landlords, with parents, friends and neighbours often helping with household tasks. Practical skills have disappeared to such an extent that one in ten Britons will now call a professional to replace a light bulb.

Grow-your-own fuelling gardening popularity While gardening is no longer Britain’s favourite pastime, now being overtaken by cooking following the popularity of TV cooking shows, over two in ﬁve people still say they cared for gardens in their spare time. Spending an average of £1,546 year on their plots, it’s certainly an addictive hobby – with only 1% of people trying gardening just once.

With space at a premium in London, people are turning to rooftop gardening to satisfy their grow-your-own desires. As part of a new environmental project called InMidTown, a leading law firm and four-star hotel are among five London organisations turning their rooftops into vegetable patches and flower gardens. It’s an initiative to make the city more sustainable, whether by growing vegetables or attracting bees for honey. Knitting clubs and classes are growing in numbers across the UK

Knitting is an ever-popular hobby Peer-to-peer travel over hotel stays When it comes to hobbies, knitting is becoming an increasingly favoured When travelling on holiday, people are put oﬀ by the high prices and pastime activity, with an estimated seven million knitters in the UK. Following regularity of traditional hotels, with a growing number preferring to rent the example set by Kate Moss and Kirstie Allsopp, more and more women are private apartments or couch surf instead. It’s part of a shifting preference for taking up knitting. And men are knitting too – claiming that it’s a de-stress experiences, which 92% of 18- to 30-year-olds value more than material activity. As a result, online knitting stores are thriving, while Google searches possessions, and a collaborative mindset is being increasingly adopted. for knitting increased by 30% in 2013. Staying in someone else’s home gives people a unique travel experience.

Following the growing interest in knitting, Adidas has launched a limited Oneﬁnestay is a London-based rental service that oﬀers a selection of curated, edition knitted football boot. The collection of 150 boots still feature the privately owned homes for its customers. Distancing itself from a traditional comfort and responsiveness of regular boots, but have a traditional design. hotel experience, it describes itself as an ‘unhotel’ service. Each stay is The boots were debuted by Luis Suarez in a Premier League football match, accompanied by an iPhone for guests’ use, and the further option of a maid and put on sale the following day. and ‘meet and greeter’ to welcome visitors.

Luxury

Despite the effects of the financial and economic crisis still being felt by many Brits, it has not affected luxury spending. According to Julia Carrick, chief executive of Walpole, “the UK luxury industry remains extremely robust and is forecast to grow significantly in size”. In fact, it’s expected to double in value by 2017. The driving force behind the luxury sector’s success is the innovative approach of brands using a mixture of technology and social media to connect with their customers.

While not as pronounced as in other sectors, online shopping is having a major impact on the luxury sector. With increasingly busy lifestyles and additional perks associated with online shopping, such as free delivery and return schemes, people are no longer drawn to bricks-and-mortar stores – which are struggling to keep afloat. This may be down to a crisis of confidence, as studies suggest people are suffering from the ‘Pretty Woman Effect’ – feeling intimated in-store. As a result, almost half of people prefer to browse a high-end store’s website rather than visit the store.

Brands are increasingly focusing on new ways to attract people to their stores. One way of doing this is shifting emphasis away from sales in their physical stores – and transforming them into ‘experiential hubs’ instead. The focus is on building relationships with customers and delivering a personalised shopping experience. Louis Vuitton, for example, has opened a ‘Townhouse’ in Selfridges, which features the brand’s ﬁrst Digital Atelier, taking people on an interactive journey through its history and craftsmanship.

Seeking value in luxury purchases Luxury purchases are changing, and people are no longer simply buying products with a big price tag. They’re increasingly seeking value in what they buy – whether it’s through daily use to help them justify the price, or through purchases that are likely to hold or increase in value, such as luxury jewellery and timepieces.

This growing demand means the jewellery market, which accounts for 25% of the luxury sector, grew by 5% in 2012. Gold in particular is experiencing a surge in popularity among Brits, with demand increasing by 10% in 2013 compared to 2012. People are choosing to buy higher carat items, taking advantage of current low prices, in the hope that the value of their jewellery will increase in the future. The Rubens at the Palace hotel in London is embracing sustainability

Luxury going sustainable and green Showing off moves to social media The British approach to luxury has changed over the past few years. While five In a post-recession climate, Brits are taking a discreet approach to wearing star luxury travel is unlikely to ever disappear, a growing segment of affluent luxury items, with ostentatious displays of wealth no longer ‘cool’. Instead, Brits are looking for less conspicuous holidays – and they’re placing a they’re finding new ways of showing off – through conspicuous ‘over-sharing’. particular emphasis on simple, ethical and authentic experiences that can Whether on Facebook or Twitter, sharing is seen as a status symbol, with provide an escape from their hectic modern lifestyles. As a result, ‘green’ perfect families and photographs the ultimate in status. It’s part of a shift travel is on the rise, with zero-impact hotels and sustainable holidays on the away from material possessions to a greater focus on experiences – and agenda for wealthy Brits. brands are embracing this by engaging people with a story behind a product.

One of the major hotels embracing the values of sustainability is the Rubens With most luxury brands embracing social media as a marketing platform, the at the Palace hotel in London, which features the largest wall of vertical plants level of customer expectancy for brand engagement has risen. It’s no longer in the capital – with 10,000 plants. They were carefully chosen to help attract enough to gather likes – brands must offer interactive, fun and useful social wildlife such as bees, butterflies and birds to the urban environment, and help media experiences, which result in better engagement. Bentley, for example, reduce local environmental issues such as flooding and air pollution. launched teasers for its new Flying Spur model on its social media channels, with people able to receive exclusive updates via the platforms. © Canvas8 2014 JUMP TO CONTENTS ⬆ ️ Economic Overview Cultural Character Sectors

Media and entertainment

In 2013, the average British viewer watched nearly four hours of TV every day. And while many activities are going mobile, watching TV on these devices has been slow to catch up. Traditional TV sets still account for 98.5% of daily viewing, making it by far the most enjoyable way to enjoy shows and movies at home. But while the medium stays the same, the activity is changing, as people demand more content in front of their TV.

On the other hand, on-demand and catch-up programming services do enjoy high mobile viewing – the BBC iPlayer is now watched more often on a mobile device than a computer.

So what are Brits watching? Reality, celebrity and live talent shows have dominated TV sets in recent years, pushing away soap operas oﬀ the top spot in the past decade. The launch of the latest series of reality show I’m A Celebrity attracted an average audience of 13.5 million viewers, placing it just behind the coverage of London’s New Year ﬁreworks. And watching sport, especially football, remains a popular activity, with some of the world’s best football competitions taking place in the UK.

Second screens commonplace In the UK, 86% of smartphone, tablet and laptop owners claim to use their devices while watching TV. Over half of these users (52%) wanted to ﬁnd out more about a TV programme, and a similar number (55%) were keen to engage shows through polls and voting. The most active second screeners are tech-savvy 18- to 34-year-olds, but the fastest growing group were the over 55s, among whom smartphone penetration is expected to reach 50% in 2014.

As the way people consume entertainment changes, so does the way brands interact with its audience. Channel 4 was the ﬁrst UK broadcaster to launch a dedicated second screen app – 4Now – oﬀering people access to additional content for TV shows they’re currently watching, including programme information, social media activity and interactive polls and contests. The BBC’s catch-up TV app iPlayer has been downloaded over 20 million times

Digital has unleaded the floodgates Return to adventure games After years of declining expenditure on music, films and video games, digital While the US is crazy about big name games, the UK has a much closer services such as Netflix, LoveFilm and Spotify are transforming the industry, as relationship with the indie scene, with the adventure genre the latest to people demand easier ways to consume content. For watching TV and films, resonate with British gamers. These developers are bypassing traditional these platforms drove a 40% increase in digital video sales in 2013 compared distribution channels, allowing them to be more creative with the games. to 2012, while the number of tracks streamed doubled to 7.4 billion, with According to one indie developer, “you can really see the dry British humour in music streaming services such as Spotify and Deezer almost halting a ten-year them”, which has contributed to their surge in popularity. decline in music sales. Size Five Games is a BAFTA-winning indie game developer based in the UK. With music streaming making an ever bigger impact on how people listen to And since their 2009 release of Ben There, Dan That! became a cult classic, their favourite tunes, BBC’s Radio 1 and Radio 1Xtra has said streaming will other indie developers were inspired to pursue the adventure style. Christos soon be included in its top 40 singles chart. The radio station will combine the ‘failnaut’ Reid is working on a new sci-fi adventure mystery called Breathe, number of ‘plays’ on Spotify and YouTube with record sales, in what has been while Cambridge-based Frontier Developments has released an iPad-friendly described as the biggest change in the Official Chart’s history. version of games from its LostWinds series.

Technology

The number of Britons who go online has more than doubled since 2006, with 35.7 million using the internet daily. Reading news has seen the highest growth, with the proportion of people doing so increasing from 20% to 55%.

The UK is becoming a nation obsessed with mobile devices. Smartphone penetration is expected to reach 75% in 2014, and it's having a profound impact on everyday life. Trains have been described the ‘new oﬃce’ as people get down to business on their phones and tablets during their morning commute. And GPS is growing in popularity, as more people are reliant on their phones to navigate through life.

While the rest of the world is excited about the prospect of wearable technology, the UK’s resistance to change shines through, with two thirds of people saying they have no interest in the devices. And although smart glasses have been hailed as the next big thing in technology, just 26% of people would buy them – much less than the global average.

Privacy concerns growing News regarding the amount of personal data collected is making the nation feel uneasy. The NSA collects millions of text messages every day, while tech giants like Google and Facebook track online activity. Indeed, 23% of people say targeted ads are ‘oﬀ-putting’, while three in ﬁve (59%) say advertising based on browsing history makes them uncomfortable. People are demanding more privacy, or at least something in return for all that data.

Brands are recognising the growing concerns over privacy. The Samsung Galaxy Gear smart watch features a tiny camera, letting people take pictures on the go. But with an ever present camera on someone’s hand, people may be worried about being monitored all the time. To avoid this, the watch emits a loud snapshot sound when taking photos, alerting everyone in proximity. The Samsung Galaxy Gear watch warns bystanders when someone takes a photo

Learning goes digital Focus shifting to tablet devices With rising university tuition fees, and people feeling comfortable with the While smartphone penetration has hit an all-time high, it’s not only concept of learning online, MOOCS – massive open online courses – are smartphones that the nation is crazy about. Tablets have become a must-have enjoying huge popularity, with student registrations increasing by 100% in device too. Tablet sales have surpassed those of traditional notebooks, with 2012 to a total of ten million. This alternative education option gives students the UK now buying more tablets than any other European country, and half of the opportunity to access high-quality resources at the fraction of the cost of a Britons now using one. Driving this growth are ‘compact tablets’, as people traditional course, and can be completed in their own time. demand more portability and online access on the go.

One stumbling block for these courses has been credibility, as some With such demand for tablets, brands are keen to create a version of their employers fail to recognize the qualifications. Responding to the growing own. Combining the British desire for a good bargain, Tesco and Argos have demand for online education, leading universities like Birmingham, Sheffield launched budget own-brand tablets priced at under £120. And with the and Warwick have teamed up under the FutureLearn project to offer free number of small cheap tablets in circulation overtaking the number of larger online courses, to "revolutionise conventional models of formal education“. ones, there’s a strong appetite for these compact devices.

Economic Overview Sectors Getting around Home life Eating and drinking economist.com bbc.co.uk bbc.co.uk esrc.ac.uk bristolbites.co.uk citymayors.com bbc.co.uk theguardian.com grillstock.co.uk ctc.org.uk independent.co.uk ibtimes.co.uk standard.co.uk cyclistweekly.co.uk marketingmagazine.co.uk telegraph.co.uk thedrinksbusiness.com ft.com ons.gov.uk telegraph.co.uk theguardian.com gov.uk ons.gov.uk telegraph.co.uk theguardian.com inhabitat.com ons.gov.uk reuters.com uktv.co.uk itv.com telegraph.co.uk vagabondwines.co.uk mintel.com theguardian.com Cultural Character ons.gov.uk weetabixonthego.co.uk Health and beauty tﬂ.gov.uk theconversation.com bbc.co,uk Communicating ons.gov.uk bbc.co.uk theguardian.com economist.com chrystaliscourses.com canvas8.com economist.com express.co.uk Money cipd.co.uk newstatesman.com futureﬁt.co.uk econsultancy.com newstatesman.com gq.com bbc.co.uk iabuk.net telegraph.co.uk healthday.com digitalstrategyconsulting.com internetretailing.net theguardian.com spafuturethinking.com emarketer.com marketingweek.co.uk theguardian.com guardian.com thedrum.com theguardian.com marketingmagazine.co.uk thedrum.com theguardian.com marketingmagazine.co.uk theguardian.com time.com mastercardadvisors.com theguardian.com skysports.com theguardian.com telegraph.co.uk umpf.co.uk theukcardassociation.org.uk thisismoney.co.uk tradingeconomics.com urbantimes.co

Shopping Luxury Technology bbc.co.uk euromonitor.com canvas8.com forbes.com euromonitor.com channelpro.co.uk forbes.com luxurydaily.com iabuk.net gigaom.com marketingmagazine.co.uk marketingmagazine.co.uk ibtimes.co.uk paypal.co.uk mintel.com marketingweek.co.uk professionaljeweller.com telegraph.co.uk networkrail.co.uk rackcdn.com theguardian.com retail-week.com retail-focus.co.uk theguardian.com retail-week.com telegraph.co.uk v3.co.uk retailtimes.co.uk telegraph.co.uk weareapps.com shutl.com thefutureofluxury.co.uk vogue.co.uk Leisure Media and entertainment abta.com amateurgardening.com bbc.co.uk bristolpost.co.uk bbc.co.uk canvas8.com channel4.com eurofitdirect.co.uk hereisthecity.com nationwide.co.uk hexus.net standard.co.uk humaxdigital.co.uk telegraph.co.uk nationmaster.com telegraph.co.uk sizefivegames.com theguardian.com theguardian.com theguardian.com wired.co.uk

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