EMERGING CONVERSATIONS from GLOBAL CONSUMERS ABOUT the RESEARCH Outform Is a Future Retail Agency Covering Emerging Trends in the Industry

EMERGING CONVERSATIONS FROM GLOBAL CONSUMERS ABOUT THE RESEARCH Outform is a Future Retail agency covering emerging trends in the industry. Through our Micro Trends Report, our team will examine topics surrounding consumer insights, retail, design, brand highlights, and technology to bring you industry insights that explore conversations from global consumers across different channels.

Want more info on the latest news and trends? Sign Up For Our Newsletter capsule pieces for the game and Valentino LUXURY FASHION releasing an exclusive 20 pieces for the “We’ll see a world where game. Other crossovers between games and you don’t even have to own BRANDS ARE luxury fashion brands include The Sims and Moschino, Honor of Kings and Burberry, as the physical shoes. You TAKING ON GAMING well as League of Legends and Louis Vuitton, can just own a virtual Luxury fashion brands have begun which featured in-game branded character experimenting with digital spaces and skins as well as real life pieces inspired by version of them and post on are now entering a new territory: video the game. social media with those games. Due to the interactive nature of gaming, augmented reality shoes on During the pandemic, video games surged players are much more engaged with the your feet and get the same in popularity across all demographics. content than they would be while consuming The 2020 Global Games Market Report other types of media like TV or music, which social credibility.” claims that the gaming market attracted are experienced in a more passive way. Jeff Staple 2.6 billion players globally, and increased With customization being a large aspect of Founder, Staple Design video game playing hours by 75%, which gaming, players are always looking to make brought the gaming market’s value to their digital characters a unique as possible, $74.2 billion US Dollars. As video games which luxury fashion brands have noticed as began to dominate the mainstream, luxury a branding opportunity. And because gaming fashion brands took notice and began allows players to go above and beyond Source: Washington Post collaborating with popular video games the parameters of real life, the creative and and gaming platforms to capitalize on aspirational possibilities are endless, making the idea by creating clothes, skins, and luxury fashion and gaming a perfect match. worlds for players to unlock and explore. WHAT PEOPLE ARE SAYING Sources: Vogue Business / Roblox / Jing Daily All the outfits I I own in Animal crossing I In May, Gucci collaborated with Roblox, would wear in real life! a gaming platform popular with Gen Z, Mandi Alerding, Facebook to bring the Gucci Garden Archetypes, a physical recreation of 15 of Gucci’s ...that’s how you connect with consumers and iconic advertising campaign sets, into stay relevant in the market/industry. the virtual world. Players could virtually @starvinmarvinjr, Tik Tok explore the rooms and purchase Gucci Learn more details about the themed items for their avatars. Marc Amazing! Gucci put a handbag on Roblox purchasing journey, behaviors, Jacobs and Valentino have included for sale and it sold for more money then the attitudes, and motivations of gamers. their designs in Animal Crossing: New physical version. This will bring opportunities. Click here to unlock our latest Horizons, with Marc Jacobs designing Source: EA @sameconnerone, Twitter Insights Report on gaming. ABOUT THE RESEARCH

FROM PREVIOUS WEEKS Across all game platforms and BABY BOOMER GAMERS genres, players over the age of 50 are “There is no longer a ‘stereotype enjoying video games just as much game player,’ but instead a ARE ON THE RISE as any other generation, proving that gaming has become much more game player could be your In the past year, gaming has become one inclusive than it has been historically. of the fastest growing forms of entertainment Like most industries in the past year, grandparent, your boss, or even amongst consumers. Though people from all gaming is experiencing a shift your professor. I suspect that walks of life have been learning the ins and outs amongst their consumers’ interests the percentage of older adults of the digital playing landscape, there is still a and trends. To appeal to the rapidly lingering stereotype of the typical gamer being growing market, brands and retailers playing video games will rise a social recluse who finds comfort in their private will need to find creative ways to as baby boomers enter retirement, online worlds. Today however, the landscape appeal to the wider audiences and has changed to include a more diverse array newcomers in gaming. increasing the focus on positive of players, including Baby Boomers whose effects of playing games,” presence in the market has increased by 32% Sources: CCN.com / BabyBoomers.com Jason Allaire since 2018. Associate Professor of Psychology, North Carolina State University During the pandemic, many Baby Boomers discovered or rediscovered a need to play and enter the digital world. With 56% of seniors WHAT PEOPLE ARE SAYING using video games as a form of escape, many My mom she is 64 yrs old and she’s into of them began playing to socialize with loved strategy games like civilization, albion, rune ones safely, stimulate their brains by learning scape etc. . . She enjoys it so much sometimes new skills, and compete in a healthy manner she forgot to cook us meals. while living in a worldwide pandemic. Alex Algoso, YouTube

The older generation also has certain There’s actually a surprising number of playing attributes that are different than other people aged 60+ in the Skyrim community, generations. A recent survey conducted by a few are even very good modders. Games Outform showed that 92% of Boomer gamers like that seem to appeal more to the older prefer to play in solitude than with friends. crowd than things like Call of Duty While gaming by themselves, 91% boomers use @GingerLeeBeer, Reddit Learn more details about the their cell phones as their main device, 88% play purchasing journey, behaviors, primarily on their TV, followed by 66% who If your dad ends up liking the experience of attitudes, and motivations of gamers. play on their PC. Many of these players enjoy playing video games, his coolness will have Click here to unlock our latest puzzle and platform games that allow them to no bounds and will forever be the coolest Insights Report on gaming. stimulate their brains in a fun way. boomer ever! @jasmonoca, Twitter LIVESTREAM “There is already a large SHOPPING IS demographic very familiar with online video and social media that GOING STRONG can tap into live video shopping POST PANDEMIC easily because there are no Livestream shopping continues to make big waves across retail and technological and knowledge barriers. re-define what it means to engage And depending on the selected consumers. Even as physical retail stores have re-opened their doors to channel, you can target a certain the public, big name brands continue audience or tap into a new one.” to go live on social media to enable Josep Nolla real-time conversations with their Co-Founder and CEO, Tipser Source: Fashion Network consumers. Many of these live events are hosted by well-known influencers and spokespeople who give personal WHAT PEOPLE ARE SAYING insight and un-edited content on the products they buy. Viewers are able Shoppers (especially the Gen Z audience) are This is huge in the Chinese market & it’s done “like” products, ask questions, give drawn to transparency, which can translate really well for both B2B & B2C. It’s so interesting opinions, and make interpersonal to long-term loyalty. By creating a marketing how the shift in commerce behaviour was connections with new brands. approach that leverages the social media accelerated by COVID! channels where consumers are often engaging Calbieyum, Reddit In recent studies, research from to start authentic conversations through livestream shopping has found that livestream, brands can establish rapport I do believe livestreaming will end up winning 80% of consumers would prefer and loyalty with larger audiences globally. the hearts and wallets of many US shoppers, but watching a brand’s live video rather Numerous opportunities for data capture, it’s also interesting to me that this is basically the than reading a blog post, while 82% increase in popularity amongst shoppers, and 2020s version of infomercials... of shoppers prefer live video to social influx in online sales, all prove that livestream @Melissa_Minkow, Twitter media content. As a result of this new shopping is going to be a new staple for all marketing tactic, researchers predict eCommerce online tactics. Done right, livestream shopping creates a that livestream shopping is projected community of fans who look forward to your to generate about $11 billion by the Sources: events, respect your expertise, and are invested end of 2021 and $25 billion by 2023. HubSpot / Entrepreneur / Retail Dive / CNBC in your entrepreneurial journey. Source: Facebook @JOrtakales, Twitter deliveries, which can be achieved AUTONOMOUS by way of flying drones or wheeled “Delivery bots, RDVs, robots, reduce the need for large DELIVERIES CAN HELP trucks needed to transport goods to and drones are set to THE ENVIRONMENT their final destination. displace millions of Since autonomous deliveries are truck and van deliveries fully electric, research shows that the technology can reduce carbon over the next decade, as emissions by more than 90%. they are far smaller, As electric vehicles are gaining more flexible, lower in popularity, battery technology is Source: The Verge improving at a rapid rate. These cost, and naturally improvements are working in closely monitored to ensure products arrive tandem with the exponential growth on time and as expected. Although still at suitable for automation of battery manufacturing to make the beginning stages, it is exciting to see this type of futuristic technology starting to and electrification.” Source: Amazon drones and robots cheaper to create Ryan Cintron and operate. be implemented in real life with potential to Senior Research Analyst, Navigant Today, it takes a single click to order anything grow into the standard for deliveries. Research off of the internet, but it takes a lot of effort to Amazon has been experimenting bring it to the customer’s door. As packages with autonomous delivery since 2016 Sources: ITS Deployment Evaluation / EcoBahn / Car & leave the transportation hub and are sent to their through drone deliveries via Amazon Driver / Engadget final destination, many companies are seeing Prime Air and their latest 6-wheeled the high cost of last-mile delivery as well as its delivery robot, Amazon Scout. environmental impact. According to the United Domino’s has also implemented WHAT PEOPLE ARE SAYING States Environmental Protection Agency, the autonomous pizza deliveries in I’ve started seeing these autonomous delivery transportation sector is the second largest source Houston, Texas with the help of its robots in my neighborhood and they are of greenhouse gas emissions in the US and Nuro’s R2 robot. adorable! They politely stop for my dog and accounts for 29% of the harmful gases being wait a good moment after he moves away to emitted into our atmosphere. This type of delivery system is still resume their journey. new and may take a while before Same Goldberg, Facebook Retail giants have now begun using autonomous being legal to implement in cities delivery services to cut the cost of delivery and across the world. As experimentation Many retailers and brands will come up with transport the goods faster, which also creates an continues, the robots’ capabilities to their own autonomous delivery vehicles. This is attractive solution in lessening the environmental safely navigate their way through going to be massive. impact of the transportation sector. Autonomous busy streets will also have to be @WaldeckS, Twitter CONSUMERS “I can’t tell you how many ARE PRACTICING conversations I’ve had about REVENGE SPENDING what restaurants people are Since the start of the pandemic, consumer going to go to, or what fitness savings have grown at an unprecedented club they’re going to go back to, rate. But as pandemic restrictions continue to ease, revenge spending is on the rise. or what trips they’re going to “Revenge spending is the money you drop to make up for lost time...the big vacation take.” you book to make up for the trips you missed Connor Flynn last year, or the new furniture you buy after CEO, Poshmark putting up with your getting-on-in-years sofa during the pandemic.” (RealSimple. com)

Throughout the lifespan of the pandemic, opportunities to spend were scarce, catapulting the stockpile of excess savings to an astonishing $1.7 trillion globally. Discretionary, expenses such as travel, in sales, retailers are hurrying to open up dining and shopping for non-essentials more stores. WHAT PEOPLE ARE goods were all put on pause and the urge to make up for a “lost year” is provoking The National Retail Federation estimates SAYING consumers to splurge with vengeance. retail sales will increase between 6.5% Revenge Spending = When you to 8.2% this year to a total of up to $4.4 haven’t shopped in a year, so you To the Asian market, revenge spending isn’t trillion, exceeding the 4.4% average during splurge. Revenge Travel = When you anything new. As of last April, China began the previous year. haven’t vacationed in a year, so you to see a high demand on luxury items. As As the world begins to open up again book big trips. the country softened restrictions, Tiffany & and vaccination numbers are on the rise, @NickOfNewYork, Twitter Co.’s China sales surged 90% as of May consumers are running towards their 2020, while Hermes, the French luxury favorite stores to the buy items that they’ve I just want a few months of maskless, label known for its pricey handbags, raked so longed for. carefree, hedonistic revenge spending. in $2.7 million in one day from a store @RanchoDinero, Twitter reopening in Guangzhou. Due to this surge Sources: Real Simple / Bloomberg / NBC for her kitchen. A fashion designer is using TIK TOK CREATES A dollar store supplies to create showstopping “So as this economy continues garments. Sunglass display cases, t-shirt SURGE IN DOLLAR folding boards and renter-friendly kitchen to chug along and creates more backsplashes - it seems that the dollar store of our core customer, I think STORE INTEREST aisles are filled with products that can be combined repurposed to create something there’s going to be more and Periodic reports about the changing face amazing and Tik Tok is there to document it of consumers shopping in dollar stores all. And with continuing growth in footprint more opportunities for us to get have revealed an interesting shift since and product assortment, it is no surprise the emergence of a new Tik Tok trend. In that dollar stores are Gen Z’s new favorite in and build more stores.” recent months, stores like Dollar Tree and retail playground. Todd Vasos Source: Gunnar Deatherage Dollar General have noticed an influx in CEO, Dollar General popularity. Last May, Dollar General sales Sources: Yahoo / Fortune / Deloitte / Indigo Digital in the first quarter increased 27.6% to $8.4 billion dollars. But why the sudden spike in WHAT PEOPLE ARE SAYING sales? I get so many life hacks from Tik Tok. I love it. DaniMills1717, Tik Tok As Tik Tok has grown in popularity, trends are constantly popping up and dissipating Alright well Tik Tok dollar tree hauls bouta more rapidly than ever, thanks to the on make me buy up the whole store tomorrow. the app’s “For You” Page. The latest trend Juicyhayy, Twitter to dominate Tik Toker’s feeds? Dollar store hauls. All these store hauls on tik tok got me wanting to go to Dollar Tree Dollar stores’ budget-friendly product sernaysv__, Twitter selection is appealing, especially to a younger generation who may be watching their budgets, especially during the pandemic. Many Tik Tokers are are showing off their crafty side by upcycing their dollar store finds into practical or decorative pieces.

For example, one woman impressed viewers by turning a couple of round cake pans and marbles into a “$3 lazy Susan” Source: Do It On A Dime Official significant differences between both. These centers have been popping up, LIFESTYLE CENTERS: A mall is traditionally filled with staple with almost 412 centers across the “A lot of these mixed-use department stores such as Macy’s, country—meanwhile, some mega malls THE NEW ERA OF JCPenney, and Sears, while Lifestyle across the country have taken the radical centers now are trying to Centers are anchored by specialty stores step of leaving these large spaces to rot recapture that town hall U.S. MALLS such as Pottery Barn, Williams-Sonoma, altogether. Mega malls that were once cohabitated and Crate & Barrel. A traditional mall feel. That’s where people by retail stores and consumers, are now averages around 800,000 square feet Lifestyle centers may be the solution to sitting abandoned as shoppers have versus a Lifestyle Center is able to fit stores our million dollar abandoned eyesores; want to go again, instead of evolved to online shopping. Research in a smaller space of 320,000 feet. with their better structural design, warmer just these rectangular indoor shows that 25% of the country’s 1,000 ambiance, and attention to detail-- malls will close within three to five years. Many developers request for these perhaps this is this future of physical retail. boxes, where everything is centers to respond to a certain period As shoppers’ preferences have shifted, of architecture. Architecturally, Lifestyle Sources: CNBC / Business Insider / Bloomberg / the same.” the rise of Lifestyle Centers has begun. As Centers mix historical styles with warmer Retail Wire Ivan Friedman defined by the International Council of tones and flair. For example, in Annapolis, CEO, RCS Real Estate Advisors Shopping Centers, a “Lifestyle Center,” is Maryland a desolate and abandoned categorized as an upscale national-chain 1960s era mall named the Parole Plaza has specialty store with dining, entertainment evolved into the Annapolis Town Center. WHAT PEOPLE ARE SAYING Proposed Mall of America Waterpark in an outdoor setting. Several hundred apartments, stores, and Source: Street MN office spaces were designed to mimic the Small lifestyle centers with the shops you need Although this sounds like a gussied-up city’s Federalist style and echoes the city’s >> full blown shopping malls. version of a traditional mall, there are historical charm and architecture. Cairo_Mathebula, Twitter

It’s depressing but the mall is a dying scenario. Outdoor lifestyle centers bring more to the table for the shoppers. They will continue to see growth. Allthingscandy1, Twitter

Only the biggest/best malls will survive, so like West Ed and Southgate. There will be more attractions that just shopping. Many malls will get converted to “lifestyle centers”, which have restaurants, limited shopping and other attractions.

Santana Row in San Jose, California Dan_dd, Twitter Source: Mercury News FASHION NFTS: “Selling virtual dresses and HYPE OR HAUTE? assets will be a significant Since the birth of blockchain, industries revenue stream for brands. For have been studying the cryptic world, trying to discern true potential versus hype. my children, the way their avatar As creative aptitude reveals a promising looks in games is equally as future for the immersive web, NFTs pose an interesting opportunity for luxury important as how they look when brands. NFTs, or non fungible tokens, they go to school.” are cryptographic tokens that represent Source: The Fabricant unique digital assets such as digital art or Cathy Hackl audio files that are blockchain verified to box and certificate. Similarly, fashion Futurist & CEO, Futures Intelligence Group Source: Neuno guarantee authenticity. When considering collectibles platform Neuno is reportedly the fashion industry, NFTs can be linked working with five luxury fashion houses to serial numbers that are assigned to to create virtual twins of their most iconic WHAT PEOPLE ARE SAYING specific luxury goods. pieces. Gucci also claims to be on the Thinking of buying my first Digital brink of releasing their first NFT. As far as fashion NFT! SICK SKINS! Previously late to the e-commerce party, utility goes, fashion as an NFT currently Hipurisud, Reddit luxury brands are taking the plunge into the stand to serve as more of an art piece that rather ambiguous world of NFTs, though can be admired rather than worn in the #NFT + Fashion is going to be a juicy it remains uncertain how consumers will real world. In the virtual world however, combo: respond to this new wave of access to users who inhabit Decentraland can use 1. Luxury brands will probably capitalize by digitizing fashion pieces luxury goods and how it will affect the avatars to buy and wear NFT luxury that are sold with a unique physical brands’ images. What does a fashion fashion clothing. NFT look like? How would consumers piece. 2. Digital storefronts for dressing up use them? And could they possibly dilute Though the current ambiguity and jarring your avatar or pseudonymous identity brand names in the luxury market? experience of NFTs in fashion strongly Supsramesh, Twitter contradict the pristine image of luxury, the Brands on the leading edge of this new discoveries being made about the future As soon as I realized that NFT’s made market like Jacob & Co. have started to potential of NFTs in fashion pose a real it possible for fortnite players to create dip their toes into the murky waters. With question for the future: how much of our their own fashion lines and sell them to a starting bid of $1,000 USD, Jacob & lives will be lived in virtual reality? other players in the game...it instantly Co. has released its first-ever NFT watch clicked for me. which the buyer will receive as a digital Sources: Vogue Business / Glossy /Medium TimStodz, Twitter Contact us

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