Consumer Behavior Trends

BEST EXPLANATION OF HOW CUSTOMER BEHAVIOR ACTUALLY WORKS Fellow innovators, I just witnessed the most PERFECT metaphor for consumer psychology... Stumbled across this raw video from rural India. A herder guides his goats around a massive bonfire - once, twice, three times. Then he steps away. But the goats? They keep circling. Round and round. No leader, no destination, just pure momentum. Each one following the tail ahead, trapped in an endless loop around a fire that might not even matter anymore. And it hit me - THIS is our customer base. 🐑 Watch any consumer trend unfold: - Suddenly EVERYONE needs a Stanley cup (why? Because everyone has one) - Crypto explodes because "everyone's making money" - Plant-based everything because "that's where things are going" - Now it's AI assistants because "everyone's using them" The customers aren't buying solutions. They're not even buying products. They're buying the circle. The fear of being outside it. The comfort of following the herd. The validation that comes from being part of the movement. Here's what 15 years of building startups and innovations taught me: Your customers don't want innovation - they want to feel like they're keeping up. They don't want disruption - they want to be on the RIGHT SIDE of disruption. The most successful products? They don't create new behaviors. They give people permission to do what everyone else is already doing, just slightly better. - Instagram didn't invent sharing photos. - Tesla didn't invent electric cars. - Netflix didn't invent watching movies at home. They just built better fires for people to circle around. So here's my question for the builders in the room: Are you trying to pull customers OUT of their circles, or are you smart enough to build the next bonfire they'll want to dance around? 🔥 The goats will always keep circling. The question is: Are you building the fire or chasing the herd? P.S. - Yes, posting startup wisdom on LinkedIn is also following a trend. We're all circling some fire, friends. 🐐

I've been reflecting on one major trend from last year that I feel will be hard to ignore in 2025: Gen Z’s relationship with brands and social media. This generation doesn’t just consume content, they drive it. And they do so with a level of authenticity and transparency that demands our attention. For Gen Z, brand loyalty isn’t built on flashy ads or influencer endorsements alone. It’s about values. It’s about knowing what the brand stands for and aligning with causes they care about: be it sustainability, inclusivity, or social justice. Here’s how I’ve been thinking about this shift as an entrepreneur: For Gen Z, being true to themselves is really important. They want brands that embrace uniqueness and support personal expression. To connect with them, we need to be authentic and offer products and messages that let them express who they really are. Social Media is the New Word of Mouth: If you’re not engaging in the conversations Gen Z is having on social media, you’re missing out. They trust their peers and online communities more than traditional advertising, and their feedback is immediate and powerful. Experience Over Projection: For this generation, it’s not just about seeing an ad but engaging with a brand in a meaningful way. Whether through personalized experiences, interactive campaigns, or exclusive content, creating a connection is more valuable than ever. Gen Z is not just shaping the future of business but is redefining what it means to build loyalty and trust. Is your brand ready for this shift?

The most expensive mistake in business is assuming your customers will never change. Last year, something shifted in Indian retail. Gen Z (377 million) overtook millennials (356 million) to become our largest consumer group, influencing $40-45 billion worth of apparel and footwear purchases. But they're not shopping at the stores we built for them. [Et Retail] Brands watched their growth collapse in just 12 months. → ZARA fell from 40% to 8% growth, [Et Retail] → Levi Strauss & Co. crashed from 54% to 4% growth [Et Retail] → H&M dropped from 40% to 11% growth [Et Retail] Here's why the growth has slowed down: 📌 Gen Z discovered new brands like Freakins and Bonkers Corner, offering trendy clothes at ₹500-800 📌 They chose self-expression over brand loyalty 📌 70% of their shopping moved online, heavily influenced by Instagram 📌 They demanded inclusive sizing (XS to XXL) and unisex options that legacy brands ignored Take FREAKINS, which clocked ₹25 crore in FY2023, or Bonkers.corner, clocked ₹100 crore. [The Economic Times] [Et Retail] These brands understood what Gen Z wanted: crop tops, baggy clothes, Korean pants, and oversized tees at prices that let them experiment with three different outfits daily. Body positivity isn't a marketing campaign for this generation. It's how they think. When they couldn't find the sizes or styles they wanted at premium stores priced at ₹1,200-1,500, they simply went elsewhere. Myntra saw the shift and launched FWD with ₹500 price points. The result was explosive: 100% year-on-year growth and 16 million Gen Z users, who now represent one in three e-lifestyle shoppers. [Et Retail] Legacy brands bet that Gen Z would "grow up" and pay premium prices. Instead, 377 million young Indians chose values over logos. The most expensive mistake in business? Assuming your customers will never change. What changes in your customer base have surprised you recently?

Theatrical movies aren't dead—but the old approach to them might be. KPop Demon Hunters has been out on Netflix for two months. It’s still sitting at number one on the platform and topping Billboard charts. This weekend, it opened in theaters and pulled in an estimated $18–20 million. Despite showing on just 1,700 screens, it had over 1,150 sold-out showings. This isn’t just a box office win. It’s a signal. Gen Z and Gen Alpha will go to the movies—but not for the same reasons previous generations did. They go for enhanced formats like 4DX. They show up for sing-alongs and cosplay nights. They buy in when a film becomes a cultural moment through social media, fan-driven campaigns, and memeability. They’re not rejecting theaters. They’re rejecting mediocre experiences. I was lucky to be in the room when we sealed the Honmoon. But the bigger takeaway for Hollywood is this: the future of theatrical isn’t about fighting streaming. It’s about creating events that can’t be streamed. Studios and exhibitors should be paying attention. The demand is there. But the delivery needs to evolve. What’s the next film that will make going to the theater feel essential? #GenZ #GenAlpha #TheatricalRelease #CinemaExperience #StreamingVsTheaters #EntertainmentIndustry #KPopDemonHunters #FilmMarketing #AudienceEngagement #CulturalMoments

When L'Oréal uses AI to create new hair colors based on social media trends, they're in salons within weeks. Kraft Heinz—dead last in our study—still takes months to tweak a formula. After analyzing 26 major CPG companies at IMD's Center for Future Readiness, I discovered what separates winners from losers: The most future-ready companies treat consumer data like insider trading information. BACKGROUND: CPG in 2025 is brutal. Inflation persists. Gen-Z demands sustainability without premiums. Tariffs reshape supply chains daily. McKinsey & Company identified 150+ AI use cases for CPG transformation. Only 5 of 26 companies actually execute them. THE REVELATION: Coca-Cola didn't randomly launch Topo Chico Hard Seltzer. Their AI spotted the trend through social listening while competitors debated in boardrooms. By launch, they'd secured distribution nationwide. That's not innovation. That's prediction. What separates the top 5: L'Oréal (#1): 3.5% of sales to R&D. AI analyzes preferences real-time. Virtual try-on apps. Creates products from social trends. A 110-year company with startup velocity. The Coca-Cola Company (#2): Democratized AI internally. Every manager accesses demand forecasting. They analyze weather + social sentiment + sales simultaneously. These aren't tech companies selling beauty and beverages. They're prediction machines that happen to make products. THE WINNER'S FRAMEWORK: 1. AI at scale, not in pilots Winners integrate into workflows. Losers run demos. 2. Supply chains that anticipate Real-time visibility + AI forecasting = competitive firepower 3. D2C as intelligence goldmine 73% use multiple channels. Mine every interaction. 4. Disrupt yourself first Coca-Cola launched Costa Coffee, hard seltzers. Grew. Kraft Heinz protected legacy brands. Shrank. 5. Sustainable without premium Gen-Z spending hits $12T by 2030. They demand action at everyday prices. —— The inconvenient truth: Most CPG companies treat data like reporting instead of radar. Winners don't predict trends—they're already shipping products while competitors debate. Technological patience (knowing when to scale) + organizational agility (pivoting fast) = market domination. Three years from now, every CPG company operates like L'Oréal. Or they don't operate at all. P.S. Full Future Readiness Indicator here: https://bit.ly/3YTBzbX

One of my students was telling me how the bakery she works in went viral.   Fortitude Bakehouse, just behind Russell Square tube, specialises in sourdough baked goods, and is especially known for its decadent cream donuts, called “beignets”. In July, a food-blogger’s video showcasing Fortitude’s array of baked goods reached over 1 million views on TikTok, catapulting the bakery into the foodie spotlight.   From that moment forward, the bakery experienced exceptional demand – with customers sometimes queueing for up to one hour just to get their hands on a beignet.   In Fortitude’s case, people wanted to be part of the excitement and post a picture of what everyone else seemed to want: a donut the size of their head!   So why is it that we often tend to follow the crowd?   “Herd behaviour” is the phenomenon in which individuals think or act similarly, imitating group behaviours rather than making independent decisions.   Examples of herd behavior are extremely common. #BlackFriday and #CyberMonday are somewhat cynical efforts on behalf of retailers to induce herd behaviour. But it happens in financial markets, fashion, social media, and politics, to name a few. Heck, you can even see it crossing the road – just watch people blindly walk into traffic when one person races against the light.   John Maynard Keynes, a prominent economist and philosopher of the 20th century, proposed numerous motivators for herd behaviour in humans. He suggested that when faced with uncertainty, individuals look to others for cues on how to behave.   But the big motivator for herd behaviour is the social pressure to conform. Social conformity not only helps us to maintain a good reputation, it also fulfils our desire to fit in and feel a sense of belonging. It is one of the most powerful nudges available.   This is why the UK’s Behavioural Insight Team features it so prominently in their behavioural change framework (EAST): E – Easy A – Attractive S – Social T – Timely   Humans are a social species; it is intrinsic to who we are. If you want to leverage good #BehaviouralScience when designing influence campaigns, don’t omit the social component!    #DecisionMaking #Nudge

Is Gen Z preferring LinkedIn over X (Twitter)? Yes, this is becoming true on a global scale, and also here in Japan, we are starting to see this trend clearly. Only five years ago, X (formerly Twitter) practically dominated the social media scene in Japan. It was even considered a crucial "information infrastructure" during disasters. Even the Japanese government and local authorities actively promoted its use among the public. In Japan, X has had a stronger presence than in many other countries. Its short-form content and high level of anonymity were said to fit the typical characteristics of the average Japanese user. However, when I look around today, I can’t help but notice a huge shift in X’s position. X was once a platform loved by younger generations in Japan, but now, many young people are leaving it. I have even met many young individuals who do not have an X account at all. One major reason for this is that X is becoming an increasingly hostile and dangerous place. In Japan, we have seen several tragic incidents related to X. It has become common for large numbers of anonymous users to gang up and attack a single person. Sadly, some young people from Gen Z have even taken their own lives due to the relentless attacks from anonymous X accounts. This phenomenon seems to have accelerated since Elon Musk’s acquisition of X. In the past, the platform’s management took some responsibility for monitoring harmful behavior and improving the situation. But today, many young users feel completely unprotected. The global trend is much clearer. Many studies and statistics show that X’s user base and engagement levels are rapidly declining, particularly among Gen Z. On the other hand, LinkedIn has seen impressive growth in user numbers and business usage. This trend is likely to apply in Japan, where X still holds significant influence for now. Recently, I met a young entrepreneur in Tokyo who declared that he was shifting his primary social media platform from X to LinkedIn. I believe this is a really wise decision. While some may find X addictive, the risks and drawbacks are enormous. If you damage your mental health before establishing your brand, the costs far outweigh any potential benefits. I hope that LinkedIn will continue to support the growth of healthy professional networks in Japan, leading to more positive business activities. And this trend will also increase international connections. I am rather optimistic about seeing more of Gen Z actively using LinkedIn as they navigate the future. This is my hope, but I’m also confident that it’s not far from becoming a reality.

Younger generations – particularly Millennials and Gen Z – are completely rewriting the rules of connection, and I can’t stop thinking about our latest research. While it’s easy to worry about getting sucked into our digital worlds, young people are focusing on creating “Fourth Spaces,” using their online interests as bridges to gather and create meaningful in-person connections. It’s unlike anything we’ve seen before. Picture this, Anime fans who met through Discord organizing local cosplay meetups, (which are up 50% on our platform, by the way), or online cooking enthusiasts creating supper clubs where strangers become friends over shared recipes. What moves me most? 84% of people are forming real, lasting friendships through these gatherings. In a world where we often hear about the challenge of making friends as adults, this generation has found a solution that's beautiful and simple: Start with what you love online, then bring it into the real world. One attendee's words really touched me: "Meeting people like me made me feel less alone – and more at home and seen." That's exactly the kind of impact we dream about at Eventbrite. That’s why we do what we do. Dive deeper into this fascinating shift and explore our full "Fourth Spaces" study in my latest edition of "Small Business, Big Lessons."

Unisex beauty, will it challenge your brand? +40 % of Gen Z prefer gender‑neutral beauty, but men’s and women’s skin differ. How do we create products that work for everyone? Beauty is viewed as fluid, not fixed, makeup, hair, and style change freely day to day. People blend traditionally masculine and feminine looks, recognizing that while skin biology differs, beauty expression isn’t tied to gender. +50 % considering beauty products as not just “for women” anymore. Inclusive beauty, prioritizing products that work across all skin tones and types. While biological differences exist, brands now focus on skin needs, not gender, offering solutions for dryness, acne, sensitivity, and aging for everyone. +68 % of Gen Z men (ages 18‑27) use facial skincare >>Biology meets expression<< Gen Z understands that men and women have real skin differences (collagen, epidermis thickness, oil production) but views these as guidelines, not rules. Skincare is more about individual traits: oily, dry, sensitive, aging, etc., rather than whether you were assigned male or female at birth. →Thickness & Collagen: Men’s skin is 20–25% thicker, with denser collagen. → firmer skin and later aging. Women’s skin is thinner, loses collagen faster, and shows wrinkles earlier. →Oil & Pores: Men have oilier skin and larger pores, making them more acne-prone. Women produce less oil but experience hormonal fluctuations. →Hair, Sweat & pH: Men have thicker hair, sweat more, and a more acidic pH. Women have finer hair, less sweat, and slightly higher pH. →Fat Layer: Men have less subcutaneous fat → tighter skin. Women have more fat in hips and thighs → softer, cushioned appearance. >>Design and packaging<< Design and packaging play a key role in making unisex products feel authentic. Brands can move away from gender cues by using neutral colors, minimalist typography, and functional shapes, focusing on skin benefits like hydration or oil control rather than gender labels. Clear layouts, icons, and ingredient transparency help create a universal appeal. Packaging can also reflect Gen Z values through sustainable materials, refillable systems, and modern matte finishes. Glass, recycled plastics, and modular designs signal quality and inclusivity, turning unisex skincare from a challenge into a meaningful connection with Gen Z consumers. Concluding: Gen Z is driving inclusive, gender‑neutral beauty. By focusing on individual skin needs and using thoughtful, neutral, and sustainable design, brands can turn the challenge of unisex skincare into an opportunity to connect and innovate. Find my curated search of examples, and get inspired for success. Featured brands: Aesop dussl Fluide Humanrace Milk Makeup Momiji Beauty Non Gender Specific NOTO Botanics Panacea Pleasing (MALIN+GOETZ) #beautyprofessionals #beautybusiness #genderless #unisex #fluid #genZ