Jaw-Dropping Stats: Unveiling Product Innovations, Christmas Cutbacks, and Inclusive Brands to Kickstart Your Week!

Marketers expected to deliver more for less this year

63% of marketing and communications professionals are now facing higher expectations to deliver greater results with fewer resources compared to the previous year. An overwhelming majority of the 250 surveyed marketing and PR professionals (55%) also express feeling significantly more stressed in comparison to 12 months ago. Despite the mounting pressure caused by inflation, over half of the respondents (58%) state that they have been allocated a higher budget this year.

In regards to the current state of the market, approximately 18% of marketers perceive times as challenging, whereas 17% claim that their companies are currently experiencing significant growth. However, nearly two-thirds of marketers view their companies as operating steadily, but express the need for additional investment or new business opportunities.

There exists a hopeful outlook regarding the potential impact of AI in bolstering marketing budgets. According to 45% of respondents, AI is expected to drive increased investments in marketing, while 34% believe it may lead to cost reductions. Additionally, a majority of two-thirds (66%) express confidence in AI's ability to enhance productivity, with only 13% expressing concerns about utilizing this tool.

Despite all the challenges, the vast majority (98%) of marketers are optimistic about 2024 overall. Almost seven in 10 (69%) think business will pick up next year.

Source: CommsCo PR

Product launches declined in 2022

Brands launched fewer innovations in 2022, as inflation hit and consumer spending tightened amid the ongoing cost of living crisis.

In 2022, the number of new products launched in Europe decreased from 172,997 in 2021 to 144,432, indicating a decline of 16.5%.

Smaller companies displayed a greater willingness to introduce new products compared to big brands. SMEs accounted for 75% of innovative offerings in 2022. Although only a quarter of new product launches originated from large brands, they contributed to 32% of total sales value for the year. These brands were able to capture more market share due to their superior distribution and supply chain capabilities.

According to research by Circana, brands must prioritize delivering a positive product experience during innovation launches. This is because a significant majority of consumers (64%) have stated that they would not repurchase a new product if it fails to meet their expectations.

Although launching innovations carries inherent risks, there are also considerable potential rewards, as product innovations currently account for 6% of FMCG value sales.

According to Ananda Roy, Circana's global SVP of strategic growth insights, launching new products can seem risky due to the growing competition for shelf space, particularly during a period of declining sales for FMCG products. However, it is undeniable that new product launches can also provide significant value, allowing brands to expand their current portfolio or even establish a completely new one.

Consumers already planning Christmas cutbacks

Around two-thirds of UK consumers expect to cut back spending over the 2023 Christmas season, due to the cost of living crisis.

According to research conducted by the IPA, younger adults are expected to experience a significant increase in cutbacks, with 82% of individuals aged 18-24 planning to save money. Furthermore, women (68%) are more likely to anticipate making cuts during the holiday season in comparison to men.

The hospitality industry appears to be the most affected by consumers' planned savings for the festive period. Approximately 24% of individuals plan to reduce their expenditure on dining out, while one-fifth plan to decrease their visits to bars and clubs.

Planned cutbacks will also target new clothing (23%), gifts for extended family (21%), and premium food and beverages (20%).

A significant portion of UK adults (48%) plan to dip into their savings to cover expenses for Christmas 2023, while 13% intend to rely on credit. Additionally, 10% of individuals expect to utilize "buy now, pay later" schemes to finance their holiday spending, with this number nearly doubling for those between the ages of 25 and 34.

Source: IPA

Less than one in 20 Twitter users feel positive about X rebrand

The platform's rebranding to X has garnered positive sentiment from only 4% of Twitter users. Conversely, a significant majority, comprising 67% of all users, expressed either a fair (26%) or strong (41%) negative response towards the change. This disapproval is even more pronounced among daily Twitter users, with a striking 45% of those polled feeling extremely negative about the rebranding.

According to research conducted by YouGov, the awareness of Musk among UK adults is on the rise, however, there is also a simultaneous increase in dislike towards him. In April 2022, when Musk initially embarked on his quest to purchase Twitter, 63% of British adults held an opinion about the billionaire. This percentage has since experienced a substantial growth, reaching 79%.

In April 2022, 40% of Britons held a negative opinion of Musk, which has now risen to 61%. Among Twitter users, the percentage of those with a negative opinion of the platform's owner has increased from 49% to 67% since April 2022.

Nike and Dove named as most inclusive brands

Nike and Dove are viewed as the most inclusive brands by British consumers, according to research from Kantar.

When 1,000 British consumers were surveyed and asked to name a brand that should be acknowledged for its diversity and inclusion efforts, half of them were unable to do so without being prompted. Among those who were able to name a brand without prompting, Nike was mentioned the most. Respondents praised Nike for its inclusive advertising and wide range of products.

In addition, Kantar provided respondents with a list of 71 brands, including both inclusive brands and their direct competitors. From this list, Dove was the brand most commonly chosen by the respondents.

A significant number of survey participants praised the brand for its inclusive advertising, commending it for adopting this approach before it gained widespread popularity.

More than half (53%) of the respondents state that a brand's commitment to diversity and inclusion plays a role in shaping their purchasing choices.

Source: Kantar