Informed choices and targeted solutions

This article is available for reading in Trade magazin 2025/2-3.

Consumers now want not only a longer, but also a healthier and better life

Spending more wisely

Added value has become an expectation and we are approaching shopping strategically. Companies need to respond to this with solutions that deliver clear benefits and tangible, useful initiatives if they want to retain the attention of their target group. Prolonged economic uncertainty has set a new norm for spending. The balance is constantly tipping when it comes to purchasing decisions: buying a product or service will only satisfy an immediate need or will it be useful in the future? Consumers don’t always consider the cost-effective option to be the best one. Thus, in the case of beauty and hygiene products, the growth in sales of premium products may exceed that of mass products. Shoppers focus on overall value and expect brands to deliver long-lasting, useful initiatives.

Eco-logic

The selection of sustainable products continues to depend on individual values, but consumers are now looking closely at how well they fit their needs. Sustainability claims are no longer accepted unconditionally, so it is best for brands if they are able to present tangible evidence. Even if the economic uncertainty has brought a temporary shift towards more economical options against green characteristics, this hasn’t led to a complete turnaround. More than 60% of consumers were still seeking to make a positive influence on the environment in 2024, and two-thirds remain concerned about climate change. However, although 52% of consumers find eco-labels reliable, only 15% are willing to pay more for such products.

Six out of ten shoppers in 2024 were still trying to make a positive impact on their environment

Selective focus

Consumers have a difficult task when they navigate the seemingly endless choices between the notifications that inundate them and the seemingly endless options available to them. Between January and August 2024 more than 23,000 new brands were launched online in 32 countries and 54 FMCG categories. Obviously, the solution is not to reduce the number of options: open, honest communication and support for intuitive discovery are necessary, for example through clear labels on packaging, a “streamlined” shopping experience, personalised recommendations and quality customer service.

AI-ambivalence

Artificial intelligence has been put on a pedestal over the past few years, but wider AI use and the failures it has brought have raised scepticism and concerns about the technology’s supposed impact on the labour market. 43% of consumers consider generative AI a reliable source of information, with 25% citing relevant product recommendations as its main strengths when shopping. For businesses generative AI is already proving to be a powerful tool – 41% of professionals said their company has begun to invest more in digitalisation in recent years, as a reaction to changing consumer habits, and 65% said they have such plans for the next five years. Despite its many benefits, it is worth refraining from over-reliance on AI, as human oversight is a fundamental requirement and interpersonal touchpoints remain an integral part of interactions with brands. //

L’Oréal’s always-on, generative AI-based beauty assistant aims to answer consumers’ questions