A kind of America

By: Ipacs Tamás Date: 2023. 04. 19. 11:10

According to the franchising website Global Franchise, the pandemic changed the daily lives of consumers. In the last two years many of them decided to live healthier and more comfortable lives, and this resulted in the weakening of their brand loyalty. This trend has had a positive influence on franchise as a business model in the last two years: the changes and uncertainties made many franchisors invest in innovation and optimise processes and systems.

Justin Livingston, the owner of US consultancy firm Franchise Transformations thinks franchise systems are constant, because this is the smartest and the safest business model in the world. US experts say four global consumption trends have the biggest impact on the franchise sector: a focus on values, choices making consumer more sophisticated, omnichannel shopping, and the strengthening YOLO attitude of shoppers.

Based on values

Values are still decisive, but consumer behaviour and shopper decisions are also influenced by generational and national characteristics. The younger generations continue to pay a higher price for products and services that are in harmony with their set of values. Older consumers are more cautious and sometimes they spend less than they can actually afford. More than half of value-focused consumers spend money on brands that are local, sustainable and authentic. According to the latest research results, shoppers buy more online than before.

Seth Godin, the well-known US marketing expert reckons that shopping online represents both an opportunity and a risk for businesses. A bigger selection of products also means more capricious consumers, plus the fact that people spend more time online means that they are seduced by new brands more often.

Omnichannel shopping

During the pandemic the number of online purchases jumped and this changed the shopping habits of consumers. Today 3 from 10 people are browsing online even when they are shopping in a physical store, and about the same number of consumers visits a shop before going online to buy something.

Cate Trotter, co-founder of Insider Trends opines that the success of omnichannel selling depends on how well the online and offline channels can work together. Franchise operators are busy improving the omnichannel experience, as brands are engaging in major development in loyalty schemes and digital channels. Consumers want choices, and businesses need to communicate and advertise several options, so that shoppers can participate according to their own terms. Research by Mintel has found that people are searching for sources of joy – in the spirit of “you only live once” (YOLO) – as the pandemic and other regional and global crises generate anxiety and stress in them. //

This article is available for reading in Trade magazin 2023/4.