Macro Trends:

As we are aiming to increase Shu Uemura’s marketshare within the L’Oreal group, it is vitally important to analyse trends in the social and retail market that will directly affect the brand in the future, to ensure we remain ahead of other brands in terms of innovation and service.

We have therefore split the following section into Micro and Macro trends, and focused on the key future happenings from our trends research that will benefit Shu Uemura.

Macro Trends:

1. Anxiety:

With the UK going into recession earlier this year, consumers have started to become more anxious when buying into brands. This will further drive an interest in safety, security and permanence, as “People are no longer in the mood to experiment, and therefore we can expect the return of simplicity, no frills, back to basics”. (Richard Watson for nowandnext,2009:online) This consumer uncertainty will benefit Shu in terms of its simple and clear brand identity, and its status as a luxury cosmetics brand combining Science, Nature and Art. This strapline will ensure the consumer feels as though the product has been through a process of being experimented with, and will therefore be more likely to trust the product, however, to increase it’s market share, Shu need a way of marketing that stands out from other cosmetics brands, to ensure they increase brand awarness and loyalty in this difficult economic crisis. To achieve this, Shu Uemura could offer products and services that offer a sense of security, or reduce stress as part of a daily cleansing routine. Instead of just a product, reassurance could be provided by service in store, as “generally it’s reassurance with a human face attached that people
are after” (nowandnext.com:online,2009) These nostalgic products and experiences that offer the belief that we once lived in less anxious times will work well to ensure the consumer feels a vital part of the brand.

2. Ageing:

“According to the UN’s latest biennial population forecast, the median age for all countries is due to rise from 29 now to 38 by 2050.” (economist.com:online,2009) Currently, the world’s societies are ageing at a rapid pace, as people are now living for much longer than what they used to, “In 1900, average life expectancy globally was 30. The figure now is 67.” (economist.com:online,2009) Although less children are being born, and therefore less could-be consumers for Shu Uemura, now is a time when it is vital to gain and retain consumers at an early age, to ensure they stay with the brand when society is ageing.

Shu Uemura is an innovative brand in terms of its beauty process, rather than a fixed focus on one type of cosmetics, and this appeals to all ages of consumer. This is a benefit for the Shu Uemura, as if they introduce the process of cleansing and being made up to particularly a younger audience, consumers will be more likely to be loyal to the brand and trust enough to stay with it in the future.

3. TECHNOLOGY

As Walker discusses the importance of technology in his future trends article; “Make absolute use of technology in retailing to heighten shopper experience and connect your customers. Getting your product to your targeted and connected customer, through your unique proposition, seamlessly delivered with technology driven metrics is the key.”(dynamicbusiness.com,2009:online) it is evident that technology within marketing influences consumer taste, as particularly now, at a time of recession, they want a stronger connection with a brand and its products. Shu Uemura would benefit from utilizing channels such as the internet which would offer consumers an interactive way of engaging with the brand and its values.

4. LIQUID RETAILING

With a growing demand for flexibility and technology in consumer’s shopping experiences, Liquid Retailing is a trend which reflects the evolution of retail format to meet these needs as it is now more about a co-ordinated lifestyle between product and all it encompasses. (dynamicbusiness,2009:online)

Because of this, an increasing number of pop up stores are emerging to provide quick entrance and exit for brands to trial new concepts or products, focusing on creativity, immediacy and innovation.

Retailers aim to portray a sense of urgency to their consumers, through the use of a limited edition pop up store, implying it is a must see event. As Gogoi discusses in his article based on this theory, it is evident “there's a growing sense of haste in people's lives. In response, companies trying to get consumers' attention are trying to create a sense of urgency” (businessweek,2008:online) through the use of these fast paced, one off stores. To increase Shu Uemura’s market share, part of our strategy could include the use of a Pop Up store to create a buzz around the brand and its concept, therefore raising brand awareness. This would be a short-term strategy which would then influence the design and atmosphere of the main store itself, to create a long- term effect. A recent successful example of this was the Lacoste Lightbox Pop Up store in Covent Garden, London which was based upon their sponsorship of the ATP tennis tournament at London’s O2 arena. This not only created a buzz around the products themselves, but through the use of a digital exhibition, focused on the brands heritage and focus.

5. BACK TO BASICS:

Influenced predominantly by the recession, consumers are now looking for tradition and comfort within brands to return to the safe feelings of childhood. U.K. Next Big Thing founder and futurologist, William Higham, identified this trend, commenting that the desire for “heritage-inspired products is driven by Generation Y, who’ve grown up on technology but are now interested in other types of manufacture and the old ways.” (dynamicbusiness,2009:online) Consumers are therefore looking for brands that offer strong heritage and a meaningful brand story that they can then relate and remain loyal to, something which Shu Uemura could focus on with their Japanese traditions.

Jo.T