havas prosumer report: money, money, money

COMITÉ MÉDICIS ROME – 25 NOVEMBRE 2016

2016 GLOBAL PROSUMER STUDY

Argentina ● Australia ● Belgium ● Bosnia and Herzegovina ● Brazil ● Cambodia ● Canada ● China ● Colombia ● Croatia ● Czech Republic ● Estonia France ● Germany ● India ● Ireland ● Italy ● Japan ● Laos ● Latvia ● Lithuania ● Mexico ● Myanmar ● Netherlands ● Philippines ● Portugal ● Russia

Saudi Arabia ● Serbia ● Singapore ● Slovenia ● South Africa ● Spain ● Turkey ● United Arab Emirates ● United Kingdom ● United States

37 markets n=11,976

WHO ARE PROSUMERS?

For more than a decade, Havas has been tracking the roughly 15‒20% of consumers who are influencing trends and shaping markets around the globe

Key characteristics:

•  Embrace innovation •  Constantly seek out information & experiences •  Enthusiastic adopters of new media & technologies •  “Human media” who transport attitudes & ideas •  Marketing savvy and demanding of brand partners •  Highly influential and sought-after for opinions & recommendations

In this study, 20% of the sample qualify as Prosumers

OBJECTIVE: UNDERSTAND HOW PEOPLE ARE REACTING TO ECONOMIC SHIFTS

Including:

o  The rise of financial insecurity

o  Changing attitudes toward money and credit

o  Rethinking capitalism

o  Fintech and the future of banking

o  Implications for brands

5

THE GLOBAL ECONOMY AND ME

THE FLAWS OF OUR INTERCONNECTED SYSTEM

GLOBAL CRISES

NATIONAL CRISES

PERSONAL CRISES

7

CONFIDENCE HAS TAKEN A HIT AT ALL LEVELS

How worried are you about each of the following? (% very/somewhat worried)

GLOBAL FEARS…

74% / 66% PROSUMERS / MAINSTREAM

“I am worried about a global economic recession”

68% / 65% MILLENNIALS / BOOMERS

68/54 51/40 57/66 63/82 71/62 83/84

8 Image: Creative Commons/Gabriele [email protected] (% very/somewhat worried)

…COMPOUNDED BY NATIONAL FEARS…


9


58/36 41/13 60/74 56/49 81/78

“I am worried about my country going bankrupt”

Image: Creative Commons/Ben [email protected] (% very/somewhat worried)

…COMPOUNDED BY PERSONAL FEARS


“I am worried about running out of money as I grow older”


74/47 74/33 75/75 61/52 62/57

10 Image: Creative Commons/Daniel [email protected] (% very/somewhat worried)

VS

DEVELOPED MARKETS WORRY IT’S ALL DOWNHILL FROM HERE


“Children born today will have more financial security than their parents had”

16/24 21/16 4/3

11

7/11 10/8 7/7

“Children born today will have more financial security than their parents had”

59/65 65/57 56/58

65/50 60/61 52/40


Image: unsplash.com: Justin Peterson

Developed markets Emerging markets

IN TURN, PESSIMISM/OPTIMISM AFFECTS A COUNTRY’S MOMENTUM

12 Prosumer Report, Pride & Prejudice, 2016 Image: Creative Commons/Adam [email protected]

WHAT WE WILL COVER IN THIS REPORT

13

IN RECENT YEARS, FRUGALITY HAS BEEN VENERATED


“I could happily live without most of the items I own”

31/28 55/66 50/60 48/40 57/50 63/67

15 Prosumer Report, The Sharing Economy, 2014 Image: unsplash.com: Jez Timms

16

TODAY, UNCERTAINTY MAKES US MORE PRAGMATIC THAN IDEALISTIC

“We need to get used to living in a world with less economic growth than in the previous century”

PROSUMERS / MAINSTREAM

63%

60%

57%

62%

65%

54/56 62/63 67/60 80/77 49/57 70/71

Image: unsplash.com: Jordy Meow

WE HAVE TO PREPARE FOR THE WORST…

“I need to get used to living in a world with less money than I had a few years ago”

17

46/55 60/51 44/42 72/65 48/66 68/64

58%

58%

54%

59%

63%


Image: unsplash.com: Tikkho Maciel

…AND WE MUST PREPARE OUR CHILDREN AS WELL


“Parents should teach their children to be happy with less money and fewer possessions”


“At school, children should be taught the ‘cost of things’ (how much it costs to attend college,

maintain a car, rear a child, etc.)”

90/77 90/86 89/86 81/82 92/84 82/72 92/83 90/80 96/90 94/82 84/80 81/63

18 Image: Creative Commons/[email protected]

19

RISK PERCEPTION & PROJECTION: A CULTURAL DIVIDE

RISK-TAKING MARKETS ARE LESS WORRIED ABOUT THE FUTURE…

20

“I worry about losing money I’ve invested” “I worry about my adult child(ren) requiring my financial support” (PARENTS ONLY)

…WHILE RISK-AVERSE NATIONS ARE MORE PESSIMISTIC

21

“I worry about losing money I’ve invested” “I worry about my adult child(ren) requiring my financial support” (PARENTS ONLY)

22

BUT, THERE IS A BUT…

23

“MONEY CAN’T BUY HAPPINESS, BUT NEITHER CAN POVERTY”

LEO ROSTEN (AMERICAN HUMORIST)

Image: unsplash.com:, Tpujohn Das


“My life would be better if I had more money”

62/66 71/58 81/75 77/64 81/76 83/79

24

AS IT TURNS OUT, MONEY CAN BUY HAPPINESS


“I would be happier if I had more money”

61/70 74/66 90/83 79/58 85/77 83/81

77% OF MILLENNIALS GLOBALLY WOULD BE HAPPIER WITH MORE MONEY

Image: unsplash.com: Seth Doyle

HOWEVER, HAPPINESS DEPENDS ON MONEY NOT BEING OUR SOLE FOCUS


“Money gives meaning to my life”

21/36 34/30 69/54 45/30 74/63 42/43


“People obsessed with money are missing out on the true meaning of life”

71/76 88/72 77/62 87/81 79/81 92/87

VS

25

47%

40% 40%

39%

33%

81%

76% 77%

78%

78%

Image: unsplash.com: Juan Galafa

“THE GOOD LIFE” IS ABOUT SIMPLICITY, NOT MINDLESS CONSUMPTION

“I admire people who are rich and live simply” “I admire people who are rich and are not afraid to show it”

VS

75/59 61/46 71/72 74/71 81/89 93/86

MILLENNIALS / BOOMERS

43/15 31/15 49/18 22/14 56/52 34/33


26

84%

73% 77%

74%

70%

34%

29% 31%

30%

22%

Image: unsplash.com: Sarah Dorweiler

WEALTH IS NOT ABOUT HAVING MORE BUT ABOUT GETTING MORE OUT OF LIFE

27

78% of US millennials would choose to spend money on a desirable experience or event

over buying something desirable

Eventbrite’s Research of Millennials


“I would rather spend money on an experience than on a product”

49/41 55/38 56/42 46/44 52/60 46/53


* Prosumer Report, Sharing Economy, 2014 Image: unsplash.com: Vaida Tamosauskaite

EXCEPTION: IN EMERGING ECONOMIES, MONEY IS A WAY TO DIFFERENTIATE

28

“Money gives meaning to my life”

62/52 85/92 73/71 62/73

“Money is essential to stand out in the crowd”

67/44 90/84 71/56 56/60 81/73 64/80

PROSUMERS / MAINSTREAM PROSUMERS / MAINSTREAM

69/54 74/63

Image: unsplash.com: Hisu Lee

29

DOWN WITH DEBT

WE ARE BURDENED BY DEBT (YOUNGER PEOPLE ESPECIALLY)

30

GLOBAL DEBT = 3X THE SIZE OF THE GLOBAL ECONOMY

↑ $60BN SINCE 2007, TO REACH A TOTAL

OF $200TR

McKinsey Global Institute 75/39 62/29 85/80 62/53 80/71 89/79


“My life would be better if I had less debt”

76%

68%

72%

72%

57%

Image: Creative Commons/16:[email protected]

31

HOW MUCH DOES YOUR NEWBORN OWE ?

2012 (US)

2016 (US)

Sources: US Office of Management and Budget, US Census Bureau, and Congressional Budget Office

STUDENT DEBT IN US: $1.2TR

32

DESPERATION LOOMS

“What would you be willing to do to get rid of debt?”

US MILLENNIALS

34% would sell most of the things they own

21% would get Kardashianized*

14% would sell an organ

10% would sell drugs

9% would steal

9% would prostitute themselves * Turn private life into reality TV show

Image: Creative Commons/Our Lady of [email protected]

WE ADMIRE THE DISCIPLINED


“I admire people who avoid using credit cards”

VS 50% MILLENNIALS

41% BABY BOOMERS

59/58 48/47 67/6562/46 38/27 27/27

33 Image: unsplash.com: Volkan Olmez

AND WE TRY TO RESERVE DEBT FOR ONLY THE MOST ESSENTIAL INVESTMENTS

34

For which of these would you be willing to take out a loan/incur debt?

35

PERCEPTIONS OF VALUE IN THE SHARING ECONOMY

36

TODAY, SO MUCH INFORMATION AND ENTERTAINMENT IS LOW-COST OR FREE

37

“We live in a world where fewer and fewer things are free”

90/78 83/81 77/8383/85 93/94 56/70

“We live in a world where more and more things are free”

10/22 17/19 23/1717/15 7/7 44/30

YET, WE FEEL AS THOUGH WE’RE CONSTANTLY REACHING INTO OUR WALLETS

VS

82%

86%

82%

86%

90%

19%

14%

18%

14%

10%


Image: unsplash.com: Vitaly

38

“The sharing economy is helping people become successful entrepreneurs”

THE P2P ECONOMY HAS MONETIZED US, MAKING US MORE AWARE OF OUR VALUE…

53/42 82/78 82/69 53/31 69/54 62/46

67%

51%

55%

52%

44%


39

“The sharing economy is taking advantage of workers to keep prices low for the rest of us”

…WHILE ALSO MAKING US LEERY OF ATTEMPTS TO TAKE ADVANTAGE OF US

38/40 67/64 50/47 61/38 71/50 43/43

53%

45%

46%

48%

41%


40

WE’D RATHER HOST A REFUGEE THAN SHARE OUR PRIVATE DATA FOR FREE…

Which of these would you be willing to do for free?

41

…UNLESS WE GET SOMETHING IN EXCHANGE

“I am happy to share my personal data in exchange for free access to culture/entertainment and information”

“I am happy to watch advertising in exchange for free access to culture/entertainment and information”

Image Unsplash.com: Anthony Delanoix

43

OUR ECONOMIC SYSTEMS ARE BEING CALLED INTO QUESTION


“My country’s current economic model isn’t working”

67 / 65 48 / 49 19 / 32 79 / 69 53 / 60 57 / 60

Image: Creative Commons/Sam [email protected]

44

A GROWING SENSE OF CAPITALISM RUN AMOK


“I worry that current conditions will lead to a violent conflict between the rich and the poor”

44/42 39/29 64/61 57/58 67/67 75/66


59/24 42/22 72/54 51/40

91/73

Image: Creative Commons/Benno [email protected]

45

THE MIDDLE CLASS IS STRUGGLING TO HANG ON

“It frustrates me that I have to spend so much of my time working just to support myself/my family”

56%

50%

57%

55%

38%

46

A SENSE OF INJUSTICE PREVAILS—EVEN IN TRADITIONALLY MERIT-BASED SOCIETIES

51/43 43/35 38/26

“The harder a person works, the more money he or she will earn”


31/30 30/26 36/42 40/30

Image: unsplash.com: Jesse Orrico

47

HOW DO WE REBOOT OUR FINANCIAL SYSTEM?

48

1. GOVERNMENT AS JOB CREATOR…

“To fight unemployment, governments should invest more in science and technology”

64/57 69/58 91/71 78/58 92/80 91/82

“To fight unemployment, governments should invest more in rebuilding/repairing aging infrastructures”

72/69 82/67 74/58 74/62 85/79 78/72


83%

71%

70%

74%

74%

77%

69%

63%

70%

76%

Image: Creative Commons/[email protected]

49


“Countries that provide free- or low-cost college/university to their citizens will have an economic edge in the future”

62/66 73/62 88/74 88/72 84/80 89/83

…AND EDUCATION SPONSOR

Image: unsplash.com: Baim Hanif

VS

50

2. MORE EQUITABLE TAXATION…

“I admire people who use legal means to avoid paying their fair share of taxes”

“I resent individuals who don’t pay their fair share of taxes”

31%

31%

38%

32%

23%

83%

80%

76%

81%

86%

Image Unsplash.com: Jon Flobrant

VS

51

…ESPECIALLY FOR COMPANIES

“It’s just good business for companies to avoid paying their fair share of taxes”

“I resent companies that don’t pay their fair share of taxes”

28%

29%

32%

29%

23%

83%

80%

76%

81%

86%

Image: unsplash.com: Julian Alexander

52

3. A SPIRIT OF SHARING—INDIVIDUALLY…


“It makes me feel good to share my money with people in need”

84/61 73/46 71/49 48/33 90/79 87/65

Image: unsplash.com: Madi Robson

…AND/OR GOVERNMENT MANDATED


“The world’s wealth should be redistributed so no one is extremely rich and no one is extremely poor”

67/52 87/77 79/69 69/70 88/78

THE YOUNG ARE LEADING CHANGE


61/29 69/44 75/50

70/54

53

83/83

70/30 61/52

Image: unsplash.com: Didier Weemaels

54

LIVE TO WORK OR WORK TO LIVE ?

55

PEOPLE ARE RELUCTANT TO REDUCE THEIR WORK HOURS

41%

40%

40%

41%

36%

“To fight unemployment, people should work fewer hours so more positions are available”

Image: unsplash.com: Breather

56

WORK IS ABOUT FULFILLMENT, PURPOSE & MEANING

“Parents should steer their children toward high-earning careers”

“Parents should steer their children toward careers they’ll love, regardless of how much they pay”

VS 19%

18%

17%

18%

13%

82%

83%

83%

82%

87%

Image: unsplash.com: Ben White

57

BUT, PERCEPTIONS OF WORK REMAIN CULTURAL

“If I were to become a billionaire tomorrow, one of the first things I would do is quit my job”

36/49

61/55 61/55

54/38 36/36

LIVE TO WORK WORK TO LIVE

65/52 60/62

48/39 42/45

VS

41/45

33/45

33/28

Prosumer/Mainstream


BANKS ARE HERE TO STAY

“By the end of this century, banks will have completely disappeared”

“Banks do not help me reach my financial goals, so I will not need them in the future”

59


40/10 26/12 25/6 12/15 27/20 32/24 44/19 25/11 29/20 36/25 36/29 37/32


19%

16%

20%

16%

14%

29%

26%

28%

27%

23%

Image: unsplash.com: Tim Evans

60

“My bank costs me too much money” “My bank helps me save money”

VS

FOR NOW, THEIR PROS OUTWEIGH THEIR CONS


23/22 25/26 37/36 74/67 12/19 56/65 77/78 75/74 63/64 26/32 89/81 44/35


43% PROSUMERS 46% MAINSTREAM 43% MILLENNIALS 52% GEN XERS 47% BOOMERS

56% PROSUMERS 53% MAINSTREAM 57% MILLENNIALS 48% GEN XERS 53% BOOMERS

Image: Creative Commons/HSBC [email protected]

61

THE WEST, ESPECIALLY, IS ATTACHED TO TRADITIONAL BANKING

Image: Creative Commons/Adrian [email protected]

39%

31%

33%

32%

25%

“Traditional banks are outdated”

45/14 26/14 36/36 26/18 50/48 47/41


HOWEVER , THERE IS ROOM FOR IMPROVEMENT

OPPORTUNITY FOR BANKS TO EDUCATE AND EMPOWER…

63

71%

59%

64%

61%

50%

“I wish I were smarter about spending and saving money”

64/37 58/18 75/74 53/42 80/72 78/64


“Spending and investing my money makes me feel smart”

69/34 56/32 65/58 54/35 81/79 67/46


74%

57%

66%

59%

46%

Image: Creative Commons/John [email protected]

64

…TO PLAY A LARGER ROLE IN MAJOR LIFE DECISIONS/CHANGES…

“My bank makes my everyday life better” “My bank helps me with life-changing projects/matters”

52/74 56/85 40/56 21/29 68/80 67/84


48/26 44/15 60/44 79/71 32/20 33/16


VS

Image: Creative Commons/Tax [email protected]

57%

59%

57%

60%

66%

42%

39%

43%

40%

34%

65

…AND TO OFFER MORE COMPREHENSIVE SERVICES

“I would like to have most of my financial life* bundled within a single organization”

62/31 53/20 37/8 49/37 68/47 66/62



*e.g., banking, investments, mortgage, life/car/home insurance

AN EAGER AUDIENCE FOR DIGITAL ADVANCES—ESPECIALLY IN EMERGING MARKETS

48% / 77% NON-BRICS PROSUMERS / BRICS* PROSUMERS

42% / 19% GLOBAL MILLENNIALS / GLOBAL BOOMERS

VS

“I would like to be able to pay for everything with my smartphone”

77/56 72/40 61/36 49/7 29/5 18/6

Image: Creative Commons/Vodafone [email protected] 66 *BRICS: Brazil, Russia, India, China, South Africa

RETHINKING THE WALLET

57% / 76% NON-BRICS PROSUMERS / BRICS PROSUMERS


VS

“Within the next few years, I expect to be able to make payments via wearable technologies (e.g., a microchip

embedded in a watch or pin)”

75/61 60/44 60/52 54/18 37/21 21/10

Image: Creative Commons/NEC Corp. of [email protected] 67


“I would like to be able to pay at cash registers through biometrics (e.g., facial recognition, fingerprint/eye scan)”

48/21 30/15 63/44 28/21 77/62 60/52


VS

A THREAT FROM TODAY’S TECH LEADERS?


“Google is the future of banking”

43/7 22/5 34/20 11/9 56/49 45/29


VS

Image: Google 68

69

CAVEAT: DIGITAL-ONLY COMES WITH A DOWNSIDE

“Digital-only banks lack human contact/personal advice”

62/62 54/64 51/32 59/76 65/76 56/60


Image: unsplash.com: Matthew Guay

70

THERE’S ALSO BROAD SUPPORT FOR A COMMON CURRENCY

Image: Creative Commons/Jimelovski Platano [email protected]

“The world would be better if everyone shared a single currency”

50/22 48/23 47/34 37/33 73/70 70/67


71

AND AROUND 1 IN 3 PROSUMERS & MILLENNIALS WOULD LIKE TO SEE MORE LOCAL CURRENCIES

Image: Berkshares

“I would like to buy more things with a community-based currency (a currency that can only be used at local

businesses)”

45/7 31/7 45/26 25/17 55/41 49/30


37%

26%

32%

26%

16%

MOST ARE NOT READY TO GIVE UP ON CASH

“In coming years, Bitcoin and/or other virtual currencies will completely replace cash”

72

44/8 26/11 28/12 13/11 62/43 46/33



34%

24%

30%

24%

15%

74

OFFER SERVICES THAT FIT MODERN LIFESTYLES

UK bank built specifically for smartphones offers real-time spending notifications, free instant cash transfers to other

Monzo users, budgeting help, 24/7 customer service, online community, and zero fees.

POSB bank in Singapore added a human touch to digital transactions by introducing a Video Teller Machine that lets customers interact face-to-

face with customer service reps 24/7.

75

HELP PEOPLE TAKE CONTROL OF THEIR FINANCES

Mastercard is testing a chatbot that helps customers monitor their spending and become more financially literate.

In Scandinavia, Bank of Aland’s biodegradable payment cards track not just what customers spend, but also the eco impact of

their purchases. Monthly reports detail the user’s carbon footprint, along with offers to offset it.

76

EMPOWER PEOPLE—EVEN THOSE WITH MINIMAL FUNDS

Stash is an investing app targeted to millennials (funding options include Clean & Green and Defending America). Only

$5 is required to open an account.

WiseBanyan offers a fee-free passive approach to investing that revolves around life goals such as “rainy day fund” and retirement. Customers can

start investing with as little as $1.

77

FIND YOUR NICHE AND FIGHT YOUR BATTLE

This digital investment platform exclusively for women takes into account women’s risk preferences, lifetime salary curve, career breaks, and gender wage gaps.

78

LET CUSTOMERS KNOW THEY ARE SCORING A GREAT DEAL

Jet.com tantalizes shoppers with prices that go down as they add more merchandise to their carts. Prices drop even further when customers pay with a debit card or opt out of free returns.

THANK YOU