NIA DEWAN'S
Q2 2024
TRENDS REPORT
Bringing a unique perspective and deep empathy to work, with a passion for understanding user behavior and crafting impactful strategies. Naturally connects with clients and colleagues from all walks of life. Committed to continuous growth, expanding skills in data analysis, storytelling, and strategic insights. Thrives in fast-paced, ambiguous environments, readily embracing new challenges and innovation.
Viral Vibes: Latest Trends for Brands
"GEN Z INTERN EDIT"
"MATCH MY FREAK?"
"GIMME ME 14"
@ThePoeMuseum posted a TikTok intended to showcase its exhibits, but it took a humorous twist. Instead of a traditional tour, the video features a supercut of a museum worker's out-of-context breaths and brief, silly remarks in the opening seconds of each clip. Embracing Gen Z's "unserious" humour, the editors included only B-roll cuts that highlight this playful approach, even in the workplace. The video quickly went viral, garnering over 4 million views and 1.2 million likes within the first 24 hours.
In June, the 'match my freak' trend went viral on TikTok. To participate, content creators ask their followers, "Is somebody gonna match my freak?" They then describe quirky activities they typically do alone but would prefer to share with someone. The background music for these viral videos is Tinashe’s song 'Nasty,' featuring the lyrics, "Is somebody gonna match my freak." This trend encourages creative conversation starters between users and potential companions who share similar interests.
@60somethinglife uploaded a TikTok of her husband trying a new sweet potato pancake recipe, which quickly garnered over 10 million views. His enthusiastic response made it hilariously relatable. When asked if he likes them, he replies, "Spectacular. Give me 14 of them right now." TikTok users loved his reaction and have since used the sound to showcase things they've tried and loved, such as tattoos, make-up products, and romance books.
Advice:
Use this trending sound and lip sync to the husband's words. Use overlay text to refer to whatever you want '14 more of' – this is a key opportunity to highlight your business's hero products
Advice:
Film a short clip of yourself doing something like dancing, staring into the camera, or looking out a window. Add the text: “Is somebody gonna match my freak? (insert freak)”. Businesses can use this trend to highlight a product or depict a relatable workplace situation. Saei's example is a great illustration.
Advice:
Create your own workplace tour video with a humorous twist making sure to caption it "letting our Gen-Z intern edit" (Even if you don't have a Gen-Z intern!). Capture out-of-context moments and playful remarks, focusing on a lighthearted and entertaining style, creating a B-roll supercut.
Q2 UK Economy: Cautious Optimism
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Ready to Splurge,
But Hesitant
Stable Inflation, Steady Confidence
Households expected to benefit from higher incomes, tax cuts, and falling interest rates, boosting discretionary spending on non-essential items. Creating opportunities for brands in fashion, electronics, and lifestyle sectors (Sources: ONS, Bank of England).
Consumer spending projected to grow by 0.8% in 2024 and 1.3% in 2025, indicating a rebound in confidence. However, early Q2 2024 retail sales dropped, showing improved earnings and confidence haven't fully increased spending. Consumers feel more financially secure but remain cautious (Source: House of Commons Library, ONS).
With inflation stabilising between 2% and 2.5%, consumer confidence is expected to rise, maintaining purchasing power and encouraging spending (Source: KPMG Economic Report).
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Services inflation remains above 5%, prompting service-based brands to focus on value-added offerings and loyalty programs to justify higher prices and retain customers. Businesses must strategically enhance their offerings to balance stable inflation with rising service costs and keep consumers loyal (Source: Bank of England Monetary Policy Report).
Wages Climb,
Jobs Decline
Wages expected to grow by 4.5% by the end of 2024 and decrease to 3% by 2025, enhancing purchasing power and increasing disposable income, likely boosting spending on essential and non-essential goods (Source: S&P Global).
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Unemployment projected to rise to 5% by the end of 2024, leading to cautious spending, especially among affected households. This mix of wage growth and rising unemployment reflects a diverse economic environment with varying consumer optimism. Brands should consider this diversity in consumer sentiment and tailor their marketing strategies accordingly (Source: CBRE Report).
Optimism Amid Uncertainty
The GfK Consumer Confidence Index rose to -14 in June 2024, the highest since November 2021, driven by a better assessment of the broader economy and easing concerns about personal finances. Consumers display cautious optimism, feeling more positive about their financial situation but wary of potential economic pitfalls.
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The upcoming UK General Election in July 2024 adds uncertainty, but similar economic policies between major parties are expected to maintain consumer and business confidence (Source: Bloomberg).
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Recommendations
SLOW AND STEADY
WINS THE RACE
Don't assume rising incomes mean higher spending. Consumers remain cautious. Create campaigns that balance aspirational messages with value propositions to attract both spenders and savers.
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Use TikTok’s Business Centre Audience Targeting tool to segment your audience based on spending behaviours and tailor your messaging to both high spenders and budget-conscious consumers. This ensures your campaigns resonate with a broader audience, maximizing engagement and ROI.
PRIORITISING LOYALTY
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With inflation stabilising, emphasise the value and quality of your offerings rather than pushing for high volumes. Highlight durability, long-term benefits, and exceptional customer service to build consumer trust and loyalty.
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Leverage TikTok’s Branded Content service to create high-quality videos showcasing your product's value. Utilise TikTok’s Creative Center to discover what's trending. For creative guidance, join the Creative Beta Club and explore TikTok Symphony to efficiently script, produce, and optimise video content using generative AI solutions.
STAY AGILE, STAY AHEAD
The upcoming election adds uncertainty. Be prepared to pivot your strategies based on potential political and economic shifts. Utilise real-time data and analytics to adapt quickly, ensuring your campaigns remain relevant and effective in a changing landscape.​
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Implement TikTok’s Real-Time Performance Dashboard to monitor your campaign’s performance continuously. This tool enables you to make swift adjustments in response to political and economic changes, keeping your marketing strategies agile and responsive.
#BlushingSuccess: Continued Success of AR Filters
In April, Patrick, the founder of Patrick Ta Beauty, introduced an AR filter on TikTok to help customers choose blushes from home. This filter quickly went viral, trending on the platform and garnering over 10 million in Earned Media Value through views, likes, comments, and saves across 42 user-generated videos.
One contributing factor to this success was Patrick's mini masterclass, where he used the new AR filter to help users find their perfect makeup shade while teaching his viral blush technique. Personalised experiences like these are popular among consumers because they offer tailored solutions that enhance user experience and satisfaction.
By providing interactive and customised content, brands can create a more immersive and enjoyable experience, fostering a deeper connection with their audience and increasing brand loyalty.
TAKEAWAY FOR MARKETERS:
Brands like Fenty, Rare Beauty, and Samsung have previously utilised similar AR experiences, this strategy remains popular and effective across multiple industries. With the continued adoption and advancement of AI and AR, there is significant potential for future development and integration. Consumers increasingly seek personalised experiences, making improved customer interactions crucial for higher satisfaction and retention. Personalising user interactions on TikTok enhances brand likability and customer loyalty, a key theme for 2024.
#Unexpected Icons: Marc Jacobs' Viral Journey with TikTok Stars
Over the past few months, Marc Jacobs has embraced one of TikTok’s key themes for Success in 2024 “Creative Bravery”. Successfully leaning into this generation's unique sense of humour, the brand has found a winning formula.
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Collaborating with creators like "Chick-fil-A Sauce Girl," Gina Lynn, who went viral for her animated reactions to customers not ordering the restaurant's famed sauce. Or, Raymonte, who is known for his enthusiastic compliments to strangers about their hairstyles or outfits. These moments, which became popular TikTok memes, seemed unlikely collaborations for a luxury brand. Marc Jacobs leveraged these creators' unique personalities and humour, integrating the brand's messaging and products seamlessly. This approach has garnered positive reception and engagement.
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Unlike many brands, Marc Jacobs distinguishes itself by sharing influencer-created videos directly on its own account, which helps boost views while maintaining the influencers' authenticity. These videos are crafted in the influencers' usual style, incorporating their unique "schtick," thereby resonating with audiences who already appreciate their content.
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This method resonates with the younger generation, who are fatigued by traditional advertisements and are becoming hyper-aware of inauthentic brand led influencers, they crave authenticity above all. By embracing unexpected influencers and prioritising genuine, less-produced content, Marc Jacobs has built trust and relatability with its audience. This innovative approach highlights the brand's understanding that to connect with Gen-Z, they must include and reflect their values and humour, rather than adhering to conventional advertising methods.
TAKEAWAY FOR MARKETERS
Businesses can adopt this successful strategy by embracing creative bravery and authenticity. Partner with influencers whose humor resonates with your audience or, for smaller businesses, capitalise on the latest memes and trends. Sharing genuine, less-produced content directly on your brand's account can enhance engagement and maintain authenticity. Reflecting your audience's values and humour, while moving away from traditional advertising, helps build trust, relatability, and strong connections, regardless of your business size or industry.
RETAIL INDSUTRY TRENDS
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ALGORITHMIC RETAIL
AI and machine learning are transforming retail by optimising inventory management and demand forecasting, allowing retailers to predict consumer preferences accurately. Currently, 22% of retailers use AI, with 17% planning to invest this year (source: Mintel). AI-driven individualisation delivers tailored messages, product recommendations, and dynamic pricing. Hyper-personalised shopping experiences increase item additions by 110% and spending by 40% (source: KPMG). Retailers are 14 times more likely to sell to existing customers (source: Bearing.com) Immersive technologies like AR and VR let customers virtually try products, enhancing satisfaction.
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OPERATIONALISING SUSTAINABILITY
Retailers are adopting proactive sustainability strategies, focusing on reducing waste and operating responsibly. As 55% of UK consumers say living sustainably is important for society and they try to make sustainable choices when possible (source: Deloitte’s Retail Trends), this trend is increasingly relevant. The circular economy is gaining traction, with increased consumer interest in secondhand and eco-friendly products. The secondhand market is expected to more than double by 2026, reaching a global revenue of $339 billion (source: McKinsey).
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MasterCard's 2024 Industry Report suggests shifting loyalty programs from transactional to experiential, focusing on utility and personalised experiences. The average U.S. consumer is in 17 loyalty programs but actively uses fewer than half, indicating an opportunity to enhance engagement (source: MasterCard). Paid loyalty programs and gamification are key trends, offering new revenue streams and deeper customer engagement.
GOOGLE I/O 2024 OVERVIEW
Google I/O is an annual developer conference held by Google, where the company showcases its latest innovations, updates, and technological advancements. The event highlights new products, software updates, and features across Google's ecosystem, providing insights into the company's future direction and its impact on various industries.
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Find below the most relevant features from Google I/O that directly compete with TikTok. These features were selected for their potential to significantly influence the landscape of short-form video content creation and user engagement, areas where TikTok excels.
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Licensed Generative Media Models (Imagen 3 and Veo)
AlGoogle introduced Imagen 3 for image generation and Veo for video generation, enhancing YouTube Shorts with highly detailed and photorealistic images, and high-quality 1080p videos respectively.
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Implication for TikTok: TikTok has its own set of creative tools, including AR effects and filters, but it lacks the advanced generative capabilities presented by Google. Integrating similar high-quality generative tools can allow TikTok to compete directly with YouTube Shorts in terms of content quality. By leveraging AI for creating stunning visuals and high-definition videos, TikTok can attract creators who are looking for cutting-edge creative capabilities.
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Eco-Friendly AI-Powered Content Creation Tools (MusicFX and VideoFX)
Google's MusicFX and VideoFX tools provide advanced music mixing and video creation capabilities, likely to be integrated into YouTube Shorts, offering sophisticated yet user-friendly editing options.
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Implication for TikTok: TikTok's existing music and video editing tools are popular but could benefit from further enhancement to keep pace with Google's offerings. The introduction of advanced AI features for music mixing and storyboard-based video creation can simplify the creative process while offering high levels of customisation.
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YouTube Shorts Monetisation and Features
YouTube Shorts offers monetisation, requiring 1,000 subscribers and 10 million Shorts views over 90 days. Features like Picture-in-Picture mode and Smart Downloads enhance the user experience.
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Implication for TikTok: While TikTok has various monetization options, expanding these and improving features like offline viewing and multitasking can better support creators. Emphasising the creator community and providing diverse monetization options can foster loyalty and long-term engagement.