From the unpredicted explosion in consumption to the rise of conscientious consumption, from 15 critical changes in values to Mindful Mondays, there have been a series of market mutations that now require a significant evolution of the tissue paper sector.
When people have no idea what tomorrow will bring they can become fatalistic. Among the factors that have contributed most to Covid-19 anxiety is that no-one knows exactly when the pandemic will end.
The future is, by nature, hypothetical, indefinite, inscrutable. Our experience of prolonged uncertainty has resulted in a widespread malaise. Groups such as adolescents or people living alone, and those working in sectors such as live entertainment or catering, have experienced the worst psychological impacts of Covid.
But people – with their biologically inbuilt adaptability – have begun to incorporate this situation in their daily lives. So out of fear and anxiety, new survival trends are emerging that take on board uncertainty, and in some way turn it into a benefit.
The future can now be seen positively, even with full awareness of how uncertain it is. Strategies are being implemented that tend on the one hand towards detachment, on the other towards control. We detach ourselves from our fears, while trying to control unpredictability by wrapping it in “soft” scenarios which are easy to manage. Reality, however, is more complex than anything we might conceptualize; the boundaries between feelings, ideas and opinions are not very clear and defined.
Among the traces that can be found almost everywhere in the world:
Insights:
Think of Tissue paper products that help people rediscover their collective rituals in a lighthearted way.
Hall & Partners recently released the new results of its The Value Shift research. Based on 20,000 questionnaires submitted in 10 countries around the world, the study records a change in 15 basic values that have manifested themselves as new consumption needs. It also describes a new, even more global, even more sensitive awareness.
Among the top five values that mark the change, it should be noted that 59% of the interviewees agreed with the statement: “I think it is important for people to be more open, empathetic and real, showing that they understand how people feel,” indicating a personal sensitivity they have now recovered and integrated in their subjective identity. Confirming this interpretation, 65% of the respondents agree that: “I respect people who contribute something – these are my heroes, not just celebrities who are famous for being famous”; the picture is one of a widespread desire for authenticity.
Insights:
In the face of these trends, products, processes, services, communication, internal policies and relations with consumers will have to return to being more “raw”, less bureaucratic, omnichannel, increasingly personalized, and in real time.
Let’s explore just for a moment the dynamics of an off-topic field such as eating habits. The periodic reports from the EngageMinds HUB of the Università Cattolica del Sacro Cuore in Milan focus the trend towards purchasing “free-from” or “enriched” food and specify: “When profiling the consumer for psychological variables such as anxiety or depression, or even a high perception of the risk of contracting Covid-19, the percentage of Italians who show a strong preference for free-from and enriched products rises very significantly.” From a psychological point of view, everything that can be “eliminated” is regarded as superfluous and often harmful; to be regarded as enriching, on the other hand, a supplement needs to help in particular situations. This focus on the Italian situation would seem to go against the trend for the need for authenticity (which is expressed in relationships but obviously also reflected in the type of purchases made); we would expect growth in farm-to-table and organic foods. However, these data are cluster-specific and the phenomenon simply testifies to the extent to which market niches can represent a situation which diverges from global trends. Attention to the characteristics of one’s targets is fundamental, especially if we consider the tension and polarization of our current situation.
Insights:
Going back to the Hall & Partners study, analyzing the difference between consumers in the 18-34 age group and the over 45s, we can see different basic attitudes. Young people are drawn towards a small-community dimension and tend to consider brands as real subjects they can interact with and demand consistency from. The older group are more prone to introspection and are focused on what concerns themselves. Community is understood as a country, a region, and therefore a more “enlarged” setting compared to what younger consumers favor. All this should spur marketing and communication to reflect deeply and create multi-target strategies which are well-differentiated in every respect.
A US insurance and finance company, Mutual of Omaha, has started an initiative linked to Mindful Mondays, offering employees mindful relaxation activities to start the week so they can reduce and manage stress. It is an almost universally accepted fact that alternative therapies – in particular, disciplines that steer toward awareness and deep relaxation – can be a barrier against stress and therefore contribute both to productivity (in the case of workers) and to health (for everyone). While in some countries such as India, health policies reduce premiums if policyholders practise Yoga, the assumed value of well-being for individual health and professional performance is gaining ground globally, and companies are starting to undertake ad hoc initiatives. All this indicates clearly that the inner dimension is an important, widespread value to be embraced.
Insights:
For companies both in B2B and B2C, it will become increasingly important to take initiatives for the well-being of fellow workers, to choose the services of like-minded suppliers, to support the need for the well-being of their customers and of society in general. The Monday Campaigns path is becoming increasingly viable and boasts major players among its adherents.
This is the detail, reinterpreted and adapted, of the critical mutations identified by Hall & Partners:
Insights:
Spending time and energy in analyzing the 15 assets identified and translating them into corporate change is one of the most important investments a manager can make. We’re on the crest of the wave, so it’s the ideal time.
Let’s start from the end. Imagine a person who is using any Tissue paper product and try to define, using a bottom-up logic, an inverted funnel of changes necessary for the Tissue industry.
The consumer will want to be sure that with purchase, use and disposal, they will not have contributed to pollution, waste and exploitation. A sustainable packaging, traceable and full of clear and verifiable information is therefore needed to embrace the new deal of consumption by forging an alliance with people. Upstream of all this, there must therefore be an enlightened, bold company policy that demands that suppliers and distribution follow strict codes of conduct, in line with the values of environmental sustainability and social equity.
The user experience, hygiene, natural materials, processes and additives will be increasingly under scrutiny. All this is achieved by working on logistics, research, production and distribution. And the above is achieved by communicating it thoroughly and sincerely, overseeing all the touchpoints.
These are the elements of strategic importance to align with the new values in restructuring the Tissue production chain:
Here we embark on potentially slippery terrain that must nevertheless be tackled:
In a market vulnerable to sudden changes in the landscape, there are elements of business management that struggle to meet the need for flexibility; one of these is defining the annual budget. The result of complex and painstaking work, the budget largely determines the corporate climate throughout the operating season and appears to be inflexible – set in stone.
Yet, with no small amount of courage, a business management practice has been asserting itself for several years which… does not take budget into consideration! It is called Beyond Budgeting.
It is an approach that tends to make the phases of business management more fluid and dynamic, and moves away from the idea that the definition of budgets is the irremovable cornerstone of a company’s activity. Beyond Budgeting decentralizes the process by making organizations more autonomous, intelligent, fast and accountable. This view is supported by Douglas McGregor’s so-called “Theory Y” on the motivations for people’s active participation in work teams.
Beyond Budgeting is based on six leadership principles and six process management principles:
Leadership:
Processes: