6 trends changing the nature of design

We live in a world radically different than the one of just ten years ago. People think, talk, connect and share in ways never before experienced. Today’s consumers are evolving at a frenetic pace, even faster than technology. The creation of brands and products is starting to follow logics and processes that are far away from what traditionally structured corporations are used to. A paradigm shift in our thinking about the future is needed as well as a fundamental change in the way we engage consumers and drive innovation. In this new social and business environment more companies look to their design functions and partners to spur innovation to meet the changing reality. In the past several years I have identified specific trends affecting our society and our business. More than ever these trends are having direct implications on the design community and increasingly play a role in driving innovation and building brands.

01. Billions more web users

The rapid growth in internet accessibility is creating an augmented awareness, leading to smarter, more connected, savvy and demanding consumers. Around 40 percent of the world population has an internet connection today, more than 3 billion people. As more gain access to information from the palm of their hand, they will become more discriminating in their purchasing decisions. They may walk into a store to browse, but end up purchasing online because of price, convenience or some other reason. In today’s global market, this will lead to more fierce competition beyond direct competitors whose products share the same shelf space.

02. An increasingly globalised market

In the digital world there is no such thing as shelf space. All media and content, branded or otherwise, is now social and shareable, thus creating infinite possibilities for consumers. At PepsiCo, our products – whether a new soft drink like the recently launched Caleb’s Kola or a fashion capsule collection inspired by the Pepsi brand – compete with other products and brands without the boundary of space or time. There is an expanded landscape in which we must compete: a new and broader universe where brands now fight for mindshare, attention and sales irrespective of the simple confines of shelf space.

03. Social media-savvy consumers

Today’s digitally savvy consumers are truly self-aware. They filter information into micro-niche interests and then customize, personalize and amplify the content across multiple ‘me’ channels with people who share their lifestyles and values. They want to engage brands in a two-way dialogue. Brands must be part of this online conversation or risk being ignored or becoming irrelevant. The challenge for designers will be to create amazing real world experiences that will still attract consumers to their stores and work with emerging e-commerce platforms and social media channels to create engaging online experiences and digital influence. Regardless of the market, brand or the target consumer, authentic, honest, and transparent engagement will be vital in the coming years.

04. Digitally-enabled entrepreneurship

We are now witnessing the growth of digitally-enabled entrepreneurship (e.g. Kickstarter.com) where anyone can find investors for any idea. This, coupled with the advent of digitally-enabled manufacturing, (e.g. 3D printing) will empower people to obtain funding online and produce products from their home to create new ventures, some of which will resonate and become big. This will level the competitive landscape as marquee brands will be forced to compete with a sea of small entrepreneurs. (Just look at how drones and robotics are already impacting everything from filmmaking to farming to manufacturing. It’s quite astonishing.)

05. Four generations colliding

There are now four generations living today who each possess different values and unique consumer demands. This is creating new opportunities for how we can segment target audiences, but we can no longer rely on traditional techniques, like age, demographics or location, to segment our consumer populations. There is no black and white. We live in a society of a thousand shades of grey. We must keep listening to our consumers, but we can’t believe they always know what they want. We need to read between the lines, interpret and then decide with confidence and leadership: that’s the foundation of innovation. It will be more challenging to develop impactful and innovative design concepts under blurred lines and overlapping trends that change rapidly and affect generations differently. Effective design in this world will be the art of embracing ambiguity and complexity.

06. The Internet of Things

And finally, the age of the Internet of Things is fast approaching: a hyper-connected world where smart technology touches and impacts everything. Refrigerators, for example, will soon know when you are low on milk and eggs and automatically re-order them.

This may have the built-in advantage of automated brand loyalty, at least for a while. But it will also force brands to engage back with consumers in new ways. For instance, stores in the future could become more like showrooms for unique consumer experiences while the actual purchase occurs digitally. Brands will still need to be relevant with consumers off-line first regardless of technological advancements. For example, an engaging brand experience at a small music festival that ties a brand to sustainability or health might lead to more impact and loyalty with consumers than a TV commercial could in one market. We need to start thinking now about this future that has already arrived and the design innovations that will be required to meet new consumer demands and ever-changing trends. That vision and these insights for example are what have been driving us in the design of the recently launched Pepsi Spire, a smart and hyper-connected beverage dispensing system that allow consumers to customize their drink with more than a thousand different potential variations.

Changing structure, skill set and culture

As these changes begin to take root, there are three levels of complexity in which designers must navigate. Our efforts must be consistent and authentic from ideation to execution across platforms and touch points, geographies, and functions. Only then will consumers perceive our solutions – products, brands or services – as relevant, impactful and again, authentic. This will require corporations to embrace a structure and culture of true collaboration and cross-pollination of ideas, especially the original, creative and inspired ones. Through a mix of functionality, convenience, fun and pleasure, I believe that design can lead the way in creating a more engaging and better future for us all – a future of design that is culturally relevant, memorable, and perhaps even life changing.