Hello future.
Our goal is to provide deep cultural and societal insights, primarily for our esteemed clients, so as to guide both us and them in crafting impactful products, services, and experiences.
The information analyzed in this report stems from numerous studies conducted during 2022 and 2023. These studies include qualitative interviews with real individuals, coupled with traditional quantitative data and desktop research.
We hope you enjoy the read!
Warm regards,
The Art and Business Love Team
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Executive summary
This report navigates the intersection of economic, sociocultural and technological landscapes, weaving together key themes with an underpinning focus on ecology and sustainability:
Navigating Uncertainty with Sustainability: Amidst potential recession indicators, companies are stepping up as societal anchors, providing connection and purpose. They're not just economic entities but cultural and spiritual touchstones, evolving to meet the needs of a world in flux. In this context, sustainability becomes a guiding principle, shaping business practices and societal interactions.
Humanizing Technology in an Eco-conscious Era: The human element remains crucial as AI reshapes businesses. Diversity, equity, inclusion, and representation are non-negotiables, with ethical considerations at the forefront. Sustainability isn't just about compliance; it's about pioneering green innovations and practices, ensuring our technological advancements respect and protect our natural world.
Embracing Digital Transformation Mindfully: The rise of Web3 and the metaverse signals a new era, blending physical and digital realms. But inflated techno-optimism must be balanced with a broader, omni-channel approach and a user-centric focus at the heart of any innovation programmes. As we embrace this digital transformation, we must also consider its ecological footprint, striving for digital solutions that promote sustainability.
The 2023 trend report underscores the need for ethical, innovative, and inclusive strategies to navigate the uncertainties and opportunities of our rapidly evolving world, with a steadfast commitment to ecological sustainability at its core.
KEY TAKE AWAYS
KEY TAKE AWAYS
Here are some key takeaways that we have identified:
Human-centric Approach: Companies and brands are cultural architects, emphasizing the need for a human-centric approach in business.
AI and Technological Advancements: The success of AI and technological advancements hinges on human insights and ethical considerations.
Sustainability and Diversity: Mitigating environmental impact and promoting diversity require innovative practices that extend beyond compliance.
User-centric Design: Design professionals with a user-centric approach are crucial in bridging the gap between technology and users, and understanding complex problems and envision solutions.
Recession prepping
We are currently navigating an exceptional economic phase. Could it lead to a recession, a slowdown, or perhaps neither?
In the US, we have an unusual juxtaposition: the unemployment rate is a meager 3.4% - a 50-year low - while interest rates are higher than they've been in years.
There are indicators of a looming recession, such as a hiring freezes and massive layoffs at several multinational companies, a rise in "recession brunettes" (a term describing people refraining from expensive hair dye due to cost concerns), and the resurgence of packed lunches, which are crowding office refrigerators. All these signs suggest that people are bracing for a recession, anticipating it to be imminent if not already here.
However, despite these preparations by individuals and businesses for potentially challenging times, there is currently no recession warning in either the stock market trends or corporate reports.
Recession prepping opportunities:
Be brave - innovate like there is no recession. Capitalize on the fact that the competition is standing still. Leverage the stagnation of your competition. Develop new products for untapped markets, and recruit fresh competencies - the jobs of tomorrow won't mirror those of today.
Capitalize on the supply. Look for new collaboration and competence. This is an excellent time to engage new talent and agencies; smaller agencies are usually open to new ways of thinking. A decreased demand for services and products opens up the marketplace. The Swedish market, as an example, with its currently weaker currency, high academic level, and tech edge, is a good place to shop around.
A purposeful life
When so much in life is in flux, we more than ever need to feel connected to something.
In many ways the world today is a chaotic place, as one crisis after another seems to unfold. It's as if we're always bracing ourselves for the next big disaster, whether a pandemic, a war, an extreme weather event, or political turmoil.
This can leave us feeling overwhelmed and searching for a sense of meaning and purpose.
As a result, the need and desire to belong, to have a purpose, and to feel connected becomes a strong driving force influencing our decisions and relationships.
Thus, it is worthwhile to appreciate the profound role of companies and brands in this context. These entities are not just sources of livelihood, but also shape our culture and purpose, serving as guiding beacons in our lives. In many ways, they are taking on roles traditionally held by governmental and spiritual institutions.
A purposeful life – opportunities::
Act with empathy. Consumers, employees, and stakeholders want to feel connected with brands, but before you talk, you need to listen and learn: what matters to them, what language they speak?
Design your culture! Define and design organizational culture of connection based on a clear purpose and visible values - 94% of employees are more productive when they feel connected to their colleagues.
Manifest your values. Successful companies realize that their company values attract talent and good business relations. Establish values early and communicate them often—to clients, consumers and the greater community.
AI Dreams
AI* has been hyped as the next big thing for a while now. We've seen it in movies and in real life, and we know it has its good and bad sides.
As we race into the future, it's clear that the companies lacing up to tackle new tech are the ones setting the pace. They're ready to sprint ahead, serving customers, employees, and shareholders with the strategic pacing and endurance of a champion marathoner. They know the course won’t be without hurdles. Stumbles? Sure. But every misstep gives way to a recalibrating stride on the road to growth.
The victors in the AI arena understand this isn't a one-lap race. Integrating new technology is a relay, passing the baton from professional experience to cutting-edge innovation.
Yes, AI is a game-changer, redefining services. But it doesn't sprint solo. It needs the insight, the instinct, the human edge to keep pushing forward. So, let's lace up and make those connections. It’s not just about reaching the finish line—it's about breaking the tape.
* In this report we bundle the technologies of machine learning, generative AI, deep learning and natural language processing.
Ai dreams opportunities:
Dare to fail. AI is a bucket full of opportunities, and has a mesmerising effect, triggering our imagination — however, not all output is not necessarily productive. By setting up iterative processes, a continuous innovation approach you are set up to fail – To then succeed.
Embrace the human experience. AI can enable highly personalized interactions with customers, leveraging data to understand individual preferences and behaviors – but all innovation is derived from humans and the human culture itself. Deep human competence in every industry is needed in order to generate an impact, and this competence should be at the helm of every AI initiative.
Get physical! AI is a fantastic tool that will make us more productive, but a scarcity of physical products, experiences and people-to-people interaction will be a counterbalance to the screen-based mesmerising experiences AI will bring.
DEI – Not just loud voices
Brands with diverse workforces, products, and services are twice as likely to meet or exceed their financial goals. And people want it.
Diversity, equity, inclusion (DEI), and representation (ethnicity, neurodiversity, accessibility, non-binary gender options, etc.) in both public and private organizations are ongoing endeavors.
According to the World Economic Forum's Future of Jobs 2023 Report, over 50% of young workers would reject a job at a company without diverse leadership.
Younger generations also prioritize diversity in the brands they support. Brands that genuinely prioritize inclusivity as a core mission, rather than using it as a mere PR tactic will be the ones to resonate with and inspire the next generation.
DEI – Not just loud voices– opportunities:
Walk the talk! Embed Diversity, Equity, and Inclusion (DEI) into your brand's ethos, and ensure this commitment is communicated.
Innovate faster and better. Recognize diversity as the catalyst for innovation. Success is bred from a variety of perspectives, not in isolation.
Evaluate your diversity. Conduct an assessment to understand your current diversity standing and the expectations of your stakeholders - employees, consumers, and others, and devise strategies to meet these expectations. Set diversity goals and consistently track progress through measurable metrics.
Foster an inclusive culture. Create an environment that encourages open conversation and offers training, workshops, and other forums to enhance understanding and respect for diversity.
Engage with the community. Support diversity-focused events and programs.
Dismiss the Noise. Don't be swayed by the myth that embracing diversity is bad for business. Evidence from brands like Budweiser and Nike shows that a strong stand on DEI issues can attract a more dedicated consumer base, regardless of occasional controversies.
Sustainable Reality
The undeniable impact of human activities on Earth is now plainly visible to us.
Our lifestyle, consumption patterns, and lack of eco-conscious decisions have led to dire consequences that challenge the survival of our planet. However, we are no longer mere spectators; the necessities of our time demand an assertive, proactive approach to mitigate these effects.
The introduction of more stringent legislation on sustainability is indeed a positive stride. This sets a necessary boundary, redefining the framework within which businesses operate to align with the higher goal of environmental conservation. But it is not enough to merely comply with these rules.
The call of the hour extends beyond mere compliance. Companies need to pioneer and embrace innovative practices and technologies to survive in this environmentally-strained landscape. By creating and adapting to greener business models, they can help build a sustainable future and thrive.
This is not just about regulatory adherence; it's about reimagining a new corporate world committed to preserving the earth we call home.
Sustainable Reality – opportunities:
Empathize with the Earth. Just as Design Thinking emphasizes empathy for the user, businesses should strive to understand and empathize with the environment's needs. This includes learning about the impacts of their operations and making a concerted effort to reduce their environmental footprint. Understanding the cause-effect relationship between business practices and ecological harm can lead to creative and effective solutions.
Ideate for sustainable solutions. Harness collective creativity and encourage brainstorming sessions focused on generating sustainable solutions. Include diverse perspectives – from engineers to marketers, customers to community leaders – to get a full spectrum of ideas. Foster an environment where radical thinking is welcomed and nurtured.
Prototype and test green Innovations. Don't be afraid to experiment with new ideas. Develop small-scale models or simulations of green initiatives and test their viability and impact. Then, based on real-world feedback, refine these models or pivot to new ones. Remember, the objective is to find innovative ways to reduce the environmental footprint, and sometimes, the best lessons come from failures.
SoMe in moderation
In today’s life, an increasing number of people feel overwhelmed by constant engagement with social media and screens.
In the modern world, more and more individuals are overwhelmed by the constant interaction with social media and digital screens. This feeling is further amplified by a growing apprehension towards the influence of algorithms and a longing for genuine relationships. At the same time, an escalating occurrence of 'screen anxiety', stress brought on by excessive screen use, impacts both physical and mental wellbeing.
A rising number of people are resorting to thoughtful digital consumption methods such as digital detox, minimizing screen usage, and discerning their engagement on social media platforms.
There is also an emerging demand for enhanced control and clarity over individuals' digital lives, encompassing concerns about privacy and data security. All these trends indicate a craving for a healthier and more balanced association with technology.
SoMe in moderation – opportunities:
Digital is dead. There are no digital media anymore; our life on and off screens are omnipresent. Look for omnichannel strategies, become independent, and decrease the risks of consumers abandoning platforms overnight.
Contribute with value People start to see a lot of marketing initiatives, especially algorithm-driven marketing, as “time thieves”. Successful initiatives bring value to the consumer and not just fluff and offers.
Collaborate! Empathize with customers for personalized recommendations, not just algorithms.
Understand the authentic culture. Big data can provide a lot, but it can’t give details on why people act the way they do, especially if they unsubscribe from your platforms. Ethnographic studies are the key to understanding real drivers outside of the digital domain.
Omni vs Meta
We are witnessing a transformative shift in the media landscape, driven by advancements in Web3 and the emergence of the metaverse.
This transition leads to a more seamless integration of the physical and digital worlds as the boundaries blur between these channels. At the forefront of this shift are virtual social platforms, often called metaverses, which are growing significantly. Despite the anticipation surrounding this revolution seemingly losing momentum, it is still vibrant and thriving. Companies that have strategically embraced this digital shift are particularly flourishing.
However, it's crucial to note that this technology-driven revolution isn't just an end in itself. It needs to be integrated into a broader, omnichannel approach to avoid becoming an expensive, unsustainable endeavor.
This trend isn't just transforming interpersonal interactions and reshaping relationships between brands and their customers. In the process, it paves the way for new consumer needs and behaviors, creates fresh opportunities for developing digital assets, fosters new communities, and launches innovative products and channels.
Omni vs. Meta – opportunities:
Embrace the blend of realities. As the lines blur between the physical and digital worlds, it is crucial to design solutions that leverage both environments. This requires empathizing with user experiences across multiple channels and developing solutions that enhance user interactions in the intertwined digital-physical landscape.
Incorporate metaverse platforms in strategy. With the increasing significance of virtual social media or metaverses, consider them an integral part of your design strategy. Prototype and test your products or services within these platforms to understand their potential and challenges. Adapt your strategy based on the insights you gain, ensuring they effectively meet the needs of your metaverse audience.
Prioritize Omni-Channel Approach. Recognize that new technologies, while promising, should not be isolated solutions. Instead, they should form part of an omnichannel approach that offers a seamless and consistent user experience. When ideating and prototyping solutions, consider how they fit into your overall strategy and contribute to a holistic user experience across all channels.
Bonus content! Weak signals
Weak signals hint at change, leading us to influential mega trends that shape our world, influencing decisions and behaviors. Here are some weak signals we at LA+B will keep an eye on (some of this we are sure we will see in next year’s report).
Real vs. Fake. How will the increasingly complex puzzle of determining the truth in the age of AI affect how we live our lives?
Inflated Techno-Optimism. Harnessing the potential of technological advancements requires a careful balance between innovation and avoiding complacency, acknowledging the significance of policy changes and behavioral shifts alongside technology for sustainable progress.
Hydrogen Revolution 1.0. We see the anticipated field of hydrogen taking off for real; improvements in hydrogen production, storage, and transportation methods are making its usage more feasible and cost-effective.
Re-engineering health. Biotech breakthroughs and AI are revolutionizing our control over aging, leading to personalized and preventive care. This technology-led shift promises a healthier, extended lifespan, signifying a revolution in aging and health.
Health and wellness. Sleep sync, gut-brain connection, incidental exercise, facial yoga, digital detox, and mushroom stacking - all phenomena to watch.
Digital Immune System and User Experience. Organizations at the forefront will explore the power of a digital immune system (DIS) to prioritize seamless customer experiences.
Total Experience (TX). As businesses seek innovative approaches for seamless journeys, TX will continue to gain significant popularity in today's competitive landscape.
Human-Centric Infrastructure. By reimagining infrastructure through a human-centric lens, progressive cities will aim to create vibrant, sustainable, and inclusive spaces for people to thrive.
Embedded Payments. Will drive growth, enhance customer experiences, and offer seamless transactions, meeting the increasing market demand for efficient payment solutions.
Data Highway Passes. Digital dependence in key sectors requires prioritized data access for uninterrupted services. This need outweighs everyday and leisure internet use.
True North. The Arctic's emerging trade routes and urbanization potential, boosted by its cold climate, set the stage for sustainable industrial growth. This positions the Northern and Arctic hemisphere as a future linchpin of global progress.
About the authors
Dr. Anna Hasselström - Marketing Consultant and Anthropologist
Anna Hasselström is an accomplished marketing consultant with expertise in anthropology. With extensive experience in complex innovation projects and brand-building, Anna brings a unique perspective to her work.
With a PhD in anthropology, Anna integrates her profound knowledge of human behavior and culture into her marketing strategies. She creates turnkey platforms, strategic frameworks, and engaging outputs that prioritize the needs of the target audience.
Jonas Lundin - Strategic Brand and Design Consultant
As the head of LA+B, Jonas has worked with clients globally, specializing in design, innovation, and communication strategy.
Jonas excels in semiotics, sustainability and human-centric innovation, combining marketing expertise with process engineering skills to drive effective implementation and change management.
As a lecturer of Design Thinking and Semiotics, he also shares his insights with future industry professionals. Jonas is a visionary strategist clients turn to for elevating their brands and achieving sustainable success through creative and analytical thinking.
Thank you for reading our 2023 report. Based on the insights from the above report, we have also created specialized reports on Innovation, Packaging, Product Design, Communications, and brand activations.
If you're interested in learning more, please feel free to contact us below. We would be happy to provide further information and discuss how these reports, derived from the comprehensive overview, can benefit your business.