As 2023 draws to a close, we take a peep at some emerging trends that will impact how consumers and businesses will change in the next 12 months and beyond.
- AI revolutionizing travel: Adoption of AI tools by tourism and hospitality companies is changing how businesses operate and how consumers plan travel experiences. According to Statista, the share of AI-influenced revenue in the travel industry is expected to rise to 32% in 2024. A travel search aggregator site launched a new search discovery and inspiration tool, powered by GenAI in October. Another travel site launched an enhanced version of its AI travel assistant to create a more personal, intuitive and hassle-free travel planning experience. The Singapore Tourism Board (STB) partnered with a global tech company to offer AR guided tours powered by AI.
- Southeast Asia and India are next luxury beauty drivers: According to Euromonitor International, the global beauty and personal care market is on track to grow to US$ $547 billion in 2027. The APAC region will be account for over half (67%) of the growth value. Based on a whitepaper by global consultancy and one of the largest distributors of luxury beauty in Asia Pacific, Southeast Asia and India are poised to witness the next “gold rush” in luxury beauty with a market potential reach of US$ 7.6 billion by 2026, almost tripling in size within 10 years.
- Neuroglow will be the next chapter in wellness and beauty: Mental well-being and physical appearance are now interconnected and consumers are prioritising wellness to feel better in body and mind. The mind-body connection will be critical in elevating beauty’s role in overall wellbeing. Practices like psychodermatology and neurocosmetics will gain traction with consumers around the world as a way of promoting skin health and overall wellness. In China, the preference for healthy and natural glow in colour cosmetics products etc, is an example that reflects consumers’ concern for holistic skin health and beauty from within.
- ‘Phygital’ experience is taking center stage: Technologies like AR, VR and AI blurring the lines between the physical and digital shopping experiences, calling for every brand to have a ‘phygital’ strategy. Today’s consumers are engaging across multiple platforms – Web3, AI, metaverses, NFTs, video games, live streams, and even nostalgic films. The brands succeeding at authentic engagement are meeting their customers where they are, and where they’re going—including offline. A fast food chain in China has been creating phygital experiences in ordering kiosks. To help customers tailor their cars and try new accessories, a leading automaker unveiled an AR tool that recognizes a customer’s car through the camera and adds virtual accessories thereby making customers feel more confident about their car purchases.
- Cybersecurity will continue to be a key challenge: The average annual cost of cybercrime expected to increase from $8.4 trillion in 2022 to more than $23 trillion in 2027. However, Asia Pacific is experiencing a huge increase in cyberattacks. This raises concerns behind the rise in attacks and the rapid need to adopt measures to address the growing cyber threats in the region. Singapore is emerging as a leading hub for cybersecurity solutions thanks to its advanced technological infrastructure and strategic partnerships with global companies.
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