Renault Group looks at consumer trends to innovate the automotive industry
With the help of its Customer Intelligence Department, Renault Group has always been able to decipher changes in society and find the most appropriate solutions. With the world continuously changing, car manufacturers need to keep abreast of underlying consumer trends if they want to continue to innovate and engineer future-ready products and services.
This challenging but exciting responsibility falls on the shoulders of Eric, the Trend Manager of the Customer Intelligence Department at Group Renault. Here is his take on the major societal changes that are affecting the automotive industry.
“Our society is in a time of profound crisis. Our role is to understand what consumers will need in coming years to engineer the mobility of the future with individual and collective responses from all our brands: Renault, Dacia, Lada, Alpine, and Mobilise.”
Group Renault Vehicles Keep Making History
It’s no coincidence that Group Renault has delivered some of the most iconic vehicles that seem to set in motion automotive and consumer trends for the next generation. Think about the impact the Renault 5, Twingo, Espace, Scenic and the more recent Renault ZOE had on the industry as a whole.
Over the years, Group Renault has proven its ability to disrupt the automotive sector without sacrificing the needs and expectations of consumers. The same applies to Dacia with the incredibly successful launches of the Logan and Renault Sandero, developing new cars at second-hand prices.
Without the hard work of the Customer Intelligence Department at Group Renault, these success stories would not have been possible. Here’s what Alain KLAPISZ, VP Customer and Market Intelligence had to say:
“The mission of the Customer Intelligence Department is to first observe and understand the ways in which society is changing and to then incorporate consumer needs into the products and services that Renault Group brands currently offer and are yet to offer around the world.”
What Are The Latest Consumer Trends Shaping Buying Behaviour?
Group Renault has identified five major consumer trends that are shaping consumer behaviour across the globe. While challenging, these trends keep Renault informed on the way they should design and deliver vehicles, services, and mobility solutions in general.
Authenticity
The only to be authentic is by building trust as more consumers value human touch and having an earnest relationship with the brand. A good case in point is that, in 2020, 48% of people reported buying their products and services exclusively from trusted brands. This shows a marked increase of 11 points over six years.
This implies a much higher expectation for companies to show transparency, commitment, and to live up to their promises. Going forward, people want companies to embrace human values of empathy and ethics. If this is done effectively, 59% of consumers are willing to spend more while 78% believe that companies can strike a balance between profitability and supporting worthy causes.
Sustainable Well-being
Achieving sustainable well-being requires cultivating personal well-being and finding joy in consumption with a minimum impact on the environment. People want to buy and use products that are essentially guilt-free which is one of the major consumer trends to focus on.
Around 50% of people say they are actively looking for products and services that bring together joy and sustainability. At the same time, 46% of people around the world feel guilty when their actions could harm the environment. This results in 60% of European customers expecting companies to actively find a way to help protect the planet.
Companies like Group Renault are therefore developing a more sustainable mode of consumption with a greater focus on responsible and eco-friendly products. One example of creating designs that are both eco-friendly and resource-friendly is the much-loved Renault ZOE. Renault Group has been actively involved in fostering circular-economy practices for many years and will continue to do so.
Active Empowerment
People are constantly evolving and that often includes searching for meaning and wanting to help shape a better future. This reflects one of the other major global consumer trends which is active empowerment. To that end, 42% of people want to be actively involved with their local community which means the ‘consumer’ and ‘citizen’ are no longer two separate notions.
As a result, companies must leverage the power they have to create better societies. They can achieve this by growing all the social dimensions of their organisation and adapting their business to feed those aspirations.
Eric added that “this means championing social progress, tackling discrimination, and developing relationships or partnerships that will bring about change for a better future. Once again, this is nothing new for Renault Group. Social progress lies at the heart of our DNA.”
Self-Betterment
Societies are becoming more fragmented and increasingly individualised which creates a need for an identity that is truly valued. This translates into a desire for consumers to align more with the values of individuals and the communities they belong to.
Fact is, 42% of consumers say they only buy products and services that are consistent with their beliefs and personal ideals. As people want a better life for themselves and their families, their quest for self-betterment and greater respect for individuals and group identities also impact consumer habits.
Being true to yourself has become synonymous with personal success no matter where you are in the world or what you do for a living. According to Eric, the challenge for businesses is clear as they must identify groups and individuals with similar values and provide them with relevant offers that reflect that.
“In other words, we need to design products and services that each and every customer can embrace, tailor to their needs, and identify with.”
Simplicity and Efficiency
Life is short and people don’t want to complicate their lives or waste time. We all want life to be as easy as possible which has become a key goal for 53% of people around the world.
For businesses, ‘doing things simply’ means encouraging intuition and adaptability which means giving power back to consumers. ‘Do things simply’ is the guiding ethos behind creating a successful customer experience of a brand’s products or services.
Digital solutions that meet this ethos, if it does not overburden the consumer, are essential to make life a little easier. Eric added that: “Doing things simply and promoting simplicity can potentially generate a powerful competitive edge and distinctive advantage for a company. Within the Group, the growing success of Dacia, which champions the simplicity of its products, continues to prove this.”
Group Renault Inventing The Future Of Mobility
It’s no secret that the world is changing drastically and paying close attention to weak signals and emerging consumer trends is critical for anyone in the automotive industry. For the Renault Group, this has always been a primary focus but now, more than ever, the company is hard at work deciphering and incorporating certain consumer trends.
To be future-ready, the Customer Intelligence Department at Group Renault is running workshops throughout the company that will benefit each brand. The goal is to build on these five growing trends to develop innovative proposals and actions to meet customer expectations. This will go a long way in continuing their efforts to invent future mobility solutions.
There may be several major challenges and uncertainties but Group Renault continues to uphold its ambition of becoming a ‘tech’ company and diversifying its range of mobility, energy, and data services. This ambition is supported by strong, unique brand identities that focus on consumer trends to meet and exceed customer expectations which put Group Renault in a prime position for the future.
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