124. How WGSN Forecasts the Future

Propolitics, it's civic hope. And we've gone through a major election year across the world. I think there's been 74 different major elections. And so people have had all the emotions going into those and coming out of those. But civic hope is actually the belief that individual actions are necessary to improve our communal well-being. So no matter what, if you, the person you wanted to be in power made it or not, you still are going to have that civic hope that you can do something about your own future and your country's future. That was Lisa White, Director of Strategic Forecasting at WGSN. Hello and welcome to the Create Tomorrow podcast. I'm your host, Cassandra Nappley, Head of Marketing and Events Insight at WGSN. Every two weeks, I will be taking you on a journey, looking at how brands and consumers are creating tomorrow, whether that's through product innovations, actions and strategies, or online behaviors. Today, we'll be looking at the 2027 Steppek Forecasts, which track the challenges and opportunities for the years ahead across six areas-- society, technology, the environment, politics, industry, and creativity. Steppek is our proprietary methodology at WGSN, and acts as the lens through which we view the future. Joining me to explore this topic and walk us through the drivers, innovations, and key emotions set to impact 2027 is Lisa White, Director of Strategic Forecasting. Hi, Lisa. Hi. And can you very briefly describe what you do here at WGSN? I run the overarching trend forecasting that drives both consumer and product design trends. And that's in all the industries we serve. So that's fashion and food to drink, and interiors, and tech, and beauty, and support and outdoor. So it's about the overarching trends that connect them all. Also here is Ella Hudson, Head of Research. Hi, Ella. Hello. And what does your job entail? My job could be divided into two distinct parts. So the first is developing the best practice research processes that underpin the Steppek methodology that we use here at WGSN. And then the other part is conducting my own research, which is really focused on design innovations, with a special focus on sustainability and DEI. And last but certainly not least, is Martina Roca, Lead of Foresight. Hi, Martina. Hi, Cassandra. So in my role, first of all, I work for WGSN Insight, which is the Behavior and Cultural Research Intelligence of the Company. And specifically, in my role, I investigate how early innovations and early signals emerging across different areas. This could be academia, this could be design, this could be subculture. So how these signals and innovation will impact consumer behaviors, consumer value systems, marketing industry shifts in the long-term future? And the insight that we develop within Foresight are very helpful for our clients to kind of accelerate innovation and transformation across sustainability and culture. OK, to start with you, Lisa, if any of our listeners went to business school or are familiar with trend forecasting as a whole, they probably know the pest methodology or the pest framework. At WGSN, we have our own proprietary methodology called Steppic. Can you share how that makes us different and why this lens really works for us? Sure, of course. And already the name Steppic, that just sounds so much more epic than something that sounds like pest, which sounds kind of irritating. But anyhow, it's pets to a great methodology. But Steppic is similar to it because it's a foundational framework for researching into the macrofactors that shape a business landscape. But pest only looks at politics, economic, society, and technology. For our clients, and I would say for the world at large, it's an incomplete picture. We've added in the environment because it's one of the biggest risks for our future, climate change. But we also added in very importantly creativity, because innovation and imagination are going to be fundamental to solving the very, very pressing problems that we're facing in the future. So we're here today to discuss our Steppic suite of reports for 2027. So basically, how we get here is that all experts across the business come together every August to present their version of what the world is going to look like in 2027 across product design, across different regions, across topics like the internet and design features. And then from there, a small group of people dissect those presentations to find common themes and many people on this call right here. Myself included, then orchestrate the development of a suite of reports that set the scene for that year, in this case, 2027. So naturally, it all starts with the consumer. We kicked off with our 2027 forecast with our Steppic Consumer Emotions report. This is a piece that recognizes really the crucial role that emotions play in driving consumer desires and decisions and set the foundation for all of our other upcoming 2027 forecast. So Lisa, I want to start with you. I know this is a very big task, but can you briefly walk us through the six key emotions that we've landed on that will define 2027? Yeah, it's just super important because we've been talking about consumer emotions for a while, but this time we've really pulled it out in such a big way because we know that emotions drive everything. They drive financial markets. They drive shopping behaviors because people often shop not because they necessarily need something, but because they want to feel something if that is safety or confidence in the future or whatever that might be. But for example, for society, the emotion is with or will. And that's a kind of obscure emotion that comes from a book called the Dictionary of Obscure Sorrows. It's a really great book. But with or will what it is is the longing to be free from responsibility. And a lot of us this year, I even have-- I'm looking at my shoulders and they're up like near my ears. We have a crushing sense of responsibility of all the things that we need to do and be if it's for the world or our personal lives. And people want to feel less overwhelmed by the pressures that are coming up through the polychroises. Then the emotion for technology is suspicious optimism, which I think everybody will get. It is some people are feeling more suspicious about tech. Some people are feeling more optimistic about tech. And some people are feeling really half and half. And that includes tech professionals. And it's interesting to see that suspicious optimism changes depending on where in the world you live and what profession you're in. It's really interesting to see who is most suspicious and who is most optimistic. And it's very surprising. You got to read the report to find out. And for environment, the emotional state, I should say, is resilient adaptation. Because we're taking a look at an already changed climate. I can talk about that later. So we have to be resilient to avoid further changes. And we also have to adapt this already changed climate. So resilient adaptation is it. So no matter what, if you-- the person you wanted to be in power made it or not, you still are going to have that civic hope that you can do something about your own future and your country's future. For industry, it's shared vigilance. And that's super important, too. It's again a bit polarizing. There are certain things that we want to share that happens to be a consumer with their information or a company with their IP. And there are certain things that we want to protect. And that could be gatekeeping something, keeping it to yourself, that's for your company, or even keeping, like for example, the perfect thing that you wear that you don't want to share with everybody else because it's your own secret. So shared vigilance is actually going to be very interesting. And to finish up, the last emotion here is strategic joy for creativity, because joy is not just a way to rise above the stresses of the world, but it's going to be a really important tool to help reimagine the future. And that's linked to civic hope, it's linked to witherwill, it's linked to all the interconnected elements of Steppek. It's nice to end on a positive note there. I'd like to touch on every Steppek pillar. So there's six letters in Steppek. Each represents a different aspect. So there's society, technology, environment, and so on. Each of those letters has a sort of key theme that we've pulled out. So for society, this is the first one. And the theme here is me and we. Ella, I'm going to come to you here. Can you tell us a little bit about this theme, me and we, and what it means for maybe businesses and designers come 2027? In terms of design, I think we can expect to see a lot more innovation around community building, especially in real life. There's definitely a lot of this going on in virtual spaces, too. But I think our research is showing that coming together in real life is going to be super important as we move towards 2027. So things like communal living, which we've actually been tracking for a really long time, and we have lots of reports on this topic on the site already, is really starting to gather pace. And then, yeah, at a product level, thinking about designs that are made for sharing is going to be really important. So one trend that we-- or one product that we've featured in the reports with these huge bags of crisps that were developed as gifts in China, they went viral on TikTok because people were actually sharing them on public transport, and they became this really nice conversation starter. So yeah, you could go on and on with products that are designed for sharing. I think there's a lot of scope there for innovation and ways of using product design to bring people together. So that's the we of this report. And then I think if we zone in on the me part, I think the bit that I'm most excited about is the rise of individualized design as the move on of personalized design. I think the personalized thing in some instances has become a bit gimmicky and lacking in substance. And I think individualized design is really kind of moving at a pace, especially when you look at innovations in 3D printing that are transforming how we can design for the individual. So one example that we featured in this report was recent breakthrough in additive manufacturing. Basically, researchers found a way to essentially print multiple medications into a single tablet. So this is really potentially marking the dawn of individualized pills that could deliver timed doses and kind of transform the way that we ingest medication. OK, so next up in this Stepik acronym, we have technology. So for 2027, the theme is all about wise tech, where we said attitudes towards technology range from the idea of suspicion to optimism. And people will place equal value on both human intuition and tech's rational precision. This will give rise to practical, sustainable, and even soulful innovations. Moving away from tech for its own sake. So I guess Martina, let me come to you. How will wise tech emerge in both business and design come 2027? So it's not going to be any more about tech fighting humans and the other way around. But it's more about creating our monious blend between the human and the technological intelligences. So we will see the rise of something called agente AI, which is a new type of systems that combines tech, machine large language models and machine learnings with human qualities reflected in technology, such as reasoning and dynamic planning. And so we will see the convergence of many apps and tech services that now are very much fermented. So we will see the convergence of these apps and services into one unique system, which is the agente AI. In terms of business strategies, we will see ethics, human ethics, societal, cultural, ecological ethics being embedded into technological systems, especially artificial intelligence. This is a new type of technology that we completely embrace. We started to use, but now we are going through a process of critical approaching, which we are also seeing the negative part of these technologies, such as the perpetuation of human biases, inequality, lack of representation. So we will see many human values, such as inclusivity, diversity, entry into technology. And in this space, we see already international organizations, such as UNESCO or the ASEAN, which is the Association of Southeast Asian Nations. They already develop like code of conduct or regulations around ethics and AI. And this, from a design perspective, is going to lead to a sort of planet-centric design in technology. So we're going to kind of increasingly stop thinking about just a human user, but embracing as a user also all human beings, including the planet itself. And this mean creating product that are sustainable, for example, the nothing phone, which is like a UK design mobile phone. The integrated sustainable aspects, for example, is made partially by recycled plastics. Many of the components are removable and recyclable. And also the carbon footprint of this product is very low. When we talk about convergence, one of my favorite aspects of that section of the report was about leaning on tech to combat in real life loneliness. We've done a ton of work around this on inside across the different product verticals. We had a whole section on digi-sexuality a couple years ago, which talked about this sort of rise of replacing human interactions with digital interactions-- AI friends or AI romantic partners. I'm curious. We say that a survey in Brazil found that 10% already use AI as a friend or advisor to work through emotional issues. Do you see this as something that is really going to take off and move beyond the fringes? And what do you think the implications are for consumers with that? Definitely. We talk about this idea of like a genty AI. This is a system that was also is going to be incorporated into consumers' life as something also as an extension of your identity or something that is part of your life, as we use, for example, social platform or we use chats. But this is a system that consumers themselves are going to start to train through their behaviors, through their experiences. Now we see the artificial intelligence can learn also through voices, through emotions, through visuals. So you are able to show to your AI tool also the experiences that you do through a camera. So the AI can learn about your experiences through your eyes. So these systems are going to become part of our life in a very deep manner. Amazing. So I'm going to move on to environment. The focus here is on the idea of climate changed. So we highlight how the climate crisis is intensifying and its effects are becoming more immediate and apparent, making the widespread consequences of rising temperatures the new abnormal, shifting the narrative from being climate conscious to climate changed. We wrote that in 2027, the crucial conversation around sustainability and circularity will focus on balancing the reduction of climate changing practices rather, alongside adaptation to an already changed climate. So Lisa, I'm going to come to you on this one. What do you think are the biggest sort of takeaways from this idea of climate changed as we head into 2027 and tears? Again, we are already living in a climate changed world. So consumers are going to be looking for brands that are going to be supporting their well-being. We have to adapt. We have to be resilient. We have to find solutions because we're seeing that climate health equals public health. That's another really important message. You've got air and water pollution, think about plastics and water. They are negatively impacting people's health every day. And heat is impacting everybody's lifestyles as well too. And we're shifting to nocturnal living. There's a whole podcast on that with WDSN. And that means that activities are shifting to earlier in the morning and later at night in order to stay cool. And in order to cool people, we're seeing things like air-conditioning garments that are coming from high design in Japan. So you can actually cool the person with the garment instead of air-conditioning the entire room. So you stay cool and you're actually cutting down on some of those resources. But another really interesting thing to, again, from fashion, is that whether wear and active wear is really under scrutiny as people are sweating a lot more and being in the rain, people do not want PFAS to leech from their clothing onto their skin. And this is a consumer call out, as well as a legislative call out. And that is going to drive change in and of itself. OK, we're going to switch gears now to politics. Now, we talked about these interesting concept of sharing the stage. That's the big theme in 2027 for politics. We talk about international migration evolving multicultural identities, really accelerating a shift to a dynamic, multi-polar world with several power centers, not just one or two. So as new voices share the stage with established powers, whether based on gender, generation, or nationality, tensions will arise in dominant regions, such as North America and Europe, they'll have to share their privilege with an ascended economy as an Asia-Pacific, Africa, and Latin America. Now, we said embracing these shifting dynamics will really be essential to identify overlooked allies, new long-term partnerships, and fresh opportunities. Martina, I'm going to come to you for this one. Can you talk us through this idea of sharing the stage and what you think it means heading into 2027? Cultural awareness, care, and cultural respect will be key to be able to kind of manage and secure cross-national partners and partnerships with allies beyond the usual US and Europe. It's going to be increasingly important also for brands to look at their cultural reputation, I would say. So to look back and look how colonial heritage has left residuals in their current work and in their current operation. So it will be essential for brands not only to analyze this critical, but also to open the dialogue with parties that have been overlooked before and give voices to minorities and really establish like a dialogue with all parties involving to their business, including minorities. So industry centers on the idea of being both protective and open. Retailers and brands will need to reconcile new currents of protectionism with the value of global connections as they navigate a post-globalization era. We said that we would see more diversity and flexibility in supply chains and business models. There's going to be a focus on mitigating risk rather than building competitive advantage. That's things like more open source technology, is regenerative practices and new materials and ingredients that accelerate cross industry innovations and really help combat resource scarcity. So Ella, I'm going to come back to you for this one. What does all of this mean for 2027 in terms of business and design? As you mentioned, I think we can expect to see a lot more open sourcing at both business to business and a business to consume a level. So, thinking about product, this really ties into the right to repair legislation that's coming into force in several parts of the world. Lisa touched before on sustainability legislation and I think this is definitely sort of the right to repair is another key area for legislation. The businesses need to be preparing for if they aren't already. So yeah, like a business level, I would say Google is one really shining example of how open-source income really helped to move the needle on sustainability. So they developed this recyclable paper packaging for the Pixel smartphone and published an open-source design guide so that others can implement that innovation. So this is an example of where I think consumers are really going to expect businesses to share these types of wins in order to push for progress. Like this isn't a time to be gatekeeping these types of innovations. I think this selective gatekeeping conversation is interesting because for the past couple of years we've talked about curation as a service and how the creator economy is really powering this idea that you really don't have to be an expert in anything because they kind of do it for you. They say here's all the best places you should go and Lisbon if you're going to Lisbon and they sort of curate your itinerary for you. But what we're seeing now is sort of the opposite emerging, right? There's like too much saturation and so people are kind of protesting against that because they want to protect their local spots from being inundated with tourists. And I think that's such an interesting shift that I've noticed over the last couple of years. Finally, perhaps my favorite is the letter C here, which stands for creativity. And the focus here is on the idea of play power where we highlight how play will emerge as a powerful tool for self-discovery, connection, innovation and cultural influence, combining shards of society into a whole. So the importance of play will be promoted beyond amusement or distracted to become a strategic pillar of individual and societal well-being in 2027, which I love. Lisa, I'm going to come to you for this last one. Can you explain to our listeners why play power is set to emerge in 2027 and what it means for brands and businesses? Yeah, I think from more of a general perspective and creativity is everyone's favorite. And that's from our teams to our clients and play as such a central part of creativity. They want to play more, they want to dream more, they want more time to be free thinkers and doers. But play, interestingly enough, is going to become more recognized than ever before. And it's going to be more of a focus. And this year for the first time, we had the first international day of play. And that will be every June 11th going forward. And that's really important. It's kind of like a calendar driven KPI. So we will be thinking more about it from that perspective as well too, designing into it. And we know that the data proves that play makes people happier. If that's kids or adults, if that is people who are in hospitals or people struggling with Alzheimer's, it's everybody benefits. But what's interesting too is that the data says that it makes businesses run better. And when we're doing all of our research, we found that 96% of business leaders agree that creative ideas are essential to their long term success. So creativity is long term success. It's not just the fun parts when you're workshopping. That's why the emotional state we spoke about earlier, the strategic joy is going to be so important because joy is not just a pleasant goal. It's crucial to the future. And kind of combining all of this, we're seeing the return of experience design where people are more focused on real life experiences, beyond products that touch all of the senses for that feel appeal and bring them joy. And people really want that collective effervescence that you can feel with other people at a concert or a sporting event or a treasure hunt. And it's interesting that we're trying to figure out how to measure these things, measuring emotion, measuring joy and measuring success in this case for play. It's just about having fun. And my favorite play event that kind of explains this a little bit is the World's Ocaist Skater Tour. And that takes place in 16 different cities worldwide. You don't have to do anything more than get on your skateboard and celebrate the joy of skating for your pleasure and playing itself is really the win there. I love that. Okay, so this is the final question. I ask all of my guests this, but who is someone that you admire that's creating a version of tomorrow that is really inspiring to you? Lisa, I will come to you first. They'll put you on the spot. From a product design perspective, there is one person I really admire and she's creating tomorrow the way it could look like her name is Rebecca Hui. She's running this operation called Roots Studio in New York and it is a digital library of indigenous art and patterns that brands can consult to buy prints and patterns for their t-shirts and their hoodies and that type of thing. And these patterns have a real story to tell artisans who've been creating these for years and years and years. The history and the traditions have built up the stories. What I love about this is the money from purchasing these print patterns, it goes straight back to the communities, straight back to the artists. They can continue creating their art and perpetuating their backgrounds and their points of view. And it's great for consumers to you talking about how much should we communicate, what we're doing as brands to consumers. And letting somebody know that the pattern on their hoodie is more than a really great looking leopard. It actually has this huge cultural background. It's such a win for everyone. So in an age where we're going to be seeing so much AI-driven design, knowing that this rich digital cultural library of human-queed design, for me that is something I admire enormously. Ella, what about you? I'm going to say, Chicksmag is really aligned with the future that I want to exist in. We feature them quite heavily in the environment, Pella, of this forecast. Their work is really focused on the interconnectedness of the health of the planet and the health of the people and how the two are just inextricable. And their vision for a matriarchal society definitely gives me a lot of hope. And this focus on community and collectivism over the individual is, I think, a vision for the future that I feel very excited about. Martina, how about you? is an investigative journalist and an author. So he wrote a couple of books, and he's only 23 actually. He's originally Senegalese, but he migrated to Italy when he was 16. He actually made his way to Italy by walking. So he crossed the entire continent by walking and then immigrated through water, which is like a- The usual route that migrants from Africa do, and he's completely reframing our understanding of what our migrant is. He's breaking a lot of prejudices and preconceptions that are built in the mind of people around migration. And he's really retelling the story of migration from his perspective and from the community, from the perspective of his community. And it's beautiful. So not only the history, the story that he embodies, he's only 23. So he's already wrote several books. He speaks like four languages. So not only his story is very inspiring, but also what he's doing through his actions. Because it's really transforming culture towards the future. I would like to see of this multicultural and diverse and inclusive future that enhances diversity rather than repressing them. Thank you to my guests, Lisa White, Director of Strategic Forecasting at WGSN. Cultural Stragis and Forsyth Lead Martina Roca and Ella Hudson, Head of Research. If you're a WGSN subscriber, look out for more trends available at WGSN.com. And if you're not a subscriber, please come and discover our services. We'll be back in two weeks time for our next episode. In the meantime, you can catch the CEO of WGSN, Carla Buzashi, next week on our other podcast, Lives of Tomorrow. I'm your host, Cassandra Napoli. Be sure to follow and subscribe to this podcast and see you next time.