10 TRENDSfor MENA

2015

February 2015

J W T MEA

BRAND INTELLIGENCE MEA

foreword

J W T M E A

Dear reader,

J. Walter Thompson MEA has always believed in the need to understand change. Not just what’s

happening now, but what’s happening next. And also that insight, innovation, ideas and inspiration

are more often found by throwing the net wide outside our doors, to different sectors, communities,

disciplines and minds. When applied, the combination of all this knowledge can truly elevate work and

lead not just to creative solutions, but also, shrewdly plotted strategies.

That’s why, five years ago, our agency made the pioneering move to set up what we now call Brand

Intelligence, with the purpose of interpreting these changes and what they mean for the future. Brand

Intelligence is J. Walter Thompson MEA’s trends forecasting, thought leadership and insight platform,

and its annual 10 Trends report has become widely known for setting the agenda on trends.

This report outlines 10 of the most compelling macro trends identified today—trends whose impact

will be felt in 2015 and beyond as they continue to unfold, the ones shaping societal mood, behaviors

and attitudes. This report explores where these trends stand now and where they’re headed, with

insights gleaned from a J. Walter Thompson MEA survey of consumers across six key regional markets

and a spectrum of industry experts and innovators.

Never has it been more important to understand change. The world is evolving at a rapid rate.

Consumers are changing their behavior and adopting services at breakneck speed, creating real

challenges for businesses but also exciting opportunities. It’s our aim to identify the changes that

matter, the most impactful ones, and help inspire brands to adapt and create future-ready initiatives.

We hope you enjoy.

Mennah Ibrahim

Head of Brand Intelligence MENA

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B R A N D I N T E l l I g E N C E M E A 3

executivesummary/methodology

In our third annual forecast of MENA trends for the near future, transformative shifts are happening among Arab consumers as a result of hyper connectivity in this digital age. These better informed consumers are fully aware that the regional turmoil of the past few years has stunted their progression and disrupted their ambitions and hopes for the future, and people are redefining all of their priorities, perspectives and affiliations, expecting brands to step up with more responsibility than ever before. From empathetic and ethical behavior to the convenience and service they offer and speed of response in our culture of immediacy, brands must make purchases seamless, offer highly personalized services and put more good back into the communities they take from, to win their audiences over.

leading almost all these trends is the young Millennial Arab. They are early adopters of technology and new services, particularly if they offer extra convenience and long-term social value. Because they are more open to alternative ideas than previous older cohorts, they are driving the revolution in mobile payments; the rise of the collaborative economy; and the equalization of gender, transforming the way brands must do business.

Betterment is the prominent buzzword of the year, as consumers become set on creating long-term social change. These proactive cohorts are taking on the responsibility of reshaping their identities, futures and the Arab landscape at large, leveraging crowd-power and technology as the enablers of self-sustainable lifestyles.

Perhaps what is changing and challenging brands the most today is the Millennial value system; the idea of ownership and traditional status markers are giving way to more temporary and experiential purchases - like travel or rent

– that offer up a new angle, bring in a fresh perspective or provide the ingredients for telling a great status story. Raised on good design, the Internet and social media, this generation can decipher disputable elements immediately or discover them online, meaning that brands need to be

utterly open and transparent with them.

Coupled to all of this, we see smartphones becoming highly embedded in our everyday lives as the portal to the world. It is the connection to our social circles, the channel for shopping and payments and the enabler of small business growth. It is also the way we document and share our lives. The phone’s ubiquity and convergence with other digital devices is making people more aware of their world and their own behavior and they now expect their data to provide real-time and better solutions, helping them adjust to the situation at hand.

Bookmarking the Millennial cohort, the Middle East’s population is growing older than it’s ever been, with a generation of 50-plus consumers that are set to live longer and more vivaciously than previous generations before them. Here too, things are changing. This cohort is living with age-less sensibility. They are influential stakeholders in their communities and what’s more, they’re wealthy. There will be endless opportunities to engage them with appropriate products and services bringing the possibility of an exciting new stage of life.

Methodology

This forecast is a result of quantitative, qualitative and desk research conducted by Brand Intelligence MEA throughout the year.

Specifically for this report, we conducted a quantitative survey from 5-19 Jan 2015, across 6 key MENA markets, using SONAR™, JWT’s proprietary online tool. We surveyed a total of 1661 adults’ aged 18+ in Morocco, Egypt, KSA, UAE, Kuwait and lebanon. We also received input from JWT planners around our MENA network and interviewed experts and influencers across sectors including media, technology, retail and sociology.

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Benevolent Brands

As corporate distrust and contempt levels rise, Arabs are opting for brands and companies that show them empathy, social conscience, generosity – or simply put – a more virtuous side.

Caring Tech

The proliferation of data - as consumers obsessively quantify everything from footsteps to dollars spent - is leaving people paralyzed for choice. However, with information architecture becoming all the more sophisticated, brands can now prescribe personally crafted solutions that inform a better, stronger, faster now.

Generation B-Old

As the Middle East population grows older than it’s ever been, the Arab World is on the cusp of a demographic transition. Watch for a proliferation of products and services catering to this tenacious demographic as they strive to live independently in a lifestyle landscape that has changed beyond their recognition.

Retail Rivalry

The crowd economy is gearing up, disrupting retail, as we know it. Better-informed shoppers and better tech are allowing small businesses to grow in unexpected ways. As everyone (and everything) becomes a retailer and the channel wars kick in, brands must become increasingly imaginative as to where, how and when they sell their goods.

Mashing Up Tradition

Arab Millennials are ushering in new social norms with an ‘anything-goes’ attitude and a new mindset that is open to alternative ideas. People are now mashing-up long held traditions with a mix of new flavors, creating their own recipe of what feels right to them.

Bil 3arabi

We’ve entered an era where Arabic has officially regained its ‘cool’ factor. New language systems, words and methods of communication are emerging, as people hunger for content in their mother tongue; visual and aural denotations of cultural relevance that can only be polished off in Arabic - ‘Bil 3arabi’.

Nifty Naturals

Evermore aware of toxic lifestyles, the ‘worried well’ are turning to natural alternatives as they attempt to preserve (or restore) their health, wellness and balance. As consumers single out ‘Mother Nature’ for ingredients, remedies and superfoods, brands and retailers must rethink their position and ingredient funnels in the new natural marketplace.

Rise of the Incognito

Forget FOMO! If there’s anything our increasinglyconnected world has taught us, it’s that there is an unlimited amount of ‘cool’ or meaningful things we are not doing. And with this realization – that it’s not really that ‘cool’ if everyone else is already doing it – a growing segment of people are reclaiming their privacy and shrouding themselves in anonymity, reveling in the curiosity they’re evoking by evading the masses.

Everyday Extreme

Bogged down by mediocrity in a world where everything feels so déjà vu, people are increasingly walking ‘on the wild side’ to jolt the momentum of life. ‘Risky business’ is taking on a positive menaning, as the ‘extreme’ version of anything is now widely assumed to be an improvement on the original, motivating more young Arabs to take on experiences of unconventional, daring and even unknown outcomes to put a ‘kick’ back into everyday life.

Buying Betterment

Plagued by a constant battle between their consumerist impulses and moral intent, Arabs are trading in ‘mindless indulgences’ for a more considered approach to living. gravitating towards choices that draw on what’s ‘better for me’ as opposed to what’s ‘gratifying’ and seeking out purchases of a less negative impact or of a more sustainable effect, on both themselves and on their societies.

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B R A N D I N T E l l I g E N C E M E A

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JAs corporate distrust and contempt levels rise, Arabs are opting for brands and companies that show them empathy, social conscience, generosity – or simply put – a more virtuous side.

Where It’s Headed

Consumption today is increasingly being driven from the

heart and consumers are making choices determined

by their positive impact on themselves and on their

societies. After years of one-sided corporate gain,

people expect brands to balance out the value exchange

with sympathetic solutions that demonstrate an

understanding of their goals and most pressing setbacks.

Brands that stand to benefit are those that will not only

do good in their communities - but also represent good

and put good back into the cycle they ‘take from.’

“WE HAVE JUST COME TO TERMS WITH JUST HOW MUCH PEOPlE ARE lACKINg IN TERMS OF BASIC NEEDS AND HOW MUCH OUT THERE THAT NEEDS TO BE FIXED. IF WE ARE TO MOVE OUR COUNTRIES AND ITS CITIZENS FORWARD, IT’S EVERYONE’S DUTY TO PITCH IN TO FIX THIS – BRANDS INClUDED.” — TINO WAKED, FOUNDER OF TRAIN FOR AIM“

Where We are

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caring tech02

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JThe proliferation of data - as consumers obsessively quantify everything from footsteps to dollars spent - is leaving people paralyzed for choice. However, with information architecture becoming all the more sophisticated, brands can now prescribe personally crafted solutions that inform a better, stronger, faster now.

Where It’s Headed

The convergence of the Internet of Things (IoT), artificial

intelligence, and big data is making people more aware of

their world and their own behavior. We are moving from the

territory of predicative technology that ‘knows’ people to

the territory of prescriptive technology, which ‘tells’ people,

proactively helping them adjust to the situation at hand.

Instead of trying to blindly increase penetration and frequency,

future brands will understand peoples’ consumption better,

and help them optimize their health, wealth and happiness.

“PEOPlE ONlY KNOW WHAT THEY WANT, NOT WHAT THEY NEED AND CARINg TECH SHOUlD BE PROACTIVE, STEMMINg FROM (BRAND) INITIATIVE, NOT FROM CONSUMER DEMAND.”

— TAREK HADDAD, REgIONAl PlANNINg DIRECTOR, JWT lEVANT“

Where We are

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J As the Middle East population grows older than it’s ever been, the Arab World is on the cusp of a demographic transition. Watch for a proliferation of products and services catering to this tenacious demographic as they strive to live independently in a lifestyle landscape that has changed beyond their recognition.

Where It’s Headed

In their quest for independent and fulfilling lifestyles, brands can no longer turn a blind eye to a growing Boomer segment. And the need for products that not only give Boomer savings the much needed mileage, but also allows them to enter a world of endless and ‘age-less’ possibilities, all the while ensuring that these experiences are entertaining, easy to navigate and safe.

Where We are

generation b-old03

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“WHAT WE’RE DEAlINg WITH HERE IS A COHORT OF OPTIMISTS, WHO STIll WANT TO ADD VAlUE TO THEIR lIVES AND THE lIVES OF OTHERS. TO THEM THAT MEANS gETTINg UP OFF THE COUCH AND SEEKINg OUT NEW EXPERIENCES FOR THEIR OWN PERSONAl FUlFIllMENT OR REAllY PAYINg ATTENTION TO PEOPlE AROUND THEM AND FIgURINg OUT HOW TO MAKE THEIR lIVES BETTER.”

— ROY HADDAD, DIRECTOR WPP, MEA“

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retail rivalry04

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J The crowd economy is gearing up, disrupting retail, as we know it. Better-informed shoppers and better tech are allowing small businesses to grow in unexpected ways. As everyone (and everything) becomes a retailer and the channel wars kick in, brands must become increasingly imaginative as to where, how and when they sell their goods.

Where We are

Where It’s Headed

As mobile devices and unbound connectivity help make everything ‘Shoppable’, the traditional buying cycle becomes a continuous loop of marketing and merchandising—informing, inspiring and helping guide shoppers by way of various touchpoints so they can buy as the need or impulse arises. The aim is to make the process as fast and frictionless as possible. Taking advantage of these new ways only opens up more opportunities to capture consumers and frequently enables new ways to gather data on ROI and shopper behaviors.

“WHAT WE’RE gOINg TO SEE IS BRANDS MAKINg MORE DYNAMIC USE OF All THE CHANNElS OUT THERE, BUT IT WON’T JUST BE ABOUT SHIFTINg TO TECH, AS BRANDS ARE gOINg TO HAVE TO BECOME QUICKER AT PUTTINg A FACE OR VOICE INFRONT OF CONSUMERS, TO ClOSE THE lOOP TO PURCHASE AS FAST AS POSSIBlE.”

— TAREK HADDAD, REgIONAl PlANNINg DIRECTOR, JWT lEVANT“

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J Arab Millennials are ushering in new social norms with an ‘anything-goes’ attitude, and a mindset that is open to alternative ideas. People are now mashing-up long held traditions with a mix of new flavors, creating their own recipe of what feels right to them.

Where It’s Headed

Although traditions have always evolved and adapted to the times, today, they’re mutating at an increasingly rapid pace, precisely because life is moving so fast. At times like this, traditions – old and new – become more important than ever, something to hold onto as everything else changes around us. Brands have multiple opportunities to place themselves at the heart of this traditional mash-up, guiding consumers down new paths or bringing back the best of the nostalgic past into the present.

Where We are

“THE TRADITIONS THAT ARE CHANgINg THE MOST IN OUR REgION ARE THE ONES THAT ARE HOlDINg US BACK AND THE ONES THAT WE CANNOT AFFORD TO KEEP HOlDINg ONTO, FOR FEAR OF MISSINg OUT ON A BETTER FUTURE.”

—MARIANNE AZZI, ClINICAl PSYCHIATRIST AND PSYCHOTHERAPIST“mashing-up tradition05

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J We’ve entered an era where Arabic has officially regained its ‘cool’ factor. New language systems, words and methods of communication are emerging, as people hunger for content in their mother tongue; visual and aural denotations of cultural relevance that can only be polished off in Arabic - ‘Bil 3arabi’.

Where We are

Where It’s Headed

The primacy of Arabic over English is changing how we see and understand both our region and ourselves, with people pushing back against the proliferation of bland, irrelevant Arabic content around them. given the rich new toolset of ways to communicate in Arabic, we’re growing accustomed to consuming information that’s dominated by our words, coming to favor ‘Arabic colloquial’ over the ‘traditional’, and increasingly, we’re thinking visually; searching for authentic denotations that articulate our emotions, by calling upon cultural or nostalgic icons and animations.

“THIS EXPlOSION OF COMPEllINg ARABIC CONTENT gROWINg OUT OF THE REgION IS A DIRECT RESUlT OF ACCESSIBIlITY – WE NOW KNOW MORE, WE’VE DEVElOPED OUR ARTISTIC TASTE AND WE KNOW HOW TO gET IT DONE AND PEOPlE IN THE REgION ARE BECOMINg OPEN TO NEW AND ORIgINAl IDEAS, THAT PROBABlY WOUlD HAVE PREVIOUSlY BEEN DISMISSED OR WRITTEN OFF AS NOT BEINg CUlTURAllY CONFORMINg.”

—YASMINE HAMDAN, lEBANESE SONgWRITER AND ACADEMY AWARDS NOMINEE FOR THE SONg ‘HAl’, WRITTEN FOR THE SOUNDTRACK OF JIM JARMUSCH’S MOVIE ‘ONlY lOVERS lEFT AlIVE’

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Evermore aware of toxic lifestyles, the ‘worried well’ are turning to natural alternatives as they attempt to preserve (or restore) their health, wellness and balance. As consumers single out ‘Mother Nature’ for ingredients, remedies and superfoods, brands and retailers must rethink their position and ingredient funnels in the new natural marketplace.

Where We are

J

Where It’s Headed

While we’re not quite ready to go pure paleo, one fact remains; people are shifting their priorities in demand of natural products, with consumers becoming increasingly sophisticated in their expectations. Not only do they want less of the ‘bad’ stuff (and this now includes gluten, lactose etc.), they also want more of the good.

“THERE IS A TREMENDOUS OPPORTUNITY FOR FOOD MANUFACTURERS AND RETAIlERS TO lEAD A HEAlTHY MOVEMENT BY PROVIDINg THE PRODUCTS AND SERVICES THAT CONSUMERS WANT AND NEED. WHIlE DIET FADS COME AND gO OVER TIME, INNOVATIVE, BACK-TO-BASICS FOODS THAT TASTE gOOD ARE EASY TO PREPARE AND PROVIDE HEAlTHFUl BENEFITS WIll HAVE STAYINg POWER. THE FIRST STEP, IS KNOWINg WHERE TO PUT YOUR PRODUCT DEVElOPMENT EFFORTS.”

—SUSAN DUNN, EXECUTIVE VICE PRESIDENT, glOBAl PROFESSIONAl

SERVICES, NIElSEN

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Where It’s Headed

Human life is not a database of information, nor is privacy merely an act of keeping information about ourselves concealed from others. Humans have a need to share and be social, yet, they also need space to just be. The fact of it is, privacy is similar to a seductive game of ‘reveal and conceal’ – if and when people choose to reveal it. Real privacy is about autonomy and exclusivity.

Forget FOMO! If there’s anything our increasinglyconnected world has taught us, it’s that there is an unlimited amount of ‘cool’ or meaningful things we are not doing. And with this realization – that it’s not really that ‘cool’ if everyone else is already doing it – a growing segment of people are reclaiming their privacy and shrouding themselves in anonymity, reveling in the curiosity they’re evoking by evading the masses.

Where We are

rise of the incognito08

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“WHEN PEOPlE WANT PRIVACY THERE’S OFTEN THIS IDEA THAT, ‘OH, THEY ARE HIDINg SOMETHINg DIRTY,’ BUT THEY ARE REAllY JUST TRYINg TO HOlD ONTO THEMSElVES. JUST lIKE THAT 65-YEAR-OlD MAN WHO IN HIS YOUTH HARBORED THE FANTASY OF BEINg A ROCK STAR AND STIll SPENDS HOURS BlISSFUllY PRACTICINg HIS gUITAR IN HIS BASEMENT, HE DOESN’T WANT ANYONE TO KNOW, BECAUSE HE DOESN’T WANT ANYONE TO WRECK IT FOR HIM.”

— CHRISTENA NIPPERT-ENg, PROFESSOR OF SOCIOlOgY AT THE

IllINOIS INSTITUTE OF TECHNOlOgY IN CHICAgO AND AUTHOR OF

‘ISlANDS OF PRIVACY.’

“B R A N D I N T E l l I g E N C E M E A

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J Bogged down by mediocrity in a world where everything feels so déjà vu, people are increasingly walking ‘on the wild side’ to jolt the momentum of life. ‘Risky business’ is taking on a positive meaning, as the ‘extreme’ version of anything is now widely assumed to be an improvement on the original, motivating more young Arabs to take on experiences of unconventional, daring and even unknown outcomes to put a ‘kick’ back into everyday life.

Where It’s HeadedAs experientialism hits the mainstream, consumers are becoming increasingly sophisticated. Experience is now a given in stores and hospitality spaces, and brands are having to work harder than ever to wow customers, wrapping in the multi-sensorial, theatrics and even avant-garde art. Not only do consumers want an experience that’s immersive and inspiring, they’re increasingly open to being tested and taken out of their comfort zone, for added bragging rights. The next wave? A growing desire and appreciation for either end of the extreme - dark, minimalistic and even unknown experiences.

Where We are

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“gREATNESS NEVER COMES FROM PEOPlE WHO EAgERlY JUMP INTO BOXES, BUT FROM THOSE WHOSE IDENTITIES ARE lOUD, AMBIgUOUS, IN-BETWEEN, A lITTlE SCANDAlOUS, UNASHAMEDlY DEVIANT, TANTAlIZINglY ElUSIVE. PEOPlE WHO ARE lESS lIKE POlICEMEN OF THE SElF, AND A lITTlE MORE lIKE ITS OUTlAWS.”

— ESQUIRE AUTHOR“B R A N D I N T E l l I g E N C E M E A

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J Plagued by a constant battle between their consumerist impulses and moral intent, Arabs are trading in ‘mindless indulgences’ for a more considered approach to living. gravitating towards choices that draw on what’s ‘better for me’ as opposed to what’s ‘gratifying’ and seeking out purchases of a less negative impact or of a more sustainable effect, on both themselves and on their societies.

Where It’s Headed

long gone are the days of heedless living. Arabs are on a quest for ‘betterment’, through a more conscious and considered approach to living. It’s not that they are focused on living a life without consuming but rather want to keep shopping for things that will make their lives truly better. These consumers will be inclined to apply more meaning to their purchases, to scrutinize labels and quality more carefully and to tune out marketing messages, as they take the time to reassess what is truly ‘better’ for them, thinking harder about the value they’re getting for their money.

Where We are

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About J. Walter Thompson

J. Walter Thompson, the world’s best-known marketing communications brand, has been inventing pioneering ideas for the past 150 years. Headquartered in New York, JWT is a true global network with more than 200 offices in over 90 countries, employing nearly 10,000 marketing professionals. JWT consistently ranks among the top agency networks in the world and continues a dominant presence in the industry by staying on the leading edge—from hiring the industry’s first female copywriter to developing award-winning branded content today. For more information, please visit www.jwt.com and follow us @JWT_Worldwide.

About Brand Intelligence MEA

Brand Intelligence MEA is a center for provocative thinking that focuses on identifying shifts in the global zeitgeist. Its aim is to bring the outside in—to help inspire ideas beyond brand, category and consumer conventions—and to identify emerging opportunities so they can be leveraged for business gain. As a part of JWT, the world’s best-known marketing communications brand, Brand Intelligence MEA has conducted trends research and analysis across categories and geographies for half a decade. For more information, please visit www.jwt.com/mea and follow us @JWTMEA.

credits/contact

J W TB R A N D I N T E l l I g E N C E M E A

Brand Intelligence MEAMennah Ibrahim, Head of Brand Intelligence MENA mennah.ibrahim@jwt.com

Dana ElHassan, Trends Strategist

JWT SONAR™Brittany lewis

ContributorsTarek Haddad and Rita Haddad

Art Direction & DesignFiras Safa and Roger Der Boghossian

For more details about this report, please contact:

Mennah Ibrahim, Head of Brand Intelligence MENA mennah.ibrahim@jwt.com

Philippa Clayre, Head of Corporate Communicationphilippa.clayre@jwt.com