Brands flourishing in '25: 9 evolving trends and tactics for an prosperous future

Brands Surviving and Flourishing in 2025: Nine Trends and Approaches for the Imminent Future

In 2024, we witnessed the flourishing of Brat vibes, AI expanding its role as both a genius collaborator and a button-pushing disruptor, and luxury undergoing a shift on an unsteady axis, among other things. Following a challenging year for many, what socio-cultural shifts, emerging perspectives, and tech gems are expected to shape 2025 for the retail and marketing sector? How should we respond effectively, fostering longevity and forward-thinking strategies?

From misjudged minimalism to strategic splurging, economic uncertainties, environmental concerns, and the remnants of impulsive shopping (retail remorse, if you will), cleverly managing spending in ways that are neither stingy nor wasteful will present an abundant opportunity pool in 2025.

Rather than "anti-new," think "less ostentatious." AI will be instrumental due to its capacity for "techno compassion" – preventing poor choices at the brink – and the allure of the self-quantified (greater self-awareness). Apps like Restyle, which aids in styling existing clothes and suggests individual additions, not entire new outfits; Open Wardrobe, which discloses garments' estimated cost per use; and fintech app Parthean, which analyzes receipt data to flag follow-up offers and custom-create goal-setting programs, will become increasingly popular.

Supermarket giants like Tesco are emphasizing the "nudge factor" to secure long-term customer loyalty, incorporating AI to alert customers to their own recurring money-draining habitats.

Additionally, anticipate the rise of "strategic indulgence," previously known as Asset Culture Commerce, focusing on purchasing items for rent, resale, and trade – sometimes simultaneously. See By Rotation, a social network enabling fashion lending and buying, whose founder Eshita Kabra-Davies noted an increase in individuals "repeat-renting an item, then listing it themselves, which means they eventually buy it. It's strategic consumption."

1: Underconsumption & Strategic Spending

Let go of preconceptions associated with underconsumption being an overblown TikTok trend #9817671. Owing to ongoing economic uncertainties, fears of planet-destroying overproduction, and the unpleasant aftermath of unregulated impulse buying (retail regret, if you will), skillfully paring back spending without coming across as cheap will be a lucrative niche in 2025.

Instead of "anti-new," lean towards "less obnoxious." AI's ability to promote "techno benevolence" – obstructing poor decisions just as they're about to be made – and the captivating allure of the self-quantified (enhanced self-awareness) will be key. Apps like Restyle, which advises on styling existing clothes and suggests individual additions, not entire new outfits; Open Wardrobe, which discloses garments' estimated cost per wear; and fintech app newbie Parthean, which processes receipt information to flag follow-up brand offers and create custom goal-setting programs, will become increasingly popular.

Well-known supermarkets like Tesco are now embracing the "nudge factor" to secure long-term loyalty, utilizing AI to alert customers to their own recurring money-wasting habits.

Additionally, anticipate the emergence of "strategic indulgence," previously known as Asset Culture Commerce, focusing on purchasing items for rent, resale, and trade – sometimes simultaneously. See By Rotation, a social network for lending and buying fashion, whose founder & CEO Eshita Kabra-Davies revealed an upsurge in individuals "repeat-renting an item, then listing it themselves, which means they eventually buy it. It's strategic consumption."

2: Synthetic Companions

Globally, the public sentiment towards AI – intrusive, helpful, or the apocalypse of humanity – fluctuates. However, new figures point to growing flirtation: 53% of people worldwide now believe AI will help companies better cater to consumers. In 2025, it will foster closer human-synthetic collaborations, a more intimate world of "servicescapes," and challenge conventional brand authenticity notions.

Chatbots will advance with the aid of ultra-naturalized language tools – Virgin Money's Redi, for example, has seen success from monthly lessons in regional dialects and peculiar colloquialisms but also anticipate increased acceptance of permanent "shadow" companions – from pocket tutors like Soul Machines, to the embodied avatars of AI gaming engine InworldAI, whose long-term memory features allow characters to bond with users, or clients, across multiple sessions. Rumor has it that at least one prominent UK ecommerce company is currently exploring this "persistent interface."

Multimodal XR AI agents (audio, visual, text in and out) embedded into devices such as phones, headsets, and smart glasses capable of scanning our immediate environment and connecting to our personal data will become more deeply rooted in 2025, thanks to aesthetically pleasing form factors (see Meta's collaboration with Ray-Ban) and efforts to better serve individuals with disabilities.

Online, authenticity has lost its luster; a lack of conventional "realness" is no longer a deal-breaker when it comes to meaningful connections. Expect a clash of realities as younger internet users lean into a life that coexists with semi-autonomous synthetic influencers – from fully licensed pop star clones (see AI FKA Twigs) to the backstory-bearing avatars of Instagram-style AI networks like Butterflies, who generate content and engage in online conversation with both synthetic and human peers through varying degrees of human guidance. The brand philosophy? Emphasize convincing-but-transparent artifice.

The persistence of childlike behaviors and tribute to extravagant absurdity is a prominent group within this trend (over 85% of consumers worldwide are interested in incorporating more playtime into their lives), thus leading to the emergence of playable brand destinations, such as Selfridges Sportopia and Vans' skate-focused store in London. Furthermore, adult play areas have also surfaced, like Ballie Ballerson, and artist CJ Hendry's 50-meter inflatable swimming pool in Nevada's desert for additional fun.

Remember, nostalgic and kitsch themes (the popularity of cluttered and eye-catching holiday campaigns in 2024 was a tribute to this desire for affordable, albeit sometimes blindingly tacky excess) serve as a soothing balm (the yearning for the 'unplugged' era has never been stronger). However, the focus should be on creating a sense of presence – helping individuals perceive themselves as the central figures in the action (lively, watchful, educated, undistracted) to increase the depth of the temporary escape.

For further reading, see the new book The Bright Side by Sumit Paul-Choudhury, who, according to speechwriter and To Sell is Human author Dan Pink, transformed optimism from a sentimental notion into a practical advantage.

4: Speedy Branding with a Sound

Previously neglected auditory-centered concepts, often referred to as sonic branding, will also record significant victories in 2025 – capturing audiences through emotions and providing refuge from the hazards of monotony (84% of consumers worldwide claim they purchase from brands with which they share an emotional bond, and 63% demand increased multisensory experiences from brands).

This trend is already recognized in the 'emotional engineering' of 'scenographic' store concepts and activations from influential brands aiming to shed the corporate image – such as Gucci's Gucci Cosmos, which is amplified via an interactive audio guide and additional content. Also, immersion rooms are gaining popularity – see the Bentley Cube in Seoul, which uses sound to recreate the luxurious feeling of riding in a Bentley.

Furthermore, new royalty-free AI music creation tools like Mubert and Epidemic Sound are enabling brands and creators to customize their online soundtracks, catering to their unique emotions. Additionally, 'audio landscaping' experts like Treble are enhancing the authenticity of virtual worlds through sound design.

Products and packaging will serve as portals to ongoing content programmes – see Balenciaga's early adoption of a digital product passport (DPP) to unlock music, or items tailored to enhance mood or cognitive health in response to the growing cognitive economy.

5: Empowerment Through Resilience

Resilience messaging was prevalent post-pandemic as a means of rebuilding but expect success from concepts and tools that promote resilience in an optimistic yet practical manner in various domains such as wellness, climate change, and cybersecurity in 2025.

Functional fragrance brand Øthers recently launched a subscription-based, scent and sound synchronizing 'resilience platform' where users select a scent and the corresponding soundtrack to suit their emotional needs, promising improved cognitive performance and mood regulation. Additionally, skincare brand Pour Moi's e-commerce site includes an interactive map detailing regional climate-resilient solutions in real-time, while real-estate marketplace Zillow has integrated data from First Street, which offers climate risk financial modeling, in all its US listings.

In telecommunications, the fight against cybercrime is becoming increasingly ingenious – see O2's AI grandma (Daisy), trained in partnership with software engineer Jim Browning. Her objective is to irritate phone scammers into exhaustion through her babbling, drawn-out conversations.

Anticipate victories in 2025 from technological and physical spaces that foster communal connections, aligning with section #3 (Joy Divisions).

Counteracting AI-driven retail's potential to foster extreme individualism (if advanced AI equals personalized shopping on a massive scale, it also results in an 'filter bubble' on steroids) consider apps like Walmart's Shop with Friends feature (AI-powered AR) for sharing virtually tried-on outfits across social platforms or emails or J.Crew's Virtual Closet app for the Apple Vision Pro XR headset, which allows in-world group video chats with friends. While augmented reality headsets themselves may be a temporary trend, collaborative e-commerce holds long-term potential. Networked, see AI-assisted US travel planning app Pilot (slogan: "Plan your trip with your squad") that seamlessly integrates with the delight of collaborative and creative organization.

Additionally, the metaverse is expected to provide retailtainment boosts for brands, as in 2025 look out for Netflix's virtual playground, Nextworld, including The Streamship, a digital screening area where users can join watch parties, and ‘Fan Pods’ – private social spaces within the gamified environment where gamers can interact with friends. Through a partnership with Shopify, brands and creators will soon have the ability to sell physical goods through the platform.

In real-life scenarios, fresh drop-in or customization cultures serves as essential youth-centric hangouts, such as Casetify in Seoul and Rebel in Melbourne. These spaces not only cater to new trends but also magnify the increase in fanbases, delivering oversized fan encounters like Netflix House – the streamer's permanent mall-based theme parks and branded experiences set to launch this year.

7: Leveraging Brand Myth, Lore, and ‘Nerd Hubs’

Brand legacy perceptions are complex and contentious: historical clout as a powerful charm or outdated tales tainted with irrelevance? Significantly, 49% of Gen Z worldwide advocate for luxury brands to shift towards a more forward-thinking focus. In an era of perceived monotony, fueled notably in fashion by a merry-go-round of creative directors, tapping into the core narrative threads and fandom-loved lore of brands will generate both the desired spectacle and sense of belonging audiences crave. Fan clubs function as ersatz families, especially for the digitally active, yearning for a consistent supply of storylines to dissect and gossip upon.

For example, McDonald's commended 2024 WcDonald's campaign illustrates how successfully catering to this appetite involves transforming a 30-market brand for a temporary period, which includes revamping food packaging, stores, and mini-films that celebrate homage to anime fans' long-standing association with its McDonald's imitations.

Archives – gateways to allure and undiscovered wisdom – will remain captivating: perfumer Ffern releases periodic single-edition ‘drops’ for its clients on its private ledger, though never available again, can be revisited in the London store's archive room; H&M has enlisted ex-British Vogue's editor Kate Phelan to "curate and recontextualize" eight drops from its Pre-Loved archive – an exclusive edit of several hundred pre-loved pieces from the first 20 years of designer collection collaborations; while fashion designer Norma Kamali has pioneered a new era of succession planning – witness her collaboration with creative agency Maison Meta on an AI copilot, trained on her 40-year archive, to immortalize her creative philosophy within all future brand design logic.

AI is already proving an effective alchemist in reshaping mythology for contemporary audiences. Observe Florida's (Salvador) Dali Museum's Ask Dalí feature, which enables visitors to interact with an 'AI Dalí' via an on-site telephone – a concept that can be adopted by any brand icon, figurehead, or even spokesperson.

8: Activism Rejuvenated: Kits for Divisive Times

Politics pose a challenging space for brands to engage in – according to Havas Media Network's Year of the Elections survey 2024, more people (41%) claim that brands should steer clear of politics than endorse involvement (28%) – however, turbulent and polarizing times will demand brands showcasing their resilience and versatility beyond mere commodity production. Discussions of politics can be reimagined as everyday activism infused with recognition, self-preservation, and enlightened intellectual direction.

Embodying America's prevailing national anxiety (55% share feelings of chronic anger about politics and social injustice), check out footwear brand Miista's NY Rage Room – a staging of the epitome of a disheartening office to which, after a filmed performance piece, fans could unapologetically destroy.

Leaning towards less theatrical, explore the surge in bibliophilic brand concepts. Emulating the empathy-curated ("male gaze-evading") women-only sanctuaries that are escalating in Chinese cities, observe fragrance brand To Summers' bookshop-themed Shanghai pop-up inspired by Virginia's 1929 feminist essay, A Room of One's Own. The project included launching Nosepaper – a poetry anthology of women writers. For further biblio-brand suggestions, see beauty labels Lush and Aesop (Aesop for its LGBTQ+ library), and scent labels Documents and Le Labo.

Instead of seeking controversy, it's about directing resources. Consider Headspace's release of a Politics Without Panic toolkit and survival guides for navigating confrontational conversations without inadvertently alienating a relative.

9: The Rest of the Crop...

As a New Year's bonus-ball, here's a mixed bag of other key sectors to monitor/explore.

Anticipate/provide subtler, more nuanced marketing perspectives surrounding motherhood – learn from Burger King's 2024 'Foodfilment' campaign, which created a buzz by portraying authentic and unstaged British mothers indulging in a cheeseburger immediately postpartum, sparking reactions spanning appreciation of an honest brand approach to outright boycott appeals due to promoting unhealthy maternal eating habits.

2024 is set to be a significant year for women's sports (the soccer Euros will be a major summer draw), offering another major growth opportunity in an under-tapped market – fulfilled through retail, gaming, and marketing collaborations that provide a brighter future imagery, showcasing ambition, resilience, and entertainment, rather than perpetuating worn-out narratives of adversity.

Lastly, rebranding 'retirement' as traditional life-stage milestones lose relevance. Treat age-appropriateness as a relic.

In the realm of retail, the concept of resilience will shift from mere recovery to proactive growth and adaptation, creating opportunities for brands that can effectively communicate this narrative.
Brandtech companies will leverage AI's ability to promote "techno compassion" and "techno benevolence," helping consumers avoid poor decisions and promoting strategic spending.
As the line between physical and digital shopping continues to blur, fandoms and activism will play a significant role in shaping retailtainment and driving consumer loyalty. Brands will need to tap into their core narratives and fandom-loved lore to create engaging experiences.
In a world that coexists with semi-autonomous synthetic influencers, brands will need to strike a balance between convincing-but-transparent artifice and emotional authenticity to build trust and foster connections with their audience.
The rise of strategic indulgence and asset culture commerce will require brands to adapt their offerings to match consumer preferences for renting, reselling, and trading items. This will present both challenges and opportunities for innovative retailinnovation.