The business landscape is constantly evolving. Yet, few forces have proven as disruptive and transformative as Generative AI (GenAI). Far from being a fleeting trend, GenAI is rapidly becoming the “secret sauce” that binds consumers and brands. This drives hyper-personalised experiences and unlocks unprecedented opportunities for value creation (Bremner, 2025). For businesses seeking to extract greater value from their target markets, understanding how GenAI aligns with prevailing megatrends is an imperative (Bremner, 2025).

At the heart of this transformation lies the “Experience More” megatrend. It represents a decisive shift, as identified by Euromonitor International. It is forecasted to generate a staggering USD 888 billion by 2033. Consumers increasingly prioritise experiences over material possessions. They seek multi-sensory, interactive, and personally curated moments that resonate with their values. GenAI is not merely augmenting this trend; it is revitalising it. It weaves digital, personalised, and seamless interactions into the fabric of our physical world (Bremner, 2025).

Let us explore how GenAI and linked megatrends are fundamentally reshaping target markets. They are empowering a new era of value proposition design.

Megatrend ‘Experience More’ Spotlight

The megatrend of ‘Experience More’ with the rise of hyper-personalisation is driving a decisive customer shift.

The megatrend is built on three pillars: ‘Living It’ (multi-sensory, interactive), ‘Enhanced Product’ (immersive, improved performance), and ‘Lasting Engagement’ (curated memories, community, always-on). GenAI provides the ‘technological muscle’ to deliver on all fronts. It catapults personalisation into hyperdrive (Bremner, 2025).

Consider the data: Euromonitor’s Voice of the Consumer: Travel Survey (Feb-March 2024) reveals that 78% of consumers still value real-world experiences. The data was reinforced by the desire for personalised experiences, increasing by almost four percentage points from 2023/2024 to 63%. This jump is not just a preference; it is an expectation.

How GenAI Reshapes Target Markets

Granular Segmentation: GenAI’s advanced data analytics and machine learning capabilities enable the identification of highly niche consumer segments. They are based on real-time behaviours, preferences, and even emotional cues derived from natural language processing. Niche segments go far beyond traditional demographics. This enables businesses to understand who their consumers truly are and what they genuinely desire.

Predictive Needs Anticipation: By analysing vast datasets, GenAI can predict future consumer needs and trends. This allows brands to design value propositions that anticipate demand proactively, rather than merely reacting to it.

Identifying “AI Natives”: The emergence of “Gen Beta” (born 2025-2039), who will be the first generation to grow up with AI, fundamentally redefines future target markets. These “Artificials” will have heightened expectations for AI-first products and services, making an “AI-ready” approach non-negotiable for long-term relevance.

Value Proposition Design with GenAI

“Experience-First” Focus: Value propositions shift from product features to the overall experience. GenAI helps craft propositions that promise immersive, tailor-made journeys, whether it is trip planning, shopping, or learning.

Dynamic Customisation: Instead of static value propositions, GenAI enables dynamic customisation at scale. Imagine a product that learns about individual preferences and adapts its features accordingly. Or an online service that evolves in response to personal usage patterns. It offers a continually optimised experience.

Elevating the Digital and Physical Customer Experience

Beyond the digital is a connection with the physical environment that is impacting retail propositions (Phygital & Retailtainment).

Despite increasing digitalisation, consumers, especially Millennials, who are parents to Gen Alpha and the upcoming Gen Beta, still crave real-world connection and joy. GenAI serves as the “glue” that binds digital and physical worlds, creating seamless “phygital” experiences that deliver the best of both (Bremner, 2025).

H&M’s Future Store: Targeting Gen Z, H&M worked with Outform Group to create an immersive, personalised retail experience in Barcelona. It features AI-powered social fitting rooms and digital mannequins. This experience blends the physical act of shopping with digital convenience and social interaction (Bremner, 2025).

The Shoe Mirror: DEPT Agency’s innovative advertising billboard allows passers-by to virtually “try on” shoes using AR and GenAI. In doing so, customers can then make a seamless purchase via a QR code. This experience demonstrates how GenAI extends immersive experiences beyond the store. It boosts direct-to-consumer (D2C) sales (Bremner, 2025).

How GenAI Reshapes Target Markets

“Always On” Engagement: GenAI caters to the “always on” consumer, offering assistance and engagement points across every touchpoint, from social media to smart mirrors.

Contextual Relevance: By understanding real-time context, such as location, time, and past behaviour, GenAI delivers hyper-relevant experiences. This captures attention in an increasingly noisy world.

Value Proposition Design with GenAI

Seamless Omnichannel Journeys: Value propositions can promise unparalleled ease and consistency across all channels, driven by GenAI’s ability to orchestrate complex customer journeys.

Interactive Discovery: GenAI-powered interfaces, such as chatbots or AR, become part of the value proposition. They offer interactive and engaging ways for consumers to discover and interact with products before making a purchase.

Redefining Product Engagement

From the product concept to consumption, AI is having a significant impact on timelines.

GenAI is an invaluable tool in new product development (NPD) and innovation, dramatically shortening timelines and enabling “Product 2.0” – offerings with improved performance and deeper alignment with consumer values.

Euromonitor’s Voice of the Industry Survey (Sept 2024) shows that companies are prioritising consumer values alignment (38%) and creating and improving product experiences (31%). They also focus on increasing technology solutions, such as the use of AI/AR/VR (31%). GenAI bridges all three (Bremner, 2025).

Oceané’s Virtual Try-On: The Brazilian beauty brand partnered with Banuba’s TINT AR platform for a digitalised try-on experience. It matches skin complexion to product shades with hyper-personalisation. The result? A sixfold boost in sales-to-cart (Bremner, 2025).

Coca-Cola’s Flavour Innovation: GenAI helps Coca-Cola aggregate vast amounts of unstructured consumer feedback. It inspires new flavours like Y3,000 and renovations. This keeps heritage brands relevant for Generations Z, Alpha, and Beta (Bremner, 2025).

How GenAI Reshapes Target Markets

Co-Creation Opportunities: GenAI facilitates “co-creation” with passionate consumer communities, making them an integral part of the product development process, which strengthens loyalty and market fit.

Value-Aligned Audiences: By identifying shared values and passions, GenAI enables brands to target consumers effectively. These consumers will resonate deeply with ethically sourced, sustainable, or community-focused propositions.

Value Proposition Design with GenAI

“Guaranteed Fit” Propositions: For products such as beauty or apparel, GenAI-powered virtual try-ons or recommendation engines enable brands to offer a “guaranteed fit” or an optimal match. This reduces returns and increases customer satisfaction.

Purpose-Driven Innovation: GenAI can uncover consumer desires for purpose-driven products, allowing value propositions to highlight positive impact and alignment with ethical stances.

Forging Lasting Engagement

AI is creating opportunities for communities to form and build brand loyalty.

GenAI creates new brand moments that foster lasting memories and cultivate vibrant communities based on shared interests. It injects fresh impetus into marketing, loyalty programs, and hybrid events.

Gymshark’s #GymsharkNation: This D2C sports apparel company leverages Google and GenAI to boost customer engagement. They increase personalisation, nurturing their 18 million social media fans into a passionate community (Bremner, 2025).

Delta Airlines’ AI Concierge: The airline’s AI-powered concierge engages with loyalty app customers in real-time. It provides personalised and seamless experiences. Their multi-modal partnership with Uber and EV Joby demonstrates a next-generation approach. This results in contextualised loyalty across the customer journey (Bremner, 2025).

AI Agents in Travel: OpenAI’s “Operator” agent, Google, and Claude are developing agents that can browse, plan, and purchase on behalf of consumers. Euromonitor’s survey indicates that 30% of businesses have already integrated GenAI into travel planning. Moreover, 43% expect an impact within the next year (Bremner, 2025).

How GenAI Reshapes Target Markets

Community-Centric Targeting: Beyond individual consumers, GenAI helps identify and cultivate entire communities with shared interests, turning them into advocates and co-creators.

Loyalty-Driven Segmentation: GenAI allows for the creation of highly personalised loyalty programs and offerings. They target segments most likely to respond to specific incentives and experiences.

Value Proposition Design with GenAI

Membership & Community Access: Value propositions can highlight exclusive access to GenAI-powered communities, events, or content, fostering a sense of belonging.

Effortless Loyalty & Rewards: AI agents and personalised concierges become part of the value proposition, promising seamless rewards redemption and proactive service that simplifies and enhances the customer’s journey.

Navigating AI

Preparing for Gen Beta and A-Commerce is crucial for sustaining a business proposition.

The future is undeniably “AI-first” for future generations. Gen Beta will be born into a hyper-connected, personalised, and seamless world. Here, phygital is the default. Businesses must be “AI-ready” now to ensure long-term relevance.

A-Commerce: The next battleground after e-commerce and m-commerce. AI agents will increasingly handle tasks like flight bookings and shopping, fundamentally changing how consumers interact with brands.

Democratisation of GenAI: Players like DeepSeek are dramatically reducing technology costs. Nvidia, as announced at CES 2025, is building and sharing open-source AI models. These are intended for autonomous vehicles and humanoids. This connection accelerates mainstream adoption and lowers barriers to entry for smaller businesses (Bremner, 2025).

How GenAI Reshapes Target Markets

AI-Driven Decision Makers: Target markets will increasingly consist of consumers who rely on their personal AI agents to make purchasing decisions, shifting the focus from directly persuading humans to influencing their AI proxies.

Trust and Responsible AI: As AI becomes increasingly pervasive, target markets will demand transparency, security, and consideration of ethical implications. Brands that champion responsible AI will gain a significant competitive edge.

Value Proposition Design with GenAI

“Agent-Friendly” Propositions: Value propositions must be designed not just for humans, but for AI agents. It needs to emphasise clear benefits, data integrity, and seamless integration with AI-powered platforms.

Ethical AI Assurance: For the growing segment of AI-conscious consumers, a value proposition that includes a commitment to responsible, unbiased, and transparent AI practices will be a powerful differentiator.

The GenAI Era

AI is driving a new horizon for value proposition design.

GenAI is not just an efficient tool; it is a strategic enabler for discovering and delivering unprecedented value. By deep linking into megatrends like “Experience More,” businesses can:

1. Uncover Latent Needs: GenAI analyses vast, unstructured data to reveal desires consumers may not even be aware of, enabling the design of truly innovative value propositions.
2. Accelerate Iteration: From ideation to market testing, GenAI drastically speeds up the process of refining and optimising value propositions, ensuring they remain relevant in a rapidly changing market.
3. Deliver Hyper-Personalised Solutions: GenAI enables the creation of value propositions that are not only segment-specific but also individually tailored, making each consumer feel uniquely understood and valued.
4. Foster Deeper Engagement: By facilitating rich, interactive experiences and nurturing communities, GenAI transforms transactional relationships into lasting emotional connections.

Conclusion

As Caroline Bremner, Senior Head of Travel Research at Euromonitor International (2025), aptly puts it: “GenAI is the ‘secret sauce’ that binds consumers and brands in a hyper-personalised and connected relationship. It benefits from a self-reinforcing feedback loop. The technology brings fresh, new impetus to brand innovation, NPD and creativity so that consumers can Experience More on their own terms.”

The future of value creation belongs to those who embrace GenAI, not as an end in itself, but as a powerful means to understand, engage, and delight their target markets in ways previously unimaginable. Throughout, we have upheld the vital principles of responsible and ethical innovation. The challenge, and the immense opportunity, lies in harnessing this power. Industries can continually redefine what “value” truly means in an AI-first world.

Reference:

Bremner C (2025). ‘Megatrends: Experience More with GenAI for Value Creation’, March 2025, Passport, Euromonitor International