As a race, we have given in to our weakness in predicting future trends. 2020 was the future everyone looked forward to. We are in the future now, and we can say with great certainty what business trends will take this year by storm. Here are five business trends you can’t ignore.
1. Changing the definition of growth
For the last several decades, any business that wanted to thrive believed that they had to fix their attention on financial growth. Indeed, that was exactly what was needed to stay profitable and successful at the time. But the face of business has changed in terms of how business is conducted and what customers and clients expect from that business.
Today consumers challenge organizations to define their success in new ways and not simply by their financial growth. Investors, consumers, and even employees are pressurizing organizations to take a more responsible step toward helping societal change values and do their part to combat climate change and protect finite natural resources. Businesses are also expected to do their part to decrease economic and political instability.
New success metrics have therefore been created, and new economic models have evolved that now force companies to work very differently, more responsibly, and with imagination. All shareholders will demand an increase in better environmental, corporate, and social governance, and we will see a trend of organizations upskilling staff at various levels. This is a positive change to redefine growth in ways that improve not only lives but also our world.
2. Catering to the needs of younger generations
The youth population is on the rise. The older generation is now paving the way for their younger counterparts – the x, y, and z generations that now make up a major chunk of the consumer market. The one thing that these three generations have in common is their dependence on digitalization. In order for a business to stay competitive and ahead of the competition, it must be willing to reach out to consumers via a digital platform that offers a safe method of digital transactions, security, and banking requirements.
Social media continues to reach new heights in terms of the number of users, the amount and type of information that is shared via social media challenges.
These are generations that also reassess the lives they lead, with the kind of work they do, and how they impact the world they live in. In short, consumers today define themselves as more than what they do or buy. People are now questioning what it means to be a consumer and what exists beyond consumerism, what it means to work as an employee, and if there are more ways to earn a living beyond simply working a 9-5 shift. Businesses must respond to keep up with the way people redefine the way they consume products and services. Businesses must support the evolution of these generations and support the need of consumers’ and employees’ needs to pursue deeper meaning in their daily lives.
3. Making use of the latest technology
Technology itself continues to make leaps and bounds that fuel unprecedented change. Technology is savvier than most of us even dared to dream it could be. Today it has changed the way money is exchanged, created virtual doubles, and is even rendering our bodies as a form of signature. Does this all sound scary? It does not have to be a scary thing for businesses if they realign their business fundamentals. Businesses must start working together to fuel disruption at an industry level.
The rewards that businesses will experience for being brave enough to face change will include more opportunities and challenges as they continue to transform and evolve.
4. Going green
As mentioned earlier, there is deep awareness and consciousness regarding the depletion of our planet. This has given rise to a growing trend of adopting a green lifestyle. This lifestyle goes beyond merely adopting to eat organic food.
Every industry feels the impact of the ‘going green’ movement. For example, consumers are opting for organic hygiene products; the retail industry has witnessed a surge in need for clothing made of natural fabrics and fibers; construction companies and home services providers are offering eco-friendly home options such as tankless water heaters, solar paneling, and insulated windows; grocery retailers are redesigning their business models to ensure reduction of food waste; urban restaurants and grocery stores are diving into donating leftover food to food banks and homeless shelters, office-based businesses are using environmentally-friendly approaches by taking steps to decrease the consumption of energy, and every industry on the planet is trying to reduce its carbon footprint;
5. The continued growth of eCommerce
The global eCommerce industry is expected to grow to $5 trillion, according to a report by Statista. Retailers are increasingly finding the need to move from only brick-and-mortar stores to online stores. Others continue to keep open a handful of physical locations, but also include online shopping as a way to reach out to a larger audience. They continue to improve their websites by incorporating optimized checkout features and secured payment options for the customer’s safety and convenience.
Social media is used to generate several hundreds of millions of dollars in sales every year. Forward-thinking businesses are focussing on creating state-of-art warehouses in multiple locations so they can ship out their orders in express time. With more and more specialized retailers taking their business online, there is no limit to what can be sold online.
Any business that wants to stay ahead in the game must take these five trends seriously and incorporate them in their day-to-day business. Competition is fierce, and to be seen and noticed today, a business must ensure it knows what its customers are demanding and where they are willing to spend their money. To make the right decisions for your business this year, make use of these trends – they will definitely influence the growth of your business for the next few years.
