Trends come and go. But for small businesses, the importance of keeping abreast of consumer changes always exists. If you want your small business to thrive in challenging times, grasping the pulse of emerging trends is the key to success.
2020 has brought major changes to our world. Responding to COVID-19 is difficult for everyone, and the global economy has been hit hard by the pandemic.
Some industries, such as tourism and hospitality, may be permanently paralyzed, while others have to Adapt to survive. In times of extreme uncertainty, small business owners in particular face the arduous task of competing with large companies. Generally speaking, small businesses have fewer reserves, limited cash flow, and fewer resources. Make them extremely vulnerable.
Although many communities try to encourage and support local (and smaller) companies, companies must keep up with trends if they want to keep up with the times.
Overall emerging trends
So far, 2021 is a bit like a roller coaster. The economy is still in a state of constant change, and everyone is uncertain about the future. For small business owners, this uncertainty is even more disturbing. This is why it is so important to pay attention to emerging trends.
We studied five emerging trends and what they mean for small business owners and consumers. Let us see what they are.
1. Cater to Gen Z
Generation Z (people born between 1996 and 2012) are quickly becoming the most powerful consumer group, even if some are only 9 or 10 years old.
Previous generations seem to think that Gen Z is easily distracted and lazy. But in reality, they are socially aware and know exactly what they want.In the next few years, this generation will become One of the largest consumer groups——At least in the United States.
Some companies have begun to cater more to the needs of Gen Z, but many companies are still lagging behind. This consumer group likes the Internet the most, so companies must have an online image that goes beyond the website.In addition to technology, the most important factors for Gen Z are social justice, adaptability and Real lifeWhen they live online, they also desire personalized service.
Action prompt: The first task to attract Gen Z is to be open-minded. Gen Z values honesty and integrity, and would rather shop in an ethical manner if possible.In order to attract the youngest consumer groups, business owners must be willing to Operate in an ethical and transparent manner.
2. Adaptable business model
One thing we learned in 2020 is that adaptability is valuable—even essential. From our private lives to the business world, sudden changes have forced society to abandon certain behaviors and add new ones. For many industries, this proves to be fatal because they have never encountered such strict restrictions before.The blockade has led to the closure of non-essential businesses, at least temporarily, while those that are still open Report remote work.
When it comes to reaching consumers, Companies must adapt quickly and thoroughlyNow, more than a year later, it is clear that the business has not returned to “normal” (and may never be). Many people are more cautious about going out and spending time in shops or places where they interact with strangers.
Companies that successfully survive and even thrive have turned to new ways, such as combining online and offline elements, contactless delivery, and providing services online instead of in person.
As a business owner, the challenge now is to reach your target market and assure them that you are still there. At the same time, everyone is safe and healthy. Flexibility is the goal. Once again, an open mind is the way to achieve it.
Action prompt: Business Continuity Planning (BCP) has become an essential tool Help companies survive these uncertain times. BCP helps business owners prepare for the unknown and make plans to ensure that they can survive in the face of unprecedented difficulties (such as events in the past year or so).
To develop your own BCP, it is best to get advice from professionals. But first, it is best to record a comprehensive list of assets, equipment, data systems, etc.
Over the past 18 months, hybrid shopping has also become more and more popular: online payment and in-person pickup. The form this takes depends on the product you sell. But it can be guaranteed that customers will like this service. It can also give the impression that you are willing to customize your method according to your personal preferences.
3. The growth of e-commerce
In any case, online shopping is nothing new. But in the past 18 months or so, this has become the norm. Before 2020, it is safe to say that some consumers (mainly young people) feel shopping online at home. Now, businesses without online businesses have almost no chance of survival, let alone thriving. Trying to determine the exact statistics is tricky, but it is clear that e-commerce has become a permanent fixture. Some sources estimate a 30% increase in 2020 In e-commerce.
Entering the online market is a goal that all companies must aim for. There is no room for negotiation to own an online business, but many small businesses are lagging behind in this regard. A 2020 study of small businesses in the United States found that More than one-third don’t have a website-Only a little better than the 40% recorded in 2019.
In the process of responding to COVID, small businesses have been the hardest hit. From February to April 2020, The number of active small businesses dropped by 22%. Business analyst Charlie O’Shea suggested, This destruction is not caused by the pandemic, but acceleratedIn other words, small businesses are already at a disadvantage. One of the problems is that their financial buffer against bankruptcy is very weak.
solution? Unfortunately, there is no clear answer to this, but it is obvious that you need to reach your consumers online and offline.
Action prompt: Keeping up with these economic times requires an innovative approach. People over 65 still tend to choose physical stores. But in the next few years, purchasing power will increasingly rest on people who grew up online to a certain extent.
There is no specific solution to this problem (online, offline, hybrid), but potential customers definitely prefer clarity. Your website should be easy enough to navigate for seniors. Even if you don’t have a physical business location, stating your central location (such as a city) can give people a sense of stability. Show that you are a real person, not a vague Internet presence.
4. Social Media Marketing
The development of e-commerce is closely related to the way small businesses advertise and promote their services. 2020 means that people stay at home more than usual, which means they are online more often than usual (especially those who work and study remotely). This usually means that they spend more time on social media platforms such as Facebook, Instagram, and Twitter. Approximately 3.484 billion people are already active on social media in 2019; by 2021, this number has risen to an astonishing number 4.48 billion.
These statistics show that Go online, especially on social media, Is the only way for an enterprise to reach the target market. We already know that Gen Z is quickly becoming the most powerful consumer group, and they live online more than any other group of people.
People under 30 prefer Instagram, Snapchat and TikTokAt the same time, more research shows different social media trends for different demographics-in terms of race, gender, education level, and living conditions.
Action prompt: Keep up with the frontiers of research and keep up with trends. Go online and interact with customers to understand what they like and dislike, and try to understand the importance of being available 24/7. Part of the power of social media lies in its ability to connect with people in real time.
5. Socially responsible shopping
Gen Z not only become the largest consumer group; their lifestyle is subverting the status quo. Previous generations have largely ignored issues such as global warming and large-scale social inequality. But now facing these realities, Gen Z is determined not to back down and accept the status quo.
Consumers are beginning to express their opinions on the origin of the product and how the product is manufactured and distributed. A study in April 2020 showed that 60% of survey respondents were Consciously try to “do your part” In terms of the environment and wider society. Avoid buying products that may damage the environment and choose more sustainable and ethical options.
Action prompt: It is difficult to determine a way to deal with the changing social and economic climate. But, again, business owners need to be willing to change and adapt.
You can gradually move to more environmentally friendly practices Plan strategically. Whether this means reducing printing or avoiding the use of plastic packaging, you can gradually implement your strategy.
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It is clear that the world is changing, and it may still be uncertain for some time to come. For small businesses hoping to thrive, the best preparation is flexible methods and the willingness to monitor trends and adapt.
About the Author
Nina Sharpe is the content champion of various outlets, covering a variety of business topics from startup finance to small business accounting skills.
