The concept of business trends has always been around, whether it’s what the latest fashion brand is, or even the most popular phone of the moment. But it’s not just about the social aspect - trends can exist anywhere, even in industries, and in order to stay relevant in the market, you need be aware of them.
What are industry trends and why are they important?
An industry trend is a repeated pattern or shift in an industry, which can be driven by changes in technology, the economy, or just consumer behaviour. These changes then influence business strategies and market changes, as businesses need to analyse these trends to ensure that they stay competitive in the market and don’t fall behind.
Business trends can start with just a few companies, and if successful, you will often find that the rest of the businesses in the industry will follow. In this case, there are industry leaders, who are often larger companies with more resources (meaning that they are able to take more risks), and there are also followers in the industry, which are companies that adjust their strategies, depending on whether the leaders are successful. In most cases, these industry trends are simply reactions to these economic or technology changes.
If you are thinking about starting a company, or maybe you already are a director of one, you need to constantly be aware of industry trends and market changes. Understanding these business trends can allow businesses to anticipate future market conditions, identify opportunities, and adapt their strategies to meet changing consumer needs. To stay ahead of your competitors and ensure future growth in your company, you must stay ahead of these trends.
You might be thinking – how do I actually stay ahead of the industry trends? Well, businesses use many different methods to track these trends, which can involve analysing your sales and profits, checking through any customer feedback you receive (and also encouraging it), or just checking for any economic indicators, such as checking for inflation which can impact consumer behaviour. You need to track this data and attempt to identify any patterns in your business.
Trending in Tech:
The technology industry places such a huge part in any business – whether you are in that market or not. So, let’s dive in to what’s trending now.
Artificial Intelligence and Automation:
This is a term that you might have heard so much about, especially in the last few years, but let’s take a look at what it is and how it is impacting businesses today. Artificial intelligence is a field of computer science where machines, or robots, are specifically programmed using code, to perform a range of tasks that normally require humans. One of the most common uses of AI in industries is the automation of a wide range of tasks, whether it’s in the operations, customer service, or even HR departments. For example, a lot of businesses use an Applicant Tracking System, or ATS, to scan applicant’s CVs for specific key words, so that only a filtered group of candidates actually make it through the hiring manager. Another example is the use of AI powered chatbots which can provide 24/7 support to customers, even outside of business hours, and often have the ability to deal with lower-level tasks, ensuring that the operatives are free to deal with any larger problems. While this can seem good, there are also some downsides, as it can often lack that personal touch – but we’ll get into this more later.
Cybersecurity:
Over the years, we’ve seen a trend towards businesses relying on digital systems, as this can allow them to store a larger amount of data, improve efficiency, and more – but doing so can also increase the risk of a cyber-attack, which is where cybersecurity systems come into play. Enhancing cyber security systems, as well as addressing privacy concerns for your staff and customers, is critical - as breaches of data will not only cause your customers to lose trust in you, but it can also take days, weeks, or even months, to get operations back on the ground, depending on how large the attack was. Some common ways to increase your company’s cybersecurity is to use strong passwords (and never repeat them across different log ins), using multi-factor authentications when logging in, keeping any software that you use up to date, backing up important data, and also being cautious of any suspicious activity which could be phishing attempts (such as scam emails). The cybersecurity trend spiked greatly earlier this year, when we saw large corporations such as Marks & Spencer’s, fall under large attacks.
Sustainability Trends:
Environmental Responsibility:
Over the past decade, businesses have been feeling the constant growing pressure to switch to more sustainable methods, whether it is about consumption, supplier choices, or materials. This is due to the increasing trend towards becoming environmentally responsible and making sustainable choices, not only as a business, but as an individual as well.
Some ways that we see businesses switching is through their supplier choices. It is so crucial to choose sustainably sourced materials for the products and services that you offer, which you can do by creating partnerships with suppliers that actively demonstrate their good environmental practices. We saw this a lot in 2021 as there were a lot of clothing lines branded as being ‘kind to the environment’ that were released by companies, such as H&M. They advertised that the cotton that was sourced for the clothing was organic and sustainably sourced. A lot of companies also created new pages within their websites where consumers could see the process of the product creation – from the sourcing of materials, to labour, to transport methods. Being more transparent with where your products have come from and how they were made was a key way for companies to demonstrate their environmental responsibility.
Consumer Demand:
Not only do businesses want to stay sustainable due to their own ethics, but also as a business you need to follow the trends of the consumer behaviour, as we saw with the introduction of new sustainable clothing ranges. Recently, consumer demands have shifted significantly due to the growing awareness of environmental issues, such as climate change, pollution, limited natural resources, and more, which has increased as a consequence of these trends being present in the media and news as well. People are looking for products that are branded as sustainable or ethically sourced, and even packaging that is eco-friendly. Companies need to ensure that they follow the trends of the consumer behaviour, as if they are not making more sustainable choices and not being transparent about their supply chain, and other practices, then customers mayll look to spend their money elsewhere.
Trends for Business Strategy:
Ecommerce Growth:
The switch to ecommerce took a huge turn around 2020, during the pandemic, as physical stores were forced to close down, meaning the main way for many businesses to operate was through online retail. Ecommerce covers a large array of products and services which are advertised online, and the payment is taken through electronic means, rather than in a physical location. If businesses wanted to succeed, they had to quickly shift their operations to move online, otherwise they would have to rely on word of mouth, or existing customers who already knew the products and could reach out if they needed anything. Not only was this important during Covid (as there were no ways of going ‘in store’), but having an online store is also just a useful business tool to have if you want to grow your business and expand to other areas, without the extra costs of rent or overheads from physical stores.
Improving Customer Experience:
In a world where AI is growing, people still crave that personal touch and human interaction when buying products or interacting with the company’s staff. Often times, when heading to a business’ website to try and find a contact number, you are welcomed by an AI chatbot instead. If you are dealing with a more complex problem, it can take ages to find a solution using the automated chat function, and after all that, you sometimes have to be passed through to an operative anyway! At Easy Digital, we make sure that doesn’t happen to you! We pride ourselves on our customer support, and all of the people that you talk to, whether over the phone, on our chats, or even our emails, are all responded to by real humans – our great support team!
Remote and Hybrid Working:
Another popular business trend we’ve seen is an increasing shift toward remote and hybrid working models in recent years, as a way to adapt to the economic environment and technological advancements. Remote working was especially accelerated by the pandemic as well, since offices were forced to close down and companies had to find ways to support their employees working from home. Even after Covid, we have seen this business trend stay, and instead move towards a more hybrid working environment, with a few days in the office and the rest from home. This is in part due to employees preferring the flexibility of hybrid working and reduced commuting time, which helps improve their work-life balance and productivity during work hours, but also due to employers realising the benefits of hybrid working, such as smaller offices leading to less overhead costs, and the ability to hire employees in places outside of their normal scope. The move towards hybrid and remote working is no longer a temporary solution to a changing environment, but is now a staple in how businesses operate and attract employees, as companies continue to invest in digital tools, cloud-based systems, and cybersecurity tools, such as VPNs.
These are just a few of the business trends that we have seen dominate the industry, but it is always important to stay up to date with them to ensure your business keep up with competitors and consumers!
