In order for a business to remain competitive in a rapidly changing market, it is important to stay aware of current trends: to monitor and analyze trends that can affect the company's development. This process is called trendwatching.
Why is it necessary to follow trends? How can it be done correctly? What directions should be used in online business and marketing to increase sales?
We will attempt to consistently answer these questions.
What is Trendwatching, and Why Do We Need It?
Trendwatching is the observation, analysis, and interpretation of existing, new, and future trends across various fields.
A trend is a general direction in the development or change of something over a certain period of time. Sometimes a trend comes and goes, but it may also turn into a lasting movement.
A trend is a linear trajectory of change. It is a solid tendency for something to rise, fall, or stabilize. Usually, a trend becomes popular and remains so for a significant period.
The goal of trendwatching is to identify and understand which changes and innovations will affect consumer behavior, market conditions, and business strategy. This practice allows companies and specialists to stay one step ahead of competitors, anticipate customer requirements, and adapt to changing market conditions.
Advantages and Disadvantages of Trendwatching
Like any other field, trendwatching has its pros and cons. By assessing them, companies can use the results of observations more effectively and minimize risks.
Advantages:
● Access to current information
● Gaining a competitive advantage
● Ability to make informed decisions
● Identifying opportunities
Disadvantages:
● Uncertainty and potential risks
● Lack of information
● Difficulty in establishing long-term predictions
Trendwatching Levels
Trendwatching includes three main levels of trend analysis: microtrends, macrotrends, and megatrends. Each covers a different scale and time horizon, with its own specific characteristics.
Microtrends
Microtrends are short-term, localized changes that occur over months or years. They may involve specific groups of people, particular markets, or niche segments.
Examples of microtrends:
● Fashion: The popularity of a particular style of clothing or accessories during one season
● Technology: The introduction of new functions in smartphones or the launch of a new popular social network
● Consumer behavior: A temporary increase in demand for certain products (e.g., organic foods or superfoods)
Macrotrends
Macrotrends involve broader and longer-term changes, lasting several years or decades. These trends affect entire industries or large groups of people, often combining various microtrends.
Examples of macrotrends:
● In the economy: The growth of the e-commerce industry and the transition to digital sales
● In technology: The widespread adoption of AI and automation in various fields
● Social changes: An increase in the number of employed women
Megatrends
Megatrends are global, long-term changes lasting for decades. They greatly influence all aspects of life and society, shaping the development of entire regions or the global community.
Examples of megatrends:
● Demographic changes: Population aging in developed countries and population growth in developing countries
● Climate change: Global warming and its impact on ecosystems, economies, and people's lives
● Globalization: The deepening of economic, cultural, and technological integration between countries and regions
Each level of trendwatching plays a crucial role in strategic planning and forecasting. Microtrends can show early signs of significant changes, macrotrends help businesses understand long-term development directions, and megatrends define global shifts that businesses must adapt to.
Trendwatching Tools
For effective trendwatching, different approaches and tools can be used to track, analyze, and predict current and future trends, such as:
● Social media analysis
● News and media monitoring
● Research and expert opinions
● Competitor analysis
● Participation in relevant events
● Online surveys
Using a combination of these methods provides a more comprehensive and accurate picture of future trends, helping businesses plan more effectively and make better decisions.
Using Trendwatching in Marketing
Trendwatching is a powerful tool in marketing. It allows companies to identify new opportunities, adapt to changes, and stay ahead of competitors. Here are some ways trendwatching can be applied in marketing:
● Analysis of customer needs
● Development of new products or services
● Market segmentation
● Adaptation of marketing campaigns
● Optimization of communication channels
● Competitor analysis
● Forecasting and planning
What to Consider When Using Trendwatching?
● Distinguishing long-term trends from temporary ones: A common mistake is perceiving hype as an uptrend. Often, this is a temporary phenomenon that will pass. To distinguish between a trend and a hype, it’s important to assess how well the trend meets consumers' basic needs. In such cases, Maslow's hierarchy of needs can be helpful.
● Combining trend observation with analytics: When a trend is identified, it is not necessary to implement it immediately. It’s better to study the results of those already using the trend. It’s also helpful to analyze startups emerging in this direction and examine how they are developing. Studying the trend’s development in different countries is crucial. If analysis shows growth, then it’s worth moving forward with implementation.
● Considering cultural differences: Care should be taken when introducing trends from different cultural societies. What is popular in one culture may not be in another.
● Testing trends with a clear understanding of the desired result: Before introducing a trend in test mode, formulate a clear hypothesis. Understand what results you want to achieve. Having clear metrics will help assess whether the hypothesis was successful.
Conclusion
Observing trends helps companies meet customer needs and demands. Knowledge of trends is also useful for personal career development and planning individual professional activities. If you know how to use trendwatching effectively in your business, you will stay on the right track toward achieving your goals.