In the world of business, we often see industrialists and entrepreneurs trying to keep up with the ongoing changes in the market and consumer behavior.
Today, many companies are following trends that have greatly influenced how business is done, this article will outline some of them.
- The On-Demand Economy Shift.
- Implementation of Contactless Payment Options.
- Ecommerce Dominance and Social Commerce Growth.
- Remote Work on the Rise.
Let’s have a closer look on how these current trends have impacted business and how they are becoming more popular especially during the COVID pandemic.
The On-Demand Economy Shift.
Even before the pandemic had hit the world of business, people were already searching for the quickest and easiest way to get products and services, the pandemic has just intensified this trend by a lot.
This trend started in 2008 and has now become monumental.
According to research, 49% of adult consumers avoid leaving their homes. 50% of them work partially or full-time from home.
Social distancing is being maintained by 57% of adults.
Recently, markets have registered a 27% increase in non-perishable groceries and 25% in frozen foods and household cleaning supplies.
In addition, there has been a 12% increase in the sale of perishable groceries as well.
These statistics prove how powerful online purchases, or the app economy has become.
Customers had been spending most of their time shopping online, checking their social media, playing games etc. but now with everyone being forced to quarantine themselves at home it has become more imperative for them to do everything including their outdoor day-to-day activities online as well.
Consumer behavior has significantly changed as there has been a 17% increase in online spending for perishable grocery delivery, as well as 9% increase in online spending on pick-ups.
Implementation of Contactless Payment Options
To prevent the spread of COVID, the public has been made to maintain social distance.
The pandemic has not only affected us medically but also socially as everyone has come under a trauma which will probably take a very long time to put it behind us.
To prevent any further contamination, regulations are being applied to businesses, one of them is the implementation of contactless payment options.
The use of cash and credit cards has always been used to make in-store purchases, however, now with the pandemic customers are opting to pay by tapping their cards or mobile payments.
Mobile payments in the US were consistently a little below 10%, but since the health and safety of everyone started to become compromised and regulations were put on business to limit in-person contact, there has been an increase in mobile and online payments by 40%.
In China 80% of consumers pay through mobile and followed this system even before the pandemic.
The global market for contactless payment was valued at $13.2 billion in 2019, this trend is expected to increase rapidly.
Ecommerce Dominance and Social Commerce Growth
Ecommerce was performing tremendously even before COVID as US retail businesses saw a year-by- year growth in their revenue of 68% as of last year in mid-April.
The pandemic has helped in accelerating the ecommerce business.
An ecommerce fulfillment service called ShipBob, reported an increase in its games and toys shipment of 66.51% monthly.
They also reported a 64.57% month-over-month increase in their beauty product shipment and a 112.23% month-over-month increase in their fitness products.
Social Commerce has also seen an immense growth in their business during this pandemic.
Social media has become the new ground for business’s social marketing to thrive on, more and more Americans now depend on ecommerce shopping, this acts like a catalyst for these businesses.
People have increased their use of social media sites like TikTok, Facebooks, Instagram, Twitter etc. which means the more they go online the more chances there are of them checking out and buying new products and services.
Research shows that 87% of online customers believe that they can get updates on the latest fashion trend or product through social media quicker.
It seems that younger people find their inspiration from these platforms.
According to one fashion purchase survey, 55% of Generations Zers fashion purchase inspiration comes from social media browsing, about 50/6% of Millennials, 38.1% by Generation X, and 25.7% of baby boomers.
With such an increase in ecommerce shoppers constantly checking their social media on what to buy, there is no doubt that this created a golden opportunity for merchants to join these social platforms to increase their revenues.
40% of merchants are already using Facebook to generate sales. Consumers have now a created a bond with the brands with the help of social media, during this pandemic and it is expected that this bond will last even after COVID.
Remote Work on the Rise
The pandemic has not affected the way we shop but also made changes within the industry itself. One of many changes that has been is remote work setups.
This is not a new trend; however, it is one that has increased since COVID started and everyone has been told to quarantine themselves.
In the pre-COVID era, employees would opt for working from home and this has many advantages to it as well, for example research shows that 67% would leave their jobs if work flexibility were removed.
Remote work can save companies lots of money as about 50 to 60% of office desks are not used, it can also save from electricity bills and other resources employees use to work.
There has been an enormous increase in remote work since COVID has started and now that companies have seen the benefits of this trend, they will likely retain it even after the pandemic ends.
Although there is a downside of working remotely, for example many managers are unable to operate their business as they need to be present on site to oversee the operations and many job positions require employees to be physically at work like in service, this trend will not be completely taken off the table as yet.
Q) What is the importance of trends?
Trends are important because they document the changes that are happening around us and help us to stay current.
It allows us to connect with people at this very moment, and it helps businesses to keep track of progress in the world of business.
Q) Do trends predict the future?
A trend means the same series of events happening over and over.
By looking at data over several years and finding patterns, you can use the information to predict future patterns, trend forecasters convert graph patterns into a formula which accurately predicts what will happen in the future.
Q) How do you keep up with a business trend?
Here are a few tips to help you keep up with a business trend:
- Read as much as you can about your industry, your market, and the world.
- Get involved in your industry.
- Keep in touch with your customers, especially on social media which people are constantly checking.
- Monitor your business.
- Study statistics.
- Observe your competition.
Trends will always be changing in the world of business and have made quite a few changes already since the start of the pandemic.
Many businesses have exploited these trends and in return have benefited greatly from them especially with increase in ecommerce shopping, working remotely and the implementation of contactless payment.
It is most likely that these current trends will be staying with us long after the pandemic is over.
Sources: comparecamp
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