Summary: [You might view the earlier post “Trends: the consumer search” before this.] Some companies grow faster because they figure out probable influences on the micromarkets. Tracking them can provide the company a competitive advantage.
This homework on consumer trends adds effectiveness to the business performance.
Ethnic homework
Some companies track ethnic cultures and habits. For example, Lufthansa airlines launched a cultural website sometime ago, focused on immigrant communities.
They paired attractive travel packages with the immigrant people’s customary holiday plans. Within three months they had 190,000 visitors to their ’site. Consequently, revenue generated online was 91 percent over expectation.
Age a trend
Ageing for example, is one such important trend. Yes, older age groups too can make or break the bottomline!
A study focused on the effect of ageing populations in developed economies found that Italy has low birth rates, and high life expectancy.
Hence the senior citizens’ social group in Italy is growing to be the largest demographically. And that could affect product sales.
Significant rise and fall
The researchers estimated that in Italian markets, from the present to the year 2020, there would be increased demand for healthcare, housing, energy, food and beverages.
And over this same period, a significant drop would appear in demand for apparel, furniture, and automobiles. Games, toys and sports would be the hardest hit because of an ageing populace!
Global growth rates
A study comparing the global growth rates of industries, found that some companies grew faster than others did. Why?
They had exposure to subindustries and product categories and could figure out the probable influences of environmental change in future moments. Those that didn’t have knowledge about the micromarkets couldn’t adapt well enough.
Competitive advantage
Trends can have far reaching effects that are not always obvious. Researchers say that by breaking megatrends down into microtrends, companies can understand how specific products will do, since all are not affected in the same way.
Companies that add the tracking of trends to their knowledge base, add competitive advantage. Based on the ready analysis, strategies may be devised to focus appropriately to ride the waves of consumer change successfully.
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