22 Megatrends Affecting the State of Commerce –– And How to Transition Your Marketing to Appeal to Early Adopters
The world of retail is quickly shedding its old school skin for a more creative and all-inclusive approach. More and more brands are avoiding photoshop in favor of unretouched images, forgoing former definitions of an ideal body size in favor of showcasing the wide range of human body types, and loosening traditional definitions around menswear and womenswear.
Certainly pop culture plays a big role in this, as does social media. Today, few brands can get away with unfair or unclear dress code policies for employees, advertising with unnaturally thin models or disregarding popular millennial values without mass online backlash. In fact, a new report by Sparks & Honey and Fashion Snoops found 22 different cultural trends affecting the state of commerce in everything from a brand’s marketing to its margins.
Two of the major trends identified are what the report dubs “squealing” and a rise in customer empathy.
Income Disparity and Customer Awareness
“Squealing” in the report refers to an increase in awareness around income disparity not only in retail, but throughout the world.
“Companies with high wage gaps are thought to be cannibalizing their own consumer base if people who work for the company can’t afford its products,” said Sarah DaVanzo, chief cultural strategy officer at Sparks & Honey.
Companies with high wage gaps are thought to be cannibalizing their own consumer base.
This megatrend turning millennials away from legacy brands most affects luxury retailers, of which their customer base has been notably declining. In an effort to expand brand awareness and loyalty among millennials, those aged 18 to 34, almost all luxury brands are now online or will be opening up shop online beginning in 2016. Luxury brands were the last of the commerce conglomerates to move online.
Some companies, especially nimble small businesses quick to act on these trends, are using this increase in awareness to pull in more customers with savvy and culturally relevant campaigns. For instance, Pittsburgh pop-up boutique retailer 76<100’s new pricing model allows women to pay a percentage of an item’s price in line with salary inequalities.
Millennial Inclusivity and Empathy
The second megatrend found by the report emphasized customer desire for oneness and an increase in empathy. In other words, consumers are no longer willing to disassociate what they wear with who made it.
“There’s so much bad publicity about how clothes are made and the impact of fast fashion on the world,” said Lilly Berelovich co-founder, owner and chief innovation officer of trend-tracking and forecasting firm Fashion Snoops. “Now, looking cool is having empathy and making a difference.”
There’s so much bad publicity about how clothes are made and the impact of fast fashion.
This customer-driven desire to spend money where it counts is reflected in the viral popularity of brands like TOMS Shoes and Warby Parker, which donate products or services to those in need with every customer purchase. Indeed, ethical fashion is up-and-coming with millennials, who are often willing to pay more if they know their extra dollars are going to a good cause.
For brands looking to optimize on this trend, offer, if you don’t already, to give percentages of sales to causes close to your own heart and your business’s mission. SMBs like Bottle Breacher, for instance, give back to veteran charities and prioritize hiring veterans when and where possible. Doing so has earned them appearances on Shark Tank and a loyal following that not only loves their products, but also their overall purpose.
Traditional thinking and marketing approaches don’t apply to this consumer segment.
Chief industry analyst at NPD, Marshall Cohen, has sage advice relevant to SMBs — especially as we begin planning for the holiday season:
“Traditional thinking and marketing approaches don’t apply to this consumer segment — it’s about being different, and marketers need to follow suit.”
For full insight into all 22 identified megatrends, view the slideshare here.
Tracey is the Director of Marketing at MarketerHire, the marketplace for fast-growth B2B and DTC brands looking for high-quality, pre-vetted freelance marketing talent. She is also the founder of Doris Sleep and was previously the Head of Marketing at Eterneva, both fast-growth DTC brands marketplaces like MarketerHire aim to help. Before that, she was the Global Editor-in-Chief at BigCommerce, where she launched the company’s first online conference (pre-pandemic, nonetheless!), wrote books on How to Sell on Amazon, and worked closely with both ecommerce entrepreneurs and executives at Fortune 1,000 companies to help them scale strategically and profitably. She is a fifth generation Texan, the granddaughter of a depression-era baby turned WWII fighter jet pilot turned self-made millionaire, and wifed up to the truest of heroes, a pediatric trauma nurse, who keeps any of Tracey’s own complaints about business, marketing, or just a seemingly lousy day in perspective.