Mega Trends shaping our 'PRESENT'

As human species, we are constantly evolving in all spheres of life. The direction that this evolution is taking, has always been a matter of great curiosity for me. Predicting future direction is always a speculative thing however a close watch on patterns across sectors and geographies can provide great insights into what the future holds for us.

Trends that have an effect on a global scale and across sectors are often called Megatrends. Studying and spotting megatrends is a topic that fascinates researchers, trend spotters, designers and marketers, across the globe. While many business leaders laugh off the trends as fads, but the smart business leaders are able to spot the relevant trends from amongst the fads. While talking about trendspotting, Anna Wintou, ex editor of Vogue in America and in Britain, said that

It’s always about timing. If it’s too soon, no one understands. If it’s too late, everyone’s forgotten. - Anna Wintou

Here is my own assessment of the megatrends emerging currently, based on my interactions with various industry leaders, readings, participation in relevant workshops and industry forums. Thanks to all the people who have directly, indirectly contributed to putting together this analysis

Urbanization

Throughout history, cities have been the centers of learning, accumulator of wealth and reflective of progress. However cities are often besieged with associated problems like high population density, unhygienic migrant living conditions; economic disparity leading to increased crimes; increase in traffic leading to increase in pollution. According to a UNDP report, by 2050 more than two-thirds of the world’s population is projected to be living in urban areas. This rapid increase will take place mainly in developing countries. As cities grow, governments will need to cater to rapidly growing demands for public services and infrastructure - including health and education services. For the fashion and lifestyle industry, the implication of this is a rise in fast fashion as well as emergence of new markets, with rising income levels, outside of erstwhile few European and American centers. With rising middle class and its global aspirations, there is bound to be continued steady demand for real estate and convenience services. For manufacturing, it also implies decentralization of works to newer low cost markets. On food grain security side, this also means enormous demands, leading to wider acceptance of things like hydroponics and vertical farming.

To summarize, while rapid urbanization seems like a challenge but it can also become a huge opportunity, if tapped well by building smart, modern and sustainable cities.

Individualization

This is not just one trend but a Meta-trend or a trend which is combination of various trends at play.

With the advent of globalization and digitalization, the options for self-fulfillment have multiplied. There’s a widespread desire for “Distinction not Convention” concept and hence people today are increasingly projecting themselves as unique brands with curated identities.

Today, there is already a market for providers who specialize in the production of goods for individualization, from mobile phones to new varieties of muesli. The growth of the car customization market is an expression of individuality in design.? Here are some aspects that will further fuel this trend - (a) Artificial Intelligence creating personalized online experience; (b) latest technologies that will soon take care of mundane stuff freeing individuals to do what they really enjoy and (c) On demand learning - enabling people to gain multiple skills, making life long learning possible.

It’s easy to feel a little overwhelmed by all the opportunities and to feel tempted to try all and do nothing. Individualism truly is a gift, but a demanding one.

Experience

This one is my personal favorite being in the retail and luxury industry.

There is a whole new terminology which has emerged around experience. The experience economy is defined as “an economy in which many goods or services are sold by emphasizing the experience it delivers.” Consumers are prioritizing experiences over things. Consumers are seeking out authentic experiences that suit their individual tastes, preferences and lifestyles. Spending on things like travel, leisure and food service is predicted to rise to US$8.0 trillion by 2030. Consumers are also more demanding of experience in the path to purchase. The trend is impacting across sectors, from the dine-in experience at restaurants to the shopping experience in the retail sector, to the priority some consumers give to experiences such as holidays over purchasing the latest fashion. This virtually means that you can charge more if you know that you offer an unbeatable experience. Moreover, customers remember the service, the experience and the interaction a lot longer than they remember the price. This is why great businesses see service not as an additional cost but more as a sales opportunity.

Small piece of advise: If your business involves constant direct interaction with customers, make sure you offer them all the attention they deserve. Happy customers are engaged customers. And engaged customers, in turn, can turn into the most powerful brand advocates.

Wellness

With COVID pandemic in 2020 and 2021, the generation has seen something like never before. It in itself led to so many newer trends and one of the most prominent one amongst those is the focus on wellness.

The Global Wellness Institute defines wellness as: the active pursuit of activities, choices, and lifestyles that lead to a state of holistic health. It distinguishes wellness not as a “static state of being (i.e. being happy, in good health, or a state of wellbeing), but rather the “active process of being aware and making choices that lead toward an outcome of optimal holistic health and wellbeing.”

“The best six doctors anywhere - and no one can deny it - are sunshine, water, rest, air, exercise and diet.”?~ Wayne Fields

People are now more and more aware about mental and physical wellness. Organizations are taking notice of this trend and already started to tweak their policies to support the employees.

Global wellness industry is $4.5 trillion. Wellness retreats are becoming the in-thing and rapidly growing. In diet, there is increasing awareness of healthy eating. Even food delivery apps like Swiggy, in India, have created filters like 'health food' or 'guilt free food' in their choices. In India, FMCG companies are finding their new mojo in ayurvedic offerings across product categories. More people across age groups are adopting and including outdoor activities and yoga and meditation in their routines and the trend is even stronger amongst the youth. Euromonitor International’s Voice of the Consumer: Lifestyles Survey 2021 also indicates that on average, more millennials tend to participate in these health-related behaviors on an everyday basis.

Connectivity

When was the last time that I visited a bank branch ? Probably 12-13 years back. And yet I am easily able to manage multiple bank accounts and seamlessly connected. Such is the progression !

When we talk about connectivity - there are several parlance to it in the changing world of technology. First and foremost being data connectivity to the remotest parts of the world and improving bandwidths (some places are already on 5G telecom networks). Second aspect which we are observing from electronic devices to whitegoods to electrical devices is the IoT or Internet of things, where smart devices are connected to each other. Third area in connectivity which holds immense potential is blockchain. Blockchain technology was originally invented as the infrastructure for digital cryptocurrency like Bitcoin. More recently the technology has also been applied for unique “Non-Fungible Tokens” (NFTs) that can represent the ownership over everything digital. Blockchain has the potential to cut out intermediaries and revolutionize the way humans do business with each other. We are still scratching the surface and there are many startups exploring the space.

Automation

The more intelligent machines become, the more they can do for us. That means even more processes, decisions, functions and systems can be automated and carried out by algorithms or robots. Eventually, a wide range of industries and jobs will be impacted by automation. This means humans will no longer be needed to do the jobs that machines can do faster, safer, cheaper and more accurately. Also, there is an associated risk of amount and nature of jobs that can get replaced including professional jobs in fields like law or accounting. From truck drivers to bricklayers to doctors, the list of jobs that are likely to be affected by automation is ever increasing.?

Keep a watch out for your respective sectors, where automation is happening and what kind of jobs is it replacing.

Sustainability

The mega trend of sustainability is built on the foundation of protecting our planet and its resources. It has become part of a global commitment to protect the environment while providing for future generations. It is emerging as one of the unique megatrend, one which is simultaneously economic, political, cultural, philosophic and technological in nature.

Customers demand sustainable products and are also willing to pay more for products and services from corporations that act in a socially responsible manner. Utilizing this dynamic, effective CSR management, communication and execution has the potential to add value for corporations. As young consumers are becoming more and more conscious of what they are consuming and its impact on earth, more companies are taking sustainability into account in their decision-making, and more investors are considering sustainability in their investment decisions by looking at ESG reports ie. consideration of environmental, social, and governance.

The shift towards EVs, clean tech, renewable energy, plant based cosmetics, natural fertilizers etc. are all signs of acknowledgement of impact of climate change on the world and willingness of industry and governments to make necessary shifts however the consumers must remain wary of organizations and brands which are attempting greenwashing (putting forward a marketing communication with ecological arguments in order to forge an ecologically responsible image among the public, without doing anything material in supporting the environment)

Women Power

Since I am working in the Jewellery business, how can I not talk about women power ! Women make up 48% of the global population and around 35% of the workforce and this number is increasing - with more women in graduate schools, postgraduates, and in workforce, in leadership and in managerial positions, and the rise of consumer power in the hands of women. In many parts of world, women are now the key decision-makers in procuring most consumer durables, health and beauty items, fashion and even cars and houses. Women from emerging nations, such as South Africa, China, and India, represent one of the highest growth opportunities for an investor today. The female-powered economy is poised to outpace many big economies in the next 5 years. Tapping into this growth and understanding women as customers will be essential to businesses.

So, these were the eight megatrends that are shaping not just the future but are already shaping our present. I hope the awareness of these trends can help you in your own work - irrespective of whether you are in lifestyle or healthcare or social development or education or any other industry.

If you think, I missed out any specific trend - do point it out. If you are already working on any specific trend and making transformative changes in your work - do share for learning of others. Finally, if you feel if this article can benefit anyone in your network, kindly do share it with them.