5 Business Trends to Take Note of in 2021
6 minute read
Many business people have been wondering how industries and economies worldwide will recover from the COVID 19 pandemic. Some even go as far as to say that will never rebound from this year’s turn of events.
The truth is, the world will recover. At a price, but it will recover. We are going to see a post-pandemic nosedive for many industries, but also a boom in others.
One of the trends that we have already witnessed in 2020 is the fantastic rise of the eCommerce industry, with most businesses going online. But what awaits us in 2021?
Knowing what is around the corner could help us better prepare and brace for the impact.
- Subscription-based businesses
- Ethical and environmentally-friendly brands
- A boom in demand for bio-chemical protection
- Higher demand for sustainable products
- Consumers’ convenience
Recap of 2020 trends
In the early days of 2020, the world has seen tremendous strides in AI testing and usage. The year has been marked as the year when artificial intelligence moved from the hype phase to practical usage and value.
However, the most important change in the year that is soon going to be over is the switch from the traditional way of shopping to online stores. The obvious reason for this is that online shopping is the safest way to purchase items.
Also, COVID 19 helped communities realize how important it is to be centered around local small business owners. People have become more aware of how important it is to help out the local businesses contrary to handing out money to huge worldwide corporations.
Having all of these trends in mind, let’s see the top 5 trends that will build upon them and most likely kick off in 2021.
1. Subscription-based businesses
It seems like subscription-based services are already working quite well both for entrepreneurs and consumers. What’s more, most industries are already utilizing this model, including the entertainment industry, education, and even retail.
Some studies suggest that around 30% of consumers expect to see their subscription payments to increase into the next year. It is clear that we are seeing a growing reliance on subscription services by consumers for education, news, nourishment, and other services.
This spike is partly due to COVID 19, as people opted to subscribe for service out of safety concerns.
Subscriptions offer an easy way of getting goods and services without the need to go to the checkout counter. Consumers want simple and hassle-free shopping experiences and as subscription model businesses fulfill this requirement, consumers are buying-in.
The first regions where a boom is expected in 2021 are the first world regions. For instance, around 70% of Americans already have multiple subscriptions and it is expected that the rest of the world will follow in their footsteps.
However, due to the lower buying power and standard of living, many countries will not catch up with the US easily.
2. Ethical and environmentally-friendly brands
Businesses have recognized the need to be authentic and honest. More and more consumers are becoming environmentally aware and even more of them are willing to support initiatives that help achieve a goal that benefits a good cause.
However, being authentic is not always so easy. Businesses should refrain from creating their brand just to attract customers due to their appearance because consumers want to see consistency. If a business pulls a trick just to grab attention and rake in the revenue, consumers will remember that.
Some areas that will be on top of consumers’ minds are gender equality, environment, and better working conditions for employees.
On top of that, entrepreneurs should know that Generation Z is slowly becoming the biggest part of the consumer base. These young people are familiar with social media, they know how to spot fake news, and they are quite reluctant to buy items from brands that do not share their values.
So, it would be wise to study Generation Z’s preferences and attitudes towards businesses in general. One day, and that day will come soon, they will make up for more than 50% of consumers worldwide.
3. A boom in demand for bio-chemical protection
It is clear that masks and hand sanitizers will be a new normal for the next few years. Vaccines are being rolled out, but we will be wearing masks and using sanitizers until the pandemic is officially over. A number of businesses will cater to this need and supply the growing demand.
According to various sources, hand sanitizer demand grew by about 1420% while the demand for face masks peaked at around 410% from February to March this year. Hand sanitizers are considered to be the primary method used to reduce the possibility of infection transmission among people. Hand rubs are used as an alternative to the traditional handwashing with soap and water.
Additionally, face masks are mandatory in many countries worldwide and that demand has to be met with enough supplies as well. Some countries even require their citizens to wear masks when they are out in public.
Therefore, it is necessary for entrepreneurs to recognize this need that will not fade out soon and address it properly by meeting the demand.
4. Higher demand for sustainable products
As it was already mentioned, consumers are becoming more and more environmentally aware, and this is giving rise to sustainability.
Sustainability has already become a big trend in the packaged goods and fashion industry thanks to growing environmental concerns. Consumers are becoming quite conscious regarding this issue.
The food industry and the fashion industry are already seeing a spike in demand for environmentally friendly products. However, people do not only look for organic food anymore, they also want beauty and clothing products that contribute to the same cause.
Brands that are keeping sustainability on top of their minds are winning. Some of them are Re:Erth, Herbivore Botanicals, Patagonia, and DÔEN.
Consumers like to see labels such as organic and sustainably-grown on a lot of products they buy. Even when being sustainable is not a high personal priority, the idea of buying a product to do good is very attractive nowadays. And it is only going to become more popular in the days to come.
On top of that, consumers are also willing to pay more for something that helps the world stay healthy. However, bear in mind that the fundamental idea behind sustainability is that it should be easily accessible.
5. Consumers’ convenience
Consumers are slowly starting to appreciate mobile businesses, door-to-door services, and the overall convenience segments that many businesses offer.
Unfortunately, the viral outbreak we have witnessed this year also gave rise to this trend. As a result, people have realized how convenient it is to sit and relax at home and have all the services come to them at the click of a button.
Consumers no longer only order food to be delivered to their doorstep, they also do the same thing with beauty services. Instead of heading out and having to wait for a manicure, the manicurist travels to the address to provide the service.
The same applies to food trucks, junk removal, and cleaning services, as these mobile business ideas will thrive in the days to come.
The insights you have just read are enough to provide you with an overall picture of what the business world of 2021 will look like.
However, it is impossible to determine the exact state of things, so if you would like to stay informed and be among the first ones to discover new trends that will make an impact, make sure to give these websites a chance.
Check out BOF (Business Of Fashion), Small Business Trends, and Business Insider for information on various trends across numerous industries.
As an entrepreneur, you should be aware that keeping up to date with business trends is what will certainly help you stay ahead of your rivals.
Knowing what consumers want and how they want it is the knowledge that will enable a business and its products and services to be as attractive as possible.
If you want to be successful in 2021 and reach your business goals, keep an eye out on these trends and make sure to implement them as soon as you see them coming.
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