To remain competitive, it is vital for any company to be aware of what competitors are doing and what the industry is thinking and saying. However, following trends for the sake of it can be detrimental to your business. Although some trends may be long lasting and impactful, others may be no more than fads that are not sustainable.
To successfully take advantage of constructive trends, companies must be able to sift through the quagmire of hype and find the business idea beneath.
The key is to watch trends with a critical eye and to be discerning in your analysis of the market and the opportunities that these new trends may present. Assessing changes in the market with business strategy in mind, and applying new ideas that are appropriate to your business and your clients, can add real value. This must be combined with a thorough investigation of the potential impact of a trend based on market intelligence and a well-founded understanding of the target market.
Although caution may be the better part of valour when it comes to following the latest trend, companies must not be afraid to try new ideas or to change the way they think. On the other hand, diving in and reinventing yourself every time the industry changes its mind, is even more damaging.
There is a substantial difference between a trend, which is a long lasting move in the direction of the market, and a fad which is a temporary new idea or fashion (take feng sui for example); it does not have staying power and may be here today but will be passé tomorrow. An example of a trend would be the increased use of technology by consumers such as online banking and other Ecommerce activities. A fad would be the popularity of banana clips.
It must be understood, however, that occasionally surfing the net and looking at trend sites does not constitute trend watching. Monitoring of trends has a combination of elements. It comes from getting out of your office and seeing first hand what people are doing and thinking, finding out what the market and your competitors are saying by reading their opinions in the media, as well as keeping an eye on the behaviour of your target market.
This can be done in many ways from doing market research or reading what they read, to people watching when you shop, go out for coffee or go to the doctor. Also, remember that your clients still know their business best, so do not be afraid to ask them about their client behaviour; what their most popular product is, what their clients are saying about consumers and what the consumers are themselves saying.
Trend watching is an important exercise as it can form the basis for long-term strategic direction and gives great insight into the market and its direction. Fad watching, however, is also essential since, although one must recognise fads for what they are, they are also a valuable resource that can be leveraged in a campaign to benefit the client.
Clearly it is important to watch the market and capitalise on opportunities, but do not be swayed by every whim in the industry. Know who you are and where you are going, then any change you make or trend you apply will only add benefit, and not send you and your clients into a cycle of turmoil.
