Everyone is shopping, but what do they really want? (Photo by Mario Tama/Getty Images)
December is when companies like Lyst.com, which collects data on the research and buying habits of over 200 million consumers, compile lists of hot trends. Here’s some of what they had to say about 2022:
– Miu Miu is the brand of the year based on a 49% increase in searches driven by specific products such as its miniskirt and ballet flats.
– Searches for the 1DR bag from Diesel increased by 248% making it the most requested accessory.
– The Barbiecore trend, products referencing the world of Barbie and using pink and bubblegum, exploded after pictures of actress Margot Robbie wearing the trend surfaced in June this year. Searches for all things pink increased by 416%.
– Model Bella Hadid had the most searches for what she was wearing. Her outfits generated a 1900% increase in searches for what she was wearing on average.
Trends like this are interesting, but when our firm represents retailers or brands in the sale of their businesses, short-term trends never generate growth in value because they cannot be replicated in future years.
Investors and retail buyers care about what will create sustainable growth and build long-term value.
Buyers are motivated to pay more when companies capitalize on long-term trends in consumer behavior and create sustainable profit growth.
This is harder to do now than ever. A study by Accenture
ACN
As a result, companies and consumers often focus on different things. According to Accenture, the number 1 priority of consumers is convenience. For retailers and brands, convenience is number 4. Consumers’ number 2 priority is trust, but for retailers and brands, it’s number 6.
Hello, can you hear me?
A study by analytics company Placer.ai ranks the #1 trend in retail right now as retail media networks. If you’re not familiar with the concept, this is where large retailers leverage their online and in-store traffic to allow companies to display ads to their customers. Major retailers like Amazon
AMZN
BBY
WMT
TGT
Why is this happening now?
First, it is a growing money maker for retailers looking for every possible advantage to increase their profitability.
Second, and most importantly, communicating with consumers about brand values is critical. At a time when consumer choices are so vast and consumers change their shopping behavior by the hour, being able to communicate a brand’s enduring values is a critical component of success and, when it’s time for a company to for sale, a great value component. .
Retail media networks are the #1 trend right now because almost every business, retail and otherwise, is driven by content. Communication that your business has with customers that conveys your values and what is important to you as a product or service provider creates a connection with your customer and keeps them coming back.
In a world where consumers say and do different things on different days, they’ll find you when they’re ready for what they know you’re offering if your message is consistent and genuine.
What we’ve found in selling companies is that when brands and retailers effectively communicate with their customers about their purpose and role in the world, consumers who identify with those values keep coming back. These consumers share a variety of beliefs and they do not make price their first consideration.
Companies that communicate their values effectively and consistently have high retained margins and low marketing costs, or to put it another way, they are highly profitable.
So what is the most important trend for 2023? For my money it’s this: Understand what your values are and communicate them clearly to your end customer.
If you do this, when your customers are ready to buy, they will pay your price and tell their friends in person and on social media. When it’s time to sell your company, buyers will see the uniqueness of your message, your relationship with consumers, and they’ll compete to pay to invest or buy.
