What's hot in 2016 - Hot Markets, Hot Businesses, Hot Trends

1. What’s Hot 2016!!!
*Hot Markets *Hot Businesses *Hot Trends
By Rieva Lesonsky, SmallBizDaily.com
Photos courtesy: Thinkstock.com

2. Be a Trendwatcher
 JWTIntelligence.com
 Bloomberg Businessweek
 IBISWorld.com
 NPDInsights.com
 Oxygen.mintel.com
 Hartman-group.com
 Gartner.com/technology/
 SmallBizDaily.com/TrendCast

3. Demographic Marketing
Gen Z Millennials (Gen Y)

4. Demographic Marketing
GEN X Boomers/Seniors

5. Demographics Matter
 Marketing the right
products &/or
services to the right
markets is key.
 Get info--U.S. Census
Bureau
www.census.gov

6. Demographics Matter
The commonalities between people of
the same age & gender are shrinking
but the differences between people of
different ages & genders are
decreasing too.

7. Demographics Matter
Born Generation
 Prior to 1946 Seniors
 1946-1964 Baby Boomers
 1965-1981 Gen X
 1982-2000 Gen Y/Millennials
 2001-present Gen Z

8. Hot Demo: Gen Z
66 million Americans ages
0-15
 Big Spenders! $44
billion of disposable
income
 $500 billion in Pester
Power

9. Gen Z & Diversity
Ad Age: Most diverse &
multicultural U.S.
generation EVER.
 55% Caucasian
 24% Hispanic
 14% African-American
 4% Asian

10. Gen Z: Teens
Teen spending
shifting from buying
“things” (like
fashion) toward
“shareworthy”
experiences such as
events or dining out
*Piper Jaffray survey

11. Gen Z: Teens & Retail
 Increasingly prefer shopping online at sites with physical
locations over e-tailers
 Beauty: Customer reviews are top factor (over product
selection) when buying online
 36% will play more video games in 2015
 “Least likely to believe there is such a thing as the ‘American
Dream’.” Instead, they’re looking for products & messaging
that reflects reality, not perfection. (Ad Age)

12. Gen Z: What They Believe
 They respond to independence & entrepreneurialism, self-
direction & a spirit of ingenuity. Retailers should create products
& marketing that empower them to be their best selves.
 They’re true digital natives—1st generation born in a digital world.
Businesses should act digitally native too, creating a seamless &
strong overarching brand experience in-store, digital and mobile.”
 Ad Age: It’s “shocking” how few retailers reach Gen Z, leaving
lots of opportunity for entrepreneurs to be their marketers of
choice.
(Ad Age)

13. Hot Demo: Gen X
34-50 years old (25% of
US population; abt. 60
million)
 Have more spending
power
 29% of US net worth
 31% of total income

14. Gen X: How They Feel
They’re happy:
 67% are “satisfied” or “very satisfied” with
their lives;
 Confident they’ll be better off financially
They’re worried:
 Concerns: crime, climate change, their health,
the rising cost of living & saving for retirement.

15. Gen X: What They Want
 Travel
 Save for kids’ college
 Buy luxury products
(particularly fine wine
& premium beer)
 Start a business

16. Selling to Gen X
Appeal to:
 Their desire to provide for their families: Pitch products &
services as lasting values, once-in-a-lifetime experiences or
heirlooms to hand down.
 Their desire to take care of themselves: Healthy foods,
supplements, exercise equipment & apparel, weight-loss
products & fitness classes
 Their desire to play it safe: Want reassurance & security.
Emphasize how products & services can protect their
homes/families/hard-earned money & the planet.

17. Hot Demo: Boomers & Seniors
How Old is Old? Consider this:
“50 is the new 30”
18-29 year-olds say you’re old at 60.
30-49 year-olds say you’re old at 69.
50-64 year-olds say you’re old at 72.
65+ (actual seniors) say you’re old at 74.
Pew Research

18. Boomers & Seniors: Aging in Place
 Boomers want to age in place. Their needs:
 New Housing: Enables retirees & downsizers to stay in
communities
 Remodeling: Aging-friendly, accessible for those w.
mobility issues
 Financial Services: Help with paying bills, investment
advice
 Health: Fitness (gyms for 50+), nutritional advice,
supplements
 Transportation services

19. Hot Businesses

20. Hot Biz: Pets
$61 billion spent in 2015
79.7 million HHs own a pet
 Cats: 85.8 million
 Dogs: 77.8 million
 Birds: 14.3 million
 Reptiles: 9.3 million
APPA

21. Hot Biz: Pets
Target: 71% of Gen X & 65% of
Millennials own pets.
Sell:
 Supplements (glucosamine
& omega 3s), energy bars,
foods with superfruits &
gluten free
 Designer pet supplies
 VCs & angels investing in
companies offering
innovative products &
services

22. Hot Biz: Pets/What’s Selling
Pet treats are a “sure thing” (recalls of treats from China in 2012-13). Of $9.5 billion
spent annually on dog food, $2.6 billion is for dog treats. Only $476 million spent on
cat treats. (“Human-grade pet products”)
It’s not all about food:
 64% buy holiday gifts & 45% buy birthday presents (54% of Millennials do this)
 Millennials also like to buy clothes for their animals.
 $389 million spent on pet toy sales last year
 Last year $166 million was spent on pet grooming (a field with a lot of local
entrepreneurs), with $11 million spent on brushes alone.
Nielsen/Harris Poll

23. Hot Biz: Clean Tech
“Cleantech is the next
industrial revolution.”(E&Y)
 U.S. has more than
doubled electricity
generation from wind &
solar

24. Hot Biz: Clean Tech/Solar
Solar soars!
More adoption. In 2014 a new
solar system was installed every
2 ½ minutes.
Investment Tax Credit expires in
2016, when financing costs are
likely to spike = time crunch
Greentech Media predicts:
Community solar will be largest
solar-growth sector. 7-fold
increase from 2015-2017

25. Hot Demo: Men

26. Hot Demo: Men
How men shop
 More men are shopping—for all kinds of products, inc. food.
 Have a “search-and-retrieve” style of shopping—want to get
in & out of the store as quickly as possible.
 “Don’t mistake lack of planning [for] lack of caring. Male
shoppers “need to be considered in product innovation,
merchandising and other marketing efforts.”
 Overwhelmingly concerned with convenience.
Hartman Research

27. Hot Demo: Meet the Yummies*
Young Urban Males: “The metrosexual cliché of 20 years
ago is now a commercial reality.”
 Yummies are scooping up “fancy” brands as soon as they can afford
them. They have more to prove than older, established consumers.
 Men waiting longer before they get married = more disposable income
 Yummies embrace mobile marketing & shopping from anywhere.
 GOOD NEWS for small businesses: If you sell luxury goods, offer
high-end services or own a restaurant, add Yummies to consumer
mix.
HBSC study

28. What‘s Hot! Men’s Grooming
$5.5 billion sales/2015 – ($3B
in 2012)
IndependentRetailer.com: In 2013 for the 1st
time men spent more on male-specific
toiletries than shaving products.
Men are looking for “fast &
effective problem solvers (DeWolf)
 Toiletries--fastest-growing segment
 Skin care--leading market segment
 Also hot: anti-aging products & hair-care

29. What‘s Hot! Men’s Grooming
“It’s not just more culturally
acceptable for men to
spend on looking good, it’s
becoming perceived as a
necessity.”
SpaFinder Wellness Trend Report

30. What‘s Hot! Men’s Grooming
 Target the young: 38% of
men 18-35 have had a facial
or body treatment.
 Men who get spa services
spend more & get more
treatments than women.
 39% of men who’ve had a
facial get one every week
(6% of women).

31. What‘s Hot! Men’s Grooming
Sell men’s grooming products:
 Grooming stores (beauty
supply for men) on- or offline
 Barber shops
 Men’s (or unisex) salons or
spas.
 Sporting goods stores,
 Clothing stores
 Gyms

32. Hot Demo: Millennials
U.S. Census Bureau:
 83.1 million (largest
U.S. Gen ever)
 Ages 15-33 (born
between 1982 -2000).
 Over 44% are part of a
minority group.

33. What’s Hot! Weddings
$79 billion & GROWING!
Median age
1950s: Women: 20; Men: 23
2014: Women: 27; Men 29
More educated & employed
Avg HHI: $93,000
77% live together before
marriage
Avg. wedding costs $25,358
Knot.com

34. What’s Hot! Weddings
Gay couples spend
more $$ on their
weddings than
heterosexual couples.

35. What’s Hot! Weddings
Must-haves for wedding
planning
 Website
 93% use online
resources
 Mobile-friendly
 61% use cell phones

36. What’s Hot! Weddings
 Restaurants, caterers, bakeries, candy
 Wedding venues
 Wedding planners
 Directory publishers
 Travel agencies (honeymoon planners)
 Videographers & photographers
 Designers (clothes, accessories, jewelry)
 Make-up artists, hair stylists
 Retailers (clothing, stationery, invitations,
gifts, florists, & jewelry stores)

37. What’s Hot! Home Decor
Not live like their parents. Want:
 Smaller, functional homes. No
cookie-cutters. Value originality &
uniqueness.
 Prefer DIY. Willing to buy fixer-
uppers
 59% prefer space for a TV in the
kitchen over a 2nd oven.
 77% want a home with technological
innovations. Brag about smart
automation instead of kitchen
upgrade

38. What’s Hot! Babies
3,985,824
born in 2014

39. What’s Hot! Babies
Millennial-led baby boom
 Nearing that “magical” 4 million mark
 Increase in number of women in their 30s & 40s having babies.
 Birth rate should continue to rise for at least the next 20 years
 Parents in their 30s and 40s have more money to spend on
furniture, clothing, food, décor & more
Baby booms = business booms

40. Hot Industry: Retail
National Retail Federation Outlook 2015
 3.5%, revised down from 4.1%
(due to "unexpectedly slow
growth” due to treacherous
winter weather & West Coast
port shutdown)
 Households spending more
on services rather than goods

41. Retail: ecommerce
#1 factor in making online purchase–free shipping. 48% of
consumers will spend more to reach free shipping minimum.
What are consumers buying? Mintel reports:
1. Clothing and accessories (62%)
2. Electronics (54%)
3. Games, toys, school supplies (37%)
What do they have in common? They’re all things people buy
occasionally.

42. Retail: Who’s Buying Online?
69% of adults shop online at least once a month & 33% shop online weekly
Parents are the BIG shoppers though & the more kids under 18 consumers
have, the more they buy online. Every week:
 40% of online shoppers with 1 child buy something online
 56% with 2 kids
 66% with 3 children.
 Only 23% of consumers w/o kids make weekly online purchases.
 Want to reach Millennials? Email them. Over 40% prefer email over social
media (5%) & texts (2%)
Mintel

43. Retail as 3rd Space
Shopping as an experience
 As digital commerce becomes more common JWT
Intelligence says stores need to offer experiences, unique
environments & customer service.
 Offer A-plus service and experiences—education,
entertainment, sensory stimulation, a place to relax.
These give consumers more reasons to go to a store—
because it’s a place for exploration & dreaming.

44. Retail: Omnichannel
Consumers want:
 To buy online & return in-
store
 Shop in-store & buy online
Small biz owners beware of:
 Showrooming
 Competing on price

45. What’s Hot! Athleisure
Barclays estimates athletic apparel
market will grow nearly 50%--to over
$100 billion by 2020
 But we’re NOT exercising more
 WSJ: bright spot in a sluggish
business
 Yoga participation grew 4.5% last
year, but yoga apparel revenues
were up a whopping 45%!
 Sell (Dick’s just launched Chelsea
Collective)
 Manufacture (Under Armour,
K.Deer Haute Yoga Wear)

46. What’s Hot! M-Commerce
By the numbers:
30% of all ecommerce sales from
m-commerce in 2015
2015 sales: $104.1 Billion (up
39% from $75 billion)
59% used smartphone to
research before making a
purchase/65% used tablet
80% say their perceptions of
retailers would improve if they
offered mobile deals & coupons

47. What’s Hot! Food Bites

48. What’s Hot! Artisanal Foods
Still Hot! Artisanal foods
46% of US adults “like to eat
food with artisan appeal.” --
Packaged Facts
 Reinvent existing food
products: Bacon, mayo, ice
cream, oils, salad dressings,
syrups, sparkling waters,
ketchup & juices
 Organic
 Buy local (farm-to-table)

49. What’s Hot! Diets
33% of consumers are dieting
 18% cutting carbs
 16% high-protein regimens
 9% going gluten-free
 4% following the Paleo diet
All these diets restrict carbs,
influencing what consumers will
order in your restaurant or food
truck
NRN

50. What’s Hot! Diets
 Eating less: bread & pasta (20% less), affecting sales at Italian
restaurants and places where noodles are served.
 Eating more: Steak chains are “performing remarkably well”
Solutions: Give dieting diners what they want
 More protein choices & dessert options
 Allow substitutions on side orders
 Offer burgers wrapped in lettuce instead of on a bun
 Ask customers if they want the bread basket before you put it on table

51. What’s Hot! Chocolate
US is the world’s largest chocolate market—about
85% of Americans buy chocolate—53% once a
week. US chocolate confectionery sales up 24%
2009-2014, hitting $21 billion. $25 billion by 2019.
Not just any old chocolate: Chocolate innovation
up. New product launches grew 18% fr 2013-2014.
 70% buy chocolate as a treat—29% (esp.
Millennials) consider it “mood-enhancing”
 71% prefer chocolate with “mix-ins
 Chocolate buyers are fairly immune to price
increases, making chocolate a very tempting
business

52. What’s Hot! Chocolate
Chocolate trends:
 Bean-to-bar movement—sourcing
cocoa directly from farmers or buying
it from specialty importers.
 Only about 60 chocolate
entrepreneurs embracing bean-to-
bar, a 10-fold increase in 10 years
 White chocolate considered extra
sweet & lacking in chocolate flavor.
Now, Datassential MenuTrends says
white chocolate appears on 8% more
menus than 4 years ago

53. Is There Life After Cupcakes?
We’re still looking. Some say it’s….

54. What’s Hot! Ice Cream
Americans
consume 1.5
billion gallons of
ice cream a year—
spending $14
billion doing so

55. What’s Hot! Ice Cream Sandwiches
HUGE Trend in SoCal
 Sell from trucks, kiosks or
storefronts. BIG in college towns,
 Franchise or independent?
 Not just about cookies. What else
can you sandwich ice cream
between? How about freshly-
baked large macaroons, donuts,
waffles, cinnamon rolls & pop
tarts?

56. What’s Hot! Craft Beer
Craft beer industry doubled its profits in 5
years—should hit $36.3 billion by 2019
New craft beer trends:
 To help boost local economies, some
cities funding startup breweries
 Part of farm-to-table movement,
concentrating on hyper-local angle
 Infused with flavors like locally grown
coffee, spices & fruits into their beers.
 Expanding product lines, adding
distilled spirits & craft cideries

57. Support provided by: