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What’s Hot 2016!!!
*Hot Markets *Hot Businesses *Hot Trends
By Rieva Lesonsky, SmallBizDaily.com
Photos courtesy: Thinksto...
Be a Trendwatcher
 JWTIntelligence.com
 Bloomberg Businessweek
 IBISWorld.com
 NPDInsights.com
 Oxygen.mintel.com
 H...
Demographic Marketing
Gen Z Millennials (Gen Y)
Demographic Marketing
GEN X Boomers/Seniors
Demographics Matter
 Marketing the right
products &/or
services to the right
markets is key.
 Get info--U.S. Census
Bure...
Demographics Matter
The commonalities between people of
the same age & gender are shrinking
but the differences between pe...
Demographics Matter
Born Generation
 Prior to 1946 Seniors
 1946-1964 Baby Boomers
 1965-1981 Gen X
 1982-2000 Gen Y/M...
Hot Demo: Gen Z
66 million Americans ages
0-15
 Big Spenders! $44
billion of disposable
income
 $500 billion in Pester
P...
Gen Z & Diversity
Ad Age: Most diverse &
multicultural U.S.
generation EVER.
 55% Caucasian
 24% Hispanic
 14% African-...
Gen Z: Teens
Teen spending
shifting from buying
“things” (like
fashion) toward
“shareworthy”
experiences such as
events or...
Gen Z: Teens & Retail
 Increasingly prefer shopping online at sites with physical
locations over e-tailers
 Beauty: Cust...
Gen Z: What They Believe
 They respond to independence & entrepreneurialism, self-
direction & a spirit of ingenuity. Ret...
Hot Demo: Gen X
34-50 years old (25% of
US population; abt. 60
million)
 Have more spending
power
 29% of US net worth
...
Gen X: How They Feel
They’re happy:
 67% are “satisfied” or “very satisfied” with
their lives;
 Confident they’ll be bet...
Gen X: What They Want
 Travel
 Save for kids’ college
 Buy luxury products
(particularly fine wine
& premium beer)
 St...
Selling to Gen X
Appeal to:
 Their desire to provide for their families: Pitch products &
services as lasting values, onc...
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 ...
Boomers & Seniors: Aging in Place
 Boomers want to age in place. Their needs:
 New Housing: Enables retirees & downsizer...
Hot Businesses
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...
Hot Biz: Pets
Target: 71% of Gen X & 65% of
Millennials own pets.
Sell:
 Supplements (glucosamine
& omega 3s), energy bar...
Hot Biz: Pets/What’s Selling
Pet treats are a “sure thing” (recalls of treats from China in 2012-13). Of $9.5 billion
spen...
Hot Biz: Clean Tech
“Cleantech is the next
industrial revolution.”(E&Y)
 U.S. has more than
doubled electricity
generatio...
Hot Biz: Clean Tech/Solar
Solar soars!
More adoption. In 2014 a new
solar system was installed every
2 ½ minutes.
Investme...
Hot Demo: Men
Hot Demo: Men
How men shop
 More men are shopping—for all kinds of products, inc. food.
 Have a “search-and-retrieve” st...
Hot Demo: Meet the Yummies*
Young Urban Males: “The metrosexual cliché of 20 years
ago is now a commercial reality.”
 Yum...
What‘s Hot! Men’s Grooming
$5.5 billion sales/2015 – ($3B
in 2012)
IndependentRetailer.com: In 2013 for the 1st
time men s...
What‘s Hot! Men’s Grooming
“It’s not just more culturally
acceptable for men to
spend on looking good, it’s
becoming perce...
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 ser...
What‘s Hot! Men’s Grooming
Sell men’s grooming products:
 Grooming stores (beauty
supply for men) on- or offline
 Barber...
Hot Demo: Millennials
U.S. Census Bureau:
 83.1 million (largest
U.S. Gen ever)
 Ages 15-33 (born
between 1982 -2000).
...
What’s Hot! Weddings
$79 billion & GROWING!
Median age
1950s: Women: 20; Men: 23
2014: Women: 27; Men 29
More educated & e...
What’s Hot! Weddings
Gay couples spend
more $$ on their
weddings than
heterosexual couples.
What’s Hot! Weddings
Must-haves for wedding
planning
 Website
 93% use online
resources
 Mobile-friendly
 61% use cell...
What’s Hot! Weddings
 Restaurants, caterers, bakeries, candy
 Wedding venues
 Wedding planners
 Directory publishers
...
What’s Hot! Home Decor
Not live like their parents. Want:
 Smaller, functional homes. No
cookie-cutters. Value originalit...
What’s Hot! Babies
3,985,824
born in 2014
What’s Hot! Babies
Millennial-led baby boom
 Nearing that “magical” 4 million mark
 Increase in number of women in their...
Hot Industry: Retail
National Retail Federation Outlook 2015
 3.5%, revised down from 4.1%
(due to "unexpectedly slow
gro...
Retail: ecommerce
#1 factor in making online purchase–free shipping. 48% of
consumers will spend more to reach free shippi...
Retail: Who’s Buying Online?
69% of adults shop online at least once a month & 33% shop online weekly
Parents are the BIG ...
Retail as 3rd Space
Shopping as an experience
 As digital commerce becomes more common JWT
Intelligence says stores need ...
Retail: Omnichannel
Consumers want:
 To buy online & return in-
store
 Shop in-store & buy online
Small biz owners bewar...
What’s Hot! Athleisure
Barclays estimates athletic apparel
market will grow nearly 50%--to over
$100 billion by 2020
 But...
What’s Hot! M-Commerce
By the numbers:
30% of all ecommerce sales from
m-commerce in 2015
2015 sales: $104.1 Billion (up
3...
What’s Hot! Food Bites
What’s Hot! Artisanal Foods
Still Hot! Artisanal foods
46% of US adults “like to eat
food with artisan appeal.” --
Package...
What’s Hot! Diets
33% of consumers are dieting
 18% cutting carbs
 16% high-protein regimens
 9% going gluten-free
 4%...
What’s Hot! Diets
 Eating less: bread & pasta (20% less), affecting sales at Italian
restaurants and places where noodles...
What’s Hot! Chocolate
US is the world’s largest chocolate market—about
85% of Americans buy chocolate—53% once a
week. US ...
What’s Hot! Chocolate
Chocolate trends:
 Bean-to-bar movement—sourcing
cocoa directly from farmers or buying
it from spec...
Is There Life After Cupcakes?
We’re still looking. Some say it’s….
What’s Hot! Ice Cream
Americans
consume 1.5
billion gallons of
ice cream a year—
spending $14
billion doing so
What’s Hot! Ice Cream Sandwiches
HUGE Trend in SoCal
 Sell from trucks, kiosks or
storefronts. BIG in college towns,
 Fr...
What’s Hot! Craft Beer
Craft beer industry doubled its profits in 5
years—should hit $36.3 billion by 2019
New craft beer ...
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Smallbizdaily 2016 Hot Slides

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

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Smallbizdaily 2016 Hot Slides

  1. 1. What’s Hot 2016!!! *Hot Markets *Hot Businesses *Hot Trends By Rieva Lesonsky, SmallBizDaily.com Photos courtesy: Thinkstock.com
  2. 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. 3. Demographic Marketing Gen Z Millennials (Gen Y)
  4. 4. Demographic Marketing GEN X Boomers/Seniors
  5. 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. 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. 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. 8. Hot Demo: Gen Z 66 million Americans ages 0-15  Big Spenders! $44 billion of disposable income  $500 billion in Pester Power
  9. 9. Gen Z & Diversity Ad Age: Most diverse & multicultural U.S. generation EVER.  55% Caucasian  24% Hispanic  14% African-American  4% Asian
  10. 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. 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. 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. 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. 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. 15. Gen X: What They Want  Travel  Save for kids’ college  Buy luxury products (particularly fine wine & premium beer)  Start a business
  16. 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. 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. 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. 19. Hot Businesses
  20. 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. 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. 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. 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. 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. 25. Hot Demo: Men
  26. 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. 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. 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. 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. 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. 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. 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. 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. 34. What’s Hot! Weddings Gay couples spend more $$ on their weddings than heterosexual couples.
  35. 35. What’s Hot! Weddings Must-haves for wedding planning  Website  93% use online resources  Mobile-friendly  61% use cell phones
  36. 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. 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. 38. What’s Hot! Babies 3,985,824 born in 2014
  39. 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. 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. 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. 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. 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. 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. 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. 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. 47. What’s Hot! Food Bites
  48. 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. 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. 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. 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. 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. 53. Is There Life After Cupcakes? We’re still looking. Some say it’s….
  54. 54. What’s Hot! Ice Cream Americans consume 1.5 billion gallons of ice cream a year— spending $14 billion doing so
  55. 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. 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
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