Trends Vs. Fads

A fad can make you rich, if you’re lucky enough to be the person who invented it. Hula Hoops, Pet Rocks, the Low Carb Diet, Ouija Boards and Koosh Balls are a few of the fads that enjoyed soaring popularity for a while and then fizzled. But at their height, they were hot.

The difference between a fad and a trend is that a fad is a product. A trend is about changes in behavior. People who are astute enough to spot trends and act on them have golden opportunities to bring the Midas touch to their businesses.

When it comes to trends, you have three choices. You can set trends, follow trends, or ignore trends.

The place to identify trends is in consumer behavior. Because all businesses ultimately exist to provide goods or services that benefit consumers, every industry and market is affected in some way by consumer trends.

The acceptance of laborsaving devices in the 1950s, such as automatic dishwashers, was a trend. The shift from big automobiles in the early ‘60s to compact cars at the end of the decade was a trend. Trends create opportunities for new markets, more products and more services. Fads create only an opportunity for a short-term success for a specific product or service.

Most businesses ignore trends because they simply do not have the resources in people or finances to invest in trend watching and analysis. But there are some definite trends that signal a change in consumer behavior. Understanding them will give you opportunities to evaluate how or if you can capitalize on them.

Going “Green.” The green, environmental, ecological industry is one that has been accelerating, sputtering, and faltering for more than three decades since the first Earth Day was celebrated. But power shifts in environmental industries have started. Backed by an administration that embraces environmentally friendly thinking, the momentum is now strong enough to propel this sector into the mainstream.

Wealthy entrepreneurs, such as T. Boone Pickens, are helping to accelerate this momentum. Where there is money to be made, those with money quickly invest. Fortunes await those who pioneer ways to bring green alternatives to the world. But the fortunes are not just for the giants. The benefits of green can be adapted and offered by companies of all types and sizes.

The first level starts with consumption. Any company with a product or service that allows a household or business to reduce consumption by being green, and thereby save money in the long-term, will be very attractive to cost-cutting, budget-minded and environmentally conscious consumers.

If your product or industry is approved for tax credits or rebates, or if you have a specific “green” incentive, this information should be prominent in everything you print, publish and present. Make it a key market advantage! And, make this information easy to find on your Web site. Offer help to customers so they know how to get the tax credit or rebate.

The next level is for the green “do it yourself” market. Products that allow consumers to be more green through their own actions are a trend whose time has come. Perhaps an organic sustainable garden on the front White House lawn is a bit over-the-top, but as an example, this is an excellent time for any business related to gardening to promote the eco-benefits, health benefits, and money-saving benefits of that industry.

If you don’t have a product or service, look for ways to provide “free green” information and advice. Categorize your advice as vertically as possible so you connect with consumers in a credible way. For example: Instead of offering information about how to “add solar energy to your home,” offer the information broken down by home types such as “How to add solar energy to homes built before 1950, or Ranch style homes, or City homes,” etc. By putting your information into niches you will gain credibility and make it easier for consumers to relate to you.

Consumer Control. Where once the marketplace was controlled by businesses, and consumer actions could directly be related to advertising expenditures, the consumer has now taken control of the marketplace. It’s called “transparency.” And it is the trend in consumer thinking.

Instead of fighting consumer control, work with it and make it easy for your customer to take control of the relationship with you. You start by really delivering on customer service.

Make it easy for customers to reach you, get information from you, buy from you and have a problem solved if something goes wrong.

Your Web site should be the first place of interaction where you give consumers control. It is essential that your Web site is designed and built from the customer’s point of view. “Easy” is the mantra you need to use. With the Web being the number one source for information searches, you need to create a positive experience for those who visit.

Include a customer feedback section, or blog, where customers can post communications with you and with each other, and you can provide responses when needed. Companies that use smart strategies in 2009 will put the customer in charge.

Spending. There are two spending attributes driving consumers in 2009. The first is “luxury”; the second is “frugality.” Adjust your thinking, however, when you look at these words, for they are the new trend.

Luxury is no longer synonymous with expensive. The new trend in luxury is about perks, selective advantages, and exclusive opportunities. It even has a name – “perkonomics.” Whether you sell direct to consumers or business-to-business, your advantage will be in the perks you offer. It is not about what you sell. Luxury is now about how you treat your customers. Find the right trigger for your customers. It could be about status, convenience, or rewards. Develop exclusivities and perks for them and you can own your market.

On the reverse side, just as luxury is no longer synonymous with expensive, frugality is no longer synonymous with cheap. The new trend in frugality is self-fulfillment. When consumers are watching pennies, cutting back on spending and hoarding their cash, give them an opportunity to do something good as part of the purchase of a product or service. Or give them a reason to feel fulfilled by their purchase and they will think differently. Personal fulfillment is the new perspective on added value.

As you consider trends, and how they apply to your business, ask yourself these questions.

1. How can this trend re-shape or impact my company’s vision?
2. What new product or service can we add, or what product or service can we re-invent, as a new business venture that relates to trends?
3. Do these trends inspire different thinking and new energy for me? [Hint: They should!]
4. Does the talent and experience exist at my business to take advantage of trends?

The acceptance of trends as a formidable and reliable part of business was validated in 2000 with the publication of Malcolm Gladwell’s book The Tipping Point. It shows how trends develop through broad shifts in what provides value or status to consumers.

Your choice now is whether to be innovative with trends, follow the trends, or whether to ignore them. Your choice can make all the difference in how successful 2009 is for you.

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