What’s Hot 2016!!!*Hot Markets *Hot Businesses *Hot Trends

By Rieva Lesonsky, SmallBizDaily.com

Photos courtesy: Thinkstock.com

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

Demographic MarketingGen Z Millennials (Gen Y)

Demographic MarketingGEN X Boomers/Seniors

Demographics MatterMarketing the right

products &/or services to the right markets is key.

Get info--U.S. Census Bureau www.census.gov

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

Demographics MatterBorn GenerationPrior to 1946 Seniors1946-1964 Baby Boomers1965-1981 Gen X 1982-2000 Gen Y/Millennials 2001-present Gen Z

Hot Demo: Gen Z66 million Americans ages 0-15Big Spenders! $44

billion of disposable income

$500 billion in Pester Power

Gen Z & DiversityAd Age: Most diverse & multicultural U.S. generation EVER. 55% Caucasian24% Hispanic14% African-

American 4% Asian

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

Gen Z: Teens & RetailIncreasingly prefer shopping online at sites with

physical locations over e-tailersBeauty: Customer reviews are top factor (over

product selection) when buying online36% 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)

Gen Z: What They BelieveThey 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)

Hot Demo: Gen X34-50 years old (25% of US population; abt. 60 million) Have more spending

power29% of US net

worth 31% of total

income

Gen X: How They FeelThey’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.

Gen X: What They WantTravelSave for kids’

collegeBuy luxury products

(particularly fine wine & premium beer)

Start a business

Selling to Gen XAppeal 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.

Hot Demo: Boomers & SeniorsHow 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

Boomers & Seniors: Aging in Place

Boomers want to age in place. Their needs:New Housing: Enables retirees & downsizers to

stay in communitiesRemodeling: Aging-friendly, accessible for those

w. mobility issuesFinancial Services: Help with paying bills,

investment adviceHealth: Fitness (gyms for 50+), nutritional

advice, supplementsTransportation services

Hot Businesses

Hot Biz: Pets$61 billion spent in 2015 79.7 million HHs own a pet Cats: 85.8 millionDogs: 77.8 millionBirds: 14.3 millionReptiles: 9.3 millionAPPA

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 suppliesVCs & angels investing in

companies offering innovative products & services

Hot Biz: Pets/What’s SellingPet 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

Hot Biz: Clean Tech“Cleantech is the next industrial revolution.”(E&Y)

U.S. has more than doubled electricity generation from wind & solar

Hot Biz: Clean Tech/SolarSolar 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 crunchGreentech Media predicts:

Community solar will be largest solar-growth sector. 7-fold increase from 2015-2017

Hot Demo: Men

Hot Demo: Men How men shopMore 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

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

≈)

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

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

What‘s Hot! Men’s GroomingTarget 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).

What‘s Hot! Men’s GroomingSell 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

Hot Demo: MillennialsU.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.

What’s Hot! Weddings $79 billion & GROWING!Median age

1950s: Women: 20; Men: 232014: Women: 27; Men 29More educated & employedAvg HHI: $93,00077% live together before marriageAvg. wedding costs $25,358Knot.com

What’s Hot! WeddingsGay couples spend more $$ on their weddings than heterosexual couples.

What’s Hot! WeddingsMust-haves for wedding planning

Website93% use online

resourcesMobile-friendly

61% use cell phones

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)

What’s Hot! Home DecorNot 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

What’s Hot! Babies

3,985,824

born in 2014

What’s Hot! BabiesMillennial-led baby boomNearing that “magical” 4 million markIncrease 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

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

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.

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

Retail as 3rd SpaceShopping as an experienceAs 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.

Retail: OmnichannelConsumers want:To buy online & return

in-storeShop in-store & buy

onlineSmall biz owners beware of:ShowroomingCompeting on price

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)

What’s Hot! M-CommerceBy the numbers:30% of all ecommerce sales from m-commerce in 20152015 sales: $104.1 Billion (up 39% from $75 billion) 59% used smartphone to research before making a purchase/65% used tablet80% say their perceptions of retailers would improve if they offered mobile deals & coupons

What’s Hot! Food Bites

What’s Hot! Artisanal FoodsStill Hot! Artisanal foods46% 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

OrganicBuy local (farm-to-table)

What’s Hot! Diets33% of consumers are dieting 18% cutting carbs16% high-protein regimens9% going gluten-free 4% following the Paleo dietAll these diets restrict carbs, influencing what consumers will order in your restaurant or food truck

NRN

What’s Hot! DietsEating 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 wantMore protein choices & dessert options Allow substitutions on side ordersOffer burgers wrapped in lettuce instead of on a bunAsk customers if they want the bread basket before you put it

on table

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

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 

Is There Life After Cupcakes?

We’re still looking. Some say it’s….

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

What’s Hot! Ice Cream Sandwiches

HUGE Trend in SoCalSell 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?

What’s Hot! Craft BeerCraft 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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