Hi, and welcome back to my blog. This week is the first of a 2 part series regarding “Trends in the Pandemic.” I hope you will enjoy this and the next installment!
COVID-19 was the one that we all feared was coming. There had been previous scares—SARS, MERS, Swine Flu, Ebola, etc.—the prospect of a pandemic has been a well known and articulated systemic risk. With each successive time the world “dodged a bullet,” complacency developed. Sure, there were predictions and forecasts, but almost no one gets the timing and progression right. People try to recognize the trend(s) developing, and then be as prepared as possible for the outcomes.
2020 has definitely sharpened the view of some trends that had been emerging in the last few years. What has leaped into everyday use? What trends have accelerated? How, as an investor, do you recognize the trend and then put your investment dollars to work, trying to minimize your risk along the way? Here are a few trends that have “popped” in the last few months.
The Experience Economy
We have been locked down and told to keep our distance. Most of us paid heed to some degree. As a result, businesses had to adapt. Now, it seems that this trend will be with us for some time. According to monigroup.com, digitalization has become THE trend: “… consumers have turned to online for entertainment and past-time as they continue to stay at home. This has heightened both the demand and supply of virtual experiences and contents, such as live streams, online classes, Netflix shows, virtual museum tours, and more.
“The spike in this ‘virtual experience economy’ could make a permanent shift on consumers’ preferences and demands, even after the pandemic. “ They cite museums, jewelry companies, even hotels and clubs going digital for local-bound consumers, as this experience will suffice, for now.
Shopstreaming
From Henkel’s Spotlight Magazine: “ Shopstreaming is what the consumer trend website TrendWatching calls “the merger of e-commerce and livestreaming.” It allows a customer to digitally “walk” around a store, watch the business owners as they explain their products, and even interact with other people in the store as if they were actually there, but all online. From online wine-tastings to live-streamed shopping parties, there’s no doubt the coronavirus has necessitated and accelerated the shopstreaming trend. But while it may be new to businesses in the West, the trend first emerged in 2017 in Asia.”
Online shopping has been a mainstay trend for close to two decades, and COVID-19 has only accelerated its adoption with folks that resisted it. In the last reporting period, almost all retailers who did well attributed a majority of that success to the burst of their online shoppers and their spending. Shopstreaming combines two trends—online shopping and the experience economy. Look for further development here, which leads us to the next trend:
A-Commerce
Automated Commerce (or A-Commerce) is the confluence of the consumer with Artificial Intelligence insights to fuel the retailer with data to drive your experience. Disruption Hub describes this scenario: “For example, your fridge will know that you goet through four pints of milk a week. When it gets to the end of the week, your fridge will notify your Google Home or Amazon Alexa device and your grocery order will be automatically updated… automated warehouses are home to collaborative robots that pick and pack grocery orders.”
An easy way to picture this trend? Google something that you might want to buy. Then, just a few minutes later, go on your social media platforms. See how ads target you with the item that you just searched? For me personally, I love to cook. I searched for a new, serious kitchen knife called a Serbian Cleaver. That was almost two months ago. It was the fifth entry and first ad on my Facebook feed. Now, imagine this data set can be used for your shopping almost anywhere, and can be filled by a robot. That is A-Commerce, coming to a warehouse near you.
Ultimately, we talk about disruptive technology and products cutting through the noise and having a real impact on our lives. This is the first time, definitely in my lifetime, that a public health scare has accelerated trends that may not have been even noticed six months ago. Imagine what is still to come.
Thanks for reading. I would enjoy hearing from you about your thoughts and trends you see out there. In part 2, I will uncover a few other trends that have been appearing—the virtual companion, coping, and the rethinking of status. Make it a great one!
-Dan
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