Five emerging trends that brands must consider

The main element of strategic management is dynamism and flexibility: the ability to take note of changes in the external environment and conform to them. Organisations must conform to these changes in order to sustain their profitability. The current trends in the market can be clustered into five main elements: preference for affordable luxury, preference for convenience, preference for local brands, evolution of connected customers, and demand for health and wellness.

Affordable luxury is created when organisations introduce luxury products but refrain from exorbitant pricing for these products. Consumers are increasingly in demand for luxury products but do not want to go for what has been known as conspicuous consumption. This introduces a new concept in strategic management where luxury brands could compete on price. Previously, price would not be an issue for the consumers of luxury products. But as price consciousness rises in general, even the luxury market segments are faced with a rising demand for affordable luxury products. Luxury brand managers must therefore factor this in and ensure that their prices are acceptable. One of the markets in which luxury brands are viewed with suspicion is China where certain brands have been accused of exploiting the consumers.

The other trend that strategic management teams need to be aware of is increase in demand for convenience. Consumers no longer want to move over long distances in search of products and services. They want to have these products near them. This means that the organisation needs to make measures for ensuring that the products demanded are highly accessible. One of the measures that can be implemented is creating platforms for delivery and online shopping. Through the click of a button, the consumer can make an order and have the products ordered delivered to the comfort of their homes or offices. This is convenience and it is among the main drivers of growth in e-commerce.

There is also a strong preference for local brands. This means that the customisation approach in strategic management would be most effective in most markets. The consumers want to consume products they can own. This is with exception of cases where foreign products are favoured by the population. For instance, Chinese consumers tend to value foreign products as they associate them with quality and prestige.

The other element for strategic managers to consider is the evolution of the connected customer. Customers increasingly want to be engaged. They want to be constantly in touch with the organisation. They also want to be involved and listened to. This demand has been fuelled by the emergence of the social media as a key platform for communication between consumers and between them and their brands. In line with this, the strategic managers need to ensure that they factor in this dynamic by establishing online platforms on the social media and using them to keep engaged with customers. The demand for being connected can also be exploited by the organisation to track conversations online and learn what is being said about them. This can be useful in driving improvements to product design and service delivery approach.