12 Macro Trends Affecting Marketing Home Products in a Changing Business Landscape

Posted by Steve Kleber on Aug 17, 2009

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The major forces that shape our societies—from politics and environmental developments to financial meltdowns—have a major impact on changes in consumer behavior. First, here’s a brief definition…

Macro trendsare the broad forces of change that create the future context of today’s world. They represent the sudden appearance and ongoing progress of emerging global phenomena such as market motivators and consumer values. Understanding and utilizing macro trends—and determining their significance to current challenges—is deemed a prerequisite for excelling in business by allowing us to strategically anticipate and adapt to change, while alerting us to the threats and opportunities in the future home and commercial building products business environment.

So what are the most important macro trends for the next 12-18 months? The current top 12 global macro trends, which look beyond the current recession, as defined by Swiss business school IMD and as reported by the Trend Watching Report include:

1.  Economic Power Shifting
The focus of economic power is shifting to Asia and BRIC in terms of investment and output, away from the outdated “Triad” markets of the 1980s and 1990s. The question is how independent the BRIC markets will be in driving global growth and what the role of the Triad will be.

2. Shifting Market Landscape
While developed countries will remain the largest consumer and industrial markets, the rise of a massive global “middle class” in rapidly developing economies (RDEs) will shift the demand landscape radically. The competition for these markets will be intense, but which competitors will succeed?

3. Changing Geopolitical and Security Landscape
Globalization is driving new dimensions of power beyond military might including economics, resources and technology. However, the new global landscape is not stable: risks and nationalism are rising.

4. Fracturing Global Social Fabric
Globally, the population is becoming older, more urban, more Asian and more mobile. At the same time, traditional social structures are fragmenting, shifting notions of personal identity. With demands for greater inclusion by previously isolated segments of society, divides—and associated tensions—are increasing.

5. Growing Stakeholder Demands on Business
More stakeholders—public and private—are actively demanding transparency and accountability from business. Corporations are seen as part of society’s problems. Can they also become critical contributors to required solutions?

6. Changing Consumer Landscape
In more diverse and mobile societies and economies, new consumer groups are emerging. Consumer segmentation now requires new lenses, as new sources of similarity and difference emerge. Consumers increasingly demand more involvement in and customization of consumption experiences.

7. Changing Industry Landscape
Business models must become more flexible. Power is shifting along the value chain and the competition to create and capture value—and profits—is intensifying. The emergence of BRIC multinationals means more intense competition. Flexibility and innovation are critical to avoid being “stuck in the middle.”

8. Changing Nature of Capital
Global financial flows are accelerating, with Asia increasingly funding the deficit spending of the U.S., partly, Europe, leading to global systemic risks now being realized as the current credit crunch redefines the global financial system. New power brokers are emerging, reshaping market dynamics and potentially raising tensions.

9. Changing Labor Landscape
A raging global war for talent for both skilled and “low cost” jobs is increasing. Asia is increasingly important for all types of skills. Partnering and outsourcing is on the rise within and across borders.

10. Growing Pressure on Natural Resources
Basic resources are under threat, including water, energy, food and habitats/climate. Consumption of critical resources is outpacing the rate that the planet can sustain. Public and institutional activism is rising, demanding action.

11. Changing Technology Landscape
A global technology revolution is gaining pace, crossing national borders and scientific disciplines. New technologies, including biotechnology and nanotechnology, will reshape industries and our daily lives.

 

12.  Changing Economics of Information and Knowledge
Exploding connectivity and channels for information are making knowledge creation a global imperative. Networking is critical! Gaining an advantage in and protecting knowledge is difficult to achieve—and even more difficult to sustain.

Stay tuned for more information about green marketplace trends that look at some of the newer opportunities in the next 12-18 months now that ‘eco awareness’ has been embraced by sizable parts of the global middle classes.

This entry was posted by Steve Kleber on Monday, August 17th, 2009 at 7:30 am and is filed under Marketing, Research. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.