INSIGHTS

TRENDS FOR2020

We’ve done the hard work for you and found what’s trending in 2020.

Whether you’re an early adopter of the new and exciting, or you prefer to stick to well-established brands with history, the latest innovations, concepts and trends have an influence on the marketplace.

Think about disruptors. Who even knew what they were a few years ago? Uber, Amazon, Netflix have all taken centre stage and there are plenty of other examples of fresh thinking reshaping the traditional working set-up. Now the gig economy is having an impact across almost every business sector, and flexible working is a byword of the early 21st century.

And moods of the moment, increasingly global, create consumer preferences that develop into true trends, not just fads.

So what are the areas worth exploring in 2020? If you’re going into business you want to be sure there is plenty of potential to grow the business and achieve the return on your investment that you’ve planned.

These are the trends that are getting all the attention right now, and they show no sign of slowing down.

TOP TRENDS FOR 2020

WHICH FOOD IS HOT RIGHT NOW? Superfoods are the superheroes. Fatigue-busting breakfasts and lunches are powering into our lives, the acai bowl is a must-have menu item right now. Is it more than a fad? Just take a look at the shopping centre food hall and spot the changes that a taste for healthy eating has brought about. Good nutrition is here to stay.

Is it Mexican’s moment? US favourite Taco Bell is charging ahead with its expansion into Melbourne, its clever marketing tactics (who wouldn’t use a taco-thru tram to order and eat on the go?) pumping more oxygen into this fast-food category already served by popular brands Zambrero, Guzman y Gomez, and Mad Mex. (Read more in our Spotlight on food page 90.)

BOUTIQUE BODIES High tech is the business of beauty today, and laser treatments are among the most popular. A line-up of specialist clinics is tapping in to the trend and attracting young entrepreneurs. Established brands are, of course, keeping tabs on innovation and technique, and boosting their hands-on services to deliver customers a choice of results-driven treatments.

THE YEARN TO LEARN A hyper-competitiveness among parents of school-age children is helping to drive demand for good quality tutoring and extracurricular learning.

From the traditional (Kumon’s very formulaic approach has been a global success since the 1950s) to the artistic (dramabased Stagecoach) to the multidimensional (MindChamps) and the scientific (tech-focused ScopeIT Education), learning today extends way beyond the school classroom.

From preschool to pre-HSC, educational businesses are flourishing.

Add in a sports focus (Sport Star Academy, Little Kickers, Billy’s Buddies, Soccajoeys and GeckoSports for starters) and this youth sector is awash with opportunity.

FIGHTING FIT If you thought a fitness business was all about a sweaty gym, it’s time to take a fresh look at this active sector. One of the liveliest industries on the planet right now, fitness is incorporating everything from 24/7 gyms like Anytime Fitness and Plus Fitness to boutique-style class-based venues. Niche fitness techniques like Pilates, boxing, barre and functional fitness are reinvigorating the jaded gym-goer. And with fewer than 20 per cent of Australians working out in a fitness space, there’s plenty of room for more.

THE CARE FACTOR This is a favourite of ours. In 2017 there were 3.8 million people (15 per cent of the Australian population) aged 65 or over and, according to AHW, in June 2018 more than 780,000 individuals were accessing grants for home-support services. This market is just going to keep growing. It’s been a slow-burner but now the flame is spreading, as business-minded individuals see the potential in a home-care franchise offering stay-at-home solutions for the aged and people with a disability. Improved regulations around home-care packages have helped drive this. Just look at how Home Caring is expanding with its community-focused approach.

BUILDING A FUTURE While apartment living is the new compact answer to home development for Australia’s rising population, regional and sub-metro areas are still attracting home owners wanting a fresh plot of land to build their dreams on. And it makes perfect sense for an independent builder to tap into the strength of a franchised brand in this arena to gain more support and marketing capacity.

If we can’t build, we’re renovating. Good news for the strong franchises operating in this area providing structure and a competitive edge in a market crowded with small brands.

HOW TO SPOT IF A TREND IS FOR YOU Ask these top 20 questions to work out if investing in a business that’s trending is going to meet your purposes:

8. Who are the customers and how likely are they to buy from this brand? Would you be a repeat customer at this business? Wh at makes this business different from the competition? Is it a niche business or is there potential to broaden the product or services range? How competitive is the consumer pricing? Will the suppliers in the supply chain be able to furnish ongoing demand? How quickly will the branding and offer tire? How much investment is the franchisor spending on research of the market? 9. Whether the business is mobile or operates from a fixed site, is it easy to get the right location? 10. Do t he sites currently operating get the foot traffic required to be successful? 11. Is the franchisor capable of supporting a fast-growing franchise? 12. Conversely, how can you make money from this business if there is a slowdown in the market? 13. What is the key to profitability in the business? 14. Do y ou have the skills to operate the business? 15. Wh at training is available – business and technical? 16. Ho w is the marketing tracked and measured? 17. Ho w much local area marketing are you expected to do? 18. Is there a minimum revenue expectation from the franchisor? 19. What capital expenditure will the franchise require over the term of the agreement? 20. Is this a brand, and sector, you will be proud to represent?

It’s definitely worth doing your own research on both the particular sector you are considering and any brands you shortlist.

Brand-new franchises can be riskier investments but offer a chance to join an exciting, young business which may reap good returns. An established brand can sit well in a changing environment if it has the will and capacity to maintain its core base while innovating in essential areas to stay ahead of the competition.

The franchisor will provide plenty of information that’s helpful in your decisionmaking process, but back it up with independent due diligence and third-party advice from a franchise-experienced lawyer and accountant to get a full picture. n