ANTICIPATED TRENDS FOR THE YEAR AHEAD

As the pace of change keeps accelerating, it’s becoming harder to predict the future - but we have an idea of what the next year may hold for people and businesses.

Predicting the future is not like having a crystal ball. You must keep your eyes and ears wide open to take in what is happening around the world at government level, in industry, activist movements, media and new technologies. It seems complicated to stay afloat in a world that changes every morning, but here are ten of the experts’ best guesses about what will happen next.

1The Ukrainian war: The eyes of the world are on Ukraine, and the reasons are straightforward: energy prices, inflation, interest rates, economic growth and food security all depend on how the conflict unfolds in the coming months. Amid these geopolitical changes, alliances are responding. NATO, revitalised by the Ukraine war, will welcome two new members.

2 Recession and inflation: According to The Economist, major economies will enter recession as central banks raise interest rates to quell inflation. Experts say that the recession in the United States and Latin America will be relatively mild compared to Europe. However, the pain will be global since the dollar’s strength hurts emerging countries that have already been affected by rising prices.

3 Post-covid travel recovery?: A year ago, tourism was beginning to rebound post-pandemic with borders opening up again. However, not all of us can afford to take that dream trip, and the reason is very simple: inflation. Traveller spending is set to return to its 2019 level of $1.4 trillion, but only because inflation has pushed prices up. The number of international tourist trips has dropped by 11% since 2019, and business travel will also remain weak as companies cut costs.

4 Changing social media: In its 2023 Big Ideas report, leading voices on LinkedIn predicted that technologies like artificial intelligence and Web3 would thrive. The prediction is already coming true as machine-made art and writing goes viral on social media. Meanwhile, TikTok’s trends analysis suggests that companies should continue to use content creators – and particularly creators who are genuine customers –to build their brands.

5 Travelling local: Public transport strikes permitting, trains will make a big comeback in 2023 as more people search for sustainable alternatives to car and plane travel. When it comes to attractions in the city, people are opting for experiential appointments like going to bookstores, aquariums, picnic spots and museums.

6 Side jobs and new income: ‘Side hustles’ have been a valuable lifeline for many since the instability of the pandemic years. A recent McKinsey survey suggests that around a quarter of Gen Z now have a side job, adding that young people were looking for additional money, identities and hobbies outside of the workplace and the 9 to 5. All this means that employers will have to work harder to recruit and win the loyalty of younger team members.

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Maintaining self-care: The rapid growth of wellbeing awareness in all its forms, from mental health to fitness, public health and work-life balance, shows no sign of abating. TikTok suggests that products and services in the health and wellbeing space will continue to sell strongly, and brands should aim to emphasise humour and positivity in their marketing.

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Sustainability as a “must”: Is sustainability still just a “nice to have”? It’s important to remember that sustainability is about much more than environmental issues; it also encompasses many other ethical and social factors. Driven by consumer behaviour change, more than half of SMEs invested in sustainability in 2022 and plan to do more next year. Deloitte reports that consumers are increasingly driven by concerns about the climate crisis and income inequality, particularly when it comes to FMCG and lifestyle brands. However, there is still unmet demand for more affordable sustainable products.

9 Green supply chains: Suppliers and distributors are increasingly expected to help clients meet their sustainability objectives. With 82% of the UK’s FTSE 100 companies targeting net zero emissions by 2050, demonstrating your credentials as a sustainable company will put you in a better position to be chosen as a green supplier or partner. Plus, many bigger brands are starting to incentivise and support their suppliers to become more sustainable, so you may not have to go it alone.

10 Deeper digital transformation: The pandemic accelerated the digitisation of small businesses, but barriers to further technology adoption still remain, including a need for more time, expertise, and money to invest. Affordable AI solutions may help to level the playing field, while social commerce, e-commerce and subscription commerce are expected to grow. Frictionless payment methods such as digital wallets, in-app payments, and Buy Now Pay Later (BNPL) are also here to stay.

2023 will be challenging but also full of opportunities for small businesses with the agility to respond quickly to changing trends. If you’re working on your strategy for the year, get in touch to find out how our team can help.

By Simon