What is the best way to use trend scouting for business? Our guide outlines how to scout trends and apply the answers to your business products or services.
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We have written a lot lately on the subject of product innovation. So far, we have left out one important topic, namely the question of where the ideas for innovations actually come from. So today we’re going to take a look at trend scouting, the first phase of the innovation process.
What is trend scouting for business?
First of all, we have to consider what a trend actually is. The term actually comes from statistics and describes the development of a value over a certain period of time. For example, a product life cycle can be observed after a product has been launched, and stock market prices also follow a trend.
But product innovation is not just about this purely mathematical term. It’s about something much more exciting: namely the trends that people like to talk about on television, on blogs, on the radio or in newspapers. Changes and currents in society, opinions, changes in consumption and behavior. These can be observed through market and social research. And they are already more than just abstract ideas. There are concrete changes. However, these can serve as the basis for new product ideas.
Strategically, this means that the goal should be to identify trends that your own business can dock onto. For example, by optimizing or modifying existing products, by introducing new products or even by introducing new business models.
But how do you recognize relevant trends?
There are very different approaches to monitoring trends. They range from scientific surveys, for example customer surveys or the consultation of market or trend research institutes, to a “naive” observation of the world, in which intuition also plays a role. It is important that you make it your explicit task to observe trends. And keep a modest attitude. It must be clear that your business does not know everything even in its own field and that there is also a lot of so-called ignorance. So knowledge that you don’t even know existed and that you might know . You know?
If you are actively researching trends, you will quickly realize that the world is currently inundated with them. The internet makes it possible: even the smallest niche movements can come to light and people with the most obscure interests can come together.
The 2 key questions to use trend scouting for business
- In which trends is there potential for your business?
- In which trends is your company able to leverage this potential? For example by developing and launching new products.
Especially with the latter consideration, trends suddenly become very business-relevant and concrete. At that point, you can then make more strategic considerations. For example, whether a possible product would address real customer needs. Whether a market launch would be scaled and a suitable supply chain in place. Whether the product would be profitable at all. You could be concerned about the possible life cycle of a corresponding product and the size of the market that it will reach. When the break-even point is reached. Whether the product can be easily communicated to the customer in terms of marketing. And of course whether it fits your brand.
Product innovations with private labels
The following consideration is important: Innovations cost money and can fail. But the right innovations can catapult you to the top of a market. This tension is causing many brand manufacturers to shy away from venturing too far. A First Mover Advantage is absolutely relevant to success in any market, but it is basically easier to copy than to move forward boldly. And so products like the chocolate pizza from Ristorante are rather the exception.
Seminar Innovative Retail Brands
For this reason, many retail companies are starting to innovate with their own brands. Think, for example, of the organic trade brands in the food retail sector, which have significantly advanced the spread of organic products.
