It’s that time of year where we’re flooded with stories about the year that was — everyone always loves the ‘wrap-up’ season. Twitter built its own Twitter in 2012 website. Google created its own zeitgeist too.
This week, FLT got along to Exploring the Digital Frontier, an event organised by General Assembly and innovation consultancy 6.2. Instead of looking back on 2012, we thought we’d look at some of the trends that will shape commerce in 2013.
“What people want more than transactional behaviour now, is interactional behaviours,” says Ben Rennie, Director at the 6.2 innovation lab. “For us, it’s about creating a connection with the customer.”
Here are some interesting trends he thinks are worth keeping an eye on in 2013 and beyond:
- Presumers. It’s being described as the ‘expectation economy’ and Rennie says it’s a growing trend. People want stuff in advance. Whether it’s pre-ordering the latest J.K. Rowling novel or signing up to be part of a company’s beta-testing group, companies are now leveraging this to sign up customers before releasing their product to the world. Consumer marketing publication Trendwatching.com has a nice explanation — it also talks about ‘Custowners’; people who simultaneously purchase a product and invest in a brand. In the startup world, platforms such as Kickstarter and Pozible are examples;
- Newism. People also want to have the newest, most up-to-date product. The iPhone 4S might do pretty much the same thing as the iPhone 5, but that won’t stop close to 48 million people purchasing one this month alone. Rennie says new is now an exciting proposition. The best solution for a business that is lost? Release something new.
- Point-know-buy. There are a bunch of companies trying to figure out what technologies such as RFID and QR codes will mean for marketing. They’re still clunky — have you ever actually scanned one of those QR codes at a bus stop? Nonetheless, retailers are trying to figure out ways to ensure customers don’t go to store, find what they like, and then buy it on their phone from somewhere much cheaper;
- Cashless. Rennie says he is working on a new strategy for an Australian retailer, which will see it enable customers to take whatever they like from the shelves, and not be charged until three weeks later. Research shows people value something they ‘own’ rather than something they could buy, so it seems like a good way to improve conversions (the phenomenon is called the ‘endowment effect’). Most people won’t bother returning something, so more than likely you’ll close a sale. In the online world, this could mean offering a free trial that turns into a paid subscription;
- Teenpreneurs. Anyone can challenge existing market giants. We’re now seeing teenagers launch businesses from home, while still at school. Take Summly, an app which summarises the daily news so you don’t have to dig for it. Founder Nick D’Aloisio was 15 when it first launched. He recently raised $1 million from a bunch of veteran investors. The point being, you now don’t need buckets of money, or much more than a laptop to challenge an existing business model;
- Made better in China. For a long time, China has dominated with its manufacturing prowess — it could do things cheaper and faster than anywhere else. We’re not sure how long that will last for, with a rising middle-class meaning, labour costs are now increasing, and companies are looking to even cheaper Asian powerhouses for manufacturing, but Rennie says the quality of Chinese goods has increased considerably. Foxcon, which manufactures hardware products for Apple, Sony, Amazon and Nintendo, among others, is now the largest private-sector employer in China;
- China and the red carpet. The World Tourism Organisation estimates there will be more than 100 million Chinese tourists heading abroad by 2020. For startups, it demonstrates the phenomenal potential market in China, and of course India, as both countries continue to grow. GDP growth in China was still an impressive 7.4% in the September quarter, while India experienced growth of around 5.5%. Perhaps Australian technology startups should pay more attention to this emerging Asian middle class, with its growing spending power. It’s something FLT is keen to explore — if you’ve got a story about selling into Asia, please let us know.
- Brand is everything. Marketing may be dead, but getting your user experience right is more important than ever. Brands are being shaped by the interaction they have with their customers. As Rennie describes it: “what’s interesting about your brand, is your brand.”
And with that folks, here’s to 2013!