What's hot today could be passé tomorrow, leaving businesses scrambling to keep up. This rapid evolution of preferences isn't just a challenge—it's a potential existential threat to companies that can't adapt quickly.
To navigate these turbulent waters, businesses are turning to trend intelligence — a powerful tool that empowers companies to understand and anticipate consumer behaviour.
In this episode of "Insightful Inspiration," Isabelle Landreville chats with Mimi Sherlock, VP of Global Consumer Intelligence at International Flavors and Fragrances, to discuss how trend intelligence helps future-proof businesses. It's not just about spotting what's hot right now—it digs deeper into the forces that shape how people think, act, and buy.
Let’s explore their discussion.
What is trend intelligence?
Trend intelligence involves analyzing emerging trends to understand their potential impact on business strategies.
"Trend intelligence is about trying to understand the trends that will impact your business,” Mimi explains. “It's about understanding what's changing so that you can be future-proof and anticipate the changes.”
It's paying attention to what's going on globally and how it might affect a brand's perception.
What can trend intelligence do?
Let's put it into perspective. A major beverage company once failed to notice the growing trend towards healthier, low-sugar drinks. They kept focusing on their traditional high-sugar drinks while smaller, more agile competitors introduced healthy alternatives.
These competitors quickly captured a big chunk of the market. By the time the company caught up, they had lost valuable ground and consumer trust.
With trend intelligence, that business could have figured out a growing demand for healthier products and identified opportunities for new products that meet unaddressed needs or improve upon current offerings.
Ever wonder how a new product enters the market at what seems like just the right time? That's what trend intelligence can do.
Spotting a true trend vs a fad
But, what's the difference between a fad and a real trend? It can be hard to tell, but trend data can help crack the code. Mimi uses the natural healing trend as an example.
This goes beyond herbal teas popping up in stores. It includes doctors prescribing nature walks, people getting into forest bathing, and a whole movement towards outdoor activities for both mental and physical health.
When all these pieces come together, it points to a significant shift in consumer behavior. For instance, the natural healing movement encompasses not just herbal remedies but a broader shift toward holistic health practices.
"There are a lot of different fads that come and go. When we're thinking about a trend, we're really looking at something where we're seeing the signals of change happening," Mimi says.
That's what separates trends from fads since forces are coming into play that are changing people's lives in different ways.
What are the different trend levels?
Trends come in all shapes and sizes and can be categorized into societal, lifestyle, consumer, and product trends, each influencing the others. These are big shifts in how people think about important issues.
Changing attitudes towards mental health is a prime example of a societal trend, as seen in the increasing acceptance of therapy and wellness practices.
Lifestyle trends are larger trends that lead to people changing their daily habits in response to these big societal shifts.
Consumer trends focus on how these changes affect specific industries or types of products. Trend data can look at new opinions on food, beverages, or interior design.
Understanding how these different levels connect is key to developing a good trend intelligence strategy.
For example, a societal trend towards environmental awareness might lead to lifestyle changes like reducing meat consumption or taking up composting. This could create consumer trends in plant-based foods and ultimately influence product trends in packaging and ingredients.
Businesses can use this information to inform their marketing strategies and determine what new products or services to introduce to the market to meet current demand.
Why businesses need trend intelligence
Trend intelligence is like a superpower for companies. It helps you think about different directions to take, gets everyone on the same page, and can be used as a springboard for creative, active thinking.
"You're not as reactive to the marketplace, you're a bit more proactive, a bit more strategic," Isabelle says.
Change happens fast, so knowing how and why customers are making changes is invaluable insight for brands.
"Having good trend intelligence helps you navigate the changes that are happening, which are constant, somewhat volatile, and can be a little bit disruptive," Mimi adds.
Building a trend intelligence system
To make a robust trend intelligence system, businesses need to answer, "What makes a trend?" To answer this question, businesses should implement tracking systems and leverage digital tools to gather real-time insights. The goal is to better understand what's a long-lasting trend versus a passing phase.
Digital tools have quickly evolved to help businesses track and analyze trends and determine what brands need to do to stay ahead. Businesses are also rethinking the roles insights professionals need to have in the current market.
"There's a real piece of the puzzle that can empower us to make sound decisions,” Isabelle explains.
Connecting trends to human insights
To get the most value from trend intelligence, businesses need to connect their research with deep human insights. This means understanding not only what trends are emerging but why they're striking a chord with people. It's about seeing how trends are changing behaviors and preferences at a human level.
"We're looking at trend intelligence and insights to gain empathy, to understand people, and be able to create things that meet their needs," Mimi says.
Consider the rise of the "digital detox" trend. At first glance, this might seem like bad news for tech companies. But digging into the human motivations behind this trend can uncover new horizons. People want real connections, they're worried about mental health, they're looking for better work-life balance.
Companies can use these insights to create products that help people use tech more mindfully or blend digital and real-world experiences. They can create features that encourage mindful tech use, develop products that blend digital and analog experiences, and market their products as tools for enhancing real-world interactions.
Shaping the future
Trend intelligence can help future-proof a brand, but it can also shape that future by getting a deeper understanding of people.
Companies that really get emerging trends and why they matter can do more than just keep up with change. They can be the ones setting the trends that define their industries for years to come.
Mastering trend intelligence not only gives companies the power to respond to consumer behaviour faster.
