Business is constantly changing and evolving. It’s up to enterprises and companies across the world to pivot and adapt accordingly given the context, situation, and new demands of the consumers. As a result, we’ve seen the use of statistics and tools such as STEEP analysis and rigorous market research to conceptualize new business frameworks, roadmap novel technology, and achieve sustainable business goals to stay competitive.
However, since the impact of the global pandemic on the world economy, we’ve seen some of the most rapid transitions in the socio-cultural context of the business environment. Apart from businesses and enterprises that we’re crippled financially, we now face the challenge of adapting to new sociocultural trends here in 2021. Today, we’d like to explore the current trends affecting the markets and how you can take advantage of these changing times.
Why Does The Sociocultural Perspective Matter?
Usually, the pre-pandemic business landscape was more concerned with growth, expansion, efficiency, brand-image, and innovation, and while all those still matter today, their values are now heavily reliant on the sociocultural perspective. Therefore, it is imperative to a company’s success that they acknowledge the sociocultural perspective in the decision-making process and understand the changing values of consumers in the new normal.
- Understanding Current Consumer Psychology And Behavior: Number one, the sociocultural perspective deals with consumer psychology and behavior, an integral variable in a consumer’s buying process. Failure to comprehend your target audience is akin to deliberately cutting off your life support and puts you at risk of waning business performance. Customer attitude and buying behavior have shifted since the pandemic, and businesses need to acknowledge and adapt to those changes.
- Identifies Potential Risks And Opportunities: Number two, looking at the external business environment from the sociocultural perspective highlights potential risks and opportunities for the company. By scanning the business environment, a market can identify which opportunities provide the most value gained and which external factors pose a threat to the enterprise’s longevity. As a result, you can prepare better and earlier if dire circumstances arise or when opportunities present themselves.
What’s Happening Today?
With those reasons established, it’s important that we shift our focus toward the current sociocultural trends affecting the market today. And, while these have been present since the first quarter of 2020, it’s still not too late to pivot, especially now that we’ve gathered our bearings in 2021. Also, do note that these trends have distinct effects on industries, so look at it from your business environment.
#1 Growing Health Consciousness
It is without a doubt that consumers worldwide are growing more health-conscious with each passing day ever since the health and safety concerns alerted by Covid-19. As a result, more and more people are valuing products and services that seek to improve or can guarantee their health and safety. Therefore, businesses must market this single-defining aspect.
- Rapidly-Growing World Of Personal Health: The personal health industry is among the most rapidly-growing markets given the global context. Since the effects of the coronavirus can be mitigated with a healthy body and strong immune system, we’ve seen a rise in personal fitness, the purchase of vitamins and supplements, and more people valuing their health.
- A Matter Of Both Value And Quality: From a more general perspective, consumers are moving away from the quantity vs. quality mindset, and the buying process is now leaning towards both value and quality. For example, a consumer would go to great lengths to guarantee that a drug has seen successful permeability test results or be detail-oriented with every ingredient sourced and used in a product. Therefore, quality assurance is a must more than ever.
#2 Increasing Environmental Awareness
The global pandemic has also strengthened the call for sustainable products and business practices, as more and more consumers call for environmental awareness and transparency in the environmental impact of operations. Green marketing, recycling, and resource optimization are becoming more than just slogans and have now become a testament to a healthy brand image.
- Eco-Minded Entrepreneurs: We’re also seeing a surge of eco-minded entrepreneurs that create startups solely dedicated to solving environmental challenges and industry professionals changing how the fundamental processes are achieved. From an administrative perspective, such as green human resource management to brand-new technology, businesses must integrate environmental awareness into their business framework.
#3 Rising Niche Markets
Last but not least, we’re witnessing the decline of mass markets and the rise of niche markets where more and more consumers value personalized products and services. Of course, while there’s still a semblance of criteria and general standard to follow, this norm is becoming more blurred as people prefer companies that can provide specific solutions. As a result, this trend allows even SMEs to increase their market share within industries dominated by giants.
Using The Sociocultural Environment To Your Advantage
In conclusion, it is necessary to a company’s success that they acknowledge these trends use the sociocultural environment to their advantage. So, don’t let this wave of opportunities leave your grasp. Take the leap of faith and adjust your risk-appetite to the new normal.