The real top 10 for 2010

Last week, I was invited by the Philippine Retailers Association to be a guest speaker at the 18th National Retail Conference and Expo (NRCE). My topic was Retail Trend Forecasting for 2010. It felt very similar to those small-talk moments when a lola, tita or an old friend would drill me about “what’s in?” and “what’s out?” except, this time, it was all serious business with high-tech projectors, video cameras, spotlights and industry vanguards in attendance. I knew I had to do my homework, so I researched and edited, researched again and edited some more, until I arrived at a trim but comprehensive 2010 forecast. 

The ironic thing is, after I had finally finished weeks worth of research, it dawned on me that the real trends we face today do not involve hemlines, necklines or hairlines, but the most basic of necessities. Exponential environmental degradation, food crises, continued health problems, epidemics, strange weather patterns are the real trends we face in 2010.   Our lives and our planet are in peril — seriously. Two things became glaringly clear to me: retailers must find more responsible ways to influence consumer behavior, and consumers need to find more responsible means of consumption. 

Now that’s kind of a dilemma because, since my first day in fashion school, I have been trained to design, design, design so people can buy, buy, buy. And, in all honesty, I love to shop, shop, shop! Consumption fuels our business. But I believe that the time has come to start re-shaping our business and what sustains it. 

So the questions now are: How do we continue to profit without hurting our planet and ourselves? How do we ensure that our profits also translate into profit for our environment and our health? How do we encourage innovation, creativity, and design without sacrificing consciousness? How do we enjoy one thing without sacrificing something else?

It’s all about being wholistic now. Everything we do is connected to everything else.

Here are the top 10 macrotrends that will influence the retail industry, ranked from important to most important.

10. Fundamental shifts in consumer behavior - The idea of extended value is key.

Consumers are now more focused on quality, service and value in equal measure. They want to be sure before they buy so they research, get information and rely on a lot of media before making their choices. In fashion, for example, customers are looking for hardworking fashion pieces that are versatile.

9. Creativity through limitation and exploration - During hard times, people are at their most creative as they need to work with limited resources.

8. Importance of brand strength and upgrading - This is the time for brands to invest in differentiation. The biggest opportunity lies in building brand positioning and upgrading.

7. Designer collaborations – Retail brands are now into double branding, collaborating with well-known designers or celebrities.

6. Techno lust - There will soon be the introduction of very low-cost PCs, more expanded internet access, even on planes, trains, mobile phones, automobiles. The online revolution will remain the biggest business story of this decade.

5. Instant feedback generation - This is a culture in which advice, recommendations and comments are only a few clicks away. Everything will be a point of public discussion. So retailers should not forget one of the best advertising tools: gossip or word-of-mouth.

4. Consumer collaborations - This involves mass-customization. This is no longer a generation of passive consumption. The customer is constantly connected and involved.

3. The rise of the ethical consumer - Consumers are looking for trust and transparency about our products. They are interested in the good, the bad and the ugly about the back office, supply chain, manufacturing and marketing of retailers, not just the product.

2. Deeper luxury - There is a need for retailers and suppliers to incorporate social and environmental concerns into high-end brand core values and business practices. Consumers are willing to spend extravagantly on highly-unique products and services. They want to test-drive products requiring producers to perform at the highest standards.

1. Global green movement - The green movement is becoming more global, less niche. The new mantra is reduce, reuse, recycle, regulate. There are more partnerships between retailers and consumers and more government regulations.

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Let me hear what you have to say. Email me at Top10for2010@gmail.com.