Strategy and general management
consumer behavior, technology, trends, digital revolution
Trends, including those that seem peripheral, change consumers' aspirations, attitudes, and behaviors in ways that may not be obvious. The digital revolution, for instance, has led people to value offerings that provide instant gratification and help them multitask. This is as important for a company that sells sports shoes as it is for one that sells video games. There are three strategies for addressing the impact of trends: Infuse aspects of the trend into the category to augment traditional offerings, as Coach did with its lower-priced, youthful Poppy handbags. Combine aspects of the trend with attributes of the category to produce radical offerings that transcend the category, as Nike did with its Nike+ sports kit and web service. Counteract negative effects of the trend by developing products and services that reaffirm the category's values, as iToys did with its ME2 video game, which encourages children to be physically active.