5 Market Trends News Headlines You Need to Know in 2021
If 2020 has taught us anything, it’s that change can happen, and it can happen fast. With the pandemic, numerous industries and sectors had to adjust along with the demands of the market. But even as we begin to emerge from the pandemic, businesses must remain vigilant about the trends shaping the market and adjust accordingly.
This article highlights the five market trends and news headlines that every business professional should know about in 2021.
Trend 1: Digital Transformation Acceleration
Digital transformation has been an ongoing trend over the last few years, but 2020 saw an unparalleled acceleration. With remote work, online shopping, and digital communication now the new normal, companies need to invest in technology, digital tools, and platforms that enable them to remain competitive. Businesses will need to establish secure and reliable digital infrastructure to support remote work for employees, online shopping experience for customers, and efficient supply chain management.
According to McKinsey, digital transformation programs were condensed from multiple year programs into mere months, promoting unprecedented progress towards digitalization. Cloud adoption also saw a rise, being the fastest growing business over the past year with a 37% increase in usage.
Trend 2: The Rise of E-commerce
The shift to e-commerce is not new, but COVID-19 heavily accelerated its growth, and its impact will remain strong in 2021. E-commerce has become a lifeline for businesses seeking to remain open and operating. The pandemic has changed the way people shop and will continue to do so going forward. Therefore, businesses must meet customer demands by providing fast and hassle-free e-commerce solutions.
According to the latest data from Statista, global e-commerce sales are expected to reach 4.2 trillion by the end of 2021. As such, businesses who fail to seize the opportunities in e-commerce or neglect to adapt to customer demands will be at a disadvantage relative to their competitors.
Trend 3: Emphasis on Sustainability
Environmental sustainability is a hot topic across industries, and businesses that prioritize sustainable practices will have an edge over those who don’t. In recent years, younger generations’ preferences have driven business trends, and among them, sustainability is top of the list. Customers are becoming more aware of how their consumption and how their purchasing habits impact the environment.
According to a survey by Nielsen, 66% of global customers are willing to pay more for products or services from brands that demonstrate social and environmental responsibility. As such, businesses should prioritize sustainability efforts to meet the growing demand for eco-friendly products.
Trend 4: Increased Focus on Diversity, Equity, and Inclusion
Diversity, equity, and inclusion (DEI) are essential components of a fair and competitive workforce that reflect local, national and international labor forces. In recent years, businesses have placed a higher emphasis on DEI in response to public sensitivities toward inadequate representation, particularly among minority groups. In the last year alone, the Black Lives Matter movement has increased the urgency for companies to focus on DEI issues.
Therefore, it is more crucial than ever for companies to adopt DEI initiatives, actively recruiting employees from diverse backgrounds and investing resources into creating an inclusive workplace culture. According to a McKinsey report, companies in the top quartile for ethnic diversity are 36% more likely to perform better financially.
Trend 5: The New Normal of Remote Work
Remote work has become the new normal due to the pandemic and is likely to remain so in 2021. Businesses need to adapt to this new working model to keep their employees productive and satisfied. While remote work presents plenty of advantages to employees, businesses need to establish remote work policies that provide employees with access to the same resources and support as they would have in a traditional office setting.
Removing the hierarchical structure may also be beneficial, with employees and managers taking on shared responsibility for tasks and objectives. As such, businesses must create a supportive culture that empowers employees to set and achieve goals while remaining connected to their team, clients, and goals.
Conclusion
The world of business is always evolving, and staying on top of industry changes is vital for success. Keeping up with market trends and news headlines is particularly relevant in 2021, where ongoing changes in the industry are becoming the norm. With digital transformation accelerating and e-commerce on the rise, businesses that prioritize sustainability and foster diverse and inclusive workplaces have a competitive edge.
Embracing these trends will help businesses remain competitive and agile, despite the dynamic environment we find ourselves in. What’s more, remote work is here to stay, with businesses needing to find ways of adapting to the new normal of work to succeed.
