Let’s have a look at three global trends impacting business:
As Baby Boomers and Millenials grow older, shifts in the habits or life status of these groups will change business and the world as a whole.
Baby Boomers (people born 1944-1964) are now reaching their retirement years in masses which means their relationship with money and possessions changes from accumulation to liquidation. People born in this time have collectively had a massive impact on economies.
“They are moving from income earners and taxpayers to pensioners and welfare recipients. They are shifting from wealth accumulation to wealth liquidation. This trend will impact financial markets, economies and government policy.”
Millennials, on the other hand, are heading into management roles, starting families and finding homes.
“They believe in “access over ownership”, choosing to stream music rather than own albums and preferring Uber and AirBnB over cars and holiday homes. The business models of the past simply don’t cut it with this group.”
“Governments will struggle to generate taxes to sustain the normal spending and borrowing habits of the past.”
Governments have historically been bounded by a geographical location, but given large corporations act in a borderless fashion because of digital advancements – taxation is becoming more difficult.
In the past, when governments failed to collect sufficient taxes from corporations, they were able to compensate from individual worker income tax. A combination of outsourcing cheap labour to foreign countries and a freer movement of people living and working in foreign countries, this will create friction.
Consumption to Connection
Successful businesses don’t just sell a commodity. A highly competitive marketplace has forged a new way of doing business, where there is an emphasis on creating a strong connection between the business and the customers.
“Consumers want meaning, they want to see businesses that solve real problems and even tackle social issues. As we move into the 2020s, every entrepreneur will need to articulate what they stand for or stand against or face being bland and commoditised.”
Resources: Irish Tech News