Business trends in 2024

2024 represents a challenging economic climate, so Healesville businesses must strike a delicate balance between caution and innovation to stay ahead. We've collated the latest research and data to provide a prediction of trends that are most relevant to Healesville Traders Association members. Advancements in technology and changes in societal dynamics represent unique opportunities for your business to transform and thrive in the years ahead. Businesses that prioritise adaptability will be well-positioned to succeed in 2024.

Business trend #1: Productivity is under the microscope

Improving productivity in 2024 will be about enhancing your omnichannel approach, stitching your online and offline worlds together to offer a seamless experience whether consumers are browsing on a desktop at home, using a mobile device while on the move, or wandering through a physical store. Improving your online presence and boosting your visibility will be crucial for businesses wanting to grow in a tight employment market and will increase efficiency and cost savings by reducing the need for service teams to manage your customers.

Business trend #2: Personalisation at scale

In an age of information overload, personalisation and customer-centric approaches will set successful small businesses apart. Businesses can tailor their products, services, and marketing efforts by leveraging data and insights to individual customer needs and preferences, fostering stronger customer loyalty. In 2024, personalisation is reaching new heights, thanks to the advancements in artificial intelligence (AI) and machine learning. Retailers can offer highly personalised shopping experiences, curating product recommendations and content that resonate on an individual level. This personalised touch enhances the shopping experience and fosters a sense of connection between the brand and the consumer.

Business trend #3: In-store experiences

The revival of physical stores is another intriguing trend. These spaces are no longer just transactional hubs but are transforming into realms offering unique, immersive experiences. Imagine stepping into a store that hosts DIY workshops, boasts cozy in-store cafes, or features augmented reality (AR) fitting rooms. These experiential retail spaces create destinations that offer much more than just products, turning shopping into an event.

Business trend #4: Wage cost growth could be a challenge into 2024

The wage rate for most retail workers increased by 4.6% on 1 July 2022. In addition, a higher employer superannuation contribution added another 0.5% to wage costs. This rate of wage growth is much higher than usual and reflected a higher inflationary environment when the Fair Work Commission set the wage increase. Looking forward, the prevailing level of inflation is even higher than 12 months ago, which could lead to retail wage rate growth of 5%-6% on 1 July 2023.

Business trend #5: Online likely to take share in 2023

Small businesses will prioritise creating valuable content, engaging with customers through social media, and implementing SEO strategies to improve their online visibility in 2024. With more consumers relying on digital channels for information and shopping, a strong online presence is essential. 2024 promises to be an exciting year for online retail, with social platforms reshaping product discovery, increasing customer expectations for personalised experiences, the continued rise of subscriptions, a shift in retention metrics, and the growing importance of AI and automation.

Business trend #6: Wellbeing is back

A survey of 4600 Australian and New Zealand small business owners and their staff has uncovered a dip in well-being, likely the result of a pandemic hangover and economic concerns. So, to retain staff in 2024, employers will need to offer flexible arrangements, valuing employees' time and harnessing the potential of an outsourced workforce. Entrepreneurs also need to be mindful of their workday and understand where they're spending their time, stay close to tasks they love, step back from low-value tasks that may be sapping their energy and look for opportunities to outsource or automate where possible. Some businesses are already taking these steps; in fact, 16% of small businesses surveyed say they've started outsourcing jobs that traditionally cause angst for small business owners, such as accounting, billing and chasing payments, inventory, marketing and optimisation. While outsourcing may not always seem financially viable, it can provide a return on investment that significantly outweighs the cost.

Business trend #7: Sustainability = business growth

Consumers are increasingly concerned about the environment, and small businesses are taking note. In 2024, eco-friendly and sustainable practices will be more than just a trend: they'll be a business imperative. From adopting renewable energy sources to reducing waste and using sustainable sourcing, businesses prioritising sustainability will attract conscious consumers and reduce long-term costs. As the green economy grows, there is plenty of evidence to show that green solutions often lead to bottom-line growth. However, beware of greenwashing your content, as consumers are getting better at spotting where companies pay lip service to environmentalism to divert attention from environmentally unfriendly practices. Brands that prioritise the health of our planet are not just seeing a growth in sales but are also building a loyal customer base that values their commitment to sustainability.

Business trend #8: Easing into AI

AI is set to inject both magic and mayhem into the future of work. Many businesses already use AI in the form of digital tools like Xero's bank reconciliation feature, which uses the technology to suggest matches between ledger items and bank statements. However, businesses have been more tentative about using generative AI. Generative AI can make a helpful writing companion for writing first drafts of emails, newsletters and presentations, illustrating, organising and categorising, tracking industry trends and reporting on industries and competitors. However, many business owners are concerned that the tech is outpacing regulation. Chief among their worries are data security, hallucination (the technology's tendency to fabricate untrue facts) and plagiarism. There are also growing concerns about AI ethics and its ability to achieve equity, diversity and non-discrimination. The Global Forum on the Ethics of Artificial Intelligence in February 2024 will begin to explore the opportunities and challenges posed by AI. In the interim, adopting AI in your business can improve efficiency and productivity, but we recommend doing so with care and caution.