9 Business Trends to Lookout for in 2024

The festive season in India is a critical period for businesses across all sectors. From clothing and jewellery to beauty products, this time of year sees a surge in consumer spending.

Last year’s festive period saw an impressive Rs 3.75 trillion in retail sales. As consumers gear up for celebrations, businesses have a golden opportunity to attract customers, boost sales, and strengthen brand loyalty.

To make the most of this season, staying ahead of the curve by recognising and capitalising on emerging trends is crucial. Here are six business trends to watch out for this festive season in India.

1. The Growth of Virtual Marketplaces 

With the rise of online shopping, e-commerce made up 19% of total global retail sales in 2023. Here’s how your business can keep up: 

• Build an Online Presence: Building an online presence includes creating social media profiles, mobile-friendly apps and websites, and enhancing e-commerce availability. 

• Attract Customers: Integrating platforms like Facebook or Google AdWords and engaging in digital marketplaces can also help widen your customer base and increase recognition. 

• Regular Updates: You should track your results, stay informed about current trends, and make changes accordingly. 

2. Generative AI Boosts Business Productivity 

Businesses are taking advantage of  generative AI’s many capabilities, including: 

• Creating Content: This includes writing or summarising texts, translating languages, analysing and categorising content, and more. It can also be used in advertising. 

• Generating Synthetic Data: AI can create statistically accurate synthetic patient data using real data, which can be used in healthcare research without infringing on patient privacy. 

• Software Solutions: AI solutions have made writing code faster and easier. 

3. Sustainable Business Plans 

A sustainable business stays afloat in the long term while prioritising environmental concerns and sustainable practices. With rising awareness of environmental issues, companies must consider Environmental, Social, and Government (ESG) and Corporate Social Responsibility (CSR) when planning their business models.  

Along with a focus on reducing their carbon footprints, businesses will need to pay closer attention to sustainable and transparent business processes, fair wages, protection of shareholder rights, and employee well-being. 

4. Integrated Business Planning 

Integrated Business Planning (or IBP) refers to a holistic approach to strategic planning. It combines various roles such as sales, finance, marketing, supply chain, IT, human resources, and others to collaborate and make informed decisions across all business units. The purpose behind this is to drive overall success. 

With the increased integration in the business world today, IBP is essential. It leads to better collaboration and trust between departments and can help businesses solve challenges. 

5. HR 

The popularity of remote work has led to some new trends in the HR field. These include:

• Remote and In-Office Work: Most employees prefer remote work, but some companies want to resume work in the office.  Companies must offer better compensation (including monetary perks and other benefits) to make in-office work more attractive.  

• Virtual Twins: Virtual twins (digital avatars of employees) can be taught to do specific tasks and work on their behalf. While this has perks, like reduced burnout, there are concerns regarding the ownership of rights to their output. 

• Skill Obsolescence: Rapid advancements in technology mean that some skills are becoming obsolete. As a result, employees focus more on upskilling, and businesses focus on hiring those with skills that can be applied across companies and departments. 

6. Skill-Based Hiring 

Skill-based hiring is a hiring process that focuses mainly on a candidate’s skills, with less emphasis on previous job experience and education. Employers look for specific skills and competencies for their job openings and evaluate candidates based on whether they have those skills. 

According to the 2023 State of Skills-Based Hiring Report by TesGorilla, more than 70% of hiring survey respondents preferred skill-based hiring. These skills can be categorised as sector-specific, behavioural, or technical. 

7. Supply Chains

Supply chains include the process of creating and delivering a product to the customer. They face many ups and downs caused by shipment delays, ESG regulations, and weather disasters. Some ways of mitigating risks include: 

• Using AI: AI can be helpful in supply chain planning due to its ability to analyse large amounts of data and make accurate predictions. Investing in data gathering is also important. 

• Focus on Micro-Fulfilment: Investing in smaller, disaster-proof warehouses located closer to customers can avoid upheavals in the supply chain caused by shipment delays. 

8. Business Expand Ads, Communities, and Commerce on Social Media 

Using social media for visibility is essential for brands and businesses, and its importance is expected to increase in the coming years. In fact, as of July 2024, there are more than 5 billion social media users worldwide, and many CMOs plan on increasing their spending on social media ads. 

Studies done by Accenture also indicate that social commerce will be more successful than traditional commerce. Therefore, to improve sales and engagement, businesses invest in creating social communities and incorporate social media ads and commerce. 

9. Data Security and Governance 

Data security and governance go hand in hand to ensure the safety and security of an organisation’s data. Businesses now collect massive volumes of data from consumers and others. It is essential to keep this information safe from breaches and ensure it complies with privacy regulations. Data governance is crucial for managing data integrity, security, and usability. This is especially necessary in areas where data quality impacts insights. 

Wrapping up

The festive season is a golden opportunity for businesses to boost sales, attract new customers, and strengthen brand loyalty. By keeping an eye on these six business trends, businesses can make the most of this vibrant and competitive period.

At Tata Capital, we offer business loans at competitive interest rates with flexible repayment terms. Opt for this loan to capitalise on these trends and grow your business this festive season.

Visit the Tata Capital website or download the Tata Capital app today!