2015 was a big year for small businesses, with a record number of SMEs (5.2 million) operating in the UK. Developments in technology and consumer demand for a more personal, individual brand experience have combined to create a melting pot of creativity and opportunities for small business owners. So where does the market go from here? What are the trends to look out for in 2016, and which brands will be making waves in the months ahead?
“Unburdened by legacy or bureaucracy, smaller brands are able to deliver the authenticity and charisma that today’s consumer increasingly seeks,” says Lee Rolston, strategy director at branding consultancy jkr. “2016 is going to be a breakthrough year for a number of these challenger brands in a few key sectors.”
Technology and networking
Rowena Cumner, marketing manager, fashion and creative at MOO, named social network The Dots as her one to watch. “It’s an amazing professional networking platform for the creative industries; kind of like a creative version of LinkedIn,” she explains. “What I love about the site is they’re really passionate about empowering creators to collectively create a stronger, more productive and diverse sector.”
“The creative industries are so valuable here in the UK, generating £76.9 billion a year,” Cumner continues. “While The Dots is only a year old, it’s been making huge waves across the industry - having just completed an investment deal led by advertising legend Sir John Hegarty. As more and more traditional roles get automated by computers and the value of creative skills rises, I wouldn’t be surprised if The Dots doesn’t start giving LinkedIn a run for it’s money.”
Bobbie Andrews, group director for innovation and technology at Lick Creative believes that virtual reality will be another strong trend for the coming year. “A major focus of this year’s CES (the global consumer electronics and consumer technology tradeshow) was the building of momentum around virtual reality technologies, and the advertising worlds are often the first to seize on the potential of new technology to engage with audiences,” he says.
“Given the current swell of interest in all things virtual reality after the recent, long-awaited announcement of pre-orders for the Oculus Rift, I think Visualise are likely to have a strong 2016 ahead of them. They are virtual reality specialists, and have already run immersive work for Thomas Cook which lets holiday makers preview potential resort locations.”
Retail
Laura Tan, head of strategy at Brand Union identified lingerie brand with a difference, THINX, as her one-to-watch for 2016. “The so-called ‘period panty’ has already caused quite a stir in the US with its divisive advertising, and has big ambitions for 2016,” she explains.
“THINX is armed with everything it takes to be a successful brand today: the product itself is innovative (it was named one of TIME’s best inventions of 2015), one of the business’s co-founders [who founded the business with Radha Agrawa and Antonia Saint Dunbar] is a feisty female entrepreneur and the tone of voice captures the irreverent spirit of the modern-day empowered woman. It even has a social cause at its core. For every pair sold, THINX donates to a charity providing sanitary pads for women in Africa. Think TOM’s shoes but for feminine hygiene.”
Food and drink
Alasdair Lennox, EMEA executive creative director at FITCH, believes that London-based, family brewery Fourpure has a promising year ahead.
“The brand is one of a number of micro-breweries that are part of the new ‘Beermondsey Beer Mile,’” he says. “Fourpure really stands out by canning its beers as opposed to using the normal glass bottles. This quality, tasty product has a clear-headed brand philosophy, including a huge focus on sustainability, and a visual language that cuts through the expected artisan, hipsters clichés.”
Lennox believes that the market for smaller craft alcohol brands isn’t going to slow down. “FourPure has been designed for growth. Growth that will set it up nicely, given the recent interest in British craft beer from global breweries like AB InBev and SABMiller.”
Lee Rolston at jkr agrees: “The December 2015 acquisition of Camden Brewery by Anheuser-Busch pointed to 2016 as a tipping point in this sector. The spirits sector is overflowing with beautifully crafted, authentic, and charismatic brands like Half Hitch and Sipsmith gins, and this is posing a major challenge to established players.”
Health and wellbeing
Keep stocking up on those green juices and clean eating cookbooks: the fashionable health and wellbeing sector shows no sign of slowing down in 2016. “Health and wellbeing is evolving, as niche health and nutrition issues enter the mainstream. WH Smith is now stocking Graze boxes, taking shelf space once devoted to confectionery,” explains Rolston. “9BAR and Nakd are examples of credible brands that are well placed to ride this wave. We expect to see several major acquisitions in this sector.”
Design
Last but by no means least, the design sector is embracing ever-more creative ways to communicate and commemorate. A great example of this is Massif Central, highlighted by Rowena Cumner of MOO for its unusual, beautiful niche approach.
“James and Howard at Massif Central are doing really amazing things with infographics - basically Great Achievements, Illustrated,” Cumner explains.
“They collect data from cycle rides and make these really beautiful posters from the data; it’s very minimal from a distance - they often just look like ink blots - but when you get up close you see all the details of the ride; the distances, the speeds, the hills, and the stuff that happened along the way.
“This doesn’t just have to be about cycling, illustrating the highs and lows of your business would make a great print!”
This advertisement feature is paid for and produced to a brief agreed with MOO, sponsor of the Guardian Small Business Network’s Branding hub.
