They are part of the revolution which has seen a large proportion of Aussies continue to earn a living from home, relocate out of cities and take precautions to reduce their risk of viral infections.
The forecasts come from Davie Fogarty, Founder and CEO of Davie Group, the fast-growing company behind brands The Oodie, Calming Blankets and Pupnaps.
He has amassed a cult-like following in the last three years. Mr Fogarty was also recently added to the AFR Young Rich List, with Davie Group having turned over $182 in the last financial year.
“There are several key trends that will emerge, or grow further, that will drive a good amount of consumer spending,” he said.
“The impact of the COVID pandemic has seen more Australians embrace the indoors, changing their behavior and clothing choices as a result.
“Businesses are similarly pivoting to meet these new needs, while the emergence of new technologies is drumming up consumer demand in new areas and also helping young entrepreneurs break into different industries easily and successfully.
“At Davie Group, I am looking at ambitious ways to continue expanding our existing brands and acquiring new ones. I expect other business owners to similarly look at how they can evolve, grow and ultimately succeed next year and beyond.”
Mr Fogarty shared his nine consumer trends for this year:
1. Loungewear will enter our workplaces and social lives. Now that hybrid working arrangements are widespread, more Australians will place an importance on and invest in lounge-style clothing, such as slouchy pants, track pants, sweats, tees and comfortable slip-ons or sneakers. There will be some ‘blurring’ between what we wear to bed or lounge around in at home and what we wear out. Seeking comfort over fashion will be embraced more widely as people and their employers become more used to people earning a living from home.
2. Pet accessories will boom. As Australians have spent more time at home, pet ownership has increased significantly in the last two years, with 69% of Australians now owning pets and 19% of pet dogs and 24% of pet cats obtained during the pandemic. With more people working from home in the company of their pets. Mr Fogarty’s own pet bed brand Pupnaps saw sales increase by 447% in a year.
3. Bedrooms will become decentralised. He forecasts that Australians will move away from the bedroom as a place solely for rest and relaxation, as rooms become multi-functional. Australians will move to other areas of the house to read, relax and nap. He predicts more of us will invest in accessories usually associated with bedrooms - such as pillows, cushions, throws and candles - for living rooms, decks, rumpus rooms, studies or outdoor living areas.
4. Self-care will become a priority. He expects more Australians to prioritise their mental health and self-care needs to de-stress and reduce anxiety over the next year. Consumer demand for products and services that deliver on comfort, wellness and happiness will grow in 2022. Consumers will seek physical products that provide relaxation and a means of ‘escape’, along with experiences and services, such as spa treatments in and out of the home.
5. Online shopping will grow steadily. More consumers and retailers have moved online during the last two year. He expects continued growth in eCommerce and social commerce and more brands will embrace different platforms to attract new customers and sales. Viral social content designed to convert sales will grow, particularly as apps such as Tik Tok rise in popularity. Influencers will also continue to be a powerful tool for brands to drive sales online.
6. Outdoor activities and social gatherings will grow in popularity. More Australians have been embracing outdoor spaces, which are less affected by lockdowns and present lower infection risks. Since March 2020, a third of Australians prioritised their physical health and 89% engaged in activities to improve their health. This trend will continue in 2022, along with a demand for outdoor equipment and products. Identifying this trend some months ago, he had the foresight to acquire Outdoor Play, a US-based company specialising outdoor equipment and activewear.
7. While more Australians will enjoy the outdoors during the day, ‘nights in’ will continue in 2022. Australians became accustomed to staying in during the pandemic, improving their homes to increase their enjoyment at home. Renovation spend increased by 83%, while Australians also invested more in revamping kitchens and outdoor spaces, such as patios, terraces and decks. More Australians will shift their focus to entertaining in the home. Home entertainment and homewares will also be heavily invested in rather than spending on social outfits and nights out at restaurants.
8. Younger generations will gravitate towards eCommerce entrepreneurship. He predicts a growing appetite among young Australians for entrepreneurship, particularly in the eCommerce world. He said barriers of entry were shrinking. “It is easier and more affordable than ever to start an eCommerce business. Entrepreneurs used to spend a lot of time and money creating eCommerce stores and apps. However today, creating an app and eCommerce store is now as simple as the click of a button.”
9. More brands will accept crypto. Cryptocurrency gained significant momentum this year and Mr Fogarty predicts it will become an accepted payment method by more businesses in 2022 and beyond. One of his own brands Pupnaps now accepts crypto payments and more Davie Group brands will follow.
