Almost half of Welsh SMEs feel confident in their ability to spot trends, a new survey suggests.
To understand how SMEs are turning trends into revenue, SumUp surveyed 500 small business owners and decision-makers across the UK. The findings reveal how SMEs identify emerging trends, the impact of trend adoption on their business, and the risks involved in investing in trends.
Almost half (46%) of Welsh SMEs feel confident in their ability to spot trends. Of these, 8% are very confident, actively tracking trends and adapting their offerings, while a further 38% have some confidence but admit it’s challenging to judge which trends are truly relevant to their business. Meanwhile, 4% struggle to identify trends at all, and another 4% don’t track them.
When it comes to where SMEs look for inspiration, 42% discover new trends through customer requests or feedback, highlighting the importance of listening to customers and understanding what people actually want, often revealing new market opportunities.
Furthermore, almost a third (31%) turn to social media, which has become a place where consumers often create and share new trends, and businesses look for opportunities to join in.
Other ways that small businesses learn about emerging trends include industry news and events (23%), analysing their competitors' offerings (12%), and through their suppliers or partners (12%).
8% of Welsh SMEs admit they do not seek out new trends that could have an impact on their business.
For small businesses, embracing new trends can be a risk. With limited budgets and resources, many lack the financial flexibility to invest or experiment with trends that might not deliver a return.
When asked about the biggest risk associated with following trends, more than a third (38%) of SMEs in Wales said the financial risk is often too high, while 15% worry about investing in stock and materials that could end up unsold.
Furthermore, almost a quarter (23%) worry that they could be wasting their time on trends that end up becoming short-lived fads, and 12% say they might be too late to jump on a trend, and don't want to end up looking like they are copying their competitors.
8% said one of the biggest risks in association to trends is missing them altogether and appearing out of touch.
For businesses in Wales that have experimented with trend adoption, over a third (38%) reported a positive impact on their business. Of those, 4% said they experienced a significant boost, while 34% experienced a moderate positive impact on sales figures.
Meanwhile, 12% of SMEs reported no real measurable impact, and a further 14% said the impact was negative.
Half (50%) of SMEs expressed confidence in their ability to spot trends, with 13% describing themselves as very confident, actively tracking and adapting their offerings, while a further 37% said they feel confident enough to make occasional adjustments. Another 24% said they are somewhat confident but struggle to assess which trends are truly relevant to their business, while 15% admit to lacking confidence in spotting trends or not tracking trends at all.
When it comes to where SMEs look for inspiration, over a third (34%) turn to industry news and events, indicating a preference for sector-led insight. Meanwhile, 29% rely on social media, which has become a place where consumers often create and share new trends, and businesses look for inspiration.
Other ways that small businesses learn about emerging trends include customer requests or feedback (25%), assessing their competitors' offerings and success (21%), and through their suppliers or partners (18%). Interestingly, 14% admitted they do not seek out trends that could impact their business.
When asked about the biggest risk associated with following trends, 26% of SMEs said they worry about wasting time on short-lived fads, which can often leave them stuck with excess stock or materials that are difficult to shift. Furthermore, 15% of SMEs said the financial risk of following trends is simply too high, while another 13% worry about investing in stock or materials that could end up unsold.
SMEs also expressed concerns about whether trends will appeal to their existing customers or attract new consumers (13%), appearing to imitate competitors by adopting trends too late (13%), and diverting focus and resources away from their best-selling products (12%).
Only 18% of SMEs said they don’t associate risk with following trends.
UK SMEs that embraced viral trends reported positive outcomes. Over a third (34%) have had a positive impact from trend adoption. Of those, 10% said they experienced a significant boost, while 24% experienced a moderate positive impact.
Meanwhile, 15% saw no measurable change, and only 2% reported a negative outcome. Nearly half (46%) said they hadn’t adopted any new trends in the past year.
Corin Camenisch, Product Marketing Lead at SumUp, said:
“As champions of small businesses, our research highlights the unique challenges and opportunities SMEs face when navigating trends.
“Success can often depend on the ability to spot and act on emerging trends, whether it’s incorporating a seasonal drink to your menu or investing in viral products. We ran this survey to capture first-hand experience from SMEs navigating the process of turning trends into revenue.”
