Move over crystal ball. Retail’s looking glass is getting better with analytics in predicting brewing trends that are shaping up in the horizon.
Take Big Blue’s analytics. Previously, it was able to track the spread of trends geographically and chronologically. Now, even culturally.
By studying how online trends spread globally, IBM said it can provide insights into whether what’s trending on social networks is, or is likely to become, commercially viable.
One of these trends emerging in the horizon for IBM is a likely revival of ‘steampunk.’
"Steampunk, is a sub-genre inspired by the clothing, technology and social mores of Victorian society. Rooted in the designs of the industrialized civilization of the 19th century, it is a retro-futuristic style of fashion that is influenced by the works of Jules Verne, Nikola Tesla, HG Wells and more," IBM explained.
From 2009 to 2012, IBM said the amount of steampunk chatter has increased eleven-fold on Twitter, blogs, message boards and other social media. Since 2010, more than two dozen US department stores and specialty retailers have also become steampunk savvy.
In the next two years, IBM boldly predicts that this cultural ‘meme’ will shift from low production, high cost “craft” manufacturing to mass production.
"Major fashion labels, accessories providers and jewelry makers are expected to integrate a steampunk aesthetic into their designs in the coming year," IBM said.
How did IBM arrive at this conclusion? By using its new Social Sentiment Index, which combines sophisticated analytics and natural language processing technologies to gauge consumer public opinions from social media.
IBM said it analyzed more than a half million public posts on message boards, blogs, social media sites and news sources.
Highlights of the analysis showed that: 33 percent of online fashion chatter around steampunk can be found on gaming sites; 63 percent of fashion discussions around steampunk are initiated by individuals less than 30 years old; 55 percent of social sentiment chatter for steampunk fashion derived by blogs.
"Smart retailers are using social analytics to better understand, predict and shape consumer demand for “must-have” products before a particular trend gets saturated in the marketplace,” said Trevor Davis, Consumer Products Expert with IBM’s Global Business Services.
“By staying ahead of a trend as it develops, a retailer can more effectively control critical merchandizing, inventory and planning decisions. Technology can provide tremendous foresight to help businesses differentiate what is a fleeting fad, versus what is an enduring trend,” he added.