DIY Spas, Asian Chic, and Precautionists: Retail Trends for 2007

As consumers move to take more control over all aspects of their harried lives, we’re seeing dramatic changes in media, marketing, and advertising—consumer-generated ad content is just one example. This desire for control on the part of shoppers has led to changes in retailing as well, with the rise of multichannel commerce a case in point.

Other changes, though, are more subtle. Retailers that can capitalize on the emerging trends can expect the most growth, with much of it from nontraditional sources.

Exactly what trends are we talking about? Here’s a list:

Do-it-yourself spas More and more people want to "spa" on their own. The desire for privacy and their own space encourages them to learn how to incorporate the spa experience into their everyday lives.

Estrella Spa at Viceroy Palm Springs in Palm Springs, CA, offer an Ice House Treatment, in which the guest is provided with all the necessary supplies and expected to perform the protocol herself. We’re also seeing more entrants into the home spa products market, such as the recently launched Akhassa, which is dedicated to bringing the Asian spa experience to the American home.

Feeling the need for speed: disruption in fashion It no longer takes months for runway trends to trickle down to the masses. H&M, Zara, and Topshop are three European chains that boast of being able to translate and merchandise runway trends for a mass audience with production times of less than 30 days. And home-grown retailer Wal-Mart hosted "Rock the Runway" in September as part of New York Fashion Week, showing clothing that was highly reminiscent of lines shown by Proenza Schouler and Roland Mouret.

Green is good Eco-awareness is only going to become more widespread, is here to stay as evidenced by waiting lists for the Toyota Prius and the success of Al Gore's documentary, "An Inconvenient Truth."

In the apparel and footwear sector, Nike recently announced that it figured out how to remove the greenhouse gas from its sneakers, and Levi Strauss is introducing Eco jeans, its first organic-cotton line. According to Organic Exchange, a nonprofit advocacy group, demand for organic cotton by clothing makers is increasing at an annual rate of 93%; it projects that sales from organic cotton will be $2.6 billion by the end of 2007. Vendors ranging from American Apparel to Wal-Mart now offer clothing under the organic-cotton banner. What’s more, fibers made from wood pulp, bamboo, seaweed, soy, and corn blended with luscious organic silks and cashmeres are becoming a fashion staple.

On the beauty front, the organics market has grown 15%-20% in sales each year over the past nine years. Increasingly, beauty products are formulated with ingredients that are food-grade, natural, chemically free, and organically produced. Jurlique, an Australian skincare company, has taken this approach since 1985 with the goal to grow the "purest skincare on earth" because "your skin eats too." Von Natur aims to extend vegan living, while NOe Cosmetics uses only organic, food-grade ingredients in its formulations. And even Wal-Mart recently announced that it will start selling natural, organic products. Wal-Mart's interest in natural and organic personal care is indicative of the shift taking place in the mass industry as a whole.

The rise of the "precautionary principle" In their desire for control, “precautionists” are seeking optimal safety in everything from cleaning products to toiletries. Precautionists swap chemical products for vinegar and water and leave their shoes at the door so that they don't track contaminants into the house. They sleep on cotton sheets, eat organic food, and buy chemical-free toothpaste and deodorant. The key to marketing to precautionists is to encourage them to lobby for a better, safer environment but to also encourage them to enjoy life.

Asian chic In the next 10 years, as many Americans will visit China as will travel to Europe. As was the case 20 years ago, when they brought back a taste for things French and Italian from their travels, they are likely to embrace Asian themes. Already apparel and home décor brand Shanghai Tang, owned by Swiss luxury-goods conglomerate Richemont, aspires to be the bridge between East and West, with each collection reflecting a China-related theme. Always on the hunt for the newest, the greatest, and the freshest looks, French “Vogue” recently featured a Chinese model on its cover for the first time.

Chinese medicine is gaining mainstream acceptance in the West and as a result is being incorporated into beauty protocols. Leading hotels in Asia have recruited experts in Chinese medicine to design programs and are offering treatments to their guests. During the next four years, they expect to offer similar experiences in Chicago, London, and Vancouver.

Activewear as everyday wear Two-thirds of American women dedicate at least half of their closets to activewear, and they’re not saving the workout clothes for the gym. They are trading traditional sportswear for activewear as their casual apparel of choice. Going forward, activewear manufacturers will place much more emphasis on having a fashion point of view, which explains the recent partnerships between Stella McCartney and Adidas and between Alexander McQueen and Puma. American Eagle's new retail concept, Martin + Osa, is dedicated to the concept of fusing high-tech sport and casual sportswear. And actress Scarlett Johansson will launch a line of urban activewear next year in partnership with Reebok.

With high-tech innovation in performance fabrics and design, activewear is working harder than ever to keep its cool in the gym and on the runways. Thanks to casual Fridays, activewear has become a uniform for more and more Americans.

The branding of private label What appears to be an oxymoron is now true. A Brandweek article this summer noted that consumers are warming to Wal-Mart private-label brands. Eighty-two percent of consumers surveyed believe that store brands have closed the gap with national brands. Wal-Mart's Ol' Roy dog food is preferred over Purina. 7-Eleven now sells more of its private-label Santiago beer than it does Corona. About one of two fans sold in the U.S. is Home Depot's Hampton Bay brand. Retailers are beginning to recognize that they cannot simply rely on nationally branded products to draw consumers into their stores and sustain loyalty.

Patricia S. Pao is CEO of Pao Principle, a New York-based marketing consultancy specializing in the luxury goods, beauty, and retail industries.