A trend is a particular style, activity, or idea that gains popularity over time. Often, they start small and gain a significant following, but they can also be short-lived fads.
A trend can be inferred from data and can be depicted as a linear or exponential pattern. Linear patterns show a steady increase or decrease in product sales over time, while an exponential pattern shows rapid growth over a short period of time.
Trend analysis can be helpful for business professionals who want to track the market and see how consumer preferences are shifting. It can also help to identify the best time to launch a new item or design and ensure that it adheres to current trends in order to maximize its potential success.
Whether you’re a business professional or a retail store owner, it’s important to understand the different types of trend analysis so that you can use them to your advantage. This includes knowing what type of trend to expect, determining how long a trend will last and understanding when it’s safe to trade.
When to Conduct a Trend Analysis
One of the most common types of trend analysis is forecasting, which is used to determine how the market will react to a particular product or style. This method can be based on economic factors, societal shifts and other key factors that influence the target market’s decision-making process.
In addition to predicting the future, trends can be useful in identifying changes in consumer perceptions, which may indicate that something is no longer popular or desirable. These can be useful for adjusting pricing, marketing strategies or production processes in response to the market’s changing needs.
How to Perform a Trend Analysis in Excel
To calculate a trend, you need to first create a chart for the data that you’re analyzing. You can do this using a simple line chart or a more elaborate scatter chart. Once you have created the chart, you can then add a trendline to it.
The easiest way to do this is with the TREND function. This function can return a single new y-value, or it can be entered as an array formula. When you enter the formula, it will be enclosed in
If you wish to calculate the trend for a larger range, you can include more than one set of new y-values. This can be done by including a
When you’re creating a chart for the trend, make sure that you have the correct time scale selected. You can choose from index, calendar or clock for this. Once you have chosen a time scale, select the data that you’d like to analyze and click OK.