Wednesday, 6. January 2010

Looking back - © Creative Commons, travelling steve (2007)
Scope
Six Canvas8 Thought Leaders share their thoughts on the trials and tribulations of the last 12 months. Unsurprisingly, the impact of the recession dominates trends – but tough times breed innovation, and the ensuing change in both people’s outlook and brand response has led to several interesting developments in technology, luxury, retail and advertising.
—-
2009 has been an incredible year of change and one that many brands and agencies will be keen to consign to history.
It was the year when engagement and authenticity became a prerequisite for brands, when people opted for choice over control and technology fulfilled its potential as a powerful agent of change – whether
it was the Iranian elections, Trafigura’s ’super-injunction’ or the #welovetheNHS hashtag in response to Republican scorn.
We’ve not seen people downgrading their lives in the same way as in previous recessions, or settling for lower quality products – but we have seen a reduction in quantity. People still treated themselves to luxury items but just less frequently, becoming increasingly judicious about how and where they spent their retail pound.
On the high street we’ve seen retailers continuing with recession-busting survival packages and smart responses that understand people’s changing habits. This resulted in a growth of luxury goods in smaller packaging and a rise of gourmet home cooking. The latter accelerated by an increased awareness in the West of the importance of nutrition, balanced diet and health concerns over obesity.
Against this backdrop online peer recommendation and real time feedback became the norm. Whether through UGC sites, peer recommendation offerings or Twitter there is nowhere left for brands to hide.
Consumers in the Western world have become increasingly cynical and less trusting of brands – Edelman’s Trust Barometer revealed 77% of US consumers trust brands less this year than last. Central to this have been financing scandals, greenwashing and heightened transparency through technology.
While eco and ethics have remained high on the agenda they have taken a backseat in people’s mindset to the more pressing concern of family survival.
We asked some of our Thought Leaders what stand-out changes they’d observed in the last 12 months.
Alan Moore on engagement
One of the greatest changes in my sector has been an awakening that we are not going back to the way things used to be! There is now a growing realisation that in this wired-up world, people and data are inextricably interwoven. In addition, I’ve noticed the intensifying pressure by legacy media and business upon existing legislation, for
example copyright law, to protect their industrial business models. I believe this will ultimately damage the long term economic future of this country.
Mandy Saven on retail
This year we saw the incorporation of Augmented Reality into e-commerce, advertising, packaging and in-store applications, effectively enabling consumers to view three- dimensional objects and garments superimposed upon a marker. This technology allows shoppers to ‘try on’ accessories and fashion items, without the hassle of the fitting room. In particular, we were impressed with www.holition.com (an AR application that could potentially change the way high-end jewellery is consumed) and www.zugara.com (where shoppers can ‘virtually fit’ clothing to their body shapes).
We have also seen the rise of more sophisticated, targeted and partnership-based pop-up concepts. For example, Gap’s revolving pop-up store, in New York, hosts a multitude of brands and retailers – and the roster has so far included non-fashion brands as well as high-end retailers. We’ve also seen pop-ups move into permanent stores, as retailers look to shake up their product mix. The concept has also been harnessed to bring a dose of art and culture to mass-market brands.
Lastly, we have recently been tracking the emergence of new – and often provocative – business models that allow consumers to make money as well as spend it. Crowdsprouting techniques used within physical stores, physical eBay stores, buy-sell-swap stores and underground supperclubs all point towards a new order. The boundaries are blurred between seller and consumer, online and offline, legitimate and underground – and the playing field has opened up for less established designers to trade in creative ways.
Lars Cosh-Ishii on mobile
While there are several interesting stories for 2009 in Japan’s mobile scene, the most significant development relates to the confirmation of next-generation wireless networks.
On June 10 the Ministry of Information and Communications (MIC) announced allocation of new spectrum for Long Term Evolution (LTE) operations based on approved business plans submitted by four Japanese telecom operators: DoCoMo, KDDI, SoftBank Mobile and eMobile.
Targeting commercial service launches in late 2010, and running through 2012. The combined budget for infrastructure for these new networks is estimated to top 1 Trillion JPY – or just over $11 Billion – by 2014. It was also forecast that, on average, 30% of the current subscriber base will migrate to take advantage of this “fiber-to-phone” speed increase within three years of initial deployment.
Alex Gordon on advertising and behaviour
The continued decline in spending on TV advertising and the continued rise and importance of digital advertising, and the richness & diversity of apps for mobile handsets. It is almost possible to run every aspect of one’s life from an iphone – and this will influence all forms of advertising and media including entertainment as they shift to fit within the smallest of frames on these devices.
The continuing search for greater insight into consumer behaviour and attitudes has seen the growth in 2009 of alternative research techniques to challenge the dominance of traditional quant & qual e.g. eye tracking, brain imaging, ethnography, online groups, and of course semiotics.
Mary Lou Quinlan on women in the US
No Jobs, No Jobs, No Jobs: women were stunned to find themselves out of work, or afraid they soon would be, even when they are good at what they do. Confidence hits the purse hard.
In addition, as their partners lost their jobs, there’s been the 77% of a loaf syndrome. Women became the breadwinners, adding yet another burden to an already overwhelmed life, but without paycheck equality. ‘Her money’ is a thing of the past. Amidst these mounting pressures women’s lives became something of a No Fun Zone: cutting back and redefining “the essentials” took precedence over rewards. What started out as a “Yes, we can” attitude has devolved into a cautious “No, we can’t.”
Marco Bevolo on the global luxury buyer
The economic downturn, of course. Luxury – as in ‘marketing bling bling’ – hit the wall, and without an airbag! People disinvested from mid-range, out-of-nowhere brands.
With less money and more insecurity, people have been returning to “the” luxury brands (Cartier, Chanel, Hermes…), the ones with solid roots, superior (hi)story (telling) and true core in terms of real value over the decades: luxury is back to being an investment, not a frivolity.
The urge to de-invest from stocks and similar has led to a rapid rise of top luxury products: this has been one of the best years for Ferrari. Lamborghini, on the other hand, being more of a toy-for-boys with less perceived lasting value, suffered.
Arvind Singhal on the Indian market
The Indian economy is expected to have grown by more than 6.5% in 2009. At the beginning of the year, people were still hesitant about the outlook for the year in view of continuous flow of “bad news” from rest of the world which found its way to the Indian media and impacted by tightening of budgets all round by different businesses and employers.
Against this background, the first big challenge for the Indian consumer was probably deciding whether “to buy or not to buy”. Few really lost jobs, and while there were salary cuts or wage-increase freezes in many organizations, the overall sentiment in the first half of the year was that of introspection and conservation.
India has been seeing a ‘what not to buy’ phenomenon for many years now where a relatively young, highly aspirational, and increasingly a “first time” consuming population is seeing an expansion of the categories of goods and services that they would like to spend money on increasing faster than their incomes. Hence, the consumers have been facing this dilemma almost every day as they experience this “category” collide and have to make choices. The third major trend is a redefinition of value. With newer, aggressive players in almost all categories of consumer products and services, “value” is getting redefined very regularly putting some pressure on the consumer to reorient themselves to these new definitions.
Related on Canvas8
Chris Arnold, ‘Eco then and in 2010: how will next year’s ethical buyer behave?’, 11 December 2009. Available here
Debbi Evans, ‘Impermanence as a rising cultural trend’, 16 October 2009. Available here
David North, ‘The authentic dollar: the secret of the anti-marketing market’, 11 August 2009. Available here
Scope
Six Canvas8 Thought Leaders share their thoughts on the trials and tribulations of the last 12 months. Unsurprisingly, the impact of the recession dominates trends – but tough times breed innovation, and the ensuing change in both people’s outlook and brand response has led to several interesting developments in technology, luxury, retail and advertising.
—-
2009 has been an incredible year of change and one that many brands and agencies will be keen to consign to history.
It was the year when engagement and authenticity became a prerequisite for brands, when people opted for choice over control and technology fulfilled its potential as a powerful agent of change – whether it was the Iranian elections, Trafigura’s ’super-injunction’ or the #welovetheNHS hashtag in response to Republican scorn.
We’ve not seen people downgrading their lives in the same way as in previous recessions, or settling for lower quality products – but we have seen a reduction in quantity. People still treated themselves to luxury items but just less frequently, becoming increasingly judicious about how and where they spent their retail pound.
On the high street we’ve seen retailers continuing with recession-busting survival packages and smart responses that understand people’s changing habits. This resulted in a growth of luxury goods in smaller packaging and a rise of gourmet home cooking. The latter accelerated by an increased awareness in the West of the importance of nutrition, balanced diet and health concerns over obesity.
Against this backdrop online peer recommendation and real time feedback became the norm. Whether through UGC sites, peer recommendation offerings or Twitter there is nowhere left for brands to hide.
Consumers in the Western world have become increasingly cynical and less trusting of brands –
Edelman’s Trust Barometer revealed 77% of US consumers trust brands less this year than last. Central to this have been financing scandals, greenwashing and heightened transparency through technology. While eco and ethics have remained high on the agenda they have taken a backseat in people’s mindset to the more pressing concern of family survival.
We asked some of our Thought Leaders what stand-out changes they’d observed in the last 12 months.
Alan Moore on engagement
One of the greatest changes in my sector has been an awakening that we are not going back to the way things used to be! There is now a growing realisation that in this wired-up world, people and data are inextricably interwoven. In addition, I’ve noticed the intensifying pressure by legacy media and business upon existing legislation, for example copyright law, to protect their industrial business models. I believe this will ultimately damage the long term economic future of this country.
Mandy Saven on retail
This year we saw the incorporation of Augmented Reality into e-commerce, advertising, packaging and in-store applications, effectively enabling consumers to view three- dimensional objects and garments superimposed upon a marker. This technology allows shoppers to ‘try on’ accessories and fashion items, without the hassle of the fitting room. In particular, we were impressed with www.holition.com (an AR application that could potentially change the way high-end jewellery is consumed) and www.zugara.com (where shoppers can ‘virtually fit’ clothing to their body shapes).
We have also seen the rise of more sophisticated, targeted and partnership-based pop-up concepts. For example, Gap’s revolving pop-up store, in New York, hosts a multitude of brands and retailers – and the roster has so far included non-fashion brands as well as high-end retailers. We’ve also seen pop-ups move into permanent stores, as retailers look to shake up their product mix. The concept has also been harnessed to bring a dose of art and culture to mass-market brands.
Lastly, we have recently been tracking the emergence of new – and often provocative – business models that allow consumers to make money as well as spend it. Crowdsprouting techniques used within physical stores, physical eBay stores, buy-sell-swap stores and underground supperclubs all point towards a new order. The boundaries are blurred between seller and consumer, online and offline, legitimate and underground – and the playing field has opened up for less established designers to trade in creative ways.
Lars Cosh-Ishii on mobile
While there are several interesting stories for 2009 in Japan’s mobile scene, the most significant development relates to the confirmation of next-generation wireless networks.
On June 10 the Ministry of Information and Communications (MIC) announced allocation of new spectrum for Long Term Evolution (LTE) operations based on approved business plans submitted by four Japanese telecom operators: DoCoMo, KDDI, SoftBank Mobile and eMobile.
Targeting commercial service launches in late 2010, and running through 2012. The combined budget for infrastructure for these new networks is estimated to top 1 Trillion JPY – or just over $11 Billion – by 2014. It was also forecast that, on average, 30% of the current subscriber base will migrate to take advantage of this “fiber-to-phone” speed increase within three years of initial deployment.
Alex Gordon on advertising and behaviour
The continued decline in spending on TV advertising and the continued rise and importance of digital advertising, and the richness & diversity of apps for mobile handsets. It is almost possible to run every aspect of one’s life from an iphone – and this will influence all forms of advertising and media including entertainment as they shift to fit within the smallest of frames on these devices.
The continuing search for greater insight into consumer behaviour and attitudes has seen the growth in 2009 of alternative research techniques to challenge the dominance of traditional quant & qual e.g. eye tracking, brain imaging, ethnography, online groups, and of course semiotics.
Mary Lou Quinlan on women in the US
No Jobs, No Jobs, No Jobs: women were stunned to find themselves out of work, or afraid they soon would be, even when they are good at what they do. Confidence hits the purse hard.
In addition, as their partners lost their jobs, there’s been the 77% of a loaf syndrome. Women became the breadwinners, adding yet another burden to an already overwhelmed life, but without paycheck equality. ‘Her money’ is a thing of the past. Amidst these mounting pressures women’s lives became something of a No Fun Zone: cutting back and redefining “the essentials” took precedence over rewards. What started out as a “Yes, we can” attitude has devolved into a cautious “No, we can’t.”
Marco Bevolo on the global luxury buyer
The economic downturn, of course. Luxury – as in ‘marketing bling bling’ – hit the wall, and without an airbag! People disinvested from mid-range, out-of-nowhere brands.
With less money and more insecurity, people have been returning to “the” luxury brands (Cartier, Chanel, Hermes…), the ones with solid roots, superior (hi)story (telling) and true core in terms of real value over the decades: luxury is back to being an investment, not a frivolity.
The urge to de-invest from stocks and similar has led to a rapid rise of top luxury products: this has been one of the best years for Ferrari. Lamborghini, on the other hand, being more of a toy-for-boys with less perceived lasting value, suffered.
Arvind Singhal on the Indian market
The Indian economy is expected to have grown by more than 6.5% in 2009. At the beginning of the year, people were still hesitant about the outlook for the year in view of continuous flow of “bad news” from rest of the world which found its way to the Indian media and impacted by tightening of budgets all round by different businesses and employers.
Against this background, the first big challenge for the Indian consumer was probably deciding whether “to buy or not to buy”. Few really lost jobs, and while there were salary cuts or wage-increase freezes in many organizations, the overall sentiment in the first half of the year was that of introspection and conservation.
India has been seeing a ‘what not to buy’ phenomenon for many years now where a relatively young, highly aspirational, and increasingly a “first time” consuming population is seeing an expansion of the categories of goods and services that they would like to spend money on increasing faster than their incomes. Hence, the consumers have been facing this dilemma almost every day as they experience this “category” collide and have to make choices. The third major trend is a redefinition of value. With newer, aggressive players in almost all categories of consumer products and services, “value” is getting redefined very regularly putting some pressure on the consumer to reorient themselves to these new definitions.
Canvas8 subscribers can access related reports on Canvas8
Chris Arnold, ‘Eco then and in 2010: how will next year’s ethical buyer behave?’, 11 December 2009. Available
here
Debbi Evans, ‘Impermanence as a rising cultural trend’, 16 October 2009. Available
here
David North, ‘The authentic dollar: the secret of the anti-marketing market’, 11 August 2009. Available
here