And what are they craving?
Decision making is largely constructed of two main components, logic and emotion. Impulse buying has traditionally capitalized on the latter of the two, tapping into the consumers’ emotional desires and moods to make purchases that don’t involve much thought.In this model logic follows emotion as consumers rationalize or justify their reason for making the purchase, whether it be big or small. As brands continually deepen their understanding of the consumer experience they will not only increase their revenue through impulse purchases, but open new In 2011, US$7.5 billion of US consumers’ money went towards individual impulse sized chocolate confectionary.opportunities to strengthen their brand with the consumers – creating long-term, profitable relationships.The Core ‘Impulse’ CategoriesWithin the food and beverage industry, the most common impulse purchase is confectionary; an affordable indulgence that brightens the day. In 2011, US$7.5 billion of US consumers’ money went towards individual impulse sized chocolate confectionary. Manufacturers like Mars, Kraft and Ferrero all plan marketing and distribution strategies around impulse purchasing. But with changes in disposable income has led to changes in impulse purchasing patterns. The question is what long lasting impact will this have.Shrinking Size and Lower Unit PricesChocolate and sugar confectionary along with chewing gum retail sales were up 3.4% in 2011. Brands like Kraft and Wrigley are hoping to make their impulse appeal even stronger with consumers by releasing gum packs with fewer sticks at a much lower cost. Trident and Stride currently offer 5-stick packs for 50 cents and Wrigley plans to launch a similar pack format this year. The goal is to land more pocket-change purchases, mainly from Gen Y and Gen Z targets.While these are small, inexpensive items they are enough to help consumers relieve stress and anger. With the added frugal mindset brought on by the economic downturn, these examples do not cost enough to give the consumer spending guilt. There is a sweet spot between spending guilt and buying something that gives the consumer a short but sweet delight. Brands need to understand where that opportunity lies, and importantly, which can be specific to their category.New Media Outlets for Impulse PurchasingImpulse buying could see a substantial increase as Smart TVs become more mainstream in the marketplace – and they are well on their way. In 2011, 17% of all TVs shipped in the US had Internet connection capabilities. The market is expected to continue to expand and reach approximately 123 A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumersmillion shipments by 2014. As these devices become more common and advertising media becomes more sophisticated it could open a new channel for brands to capitalize on a consumer’s emotional state influenced by a show to prompt them into an impulse purchase directly from their TV.A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumers based on emotional, impulse purchases that bring revenue in for the brand and delight to the consumer.
Technologies impact on impulse
Impulse buying is on the rise despite consumers’ penny-pinching mindset driven by the down economy.A late 2011 study reported 76% of over 1,000 British adults make impulse purchases. Out of that 76%, 77% of women and 71% of men stated those purchases happened when grocery shopping. Major pushes for impulse buying are due to advances in technology combining with mega trends like health and wellness, on-the-go, affordable indulgences, and lower overhead costs to brands. This blend creates new opportunities for every value chain member in the food and beverage industry. As these trends persist, brands can create new revenue streams by giving consumers a delightful experience through impulse purchases.Technology To-GoThere is a consistent blending of the virtual and physical retail world – and this includes the consumers’ wallet. Google has launched Google Wallet, which uses Near-Field Communication technology to allow consumers to use their phones as a tap-and-pay device at any MasterCard PayPass device. The application is still in an early phase of its lifecycle as consumer acceptance and retail availability both grow. One hurdle Wallet faces with mass adoption is the number of banks participating. Currently it is linked with MasterCard and a reloadable Google card, but the device needs more brands like Visa and American Express; as well as debit card capability.Another is the number of phones equipped with NFC, which is currently lacking. With an already impressive number of retailers supporting the Wallet system, this new payment method should continue to grow. More recently, it is expanding into five more US cities: Charlotte, Kansas City, Milwaukee, San Antonio, and Tampa. Connecting pay methods to smartphones streamlines the purchasing process, making impulse purchases more immediate and tangible.Transit... a Key Impulse Purchasing DestinationTesco’s South Korean-based grocery chain, Home Plus, has been capitalizing on consumers’ busy lifestyles and mobile technology by creating a shopping experience at subway terminals. Large posters mimic the grocery shelf with pictures of products that are labeled with QR codes. While consumers wait for their ride, they can scan and purchase different grocery items that will be at their doorstep by the time they get home. During it’s trial run, Home Plus reached more than 10,000 customers and saw a 130% increase in online sales. Surprisingly, such a system has not yet hit condensed US markets such as New York City, which has an average weekday metro ridership of over 5 million.By understanding the consumers’ daily journey, transit points and time between transit points, these grocers have been able to identify a profitable new business model whilst tapping into the impulse market. The chocolate confectionary market is just one portion of the impulse market and is expected to grow to US$19 billion by 2015....accelerate the consumers’ purchasing decision process, making impulse buying more convenient.Both examples accelerate the consumers’ purchasing decision process, making impulse buying more convenient, more impulsive. Brands need to continue to explore ways to streamline purchasing decisions and the barriers by syncing their products and services with technology and the consumers’ daily journey.
As sustainability bleeds into mass market products the question is how can manufacturers take advant
Ever heard of retail therapy? Did you know that only a third of purchase decisions are made ahead of time, outside the store? Since a key report by Knutson uncovered the basic neurology of impulsive purchases, recent studies continue to affirm alternating activation of pleasure and pain centers.Companies need to understand those strategies that lead to unplanned, or impulse purchases. This is especially important in a time of diminishing disposable income.The Impulse BuyImpulse buys satisfy the desire of the moment – often at a higher cost than the price tag. With today’s social climate of transparent information, consumers increasingly hold companies accountable for pollution, excessive packaging, and unethical employment practices. The question is – are we seeing a new breed of impulse products? And are they being influenced significantly by macro consumer trends? The answer is, inevitably, yes, at least for developed markets. Brand manufacturers need to develop strategies that increase market share over the short to medium term.The New ConsumerAs the sustainability meme spreads, more and more consumers aspire to be “green.” A pivotal study, “The Green Revolution” discovered “light” and “dark” green consumers. Dark greens– who insist on sustainability and gladly pay a premium—compose a mere 9% of shoppers. However, 89% identified as shades of “light green,” leaning towards green products while realistically balancing considerations like effectiveness, safety, and price. BBMG, took the concept to heart: they have released annual reports on the evolution of “light green” consumption for three years. Their 2011 report predicts a tipping point in green consumption, where the influence of light greens will finally scale true sustainability to mainstream consumption. The increasingly-knowledgeable light green consumers weigh many factors whilst purchasing, so their pain response could be tripped by a number of Although light greens do not research products, they remain fiercely loyal once they have found an effective sustainable product.considerations. Because environmental awareness has been on the social radar for a while, consumers face green fatigue and even toss around the phrase “green-washing.” Although light greens do not research products, they remain fiercely loyal once they have found an effective sustainable product. Socially connected, this group spreads the word of mouth to their friends via connected social media on mobile devices.Disdainful of advertising, this group trusts friend recommendations more than company claims, especially within Gen Y who as a core impulse purchasing demographic group crave realism and rely on peer advice.Impulse Without RegretOver 60% of all “green” product purchases are made on impulse, often out of simple curiosity.Over 60% of all “green” product purchases are made on impulse, often out of simple curiosity.In fact, 84% of light greens admit their first eco-conscious product was an impulse purchase brought on by curiosity and an impulse urge. And the environment is only one facet of sustainability – everything from workforce employment, to packaging, ingredients source and waste disposal is subject to scrutiny. Companies can use in-store contact points including, POS displays, or RRP to stimulate light green consumers’ curiosity, and even charge a higher price for products successfully positioned as sustainable.When Clorox first introduced their Green Works cleaning products, consumers gladly paid a 25% markup over conventional products. Even wading into the crowded Wal-Mart shelves, and even with the Recession forcing prices lower, the company’s market share continued to climb through this year to nearly 50%.Consumers get around green-washing by searching for signs of authenticity, like third-party certification of social and environmental benefits. This may be why 75% of consumers say a Fair Trade Label makes them feel positive about a purchase, and 30% say it increases purchase interest. (Harvard Research, 2011) The most important signal of sustainability in almost every single product category is packaging. It makes sense – not many will buy an item designed to help the environment if it comes wrapped in polluting layers.Sitting PrettyPackaging influences purchase even more than store atmosphere. People first notice color, then shape, and finally labels and logos. A sustainable product should hit those three notes. Color can be used as a cue. Consumers most likely associate green with sustainability, but too much green is perceived as green-washing. A distinct shape, like Method’s home and personal care products, can be made with earth-friendly materials to strike an authentic harmony. Finally, third-party certifications can be used to position the product as a holistically sustainable alternative.The Green Works product line features iconic natural images of flowers, accented with the sustainability cue, green. The traditional spray bottle prevents confusion about the product’s purpose. Finally, the Clorox logo adds credibility and trust – especially when combined with the Design for the Environment Certification.Taking it to the TribeThere are three key appeals to the new consumers: practicality, sustainability, and community. Light green consumers trust each other, and brands that enable communication between advocates will amplify this tendency. Clorox’s “Green Works” line includes a portal where consumers can post and discuss ideas for natural cleaning products. Beyond the web, emerging technologies let light green consumers explore and share sustainable products, or even punish unsustainable companies, anywhere. And as more and more people tune in to light green and sustainable consumption, companies will benefit or suffer in proportion to their efforts to court the new consumers. Companies that do not address light greens’ concerns will face social networks and media savvy. Just look at PETA’s sabotaging of Volkswagon’s Twitter campaign for signs of things to come.The New DesirePost-recession, consumers continue to demand fewer items of higher quality. From event give-aways to private-label groceries, less is more. A single item that will last twice as long can command a premium price. Using packaging to catch attention, including authenticity cues to overcome green fatigue, companies can seal the deal with a quality product. The combination will trigger an impulse buy, and create a foundation for customer loyalty rather than regret. The right positioning can overcome the pain response, giving consumers the joy of buying without the guilt.
How to premiumise impulse purchases
Nostalgia is a powerful purchasing aphrodisiac. As consumers, we romanticize the notion of the Mary Kay rep pulling into your driveway in her pink Cadillac. It’s not just about the products; it’s about the experience.These business models, however, have died out making way for more efficient processes and as a result the consumer experience has taken a back seat. More recently, these retro-business models have started to make a comeback thanks to new technology and a deeper understanding of consumer behavior. Brands who create the right mix of technology, understanding, and experience can enhance impulse purchases and create new revenue streams.Location, Location…New LocationThe old adage in real estate is, “location, location, location” and what can be better than a location that’s always where the consumers are? Food trucks have gotten a makeover and are experiencing a new surge. The new food trucks run routes, hitting high-density spots where they can sell their premium goodies from the side of their trucks. From entrees to desserts, these mobile vendors are keeping overhead low by eliminating the cost of a fixed bricks and mortar location.These premium food vendors are becoming part of urban culture, combining the nostalgia of the ice cream truck and the delight of premium foods. In US cities like Chicago, websites such as foodtruckfreak.com are dedicated to tracking the routes of these vendors. The New York City Food Truck Association (NYCFTA) is also dedicated to bringing premium food to the consumers of NYC.While food trucks are run by independents corporate brands can tap into these retrofitted business models to create new revenue streams.Social Media Sales RepresentativesConverse has taken a new spin on the door-to-door salesmen by launching a Facebook app that allows users to customize, promote, and sell shoes while receiving a kickback for shoes sold. Converse has potentially increased its sales force through a new breed of social networking site-to-social-networking salespeople.These revived business models bring out the experience aspect of buying and enhance them with modern technology and new trends in consumer behavior. The combination creates opportunities to increase impulse buys. Brands must find new ways to connect with consumers. Whether it is through the consumers’ daily journey, new technology platforms, or a retrofitted business model; brands can create new revenue streams by giving consumers a delightful experience through impulse purchases.
Gum scales back with 5-stick packs
Both Kraft and Wrigley are downscaling gum packs. Appealing to consumers’ tightened finances and “less is more” mentality, 5-stick packs will sell for 35 cents at convenience stores and retail check-outs. The smaller size lets on-the-go consumers indulge in a craving, for less cost. Satisfying spur of the moment urges will means slightly higher cost per-stick, a price many see as worthwhile for a pack that they don’t have to find later to use that last piece of gum.
Despite another tough economic year, the supermarkets are finding ways to maintain growth and margin
Over the last few years, during the economic downturn, a stay-at-home culture has developed that means consumers are not just eating more at home, they are also socializing and entertaining more at home, and the supermarkets are generally benefiting from this behavioral shift.In addition to favorable consumer behaviors, supermarkets are increasingly in a position of power with suppliers and consumers, offering a larger range of own-branded products.Increase in own-branded productsEarlier this year, Tesco made a bold move by reducing the number of suppliers, consolidating less meaningful brands and replacing their products with its own brands. In 2011 Tesco put creating brands at the heart of their strategy – over the next few years we can expect them to fulfill this ambition and become a global brand owner.In 2011 Tesco put creating brands at the heart of their strategyThis year we have witnessed a number of new products from Tesco hit their shelves that don’t state the Tesco name. The first ‘venture-brands’ to come to market this year were ChokaBlok ice-cream, Lathams dog food, NutriCat cat food and the Parioli Italian range. Each of these brands has allowed Tesco to retail products that have met gaps in their previous stock, offering their customers a wider choice.Moreover, Tesco hope that these new venture-brands will be successful enough to be sold in non-competing retailers, such as convenience stores and petrol stations, as well as outside the UK where their biggest growth business is.The business of creating new brandsWith the large amount of customer data gathered from their loyalty card scheme, Clubcard, Tesco know what products customers are purchasing, as well as purchasing patterns and price point accessibility, and as a result they can identify customer segments and patterns. This extensive data, combined with data they receive from suppliers, gives Tesco a raft of knowledge about each one of their shoppers, giving them an unrivalled and detailed understanding of the driving motivations behind consumer behavior, which allows them to create brands that are highly desirable.With control over all of the 4Ps of the marketing mix (Product, Promotion, Price and Place) the world’s third largest retailer will be well positioned to make this strategy work globally, especially as the new products will have the advantage of being automatically listed in thousands of stores in the UK and overseas. It will also give them a stronger hand when negotiating with suppliers, but as this strategy will result in the retailer competing directly with their suppliers we can expect to see a large amount of NPD and marketing from established brands as they look to mark their territory and build share in markets that private label can’t.Looking to 2012As one of the world’s most influential businesses, Tesco’s strategy is a major threat to many global brands, and sets a precedent that many other retailers may follow in 2012. With Tesco’s knowledge of brand building, this may give them the edge they require to crack the US market, where private label penetration is still relatively low.Next year we are likely to witness a shift in route to market strategies, with brands looking to new channels and tactics to compete with the big supermarket brands.
Snapette is a new location-based fashion app enabling users to share and discover the latest fashion accessories from anywhere in the world – now you can window-shop the world from the comfort of your own home.Users take photos of their favorite bags, shoes and accessories and post them to Snapette, along with comments and where they found them. Users can then search by brand, store, description and by what’s new, near or trending (with the most likes and comments), as well as comment on photos, share tips and recommendations.Snapette’s aim is to create a community of stylish techies. With shoppers turning to peers and review sites for inspiration and guidance on purchase decisions, this app is set to become hugely popular amongst young fashionistas.With apps increasingly helping consumers make purchasing decisions before they visit a store, retailers must look at making apps part of their digital strategy.Retailers have to ensure that their products are being seen in the new digital spaces consumers are looking, and make it as easy as possible for consumers to find them and then buy them.
A sustainable solution
Fish no longer has to come from the sea, in fact, it may be preferred they didn't. Antennae takes a look at the changing sustainability landscape that will affect the future of fish consumption. The amount of wild fish catch has been level for the past three years, whilst the overall consumption is on the rise. This indicates an alternative source of fish is becoming more important. Growing concerns aimed at ocean pollution and over fishing is now driving consumers towards finding alternative sources of fish. There is a cause for concern though, as change to date has been slow. So is there anything the fishing industry can learn from other markets?Consumption, and notably the leading manufacturers and brands within this space, should mirror the food and beverage trends of organic and natural. Brands like Haagen-Dazs and Magners have successful aligned brands with two macro consumer trends, naturally healthy and sustainability by supporting honeybees and the pollination industry. With seafood sources becoming a major concern for developed market consumers and governments the category is on the verge of a deep dive into the world of sustainability. Brands will find product packaging and labeling vital real estate as a means of communicating their product’s origins and process in getting it from sea to plate.The facts and drivers of consumption In 2010, we consumed 160 million tons of fish globally, an all-time high. Seafood in developed markets provides a healthy alternative to meats and supports the health and wellness trend and an essential staple for emerging markets. Organic food sales are up 115% since 2002 to reach nearly US$30 billion, and products with a “natural” claim have seen a rise of 30% to reach US$250 billion over the same time frame.But to put the organic market into context the USA is over 1,000 times the size of the Brazilian at US$12 billion and the UK 100 times the size of the Russian at US$2 billion. A focus on healthier alternatives, due to rising obesity concerns, across developed markets is putting greater pressure on the ecosystem, especially fish. Pollution and over fishing are now also becoming a major concern for the socially conscious. Brands will find distinct opportunities when bridging the gap and providing a healthy seafood solution that comes from a sustainable source. This concept has already been successfully implemented to support other areas within the ecosystem including tree-planting incentives from furniture retailers (IKEA in Scandinavia and North America).The pioneers making a splash UK retailers are pioneering incentive programs with Selfridge attacking the issue head on. Selfridge teamed up with the Marine Conservation Society and removed all products containing endangered fish from the shelves. But importantly this extended down the chain to its restaurants and restaurant partners. The effort resulted in the removal of 70 species of fish and £86,000 raised to support a marine protected area in the Philippines.In the US retailer, Trader Joes has focused procurement on sourcing fish from sustainable origins and making sure labeling communicates this information to their customers. Quorn, a vegetarian brand is expanding into the frozen foods market by offering fish-alternative products. Earlier this year the brand launched Fish-less Fingers and Tuna Style & Sweetcorn Crispbakes. This move extends the brand consumer base and brings in environmentally conscious fish eaters. Aquaponics: a new business modelInnovation isn’t just limited to manufacturers, it has moved into the consumer foodservice industry too. Restaurants have found closed-loop aquaponic systems as a way to differentiate themselves from the masses and a way to leverage sustainability credentials. The need to protect our seas combined with the culinary trends towards local food source is helping aquaponic systems become a viable option.Aquaponic systems contain fishponds where water cycles through a system of planters where vegetables and herbs are grown out of the water instead of soil. The produce is used to clean the water before it returns to the fishpond. It has multiple benefits; it can cater to different size preferences, uses vastly less water for growing plants, and are an on-the-spot source for fish as well as herbs and vegetables. The systems have been getting recognition in urban areas where produce and fish are typically shipped from long distances. If space allows, some restaurants can have small systems on-site for the chef to pull from. In other cases, they are run as urban farms providing produce for local restaurants and residents.What does it mean the future of brand image and food sources? Brands should expect to see consumer demand for seafood increase as its health benefits become deeper intertwined with the sizable health and wellness market. Meanwhile, regulation within the fishing industry will become increasingly stringent. Policies like the EU Common Fisheries Policy (CFP) have set aggressive goals to eliminate overfishing as well as making sure fish come from sustainable sources while preserving the jobs of fisherman.This means that manufacturers will have to look to new sources for their seafood. As organizations and manufacturers educate the mass consumers on sustainable seafood, consumers will expect their favorite brands to source seafood from renewable platforms. Much like the claim of “free range” for meats, fish brands should be able to capitalize on a similar market. Labels and packaging will play a big role in staking a claim for brands in this new space as it will serve as the main point of education for the consumer. For further insight, to have your say, or to start a discussion contact Jake Himmelspach, Associate Innovation Consultant at email@example.com
The World's biggest brands are driving packaging innovations
Reduce, reuse, recycle – it was the simple mantra that marked the mainstream arrival of the environmental movement, and it still stands true today as one of the easiest focus that brands and consumers alike can have to help save the planet.
The rise of sustainable restaurants
Consumers are beginning to expect brands to be better for the planet, and in the foodservice industry brands have the opportunity to not only attract consumers by implementing sustainable initiatives but also directly improve their profitability by reducing reliance on the utilities grid.
Plastic bottles, and particularly those for milk, are one of the largest culprits of filling landfills. Over 18 billion rigid plastic containers were used for milk globally last year. With the US going through over 6 billion, which was equal to the entire consumption in Western Europe.
Retail looks outside food sourcing for sustainable options
It is not only restaurants that are looking to improve their sustainable footprint within the context of field to plate, but retailers are driving sustainable initiatives to cut costs in a highly competitive industry, while hoping to attract an emerging customer base into their stores.
Tesco is extending their offer with the creation of 'venture-brands'
Although the wider retail sector is struggling, the supermarkets are flourishing, as food is not a luxury but a necessity.
The new shopping experience
As the name suggests, 'retailtainment' is a blend of retail and entertainment. The heightened shopping experience is becoming more widely adopted throughout retailing.
The smoothie brand, innocent, has published a new recipe book that is on-brand with fun and humor.
Building closer connections between consumers and brands
Technology is giving consumers unprecedented access to brands, connecting them in ways never possible before. This is particularly prevalent in the beauty market, where brands not only sell a product, but also expertise and even lifestyle.
Using the new opportunity of space afforded by the A380, Korean Air has outfitted one with a physical duty-free shop. The store has a dedicated, full-time sales assistant, and will open throughout the flight – offering everything from perfumes to alcohol. The space was designed by L'Oreal, and replaces 13 seats in the aircraft, showing that the airline believes it will be a highly profitable part of their service to passengers.
The effortless sharing of information
Smart technologies are changing the way machines, devices and computers communicate among themselves. Innovative applications based on proximity sensor Near Field Communications (NFC) technology allow devices to exchange information with one another.
Social networking is no longer just about how many friends you have
For the last 20 years the internet has connected us to each other in increasingly varied ways – beginning with email and chat rooms, and now with social networks. The rise of social media has presented huge opportunities for people to connect with each other via messages, statuses and photos – and now brands have realized the potential to connect consumers to their products, ushering in a new era of innovative services and commercial strategies.
Mondrian South Beach Hotel - www.mondrian-miami.com
2010 has seen a major shift in retail, with a raft of self-service buy-and-pay applications, with consumers increasingly using self-checkout stations at grocery stores, and motorists are refuelling their vehicles at pay-at-pump gas stations.
The top ten trends for 2011
Next year looks set to be a very exciting year with a number of trends reaching tipping point, resulting in shifts across mainstream cultures and lifestyles, with new products being bought, new business models being exploited, and new services being introduced.
Rise of the pop-up store could revolutionize high street retail
Over the last couple of years, American and European cities have seen a growing trend to utilize public spaces better. This has manifested itself in the development of the guerilla gardening movement, as well as a rise in temporary ‘pop-up’ shops, cafes, restaurants and cinemas. Although previously seen as a retail approach that only small, independent companies would take, we are now seeing big consumer brands running small pop-up stores in major cities.
Fast, easy and convenient retail experiences
Retailers are ushering in a new world of self-service buy-and-pay applications, with consumers increasingly using self-checkout stations at grocery stores, paying for travel through airport check-in kiosks, renting movies from self-service DVD rental kiosks, and motorists are refueling their vehicles at pay-at-pump gas stations. Restaurant diners can even order from touch-screens at fast-food chains and use hand-held, pay-at-table devices at sit-down restaurants.
Focusing on creating an immersive brand experience
There is a growing desire for service that is intuitive and worthwhile, adding a level of discovery and education to the shopping experience.
Levi’s revenues are rising - growing 17%, (Reuters) - in no small part to their investment in their retail strategy.
Brands embrace mobile devices as the future of retail
The prevalence of mobile devices, and the continuing increase in the abilities of our technologies, mean that we can now interact with products and places like never before. This has already infiltrated our lives in the form of social networking, where people can connect whenever and wherever they are thanks to their mobile devices, letting friends know where in town they’re having a drink, or rating the latest restaurant and sharing it with the community.
Major investment in online retail could signal a move towards virtual retail
Despite the fact that online retail has been a strong, and growing, presence in our lives for the last decade it still only accounts for around 10% of sales in the US and UK markets – so why is it not larger? We could soon see a change in this, as major retailers and brands start to roll out more innovative and ambitious online retail programs.
Cash is no longer king
In the next few years we will witness a revolution in the way we pay for things, with cash rapidly going out of fashion. Mike Bownman, Head of Policy and Markets at the Payment Council said, “Although cash won’t disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending”.
Last year, Kellogg’s tested a new cereal box that was shorter and deeper resulting in saving 8% packaging material, whilst still containing the same amount of cereal. It was tested for six months in Kroger and Wal-Mart stores in Detroit.
Nike’s flagship Japanese store opened in Tokyo last year. The store exemplifies Nike’s brand, incorporating a unique design that makes it more like a playing field than a conventional store.
The cell phone is the perfect sensor
Over the last 3 years cell phones have included increasing sensitive and accurate sensors within them. From mics, to cameras to accelerometers, our phones have gained the ability to further interact with the consumer and the world around them.
As the economy recovers pragmatic luxury will be the growing trend
As the economic climate begins to improve we will likely observe growth of luxury, indulgence, and brand names. It is unlikely that luxury will return to the same extent, but it is predicted that we will see smaller, regular indulgences in both mass and premium channels. Luxury is constantly being redefined and is now within reach of a much larger consumer segment.
Increasing demand for luxury in developing nations
With the future of the global economy still uncertain, more brands are looking to developing markets, specifically to the Chinese consumer – who might be able to lift the global economy out of recession.
Luxury brands step up their in-store experience
A superior experience is one of the fundamentals of a luxury brand. Service online and in-store, as well as after-sales are vital for luxury brands. Luxury brands don’t just create well-crafted products, but the experience around them is equally as important.
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A better understanding of consumers and their emotions can open up new channels for brands to build long-term profitable relationships with consumers based on emotional, impulse purchases that bring revenue in for the brand and delight to the consumer.
A few fun facts to keep you thinking through this holiday season.
Exploring how the rise in consumers diagnosed with allergies has led to an increase in free-from products, and how the free-from market has moved into the mainstream.
The global food market is changing rapidly, as our consumption habits shift, and prices rise rapidly.
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This week TOMS announced a significant repositioning of their brand – from TOMS shoes to TOMS 'one for one'. With this shift, they have moved from being merely a shoe company, or even a fashion-ware brand, to an initiative based business built around the one-for-one model.
Earlier this year TomTom and Nike+ released details of a collaborative project – the TomTom Sports Watch.
The social connectivity that the internet has given us has also allowed consumers to connect with the wider world on a commercial level.
Augmented reality is not only bringing a greater depth of information to our real environments, but it also creating new opportunities for a more sensory, immediate and engaging marketing strategy.