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Credit Crunch solutions Posts
Be wary of creating a caring face
December 14th, 2009
Next month, Bulgari’s 11-city touring jewellery exhibition, Between Eternity and History, will end with a start-studded auction at Christie’s in New York with the aim of raising $10m for Save the Children’s Rewrite the Future campaign. So writes the Financial Times in their Asian international edition (http://www.ft.com/home/asia).
The great and the good will be there – Ben Stiller, Sting, Willem Defoe and Julianne Moore, with the New York event culminating in an event that has taken in cities such as Rome, London and Beijing.
Charity has become a tried and tested way to ease consumer malaise at spending on conspicuous luxury, whilst reinforcing brand credentials as being caring and responsible.
But is the consumer becoming more cynical?
Look at Montblanc. Last month the company caused international controversy with the launch of a $23,000 18-carat pen to celebrate the 140th anniversary of the of birth of Mahatma Ghandi. Montblanc was (rightly in my opinion) accused of exploiting Ghandi – liberator, champion of egalitarianism and simple living – in order to enter the Indian luxury market. Despite Ghandi’s grandson endorsing the promotion and Montblanc donating $148,000 too build a shelter for rescued children, the anger was widespread.
And did nothing to enhance the brand worldwide.
Is this the new ‘caring face’ of luxury?
This is sector I know well but frankly I am a cynic on this line of marketing. Last month Gucci paired with Mary J Blige to launch a Center for Women, Jimmy Choo created Project PEP, selling a range of handbags to support Elton John’s Aids Foundation, and Naomi Campbell paired with Louis Vuitton to launch a handbag in support of the White Ribbon Alliance.
Mmmmm. I remain a cynic.
Half of Brits feel no worse off one year into the recession. And London leads the way.
September 16th, 2009
Almost half of British consumers think they are financially no worse off than this time last year, according to a recent study.
45% of the 5000 consumers surveyed say that their financial situation is the same or better than it was 12 months ago. Despite the national and international gloom and despondency, a surprising 15% actually believed they were better off.
London leads the way too – despite a cull of jobs across the City (the financial district), London tops the league table with almost a fifth (19%) claiming they are a lot or a little better off than this time last year.
Men are generally doing better than women, and younger groups faring the best – only 1% of 55-64 year olds said they were feeling better off during the recession.
The research, from TNS, also sees a significant proportion of the population who see the recession as an opportunity rather than simply as a threat, with many resolutely determined to fight the challenge head on. These people are likely to see the current climate as an opportunity to profit from the situation – buy property at knock-down prices, take advantage of low interest rates to borrow more or look for great for the best discounts to find the best bargains out there.
There is a significant group out there who are in employment, who have seen their mortgage repayments drop due to lower interest rates, who are bombarded with the latest discounts and special offers from retailers and restaurants; even some major car brands are offering unbelievable deals.
Everywhere you look there’s a special deal to be had. If there isn’t – just ask! (I tried this last week, asking if I could have any more discount if I paid cash. There result was a 25% discount!).
From the ‘Credit Crunch Lunch’ to the ‘2 for 1’ specials on offer in almost every category. Such as Orange, my mobile phone provider, who offer me a ‘2 for 1′ at my local cinema AND a ‘2 for 1′ at the adjacent pizza restaurant each Wednesday night. It’s now even called ‘Orange Wednesday’.
I even subscribed to vouchercodes.co.uk and now get a weekly email telling me where the best deals are to be found.
Will we be able to stop doing this after the recession? My guess is that we will expect more of the same.
When times are tough, take big risks…!
May 12th, 2009
This may sound counterintuitive, but it’s what great brands do.
For them, a recession is the best time to launch something new. Look at the last three downturns.
In 1984, Apple launched the Mac, and Virgin launched Virgin Atlantic.
In 1992, Nokia launched its first GSM mobile, the Nokia 1011.
And in 2001, Toyota launched the Prius globally, and Apple launched its iPod.
All went on to create new demand, generate big revenues, and in some way change the world.
Each responded to, and helped shape, the spirit of the age.
At the beginning of the era of deregulation, the Apple Mac and Virgin Atlantic both aimed to free people from the tired old establishment.
At the start of the liberating age of the mobile and the internet, Nokia was a completely fresh brand from social-democratic Scandinavia.
And as blatant consumerism started to wane, the Prius and the iPod were both understated, highly designed ways of showing off.
What does all this tell us? Recessions are a time when entry costs are often lower. But they’re also times when people rethink things, when they’re open to something new – in fact, when they most need something new.
Right now, the best brands should be lining up new things that build their brands, and that shape a new world – things that give individuals new powers, that cross public-private ownership, that are ethically unimpeachable, that aren’t too western, that demand collaboration rather than consumption, that in some way fix the world.
As Ryanair’s Michael O’Leary said in the London Sunday Times (29 March), ‘There’s never been more opportunity… Now we can start again and do things properly’.
Credit Crunch Solutions – Aussie Style….
April 7th, 2009
Well, there have been alot measures put in place by Governments over the past few months to stimulate the economy – tax cuts, interest rate cuts, incentives and the now famous ‘quantitative easing’.
Now the Australian Government have their own take on ‘Fiscal Stimulus’. Kevin Rudd, the Australian Premier was famously caught in a lapdancing club before he took office, so he knows a thing or two about fiscal stimulus. That’s why he opted to hand out $AUS12.2 billion to Aussies to encourage them to spend – up to $AUS950 each.
As well as snapping up new flat screen TV’s and the like, many it seems are spending it in the legalised brothels that pepper the country’s suburbs.
As Pip Marquet, manager of After Dark whorehouse in Sydney’s Brookvale district put it ‘people are using at least part of the Government’s aid package to stimulate themselves…’
Tactics for Tough Times
March 28th, 2009
I recently found a very interesting piece of research - the result of feedback from over 100 senior HR directors and business leaders on how to combat the recession. It makes interesting reading so I’d like to share it with you. We could all learn from these ideas:
1. RIDE THE STORM. Make plans for difficult times but this doesn’t necessarily mean large scale layoffs happening,
2. SEE THE UPSIDE IN THE DOWTURN. The best business leaders see opportunities in a downturn. Find them.
3. SHOW ME VALUE. Rapid response and price promotion are working for some. Does it for all and can it for you?
4. FIND POCKETS OF GROWTH. Some sectors are positively booming, such as online retailing, home entertainment and some luxury brands. Seek these out for your own business.
5. REFOCUS ON NEW MARKETS. Whilst Europe and the US are floundering, Asia is attracting increasing attention. Are you actively looking at new emerging markets? You should be.
6. HANG ON TO TALENT. Attracting the best talent is becoming more difficult – hang on to the best. Don’t just shed jobs without thinking.
7. EMPOWER YOUR PEOPLE. Business leaders are recognising the value of experience, whils also ensuring that staff have the right skills for the upturn, when it comes. And it will.
8. ENGAGE YOUR STAFF. If staff members are on your side, they will have the answers. Engage them.
9. KEEP UP MORALE. A lot of emphasis is being placed on demonstrating leadership through confidence-building internal communications. Be positive and show this.
10. KEEP UP WITH YOUR CUSTOMERS. Businesses must find a way to match or exceed customers’ increasingly agile changes in behaviour – for example moving more towards digital – are you adapting? Don’t just assume that the status quo will remain the same. Crisis times are often when change occurs more rapidly.