SHOPPING FOR INSIGHTS

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by Nissa Hanna

We’re back from Iconosphere a little more tan and a lot more energized. And we’d like to extend a special thank-you to the clients who joined us in Miami for some inspired shopping — all for research, of course. Our Retail Safari brought them to the intersection of Modern Day and Boundary Pushing.

The excursion focused on four stores that are making waves with their displays, curation and experience. First stop: The Webster. Set in a historic 20,000-square-foot Art Deco building, the lifestyle store offers a blend of contemporary brands (like Rag and Bone) and exclusive collaborations on the ground floor, while the more intimate top floor seamlessly displays luxe labels (like Saint Laurent and Céline) in a setting that suggests an impeccably stylish friend’s (enormous) closet.

Alchemist’s sidewalk storefront integrates the influence of its local environment: The wall designs are inspired by beach-essential Styrofoam coolers and pebble pool decking. But those in the know head down the street and take an unassuming elevator to the fifth floor of the Herzog & de Meuron-designed parking garage to check out the edgy selection (Rick Owens leather jackets) in Alchemist’s lofty second location.

The Safari also made stops at two retailers that are widening their influence with innovative outposts. Base, a menswear boutique with a well-honed art-and-commerce vision, is extending its presence with outsize vending machines in posh hotels like the Mondrian, and the online-mostly eyewear brand Warby Parker lets guests and visitors of the Standard hotel try on frames at the Readery, its 1960s-esque newsstand kiosk (complete with beatnik-era tomes).

We covered a lot of retail ground that afternoon. And whether the stores stock $2,000 designer jackets or $95 spectacles, each had something to teach us about connecting with consumers through spaces that blend imagination, meaning, discovery and intimacy. These retailers aren’t just offering the latest trends — they’re creating them.

 

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GONE FISHING

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by Charlotte Beal

Facebook might not be the place to reveal one’s out-of-town status, but CEB Iconoculture’s Weekly Highlight simply can’t go unbroadcast, at least in newsletter form: Today, many of our clients have gone fishing — for insights, that is. We’re all waking up in Miami Beach to a full day-and-a-half of consumer-trend presentations and networking at Iconosphere 2013, our seventh annual event.

Just some of the takeaways and opportunities that await: Boomers outspend other generations by about $400 billion each year, according to the US Consumer Expenditure Survey (BLS.gov, March 2013), and the “50+ Nation” presentation explores how brands can tap some of that gold as the generation ages. Many brands take a gendered approach to marketing, but times — and consumer sentiment — are changing fast. “He Said, She Said” gives the golden rules for effectiveness. Brands know that apps are where it’s at, but how do you go about creating a memorable service that attracts eyeballs and keeps consumers engaged? “The Mobile Imperative” has answers. Who could have predicted that chipotle salsa would have gotten so popular, and who’s got the pulse on what will take its place? Probably you, after attending “A (Multi)Cultured Palate.”

To those who couldn’t make the trek: Wish you were here. While the phone can’t stand in for the face, we look forward to many Iconosphere-related advisory calls. And there’s always next year.

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DRIVING FUEL ECONOMY

by Sumaa Tekur

Car buyers around the world are revving up on the road to better fuel efficiency. Responding to this ever-increasing need for more mileage from less fuel, automakers are steering toward advanced technologies and research.

A survey by KPMG found that in big emerging markets around the world, the motor industry is pumping research funds back into making better internal combustion engines — engines with turbochargers and fuel-injection systems that enable them to use fuel more efficiently (Economist.com, 20 April 2013).

Consumers appreciate every effort to make each drop of fuel count, including tracking tools. In a survey by J.D. Power that interviewed 16,500 vehicle owners in the US, 72% said that they’re willing to pay more for a car with fuel economy indicators like Ford’s and Honda’s dashboard efficiency leaves, which “grow” when the driver is operating the vehicle in a fuel-efficient manner (MSN.com, 30 April 2013).

At least three car brands in India are racing for the “most fuel-efficient car in India” title. Diesel variants of the Ford Classic, Honda Amaze and Maruti Suzuki Swift Dzire are all tested to surpass 23 km per liter, or 48 mpg (IndiaTimes.com, 14 April 2013).

Fuel-efficient cars may already have hit the road the world over. But that hasn’t stopped innovators from dreaming some more. The Buick Riviera concept car unveiled by General Motors at the 2013 Shanghai Motor Show in China drives this point home in a sleek fashion. Apart from its wireless charging capabilities and high-tech safety system, with 10 video cameras and 18 sensors to make the drive super-safe, this futuristic innovation uses electronic shutters that manage airflow at high speeds to improve fuel efficiency (TheSnapOnline.com, 30 April 2013).

True fuel efficiency is something to look forward to. Imagine consumers being able to step on the accelerator without worrying about how much it’s costing themselves or the planet. Looks like we’re getting there.

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MEAT Podcast, Episode 19: Netflix news and serendipity

thumbnailby Mike Garrison, Andrew Hawn and Katie Elfering

Media, Entertainment and Technology Strategists discuss Netflix news and serendipity. For more information and to listen, click here.

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LUXURY EQUALS VALUE: THE CHANGING EQUATION FOR LUXE SHOPPERS

by Gwyneth Holland

European luxury shoppers are shifting to a value mindset, and global megabrands are getting left behind. Sales at top European luxury brands are down, as chic Parisians and Milanese can no longer afford to shop with them. At the same time, the much-beloved free-spending international shoppers (especially those from China, Russia and the Middle East) are no longer filling brands’ glittering flagships.

Over half of the 23 brands (such as Gucci, Hermès and Dior) recently surveyed by Reuters reported lower footfall from tourists (particularly Asian shoppers) in their European flagships. These stores have grown to rely on wealthy luxury travelers to stay afloat, but now the well-shod shopper is going elsewhere. Outlet stores are increasingly enticing those who love a label as well as those who love a deal.

After all, just because consumers have less cash to flash, it doesn’t mean they’re willing to give up on the finer things. Luxe-for-less offers a new opportunity for brands: According to industry analysts FSP Ltd., revenue from Europe’s outlet malls has grown 60% since 2007, to €10.8 billion in 2012. Meanwhile, major European luxe outlet operator Value Retail reports that spend per visit rose 9.4% in 2012. New luxe outlet malls are opening in Russia, while a rising number of designer brands are opening their own discount stores to get in on the act.

The convergence of value-focused spending and a sense of democratic luxury is creating a demanding new luxury consumer. Across the board, consumers are less willing or able to spend as freely as in the past, and they’re applying a complex value equation to all purchases, whether they live in a penthouse or the projects. The luxury establishment may feel unsettled about the rise of the value-luxe shopper, but like consumers themselves, it will soon learn that offering high-value, high-quality goods is always a win-win.

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BIG BOYS DO CRY

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by Hans Eisenbeis

You’d need to have been off the grid and under a rock last week to have missed the instant Internet fame of Reasons My Son Is Crying. The Tumblr was created by Rochester, New York, dad Greg Pembroke to post photos of his 21-month-old son Charlie whenever he was having a meltdown, with a simple explanatory caption. Just 6 days in, the site went viral, and within 10 days, the Pembroke family was flown to Manhattan and interviewed on network TV and received notices in the Christian Science Monitor, Time magazine, the Huffington Post, and any other self-respecting blog, portal or dotcom mag. By the time you’re reading this, the meme will probably have made the late-night comedy monologues and therefore be on its way to a quiet afterworld of sneezing pandas and dancing babies.

Smart marketing and media professionals are asking themselves not how Reasons became a flashpoint in the attention economy (though we have an idea), but why. The Tumblr became popular for the simplest of reasons: It was genuine, clear, uncomplicated, funny and emotional. Even though the reasons for Charlie’s outbursts were terse — “I wouldn’t let him drown in this pond”; “He asked for butter on his rice. I put butter on his rice” — they actually reveal a perfectly normal father-toddler relationship filled with sympathy, love and important life lessons about instant gratification, caprice, self-control and personal safety. And as normal as that may seem, it reflects a broader trend: awareness that Dad is playing important new roles in the family, like emotional coach and physical caretaker, even while he’s still the one snapping a lot of the family photos (but blogging them like never before). Though the meme may fade away, the New Dad is here to stay.

 

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GAME OF STREAMS

thumbnailby Robert van Alstyne

Want an interesting case study in shifting media consumption habits? Look no further than HBO’s Game of Thrones. Although plenty of consumers are enjoying the show via premium cable subscription (4.4 million viewers tuned in to the third-season Easter Sunday premiere), it’s impossible to figure out how many millions more are thrilling to the latest battlefield brawls via pirated files and passed-around HBO GO subscriptions (more than 1 million people downloaded bit torrents of the episode within a day of its initial broadcast). Game of Thrones isn’t the highest-rated show in TV history, but it is the most pirated.

Underemployed and pop-culture-obsessed Millennials particularly loathe what they perceive as unfair pricing monopolies in the cable-dominated content distribution system. Cord cutters eager for the likes of HBO to acknowledge their growing ranks petitioned the network online in the summer of 2012, asking that it offer its HBO GO streaming service as a standalone subscription. The grassroots campaign, Take My Money, HBO!, was gently rebuffed via the network’s official Twitter account.

But as evidence mounts that the company’s offerings are the most pirated on the Web, and that Millennial “kids” are glomming onto their parents’ cable-package-based streaming services, HBO appears to be softening its stance. HBO CEO Richard Plepler is now publicly mulling the possibility of bundling HBO GO with broadband cable Internet service provider packages, while acknowledging that the network would have to make “the math work” before making any bold decisions.

While content providers and creators are carefully considering new distribution and funding models, consumers are busy busting down content-access barriers. The harsh reality for brands: Give the people what they want at a price they feel is fair, or be prepared for them to find it elsewhere for free — by any digital means necessary.

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THANK YOU FOR SHOPPING (ANYWHERE)

thumbnailby Nissa Hanna

I’m a Starbucks drinker. A few mornings a week, I grab a cup (and fuel my loyalty card) on my way home from the gym. But no day starts without coffee, so I also brew at home with beans from the grocery store. Although Starbucks is always my choice for an on-the-go cup, my decision in the bean aisle is swayed more by the sale signs than brand names. But that’s about to change.

Late last month, Starbucks announced a plan to extend its popular in-store loyalty program to reward multichannel drinkers (Businessweek.com, 21 March 2013). Starting in May 2013, consumers will earn points for buying the brand’s beans in grocery, club and drug stores. Points will also be awarded for purchases made at Starbucks’ newly acquired Teavana tea shops.

The move (which is being heralded as the first of its cross-channel kind) speaks to retail’s need to update the antiquated loyalty-program model with solutions that reward behavior, not just transactions — that is to say, loyal behaviors across multiple retail channels.

That’s an important shift, because multichannel shoppers’ options are growing by the day. In this dynamic retail landscape, loyalty programs need to help shoppers see past fleeting sale prices and also adapt to consumers’ increasingly fluid shopping activity. To brew a more effective approach, loyalty programs need to create consistent value with cross-channel rewards that customers can rely on — no matter where the product is purchased.

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MEAT Podcast, Episode 18: SXSW 2013

thumbnailby Mike Garrison, Andrew Hawn and Katie Elfering

Media, Entertainment and Technology Strategists discuss SXSW 2013. For more information and to listen, click here.

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CLICKS IN THE BRICS

by Sumaa Tekur

When Hollywood filmmaker Steven Spielberg visited India in the second week of March, he said that everywhere he turned, he saw people looking down at their phones or tablets (IndianExpress.com, 19 March 2013). The digital revolution in emerging countries has upped the ante for brands and marketers — much of the PC browsing has now shifted to the smartphone. From shopping to social media to personal communication, consumers in the BRICs and beyond are clicking away.

Of the 17 countries surveyed in CEB Iconoculture’s Values and Lifestyle Survey in 2012, consumers from emerging countries use their mobile phones for the most activities. India and China lead the pack with an average of 7.5 activities, followed by Mexico (6.2), Turkey (6) and Brazil (5.8). Consumers from India, Turkey and China are also the most likely to use a mobile phone to research new products or play games.

In online shopping, countries like Indonesia and Thailand are leading the consumer shift from PC to smartphone, according to the MasterCard Online Shopping Survey. Indonesia (not China) topped the APAC region, with the most consumers (54.5%) using their smartphones to shop during the preceding three months (CampaignAsia.com, 20 March 2013).

If your brand wants to reach connected consumers in emerging markets, keep the following in mind: Netizens in emerging countries are young and on the go. Aim to maximize the use of mobile tech and real-time data to keep consumers informed wherever they go. If you’re following customers online, be quick to respond to their likes, feedback, comments and posts.

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Gen Xers split their time between Facebook and face-to-face networking

thumbnailby Hans Eisenbeis

WHAT’S HAPPENING

  • Even though Millennials get tons of cred for being tech native — born into a world of computers, cellphones and Xboxes — Gen Xers grew into these technologies during the early days of the Internet and the web. So it shouldn’t come as a surprise that they embraced technology that emerged in their early adulthood, but they still know how to rock it old school.
  • A study by the University of Michigan finds that Gen Xers split their socializing evenly between real-world interactions and online social networks like Facebook. In an average month, Gen Xers have about 74 online interactions and 75 face-to-face ones (BusinessNewsDaily.com, 31 January 2013).

WHAT THIS MEANS TO BUSINESS

  • Gen Xers are great skeptics, but also great blenders — picking and choosing agnostically between technologies, social behaviors and even brands. Pragmatic and practical, they’re less likely to jump on fads until they’re absolutely certain of their utility or coolness.

RESOURCES

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MEAT Podcast, Episode 17: Privacy issues, the Oscars and binge viewing

thumbnailby Andrew Hawn and Mike Garrison

Media, Entertainment and Technology Strategists discuss privacy issues, the Oscars and binge viewing. For more information and to listen, click here and see below for articles mentioned in the talk:

Stop Binge-Watching TV
Ben Affleck’s Oscar Speech Revealed A Truth About Marriage

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IN THE MOMENT

thumbnailby Hans Eisenbeis

March madness is upon us. According to some, the term “March Madness” originally referred to the Canadian government’s habit of spending madly to meet budget numbers during the last month of their fiscal year in order to avoid cuts in the next cycle. So we have Canadians and profligate spending to thank. Whether north or south of the border, the term is inseparable from money, and lots of it.

March Madness in the USA is $10 billion worth of television. That’s the price that CBS and Time Warner have paid for the rights to televise notable games of the NCAA’s Division 1 men’s basketball tournament until 2025. Why would these corporations pay so much for the right to broadcast a game that typically doesn’t get interesting until the last two minutes, if at all? More to the point, why would anyone watch in real time when, through the magic of TiVo, the DVR or YouTube, they can watch anytime they want and just fast-forward to the part where the players take scissors to the nets? Here’s the great irony: In the age of multiscreen time-shifting and on-demand content, sports events are just about the only programming that’s driving growth in live viewing.

In the past we’ve researched the interesting connections between time and money in the lives of consumers. Social media and live broadcast programming speak to one key value that consumers may not even realize is at the center of their lives: the priceless present moment. Sometimes brands need to be right here, right now and fully engaged. Media corporations are beginning to learn that time-shifting technology and DIY media curation will never trump the power of the present. Consumers may be building budgets and making long-term savings plans for the future, but they’re engaged in those activities today. Whatever they’re doing at this moment is what they care about the most, even if it’s some kind of madness.

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OUR FACELIFT, WITH THANKS TO YOU

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by Charlotte Beal

Why, yes, thank you for noticing. We’ve had some work done. CEB Iconoculture’s website looks very different, but in a beauty + brains kind of way. Allow us to explain:

We went to hundreds of you, our clients, to solicit feedback on how our site could serve you better. You wanted more visual, more intuitive and easier to use. And we’re here to deliver. Not only will you find what you’re looking for more quickly (with improved Search), but we’ve also sharpened our curating skills to bring the must-read stories to the forefront.

We get it. You need to know categories and segments, but, more important, you need to know behaviors and shifts. What’s changing, and how can your business get out ahead of the curve? Our new site format gets you smarter, faster.

Click here for a quick demo. And rest assured that your preexisting IconoFolders are still intact, as well as your IconoAlerts. Please contact your Client Services Specialist or email techsupport@iconoculture.com with any questions, concerns or feedback. We hope you like what you see — and learn.

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BEHIND THE CURTAIN

thumbnailby Nissa Hanna

New York Fashion Week came to a close this past Thursday, as the last of the Fall 2013 collections slipped behind the stages and into long production processes, putting eager consumers on hold until the seasonally appropriate in-store versions arrive.

Ordinary shoppers still aren’t able to attend the shows, but that doesn’t mean they missed out. Fashion Week is marching down the runway toward inclusivity, and as social sources and designers make the shows more fan-accessible, they’re turning consumers’ annoying two-season wait into a time of ramped-up excitement.

Brands and industry arbiters are sharing the show experience through Tweets, Vines, videos and Instagrams. Michael Kors took viewers beyond the stage with a special microsite featuring preshow and backstage activity. Rebecca Minkoff created a show-specific Twitter hashtag and encouraged attendees to use it to converse with one another. Gilt Man sent a troupe of bon ton guys to chronicle their insider perspective. And every catwalk parade was live-streamed on the official Fashion Week website.

Every industry has its velvet rope, so all marketers should take note: Although Fashion Week is intended for its trade audience, new consumer-influencers are reshaping its raison d’être. Shoppers want in — now is not the time to push them away.

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