Teacup

Welcome back from the holiday season to the start of a brand new year and new decade! I’ve just back from Gold Coast, Australia (which is always so beautiful) and now it’s back to business as usual

To start the year off, I want to talk about the ‘buy local movement’ where consumers have started straying from corporate giants to support the smaller guys. Over the years, through expansion and franchising, big-brand national chains have developed a presence almost anywhere we travel. However, consumers are saying enough is enough – they want to support small independent retailers that offer a unique experience and a sense of community.

Why is buying local so popular?

According to the Think. Shop. Buy. Local. campaigners, buying locally from independent retailers directly helps to maintain your local economy. “For every $1 spent at local businesses, 45¢ is reinvested locally. Non-local purchases [through national chains] keep, at most, 15¢ in your local community,” they say.

They also point out that while local businesses engage in many other services in the community (such as accountants, printers and couriers), corporates tend to concentrate these services at one single source for all of their stores via the head office. Buying locally is also better for the environment as many products are sourced from within the community instead of being shipped over from across the country and overseas.

Consumers don’t want to fill up corporate pockets

Senior fashion editor of WGSN Sue Evans also agrees that local shops are making a comeback, but perhaps not only to support the local economy. “Customers are really recoiling at the idea of lining corporate pockets,” she says. “They’re turning to independent retailers in tune with locals and the local area” to support businesses that are still growing.

Corporates having a go at being Local

Big businesses are also realising the rising popularity of this trend  and are not about to give up without a fight. In July 2009, coffee giant Starbucks opened it’s first pilot ‘localised’ store, named 15th Avenue Tea & Coffee, disguised as a local coffee shop without any association to the household Starbucks brand. While other small businesses were outraged at their efforts to portray themselves as being local, Starbucks isn’t alone.

“The International Council of Shopping Centers, a global consortium of mall owners and developers, is pouring millions of dollars into television ads urging people to ‘Shop Local’ — at their nearest mall,” reports Stacy Mitchell for Boulder Weekly. “This represents desperate bids by shopping malls to survive the recession and fend off online competition.”

According to the studies done by the firm Civic Economics, money spent at chain stores, such as those at shopping centres, provides less that one third the amount that money spent at locally owned independent stores would provide back into the community.

Department store chain Macy’s have taken a subtler approach through their ‘My Macy’s’ localising initiative to bring in products that are tailored to the needs of the community of it’s existing stores. However, critics still claim that although they may be altering their product mix in hopes of more targeted sales, the chain is still carrying out their ordering, merchandising, shipping and all other operational tasks from their head office, thus still not contributing any more to the local communities.

Localising: easy route to social responsibility?

Critics have claimed that although chains have learnt that consumers are increasingly motivated to support companies that they perceive to be acting responsibly, companies are tossing around the word ‘local’ into their marketing as a cheaper alternative to convey true ethical responsibility.

“Local is one of the lower-hanging fruits in terms of sustainability,” says Michelle Barry, senior vice president of the Hartman Group. “It’s easier for companies to do than to improve how their employees are treated or adopt a specific sustainability practice around their carbon footprint, for example.”

Consumers want authenticity

Writer and business consultant Joseph Pine says that authenticity is the new level of economic value to the consumer. Their desire for the authentic goods become one of the key buying criteria in which consumers chose what they are going to buy and who they are going to buy from. However, according to Joseph “no one can have an inauthentic experience, but no business can supply one that is truly authentic.”

Although a business may claim to be 100% local, there will always be a certain degree of big business involved. The machinery they use, the bank they do business with, the telecommunications the business uses. All those things contribute to being inauthentic.

Is being Local really that big of a deal?

According to market research company Mintel, an average of one in six adults (17%) try to buy local products and services as often as possible. “These ‘True Locals’ are willing to pay a higher price and they’ll even buy local if competitive products are better,” says Mintel researchers.

But the overwhelming majority of shoppers don’t feel so strongly. Mintels research showed 30% of shoppers would purchase locally but don’t know where to find them, and 27% of shoppers don’t care where their food and services come from.

“We found that although the ‘buy local’ mantra has gotten strong media coverage and government support, most people haven’t yet incorporated it into their lifestyles,” says senior Mintel analyst Krista Faron. “Nonetheless, local products offer unique benefits and are more accessible than ever before, so we think the local movement has relevance with today’s consumer.”

Is buying national better?

Despite the many benefits of buying local, national chains aren’t without their perks. Chain stores offer the advantages of convenience, low cost and consistency.

“One way corporations can be ‘local’, too, is to stock a token amount of locally grown produce, as Wal-Mart has done in some of its supercenters,” says Michelle.

“The chain’s local food offerings are usually limited to a few of the main commodity crops of that particular state — peaches in Georgia or potatoes in Maine — and sit amid a sea of industrial food and other goods shipped from the far side of the planet.”

“Yet, this modest gesture has won Wal-Mart glowing coverage in numerous daily newspapers, few of which have asked the salient question: Does Wal-Mart, which now captures more than one of every five dollars Americans spend on groceries, create more and better opportunities for local farmers than the grocers it replaces?”

Is it unethical for big businesses to try portray themselves with a degree of ‘locality’?

After holding back from all hype for so long, I finally decided to treat myself to a new iPhone. After all, what kind of marketer would I be if I did not know the benefits (and downsides) of this latest trend first hand?

Although I will leave it up to you to make up your own mind about the iPhone itself given that there are many new high tech gadgets emerging with similar features, what I do want to explore is this move towards mobile marketing. Many would think that mobile marketing is simply limited to text message campaigns. But as I’ve discovered with the iPhone, there is a complete new level of engagement with companies being able to stay connected to their customers where ever they go.

What are Smart Phones?

With the new generation of Smart Phones, not only do they have the traditional mobile phone functions of calling, texting, photo messaging and video calling (yes, they are traditional now or at least becoming), with access to wireless internet connection, the smart phones will enable you to check emails, send files, edit documents, browse the web, purchase and use custom build mobile applications, instant message, update your social networks (Facebook, MySpace, Twitter), and more! As consumers gradually switch over to Smart Phones whether by choice or simply for the need to upgrade their phones, they are becoming very mobile, very fast.

Mobile customers want utility

Mobile Marketer Amy Mischler says “your mobile customers are very different from your regular day-to-day customers. Users are really interested in useful sites – they want utility. You don’t have a lot of time and your devices are limited. You need access to information quickly and you want access to things that will simply help you manage your life better.” This may include things as simple as making a reservation, checking-in to your flights or something that helps you fulfil a business transaction.

Mobile media enables you to interact with your client almost 24/7

“While it may not have the same reach as broadcast or online media, with mobile marketing, once you have connected with the customer, you have an opportunity to really interact with them and create a dialogue literally almost 24/7.”

You need to make the content relevant to the way people use mobiles

Michael Becker, Managing Director of iLoop Mobile, says although mobile media provides many benefits, you must be conscious of the amount of information you give to the consumer. Many businesses replicate their entire online website onto a mobile phone, says Michael. “That’s absolutely the wrong thing to do. Think about what it is your customer needs and what sort of value they are looking for.” In that context, make the right content available to them in the easiest possible way to access, he says.

How is the fashion industry using mobile marketing?

In the fashion and beauty industry, although we are not renowned for being the most technologically innovative, there are companies that are making some great process in moving into the mobile media market. I’d like to share with you some of my finds for the iPhone on how fashion, beauty and luxury industries are making use of mobile marketing:

ShopSaavy

This application allows you to scan the barcode of any product and it will give you a list of both online and local retailers that stock your product as well as their contact details and prices so you can compare. You can send the details of the new location to a friend or get directions on how to get their via Google Maps. If it’s an online shop, it also gives you a link so you can go their directly and buy the product.

Style.com

Style.com’s application gives you a comprehensive guide to the latest runway shows. You can view information about the designers, their collections and see close ups of each individual outfit from their show as well as being able to watch fashion videos, access their ‘Style File’ blog and participate on their ‘Look of the Day’ polls.

Victoria’s Secret

Victoria’s Secret application gives you all the information you want about the Angels, show coverage, back stage photos, videos and special events. You can also participate in their search for new models and vote for your favourite upcoming Angels.

Tote

Tote showcases clothes and accessories from a variety of shops in a gallery style. Users can save their favourite items into their Wishlist and be notified when there are price discounts or special offers available for those particular products from the selection of shops.

Coach

Coach’s new iPhone application is just in time for the holiday season helping you find gifts for your loved ones by answering a few questions (all Coach gifts of course). Once you have found the perfect gift, the app will direct you to the nearest Coach store to make your final purchase. Although this is similar to their ‘Gift Finder’ online, it certainly is a step up from simply offering a product catalogue.

Out of over 100,000 mobile apps, only 20% are actively being used. How do you stand out?

The mobile media is no small market. In fact, Apple was proud to announce that just this October, the iPhone App Store reached a grand 100,000 approved apps mark. But don’t think it is easy creating a success story in seconds. Like any media, the mobile medium is already becoming increasingly competitive. According to research from Appsfire Application developers, only 20% of applications are actively being used. When there are so many choices available to consumers, what will make your brand stand out?

I’d like to finish off with a video of a brand that did stand out for me for the Verizon Droid Smart Phone. The makers of the video has thought about what differentiates them from their competitors, what messages are relevant to their target market and how best to communicate it. And, it’s entertaining to watch.

Further Reading

iPhone Application Marketing: What every developer needs to know

iPhone Application Marketing: Reviewing current websites

The Future of the Mobile Web

What apps would you like to see in the future? What features can companies in the fashion, beauty and luxury markets use to offer value to their customers through mobile marketing?

An interesting talk from advertising guru Rory Sutherland at the TED Talks 2009.

Rory talks about how changes in perception can influence the value your product provides to your customers. What constitutes value in the eyes of the consumer however is a mixture of various criteria including price, quality, features and service received.

What is Value? It comprises of many different factors.

Before potential customers even walk into your shop, they will see whether they identify with your brand personality and what overall value they expect to get from your brand. They would have already made prejudgements about your brand based on your prior marketing, your shop window and demographics of your existing customers. So you must portray compelling value to seduce customers into your shop and work even harder to maintain your value levels for existing customers.

How do we provide value?

Research by Cotton Incorporated in their Lifestyle Monitor shows 3 key trends during the recession times. We are more likely to:

• invest in durable, classic pieces that will last several seasons,
• purchase as many trendy items as our budget will allow, and
• stick with our favourite brands regardless of price, but buy less of them.

Although traditionally, we have worked to provide tangible value to customer through tactics such as sales, free gifts with purchase and two for one deals, Rory suggests that providing intangible value should constitute a greater proportion part of overall value as it will build a long term connection with the client.

Branding of your label adds to your overall value

The branding of your label has a lot to do with the value you will provide: it affects your pricing strategies, promotions, locations, product designs and storefront.

Reporter Bobby Riley writes: ”A good brand strategy creatively reframes what the brand stands for in culture beyond a product description and tactical marketing ideas. It’s a directional creative idea that drives everything the brand does, and goes much deeper than the surface aesthetics of the fashion business.”

Your branding is the public face of your label. Thus, you must show your message, values, philosophy and personality in a relevant and unique way.

Becoming a Purple Cow

To ensure your brand is continually growing, you need to be outstanding – stand out from the crowd, and as marketing guru Seth Gordon puts it, be like a purple cow in a herd of brown cows.

When you cater your promotions to the masses, you typically end up creating campaigns that is like vanilla: easy on the eyes but safe and generic. By doing this, you are inadvertently creating something that may be adequate, but is not remarkable to anyone. Have a look at the advertisements below from various fashion and beauty houses. Which of them do you actually take notice of and will remember?

Now look at the ones below. If you saw these ads in a magazine, would they stand out?

These ads were spotted by consumers around the world, taken note of, remembers and passed on through word of mouth. The video below from TrendHunter TV shows the top 10 innovative fashion campaigns that has been passed on to them from consumers themselves.

Providing a memorable brand experience

In a world that is so cluttered by advertising, like the brands featured in the TrendHunter TV video above, we need to make sure that our customers are able to pick out our brand from the the chaos. This is why we need to be innovative and start thinking outside the box as to how we can present our thoughts in a distinct and entertaining way.

Tonight, I leave you with a remarkable brand experience from Philippe Meyersohn, Brand General Manager at MABE Canadam, from visiting an Aveda store. He writes:

“As I came through the door, I was greeted with an offer of a relaxing cup of tea. From the start, I was given the impression that the sales people wanted my visit to be stress-free. Throughout my time spent there, the sales people were friendly, offering me help in selecting products. The surprising moment came at the end after my purchase – I was given a hand massage! This unexpected service at the end made my experience at Aveda very memorable.”

Thanks to this unique experience that Aveda has created, he was pleasantly surprised with the value that he received and he had shared this joy with an infinite number of customers (including myself and now you as well) through the power of the web. After reading his testimonial, I know that I can now happily go visit an Aveda shop to get the same experience without having doubts about what kind of value I will receive.