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jerryking : consumers   10

China gifts luxury a reprieve
29 April/30 April 2017 | FT Weekend | by Harriet Agnew and Tom Hancock

Chinese consumers, the drivers of global luxury for more than a decade, once travelled overseas to the European fashion capitals of Paris, London and Milan to take advantage of lower prices. Now they are increasingly inclined to spend at home. Last year Chinese consumers made two-thirds of their personal luxury goods purchases domestically, compared with roughly a third in 2013, according to the Boston Consulting Group.
.............In an era of lower growth, brands are trying to adapt to changing consumer demands and the disruption of digital while keeping the creative process at the heart of it. “Creativity and audacity is what allows you to elicit desire [and therefore sales] over the long run, telling a story that people want to discover, chapter after chapter,” says François-Henri Pinault, chairman and chief executive of Kering.
......Yet brands can no longer rely on opening lots of new stores to fuel growth. Instead they have to keep costs down, revamp their existing stores to make them more profitable, and seek new customers through avenues like digital.

“The business model of luxury has completely changed,” says Erwan Rambourg, global co-head of consumer and retail at HSBC in New York. “Either brands understand that and make the changes themselves, or they don’t and they leave themselves open to activism or M&A.”
.......Compared with other consumer brands, luxury has been late to the digital party. Phoebe Philo, the then creative director at fashion house Céline, told Vogue in 2013 that “the chicest thing is when you don’t exist on Google”. But that view now looks unsustainable.

Six out of 10 sales are digitally influenced, says BCG, which estimates that online commerce will grow from 7 per cent of the global personal luxury market today to 12 per cent by 2020.

Within digital, the holy grail is so-called omnichannel — the ability to offer a seamless experience to customers that blends digital and bricks-and-mortar stores, and includes initiatives like click-and-collect. “Blending the physical and the digital is the future of the online flagship stores,” says Federico Marchetti, chief executive of the YOOX Net-a-Porter Group.

The emphasis is on the customer experience. Net-a-Porter is launching a same-day delivery service in September for its top clients in London called, “You try, we wait.” Customers will be able to try on their online order at home or in the office while the delivery van waits outside.
......As e-commerce gathers steam and groups collect more and more data on their clients, the next stage is machine learning and artificial intelligence, believes Mr Marchetti. In this vision of the future algorithms will act as virtual shopping assistants, suggesting items that the customer might like, “enabling us to speak to each customer on an individual basis rather than to the whole customer base”, he says.

Luxury brands are also increasingly using blogs, online “influencers” and social media platforms such as Instagram to generate visibility and lure potential buyers.

All of this is happening at a time when the definition of what constitutes luxury is expanding beyond physical possessions to include experiences both as a competitor to, and opportunity for, the traditional houses.

“Luxury brands are now competing with the plastic surgeon and the luxury travel agent,” says Mr Rambourg. “For a similar price you can have a Louis Vuitton handbag, a facelift or a trip to the Maldives.”
....“Our pulse is the Chinese customer,” says LVMH’s Mr Guiony: “It made the sector worse a couple of years ago and it has made it better now. We have to be aware of that. Trees don’t grow to the sky.”
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luxury  brands  China  Chinese  China_rising  consumers  digital_disruption  e-commerce  travel_agents  BCG  growth  LVMH  watches  noughties  Yoox  customer_experience  WeChat  Burberry  digital_influencers  creativity  audacity  storytelling  omnichannel  artificial_intelligence  machine_learning  virtual_assistants  same-day 
may 2017 by jerryking
A Seismic Shift in How People Eat - The New York Times
By HANS TAPARIA and PAMELA KOCHNOV. 6, 2015

....Consumers are walking away from America’s most iconic food brands. Big food manufacturers are reacting by cleaning up their ingredient labels, acquiring healthier brands and coming out with a prodigious array of new products. ....Food companies can’t merely tinker. Nor will acquisition-driven strategies prove sufficient, because most acquisitions are too small to shift fortunes quickly. ....For legacy food companies to have any hope of survival, they will have to make bold changes in their core product offerings. Companies will have to drastically cut sugar; process less; go local and organic; use more fruits, vegetables and other whole foods; and develop fresh offerings. General Mills needs to do more than just drop the artificial ingredients from Trix. It needs to drop the sugar substantially, move to 100 percent whole grains, and increase ingredient diversity by expanding to other grains besides corn....a complete overhaul of their supply chains, major organizational restructuring and billions of dollars of investment, but these corporations have the resources.
abandonment  food  foodservice  brands  supply_chains  innovation  shifting_tastes  Nestlé  Perdue  Tyson  antibiotics  trends  Kraft  supermarkets  fresh_produce  OPMA  consumer_behavior  General_Mills  iconic  consumers  McDonald's  ingredient_diversity  seismic_shifts  new_products  Big_Food 
november 2015 by jerryking
How Consumers Are Using Big Data - WSJ
By LORA KOLODNY CONNECT
March 23, 2014

An app called Neighborland, created by social entrepreneurs Candy Chang and Dan Parham, aims to help community groups and government offices work well together. The app combines photos, data and APIs from sources including Twitter, Google Maps and Instagram, agencies that report on real-estate parcels, transit systems, and "311" complaints about nuisances like noise, broken lights and garbage.

In 2012, the New Orleans Food Truck Coalition used Neighborland to collect community ideas, map "food deserts," which are areas lacking easy access to groceries and healthy food, and show what the economic and health impact could be if coalition members were permitted to work in more areas.
311  massive_data_sets  APIs  data  analytics  Amazon  Pandora  Netflix  Nike  Jawbone  fitness  CDC  infertility  travel  Skyscanner  Routehappy  open_data  mobile_applications  consumers  hyperlocal  neighbourhoods 
november 2014 by jerryking
Show Us the Data. (It’s Ours, After All.)
April 24, 2011 | HeraldTribune.com | RICHARD H. THALER.
Companies are accumulating vast amounts of information about your likes
& dislikes. But they are doing this not only because you’re
interesting. The more they know, the more $ they can make.The collection
& dissemination of this information raises a host of privacy
issues, of course, but it also raises a broader issue: We should have
the right to access data about ourselves. Not only should our data be
secure; it should also be available for us to use for our own purposes.
After all, it is our data. A guiding principle: If a business collects
data on consumers electronically, it should provide them with a version
of that data that is easy to download and export to another Web site.
Think of it this way: you've lent the company your data, and you’d like a
copy for your own use...if we’re smart, we’ll also use the data that is
being collected to improve our own lives....US companies should embrace
a “mydata” program.
privacy  personal_data  consumers  consumer_activism  mydata  data  competingonanalytics 
april 2011 by jerryking
Nestlé’s ‘floating supermarket’ sets sail | |
June 18, 2010 | FT.com - Beyond Brics | By Dom Phillips in Belém
Nestlé  Brazil  consumers  food  supermarkets  boating 
june 2010 by jerryking
globeandmail.com: The value of value is the new consumer angle
March 16, 2009 | The Globe and Mail pg. B6| ANDREA SOUTHCOTT
* Understand your competitive context.
* Offer consumers new ways to experience your product.
* Tap into the power of local stories.
* Tap into the best-kept secrets of local community.
* Shift from owning to using.
consumers  value_propositions  competitive_landscape  value  Andrea_Southcott  sharing_economy  locavore  storytelling  economic_downturn  end_of_ownership 
march 2009 by jerryking
Consumers Can Still Spot Value in a Crisis - WSJ.com
MARCH 11, 2009 | The Wall Street Journal | by AMAR BHIDé.
Buying something new requires taking risks. Realizing the economic value
of most innovations requires consumers to engage in resourceful and
time-consuming problem-solving.
Amar_Bhidé  prosperity  consumers  value  problem_solving  cost-consciousness 
march 2009 by jerryking
Wholesalers Set Up Shop Online to Tap Consumers - WSJ.com
Sept. 18, 2008 article by Shelly Banjo on steps a wholesaler took to sell directly to consumers.
wholesalers  online  e-commerce  consumers  Shelly_Banjo 
january 2009 by jerryking

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