2011 SPRING TRENDS Keeping Up To Date With The Tech–Savvy World

01.011 SPRING ISSUE

2011 SPRING TRENDS Keeping Up To Date With The Tech–Savvy World

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‘How Happiness Spreads’ KLM

RANDOM ACTS OF KINDNESS

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When it comes to the mega trend of Generation G (that’s G for Generosity, not Greed), there’s no better way for a brand to put its money where its mouth (or heart) is than engaging in Random Acts of Kindness (R.A.K.). Consumers’ cravings for realness, for the human touch, ensure that everything from brands randomly picking up the tab to sending a surprise gift will be one of the most effective ways to connect with (potential) customers in 2011 - especially beleaguered consumers in North America, Europe and Japan.

Interflora monitors Twitter looking for users that it believes might need cheering up. Once found, the users are contacted by tweet, and sent a bouquet of flowers as a surprise.

and knowingly disclose (from Facebook to Twitter) more and more about their daily lives, their moods or their whereabouts.

Social networks also enable acts of kindness to spread far beyond its recipients, as they will gladly tell their friends and followers about the unexpected good news.

Two fun examples to copy or improve on in the next 12 months: • Flower delivery service Interflora has launched a social media campaign in the UK designed to brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitors Twitter looking for users that it believes might need cheering up. Once found, the users are contacted by tweet, and sent a bouquet of flowers as a surprise.

• Dutch airline KLM’s ‘How Happiness Spreads’ Foursquare-based campaign For brands, a serious (and sincere) R.A.K. employed a ‘Surprise Team’ to give strategy may mean no longer being seen passengers tailored, unexpected gifts as inflexible and unwieldy, but as more at the airport. Throughout November 2010, compassionate and charismatic instead. as soon as someone checked-in at a KLM Something which is, of course, priceless Foursquare location within its network and actually fun. of airports, the Surprise Team went online to find more background information about Fueling the R.A.K. trend is brands’ ability to actually know what’s happening in consumers’ the person, decided upon a suitable gift and gave it to them before they flew. lives (good or bad!), as people publicly

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Bill & Melinda Gates Foundation providing medical treatment in Nigeria.

EMERGING GENEROSITY

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giftastranger.net Happiness Brussels

In 2011, Generation G(enerosity) will continue to give. Consider Emerging Generosity, which is about brands and wealthy individuals from emerging markets (yes, especially China) who will increasingly be expected to give, donate, care and sympathise versus just sell and take. And not just in their home countries, but on a global scale. It’s a profound cultural change and a consumer demand that their counterparts in mature markets have had a few years to getting used to.

Thanks to shifts in power and a relentless Transparency Triumph, the ones who don’t know how to give will have no excuses left, and nowhere to hide.

• The number of millionaires in India in 2009 grew 51 percent, to 126,700. (Source: Merrill Lynch, June 2010.)

• 88-year old Yu Pengnian became China’s first billion-dollar philanthropist in April 2010.

The Yu Pengnian Foundation today has USD 260 million of bank deposits, and a Hong Kong and Shenzhen property portfolio worth just under USD 1 billion, which is expected to contribute USD 50 million of cash each year to the Foundation. (Source: Hurun Rich List, October 2010.)

• In September 2010, Bill Gates and Warren Buffett hosted a dinner for China’s ultra-rich to promote philanthropy. The event was similar to their efforts to get US billionaires to pledge to give away at least half their wealth, although the two denied that they were recreating the pledge or pressurising Some fun stats: people to give, merely using the event • 86% of global consumers believe that business to answer questions and discuss issues needs to place at least equal weight on society’s around developing a culture of philanthropy. interests as on business’ interests. 78% (Source: Washington Post, October 2010.) of Indian, 77% of Chinese and 80% of Brazilian consumers prefer brands that support good This year, any brand or individual doing causes, compared to 62% of global consumers. exceptionally well, will be expected to join 8 in 10 consumers in the India, China, Mexico Generation G. Thanks to shifts in power and Brazil expect brands to donate a portion and a relentless Transparency Triumph, of their profits to support a good cause. the ones who don’t know how to give will (Source: Edelman, November 2010.) have no excuses left, and nowhere to hide.

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‘Friend Store’ Levis

SOCIAL-LITES & TWINSUMERS

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In 2011, word of mouth and recommendations will be even more dependent on peer-to-peer (P2P) dynamics. If Twinsumers (consumers with similar consumer patterns, likes and dislikes, and who are hence valuable sources for recommendations on what to buy and experience) are all about improving ‘search curation’, Social-Lites are all about discovery, as consumers become curators; actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences.

Levi’s has integrated its online store with Facebook, allowing shoppers to socially interact with friends and create a ‘like minded shopping’ experience.

Rather than having to call, text or even email people personally, social networks’ streams allow users to easily broadcast information to a wide range of people without interrupting or intruding. So, consumers will talk more about brands this year than ever before, and opportunities for brands that create engaging content that consumers want to share, or that have personalities that actually engage consumers will also be

bigger than ever. Making it easy for Social Lites to retweet or ‘like’ this content is of course requirement number one.

Examples: • Gogobot is an online travel community with a social lens. Users ask questions about destinations (think ‘Where’s a fun restaurant in Paris?’), not just to the Gogobot community but also to their Facebook and Twitter networks.

Gogobot collates the answers, and includes pictures and links to all of the places mentioned.

• Levi’s has integrated its online store with Facebook, allowing shoppers to socially interact with friends and create a ‘like minded shopping’ experience. From the Levi’s store, users are able to share products with friends through the Friend Store, ‘Like’ them or search for ‘Top Liked’ products within Facebook.

• Amazon now enables users to integrate their Facebook and Amazon accounts.

The feature allows Amazon to connect through to a user’s social network, then base recommendations (think books, DVDs and musicians) upon the information found in his/her Facebook profile.

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Water Purifier Ovopur

ECO–SUPERIOR

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Wind Turbines Eddy GT

The number one challenge for governments, consumers and businesses (recession or no recession) remains the quest for more environmentally sustainable societies and economies. When it comes to ‘green consumption’, expect a rise in Eco-Superior products: products that are not only ecofriendly, but superior to polluting incumbents in every possible way. Think a combination of eco-friendly yet superior functionality, superior design, and/or superior savings. Why the need for Eco-Superior? The number of consumers actively seeking out ‘green’ products is reaching a plateau, as mainstream consumers start to question the value and efficiency of going green:

Expect to see a number of leading brands switch from purely marketing their products’ sustainability and eco-friendliness and taking aim right at the heart of traditional alternative.

• While 40% of consumers say they are willing to purchase green products, only 4% of consumers actually do when given the choice. (Source: Journal of Marketing, September 2010) • 58% of global consumers think that environmentally friendly products are too expensive, while 33% of global consumers

think that environmentally friendly products don’t work as well. (Source: GfK Roper, September 2010) Expect to see a number of leading brands switch from purely marketing their products’ sustainability and eco-friendliness (with its niche reach) and taking aim right at the heart of traditional alternatives: stressing the superior quality and design, increased durability and/ or lower running costs of products in ways that will appeal to even the most eco-skeptic, self-centred or financially-challenged consumer.

Cities are increasingly seen as a solution to the quest for environmental sustainability, with high-density living promoting a more efficient distribution of resources (although not everyone agrees). Indeed, urban environments offer forward-thinking brands a whole host of opportunities to delight eco-conscious city dwellers: • In September 2010, US based Urban Green Energy launched a wind turbine called eddy GT. The product boasts a special vertical axis design that enables power to be generated without making much noise and regardless of wind direction. The turbine was specifically designed for city rooftop use.

• Meanwhile, the Ovopur is a well-designed natural and environmentally friendly water purification device.

Š Philips Design

Phillips DirectLife

WELLTHY

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Controllers Playstaion Move

As good health is now as important to some consumers as having the biggest, newest or shiniest status symbols, growing numbers of consumers will expect health products and services to prevent misery if not improve their quality of life, rather than merely treating illnesses and ailments. Some signs of the times:

health issues with other consumers.

Last but not least, the ‘consumerization’ of health means that more consumers will choose products with embedded health benefits that are actually well designed, desirable, accessible, fun, tasty, interesting or storied. Some examples:

• An estimated 500 million people worldwide are expected to be using mobile healthcare applications by 2015. (Source: Research 2Guidance, November 2010)

• Phillips DirectLife is a small, lightweight, wearable monitor that builds up a detailed record of users’ daily activities. Users’ data is uploaded to their personal DirectLife site, showing how many calories were burned throughout the day. Users track their progress against their personal targets, and have access to an online personal coach. Users can also compare themselves to other members and connect with the online community to encourage them to share tips and stay motivated.

In the next 12 months, count on even more monitoring technologies becoming portable or even wearable.

• There were nearly 17,000 health apps available in major app stores in November 2010, with 57% of them being aimed at consumers rather than health care professionals.

(Source: Research2Guidance, November 2010) In the next 12 months, count on even more monitoring technologies becoming portable or even wearable, as well as getting cheaper (the smartphones held by many consumers are now more advanced than most dedicated medical devices).

Also, both regular and dedicated medical social networks give audiences a platform to share, compare and discuss their personal

• Both Microsoft and Sony have recently released motion sensing game controllers: the X-Box Kinect and Playstation Move.

The systems use cameras (and a controller for the Move) to detect users’ movements during gameplay. The controllers were designed not only to heighten the gaming experience but also, much like the Nintendo Wii, to add a physical and healthy dimension to it, with games like EA Sports Active 2 and Get Fit with Mel B.

online shoe store shoesales.com.au

PRICE PANDEMONIUM

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now buy using collective buying power, helped by the host of services and social networks that make it easier than ever to organize and act. 2010’s big success story Groupon and Living Social lead the way.

• More consumers are constantly connected, Group buying sites are springing up everywhere, and when they hear about new deals online from GoNabit (that covers Arab markets can quickly and easily spread them through such as Kuwait and Dubai), to Big Lion their social networks.

(Russia) and Daily Deal (Germany).

Group buying is here to stay.

While consumers have always looked out for special offers and discounts, new technologies and services mean that 2011 will see total Price Pandemonium:

Brands will continue to respond with a host of innovative new business models and pricing strategies in the next 12 months.

• Flash sales. Both groups and member communities frequently use time-limited offers to encourage impulse buys. By limiting the time available, and frequently only making sales available to members, brands are able to shift excess inventory quickly. DellOutlet • Mobile devices increasingly enable consumers and Threadless have seen great success to find or receive dynamic deals right at the with Twitter flash sales. Flash sale site Hautelook point of sale, or to compare prices online. integrated its offers into its Facebook page, Case in point: Amazon.com just released so that consumers could take up the day’s an iPhone app that allows users to compare deal without leaving the site. Indeed, with prices by scanning the product’s barcode, so many daily deals, there are now sites like photographing it or saying its name.

Yipit and MyNines that aggregate all the deals.

Furthermore, whipping out one’s smartphone at the counter, getting the latest deal via GPS, or barcode scanning is well, smart and a source of status rather than shame.

Brands will continue to respond with a host of innovative new business models and pricing strategies in the next 12 months, building on: • Group buying. The 2 billion consumers

• Dynamic pricing. Traditionally practiced by the airline industry, improvements in real-time information are now allowing other sectors to experiment with innovative dynamic pricing models, such as the US-based Off and Away, which auctions hotel rooms, and Swoopo, a German ‘entertainment shopping’ site where every bid placed extends the auction’s time period.

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Interactive Shelf Talker FootJoy

INTERACTIVE RETAIL

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iPad Menu Pearl Restaurant

When product differentiation is non-existent and advertising goes unnoticed, consumer engagement becomes key to business success.

Many retailers are turning to interactive shopping experiences to solidify relationships. Since purchases are often the result of emotions, maximising a customer’s hands-on experience within a retail environment, whether in a physical store or online, may increase positive feelings and brand loyalty.

The trend in retail is to provide customers with comfortable and interactive surroundings that appeal to their physical senses.

Interactive shopping bags, dinosaur-themed malls and iPad menus are all examples of how retail stores are striving to differentiate themselves from other industry competitors.

These brands have turned positive in-store experiences into loyal customer relationships.

Creative marketing and design are changing the way consumers shop. Capturing a share of the market is a goal of all retail professionals.

Giants like Nike and now the National Basketball Association (NBA) are approaching retail markets from a new angle. The trend in retail is to provide customers with comfortable and interactive surroundings that appeal

to their physical senses. It’s a perfect marriage between construction and marketing. Using a building’s structure and amenities to help market a product line - retail is receiving a high approval rating from the television generation - a consumer base is being mesmerised by sports, animation, and the glamour of Hollywood.

Intel recently unveiled its Connected Store concept, a two-storey, 2400 sq.ft futuristic retail storefront equipped with the latest technology for the retail and digital signage market segments. The store is designed to offer customers proof-of-concepts that aim to combine the best of online interactive shopping with the traditional retail environment.

Notable industry brands such as Adidas, Best Buy, Kraft Foods and Procter & Gamble, in addition to researchers at the MIT Media Lab, worked with Intel to create these experiences and showcase what’s possible.

The interactive demos illustrate how retailers are able to reduce energy consumption, lower total cost of ownership and increase profits with features such as remote manageability and anonymous video analytics.

Growing your brand. Future trends that affect you.

An occasional series.

March 2011 grow researches future trends to find macro trends that are going to affect your business. Companies that take note of these macro trends and incorporate the findings in their business model will increase their share of market and share of voice and reduce their customer acquisition costs as their brand strengthens.

These macro trends (long life, major pull) run across all demographics, economies, government, people and technologies and therefore have a long shelf life, usually over decades, with a major effect on the fundamental fabric of society and the way it operates and communicates.

Our focus on clear thinking and beautiful design enables grow, the largest independent branding, advertising and design agency in Qatar to provide that “Factor X” ingredient and insight that makes ordinary brands great.

Success in business depends upon your ability to understand the “big picture”, the long term macro trends and changes that determine the future business environment. Our role is to help you understand these trends and shape your company and your brands’ future. grow, a successful and refreshingly creative Doha-based advertising and design agency focused on brands. Successful clients include Alaqaria, Carnegie Mellon, Commercialbank, Doha Bank, Harley Davidson Qatar, Four Seasons Hotel Doha, International Bank of Qatar, Museum of Islamic Art, Qatari Diar, Qatar National Hotels, Ritz Carlton Doha, Ramada Plaza Doha, Sharq Village and Spa and Weill Cornell Medical College. For more information visit http://www.growqatar.com or email grow@growqatar.com

Editor: Anthony Ryman Designer: Dominique Netto Credit: www.trendwatching.com/trends/11trends2011/ www.trendwatching.com/trends/citysumers/