What is a Global Consumer?

RetailWeek GLOBAL CONSUMER

Homogenised Geography

p2

GLOBALISATION

Multinational Apple

IMPERIALISM

p3

Demand Organisations

www.retail-week.com

THE

CULTURAL

p3

Alignments Difference

December 2014 ÂŁ5.99

GLOBAL CONSUMER ...

FACT OR FICTION? www.retailweek.com

p3

RetailWeek GLOBAL CONSUMER

Homogenised Geography

p2

GLOBALISATION

Multinational Apple

IMPERIALISM

p3

Demand Organisations

CULTURAL

p3

www.retail-week.com

Alignments Difference

p3

December 2014 £5.99

Global Consumerism: Fact Or Fiction?

‘Being a consumer is now integral to the human experience, something none of us can avoid.’ (Schwartz, 2010) Capitalism, western/ cultural imperialism, Americanisation, globalisation and developments in digital media have now created consumers that have more exposure than ever before.

With connections across all networks it is easy to become merged into a global way of thinking.

However ‘Is geography still the most appropriate demographic, or are other means becoming important’ (Retail-week. com, 2014) Is there such thing as a global consumer? Consumers are now being exposed to different cultures and beliefs which influences the consumer they chose to be. So why is it important to retail that we consider whether a global consumer exists?

Kate Waddell, Managing director of consumer brands at dragon rouge London, ‘Believes that the term global consumer has more relevance to the capacity for todays consumer to have more global than local view on the world.’ (Retailweek.com, 2014) This 2

may be because the increase in travel has influences decisions made by a consumer.

Consumers are now traveling more than ever.

Consumer are coming across new experiences and culture is becoming more homogenised. We now have a lot more alignments because of travel. The travel industry generated $4.4tn across the global $3.8bn per day. (BBC News, 2014)

However only still a small percentage of people may be able to afford to travel.

‘Before the sixteenth century people did not go on holiday. There were religious festivals, with which many of our bank holidays still coincide, and on those days no work would be done.

But people did not travel for the sake of it. By the seventeenth century, opportunities for travel and tourism widened a

little (Infobritain.co.uk, 2014). People start to become better educated on the world and demands of the local consumer became more of a global consumer.

A global consumer is created through the connections we have and the paths we chose to take.

It can be looked at in terms of the network theory.

‘The network society is based on networks,

and communication networks, its extends to every country in the planet, as it is diffused by the power embedded in global networks of capital, goods, labor, communication, information, science, and technology. So, what we call globalisation is another way to refer to the network society, although more descriptive and less analytical than what the concept of network society implies.(The 2014). However there is no real obvious beginning to a global consumer.

There are so many paths which could have created a global consumer.

We could argue that a global consumer creates the demand of cultural differences and diversity.

On the other hand we could also argue that because of the cultural differences, a global consumer is created.

interweaving of markets, technology, systems & networks in a way that it is now shrinking the world to become homogenised. ’(Friedman, 2012) However Globalisation influences culture and the creates a global consumer.

Globalisation is a series of developments concerning the structure of the world. Brands such as Apple have ‘broken down geographically barriers’ (Retail-week.com, 2014) they have become very symbolic in the western world with global events.

Cultural imperialism effects retailers as they are now having to consider the demand for foreign good. Big multinational companies are starting to have an affect on people and their cultures.

‘The World Systems Theory, like dependency theory, suggests that wealthy countries benefit from other countries and exploit those countries’ citizens. In contrast to dependency theory, however, this model recognises the minimal benefits that are enjoyed by low status countries in the world system. The theory originated with sociologist Immanuel Wallerstein, who suggests that the way a country is integrated into the capitalist world system determines how economic development takes place in that country.’

(Boutellier, n.d.) When talking about a global consumer we have to think about the world systems theory as the ‘Global consumer’ may only be about the economically developed

countries. This suggests that the meaning of a global consumer is about the western world and their values and influences.

However Boutellier backs up the argument around how wealthy countries benefit from each other, in this case retailers benefit from global consumers, as people are now more trusting of brands and companies because of there ideologies.

Cultural imperialism is an important factor to look at when considering a global consumer. Cultural imperialism is ‘a culture of a large and powerful country, organisation, having a great influence on another less powerful country.’ (The Classroom | Synonym, 2014).

The model is used to ‘increase demand for foreign goods. (Mishra, 2014) also the use of political and economic power is used to spread the values and habits of a foreign culture at the expense of native culture.

This is creating a global consumer. (Mishra, 2014) Cultural imperialism is bring countries together and giving them the same ideologies as each other. The Less powerful countries then are taken over my globalisation and multinational companies.

‘Globalisation is the 3

As a part of my research into what a global consumer was, I asked friends and colleagues what their thoughts were on a global consumer. This research then allowed me to to look into what I thought were the important facts of what a global consumer was. Some important factors I found were; Being a conscious global consumer, the feeling of being in-store & Online, the experience of different cultures, traveling, trading and growth of consumer goods. Many people have different opinions on a global consumer because of reasons such as education, affluence and wealth. However I feel that what makes a global consumer is the alignments that are created in society by globalisation and connections across the world.

Global consumers have choices around what they want to experience (Retailweek.com, 2014) Young

fashion is a cultural alignment when thinking about a global consumer. Companies such as Asos, Topshop, Zara and Mango are now trading internationally because of the culture alignments and demands. Not only do some of these brands have shops in different countries they also deliver to over 100 different countries. Retailers are always aware of the demand of becoming international ‘Asos sales are expected to break through the £1bn barrier this financial year as the company benefits from shoppers, the switch to the internet and rapid expansion overseas. (Butler, 2013) But why do young people want to all look the same?

‘There is internationalism in young fashion’ (Retail-week. com, 2014) Younger people want to dress around the brands ideologies, our cultures are becoming so homogenised by influences such as the celebrity culture and americanisation.

Another example of this is the brand Superdry. Their chief operating office said that ‘You

Sam Brooks, Age 29, MA in Exhibition Design ‘Purchasing goods from all over the world makes me a global consumer, however I don’t know if it makes me a global consumer if I’m purchasing them from the UK.’

4

Elizabeth Storey, Age 38, Design Manager ‘I think you have to be a conscious global consumer. When I travel I am always inspired by new ideas and things around me.’

have to now take a globally consistent approach to your brand, the global consumer has amalgamated into a more consistent consumer’. (Retailweek.com, 2014).

consider the cultures and local demands. Just because young people like to dress the same doesn’t mean that they have the same cultural values.

However the company Asos have considered culture differences. Younger fashion culture maybe the same for many young people. However there values of fashion will be different. Take china for example, Asos had to take a different approach to there homepage when launching.

There research found that they ‘ slightly tailor there sites to appeal to local consumers.

The chief information officer said the homepage has twice as long homepage as ‘Chinese consumers really love to understand the product’.

Retail-week.com, 2014).This indicates thats although we shop for the same products, brands still need to think about local values to engage the consumer.

When Companies are expanding globally they have to

Technology is advancing fast, Most companies are moving online. ‘The way we shop is undergoing a radical shift.

Forces like e-commerce, globalisation, and mobile technology have been impacting traditional patterns of consumption for more than a decade, and their effects are increasingly powerful every day.’(Standen and Standen, 2014). Multinational companies have been impacted with the change in patterns and culture. ‘With the globalisation of culture, the use of Apple products have caused a culture phenomenonfetishism. More and more people think it is a trend and fashion to use Apple.

They overstate the meaning of Apple products.’ (Temple Media Institutions, 2013) People from different cultures

Sabrina Lungo, Age 25, Design Manager ‘I feel more like a global consumer when I’m shopping online, when I’m in stores I feel like a local consumer.’

Jamie Simmonds, Age 23, Industrial Design Graduate ‘I am a global consumer as I purchase items which are made in other countries.’

can now connect with each other and create a global village. The global consumer is affected by the ideologies around the brands.

‘Global connectivity simulates interest for information from around the world.

Before the extensive networks were formed by technology, news events and foreign cultures were less likely to be experienced beyond city, regional, or even national borders’ (Lull, 2002) This is important to think about as now, the global consumer is growing because of the ‘extensive networks’ which are available.

Although globalisation creates a global consumer, it also seems that globalisation kills the local culture identities as global brands use ideologies to homogenise culture.

Cultural alignments are also created when immigration around the world happens. 560,000 people immigrated to the UK in the year ending

March 2014 which were EU citizens. 265,000 nonEU citizens immigrated to the UK in the year ending March 2014. (Ons.gov.uk, 2014) Immigration has lead to cultural changes.

Countries around the global start to cater for other cultures because of the shift in cultural demand.

Bricklane, London is a good example of how immigration has affected the culture of a place and our views.

‘In 2001, 68% of the ward’s population was of Bangladeshi origin. Most of these originate from the Sylhet region of the country.

Bangladeshis have to some extent made Spitalfields their own.’

(Bbc.co.uk, 2014) Locals and tourists travel to tastes the curries of Bricklane.

This has become a popular culture.

Bangladeshi restaurant bring the demand of the consumer.

However the culture spreads but it looses its essence and meaning.

Consumers think they are being cultural by going to these restaurant

however the culture becomes submerged and homogenised and the experience of the indian is catered to the consumer.

Retailers now try to globalise there shops to cater for an affluence of an area. An example of a retailer who now looks at the affluence and the culture demographics to know what food to sell within stores is Tesco.

This makes stores more community friendly and caters for the global consumer. This shows how companies are starting to consider cultural changes and demands because of communication, travel immigration, and overall technology.

However there are negative reactions when catering for a global consumer.

A Sainsbury’s branch emptied its kosher food shelf after the manager feared anti-Israeli protesters outside would attack the store. (The Evening Standard, 2014) This is an example of extreme opinions and reactions people are

having to change and the submerging of cultures.

Just because global products are in our networks, does this mean that we are now all global consumers?

Its about the cultural changes in everyday lives.

Consumers are exposed to technology which allows them to connect with the world. Our cultures have become submerged.

Someone in china may use their iPhone different to someone in the United Kingdom. But they are still using the same product, still supporting the global brand. I think that globalisation and multinational companies have created the global consumer as they have made it easy for consumers to consume whatever they want, whenever they want. We are now in the 21st century where any experience is possible and people accept cultural differences bring cultures closer together.

5

Annotated Bibliography Boutellier, H. (n.d.). The improvising society. This book helped me to understand The World Systems Theory. I was able to relate this theory to how minimal benefits that are enjoyed by low status countries in the world system. This helped me understand who I was talking about when thinking about a global consumer.

Annotated Bibliography Temple Media Institutions, (2013). The Globalization and Ideology of Apple Inc.. [online] Available at: http:// templemediainstitutions.wordpress.com/final-projects/the-globalization-and-ideology-of-apple-inc/ [Accessed 23 Nov. 2014]. This website helped me to understand how apple are classed as a company which is global and how globalisation and a global consumer is affected.

BBC News, (2014). The facts about global travel. [online] Available at: http://www.bbc.co.uk/news/world-28487028 [Accessed 23 Nov. 2014]. This website helped me to understand statistics behind travel so that I could think about how a global consumer has been created through travel.

The Classroom | Synonym, (2014). What Is the Meaning of Cultural Imperialism? | The Classroom | Synonym. [online] Available at: http://classroom.synonym.com/meaning-cultural-imperialism-7841.html [Accessed 4 Dec. 2014]. This webiste helped me to understand the definition on cultural imperialism.This was important as this was an argument in my essay as to why we have a global consumer.

Bbc.co.uk, (2014). BBC - Legacies - Immigration and Emigration - England - London - The world in a city - Article Page 3. [online] Available at: http://www.bbc.co.uk/legacies/immig_emig/england/london/article_3.shtml [Accessed 26 Nov. 2014]. This website helped me to understand the immigration in the uk so that I was able to think about what affects this had on communities such a bricklane.

The Network Society: From Knowledge to Policy. (2014). 1st ed. Centre for Transatlantic Relations: Johns Hopkins University: Edited by Manuel Castells and Gustavo Cardoso, p.5. This journal helped me to understand the network theory and how I could use it in my essay.

Butler, S. (2013). Online fashion retailer Asos launches Chinese website. [online] the Guardian. Available at: http:// www.theguardian.com/business/2013/nov/12/asos-launches-chinese-website [Accessed 7 Dec. 2014]. This website helped me to understand what the new asos chinese website was like and why it is so important to asos to be a multination company.

The Evening Standard, (2014). Sainsbury’s criticised after staff emptied Kosher shelves during Gaza protest. [online] Available at: http:www.standard.co.uk/news/london/sainsburys-branch-removes-kosher-products-fromshelves-over-antiisraeli-protest-outside-9675278.html [Accessed 26 Nov. 2014]. This article helped me to understand the difficulties around trying to cater for a global consumer.

Friedman, T. (2012). The Lexus and the olive tree. New York: Picador. This book helped me to understand fried mans view on globalisation and how the world is becoming homogenised.

Infobritain.co.uk, (2014). History of Holidays. [online] Available at: http://www.infobritain.co.uk/History_Of_Holidays.htm [Accessed 4 Dec. 2014]. This website helped me to understand the history behind travel and why people started traveling.

Images Google.co.uk, (2014). bricklane culture - Google Search. [online] Available at: https://www.google.co.uk/ search?q=bricklane+culture&es_sm=91&biw=1280&bih=566&source=lnms&tbm=isch&sa=X&ei=rhGGVL21E a3U7Abo2YDADQ&ved=0CAYQ_AUoAQ#tbm=isch&q=bricklane+culture+indina&facrc=_&imgdii=_&imgrc =Y0gapMg3xP10JM%253A%3B9_QHuRO1dwqV8M%3Bhttp%253A%252F%252Fsi.wsj.net%252Fpublic%252Fr esources%252Fimages%252FEW-AL615_pallin_G_20111012164607.jpg%3Bhttp%253A%252F%252Fonline.wsj. com%252Farticles%252FSB10001424052970203476804576616682225637832%3B553%3B369 [Accessed 8 Dec. 2014]. This website was for the image of bricklane on page 5.

Lull, J. (2002). Culture in the communication age. London: Routledge. This book helped me to understand how technology has connected the global and how this may have created a global consumer.

Mishra, G. (2014). Globalization and Culture by Girish Mishra. [online] Stateofnature.org. Available at: http://www. stateofnature.org/?p=6292 [Accessed 4 Dec. 2014]. This journal helped me to understand globalisation and the affects that is has on culture.

Ons.gov.uk, (2014). Migration Statistics Quarterly Report, August 2014 - ONS. [online] Available at: http://www.ons. gov.uk/ons/rel/migration1/migration-statistics-quarterly-report/august-2014/index.html [Accessed 4 Dec. 2014].

This website helped me to understand migration statistics.

Retail-week.com, (2014). International analysis: Is there any such thing as a global consumer?. [online] Available at: http://www.retail-week.com/topics/international/international-analysis-is-there-any-such-thing-as-a-global-consumer/5064526.article [Accessed 23 Nov. 2014]. This article from relate week gave me the idea of looking in deeper to a global consumer.

Schwartz, D. (2010). Consuming choices. Lanham, Md.: Rowman & Littlefield Publishers. This book helped me to understand why consumer make choices in the 21st century and then I could relate this to how this might affect a global consumer.

6

Sfmoneycoach.com, (2014). [online] Available at: http://sfmoneycoach.com/wp-content/uploads/2014/06/oSHOPPING-BAGS-facebook.com_.jpeg [Accessed 8 Dec. 2014]. This website was for the mage of the shopping bags on page 2.

Google.co.uk, (2014). earth - Google Search. [online] Available at: https://www.google.co.uk/search?biw=1280& bih=566&noj=1&tbm=isch&sa=1&q=earth&oq=earth&gs_l=img.3..0l10.1404206.1405441.0.1406169.5.4.0.1.1.0 .194.478.2j2.4.0.msedr...0...1c.1.58.img..0.5.481.RwCrMqztZmM#facrc=_&imgdii=_&imgrc=oqvjI_pwIxiZ4M% 253A%3BPumZWpsTCyw2jM%3Bhttp%253A%252F%252Famaimages.com%252Fwp-content%252Fuploads%2 52F2014%252F11%252Fearth_from_space_background_wallpaper.jpg%3Bhttp%253A%252F%252Famaimages. com%252Fearth-from-space-background-wallpaper%252F%3B2560%3B1600 [Accessed 8 Dec. 2014]. Image of front cover.

Ruby Spencer Student ID: SPE12353241 Tutor: Mo-Ling Chui Locating Cultures- Global Design

7