★ twitter.com/gleonhard★ www.mediafuturist.com
We are all struggling with...
Broadband Culture
Broadband Culture
Juggling Rivers of Information & Media
The global economic fabric has changed
Many trusted old business
models seem to have
suddenly stopped working
Things have dramatically changedWe are entering a creative, social and collaborative eraMany of us are more concerned with global issues such
as Energy & EnvironmentMany of us are increasingly more concerned with
Self-Fulfillment
The Switch from Closed to Open: Software
The switch from Closed to Open: News Media
The switch from Closed to Open: Elsewhere
Decentralization vs Destination
Microsoft / Windows Google
MTV Youtube
Tower Records / HMV Spotify / Last.fm
Traditional Telecoms SkypeCable TV Internet TV / IPTV
Centralized >>> Decentralized
Media Consumption Trends
0%
25%
50%
75%
100%
2008 2009 2010 2012 2015
Percentage of Revenues from Digital Services *my own estimates
Music Video Games Books Mags & Print
In Media, no doubt...
From
To
Meaning
Control TrustOpenness
New Economic Trend-Tags• Believe Economy (perception rules)
• Trust Economy
• Attention Economy
• Experience Economy
• Attraction Economy
Luxury (re)-defined•In economics, a luxury good is a good for which demand
increases more than proportionally as income rises, in contrast to a "necessity good", for which demand increases less than proportionally as income rises.
•Another market characteristic of luxury goods is their very high sensitivity to economic upturns and downturns, high profit margins as well as prices, and very tightly controlled brands.
•Conspicuous consumption: the lavish spending on goods and services acquired mainly for the purpose of displaying income or wealth...a means of attaining or maintaining social status.
Potential Future Luxury Items
Was Is Will Be5
50
100100
50
10
TimeChoices
A trend? Luxury for myselfPlain and demonstrative extravagance
may no longer be the main goal
Real Privacy becomes a luxury
Personal transformation is becoming
more important than extroverted
presentation
Looking at this Future, I would like to ask:•Will Luxury still really be something that
is ‘not a necessity’?•Will the primary purpose of Luxury
products and services still be to display income or wealth?
•Will Luxury brands still be able to maintain tight control over everything, and prosper at the same time?
Leading luxury brands are Icons
<>The Internet creates... a
leveled playing field.
In your business, how important is
A table of...challenges
Product Centric Innovation User-Centric Innovation
Extreme Control over Brand Shared, Open Brand
Exclusivity Inclusive Specialness
Retail Stores Retail Spaces (RL, Web)
Was Maybe?
Luxury brands have their own ecosystemshad
A tough question for Luxury Brands
Exclusion drives value
Inclusion drives value
Music Industry Learnings
Comparing the the Music Industry and the Luxury Business
• Strong emphasis on ‘creative genius’
• Strong emphasis on controlling every step of the process, supply chains & distribution
• ‘We know what’s best’, top-down approach
• Iconic status of products, and the brand itself
Reviewing the assumptions...
Eight of ten purchases are emotionally driven.
Multi-sensory Environment?
Luxury is an Experience - so how could this happen Online?
Yes... Touch!
And
Source: MetheMedia.com
Can Luxury’s aura of conviction and exclusivity be preserved on the Web?
•Probably: Yes - if you put the same care into your web presence than you put into your products.
•How about exclusive web communities with exclusive memberships?
•How about exclusive content?
How about...
LuxuryTubeLuxury.fmLuxuryPeopleLuxuryOS?
Remember?“To bring our customers into our world, to convince them via the product.”
Analysts estimate that online luxury revenues account for below 5% of total global sales.
Source: WSJ
94 % of the ultra affluent in the United States regularly buy products online
Source: 2008 Unity Marketing study
Exclusivity... Online?
Let’s talk about
Instruments of Growth...
Some ideas on Brands 2.0
A brand is no longer a static ‘thing’A brand is connected, living entity (i.e. part of an ecosystem)Brands are questioned entities, andIncreasingly transparent... andSoon, so much harder to control
In the near future, a brand's equity may well not rely on how well it is controlled, but on how well it is shared...?
New kinds of Brand Narratives...
Social media
Social Media is becoming... CRM
Social Media is just a component of
Social Business
Information > ConversationInterruption > EngagementAnnoyance > Entertainment
This is an Ad > This is Content“Great products that have marketing
embedded in them” (J. Hicks, CPB)
“Great products that have marketing
embedded in them” (J. Hicks, CPB)
Some 2009 Advertising Trends
•Mobile Advertising will explode•Twitter will enter advertising•RSS & feeds will finally go mainstream•Podcasts (audio & video) keep increasing in reach•Word of mouth / mouse will continue to increase in importance, and so will UGC as a key driver
•Display advertising will continue to decrease, spending on Search (Social!) will grow dramatically
The Future is not about Technology...
Emerging Cultural Practices
The $$ always follow the Habit-Shifts
Track and really understand the key Habit-Shifts and you’ll find the new revenue opportunities
What remains crucial:
being real i.e. authentic, validated and certified
Summary
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