Flannel's Not Hot for 2009.
Trying on new and exciting ideas is part of Suburbia's DNA, so each January we like to share some of the trends capturing our attention. Conventional wisdom states that fashion always returns to the classics in a recession. So if the economic downturn was predicted in last season's velvets, plaids, and flannel, where will 2009 take us? Here's a taste of what's catching our eye:
Frugal is in fashion.
Who knew economic turmoil and uncertainty would create social change, with consumers planning to live on less and do more thinking about contentment and simplicity? Maclean's Magazine talks about the "frugal future" and cites David Grusky, a sociologist at Stanford University who says we're being pushed into a new age of post-materialism, the culmination of a kind of perfect storm.1 While Boomer backlash and slower living aren't new ideas, the markets have forced many to re-examine priorities. Where do retailers, whose job it is to sell, fit into this new pared-down lifestyle?
We're watching as the major players bob-and-weave to adapt to the current economic reality and continue to appeal to consumers, adjusting their communications and culling the more overt consumerist messaging. Case in point, once "the ultimate in rugged sophistication," the now-humbled Hummer lets you know its highway mileage is similar to that of other SUVs. Retail giants like Wal-Mart are remodeling rather than opening new locations; making tactical changes that include colourful interior make-overs; appealing to women by lowering shelving; and making it easier to navigate the stores. Variety and convenience are now taking a backseat to value, supported by messaging that focuses on lifestyle - weight loss, healthy eating and fresh foods. Their current "Save Money. Live Better." tag line hits the mark with consumers' new search for simplicity.
[As a side note, US department store Marshall's runs a fascinating counter-play with their "Shamelessly Shopportunistic" campaign. While in reality buying designer duds at discount prices fits the new frugal mindset, we wonder if the messaging is now a miss in the current climate?]
Web 2.0 is all grown up.
More than ever, consumers are using social networks to connect. Web 2.0 - a term that describes the trend in the way developers and users interact with the web rather than an actual upgrade in technology - is now mainstream. Professor BJ Fogg, who is writing a book on the psychology of Facebook, calls it "the most effective persuasive technology ever" and claims that marketing as we know it will cease to exist.2
If you're not yet on board, consider that Facebook alone claims 140 million active users worldwide. A recent survey by shespeaks.com found that 70% of women with children ages 13 to 17 had talked about products on social networks; women over 40 are using social networks to research products, shop and monitor their kid's activities.3
Furthering credibility as an information source, it only took a few hours to create a reputation disaster on Twitter when Motrin misjudged mommy blogger reaction to their Mom-Alogue video.4 Even CNN solicits comments on broadcasts, its trailer listing their Facebook, MySpace and Twitter addresses.
If you're not a tech-star, knowing where to begin can be daunting, and our Director of Interactive, Chris Burdge, has been helping clients understand how to get distribution within these social networks and create effective social marketing strategies. Web 2.0 can seem like an ever-moving target, but the key is understanding that within the high trust culture of social networks, consumers are looking to interact with brands. Facebook social ads (a targeted tool that pulls information from user profiles), blogs, videos, podcasts, wikis and mobile platforms are all tools at your disposal that allow your brand to become interactive. It's a fascinating challenge to embrace.
Google trends.
We love the "spicy" rating. After the beta site suffered a few hiccups in which bloggers blew the whistle on aged data, it now updates trends daily, and Hot Trends hourly. The software searches for sudden trends in popularity, based on search volume data. You can also see audiences of specific websites with the Trends for Websites function. And as a tool for marketers, Insights for Search allows tracking of words and phrases that are typed into Google's search box, with a geographic filter. Good intel for your web strategy.
Millennials & Preward cards.
The 12-to 26-year old Millennials (also known as the Y or Net Generation) challenge marketers to stay young and plugged in. "Weaned on cell phones, e-mail, and round-the-clock Internet, Millennials are just as media-savvy as the marketers who target them."5 Retailers having success reaching Millennials are doing so on their turf. Any work you do understanding Web 2.0 in 2009 will pay dividends against the Millennials in future.
Facecard.com offers a prepaid credit card aimed at Millennials, their parents and the businesses that target them. After filling in an application, teens (must be over 13) get a card that allows them to get cash from ATMs, make friend-to-friend payments and receive money from friends and family. They can also receive "prewards" digital incentives (think, coupon) put directly on the facecard to be used at specific retailers. Retailers pay a fee and are able to target by age, location and personal interests. The $2 to $3 prewards are redeemed by credit card allowing retailers to track redemption. The "12 days of facecard" promotion saw retailers such as cloudveil.com, rei.com and target.com taking part.
Back to the runway.
So let's embrace the fashion of frugality - the runways are telling us we can't go wrong with understated classics and great quality for the coming year. The hot, yet enduring classic 'the clutch' ironically seems to describe retailers' desire to hold onto their customers, but perhaps this year brings a new way to reach them. We encourage all of us to embrace at least one big new idea in 2009. If the future is also a brightly coloured jumpsuit, then it's time to take that step forward, and leave the flannel behind.
1 Maclean's Magazine (2008, November 3) Living on Less. p.43, Colin Campbell & Jason Kirby.
2 Fast Company (2008, May 19) Why Facebook Is Even Bigger Than You Think. Kermit Patterson. www.fastcompany.com/articles/2008/05/interview-bjfogg-on-facebook.html
3 shespeaks.com (2008, December 11) Social Networks and 40-something Women. www.shespeaks.com
4 The Wall Street Journal Digital Network (2008, November 16) Motrin Faces Twitter Headache Over New Video Campaign. Andy Beal. http://voices.allthingsd.com/20081117/motrin-faces-twitter-headache-over...
5 Businessweek (2008, August 22) Marketing To Millennials. Dan Macsai. http://www.businessweek.com/smallbiz/content/aug2008/sb20080822_537869
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