Beyond efficiency – design creates competitive advantage
Previously Published on www.mpdclick.com
For the spring summer 10 season Mudpie looked towards a ‘Conscious Creative’ trend; this ethos looked at minimizing and repurposing waste, with an idealistic attitude towards both lifestyle and consumption. So how do you turn ‘green into gold?’ As Fiona Jenvey, CEO of Mpdclick, identifies ‘conscious’ as the trend for the coming decade we discover that a dual strategy for sustainability and a leaner design and product development process could deliver revenue and competitive advantage to the value driven retailer and brand.
Just as ‘celebrity’ defined the 90s, and the excess of bling defined the 00s, the second decade of the 21st Century will be defined by ‘conscious’ – a reductive attitude to both waste and consumption. Sustainability is no longer simply ‘on trend’, but is in fact a growing economic imperative as companies begin to realize the value of making sustainable choices. The question is ‘how do we create competitive advantages from sustainability rather than simply meeting an imposed government standard?’ The ‘Cradle to Cradle’ (C2C) principle puts forward the idea of a whole new cycle of production and consumption which sees every product born and then reborn in a cyclic system and where material waste is re-used to make further products. Moreover how wasteful are our processes?
‘Lean’ is a production practice that considers the whole product development cycle and, when applied to design, cuts waste in any area of the product development cycle that does not create value for the end customer. Lean is centred around creating more value with less work and therefore less cost and is a practice that when combined with C2C could streamline the whole design, product development and production process. Within Mudpie’s design studio we have defined design as a process where creativity and product development flow seamlessly though our organisation resulting in proven higher productivity and quality.
The book ‘Cradle to Cradle: Remaking the Way We Make Things’, (now in its 5th edition) authored by William McDonough and Michael Braungart, explores the concept of building revenue by creating and then regenerating products to eliminate the need for waste. This new design perspective is further advanced by John Elkington with a concept called the ‘triple bottom line’, where top line growth is created by designing an intelligent integration of sustainability into the business value chain by designing and creating regenerative products that can eventually be thrown away with good conscience as the product will to go from cradle to cradle, rather than the cradle to grave. The vision of transforming unwanted waste into products is a compelling one but it requires radical changes in both the design and manufacturing process.
Brands such as the California based denim giant Levi Strauss & Co lead the way in regeneration and rethinking the production process; the eponymous denim label introduced the ‘Reused Jean Shoe’, which are created using denim waste from the Levis production facility. Levis is now accessing the environmental impact of traditionally, processing and finishing denim to achieve the well-worn, soft look and feel which requires large amounts of water and energy. The brand is developing a new eco-solution that can achieve up to 50% savings for both water and energy during the process and is said to bring both economic and environmental benefits to the brand.
Given that the UK alone discards approximately 2 million tonnes of clothes each year, the apparel industry is a key area that the ‘cradle to cradle’ concept can be applied. In the future we can hope to see more hard goods such as plastics and manufacturing waste repurposed into textiles and the machines used to make them become powered by new renewable energy sources. According to Mike Barry, head of sustainable business at the UK retailer Marks & Spencer (M&S), the drive for companies to differentiate themselves through creative sustainability initiatives is not only good for business but will open up new marketplaces over the next ten years. Firstly, there is simple efficiency; Berry has stated that “if you can save yourself money by less waste, less energy use, less water use, less packaging, that’s good for the environment, it’s good for you as a corporation.” Moreover waste is another area where M&S has shown demonstrable improvement; “In the last 12 months, (M&S have) driven down packaging use in our clothing business by 15%, so again that’s beneficial.” According to M&S’s research, some 80% of its customers – around 21 million people – say they want the retailer “to take a lead on environmental and social issues” and research suggests that customer sentiment is getting stronger in this area.
Perhaps one of the most innovative examples of sustainable practices comes from the contract interiors industry; Rohner Textil AG has produced Climatex® Lifecycle™ as part of a decision to pursue a dual strategy of growth and sustainability. Made of mostly Ramie, a rapidly renewable tropical herbaceous perennial Climatex Lifecycle is completely biodegradable – down to all of its chemical constituents. In addition, waste material is recycled during production. Rohner produced a fabric that revolutionised the textile industry and set a precedent for responsive environmental design, but what is most interesting for this contract textile manufacturer is the efficiency that this innovation has brought to the business. The result was a 30% increase in total output, a drastic reduction in costs, and the production of the first 100% biodegradable commercial fabric.
For the consumer, the coming decade will be about consideration; further creating the need for manufacturers, brands and retailers to introduce a whole new cycle of production and consumption which sees every product born and then reborn in a cyclic system. The UN’s COP15 Climate Change Conference in Copenhagen this December will act to increase media attention, making the environment the defining issue of our age. “Commitments to carbon reduction will then directly affect policy,” says Mat Hunter, a former partner at design and innovation firm IDEO and in the USA.
For business sustainable practices are no longer just about corporate responsibility but about creating a competitive advantage in a business environment, where raw materials, energy and transportation costs continue to rise. For the fashion business the nexus of sustainability and efficiency could be the next decade’s key driver of economic growth and is something that needs to start right at the beginning of the process – in the design studio.
Words by Fiona Jenvey, CEO Mudpie
China rebalances the world economy
Previously Published on www.mpdclick.com
As the world economy rebalances, Fiona Jenvey CEO of Mudpie looks at how China, and not the USA, will drag the world’s economy back towards growth now that the American consumer no longer has so much to offer. As the axis of economic power swings from West to East how can struggling brands create new opportunities by turning the fiscal downturn into economic advancement? Certainly creativity is an economic imperative for growth, but there are also some surprising alternative strategies which originate not just from China but an emergent trading partnership between the world’s most populous country and South America’s own giant – Brazil.
The 15 year period when the world economy relied upon the American consumer for growth is over; this fact was made clear at the G20 summit, which now aims to increase Chinese consumer demand and end the reliance on the American shopper. While the fashion industry continues to look for the next big thing, the mantra for this time is adapt, but this is not just about the product offer, it is equally about the market. Now is the time for brands to look outside of the box, away from Europe and the USA, moving their focus to the emerging East and taking inspiration from other dynamic and developing economies. As Western markets continued to contract in the second quarter of 2009, the Asian economy shows a different story. Figures indicate that Asia’s economy should grow by more than 5% this year, while many Western economies are predicted to contract, and China’s economy alone is expected to grow by 8.2% for the year.
China is at the forefront of the emerging East; the country is constantly changing and updating, adapting and upgrading. The largest nation in the world is changing at a rate so fast that it remains an enigma to many. The important question now is – how will China’s ever changing economy establish itself in the end? Will China become the creative hub of design for the East? Or will they move up the value chain, placing quality manufacturing, lean practices and strong export at their industrial heart? It is difficult to know, but for China to reach the zenith of its economic power it will need to join effective manufacturing, with strong exports and combine this with the ability to meet their domestic consumer demand.
China is home to a rapidly rising middle class consumer base; current figures indicate that there are more than 80 million middle class consumers throughout the nation with a household income that is reportedly expanding by 12-15% per year. Chinese consumers are estimated to spend 10% of their household budgets on clothing, comparatively more than American consumers who spend roughly 5% (US Department of Commerce), and this increase in emerging Asia’s consumer-spending could arguably act to offset the drop in demand in the US and Europe. This shift in spending from the West to the East could directly help to rebalance the world economy.
While the West looks East for business China looks West, but not to Europe and the USA but towards South America and the Pacific. In the first 6 months of this year China became Brazil’s biggest single export market for the first time, and many other Latin American countries are shifting their focus towards China, and the “Global South”. These promising trade and investment opportunities are fast turning China into a leading economic partner for Peru and many other Latin American countries; “The centres of power are shifting and the 21st century is about the Pacific,” says José Antonio García Belaunde, Peru’s foreign minister. Figures indicate that China’s trade with Latin America has grown at an annual average rate of some 40% since 2003, which is much faster than its overall trade. Despite the fact that China remains a major competitor to some Latin American countries, who are competing within the US market, Latin America’s new relationship with China has aided it dramatically in the bid to survive during the recession.
As China develops, the nation is waking up to the idea of creating their own aesthetic. “Modern China is trying to find its voice and command some form of authority in the creative domain,” says Vivienne Wang, brand manager of Neri & Hu, a Chinese fashion product and furniture design company. The country are increasingly exporting renowned designers such as Derek Lam, Anna Sui and Jason Wu, indicating that innovative design and creativity may help China move up the creative value chain. The growing middle class are increasingly interested in brand culture, but in addition to these home grown designs; the nation is home to vast numbers of flea markets where emerging designers sell their creations. Fairs, such as the Shanghai Creative Bazaar are reportedly fuelling an exciting alternative for the innovative shopper. “Modern China is about diversification,” Duncan Hewitt, BBC China correspondent “variety is being demanded more than ever.”
Words by Fiona Jenvey, CEO Mudpie
Refashioning the retail chain- brands go boutique
Previously Published on www.mpdclick.com
Fiona Jenvey, CEO of Mpdclick, explores how innovative and resourceful brands can look towards the hotel and hospitality industry for inspiration. Ubiquitous conformity is no longer the way forward for retailers; brands need to work hard to refashion retail and introduce an entirely different commercial space, created with the unique characteristics of the city firmly in mind. One thing is for sure – today’s successful retail space has an extreme sense of ingenuity, individualism and theatre; the consumer will reject something purely transactional in favour of an all around lifestyle experience.
In retail, quality, originality and innovation underline a welcome end to the bland ubiquity of the ‘clone town’. In previous reports, Mpdclick has noted the popularity of the ‘boutique’ where quality of service and lifestyle experiences are key for the consumer. Retailers need to learn from the world of hospitality, taking inspiration from the trend for the design hotel and their flamboyant, extravagant and sometimes extreme minimalist interiors. The trend towards the smaller boutique format translates seamlessly to the retail environment; design and innovation need to be employed to create a retail space unique to the character and culture of the location. The Hotel Fox in Copenhagen was an early example of how the hospitality industry has introduced local styling, where each room is an distinctive piece of art representing the individuality of Scandinavian style. The Story Hotel in Stockholm favours antiques and an at-home feel. The New York branch of the Ace Hotel opened in June 09; created by New York-based design firm Roman and Williams, the hotel is said to create a feel of a very stylish friend’s apartment, rather than a hotel room. In addition to this, was the recent London opening of The Rough Luxe Hotel, which is said to be half rough, half luxury representing the ‘rough luxe’ elements of its up and coming but seedy London location. All of these examples reflect the growing consumer demand for cultural experience and local aesthetic, necessary for a radical updating on the tired looking ‘identikit’ approach to the retail experience.
So what can the retailer learn from this? Certainly, even during these difficult times the smaller hotel format has enviable occupation rates compared to the ubiquitous chain. Similarly to the hospitality industry, retail represents lifestyle where the consumer is a guest within the store. The worst thing a brand can do at the moment is create a purely transactional space, instead sell by stealth by offering shoppers a plethora of browsing pleasure amidst an absolute clash of styles, objet d’ art perhaps sold alongside fresh interior inspirations and a selection of interesting music.
Hard times might mean low budgets but they don’t have to curtail creative freedom. Considering the public’s growing appetite for design, art and culture the notion of injecting some individuality into the city retail space is a compelling and inviting one.
H&M have opened a stylised store in Barcelona, which sets a trend for the fashion chain as they move forward in the bid to adapt to the changeable retail environment; the store makes use of a 19th Century building, as the shop windows are replaced by screens at the entrance and shoppers funnel in through the original neo-classical doorway. Aesop, the well know retailer of natural beauty products, are the perfect example of how a chain can approach retail environment with the local environment in mind as their trade mark brown bottles are displayed in an entirely unique way in each location.
As big name brands begin to recognise the need for change, adaptability and inventiveness, Alannah Weston the creative director of London’s Selfridges department store commented to Frame Magazine that “different shops are mixing product categories so you get more cross merchandising… In a recession the worst thing you can do is play it safe.”
Words by Fiona Jenvey, CEO Mudpie
LinkedIn reinvents the marketing model
Previously Published on www.mpdclick.com
LinkedIn integrates the trend for online marketing and social currency for the business user. But is this vanguard of professional networking another opportunity for office time wasting or a valuable passport to future business? With 23 million professional users online and 21,557 search results for ‘apparel professional’ there are plenty of opportunities for stealth marketing dressed as ‘social networking in disguise’.
The compelling aspect of LinkedIn is the user profile and the ability to reach a decision maker; for example, all of the Fortune 500 (America’s top 500 ranking corporations based on gross revenue) are represented on this website, 499 of them at director level or above. This means that not only does LinkedIn provide the opportunity to draw a high status company’s attention to your brand or services, but at the right level.
The website has more than 23 million professional members, spanning over 150 countries worldwide and figures indicate that the site has a further 1.2 million members joining each month. The rise of LinkedIn may mean a re-evaluation of marketing strategy as social networking becomes an imperative way of enhancing the notoriety of your company, brand or personal professional reputation.
This trend for a more communal approach to the business relationship has emerged from popular personal social networking sites and the LinkedIn community of professionals is growing rapidly; in 2008 the growth of LinkedIn far outstripped that of either Facebook or MySpace and the networking site ranked 80th in the top 100 websites in terms of monthly hits, of which it achieves approximately 10 million. This increasing popularity means that LinkedIn is fast becoming one of the most powerful online business tools available. Participation in this indispensable website has become ever more important in the current economic climate as businesspeople become more aware of how valuable professional connections can be. New investment in the website has increased its value to approximately $1 billion. LinkedIn not only allows you to maintain relationships with business contacts that you have met in the past but also allows you to forge new and beneficial relationships with potential partners, and clients. Through the use of ‘open networkers’ (those whose connection database is open to view) you may have access to their first and second degree contacts allowing your company to build essential new relationships.
The site provides an expansive collection of industry focused groups (698 listed for fashion alone) which act to further enhance the intuitive brand’s ability to network with those at the top of their field. LinkedIn is associated with Google, meaning that all profiles are searchable meaning even further self promotion for ambitious individual or social savvy brand.
Words by Fiona Jenvey, CEO Mudpie
View related articles by following these links.
http://www.economist.com/opinion/displaystory.cfm?story_id=13900974
http://www.economist.com/businessfinance/displaystory.cfm?story_id=13914661
Designed in India
Previously Published on www.mpdclick.com
Recent evidence suggests that India is now moving up the value chain; the country is increasingly able to offer a competitive combination of both outsourcing and innovation. They question is, how long will it be before the clothing and textile products we import from India are also designed there? While the concept of India developing full package production may pose a threat to developed creative economies it also presents interesting opportunities for brands and retailers seeking cost effective creative solutions.
Innovation is the new economic paradigm for India. Thanks to government investment in the creative industries, India is well positioned to compete within the global economy. An ambitious National Design Policy aims to produce 5,000-8,000 designers a year from organizations such as the National Institute of Design (NID) with the stated ambition of raising design education in India to international standards- making ‘designed in India’ and ‘made in India’ by-words for both quality and innovation.
India already possesses an impressive array of creative assets; Bollywood, the country’s film industry, is the world’s largest film making centre, producing more than 900 features per year. In addition to this the animation and video gaming industry are predicted to be worth a billion dollars by the end of the decade, and the advertising, graphic design, and product design industries are experiencing extraordinary growth. The Indian fashion industry clearly has ambition; Manish Arora is the acclaimed Indian designer from New Delhi, whose sense of exuberant excess has won him accounts in such retail Mecca’s as Harrods in London and Saks in Dubai. The government sponsored Fashion Design Council of India has a mandate to promote both fashion education and the design industry, providing a sustainable foundation for the creatives of the future.
While China excels at process, India excels at innovation. Although China produces some 10,000 design graduates annually and has plans for its own creative sector to grow by 20% a year, innovation is still an issue for their creative economy. Piracy poses a major problem, and for the country’s brands provides a powerful disincentive to invest in design. In India, however, the National Design Policy encourages investment in innovation and attempts to uphold intellectual property rights (IPR). In April 2008 India beat rival China in the race to design and produce the world’s first low cost car; The Tata Nano, ‘The People’s Car’, is an entirely home grown design.
Despite their dedication to an innovative creative industry, India must still address several challenges; like China the country continues to face enormous problems with counterfeiting and IPR issues, but an increase in patenting is beginning to safe guard design. Education is also a problem; driving the economy are the Western educated elite while a mere 2.2% of the country’s youth complete secondary education today. India’s government are continuing to battle against the issues within the country, for example the current challenge that the infrastructure poses is being met with the introduction of the new 3,633 mile national highway called the Golden Quadrilateral (GQ) linking the countries major population centres of Delhi, Mumbai, Chennai and Kolkata, which the government hopes will ease logistics and push the country’s economy into overdrive.
Words by Fiona Jenvey, CEO Mudpie Ltd
Designing demand, fashion and creative futures
Brands, businesses and Corporations need to embrace a new breed of designer; design should no longer be a styling afterthought but should in fact become an integral part of corporate strategy. Todays fashion business needs a creative vision and leaders able to mix innovation with economics. Welcome to designing demand, where the creative strategist is able to predict the future by simply inventing it.
The creative economy within industrialized nations is predicted to grow by 4% on average over the next five years, twice the rate of all other industries and by 2013 could employ more people than the financial sector. With this in mind, why is design within the fashion sector so often seen as an expense rather than an investment? Designing demand means that creative strategy starts in the boardroom with design prioritized throughout the supply chain. Retailers keen to cut costs on design have been sleepwalking into a position of competitive disadvantage as a result of underinvestment. For this reason nearly 45% of companies within developed economies are failing to meet their business potential. In the UK The Design Council supports corporate strategy with its design mentoring program ‘Designing Demand’ and reports every additional £1 spent on design has returned an additional £50 increase in turnover above expected levels, ensuring an upwards sales curve for design led brands. In the retail business the CEO sets vision and strategy, but what if the strategy were in the hands of the design team? After all, the best way to predict the future is to invent it. This is exactly what Apple have done with the appointment of Jonathan Ive as Senior Vice President of industrial design. Ive is one of Apple’s highest paid members of staff and is truly at the forefront of Apple’s corporate strategy. Similarly Lego (the world’s sixth largest toy maker, who announced pre-tax profits of £143m in 2007) have innovation and design high on the priority list as their design process is governed by ‘Design for Business’, working to align their corporate goals with design strategy.
While industrial design values its creative talent, it is apparent that the fashion business allows its designers to languish at the lower end of the pay scale. Is this really the way forward for the creative economy” Retail management is full of well paid number crunchers. However, creativity can frame the future of the fashion if retailers and brands alike recognize design to be the creative equivalent of the business consultant and invest accordingly. In a market where the top talent at fashion law and accountancy firms can earn up to $1000 per hour, the design consultant supplying creative fashion services to the same company could be earning as little as $300 per day. This will change; business schools have long churned out number crunching MBAs, who contribute nothing to products on the shop floor. However, notions of leadership are changing; universities are increasingly offering executive MBAs in fashion, management and design enabling creatives to broaden their career beyond the studio into much needed strategic creative management roles. MBA success stories could soon shatter the glass ceiling for the fashion industry’s design talent by enabling design to create business revenue through an innovative approach to strategic design. According to Alan G Lafley, CEO of Procter and Gamble “design, not price, will be the ultimate competitive advantage in the 21st Century”, a point echoed by Alan C Kay of Apple “the best way to predict the future is to invent it”.
Fiona Jenvey CEO Mudpie Ltd.
Demo Chic
It appears that 2009 will be a year of making a difference. 20 years after the 1989 Tiananmen square massacre, the fall of the Berlin Wall and the collapse of Communism, youth this time finds itself mobilizing against capitalism, climate change and war
In an age where Vogue treated the G20 protest like a catwalk, mpdclick reports on how a good cause has suddenly become all the rage. Look at me DIY slogan hoodies, agitpop graphics and flea market finds are in and designer labels and expensive shoes etc. are out. The look is ‘stylish hippy’ endorsed by such celebrities and Peaches Geldof and Jemima Khan, the iconic Katherine Hamnett choose life t-shirt has also made a comeback.
So are this serious protestors, a cultural phenomenon or a mere social gathering and what is the motivation that makes being political both ‘sexy and cool?’. According to a part time protestor it is down to the rise of the blog and social networking, watching shops close every day and the fault lines in both politics and capitalism. Branding expert Neil Borman thinks that for Gen Y a caring cause is now 100% a badge of honour, Protest chic is simply another brand of lifestyle full of pulling parties and the wildly romantic notion that people are uniting to save the world together.
How long will it last?, the scene will certainly swell this summer as we forecast back in 2007, and is set to continue as a quieter revolution over the next few years as we adopt a rather more sober approach to consumption.
Source: The observer magazine and the Sunday Times
Image location- http://streetpeeper.com/image_thumb/image.php?width=470&image=/sites/default/files/uploads/2007/05/p1000626.JPG
Latin America’s emergence: a focus on design and innovation
Previously Published on www.mpdclick.com
Mpdclick looks at the imperative role that countries such as Mexico and Brazil could play in the supply chain now that manufacturing and productivity is losing out to design and innovation. Brazil’s productivity and growth outstrips the USA and is rivalling India and China for outsourcing. Latin America’s emergence is built on quality, creativity and sustainability, presenting brands and retailers not with the cheapest goods, but with cost effective design solutions instead.
Design budgets are slashed at a time when innovation and creativity represent the most important competitive advantage within the supply chain (a recent United Nations report indicated that creativity represents 10% of Global GDP). As the global apparel focus alters to design and innovation, countries such as China, dubbed ‘the workshop of the world’, are finding that their un-original, imitation based culture and lack of investment in R+D are presenting some interesting challenges to its economy as manufacturing and productivity is losing out.
Latin America’s new approach to outsourcing offers something very different to China and India, as innovative design becomes the new focus for their apparel industry. Will the USA’s next import see design and innovation rather than basic manufacturing within the apparel industry, and does the answer lie just across the border from the USA? Mexico presents a compelling alternative as a ‘near sourcing’ solution for the USA, supplying readymade garments, but could a growing investment in their creative economy lead to greater enhancements in the design and sample process? With governments in Latin America, in countries such as Mexico and Brazil, increasingly investing in their creative economies we are beginning to steadily see a higher calibre of design graduates emerge.
Although Mexico expects flat growth this year in the apparel industry, rising domestic sales have offset plunging exports to the USA, which have fallen by 14.5%. However, longer term, a shift in sourcing back to North America is good news for USA’s textile companies, as more than 80% of finished Mexican textile products are assembled with fabric made within the domestic USA economy.
In Southern Europe, Latin America has an ace card to play- language and culture. Spain’s Cortefiel group has identified Mexico as an ideal backdrop for expansion. Cortefiel recognizes the opportunity to join up the design and manufacturing process within Mexico while also expanding its retail outlets in the region. Brazil and Argentina also represent major opportunities for the brand.
In Brazil the clothing industry made $34.6bn last year being responsible for 3.5% of Brazil’s GDP, and making it the world’s sixth largest textile producer. Brazilian style is considered artisan and accessible, the country’s colourful export the Havaiana flip-flop is a popular inspiration. Brazil’s best known designer and lucrative export, Alexandre Herchcovitch (pictured), is inspired by Brazil’s mixed population, vast array of cultural artistic freedom and the creativity that can be found on every corner. Furthermore Brazil’s growth far outstrips the USA and the economy is expected to grow by 4.5% this year regardless of the US slowdown.
Words by Fiona Jenvey, CEO Mudpie
How an anti-consumer revolution could be good news for the creative brand
Previously published on www.mpdclick.com
As we welcome the start of 2009 Mpdclick’s creative team embark on the search for inspiration for the future trends of spring/summer 2011. Mpdclick takes a look at the anti-consumerist attitudes of 1969 and the years of unrest that followed, asking ourselves what effects the 2009 recession will have on the public. Retailers and brands worldwide should beware; 2009 and beyond may mark the start of an anti-consumer revolution reflecting that of 1969. Expect to see a more revolutionist customer who will leave the brand and retailer in no doubt of what they think about their products, customer service and company values. This is a time when individuality and innovation is essential to the future of your brand.
As the end of the first decade of the 21st century approaches we find a slowing economy and a world heading for recession, but what does this mean for the consumer? In go slow 2009 we see the emergence of a more anti-consumer revolution reminiscent of the 1969 movement which resulted from the student unrest of 1968. Unstable World economies are leading to a growing distrust of governments, businesses and financial institutions; this could be bad news for the global brands that until now have been the successful face of today’s business. In these uncertain times many brands will struggle with their product and sales message when aimed at a consumer who increasingly chooses to buy an individual product which represents collective values as opposed to an item with brand status.
Incompetent governments, large corporations and costly foreign policy have all been blamed for current financial hardships, unrealized expectations and the hike in unemployment (current figures indicate that 14% of the UKs 16-25 year olds are unemployed). At a time where we are experiencing a dramatic change in consumer values, Mpdclick asks how today’s Generations X and Y will acclimatize to the current climate. Both Generation X (31-42) and Generation Y (19-30) are now finding themselves reducing their material expectations and adjusting to the need to change their ways of living. Generation Y has up until now lived in an era of continued apparent prosperity; however idealism within this generation brings greater belief in community value and ethics than any generation before them. Generation Y is well placed for adaptability and could easily move from conspicuous consumption to anti-consumer almost overnight. In textiles and apparel we find that young females are already spreading the idea of making your own clothes via the blogosphere (2007-2008 general goods retailer Argos reported a 50% rise in the sales of domestic sewing machines). The networking site has become an increasingly powerful tool as growing numbers of Generation Ys spread their message. As the opportunity to expand the anti-consumerist belief is made ever more effortless through the use of networking sites, this could spell bad news for today’s retailer.
A change in consumer attitude could be good news for the business that is flexible enough to adapt to these new ideals and frames of mind; the resourceful retailer will capitalise on this shift in social views and gain potential market share from those brands who are unable to compete. Today’s anti-consumerist customer is looking for more that the 70% mid season sales to draw them back into the store. What is required is an approach much more imaginative; the retailer needs to develop an intuitive relationship with the customer.
2009 and beyond should bring about a major investment in design and customer service as the retailer bids to re-engage the consumer. It is essential that brands take into account the need for the development of more unique, quality merchandise as opposed to a continuation in the production of high volume low value garments. Good quality trans-seasonal fashion basics in a wide range of colours to suit the existing wardrobe should no longer be an area considered unworthy of design. Thought and innovation should flow through the product development process. Innovative management solutions, flexible supply and creative well resourced designers are key to the future of your brand. Retailers maintaining the big brand image may find that their problems continue well into the next decade as a struggling Generation Y shun large brands and instead choose boutiques, items designed by individuals and collectives who share views similar to their own. As quality supersedes the search for the cheapest option, design returns to its core values by meeting the need for long lasting valued products. Mpdclick suggests that for the future of your brand it is essential to take a more considered and innovative approach to the design and creation of your products.
Words by Fiona Jenvey, CEO Mudpie
Pre-cycling: the evolution of sustainability
Previously published on www.mpdclick.com
Retailers, brands and product developers should take note of a new consumer trend which is currently evolving. Pre-cycling is much more than simple “greenwashing”, or recycling. Consumers prefer instead, to pre-think recycling, avoiding products that create unnecessary waste and excess. The current economic climate has forced a change, slowing down the hard-up mainstream consumer who is questioning the need for unnecessary purchases; instead they want considered design made with re-purposed materials, where the environmental saving also benefits the consumer’s personal finances.
Financial circumstances have forced a reluctant consumer to re-evaluate their purchasing habits, perhaps creating the motivation for this new eco-consciousness. At a time when brand loyalties are plummeting, companies need to re-define the term ‘value’ by looking at sustainable and eco-conscious solutions, saving the customer money while remaining environmentally sound. The consumer finds themselves resenting brands with an over packaged, merchandised or advertised offer because they feel that they are ultimately being asked to pay extra just to buy into these brands. With this in mind, companies need to re-evaluate the way their brand, product or service is directed to the consumer, rethinking their strategies in order to survive the current retail challenges.
With the consumer increasingly aware of value and unnecessary waste what can be done to meet this fundamental shift in consumer values? Fair trade and organic products are both initiatives which mean the cash strapped consumer has to pay a bit extra to help someone else. On the other hand, utilizing re-purposed, recycled and sustainable materials could be initiatives which benefit the struggling consumer by passing on savings directly to them.
Creating clothing out of re-purposed fibres or plastic bottles is just one solution battling the excess of today; waste is everywhere from TV advertising campaigns that invade our living space to extravagant window displays created out of glossy plastics that are quickly disposed of. Using the ‘pre-cycling’ mindset, recycled paperboard, re-purposed materials and re-cycled inks can be applied to alternative revenues in addition to packaging. Retailers may benefit from buying into the pre-cycling movement by utilizing re-claimed material and products to make use of both within the store environment and advertising campaigns. Retailers need to come back into town, avoiding the need for unnecessary and wasteful use of fuel and billboard advertising.
We all know that consumers are starting to adopt the canvas shopping bag over the disposable plastic version, but this trend is now expanding. According to The Intelligence Group, 45% of trendsetters and 14% of mainstream consumers have “cut down on bottled water purchases,” instead choosing to re-fill the containers, and 49% and 16% respectively have “cut down on use of plastic bags” during the same period. With this in mind it appears that social responsibility, transparency and environmental values are resonating with consumers more. The public are increasingly attuned to supporting the brands that uphold an honestly stated specific set of goals, without “greenwashing”. These brands will stand to profit, especially if the initiative benefits the Brand, the environment and the consumer equally. The goal is to offer greater perceived value to the consumers than competitors do.
Words by Fiona Jenvey, CEO Mudpie
leave a comment