Sweet Somethings February 4, 2009

WHAT’S HAPPENING:
Tempting sugary treats aren’t just for dessert anymore as representations of mouthwatering confectionery are appearing on accessories, plush, graphics, print and more. Popular accessory areas include hair ties, necklaces, rings, brooches, bags and shoes. Running alongside the accessory craze is a strong interest in cake-based print and pattern most often seen on clothing, bags and stationery. Confectionery customization of electronic goods such as mobile phones is also hugely popular as items such as USB keys are made to look like the tempting treats.

Tote bag by Whimsy Press

WHAT THIS MEANS TO BUSINESS:
This may look like a short-term fad, but a closer look may reveal a more long term trend. For one thing, sweet motifs are appealing to a broad range of consumers. Plus, in tough times, people will always look for the little things that make them happy – and sweet treats certainly fit the bill. There may also be an element of backlash or rebellion to the increasing attention being paid to the obesity of America. The more people are told they can’t have something, the more some people will celebrate it. So it may be time to make room on your shelves for these sweet sellers before you miss out on your piece of the pie.

Third Screen Showing a Preview of Potential January 28, 2009

WHAT’S HAPPENING:

Mobile advertising promises to deepen customer engagement. Mobile advertising has grown rapidly in markets like Japan, but outside Asia, activity is still dominated by “text and response” campaigns. So for now, the mobile phone remains the third screen, behind television and the computer. Still, the potential is impossible to ignore.

• About a billion mobile phones will be sold globally this year, and there are more cell phones than PCs.

• Facebook is now the 10th largest “country” in the world with 132 million people. MySpace comes in at number 12.

• The third screen is frequently used “to kill time”, for entertainment or news updates, which makes the medium highly effective.

WHAT THIS MEANS TO BUSINESS:

Mobile advertising clearly appears to be the next big thing, but for now the emphasis is still on “next” – not “big”. The vision being laid out for mobile advertising has yet to be realized. The industry is still a long way from delivering a personalized, contextualized, real-time location-based mobile advertising platform.

However, with so many people interacting with their mobile devices so often, there’s certainly plenty of incentive to begin incorporating this platform into today’s media mix – as long as you temper expectations. So when cooking up your next media plan, think of mobile advertising as a spice, rather than a main ingredient.

Designers get powerful endorsement January 23, 2009

WHAT’S HAPPENING:
Isabel Toledo and Jason Wu’s fashion businesses were given an enormous boost when new First Lady Michelle Obama, the second-most watched person on the inaugural podium, chose them for the two key occasions on her husband’s big day.
As she watched husband Barack Obama being sworn in, she wore a lemongrass lace shift dress and edge-to-edge coat by Cuban-American designer Isabel Toledo. Later in the day, (at one of the rumored 10 inauguration balls the new president attended), Michelle Obama wore a chiffon rosette-appliquéd and Swarovski-beaded white one-shoulder ball gown by 26-year-old Taiwanese-American Jason Wu, a designer little known outside fashion circles until now.

WHAT THIS MEANS TO BUSINESS:
As the youngest First Lady since Jackie Kennedy, Mrs. Obama’s influence on fashions can’t be overlooked. Obviously, these two designers have become instantly popular and demand for their lines has skyrocketed. Expect them to garner much more attention at the next Fashion Week and upcoming runway events. On a broader scale, this could be an early indication that our First Lady isn’t afraid to break with traditional, established names to seek out lesser known designers who appeal to her personal sense of style. Those in the fashion industry will have to stay on their toes to ensure they’re not caught off guard by her next surprising choice.

Heart strings vs. Purse strings January 21, 2009

WHAT’S HAPPENING:
With unemployment rising to levels not seen in 16 years, consumers have pulled back sharply on spending. So in attempts to entice cash-stricken consumers this Valentine’s Day, beauty brands are rolling out a host of specially created gift sets and limited edition products. Romance is taking a back seat as women are being targeted with a bevy of products that promise to seduce and empower. This translates to cosmetics in vampish scarlet tones with tongue-in-cheek titles. Limited edition packaging, with a price tag to match, also becomes a key focus. This transcends the mid- to uber-luxe markets, from Tommy Hilfiger’s pearl-embellished bottles to Caron Paris’ solid gold bracelet.

Clinique's Heart Lip Gloss Set

Rose Candle by Diptyque

WHAT THIS MEANS TO BUSINESS:
As consumers cut back on their spending and strive to form more disciplined habits, the “urge to splurge” occasionally becomes stronger. Holidays such as Valentine’s Day provide the perfect excuse for consumers to treat themselves to something special. Special gift sets and limited editions appeal to this need and provide an emotional reward, thus making it easier for consumers to justify their purchase without feeling buyer’s remorse.

Holiday Shoppers Storm the Internet January 7, 2009

According to a recent Forbes article written by Mary Jane Irwin, Purchases made online tallied $24B this holiday season, with sports and fitness spending up 31%.

Online spending this holiday season, from Nov. 1 through Dec. 19, has decreased 1.0%, to $24.03 billion, through Dec. 19, compared with the corresponding days in 2007, according to Internet stat tracker comScore. Dollars spent during the month of December increased slightly to $12.8 billion, from $12.7 billion last year.

On average, consumers have spent $643.0 million each day between Thanksgiving and Dec. 19, an increase of 5.0% compared with 2007. Dec. 9 remains the highest-trafficked day with $887.0 million spent online.

“With five fewer days of holiday shopping between Thanksgiving and Christmas this year, there is increasing pressure on consumers to make their holiday purchases in time for Christmas,” said comScore chairman Gian Fulgoni in a statement. “The combination of the compressed holiday schedule and the challenging economic situation faced by many consumers means that retailers have their work cut out for them this season.”

Gifts this holiday season are trending toward items that yield the most entertainment per dollar or are in some way reusable — in line with past consumer spending trends during tough times. People spend more time at home and less time out on the town, and their purchasing habits reflect that.

Through the first half of this month, spending on the sports and fitness category increased some 31.0%. Book and magazine sales were up 18%. Sales of videogames and related paraphernalia increased 17.0%.

Conversely, says comScore, sales of consumer electronics are slowing: Music, movie and video sales are down 24.0%. Spending on office supplies — no doubt a result of corporate belt tightening — decreased 19.0%, and spending on jewelry and watches is off by 17.0%.

Meals that new moms can almost call their own by Grace Jidoun January 6, 2009

WHAT’S HAPPENING

• Daily menus are tailored to the specific needs of individuals, whether the goal is weight gain, weight loss or energy for nursing.
• Three meals plus snacks (to satisfy cravings) are prepared daily and delivered to the client’s door. The price is $45 to $55 per delivery.

WHAT THIS MEANS TO BUSINESS

• Nutritional needs change after having a baby, and many new moms struggle to find their footing. Women are clamoring for services that help them strike that balance between weight loss and eating right at such a critical time.
• New moms are more willing than ever to spend extra dough on convenient creature comforts.

RESOURCES Mothers and Menus was founded by Karen Gurwitz, a mom herself, in 2003.
The Well-Rounded Pregnancy Cookbook by Karen Gurwitz, Clarkson Potter 2007

Nomadic pop-up shop brings its goods to different neighborhoods January 5, 2009

WHAT’S HAPPENING

Where do all the pop-up retailers go when their rental leases are up? Luxe fashion label Iisli packs up its nomadic store and moves it to another location (WWD.com 9.22.08). Iisli’s 1,000 sq. ft. temporary store, dubbed ”the cube,” can be retrofitted into an empty retail space. It carries its own lighting, dressing rooms and shelving. It’s address is 25 Bond Street in lower Manhattan until February 1, 2008. The owners would like to see it travel to TriBeCa, Miami, Las Vegas, Tokyo or Berlin. WHAT THIS MEANS TO BUSINESS A nomadic pop-up shop could give consumers what they’re craving — access to cool goods and a better variety of brand offerings. Brands and retailers might benefit by reusing their temp store materials and testing new neighborhoods.

Brown paper packaging- tied up in string? January 2, 2009

WHAT’S HAPPENING

• The stealthy shoppers can get their threads, bags, heels and jewels delivered in an unbranded recycled brown paper bag — a sharp aesthetic turn from the retailer’s iconic sleek black boxes.
• Even the direct marketing email promoting the new packaging is a throwback to more demure times; a black and white pic shows two 1950s gals whispering, and the copy assures customers that the new bag will hide buys from inquisitive eyes.

WHAT THIS MEANS TO BUSINESS

• The financial shake-down has made elite shoppers more empathetic to the situation of the less fiscally fortunate, but they’re not entirely dressing down for the occasion. And those who can afford luxe labels are more sensitive to how others’ perceive their purchases.
• High-end retailers may want to explore providing discreet purchasing and packaging options so their customer can keep splurges to herself.

What’s in YOUR purse??? January 1, 2009

According to In Your Purse, a book looking at the woman’s purse, 98% of women’s purses contained reward cards and memberships, 91% contained skin or hair beauty aids, 63% contained food, gum, or candy, 61% contained coupons, 31% contained nail care, 28% contained feminine hygiene products, 27% contained tissues, 22% contained oral care products and 14% contained weapons.

In Your Purse by Kelley Styring

Beg Borrow or Steal December 31, 2008

WHAT’S HAPPENING

• When the going gets tough, the tough dicker for a better price. Consumers are beginning to embrace a range of unusual buying behaviors that will help them stretch a dollar further. Haggling, for example, is becoming fashionable again. Max Edison has become a minor media star — his 2001 book How to Haggle is on back order at Amazon.
• Why own when sharing or renting will do? Even in boom times, we noted the rise of fractional ownership, especially of prestige luxury items. Now that strategy is being applied to commuter cars, condos and even community department stores.
• We’ve mentioned that the mushy core of this economic swamp is the housing bubble. Through services like YouWalkAway.com, consumers can do just that legally and in a way that controls the damage done to their credit (NYTimes.com 2.29.08). They can approach home ownership less like marriage and more like dating. And why wouldn’t they? The annual average cost of renting is now lower than owning: $15,721 compared to $17,707 (Washington Post 11.25.07).
• Even before the economic downturn, “transparent recycling” was coming into fashion. While most Americans are not going to become freegans, digging through restaurant compost for their next meal, they are going to think twice about throwing out that old sofa.
• Another area where consumers are trading down in a big way: personal transportation. While car sales languish coast-to-coast, bicycle sales are actually up nearly 10%, and Shimano — the world’s largest bike parts manufacturer — set a new sales record in 2007 (BicycleRetailer.com 2.25.08).
• Five finger discount? A number of national chains report that shoplifting and employee theft are up significantly — as much as 11% in some areas (HometownAnnapolis.com 3.24.08). Not every consumer will throw her morals out the window with every dip in the Dow Jones. But thieves are finding more willing markets for hot, cheap goods.
• A penny saved is a penny earned. Yes, Americans seem to be dabbling in that most extreme and alien form of economic behavior: saving the old-fashioned way. Sixty percent of Boomers say they are spending less in the current economy (FOXBusiness.com 2.12.08).

WHAT THIS MEANS TO BUSINESS

• In tough economic times, smart marketers want to know what consumers are buying. But it pays to look at how consumers are buying.
• Don’t expect a sudden full-stop in discretionary spending. Do expect a certain amount of trading down, and higher levels of skepticism about what “luxury” and “prestige” really mean as value propositions.
• We’ve tracked the emergence of consumer interest in “überobscure” goods and services. That will amp up in coming months, especially where obscurity equals savings. Treasure hunting at pawnshops and garage sales could be almost as popular as the Olympics in Summer 2008.
• We’re talking about a fundamental shift into active, intentional, highly targeted consumerism. Consumers know the economy’s health rests with them. They know companies are hurting for business. They know their dollar can go further when they flex their muscles of free choice.
• Watch as consumers take a somewhat aloof approach in their buying behavior. You can’t haggle if you’re too enthralled with any particular item. Even “gotta have its” will be subject to price comparisons and value assessments.