Gerd's presentation at the Luxury Interactive event in London, March 17, 2009. Topics: the switch from closed / controlled to open, central to decentral, luxury redefined.... More on my blog http://tinyurl.com/dle5rq
5. The global economic fabric has changed
Many trusted old business
models seem to have
suddenly stopped working
6. Things have dramatically changed
We are entering a creative, social and collaborative era
Many of us are more concerned with global issues such
as Energy & Environment
Many of us are increasingly more concerned with
Self-Fulfillment
10. Decentralization vs Destination
Centralized >>> Decentralized
Microsoft / Windows Google
MTV Youtube
Tower Records / HMV Spotify / Last.fm
Traditional Telecoms Skype
Cable TV Internet TV / IPTV
11. Media Consumption Trends
Music Video Games Books Mags & Print
Percentage of Revenues from Digital Services *my own estimates
100%
75%
50%
25%
0%
2008 2009 2010 2012 2015
17. 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 quot;necessity goodquot;, 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.
19. A trend? Luxury for myself
Plain and demonstrative extravagance
may no longer be the main goal
Real Privacy becomes a luxury
Personal transformation is becoming
more important than extroverted
presentation
20. 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?
28. 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
33. 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?
35. 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
40. 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, and
Increasingly transparent... and
Soon, 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...?
46. Information > Conversation
Interruption > Engagement
Annoyance > Entertainment
This is an Ad > This is Content
“Great products that have marketing
embedded in them” (J. Hicks, CPB)
48. 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
49. The Future is not about Technology...
Emerging Cultural Practices
50. The $$ always follow the Habit-Shifts
Track and really understand the
key Habit-Shifts and you’ll find
the new revenue opportunities