Tag Archives: digital

The New Rules of Retail Engagement: How to Reach Conscious Consumers

By Brooke Blashill (Class of 2015)
Senior Vice President, Ogilvy Public Relations Worldwide, and Director of The Boutique @ Ogilvy

Brooke Image
Brooke Blashill, GFM Class of 2015.

For brands to be successful in the future, they need to align value with “values.” That was the resounding sentiment at last month’s major trend conferences: Copenhagen Fashion Summit, the preeminent global forum for sustainable fashion, and WGSN Futures, the London event predicting retail trends in 2030.

While there was talk of artificial intelligence, multi-generational workforces and the impact of the sharing economy, it was a new shift in the sustainability dialogue that dominated conference discussions. Once seen as a supply chain issue, the topic of ethics and responsibility spanned product design, retail strategies and buying approaches.

Spurred by the next generation of high-powered, conscious consumers, retailers are addressing the business functions where quick and impactful changes can be made – such as marketing – while other parts of the business play catch-up.

nike-flyknit-eco running-shoe
Nike Flyknit Running Shoe

Nike, for instance, said that sustainability is an innovation challenge that begins with its design team – tasking designers to make a product with the least environmental impact, setting the goal to cut their carbon footprint by half while doubling production.

Other brands, such as Selfridges and H&M, are changing the way they communicate with their customers about environmental issues by putting sustainability messages at the forefront of dedicated campaigns, in-store experiences and digital content. In years past, these types of stories would only appear around Earth Day or timed to the launch of special collections.

According to Nielsen, 2.5 billion “aspirational” consumers are becoming increasingly interested in, and making decisions based on, the environmental and social impacts of their purchases. This move isn’t about altruism – it’s driven by the consumer desire to make choices that represent who they are and what they believe in.

For retailers, that means authentically realigning a brand with the values and beliefs of their customers by being transparent and helping shoppers make smarter and more informed purchase decisions. For some brands, this could be as simple as communicating existing eco-efforts that have been taking place behind the scenes, or collaborating with credible partners to bring broader awareness to these issues and help redefine the industry conversation.

 “Good design is sustainable design.” Imran Amed, Founder and CEO of The Business of Fashion, made this statement in Copenhagen when debating media’s role in evolving the sustainable fashion dialogue. Media and marketers have a responsibility to unite this conversation using their creativity to “make sustainability sexy,” says Vanessa Friedman of The New York Times.  

So how does one use these creative powers of persuasion for good? I had the opportunity to talk with a variety of industry leaders during these two trend conferences, and here are some examples of how brands are applying these important principles across areas such as retail strategy, advertising and digital:

 Retail Strategy – Selfridges has demonstrated that eco and luxury can live in harmony through its award-winning campaign, “Project Ocean,” creatively integrating messages about ocean protection into the store experience from the window displays to the food hall. The department store has also hired its first Director of Sustainability and taken a new approach to buying, ensuring brands meet standards on ethical trade, while championing new brands with a sustainable focus through its “Bright Young Things” project.

selfridges-project-ocean-oxford-street-canopy-3-credit-andrew-meredith500
Selfridges’ award-winning campaign, Project Ocean.

Advertising – The trend in repair wear, or mending an item so it can last longer, is now spanning luxury retailers to mass market brands. WGSN says this concept, which they call “Brand Immortality,” is what big industry players, including Barbour and Brooks Brothers, have been doing for years in the form of added-value services. Now, the difference is that brands are making this a central part of external marketing campaigns and gaining customer loyalty as a result. For example, Patagonia took out an ad in the New York Times during Black Friday with the headline, “Don’t Buy This Jacket,” following up with a “Better than New” cross-country road trip to fix customers’ old coats. Nudie Jeans, the indie denim label, has opened 20 stores globally that include a repair shop offering free mending and alterations for all their jeans.

Nudie Jeans Repair Shop

Digital – Transparency has become the new buzz word, and Zady, the online eco-retailer, sets the example for the industry with its business model. Named by Fast Company as one of the most innovative retail companies in the world, Zady’s editorial approach to e-commerce and social media allows customers to see what country their clothes were made in and who makes them. Costs transparency is also gaining popularity among consumers, and is likely to become a new industry standard. Brands including Everlane and The Reformation have dedicated platforms on their e-commerce sites to list production and sourcing costs. Similarly, new luxury menswear company Boga publishes details about the materials and textile houses it uses under The Know section of its website. 

everlane
A webpage on Everlane’s e-commerce site, lists production costs.

The common thread between these companies is that they made the concept of a socially responsible purchase decision part of a desirable lifestyle through consistent brand stories that both inspire and educate. While some of these initiatives are not completely new, retail experts at both conferences predicted these approaches will be the business standard in the next three to five years. As the trend in mindfulness and conscious consumption becomes more mainstream, the most successful brands will be those that lead by example and authentically reflect the values of their customers.

—–

Brooke Blashill is a Senior Vice President at Ogilvy, the award-winning global marketing agency, and a recipient of PR Week’s esteemed 40 under 40 award. Blashill founded and leads The Boutique, an international retail division dedicated to helping clients develop creative and effective communications strategies with a focus on campaign development, product launches, brand experiences, designer collaborations and influencer engagement. Core areas of expertise include luxury, apparel, accessories and home. http://www.ogilvy.com/. Twitter @brookeblashill  

Brooke headshot
Brooke Blashill, GFM Class of 2015.

 


Hong Kong Seminar 2015: The Connected Chinese Consumer

class
Global Fashion Management Students at a lecture on campus at the Hong Kong Polytechnic University during a 10-day intensive seminar.

Within all aspects of Global Fashion Management education—from lecture event to panel discussion to informal conversation—the focus often turns to the demand and purchasing power of the Chinese consumer. According to the Sourcing Journal, China-based consumers’ online spending for American brands in 2015, is seven times higher than in 2014. But while Chinese consumers are aware of American brands, they’re often not available in China. Jingming Li, U.S. President of Alipay, China’s third-party payment platform, writes that growth will be exponential as logistics and localized payment options improve for cross-border purchasing.

Our intensive seminar in Hong Kong provides GFM students the perfect venue to hear the very latest on e-commerce, digital commerce, and social networks from those who know it best—local experts, colleagues, and consumers—and to gain insight on how the future might unfold.

Anson copy
Anson Bailey, Principal, Business Development for KPMG in Hong Kong during a lecture to GFM students at Hong Kong Polytechnic University.

Anson Bailey, Principal, Business Development for KPMG in Hong Kong, has spent a good portion of his career in China, and has the consumer-technology expertise to deliver a fresh perspective on the contemporary Chinese consumer. Anson says, “Asia will be the story going forward,” and he backs up this claim with a few trends:

  • Peer to peer, mobile and cognitive technologies will continue to strengthen, especially as new digital consumers in third and fourth tier cities in Mainland China turn to e-commerce.
  • Among consumers in first and second tier cities, 2008 marked a turning point when buying incentive shifted from status seeking to self-reward and purchasing from a more individualist incentive. Heightened by an educated knowledge of country-of-origin when buying luxury, Chinese consumers have less concern for price, and focus more on accessibility.
  • Among Chinese consumers surveyed by KPMG, 45% buy online. Among the 54% that make up the middle to upper class, this group has the greatest influence on consumer purchases.

Anson went on to describe the evolving innovation of Chinese tech companies in creating disruptive technologies, consumer convergence, more adaptable mobile devices (such as OnePlus), and aggressive accelerator programs such as AIA. Regardless of how much we may read about the connected Chinese consumer, there’s nothing quite like being on site, and among the experts, to get a first-hand perspective.

Oneplus
OnePlus,  a Chinese smartphone company based in Shenzhen with a rapidly growing customer base.
AIA Accelrator
Healthcare startup accelerator AIA Demo Day 2015