Wanting another generation

The popularity of Instagram, the photo sharing application that adds 'vintage' filters to each photo, is to me another indication of that today's connected generation also has a nostalgic want for a simpler life.

I won't theorise too deeply about this, but I do think that with world markets trembling, youth unemployment consistently increasing and the unfulfilled promises of university degrees there is a wanting for our memories of these times to be more rosy than they actually are.

Using applications like Instagram to remember today's ambivalence with sunbursts, overexposures and hazy blurs, this unfulfilled generation is in effect adding the layer of promise of the post-war 40/50s where these giant leaps in instant photographs were first seen.

The irony that it has taken technology developed in this generation to take today's memories back into a more promising generation has not been lost.

Here's to Myer's online strategy - I hope it works.

Finally, some positive news out of Myer!!!

As an ex-Myer stock boy it has a small place in my heart and I want to see it succeed, and with the news today that it is pumping $9 million into a re-vamped eCommerce site I can now smile.

Presumably there will be tight integration with their MyerOne program which accounts for two-thirds of sales. It'd be great to buy online using my points and not have to carry around plastic gift cards.

Now, I must sound out a word of warning though. While they say that they will increase SKU availability on the site to 250,000 by November, I hope that these will be meaningful and new SKUs - not just the same old thing.

Myer needs to remember that an online store is not just like building another department store - an online store should be a global hub of products. A department store competes with its close physical competitors, an online store competes with its global competitors.

Myer, if you want your online store to take my hard earned, you'll need to offer me what I want - and what I want isn't currently one of your 250,000 SKUs.

For your book department - have a look at Book Depository because that's where the books I buy are. For clothing, check out Asos or Urban Outfitters. And for electronics, I'm afraid to say you're competing with a zillion online retailers that compete on rock-bottom price.

Unfortunately with the high Australian dollar it's probably not an ideal time to start a domestic online store. Hell, even with $40 shipping, overseas purchases are usually cheaper than domestic department stores. But you have to do it.

Just remember - you're competing with the world. eCommerce means speed to market - if it's available in the US/Europe then you need it to be on your store too. eCommerce means variety - brands/sizes/colours.

Basically what I'm saying if you want to be an online department store in the modern day then you have picked a shit of a fight with a retail market that is fragmenting at light-speed. You want to be everything to everyone? I wish you the best.

In a down-turn focus on the optimistic of us

While there is doom and gloom on the economic horizon with debt crises in the USA and job losses in Australia, one thing I've heard talked about from a marketing viewpoint is that in times like this you should focus on the optimistic people in the economy.

The people that feel safe in their job and positive about the future will continue to spend. This is reflected in the chart above from Gallup. It shows that in the USA those earning above $90k per annum have actually increased their year-on-year spending to July 2011.

Similarly in Australia look at your research and find your optimistic customers and focus your efforts on them. You will be able to put some money towards stemming losses from pessimistic customers (possibly through discounting) but focus the majority of your effort on optimistic customers, possibly by direct marketing to high-value customers.

Designed in Australia, Made in China, From Australian Fabric

This is what it says on the tag of Bonds underwear. And I'm still trying to figure out what Pacific Brands, the owner of Bonds, wants us to feel when we read this.

As far as I'm aware the only thing a manufacturer is required to state is the country of manufacture. So it would be that Pacific Brands, has made a conscious decision to tell the customer it's designed in Australia and uses Australian fabric.

To me, a cynical marketer, it says that, "we (Bonds) like to design our garments in Australia and Australian fabric is good quality so we'll use that, but as for manufacturing, well any old shmuck can do that so we'll get it cheap as chips in China."

Pacific Brands has a responsibility to its shareholders, I can't disagree there, but with all the devastating news of textile factories closing continuing, to have this written on the tag of Bonds clothing is a bit of a slap in the face to all the previously employed Australian workers. It says that labour cost savings is the only reason they're out of a job.

I see it happening more and more, brands trying to eek out any bit of Australian connection left in their multi-national businesses. I just wonder if the nationalism is wearing a little thin (sorry about the pun).

What do you think Pacific Brands is trying to say with this tag?

Billboard usage (or lack thereof) in Melbourne CBD

As you can see above, this is a billboard for Will Smith's Seven Pounds film. It advertises, "In cinemas January 8". Why is this billboard still up?

As my previous post shows, billboards are still being used quite creatively, even in this market. But then again, in the belt-tightened economy groceries (an alcohol) are still doing well. Maybe beer is the exception to the general outdoor advertising trend.

Maybe outdoor advertising is feeling the pinch. You'd think a billboard near the corner of Bourke and Elizabeth Streets would be a snap to sell.

But I have also noticed that the office tower at Melbourne Central is advertising three whole floors for rent. I don't think I've ever seen an vacancy advertisement on a building as popular as that.

Maybe the doomsayers are right, things will certainly be interesting in the CBD over the next 12 months.