Tag Archives: Media

Tapping into the booming esports market

PCR BLOG

In July 2019, spanning three days, the largest gathering of gamers from around the world – 40 million – took part in the Fortnite World Cup tournament. Hailed as a monumental moment for esports, the winner, a 16-year-old, took home £2.42 million. The prize sum overshadowed the £1.6 million Shane Lowry won at this year’s Golf Open Championship in Portrush. The esports industry is becoming increasingly popular, rivalling many traditional sporting events with the Fortnite tournament watched by 23,000 people in a sold out New York stadium and millions more through live streams.

This highlights how the gaming industry and its place in culture has evolved, with gamers stepping away from their own consoles to watch others play their favourite games. And not surprisingly, this is reflected in the size of the gaming market which continues to grow rapidly. According to Newzoo, there are reportedly 2.3 billion active gamers globally and 46% of those (1.1 billion) spending, the financial impact to the establishment is significant. More so with the forecasted growth of gaming from $137.9 billion in 2018 to more than $180.1 billion by 2021. Looking just at the UK, the gaming market is now worth a record £5.7 billion thanks in part to the strong foundations in place for innovative games and entrepreneurial developers.

The next 12-18 months looks set to be a very interesting for the sector with some of the big names in gaming hardware expected to reveal their next generation platforms. Expectation is that Sony, who have sold 525 million consoles since launching PlayStation in 1994, will start to ship their latest console in the second half of 2020. And of course both Nintendo and Microsoft will be in the mix too. Microsoft officially announced its next generation hardware, codenamed Project Scarlett, during its E3 2019 conference and it’s due for release in time for “Holiday 2020”.

Before that is the exciting debut of Stadia in Q4 this year which may be a potential fly in the ointment for the established gaming brands. Google’s launch of Stadia is a game-changer, and a move that will have Nintendo, Microsoft and Sony quite concerned. No downloads, no patches and no console makes this the cloud gamers dream, and Google is delivering this incredible service without compromising on graphics quality.

As Phil Harrison VP and general manager at Google stated when launching Stadia: “It’s a new generation platform, rather than a next generation platform”. In evolving the concept of platforms, rather than recreating them, Stadia will be a tough act to follow, with sharing options via YouTube, which has 63 million daily viewers worldwide, Google Assistant built in, 4K resolution games at 60 frames per second with HDR (High Dynamic Range), and a plan to support 8K resolution in the future.

The excellent features are great news to those who have grown up used to on-demand web-based entertainment, app-based games and instant updates to technology, but for generations who are familiar with buying physical consoles and games, this could be a transition they may not make because nostalgia can come into play. Owning a console and saving up to buy the latest must have game and completing it before trading it in to buy the next release, has been a pleasure to many.

The generational changes in consumers has seen Millennials identify with nostalgia and they recapture their youth through console gaming just as they have been doing for over 20 years. There is a shared enjoyment amongst social groups in getting together and playing a multiplayer game on Mario Kart on the original Wii. It’s also interesting to see how the retro gaming sector tapping into this and making headlines. Available to buy this Christmas will be a reimagined full-sized reissue of the Commodore 64.

Giving this generation a chance to either buy or play the consoles and games of their youth could open up a new opportunity for gaming retailers, because a streaming service is not great news for those retailing the hardware to eager gamers needing to upgrade to access the dream being sold by the platforms. Indeed, GAME has been battling tough high street conditions and has seen in the past three months a successful take over by Sports Direct. The British sports gear retailer said it did not believe that, as a standalone business, GAME was “able to weather the pressures that it is facing”.

Furthermore, the introduction of streaming could see the resale market suffer too, again a blow to high street stores such as GAME and CEX.

This is an evolving and exciting market with opportunities and pitfalls for the whole supply chain. I started this piece discussing the phenomenon that was the Fortnite World Cup and for retailers, this presents a huge opportunity to tap into this ‘experience’ economy and revive their fortunes by using empty high street spaces to create purpose-built gaming arenas for live gaming where the community can come together. But there’s no doubt that we’re going to see a ferocious battle between Stadia and the console manufacturers – so let the games begin.

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5G and its societal impact in the home. Are you ready?

The Drum Blog

Over the last few years, smart home technology has revolutionised the way we live at home and according to PWC’s White Paper, Connected Home 2.0, 10.8bn will be spent on smart home devices in the UK in 2019. But despite this, a recent survey we carried out into the connected home highlighted consumer frustration with smart home technology.

Consumers cited all sorts of problems – from not being able to get their smart home technology to connect to each device and talk to each other; not having an idea of how to work it all works; being worried about security; and seeing little perceived benefit or value in the technology. Whilst this may sound negative, this presents a huge opportunity for 5G to boost further appliance adoption and showcase the future possibilities in the home.

There’s been a lot of hype around 5G, but I believe 5G is a transformative technology for the home, as it’s spearheading a multi-dimensional world connecting appliances, brands and people in real time with its fast bandwidth and reduced latency. Take a look around your home. There’s already numerous appliances that rely on a strong wireless connection to work – iPads, virtual assistants, laptops – and without it everything comes to a halt. 5G will provide an alternative to fixed wireless internet making things connect quickly, nicely and simply. From rural areas where broadband speeds are poor to urban areas where speeds can suffer from congestion; 5G will enhance the possibilities for a smarter home.

This will pave the way for 5G-enabled fully integrated living spaces that adjust to the needs of each member of the family, changing the way people entertain, consume media, use their utilities, communicate and cook. Virtual assistants like Alexa and Google Home are only the start and we’ve seen a fraction of what personal assistants are capable of. Google announced at CES earlier this year that it wants to make its Assistant the focal point of a consumer’s life; in the home, in the car and on mobile devices. 5G will be that enabler.

Layer on top of this the possibilities of 5G-enabled in-home augmented and virtual reality for cooking. Imagine Delia standing next to you showing you how to cook one of her recipes at the touch of a button. Sit down with your friends and family to watch a tennis match and imagine real time sports data appearing over tennis players as they hit the ball. 5G will make smart homes even smarter by unshackling developers from the speed restrictions and other issues that exist with today’s solutions where devices rely on wi-fi networks or Bluetooth connections.

5G can provide a more consistent approach, making things easier to setup and thus encouraging product development and subsequent consumer adoption. It is about future-proofing the nation and one of the most interesting effects will be the societal impact 5G will have on our aging population. 5G networks will help users age in place and blur the lines between hospital and home, better managing the healthcare of patients who require the most resources from our currently overloaded NHS.

We’ve already seen how sensor operated smart home tech can alert families to movement, so they know their elder relatives are up and about in the house and not lying there injured or worse, dead. And remote surgeries, where doctors see patients by video call, often suffer with buffering as an issue, particularly in remote locations which makes the service more difficult for vulnerable people to use. 5G will take this to a whole new level; real-time remote monitoring of medication usage; food intake levels and exercise; connecting the elderly to seamlessly operated telehealth services and tracking indicators from sleep to blood pressure and insulin levels.

5G can help power personalised, preventative and smarter care capabilities and elevate connected medicine to an unprecedented level helping elderly people live fulfilling and productive lives on their terms. This is exciting times for a growing societal issue here in the UK but let’s not underestimate the understanding we need of the health ecosystem and what it will take to implement the systems to connect to these technologies.

To read the full article please visit The Drum.

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Equipping young minds for a successful digital future

Bdaily blog

The UK is leading the adoption of digital technology enabled in education with UK Schools allocated an estimated £900 million in funding from the Department of Education for 2019-20 for EdTech according of the Institute for Fiscal Studies.

In physical terms this equates to 3,392,100 computers in classrooms across the UK with an average Primary School having 70 computers and Secondary an average of 431[BESA.ORG]

There are currently 32,113 schools in the UK. Of these, 20,925 are primary schools and 4,168 are secondary schools. There are 2,381 independent schools, 1,256 special schools and 351 pupil referral units. [BESA.ORG]

The opportunity to expand Edtech sales are obvious for those who know how to tap into this growing market that values accessible technology to equip young minds for a successful ‘digital’ future. There are also benefits for already stretched schools to help bridge the gap through Edtech as it’s proven to reduce teacher workload, boost student outcomes and help create a level playing field for those requiring learning support. So much so that the Education Secretary, Damian Hinds, set out plans in April this year to support innovation and raise the bar in education establishments across England backed by a £10 million injection.

School funding per pupil is expected to be frozen in real terms between 2017-2018 and 2019-20 albeit at a level of above 4% – IFS

The target audience is not exclusively schools, it’s also parents, as many public secondary schools employ a BYOD program, therefore parents are expected to buy their child a suitable device. However, this is becoming stricter as previously it was an “any device will do” approach but due to different devices having different capacities and capabilities, this has changed. Today, school book lists stipulate the minimum requirements for a device to create a more uniform and compatible ecosystem that is hassle free for all.

The retail market for Back To School is worth, in all categories, some £1.45bn in the UK and is an increasingly important fixture in the retail calendar, becoming competitive for both brands and retailers endeavouring to appeal, in particular to secondary school pupils and those students heading off to university.

From PC to projection and display technology such as Jamboard from Google & BenQ the classroom is changing where technology is the norm and standard for students as they transition through their education and eventually into the workplace.

It’s not just about the hardware and software solutions, it’s also about the teachers who need professional development and training to understand how each device could work and how they can effectively add them in to their lesson plans. Figures from Bett highlight that 74% (rising from 60% in 2018) of educators surveyed said that educational technology is often not sufficiently easy to use for ordinary teachers. So, those brands that offer the end to end solution that enables education access to the best technology with the easiest interface, least maintenance and highest reliability will capitalise on this growing market.

Chromebook by Google is one of these, Google shared in January 2019 that 30 million Chromebooks are now used in education, up 5 million from the last reported figures in 2018. Growth has been aided by many country’s education systems choosing to use Chrome OS devices and G Suite cloud based computing solutions that enable collaborative learning accessible whenever you need it. In London the brand has worked with London Grid for Learning to help over 90% of schools across the city bring technology to more students by offering free training in Google Classroom, G Suite and other tools to help improve the digital skills of teachers.

Similarly, are Epson who have identified that 58% of students cannot read all content on a 70“ flat panel. Epson’s interactive display solutions provide scalable image size. Having the right sized image for a room can make a huge difference to levels of concentration, enjoyment and understanding.

The DFE in April 2019 published a white paper entitled “Realising the potential of technology in education: A strategy for education providers and the technology industry” DfE White Paper.

This white paper identified 10 challenges for industry to assist in eradicating these within education quoting: “To catalyse change in the use of technology across the English education system, we are launching a series of EdTech challenges. They are designed to support a partnership between EdTech industry and the education sector to ensure product development and testing is focused on the needs of the education system. The challenges are to industry and the education sector (including academia) to prove what is possible and to inform the future use of EdTech across our education system.”

Setting out their stool to really help children in education be ‘digital’ ready.

To read the full article please visit Bdaily News.

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Can the new tranche of Chinese tech brands take the UK by storm?

drum blog

In recent years, more Chinese brands than ever have broken new ground in Europe and continued to develop outside of their established Asian markets. One of the most immediately recognisable Chinese brands is Huawei and possibly Hisense but have you heard of Haier, Oppo or Xiaomi? Chinese consumer electronics brands have recently launched in the UK and are fast gaining traction in their respective categories since being made available on the UK high street.

We live in a society where global brands are the norm. Whilst we are, or at least believe we are, familiar with many of the brands we are exposed to, there are others that we don’t know so much about even if we buy-into them as consumers. Do we care about a brand’s origins and heritage? Or are consumer purchase decisions driven by a products’ look, functionality, usage, price point and status? If this new tranche of Chinese tech brands doesn’t focus enough on building their brands and resonance with the UK audience, will they be able to compete with their Californian cousins and achieve their full potential in the UK market?

Cleverly Haier, the world’s number one major appliance brand in terms of volume bought Hoover Candy, a traditional stalwart of the Major Domestic Appliance market in the EU which enables Haier to tap into the trust associated with a familiar European brand. Now listed in John Lewis stores, there’s brand reassurance of Haier is being established among shoppers.

Oppo, China’s leading 4G smartphone manufacturer, launched its range of mobile phones into Dixons Carphone earlier this year. With flagship models coming in at under £800 SIM free, the brand offers premium and innovative features at a fraction of the price other brands may charge. Time will tell if the brand has done enough to resonate and take a big enough market share and see a return on investment on their ICC Cricket World Cup and Wimbledon sponsorship.

Xiaomi, pronounced ‘ShwowMee’, is actually the world’s most valuable privately held company, and the third biggest smartphone maker, selling 61 million handsets last year. Xiaomi has been bold with its UK launch strategy and has opened a great new Mi store at Westfield White City. The store is familiar looking, sharing many similarities, all be it on a smaller budget, to that of its Californian cousins.

It sells a variety of products from mobile phones, TVs, smart kettles, electric scooters and other accessories in an environment where you are encouraged to play and explore. Its pricing is competitive and it’s certainly within the budgets of a far wider demographic than other brands but what it lacks is star quality. Star quality on build, packaging and its ability to give consumers that ‘feel good’ factor from an anonymous brand is essential if it’s to mean more to consumers. All possible if its proud heritage and brand storytelling was more obvious.

Tell me what Mi means to the technology industry and I may be persuaded to purchase some of today’s most competitively priced technology and become a brand advocate. Hide from me what Mi is and I may react a bit more suspiciously and feel the brand isn’t the best fit for me. Brands, wherever they are from, should be proud of their heritage and success. A confident, honest and ethical brand will help instil the necessary confidence in consumers to help a brand to gain traction and ‘win’ in a new market.

To read the full article please visit The Drum.

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The glue that connects all communities

ert blog

By riding a crest of goodwill, utilising new digital channels and tapping into the networks of big brands independent retailers can punch above their weight, boosting sales and awareness.

Independent retailers have long faced competition on multiple fronts. The big threat for many years were the big chains gobbling up the high Street. Now that threat has moved online with digital pure play sites like Amazon eroding market share. The truth is not many customers are particularly sentimental about the plight of some of the bigger chains in trouble. However, the threat to local stores from the likes of Amazon and Omni Channel retailers has been met with much more concern from the public and big brands.

A series of initiatives have sprung up in defense of these traditional bastions of the high street, from independent record store day to independent retailer month. Additionally, reports from organisations like the New Economic Foundation have highlighted the benefits to local communities from spending in independent shops versus bigger stores or online. These messages have cut through. A survey last year by Pure 360 found that consumers are three times more likely to shop in independent stores than large shops in the next five years.

This approach has been noted by large brands who have started to latch onto this trend to boost their own credentials and bottom line by supporting local independent retail. Visa chose to focus its Christmas campaign on local heroes and independent stores. Visa’s focus was on switching the focus of the traditional format of a Christmas marketing campaign, from what people are buying or who they are buying for, to where they are buying things from. American Express did their bit too, with a ‘Shop Local’ campaign that rewarded AMEX customers with a £5 statement credit for shopping in local independent stores.

The digital revolution may represent a major threat to independent retailers in terms of competition, it also represents a huge opportunity in terms of marketing. Independent retailers have always had an intuitive understanding of their customers and this can be bolstered by digital channels. While local newspapers may be closing, local newspaper websites are seeing more growth than ever in readers. The explosion of SMART phones has also led to a huge increase in the figures accessing local radio and content, another great route for independents to get their messages out. This is not to mention social media, both paid and organic with the ability to offer a micro-targeting strategy and hyper local personalisation, enabled by both Facebook and Google. Clued up retailers are seeing the benefit of connecting with increasingly online communities springing up.

In electronics particularly, many product brands are wising up to the opportunity and skill local independents possess. A great example of this is Freeview. The Freeview Retail Development Team are a strategic field team, supporting independent retailers across the UK. The team are unique in that they do not sell a specific product for a specific brand. Instead, the team supports all Freeview (including Freeview, Freeview HD and Freeview Play) enabled products across all brands and stores.

Where some brand teams are selective in their retail support, the RDE team’s brand independence means they can offer the best possible service for independent retailers, cooperating with OEM brands such as Panasonic, Humax, LG and Toshiba to deliver up-to-date training on all products and services.

As well as assisting retailers through training, the Freeview team also supports independents with local marketing campaigns, in the past having managed localised radio, press and social media campaigns supporting selected retailers with a Freeview focus.

Through long-term training support, local marketing campaigns, and regular visits to ensure all staff are knowledgeable on all aspect of the brand, they help to ensure that independents are the destination of choice for Freeview customers. They understand the fact that independents can provide the glue that connects local communities.

By focusing on their strengths, connecting with these bigger brands and tapping into the needs of their customers through targeted local advertising, independent retailers can grow as a destination of choice for customers and become their local hero.

To read the full article please visit ERT Online

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The Drum – ‘Regrexit’ or not, smart targeting never been more important for retailers

Regrexit blog

As much as I might want to avoid the subject, it is impossible to look at retail predictions for 2019 without looking through the lens of Brexit. As the uncertainty continues over a possible deal, I want to try and think about the effect it will have on retailers in 2019, what is probably concerning them and what if anything we can do to brace ourselves.

I watched the fascinating Channel 4 live debate show, Brexit: What the Nation Really Thinks, which aired in November. Polling and market research agency, Survation interviewed 20,000 people online across the UK from 20 October to 2 November 2018 in the biggest ever independent Brexit opinion poll. If you didn’t see it, according to the poll if the referendum was re-run, there would be a swing toward remain at 53% to 47% – but that’s neither here nor there right now!

What was interesting, with my retail hat on, was how attitudes to the overall economic outlook of the country and people’s personal finances by age group would impact retail strategy planning their 2019. Overall, the study found that 44% think Brexit will be bad for the economy, versus 31% thinking it will be good. This deteriorating consumer confidence is already being played out on the high street where we are seeing a continuing stream of store closures – not just because of Brexit, but certainly not helped by it.

When you start to delve deeper into the demographics there is a clear picture emerging among the different age groups – as the age group increases attitude to Brexit, economic outlook and effect on personal finances get more positive. While 45 year olds and younger now overwhelmingly have a negative view of the economy post-Brexit, for 55-64 year olds it is much tighter (34% think it will be good, versus 40% bad) and for 65-74 year olds it swings to positive (42% think it will be good, versus 35% bad).

A clear majority of consumers aged 54+ also think Brexit will either be good or make no impact to their personal finances. There are two factors behind this. Firstly, they are after all ‘Generation Wealth’, with more assets and financial independence so therefore less likely to feel they will be adversely impacted. Additionally, as a majority wanted to vote leave anyway, they were clearly unimpressed by what they see as ‘project fear’ from the remain side about some of the reported negative financial impacts.

However, for worried millennials a far different picture emerges. Just 24% think Brexit will be good for the economy versus 50% bad. Meanwhile 44% think it will be bad for their finances, against 18% good. Not surprising when you consider their careers started after the financial crash and they are less secure in their jobs.

So, what does this mean for retailers in developing marketing strategy? Insulated from any of the more negative personal financial impact of Brexit and with more confidence in the country’s future could we see the baby boomers create a mini retail boom?

However, for millennials, worried about their personal financial security as well as the economy, retailers will need to entice them to shop. Millennials seek out experiences which also applies to the way they shop. Retailers need to engage with this audience through the customer journey making any purchase a positive experience. What is the USP versus Amazon for this digital, increasingly disenfranchised demographic?

Having a distinct strategy for the different demographics and understanding their mindset, spending power and intention will be key. Also, being agile and flexible and able to react quickly to the market and buying signals. Just as the outcome of the negotiation won’t satisfy all political parties or a now fractured population, neither will a one size fits all retail strategy. Start planning now to remain relevant to your customer base as we move into unpredictable 2019.

To read the full article visit The Drum.

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