Tag Archives: World

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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Disruption will lead to innovation in our high streets

The Drum Blog

Culture Secretary Jeremy Wright announced in May 2019 that a new £62 million fund will breathe new life into historic high streets across the country. Really? What’s £62m going to do? Unless there’s a momentous shift by Government regarding the business rate issue no £62m fund is going to fix anything or impact the dire straits we find our high streets in.

But here’s the conundrum. Across the country, people still enjoy going shopping. Shops are not going to disappear and 89 percent of UK sales are still generated through physical retail.

Consumers want high streets and businesses want to be there. We can’t give up on our high streets, but we need to fundamentally disrupt the existing model with ideas that address business rate costs head on.

Reigniting imagination on the high street

We need traditional brick and mortar retailers to be imaginative and visionary to make retail work for them and their customers. We haven’t seen enough of this. There’s been some successes where traditional retail chains have introduced successful in-store experiences, from speaker spaces to free cookery classes, to encourage consumers to dwell and soak up the atmosphere.

We’ve also seen successful buy outs where we see anchor brands amalgamate multiple brands under one roof such as Sainsbury’s and Argos (Store within a Store concept – SiS). This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

Brand collaborations appear to work well, and this is where I think independent retailers need to deploy more disruptive strategies. Surely independents sharing space makes sense from a financial and marketing perspective and works for all collaborations, whether it’s an anchor brand and SiS or two brands in equal partnership.

Let’s take my local high street, where there is a bookshop with a coffee shop, and this unsurprisingly works well. So why don’t we see such partnerships more often with, say, independent clothes and shoe shops hooking up, cook shops and delis collaborating and complimenting one another and butcher’s, bakeries, greengrocers and florists joining up.

With so many consumers now on a personal quest to do what’s good for the planet, collaborations can really work to bring purpose to the fore and give consumers more choice.

The rise of the ethical high street

For people who are ethically minded, they may prefer to visit collaborations that have similarly aligned values for example, butchers, delis and bakeries that are fully ethically sourced or organic or shoe and clothes shops that won’t use unethical material. Delivering a positive, convenient and alternative shopping experience for people for whom these things are a driving factor in their purchasing decisions will provide an incredible customer service and experience that’s missing right now.

I’ve been in the industry over twenty years so I’m not naive enough to think this is easy, but retail is the most dynamic of industries and it needs to do something before it loses its confidence and high streets forever. I believe it requires a major re-think of the whole supply chain from landlords to legal and introducing new innovations like retail matching services. A service that pairs up independent retailers who are looking for high street shop spaces in particular areas.

There are all sorts of challenges – what happens if one brand is doing well, and the other isn’t, if one wants to sell and one doesn’t? But we’re at an impasse where something drastic needs to happen for us to re-imagine the high street. And drastic means disruption and innovation not more of the same.

To read the full article please visit The Drum.

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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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Brits want ‘service over sci-fi’ from retailers

The Drum Blog

A study published today by marketing agency Gekko – ‘Service not Sci-fi’ – reveals that UK shoppers would rather deal with real people over robots or artificial intelligence when it comes to shopping.

The study finds that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. Half of those polled believe that companies in the UK are using technology to save money, rather than improve customer experience.

Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and only 9% in favour of a talking robot assistant.

When it comes to buying online, 43% of UK shoppers have had their screen freeze while trying to make a purchase. When asked what makes a great bricks-and-mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal face-to-face when complaining, 59% when enquiring or trying to find out more about a product and 73% when getting a refund.

A third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16% confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43% of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help. Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51% of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying. And 47% of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77%) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option. More than 4 in ten (43%) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23%) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, managing director of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

The survey was conducted by Ginger Comms in December 2018, speaking to a sample of 1,500 shoppers aged 18+ and representative of the UK population.

To read the full article visit The Drum.

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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Mobile World Congress Plays Backdrop to the Telecoms’ Brand Fight

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As the great and good of the mobile world gather in Barcelona for this year’s GSMA Mobile World Congress, an event attended by none other than Mark Zuckerberg fresh on the back of his WhatsApp purchase, what will a crowded category of brands announce next?

Samsung, Apple, LG, Blackberry, Sony, Nokia, Huawei, Motorola and the list goes on. The number of mobile brands out there is large, so how does this mass of brands gain affection? Samsung has just launched a brand marketing platform in a bid to become the ‘most loved brand,’ while this year we’ve seen Huawei ink a partnership with Arsenal. The opportunities for these brands to overstep each other are limitless, so who will win this aggressive marketing match?

You don’t have to look far to see evidence that the world of successful, high-end smartphone makers is shrinking to a few major contenders dominated by Apple and Samsung – while other important brands, like BlackBerry, LG and Motorola, fade in prominence or struggle to compete. Still, lesser known brands have a chance to grow, even thrive, in emerging markets. Lenovo is picking up steam in China, the most important growth market there is; and, even though they’re on the brink of extinction, BlackBerry phones are still selling throughout Africa, South America and the Middle East. ABI Research says that smartphone penetration is at 20 percent out of a global population of 7.2 billion people. Looking at it another way, smartphones accounted for a little over half of all mobile handset sales in 2013. That means there are a lot of people who will be shopping for their first-ever smartphones, people who perhaps aren’t as focused on brand loyalty as they are on value.

So what are these brands doing to gain market share? Sponsorship is a core strategy for many of these brands. Huawei hopes its tie-up with Arsenal will boost awareness of the brand in the UK. It had a 0.9 per cent share of the UK smartphone market in November, according to comScore, putting it 9th in the rankings behind brands including Samsung, Apple and BlackBerry. That is also well behind its global share, which Strategy Analytics estimates at 5 per cent in the third quarter.

Then, there are the beloved celebrity endorsements that catch many an eye. However, it remains unclear whether they have helped some of these ailing tech businesses. HTC had been struggling, but hoped that its signing of Iron Man star, Robert Downey, Jr., last year for a two-year deal could turn things around. In picking a big-name actor to not only front its campaign, but also help shape it, HTC is following a well-trodden path; however, the endorsement has failed to attract at a high level as its net income fell by more than 90 per cent last quarter.

The problem is that there are so many brands out there and the ones that are winning the match are those that have strong brand identities. Whilst Apple focuses on experiences for customers rather than sponsorship and celebrity, the brand keeps consumers at the heart of everything it does, allowing it to anticipate what they want next, breaking new ground in design and performance. Samsung’s products are equally as good (just look at the recently launched S5) and the brand’s marketing approach, a large investment set to drive brand loyalty, is as scientific as its nearest rival. A “brand dependence” index revealed at CES suggested that more people are dependent on the Samsung brand than any other in consumer electronics. As part of its brand strategy, it has invested heavily in social engagement and that too is paying off as it clearly knows its audience and how to target it. With EE in the UK announcing a 68% increase in 4G customers, consumers want a handset which not only compliments the network, but also meets their needs – whether this be functionality, speed or style.

For brands on the periphery to succeed, there needs to be some deep-seated consideration taken in what the brand stands for and what its target audiences are. The brands out there at the moment seem to be clambering after everyone rather than taking a step back and establishing a concrete outlook into the future and where they want to be. Nokia, which – we don’t need to be reminded – is now owned by Microsoft and oddly launching an Android device, is a great example. As with any demographic, brand is everything. For a category that we cannot live without in this connected world (where our smartphones get thinner, get larger in screen size and become not only phones, but also cameras and media devices), these brands could possibly transform their businesses by holding back on the random star endorsements and sponsorships until they know who they’re targeting.

The land grab opportunity is huge and everyone attending MWC this week knows the value of a 1% global decline in emerging markets as predicted by GfK, but who will dominate and buck this predicted trend in our brand-fickle world?

Written by Daniel Todaro

Read the full article at http://www.brandingmagazine.com/2014/02/25/mobile-world-congress-2014/

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