The Start of Something New?

The following is excerpted from Consumed: Rethinking Business in the Era of Mindful Spending (Palgrave Macmillan, July 2010), written by Andrew Benett and Ann O’Reilly and drawing on findings from the Euro RSCG New Consumer study:

The long, wearisome decades of hyperconsumption shaped not just the way we think and feel but the very language we use. It is now customary to refer to human beings as consumers or even as brands. And an entire lexicon has been summoned into existence just to give verbal shape to our profligate excesses: big-box store, Black Friday (and now Cyber Monday), bling, door-buster, McMansion, self-storage, shopaholic, supersized, warehouse club.

The bloated culture of excessive consumption—and its language, symbols, and styles—are so much a part of our everyday reality that it is difficult to remember that they have not always been around. But now, thankfully, much is changing. And there might well come a time, not so far off, when the language of mindfulness becomes sufficiently ingrained in consumer culture to seem perpetually intertwined with it, the way hyperconsumption has been for so long. Think how many terms connoting mindfulness have recently sprung into existence: carbon footprint, downsizing, ecotourism, ethical consumption, Fair Trade, food miles, frugalista, green collar, locavore, and sustainable, among others. Ten years ago, many of these terms would have been unfamiliar—perhaps bafflingly so. Now they are in constant use and spreading widely.

Future-focused brands are playing a role in this exciting transformation. And the more these brands contribute to the vibrant new language of rightsizing, restraint, and responsibility, the greater the likelihood of mindful consumption becoming ingrained within our collective psyches. Perhaps then we will see a new way of life emerge, one that keeps consumerism in happier and healthier balance. And perhaps then we will finally get back to enjoying more substantive fulfillment in our lives, with our families and friends, of course, but also with those brand partners that find profit not in being rapacious but in offering sensible solutions to our genuine needs.

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    “A permanent shift has taken place among consumers. They are far more engaged in every aspect of marketing and manufacturing, and brands that want to win and retain their loyalty will need to listen better, react faster, and be more nimble in everything they do. This book offers a fresh and vital perspective on those actions that will be most essential to future growth.” —Christian McMahan, Chief Marketing Officer, Heineken USA

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    Image credit: JohnLeGear@flickr.com (Chicago Cool Globes 2007)

Disposable Culture & Our Fear of Commitment

This post originally appeared on Scoutie Girl and is reprinted with permission. It speaks to the New Consumer paradigm of Purposeful Pleasure. What can brands do to imbue their goods and services with greater meaning and longer-lasting satisfactions?

We live in a disposable culture. Our lives are like giant landfills. We’re surrounded by junk.

We pay 99 cents to download disposable music. We drive through “restaurants” making disposable food. We wear disposable clothes so we don’t ever have to be without the latest trend. We create relationships—families even—that have disposable bonds. The entirety of our culture can be thrown away and bought anew.

    “There’s a reason we say ‘put your money where your mouth is.’ Where we put our resources—time, love, cash—on a daily basis creates, demonstrates and confirms our commitments.” —Kelly Diels

Kelly says, money = commitment. I couldn’t agree more. We can’t commit to quality, to things that last a lifetime. We can’t commit to things that nurture us instead of make us sick. We have a serious problem with commitment.

And so we have a serious problem with money: the way we earn it, the way we save it, the way we spend it.

There’s nothing wrong with stuff, with consuming. But when we treat our stuff like it has no value—because it doesn’t—that attitude creeps into other parts of our life. Our “commitment problem” doesn’t just reflect outwardly—we stop even committing to ourselves.

We don’t commit to our education, our creativity, our bodies, our psyches, our circumstances. We are constantly looking for the cheap way out.

Goods that do not nurture our homes, our lives, or our families are disposable. Food that does not nurture our bodies is disposable. Relationships that do not nurture our souls are disposable. We don’t have to commit to them. And we owe them nothing in return.

Deciding we’re going to commit to spending money on an art class or music lesson, a vine-ripened tomato picked from the farm in the next town over, a professional to service our business, or a piece of handmade clothing is not so much a commitment of money, it’s a commitment to yourself and to the rebuilding of our culture. It’s a choice to consume something of real value that nurtures others as much as it nurtures you.

What are you committing to today? What have you decided is indispensable instead of disposable?

The Mindful Traveler and Luxury Reimagined

Adapted from KNOW: The Future of Travel, available to employees and clients across the Euro RSCG Worldwide network.

While overconsumption was the common practice prior to the economic downturn, we are now seeing a countervailing trend of mindful consumption that is changing how people define value and what they seek—and increasingly expect—in their brand experiences. Where once “more was more,” now different perspectives on luxury and service are emerging, with interesting implications for the travel and tourism category.

Roughing It Gently
Rough Luxe is a movement and a group of like-minded hotels, restaurants, retailers, and artisans connected by a philosophy of luxury that emphasizes authenticity over “bling” and experiences over excess. The movement began in 2008 with London’s Rough Luxe Hotel. Located in an iffy area of King’s Cross, this unique hotel celebrates the ambience of contrasts: architectural heritage versus gritty neighborhood, high-end amenities versus reclaimed furniture. Rooms boast original artwork and elegant bed linens alongside 25-year-old televisions and wallpaper peeling down to the 1920s stratum in a kind of urban archaeology. Priced at around $200 per night, each room offers a chic and engaging experience far removed from standard luxury fare. For its interior designer, Rabih Hage, a graduate of L’Ecole des Beaux Arts in Paris, this is a deliberate philosophy and practice. In interviews, he has noted that luxury should be about rarity, not duplication: “It’s not about bling or expensive objects,” he explained in The New York Times. “It’s about remaining true to real provenance.” Guests at the hotel or any other in the Rough Luxe Experience network might share a bathroom or have a small room, but they will find luxury in the surroundings, the choice of wine, the art on the walls, and in the service provided by the staff.
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Can Small Changes Lead to Big Ones?

This post originally appeared on Greenway Communique and is reprinted with permission. What can marketers do to nudge consumers in a more sustainable—and satisfying—direction?

How can people be convinced to significantly green their lives? To make the big changes needed to conserve natural resources and decrease energy use?

Robert B. Cialdini may have something to suggest. Cialdini is the author of Influence and I’ve been reading his follow-up book Yes! 50 Scientifically Proven Ways to Be Persuasive. Each of the 50 ways is given its own chapter in the easy to read book and number 14 is titled: “How can one small step help your influence take a giant leap?”

This chapter tells the story of two social science researchers posing as the Road Traffic Safety Committee and their quest to get homeowners to place “a large, unsightly sign measuring six feet by three feet and stating DRIVE CAREFULLY on [their] front lawn.” Unsurprisingly, only 17 percent in the “posh neighborhood” agreed to place the sign in their yard. But what was astonishing was that the researchers were able to increase that rate to 76 percent among a similar group “simply by making one seemingly insignificant addition to their request.” From page 65 of the book:

    A different research assistant approached this separate group of residents two weeks prior to this burdensome request and asked them if they’d be willing to display a very small, relatively inconspicuous sign in their window that read BE A SAFE DRIVER. Because it was such a small request, almost all of these residents agreed. Two weeks later, when someone else came to their home and asked them if they’d be willing to place the large billboard on their otherwise perfectly manicured lawn, they were much more inclined to agree.


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The Reverse Walmart Effect

Giapo is a gelato store in Auckland, New Zealand, run by Gianpaolo Grazioli, a young Italian man. I haven’t been there personally but those who have describe it as “a lovemark . . . dripping with mystery, sensuality, and intimacy” and its products as “the only thing you need in life.” For today though, we’re going to put the in-store ambience to the side and try to forget about how tasty the gelato is. As much as Grazioli is brilliant on these fronts, what he really excels at is building and maintaining relationships.

We’re all familiar with the term, the Walmart effect: the chain offers “lowest prices every day” through economies of scale buying, which forces local businesses out of operation. Popular literature around the Walmart effect is largely damning; the organization divides local communities, pays its workers poorly, puts ma-and-pa stores out of business, etc. But in this age of the big guy, there’s a counter-movement going on, one that Giapo epitomizes, offering hope for small businesses. Let’s call it the reverse Walmart effect.
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Mindfulness Sightings in the Food & Beverage Category

Look around you. Signs of the shift toward more-mindful consumption are everywhere, in every industry. Today, we spotlight innovators in the food and beverage category.

Rightsizing

o Australia is home to at least one restaurant at the forefront of the rightsizing movement: At Wafu in Sydney, chef Yukako Ichikawa is serious about diners cleaning their plates. (Who knows best? Mom knows best.) If you order more than you’re able to eat on premise, you have to pay a surcharge of 30 percent. Eat up!

o In New York and London, Otarian is billing itself as “the first ever low-carbon restaurant chain, using a cradle-to-grave analysis in the carbon footprinting of every menu item.” Springwise reports the restaurants are powered by wind, water, and/or sun, water use is minimized, and the furnishings are made from recycled materials. Diners get to see the difference in the carbon footprint of their veggie meal in comparison to a meat-based equivalent and earn “Carbon Karma” credits that eventually reward them with a free Choco Treat.

Purposeful Pleasure

o KIND, a maker of natural whole nut and fruit snack bars, operates under two core principles: a) the “power of AND,” and b) holistic kindness. The “power of AND” means “creating new paths that avoid false compromises” (e.g., healthy and tasty, convenient and wholesome, economically sustainable and socially impactful). Holistic kindness means to “be KIND to your body, your taste buds, and the world.”® The KIND social mission is embodied in the KIND Movement, which inspires unexpected acts of kindness. Customers are encouraged to visit KIND’s Facebook page and “share KIND acts for the chance to win KIND bars and other cool giveaways.” Learn more about the brand’s “digital altruism” on Brandchannel.com.
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The Most Interesting Brand in the World

The following is a post from EditorialEmergency.com, spotlighting how brands can connect with the New Consumer by understanding and speaking to the four paradigms—in this case tapping into the move toward mindfulness and consumers’ increased hunger for susbtance.

“He once went to a psychic—to warn her.”

“His blood smells like cologne.”

“If he punched you in the face, you would have to fight off the urge to thank him.”

“Even watching him sleep has been described as breathtaking.”

“His legend precedes him, the way lightning precedes thunder.”

The above snippets of whimsy are all ad copy, as anyone familiar with Dos Equis’ current, hugely successful campaign, The Most Interesting Man in the World, well knows.

The upscale beer’s mascot, a gray-bearded, ultra-cosmopolitan man of mystery (portrayed by actor Jonathan Goldsmith) whose magnificence has awakened the inner fabulists in a fleet of copywriters, is a far cry from the usual TV dude hawking suds. In fact, his recurring catchphrase (uttered in floridly Latin-accented English) is, “I don’t always drink beer. But when I do, I prefer Dos Equis. Stay thirsty, my friends.”

The cinematic spots that tell, or rather allude to, TMIMITW’s story depict, in Bondian snippets, a globe-trotting adventurer, a spy, a scholar, an animal lover (he frees a grizzly from a trap), a husky-voiced Lothario with a philosophical bent. When he addresses the camera, in formal wear with shirt-collar unbuttoned, he’s surrounded by a de rigueur bevy of gorgeous women — but his cool gravitas stands in stark relief to the keg-party mayhem, talking critters and desperate-to-please sports tie-ins typically thought essential for coaxing young males to buy six-packs. Themed ads with titles like “On Wingmen” find the silver-maned gentleman dispensing such wisdom as: “It only takes one person to talk to a woman.”

The agency behind all this comparatively soulful mirth is Euro RSCG Worldwide, an industry heavyweight with a passel of major clients. Judged by any conventional yardstick, the firm’s campaign has been madly successful: UTalkMarketing.com reports that sales of Dos Equis climbed by 17% in a period of 2009 during which imported beer dropped by 11% overall. The commercials, meanwhile, earned a Titanium Lion at the Cannes International Advertising Festival, recognizing “the world’s top integrated advertising campaign.” “According to beer marketing experts,” notes UTalkMarketing, “never has advertising played such an important role in building an import brand.”

Yet RSCG’s creative team stands out from the pack not merely for inventing an effective, catchy campaign but also for harboring a revolutionary ethos. It has taken the occasion of the global recession to reject the idea of “hyperconsumption” in favor of “mindful consumption,” which is to say advertising geared not to the accumulation of stuff (or the stuffing of pie holes) but to the pursuit of experience. They invented TMIM, in other words, as a playful appeal to people who want to lead more interesting lives.

To read the complete article at Editorial Emergency, click here.

How Green Was My Travel

Excerpted from KNOW: The Future of Travel, available to employees and clients across the Euro RSCG Worldwide network.

Whereas not so long ago the issue of “going green” was one of exhortation and persuasion, now it is more a matter of shade, degree, and implementation. Most all constituencies in the travel and tourism (T&T) sector—consumers, providers of lodging and transport, tourism authorities and operators—would agree in the abstract on the good of green, but are still challenged by how best to integrate green goals in terms of acceptable compromises related to comfort, ease, and the bottom line.

Varying Shades of Green

The most successful green practices are bottom up, well integrated, and transparent, with buy-in from all stakeholders. It’s a far cry from the early days of eco-consciousness, when hotels were able to earn green cred simply by placing small cards in rooms alerting guests that, in the interest of sustainability, sheets would not be laundered each day unless requested. Now that leading companies from Walmart to GE have shown that sustainability bolsters the bottom line, more travel and hospitality brands have made a commitment to go green all over. In one example of where the industry appears to be headed, every room at Seattle’s Best Western Executive Inn and Best Western Loyal Inn is an “EcoRoom,” meaning it features products that are energy and water efficient, waste reducing, nontoxic, and/or biodegradable. Reservation agents have been trained to discuss the hotels’ green program with prospective guests. Other T&T brands are approaching “green” from a more personal perspective: New York’s Premier Hotel uses special purification products and techniques to ensure each of its “Premier Pure” rooms is at least 98 percent free of bacteria and viruses. Marriott and Hilton are among the large chains entering the “hypoallergenic accommodations” space.
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Value Comes from Behind: A Perspective from the Netherlands

Are you sure the cheese on your pizza came from cows? How hygienic is the kitchen in that snack bar around the corner? Exactly how Italian were the olives that went into making your olive oil? And what about those tinned tangerines; how do they peel them, anyway? It is questions such as these that have been behind two of the most successful TV programs in the Netherlands in recent years: Keuringsdienst van Waarde (“Inspectorate of Value”) and De Smaakpolitie (“The Taste Police”). They give us that ever-so-desired look behind the scenes. And tomorrow’s mindful consumer will only be more interested in the story behind the product. Offering transparency will become more than a defensive move to head off potential complaints. In the age of the New Consumer, marketers can turn the process behind their products into a powerful weapon capable of creating brand preference.

The urge to double-check the facts increases as people lose faith in a company, product, or brand. And this is just what the credit crisis was all about: loss of confidence. So we need not be surprised to see in the New Consumer survey that 45 percent of Dutch Prosumers say they now set more store by how and where products are made. Their interests may range from the safety of the food they feed their children to the fees and commissions they pay for financial products. Already, we know that around half of Prosumers in the Netherlands (49 percent) are paying more attention than in the past to the environmental impact of the products they buy, and three-quarters (74 percent) are keeping a closer eye on the quality and freshness of the food they buy. The motives may vary, but the consequence is the same: People want to know more about the products they are consuming, and they will continue to dig deeper.
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Defining the New Value: The Hunter-Gatherer Imperative


Adapted from KNOW: The Future of Value, available to employees and clients across the Euro RSCG Worldwide network.

For some time now, Euro RSCG has studied the shift toward “experiential retail,” looking at such phenomena as the theme-restaurant trend of the 1990s, the increase in in-store diversions, pop-up retail, and multisensory store design. The “value experience” the New Consumer now seeks is different in that it has less to do with sensory stimulation than with making the very best choices. Done right, the purchase experience satisfies two need states: hunting (the need for discovery—“Look what I found!”) and gathering (the need for selectivity and trust—“This is a purchase I feel good about”).

Satisfying the Hunter
In 2009, Euro RSCG fielded a quantitative study in the United States, United Kingdom, and France (n=500). More than two-thirds of respondents to the Future of Value survey admitted to being consumed with getting the best deal possible. Evidence of that mindset can be seen in the aggressive shopping practices taking hold online and in the increased visits to such bargain bastions as tag sales and secondhand stores.

Significantly, the appeal of the “hunt” is not just about cost savings. Human psychology tells us that real value is not found, it is discovered. Active value hunters don’t want “something for nothing”; they want to feel they have earned something not available to the average shopper. They enjoy the process and take pride in the effort they expend to get the best deal.

This hunting instinct has important implications for product promotion. First and foremost, the experience must offer opportunity for interactivity. This can be as simple as requiring shoppers to register for promotional codes or as complicated as creating an ambassador-type program that rewards the most active evangelists with prizes and other incentives. Exclusivity also conveys value: People want to think they are getting a deal available only to those who have made an effort to pursue it. Marketers are catering to this desire with such promotions as “private” and “members only” sales, which convey a sense of exclusivity even when all that’s required to qualify is an e-mail signup or prior purchase.
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