The thrill and novelty of the first Chinese wave of luxury shopping over the past decade is slowly giving way to more complex behaviour from the Chinese shopper.  Contrary to the seeming spendthrift image of the opening question, they have always had a reputation for driving a hard bargain – and their behaviour is becoming increasingly complex to gauge.  More importantly, there is no such thing as the homogenized ‘Chinese luxury shopper’.

The pioneering wave of conspicuous luxury consumption was driven by the extraordinary growth of the key Tier-1 cities, especially Beijing, Shanghai and Guangzhou.  But – just as has happened in every western economy – it is the rise of a new middle class that will be the true long-term powerhouse of consumption in China.  Across the Tier 2, 3 and 4 cities (especially in central and western China) are rising new consumers who have less disposable income than the now veteran label-gatherers of Beijing, for example, but they open up new opportunities for mid-range brands.

The Chinese middle classes are increasingly brand conscious; although they aren’t able to afford the top brands, they still follow the trends of the major labels and then seek for alternatives within their budgets.  The growth of mid-range fashion such as H&M, Zara etc is now outpacing the luxury sector. For some consumers this may mean saving hard to attain the basic entry level model at Cartier or Chanel.  But many more are seeking alternative brands that deliver quality, style and authenticity but at a lower price point.

Interestingly, the ultra-rich are also slowly broadening their brand search.  While the most popular luxury labels are well known and provide instant peer recognition from friends and colleagues, some luxury consumers are seeking alternatives in exclusive and niche brands. For some, as they become more experienced as consumers, their preferences switch to what they really want, rather than the brand most likely to impress.  They also want unique products and a more personalised luxury shopping experience.

The spiraling growth in luxury spending over the past few years is supposedly under threat from everything from a potential slowdown in the Chinese economy to a government crackdown on corruption but the Chinese government is using domestic consumption to re-spark the fire of growth. After a relative slowdown there are signs of renewed growth rates for the year ahead. That growth will inevitably continue to be dominated by the world’s leading luxury brands – Audi, Louis Vuitton, Chanel, Dior, Hermes, Longines, Lancôme, Prada, Omega etc – but the unique scale of the market and the increasing range and complexity of consumer profiles, especially in the middle classes, are opening up amazing opportunities for other labels to enter this dragon.

For any brand, it is gauging the evolution of consumer behaviour that will be the bigger factor in its future success with the Chinese shopper. Those leading labels will still dominate but look out not only for left field foreign labels carving out their own niche markets but also China’s home-grown labels.

We might even get to the point where the question becomes:

在店里最时髦的品牌是什么？  “What’s the most stylish brand in the store?”

And the answer might not be Rolex but Christopher Ward; not L’Oréal but Shanghai Jahwa, not Gucci but Jil Sander.

We feel happy, connected and balanced, we listen and we talk. We share the conversation. We are actually communicating.

The Social Media revolution has brought seismic shifts in how we communicate in all aspects of our lives, and it’s put the word relationship sharply in focus in our expectations and requirements of how we connect with brands, businesses, services and even governments.

Global citizens have ever-higher expectations from their communication experiences with the brands and businesses important to their lives, how it happens and what’s appropriate. The power base has shifted forever and personal choice, relevance to me/my life is the key driver.

Social media is now simply the new definition of media – our own personalised mix of what and how we share and connect with the new connected world.

Broadcasting – of news and equally of retail offers at a supermarket or an airport – is dying fast and that’s where the power change really impacts Travel Retail. We all demand more personal choice in how, where and when we connect with the brands and businesses we invite into our lives and we set our own ground rules for those relationships. We’re less open to the old school of ads and posters. Everything needs to make us feel this is special, for me. This company understands me.

We articulate that choice more and more and we tolerate imposition less and less. Our actions speak louder than our words.

The good news is when we exercise this choice we’re likely to become more deeply connected with those brands than ever before. Travel Retail can harness that opportunity.

As more and more of us travel and the majority of consumer social interaction with the commercial world is through lifestyle brands, retail, travel and tourism …we have a winning formula for establishing Travel Retail in their lives and many platforms to do it through.

Stunning geo based technology means we can connect personally at more touchpoints than ever before and open the opportunity to influence purchase behaviour.

In such a fragmented industry as Travel Retail, there’s no one-size fits all approach to 360 communications but one thing is consistent …for it to work we must always view this relationship outside in – from the need state of the consumer, the prospective and often elusive shopper.

Shopping isn’t the primary reason for them being in our world. It’s travel of course and airport and airlines are the 2 major pathways to bring their thinking and them in person right to our door in Travel Retail.

In this new approach to consumer engagement and conversation, we may find ourselves feeling off-piste with where retail normally sits, not comfortably commercial enough but the fact is there is inherent value in establishing emotional resonance… interest, intrigue, loyalty …just like the major brands have been doing for years on social media platforms. A growing number of airports, travel hubs and retailers are doing adopting this strategy.

Helsinki airport ran a brilliant campaign in 2012 to find out what people think would improve their airport experience. One of the answers is a book swap and Helsinki now boasts a specially dedicated area to help people feel they’ve discovered something new, take a book and leave one behind …and tell their friends about it.

In Copenhagen this summer, a down-town food festival was extended to the airport where travellers could watch top chefs in action preparing great food and sampling it for themselves. Food after all is a great emotional driver.

In London everyone’s talked about bottling the Olympic after-glow – the feel good factor that brought smiles to people’s faces and had random strangers talk to each other. At St Pancras International railway station, pianos that were brought just in for the Olympics as part of a bigger city initiative have been kept on as people just love to sit down and play and others love to watch and listen …and tell their friends. Adelaide airport is doing it too.

Gatwick airport’s efforts to connect with families through their listening stories campaign has been widely talked about throughout the UK, with masses of on-line sharing that helps make other families feel good about Gatwick and helps Gatwick shake off its old image as a nightmare to travel through with a family.

So where’s the commercial value in this?
Happier people enjoying their dwell time?
Discovering something new and sharing with friends?
Dwell times at St Pancras have extended, people are getting there early to enjoy their time. And they are spending more.
They’re also sharing it like crazy on social media.
It’s emotional ergonomics.

Changi Airport has been a master in this domain for several years from their ‘Be a Changi Millionaire’ campaign through to the current art installation Kinetic Rain.

There’s a lot to be said from the communications perspective for creating this kind of atmosphere and personality at airports. People like being there more than they did before so their mind-set is more open to what else is going on around them. People talk, connect and share and word of mouth is such a priceless commodity. It’s a perfect backdrop for Retail.

Who wants to shop if the rest of the experience is beyond bad? Word of mouth also kicks in there and the reverse effect of it as a priceless commodity is so powerful it can literally kill business.

Consumers definitely care a lot about the brand they’re buying and that they’re finding it in a suitable environment. Many of them care where – which city, which airport – they make a purchase.

They care less about the name of the retailer over the door although they do care a lot about the in-store experience and that plays a massive part in the holistic 360 communications strategy of course. I’m not suggesting social media replaces the importance of the in-store experience; what I am saying is that they are perfect partners in creating more connections to support retail performance.

So the way people are most likely to come to connect with Travel Retail is through those communications pathways of airport and brands, and if airlines are working together with the airport even better. It’s a perfect Trinity opportunity for a shared approach.

Many airports and airlines already have well-established facebook, foursquare and twitter platforms with increasing interaction with Pinterest – its visual focus being perfect for people on the move. The opportunity for Travel Retail is to join forces with those travel platforms and to think location first, then to populate the opportunity with messages about the brands through the shopping needs hierarchy of the traveller.

Remember too who your audience is – think about not only messages in core languages but also that in certain countries facebook does not exist – in China you need to look at RenRen and Sina Weibo. In Brazil and India, Google’s Orkut is a strong rival to facebook.

Let’s follow in the footsteps of the brands and work with them to maximise the communications mix in a way that appeals to the consumer. Brands are dominating the media revolution, creating multi-dimensional relationships with their consumers, nurturing and empowering them to go forth as ambassadors. They were the early adopters … understanding the commercial opportunity in holistic communications and being the first to hand over the reigns.

When it comes to airports and airlines, the majority focus on customer service with occasional bursts of facebook competitions and the now ubiquitous flash mob. This means there’s plenty of room for retail to turn up the volume.

In the Middle East the focus is currently weighted towards some excellent websites and digital activations in the airports but it’s good to know there are active plans for moves in 2013 into facebook, twitter, foursquare, pinterest all of which enable 2 way connections on the consumer journey and can influence buying behaviour.

Beirut is a good example to look at for facebook and twitter although an expansion beyond the Take Back More message will drive connections and grow the audience.

For current best in class it’s hard to beat Delhi and Singapore. In both cases there’s a very strong airport or location focus to the message hierarchy and that’s a huge part of what makes them so successful.

Further afield, Schiphol, San Diego, LAX and Toronto, Dufry in Brazil, Duty Free Philippines are also genuinely exciting to interact with as the communication is also so much more holistic and retail again plays a strong role in a bigger story that mirrors the consumer hierarchy of thinking and connection. Retail, service updates, sense of community and even regional tourism ownership are all integral to their communications across facebook, twitter, pinterest, foursquare and websites.

Social Media presents a brilliant opportunity for Travel Retail and let’s remember why we need to accelerate communication in this way …

• travellers can now compare prices right in the middle of an airport store and order it online from somewhere closer to home
• smart phones take away the old boredom of waiting at airports, there’s arguably less reason to get up and have a wander around the shops
• social media creates a golden opportunity to create genuine relevance for travel retail before and while people are travelling

Don’t do it alone – airports/retailers/brands – whoever you are – work together to communicate the whole story in a way that’s relevant to the consumer. A collective expression of personality and sense of place will deliver a multitude of rewards.

©ANNE KAVANAGH 29 November 2012

http://www.kavanaghcommunications.com

But this hasn’t always been the case; it was only twenty-five years ago the Sex Pistols were singing ‘god save the queen, the fascist regime’.

What has changed? Should we just put it down to angry teenage behaviour? Or perhaps the royal family have become more believable since Diana, the halo has fallen and we prefer them a little more human.

Many put it down to the ‘Kate effect’, and they are probably right, Kate is the best PR the royal family could have ever imagined – she is the public’s link to the monarchy. The rising popularity specifically over the last couple of years could also be linked to royal events. Since the wedding and jubilee the royal family have been in the public eye a considerable amount more than in the previous years.

Either way we all seem to love the Royal family! Why wouldn’t we! They are giving us a great excuse for a party not to mention a four day weekend!

So to get ourselves in the mood we are having a Jubilee Tea Party this afternoon.  We will be feasting on all things British, from sausages rolls to strawberries and cream and of course English breakfast tea!

- Jodie Nel

Our brilliant baker Gemma has been slaving over a hot stove once again and produced these fantastic jubilee cupcakes – can’t see them lasting long!

Almost as traditional as the Easter downpour is the consumer’s frantic search for Easter essentials. The need for anything – from a leg of lamb for a Sunday roast to the tools for gardening or DIY jobs – is frustrated and many end up playing a new Easter game, ‘hunt the (smaller) shop that’s open’. Failing that, many simply forget the shops and simply switch instead to leisure options, such as cinema, tenpin bowling or eating out, and the retail opportunity is washed away in the Easter rain.

With the Chancellor’s announcement of extended trading hours on Sundays for large shops during the Olympic period, many consumers who support relaxation of Sunday trading legislation generally (and that’s over half of us according to a Which? poll in 2011) must be asking: Why does store size matter on Easter Sunday but not on the eight Sundays during the Olympics? … as well as the age old question: Does size matter at all?

Regardless of the store size debate, large retailers too have a choice: during the Olympics they can choose not to open all day on Sundays or to open for a different six hours. It’s no wonder consumers get confused and are occasionally caught out by an unwelcome surprise!

If you need support with managing clear communications and managing your shopper expectations on the Sunday opening issue during the Olympics, we can help.

Jane@kavanaghcommunications.com

Media talk of a crisis of competence in No 10 continued to play out over the weekend as a crisis of confidence in fuel supplies amongst British consumers, who remain reluctant to travel any further than they need to.  They are doing what you would expect; seeking to gain an element of control over the potential outcome of a situation that they cannot directly influence.   Not bad from a crisis management perspective except of course that ‘we consumers’ have acted on instinct not fact, and created chaos where a crisis is yet to exist.

British business on the other hand is to be congratulated. Publicly, it has mostly kept its counsel discrete and when speaking publicly has added balance.  Brian Madderson of the Retail Motor Industry, was quick off the mark, and has been consistent and persistent in communicating the independent petrol filling stations’ positioning and opinion.

Inevitably, behind the scenes, businesses – from supermarkets and corner shops, to health and transport providers – are reminding themselves of the lessons learnt in 2001, and have been preparing for what might come: a potentially commercial as well as reputational crisis.

For a reminder of how the chaos has erupted see Victoria Ward’s timeline at:
http://www.telegraph.co.uk/earth/energy/fuel/9177277/Fuel-crisis-How-the-drama-unfolded.html

The dress rehearsal may be over but will the show go on?

If you need support with preparing for the possibility of a fuel crisis, do get in touch.
Jane@kavanaghcommunications.com

Earth Hour started on the other side of the world by WWF-Australia in 2007 where 2.2 million individuals and more than 2000 businesses in Sydney turned their lights off for one hour to make a stand against climate change. Since then, Earth Hour has become an annual global event on the last Saturday of every March, and now goes Beyond the Hour to get people to commit to lasting action on climate change and ultimately raising awareness.

It has definitely raised my awareness of climate change, but how can we commit to lasting action on climate change in the office? It reminds me a bit of our New Year resolutions, everyone has good intent on the first of January but by mid February the new trainers are gathering dust and the gym membership seems a waste of money. Committing to lasting action needs us to make durable changes that the whole office can keep to, and ultimately, be proud of.

So, after much deliberation in the office we have come up with a few ‘Kavanagh Communications Climate Commitments’ – bit of a mouthful, yet quite catchy… These are just some of the small simple things that we could all change in our working life, that would add up to a big difference.

1.  We’ll THINK BEFORE WE PRINT our emails – and add a note to our emails encouraging others to do the same.
2. We’ll turn off lights and unplug rarely used appliances.
3. We’ll look to reduce the amount of printed material we produce by using file share websites where printed copies are not essential.
4. We’re committed to working together with our clients to reduce the amount of travel involved for meetings by using online conferencing services.  Reducing our carbon footprint, and the costs to our clients.
5. We’ll car share or use the train for those meetings that do need to be face to face.
6. We’re committed to making our lunch break activities more climate friendly by walking or running to the local sandwich shop rather than driving! It’s only a 15 minute walk away after all!

I’m now feeling a lot more climate conscious and I hope you will be joining me at 8.30pm tomorrow (Saturday 31^st March) in turning your lights off for an hour.

If, for just one hour, we all change the habit of a lifetime of leaving lights on, we could collectively make a difference to climate change.

Pinterest is essentially a place for people to ‘pin’ pictures of the things they are interested in. A way of displaying their style, fashion and interests in a pictorial format. Pictures (or ‘pins’ as they are known) can be re-pinned by other members and is the Pinterest way of saying ‘I like your style’. Also, in a similar way to Facebook, people can like your ‘pins’ and comment upon them. In turn this builds a following and provides the social aspect to Pinterest. Currently Pinterest has mostly US based subscribers, but that’s changing rapidly and the UK is building fast.

For me Pinterest is a way to collect and compartmentalise the things I love and also to share and exchange ideas with millions of other people. It’s such a great feeling when someone repins one of your pictures, then you track down their pins and think wow! For companies it’s a soft approach, an open window if you like into the psyche of the (potential) customer and his or her life – and therefore the relevance of a particular brand to that person – all from simply browsing people’s boards. Mine is a mixture of brands and labels I love, my family and personal things I find inspiring, a mood board of my life. I think it’s one to watch.

My other favourite site is Instagram <http://instagr.am/> , a photo sharing platform that’s hugely popular, mainly because of the apps provided for iPhone & iPad that turn a simple picture , with a few taps of the screen, into something much more interesting. With the highly anticipated app becoming available on the Android platform any day now Instagram will become even more popular and powerful because the control is with the user and we’re all becoming more much confident and competent about user generated content applications.

Fashion Brands have been the first to tap into this with Ted Baker rolling out across its flagship stores an in-store portrait service <http://mashable.com/2012/03/13/ted-baker-digital-portrait-instagram/>  via Instagram,. This is where shoppers are invited to try on pieces from the collection and pose for a photo. A great example of a brand embracing social and engaging with its customers.

Both Pinterest and Instagram provide a treasure chest of information for marketeers and insight gatherers. Although as a brand you can’t directly control the content, that’s almost the appeal as the power is with the all important customer, the brand user. I know I’m well and truly hooked on these and all around me everyone seems to be falling under the same spell.

Arriving in Paris yesterday with colleagues we were struck, you could even go so far as to say we were hit round the face, by how unclean and unloved Gare Du Nord has become, especially in the metro – it is horrid and hellish.

I think it was Marc Auge, a french anthropologist, who talked in the mid 90s about travel hubs, especially airports, as non-places, insignificant transient spaces to get through as quickly as possible – and that was definitely the case in Paris yesterday.  Many airports have come a long long way on that particular journey, and, although it’s about time too, it is good to know that many of our UK rail hubs are undergoing major facelifts as companies like Network Rail follow the lead of airports in becoming more customer centric and invest in creating places people are happy, to a greater or lesser extent, to be.  Give me brands and experiences I’m happy to spend my dwell time on and the benefit of making these spaces into places will show up commercially in the sales densities and socially in word of mouth – which funnily enough feeds the commercial benefit and so the cycle continues.  Add in clean and I just might stay for dinner and bring my friends.

Commenting on the new appointment, Anne Kavanagh, Chief Executive commented: “I’m delighted that Jessica has joined us.  I’ve always been impressed with her analytical and writing skills and how quickly she got to grips with the dynamics of Travel Retail.  Our passion is to add sustained commercial value for our clients, by understanding the issues and the opportunities they face and the best approach required, across the full range of audiences whether it’s the Travel Retail community, trade, consumers, employees or other vertical sectors. Social media, reputation management and creating behaviour changes in shopper audiences are as much a part of our approach as more traditional media relations and Jessica will bring a lot of great experience and new perspectives to our team.”

Adding her comments, Jessica said: ” Joining the team at Kavanagh Communications has provided me with a fantastic opportunity to transfer my journalistic experience in the travel retail industry to provide added insight and understanding in this new role and therefore to the clients. I look forward to working with such esteemed and experienced colleagues in delivering fast, friendly and highly effective PR to drive exceptional commercial success for our clients in the industry.”

Jessica can be contacted by email : jessica@kavanaghcommunications.com

Our client Squire’s Garden Centres are raising money across their group of 14 centres in the South East, by selling delicious cupcakes. There’s also a competition to guess the number of sweets in a jar and we thought we’d join in the fun to contribute to their fundraising!  After an evening slaving over a hot, and then cold and glittery stove – here are the results – and yes they were made not bought!

Roll up Roll up, get your charity cakes here!

Greenfingers, are a remarkable charity who create magical gardens for Children’s hospices across the country.  St.Christopher’s in Godalming, has been one of the hospices to benefit from the charities work who installed a full sensory garden back in 2004.

Garden centres across the country will be holding events today to raise money, so make sure you look out for the Garden Re-Leaf logo in your local centre and get involved!