"You can't see change when you're in the midst of change."
The Quotations of Slim Fairview
Recently, the New York Times has been writing about what China is doing in Detroit. "Detroit" is synecdoche for the Automobile Manufacturing Industry.
The rise of the middle class in Asia has only just begun. Asia is not only an emerging market: people to sell to; it is an emerging source of investment money. (Op. cit. Detroit.)
The shift in the paradigm seems to be going along well. Coverage in the Media, however, has been focused on Benghazi, the IRS, AP, and The Bloomberg allegations.
Meanwhile, there has been a seismic shift in the both the Global Economy and in the Local Economy. A change that no one seems to have noticed. In fact, that was the point of the Times article on Chinese investment in Detroit. It has been happening quietly. Discreetly. However, in the US, there has been another change. This has not been going on quietly or discreetly. This change has simply been ignored.
E-tailing is a clever word that hipsters (people my age who try to act hip) have coined to show they are tuned into what's happening. Yeah, okay.
Meanwhile, more people are buying online and the increase will continue. In fact, the increase may accelerate. What does this mean?
- Lower return on investment in brick and mortar stores
- Less Mall Traffic
- More difficulty for the Advertising Industry to reach increasingly larger demographics
Brick & Mortar stores, means Less Money to go around among:
- The Construction Industry
- The Mortgage Finance Industry
- Real Estate Tax Revenue Industry
- Youth Employment Industry
- Commercial Industry Suppliers
- The Secondary Retail Market served by The Multiplier Effect.
And so one.
Mad Men: Ad Men or Sad Men?
The single most read article on my blogs, all time, is "Mad Men: Ad Men or Sad Men?" Indeed, this may have much to do with the popular TV series. However, the article was an insight into how a potentially great commercial can be defeated by a small detail. More recently, the media has been refocused on three of its own major concerns. Paradigm shifting, industry altering concerns.
The First is the fact that the business of buying and selling commercial time is shifting. This is a major concern to those in the advertising industry.
The Second is the change the consumer relationship with media.
The Third is the actual making of television commercials themselves. And some of this ties into the MTV factor.
The Last Minute Scramble
In the first, people withing the industries will renegotiate their relationship. However, the over-riding consideration will be the audience. Too many questions are being asked. Too many studies are being done. And little will change. Well, little will change until change verges on too late and then there will be the last minute scramble. How do I know. Well, first, because too many questions are being asked. Second, because too many studies are being done, And, third, because this is the way it always is. Why? I shall not be coy. Because
An Industry Within an Industry has been Created.
We have market segmentation: Young People, Old People, Rich People, Poor People.
We have Transmission: Television, Cable, Dish, Internet, i-Phone, i-Pad, or others.
And, to add to the problem, there is a legal donnybrook about to break out about retransmitting the signal over the Internet.
Eventually, everything will balance out. Right now, it's Mob Technology.
We've become so charmed with our ability to discuss the matters at hand that we've lost touch with some of the basics.
- Brick and Mortar stores can go with the flow. They can become hands on catalogues with a drop-shipping paradigm
- Nationals can become internationals or multinationals.
- Old Malls can become New Cities: Real Estate re-purposing can turn a shopping mall into a "city" or the industry can copy a Big City product: Residential High Rise with retail on the ground floor, or mixed-use Residential and Office Space with a City Street on the ground floor.
- Co-opt the MTV model by using image to keep the consumer focused while insuring that the song is heard.
- Make the Mall Tech Friendly with WiFi. Then, Starbucks and Tacos and Thai, Oh, My!
To Sum it Up
Right now, Retail and Advertising must join together to resurrect Marketing. Remember Marketing? Find a need and fill it? You don't convince the consumer to buy what you want to sell. You sell what the consumer wants to buy. Op. cit: Ron Johnson at JCP.
Links to further reading listed below.
If you find anything here to be helpful, please do not hesitate to send me a really tricked-out Mac Book and to tuck a few dollars into the envelope along with the thank you note.
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Copyright (c) 2013 Bob Asken
All rights reserved.
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