By the looks of it BlackBerry, one of only two current brands in the smart phone market which are truly differentiated (no points for guessing the other one), decided to jump on the entertainment/social media bandwagon. First, there is the cringe-worthy ad by U2.

Second, there is the recent announcement regarding their ‘social networking’ site My BlackBerry. 

Having done extensive research in this area it is apparent to me that this very competitive industry craves viable, consumer-facing differentiation. Why then BlackBerry, blessed with a very clear business persona, tries to undermine this crispness and clarity? Surely you they should be building on what strengths they’ve got? Instead, BlackBerry appears to be moving away from the business space closer to the muggy and murky middle ground occupied by the likes of Samsung, Nokia and LG. Not a great long-term strategy if you ask me.

This time we’ll be examining the most recent previous economic downturn in 1991-92. This recession was triggered by the effects of global slowdown as well as the collapse of the UK property bubble.

The nature of recovery was broadly similar to the 1980’s, but with :

• An earlier peak to unemployment (10% in 1993) and a lengthy hangover in the housing market – “negative equity”
• Job insecurity affecting white collar as well as blue collar workers
• Continuing de-industrialisation
• Growing force of globalisation (UK brewing industry acquired by global giants)

Under John Major’s government much of Thatcher’s policies were continued:

• Emphasis on market forces (e.g. NHS reforms)
• Tighter control of government spending
• Further loosening of regulation (e.g. Pub and shop opening hours)

However in marked contrast the majority of the populace were actually diverging from such policies. The British Social Attitudes Survey asked if “Government should increase tax and spend more on social welfare”. In 1983, 32% had agreed; by 1993 this figure had grown to 63%. Socially, British attitudes to relationships and sex “were characterised by pragmatism, common sense, tolerance and some respect for traditional monogamous ideals” (A. Marwick, ‘British Society Since 1945′).

The latter 1990’s were essentially a continuation of the late 1980’s: the UK was now regarded as a dynamic economy, in which enterprise was rewarded and foreign investment was welcomed.

OPPORTUNITY AREAS
Further potential of IT
Global capitalism (the deregulated City, demise of USSR, metamorphosis of China and India)
Multicultural Britain
Medical applications of life sciences
Affluent society (substantial rise in affluence since 1980)

STRONG GROWTH MARKETS AND INDUSTRIES

IT/COMMUNICATIONS
PC’s, Mobile phones, satellite and cable TV

GLOBAL CAPITALISM
Financial services, business services
Japanese car plants (Toyota, Honda)

MULTICULTURAL BRITAIN
Ethnic targeted products

MEDICINE
New/enhanced treatments and drugs

AFFLUENT SOCIETY
Premium products and brands

OTHER
Low price air travel
English premier league football
Sex industry (Ann Summers)

FMCG Innovation was very limited in 1991 & 1992. This was followed by a somewhat patchy recovery – strong in 1993, weak in 1994, strong again in 1995. Major themes in 1993-95 included old favourites convenience and snacking, but also new technology and aspiration – affordable aspiration and aspirational lifestyle.

So looking back at the last recession of the 20th century, how did Britain fare?

Pros:

• Reinforcement of dynamic UK economy
• Developing consumer demand is met effectively across a broad range of products and services

Cons:

• Continuing existence of “underclass” making only marginal economic/social contribution
• FMCG innovation was less robust than during 1980’s
• Government increasingly out-of-step with population

Next time we’ll try to summarise some of the useful lessons from history; and some pointers for the prospects on the other side of the current recession.

After a recent trip to Germany I returned with a challenge: to purchase & send an Abercrombie & Fitch T-shirt back to my excellent German hosts. This might seem odd, however when you consider that to order a T-shirt direct from the A+F online catalogue & have it sent to Germany (where there are no A+F outlets) worked out at around double the cost, the rationale becomes pretty clear!

This of course meant a trip into London where a friend I hit upon our first problem…finding the flagship store. Knowing the street address as being just off Savile Row we trekked around the block there a few times but to no avail. What made the situation even more infuriating was the abundance of shoppers walking about with A+F shopping bags. Perish the thought that two English men would even consider asking one of these more enlightened shoppers for directions, so we continued to flounder for a good ten minutes more before finally asking somebody – at which point our embarrassment was confounded when we discovered we were standing outside the shop which is, on the outside, completely un-branded! Queue laughter and and further embarrassment at the realisation that my friend & I were clearly not “in the know” here, something that Abercrombie and Fitch expects from its loyal customer base. 

So for better or for worse we made it inside to a truly different shopping experience where everything is so on-brand that one almost feels like an alien in a shop designed for chiseled jocks and beauty queens. See the attached photograph of me with “Insert Name here – Chad maybe?” – a dashingly on-brand chap who also satisfied any appetite any shoppers might have for a fix of faux-celebrity. (I’m the one looking suitably nervous on the right!)

A+F take traditional aspirations of youthfulness and beauty and use it as the cornerstone of their brand – even the shop assistants look as though they had just walked out of the pages of a fashion magazine. As well as standing there looking like wonderfully kempt brand ambassaders their other role was to help navigate confused shoppers round the dark maze that was the shop. Perhaps partly to resemble a nightclub, partly to funnel a vulnerable consumer into making quick purchase decisions the low lighting and strong perfume certainly make the experience a sensual one.

In the end I managed to get the desired T-shirt and it has been sent back to Germany leaving me to post-rationalize the whole experience as one for which I can’t help but feel impressed by. Sure A+F won’t be everyone’s cup of tea but it was refreshing to see branding by way of experience taken so seriously and executed with such aplomb. The brand exudes confidence almost to the point of arrogance but in doing so has created an aura that makes loyal customers in countries that don’t even have outlets.

1. “Do what you do so well that they will want to see it again and bring their friends.” (Walt Disney)

2. “If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends.” (Jeff Bezos)

3. “The way to gain a good reputation, is to endeavor to be what you desire to appear.” (Socrates)

4. “Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong.” (Donald Porter)

5. “Your most unhappy customers are your greatest source of learning.” (Bill Gates)

Borrowed with pride from all over the place.

1. “If you wait for opportunities to occur, you will be one of the crowd.” (Edward de Bono)

2. “Opportunity doesn’t knock. You knock, opportunity answers.” (Proverb)

3. “Opportunity is missed by most people because it is dressed in overalls and looks like work.” (Thomas Edison)

4. “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” (Sir Winston Churchill)

5. “Through the doors of perception, Down the corridors of uncertainty, Into the room of self doubt, Opens the window of opportunity.” (Anon)

Borrowed with pride from all over the place.