Meet the Chinese Consumer of 2020

April 21, 2013

 

Most large consumer-facing companies realize that they will need China to power their growth in the next decade. But to keep pace, these companies will also need to understand the economic, societal, and demographic changes shaping the profiles of consumers and the way they spend. This is no easy task not only because of the fast pace of growth and subsequent changes in the Chinese way of life but also because of the vast economic and demographic differences across the country.

The preceding quote is from the latest “DFS Learning e-Blast” article, Meet the Chinese Consumer of 2020, by Yuval Atsmon and Max Magni.

In this March 2012 McKinsey Quarterly article, the authors discuss changing demographics, new spending patterns, and the implications on companies.  This is one of a series of articles we’re sharing on our growing PRC consumer.  It is important for us to understand the context of this critical consumer’s evolving needs, desires, and behaviors as we seek to effectively meet their shopping needs in the markets where we serve them.

More from the article:

Many of the changes taking place in China are common features of rapid industrialization:  rising incomes, urban living, better education, postponed life stages, and greater mobility.  Japan saw similar changes in the 1950s and 1960s, as did South Korea and Taiwan in the 1980s. 

But some unique factors are also at work, such as the government’s one-child policy and the marked economic imbalances among regions. Our analysis reveals important insights into the likely demographic and socio-demographic profiles of Chinese consumers at the end of this decade.

Read the short article to learn more!

Mike Osorio, your Dare to be Contagious™ strategist

www.OsorioGroup.com

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8 Qualities of Remarkable Employees

April 14, 2013

Great employees are reliable, dependable, proactive, diligent, great leaders and great followers… they possess a wide range of easily-defined—but hard to find—qualities.  A few hit the next level. Some employees are remarkable, possessing qualities that may not appear on performance appraisals but nonetheless make a major impact on performance.

The preceding quote is from the latest “DFS Learning e-Blast” article, 8 Qualities of Remarkable Employees, by Jeff Haden.

In this February 21, 2012 post on Inc. Magazine’s online edition, the author provides a straightforward list of qualities which separate ‘remarkable’ employees from ‘great’ ones.

At DFS we strive to select, develop, and retain the very best talent in luxury retail.  Learn how the author defines remarkable and then reflect on how or if you are developing the remarkable among your team and decide whether ‘remarkable’ is for you!

Read the short article to learn more!

Mike Osorio, your Dare to be Contagious™ strategist

www.OsorioGroup.com

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Improving the customer experience through the ‘peak-end’ rule

March 29, 2013

 

If you take a moment to understand the idea, you have an opportunity to reevaluate and transform your retail customer experience in ways that could go a long way toward creating an ideal customer perception, and profitable customer behavior.

The preceding quote is from the latest “DFS Global L&D e-Blast” article, “The ‘peak-end’ rule: Can it transform your customer experience?”, by William Cusick, President of Vox Inc. and the author of “All Customers Are Irrational:  Understanding What They Think, What They Feel, and What Keeps Them Coming Back.”.

In this October 23, 2009 article, the author describes a simple technique that makes use of human psychology to maximize customer experiences.

At DFS we are keenly interested in understanding how we can create emotionally engaged customers.  The ‘peak-end rule’ can help us along that path.

More from the article:

It’s about having the right perspective, and taking advantage of a chance to create memorable experiences for your customers. The reward is higher retention and higher profits.

Read the short article to learn more!

 

Mike Osorio, your Dare to be Contagious™ strategist

www.OsorioGroup.com

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Unleash the Power of Customer Relationships

March 24, 2013

 

Building a sustainable Customer Culture takes courage, commitment and hard work. It is solely through Customer Culture that we establish and sustain the inspirational humanistic environment that builds mutually beneficial customer relationships. The unfortunate alternative to building a rich Customer Culture is the current luxury and retail business model where nameless sales people sell luxury products and services to anonymous customers, all in the course of a one-time soulless transaction.”

The preceding quote is from the latest “DFS Learning e-Blast” article, Unleash the Power of Customer Relationships, a white paper created by The Luxury Institute.

In this January 2012 white paper by The Luxury Institute, you will read about the seven critical steps the Luxury Institute espouses for luxury brands to build Customer Cultures that will dramatically increase customer and associate acquisition, retention and referral rates.

As all of us at DFS continue to evolve our approach to developing, delivering and measuring a true luxury customer-centric culture, this article serves as a wonderful reminder of the reason for our quest and challenges us to critically assess our strategies.

More from the article:

Do it for your brand, do it for your associates, do it for your customers, do it for society, but most of all, do it for yourself. Building a true Customer Culture in your organization will dramatically enhance your own life experience. It will transform you from being just another business executive into a happy and thriving human being who enjoys a meaningful life with a far greater purpose than the pursuit of money. Ironically, the sales and profits will follow.

 

Read the short article to learn more!

 

Mike Osorio, your Dare to be Contagious™ strategist

www.OsorioGroup.com

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The New Japanese Consumer

January 1, 2013

DISCUSSION TOPIC

 

The New Japanese Consumer

November 18, 2011

 

All:

 

After decades of behaving differently, Japanese consumers suddenly look a lot like their counterparts in Europe and the United States. Celebrated for their willingness to pay for quality and convenience and usually uninterested in cheaper products, Japanese consumers are now flocking to discount and online retailers. Sales of relatively affordable private-label foods have increased dramatically, and many consumers, despite small living spaces, are buying in bulk. Instead of eating out, people are entertaining at home. Workers are even packing their own lunches, sparking the nickname bento-danshi, or “boxlunch man.”

 

The preceding quote is from the latest “DFS Learning e-Blast” article, The New Japanese Consumer, by Brian Salsberg.

 

In this 2nd quarter 2010 article from the McKinsey Quarterly, the author provides an interesting overview of the Japanese consumer’s changing domestic purchasing behaviors.

 

In previous e-Blast articles we’ve explored the changing dynamics of consumers in Korea and China.  Today, learn what factors are changing the way the Japanese consumer thinks about shopping and brands, and how this impacts their shopping behaviors.  By better understanding what drives today’s Japanese shopper, we can better serve our #2 customer nationality as they visit our locations throughout the world.

 

More from the article:

 

This fundamental shift in the attitudes and behavior of Japanese consumers seems likely to persist, irrespective of any economic recovery.  That’s because the change stems not just from the recent downturn but also from deep-seated factors ranging from the digital revolution to the emergence of a less materialistic younger generation.

 

Read the short article to learn more!

 

Mike Osorio, your Dare to be Contagious™ strategist

 

www.OsorioGroup.com

 

What do you think?  Please add your comments to join the discussion!

 

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Insights on Korea’s Luxury Market

October 8, 2011

DISCUSSION TOPIC

Korea’s Luxury Market – 10-04-2011

“…the performances of famous brands in Korea have been mixed. For example, LVMH and Ferragamo continued to do well, but others, like Gucci Group and Dior, saw sales drop in real terms in 2010.”

The preceding quote is from the latest “DFS Learning e-Blast” article, Korea’s luxury market: Demanding consumers, but room to grow, by Aimee Kim and Martine Shin.

Read about the changing Korean shopping landscape in this write-up of the results from McKinsey’s 2011 Korea luxury consumer survey, available on the McKinsey & Company Web site. The authors note that McKinsey research shows that South Koreans spend a higher percentage of their household incomes on luxury goods than the Japanese do, and the South Korean market looks to sustain strong growth for several years to come. But the country’s thing for bling is evolving: buyers are beginning to think more about brand differentiation than about ostentatiously displaying famous logos.

While DFS does not currently do business directly in Korea, the insights from the McKinsey story highlight the purchasing behaviors of Koreans who continue to travel in significant numbers to many of our destinations.

More from the article:

Thus, while the headline news is that the luxury market is still growing strongly, uncertainty is also mounting. In this year’s report, McKinsey addresses these concerns, which come in the form of three key questions: Can South Korea keep it up? What’s changing? And what do these trends mean for the players in the luxury industry?”

Read the short article to learn more!

Mike Osorio, your Dare to be Contagious! ™ strategist

www.OsorioGroup.com

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Recess comes to the workplace

October 8, 2011

DISCUSSION TOPIC

Take a Break to Increase Productivity – 09-19-2011

September 19, 2011

A survey from Harris Interactive found that recess was key to improving workplace health and productivity, and re-energizing employees.

The survey was sponsored by Keen, the footwear brand which earlier this year launched Keen’s Recess Revolution tour, a series of events designed to inspire adults to “reclaim playtime and take much-needed 10-minute breaks from the daily office grind by escaping to the outdoors.” With a pop-up playground featuring tetherball courts, Frisbee, hula hoops and more, the tour has made stops in Denver, Minneapolis, Portland and San Francisco. The survey was released on September 14 on World Recess Day, a day-long outdoor event held by Keen in Washington D.C.

The Survey on Workplace Recess, conducted during August 2011 and involving 1,099 adults employed full-time, revealed:

  • More than half (53 percent) agreed that a 10-minute “recess” outdoor break initiated at their workplace every day would make them a healthier, happier or more productive employee;
  • Forty-one percent felt outdoor breaks would help them deal with stress at work;
  • Forty-four percent indicated that they would participate in recess if it were offered at their workplace, with the greatest interest among women (53 percent) and Millennials (51 percent).

At the same time, more than 70 percent said they’ve never participated in a paid recess-type break outside of lunchtime. Seventy-eight percent (78 percent) felt that certain factors would need to be in place for recess to be a part of the workday, including encouragement from top management (39 percent), participation from their boss and/or colleagues (25 percent), a designated time of day for recess to avoid scheduling conflicts (35 percent), and recess becoming part of the company culture (33 percent).

Dr. Toni Yancey, author of Instant Recess: Building a Fit Nation 10 Minutes at a Time and co-director of the Center for Health Equity and professor of health services at UCLA, said in a statement that short activity breaks would aid in reducing obesity rates and sick days while lifting employees’ mood and subsequently improving productivity

“If employers offered and encouraged a paid activity break during the day, it would offer a real return on investment for them — delivering $1.50 – $2.00 for every dollar spent implementing the program, according to our estimates,” said Dr. Yancey.

Added James Curleigh, Keen’s CEO, “I hope that the idea of workplace recess will catch on with companies that aspire to be great places to work, ultimately making recess as common as casual Friday.”

Discussion questions:  What do you think of the proposed benefits and feasibility of scheduled short activity breaks for retail store and headquarters employees?

My post:

There are physical and psychological benefits to a well designed “recess” strategy. The key is infusing a bit of fun into the sameness of most retail workdays, whether in the office or on the sales floor. The Pike’s Place Fish guys are a well-used example of this done right, but there are many others out there. It is difficult to schedule in today’s lean staffing store environment, but worth the effort. Especially when the boss plays too. It can be as simple as a 15 minute fast-paced walk outside to a green area to enjoy a coffee and a chat, or a little more planned, such as a once or twice monthly walk to an ice cream place as a reward. Don’t make it too structured, or you’ll lose the ‘fun’ element. This can be a big part of an ongoing and authentic engagement strategy.

Mike Osorio, your Dare to be Contagious! ™ strategist

www.OsorioGroup.com

What do you think?  Please add your comments and add to the discussion!

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Go to the full discussion at Retailwire.com:  Take a Break to Increase Productivity

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