Category: Consumer Discretionary

Would You Pay Up for Something that Will Last Longer?

From fashion to food and electronics, many industries are facing a backlash against cheaply made products that do not last. Sick of printers that break within two years, or suitcases that fall apart the second time you use them, there is a growing appetite for long-life guarantees – from the promise of the 30-year jumper to the rise of shopping sites dedicated to products that last a lifetime.

Ordering an Espresso in Italy…at Starbucks?

“With great humility and respect” Starbucks has announced it intends to open its first outlets in Italy in 2017. For Howard Schultz, who transformed the Seattle roaster from 17 stores focused on selling coffee beans into a global chain with more than 22,500 outlets, this latest opening is different. It was in Milan in 1983 that Schultz first experienced the theatre of Italian espresso bars and conceived the notion of opening similar establishments in the US: 34 years later Starbucks is coming to its spiritual home.

Do You Have a FoMO? Get in Line

The In-N-Out Burger pop-up in Sydney this week is a case study in how to do this kind of retail.  Devoted fans who have sampled the fast food outlet in the US and In-N-Out newbies have whipped up a social media storm, and this is exactly the viral word-of-mouth marketing that In-N-Out burger would have been hoping for.

It’s Christmas (Tree) Time All Year Long

At this time of year, it is worth reflecting on the huge influence that Christmas can have on production and consumption patterns. Christians may worry that their sacred celebration has been appropriated for commercial gain, but the fact is that a very wide range of businesses’ goods and services depend on Christmas and must be consumed or experienced by December 25.

Not OK Gifts that are Actually OK

There are many social norms that dictate gift-giving, including when, how and what to give as gifts. 

Interestingly, these norms don’t seem to be about making sure that recipients get the gifts they want. What makes for a good or bad gift often differs in the eyes of givers and recipients.  In fact, behavioral science research shows that gifts that may seem “taboo” to givers might actually be better appreciated by recipients than they might think.

The Loyal, Frequent Customer

The rewards business has turned into its own multi-national industry. When a Chinese billionaire reportedly bagged a lifetime of free first-class flights by using his credit card to buy a single (admittedly expensive) piece of art recently, it acted as a reminder that millions of us are underwriting loyalty schemes such as this. However, we’re not all benefiting quite as much as certain comfortably off art collectors.