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Social Media Is Changing How Supply And Demand Works For Big Brands
Source: http://www.businessinsider.com/social-media-manufacturing-2012-12
Many companies see social media as just another marketing and communications tool. A particularly effective one maybe, but just another of many.
According to Erich Joachimsthaler, founder and CEO of Vivaldi Partners, they’re missing out on the biggest source of value from these platforms. In a recent report, he outlines how brands can use social media to change their entire business, not just their marketing.
“Where I see the biggest opportunity is to think about your entire business model. There’s so much of this social information that is unstructured information, and consumers make 75 percent of it,” Joachimsthaler says. “If you want to think about your business, if you want to create value and competitive advantage, it’s about thinking about that information and penetrating it at every step of your value chain.”
One of the best examples of this, which Joachimsthaler has studied in depth, is Burberry.
The first thing that’s allowed them to change their business is the sheer size of their social reach. “Burberry has about 15 million — and that’s growing rapidly — Facebook likes. This is an astounding figure,” Joachimsthaler says. “This is astounding because even Nike is not as strong, and Nike is a $15-18 billion dollar company. Burberry is at about $3 billion. So it’s a massive difference, the two companies don’t compare.”
They built that following by offering something useful. People on Facebo! ok can s ee Burberry fashion shows before the celebrities who actually sit in front of the catwalk.
But what’s truly innovative is what they do with those likes.
“What Burberry does is, it has made those videos shoppable. You can click on the particular garment and you can basically make an order on the spot. So Burberry can collate the orders from 15 million people. They haven’t manufactured the product yet in China, but they have taken the orders, they know exactly how many people have ordered what,” Joachimsthaler says. “They already have my money in the bank. 15 million times $200; that’s a lot of money in the bank. When they have the orders, they can then send the order to China, manufacture it, and within two weeks they can either deliver it to your home, or you can have it delivered to a store and you can buy additional garments.”
For a taste-driven and occasionally fickle industry, this saves a tremendous amount of money. “This changes the entire value chain,” Joachimsthaler says. “The fashion business is fraught with forecasting. You forecast what will be bought in the next year, you need to produce them, manufacture them in China, there are inventory problems, there are logistics problems, then you put it in the store, the thing doesn’t sell, if it doesn’t sell you have to send it to the outlet store and mark it down.
Burberry avoids a great deal of that.
There’s huge potential here that’s yet to be realized, and it could be a game-changer for the industry. We’ve only seen the beginning, Joachimsthaler argues. Someday, companies like Burberry could operate with a fraction of their inventory, and never have to mark anything down.
It’s a tremendous innovation in operations, and one that will have a large impact going forward, possibly even beyond the fashion industry.
7 Short-Term Car Rental Agencies Everyone Should Bookmark
Source: http://www.businessinsider.com/save-cash-with-short-term-car-rentals-2012-11
Owning a car costs an average of $8,776 annually, according to the American Automobile Association. That is based on 15,000 miles of driving and includes fuel, insurance, maintenance and depreciation.
Car rental companies will rent wheels by the month for as little as $589, according to Orbitz, which amounts to $7,068 per year — not including fuel, which is a major cost.
If you want to skip the bus, but still save on transportation costs, you could consider using a short-term vehicle rental service.
These vehicles are rented by the hour (or sometimes by the minute) and the rental company picks up all the usual costs of car ownership.
Short-term vehicle rental is an emerging trend that is currently only available in select big cities, but it is expanding. Here are the major operators:
Car2Go
This subsidiary of Mercedes-Benz parent Daimler, rents tiny Smartcars for 38 cents per minute or $13.99 per hour. You also pay a one-time $35 membership fee.
Renters can book one of the two-seaters online, or use a membership card to open and drive off in any of the blue-and-white painted cars they find parked around town.
Car2go pays for gas and when renters are done using the car, they simply park in any designated space, usually located downtown or in heavily trafficked areas, and walk away.
Car2go currently operates in six North American cities and a dozen European cities.
Zipcar
This company operates like car2Go, except it rents more than 30 different types of vehicles.
Rates vary by location and plan, but in San Francisco, for instance, the occasional driver plan requires a $60 annual fee, $25 application fee and hourly rates of about $8.50.
Zipcar operates in 20 major U.S. cities as well as Canada, the United Kingdom, Spain and Austria.
DriveNow
This is a joint venture led by BMW that features the German automaker’s all-electric ActiveE sedan.
Renters pay a one-time membership fee of $39 and, after picking up the car at a DriveNow station, $12 for the first 30 minutes and 32 cents for additional minutes for a one-hour rate of $21.60.
DriveNow is available in four German cities and San Francisco.
Modo
Modo is a car-sharing co-op that requires a $20 initial registration, fee plus $50 per year and $7.50 per hour for rentals.
Renters pre-book vehicles in half-hour increments and pay penalties for late returns, cancellations and no-shows.
Modo rents a variety of vehicles, but only in Vancouver, British Columbia.
Hertz on Demand
This service is an hourly offering of the world’s largest car rental company. It requires no annual fees and charges hourly rates ranging from $5 in Boston to $8 in San Antonio.
Renters pick up and drop off vehicles, which include Nissan’s Sentra, as well as Chevy Cruze and Malibu models, at designated Hertz On Demand locations.
Hertz On Demand is in a dozen U.S. cities as well as the United Kingdom, France, Spain and Germany.
Scoot
This startup charges $10 to join and $5 per month, plus $5 per hour to rent two-wheeled electric scooters, complete with helmets.
The service is available only in San Francisco and environs, and the scooters are only suitable for single passengers traveling at less than highway speed.
Breaking Down the Cost
The average adult spends just under an hour driving daily, according to the U.S. Bureau of Transportation Statistics.
Based on average short-term rates of about $12 hourly, the typical adult driver could spend $4,380 per year on short-term rentals, which is less than half ! the cost of owning a car, while still driving the same amount.
Hourly car renters sacrifice some convenience and still must pay for parking tickets, lost membership cards and other incidentals.
But, for people who live where short-term rentals are available, drive the average amount or less, and don’t need a car at their beck and call, short-term rentals appear to offer an inexpensive way to get around.
DON’T MISS: The 10 most dangerous states for drivers >
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No Netflix for You! Come Back, Never! [NetFlix]
Source: http://gizmodo.com/5892105/comcast-no-netflix-for-you-come-back-never
Comcast has issued a strongly-worded statement clarifying its position in those discussions Netflix was rumored to be engaging in earlier this week: not us, not our devices, not ever.
In Tuesday’s reports, Netflix hinted that at least one provider was willing to trial it by year’s end. Comcast would like everybody know that it isn’t them. “We have no plans to offer access to Netflix to our customers through our Xfinity TV service, no matter what device,” Comcast spokeswoman Alana Davis told FierceCable.
Instead, Comcast is exploring the possibility of allowing access to its On-Demand library through TiVo Premiere DVR’s
The provider has also developed its own video subscription service called Steampix. It’s designed to compete head to head with Netflix—allowing Xfinity subscribers to access TV series and movies wirelessly and remotely—but includes the conventional bits of flair we’ve come to expect from cable like an bundled channels. Because who doesn’t want to pay through the nose for content they don’t watch? [Fierce Cable via BGR]
No Netflix for You! Come Back, Never! [NetFlix]
Source: http://gizmodo.com/5892105/comcast-no-netflix-for-you-come-back-never
Comcast has issued a strongly-worded statement clarifying its position in those discussions Netflix was rumored to be engaging in earlier this week: not us, not our devices, not ever.
In Tuesday’s reports, Netflix hinted that at least one provider was willing to trial it by year’s end. Comcast would like everybody know that it isn’t them. “We have no plans to offer access to Netflix to our customers through our Xfinity TV service, no matter what device,” Comcast spokeswoman Alana Davis told FierceCable.
Instead, Comcast is exploring the possibility of allowing access to its On-Demand library through TiVo Premiere DVR’s
The provider has also developed its own video subscription service called Steampix. It’s designed to compete head to head with Netflix—allowing Xfinity subscribers to access TV series and movies wirelessly and remotely—but includes the conventional bits of flair we’ve come to expect from cable like an bundled channels. Because who doesn’t want to pay through the nose for content they don’t watch? [Fierce Cable via BGR]
CPM (cost per thousand) compression YOY
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2009 to
2010
|
2010 to
2011
|
||||||||||||||||
|
|
Year ended December 31,
|
%
Change
|
%
Change
|
||||||||||||||
|
|
2009
|
2010
|
2011
|
||||||||||||||
|
Content & Media Metrics (1)
|
|
|
|
|
|
||||||||||||
|
Owned & operated
|
|
|
|
|
|
||||||||||||
|
Page views (in millions)
|
6,849
|
|
8,234
|
|
10,378
|
|
20
|
%
|
26
|
%
|
|||||||
|
RPM
|
$
|
10.69
|
|
$
|
13.45
|
|
$
|
15.14
|
|
26
|
%
|
13
|
%
|
||||
|
Network of customer websites
|
|
|
|
|
|||||||||||||
|
Page views (in millions)
|
10,009
|
|
13,155
|
|
17,436
|
|
31
|
%
|
33
|
%
|
|||||||
|
RPM
|
$
|
3.45
|
|
$
|
3.20
|
|
$
|
2.77
|
|
(7
|
)%
|
(13
|
)%
|
||||
|
RPM ex-TAC
|
$
|
2.39
|
|
$
|
2.28
|
|
$
|
2.06
|
|
(5
|
)%
|
(10
|
)%
|
||||
Young Women Are The Most Valuable Mobile Ad Demographic
Source: http://www.businessinsider.com/young-women-are-most-valuable-mobile-ad-demographic-2012-2
Business Insider Intelligence is a new research and analysis service for real-time insight and intelligence about the Internet industry. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.
Data is starting to trickle in and shape our understanding of the nascent mobile ad market. According to data from Flurry Analytics, 25- to 34-year-old females are the most valuable demographic for advertisers and publishers (as measured by the underlying click-through and conversion rates).
This is not surprising: Young people have adopted smartphones at a much higher rate than their parents. However, mobile CPMs will eventually even out as penetration picks up amongst older age groups. Furthermore, women should be more valuable because they historically have controlled household expenses and there is some evidence that they use smartphones more than men while shopping.
Finally, the eCPMs strike us as pretty high—even as smartphone usage has exploded, demand seems to have held up.
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See Also:
- Smartphone Sales Will Reach Nearly 1.6 Billion Units By 2016
- Here’s What Retail Customers Are Actually Doing With Their Smartphones
- Online Video Advertising Takes Off
Redbox, Not Netflix, Is The Nation’s Largest DVD-Renter (NFLX, DISH, CSTR)
From 2010 to 2011, Redbox’s percentage of the physical-disc rental market increased from 25% to 37%, according to market research firm NPD Group. (via Deadline)
Meanwhile, Netflix’s share stayed flat, despite the Qwikster debacle and Reed Hastings’ statement that DVD-by-mail subscribers will decrease steadily from here on out. Brick-and-mortar stores like Blockbuster lost 7%. And video on demand continues to increase in popularity, now accounting for 31% of all rentals.
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11 Facts About The World’s Changing Appetite For Luxury Watches
Source: http://www.businessinsider.com/luxury-watches-global-market-2012-1
Luxury watches are not just functional wristwear–they’re works of art with hundreds of years of technology packed inside.
Consumers’ tastes and shopping preferences for watches are evolving around the globe.
Market research company Digital Luxury Group has just released its annual report on the worldwide market for high-end watches, looking at 15 of the world’s biggest haute timepiece brands ahead of Baselworld, the upcoming international watch and jewelry show in Switzerland.
The report is based on more than a billion consumer searches for luxury watches on search engines including Google, Bing and Baidu.
For the first time in 2011, demand for luxury watches was higher in the US than in China, based on internet search market share.
Within China, more than half of demand for luxury timepieces comes from first- and second-tier coastal cities with high-end shopping streets, like Beijing and Shanghai.
Heritage brands like Patek Philippe and Vacheron Constantin are more popular with traditional clients from Beijing, while IWC attracts a younger, trendier, urban audience.
Source: Digital Luxury Group
See the rest of the story at Business Insider
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See Also:
- A Chinese Government Worker’s Wild Macau Shopping Spree Causes On Uproar Online
- A Yellow Diamond That Was Part Of A $20 Million Heist Resurfaces In A Hong Kong Pawn Shop
- Dolce & Gabbana Officially Apologizes To Hong Kong For That Photo-Banning Incident
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One Of The Most Impressive Cases Of Efficiency Growth We’ve Ever Seen
Airlines don’t deserve credit for much — they’re notoriously loss-making, bankruptcy-prone, and customer-aggravating.
But with oil prices elevated for much of the past decade, they have done a great job battling the need for more fuel.
The below chart shows the massive divergence over the past decade between traffic growth (as measured by passenger miles) and jet fuel demand.
Says Barclays
According to Airbus and CERA, although cumulative growth in air traffic has totaled roughly 45% since 2000, fuel consumed by the global fleet of aircraft is up less than 5% over the same period, as airlines have accelerated aircraft parking/retirements of older airplane models and ordered newer more efficient replacements at a record pace. Greater efficiency (i.e. load factors) and fleet renewal are at the heart of an airline’s competitiveness in a world where fuel is now an airline’s largest single operating cost; this became the case mid-last-decade for the first time since the late 1970’s US deregulation.
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See Also:
- CHART OF THE DAY: The Skyscraper Index
- CHART OF THE DAY: This Worrying Demographic Trend Is Bad News For Consumer Spending
- CHART OF THE DAY: Why America Should Love Its Exploding Trade Deficit
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Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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