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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

Burberry Milan Fashion Week Menswear Fall Winter 2012 2013 Collection Runway

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.

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Monday, December 10th, 2012 news No Comments

2.7 Billion Likes, 300 Million Photos Uploaded and 500 Terabytes of Data [Factoid]

Source: http://feeds.gawker.com/~r/gizmodo/vip/~3/WmLHYVUWhPU/what-facebook-deals-with-everyday-27-billion-likes-300-million-photos-uploaded-and-500-terabytes-of-data

What Facebook Deals with Everyday: 2.7 Billion Likes, 300 Million Photos Uploaded and 500 Terabytes of DataIf you were ever curious to how many photos get uploaded to Facebook everyday or how many likes happen across the entire social network or the sheer size of data booking the face is responsible for, look no further. Facebook gave a state of the union (of sorts) that detailed just how big Facebook data is.

Here’s the enormous breakdown that’s so big my head doesn’t understand the sheer size:

  • 2.5 billion content items shared
  • 2.7 billion Likes
  • 300 million photos uploaded
  • 500+ terabyte data ingested
  • What Facebook Deals with Everyday: 2.7 Billion Likes, 300 Million Photos Uploaded and 500 Terabytes of DataRoughly broken down into indivudal Facebook users, the numbers translate to a little under 3 Facebook likes a day and one picture uploaded every 3 days per Facebooker. But how come Facebook didn’t let us know how many time people get poked! Or how many pictures get pulled because of complaints? What about people tagged in photos? I want to know more. I want to know everything! [CNET]

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Thursday, August 23rd, 2012 news No Comments

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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