Two major trends stood out at this year’s South by Southwest, Engagement and Relevance and here’s the lowdown on how they will impact brands in 2015.
1 - Engagement, the new storytelling
More than ever, fashion at SXSW is in search of meaning. Style and lifestyle no longer suffice. Brands arise that operate from the belief that fashion is more than representation. The increasingly dominant generation of millennials does not only consist of customers, but also brings forward designers and marketeers, and they are developing a new breed of brands.
The same language
These new brands are associated with concepts such as sustainability, self-expression and mindfulness. Entirely in accordance with the worldview of millennials this is a natural belief that goes without saying. This engagement doesn't need to be emphasised all the time.
Look at the luxury brand Maiyet, Founder and creative director Kristy Caylor seemingly effortlessly combines a distinct style with traditional elements, sustainable sourcing and collaboration with craftsmanship from countries like India, Indonesia and Kenya. "Buying a two thousand dollar handbag is always about self indulgence." she says. "We don't have to wave a flag on sustainability. Millennials are getting it."
The previous generation, Generation X, thinks in extremes and sees no credible middle ground between charity or sustainability on the one hand and commerciality on the other. The millennial is much more agile and expects brands to be very commercial and intrinsically socially engaged at the same time.
Less for more
In the wider market this movement of awareness is also visible. In the middle and high fashion segments in the US, a slight decrease in the sales numbers is being reported (1% was mentioned), but people actually spent more (reportedly 5%). Established luxury brands play into this by creating more understated designs and marketing. They are forced to go back to their roots of craftsmanship and eye for detail, conveying their real value much better. Think back to the decision of Louis Vuitton to largely ban the famous monogram from their products.
From the heart
Even mainstream brands are slowly moving along, take high street favourite H&M's 7 commitments (such as care for fashion conscious customers and selecting and rewarding responsible partners) begin to be credible and contribute to the already strong reasons to buying at H&M.
To be clear, we're not talking about an assumed identity. This conviction comes from within. As the next example, take Cuyana [http://www.cuyana.com/], a young brand from San Francisco. Founder Karla Gallardo explains that their motto is 'Fewer, better items' and that they recently started the 'Lean closet movement'. Customers who choose 'lean shipping' at checkout receive a reusable bag that they can fill up with items that they don't wear so much anymore. The items are sent to non-profit partners who make sure that the garments are delivered to people who really need them. The philosophy of Cuyana is about awareness and promotes, as they call it, intentional buying.
2 Creating relevance: right place, right time, the right message
Consumers in 2015 aren't either click or brick. They're all over the place. They wake up with their smartphone (60% of Americans pick up their phone literally as the first thing they do every day) and they go to bed with it. From their laptop, they ‘like’ one of your posts on Facebook, to their afternoon of shopping in town before crashing on their couch in the evening with their tablet (30%). And when they're in your bricks & mortar store they order your products using their phone (over 10%!). Because: why would you go stand in a long line at the checkout if you can order online immediately?
The word loyalty is hardly known by consumers these days. Confidence boosts the urge to discover and everything is just a click away. Google provides extreme transparency that even the luxury brands have to cope with. Customers want to buy quickly, easily and where and when it suits them.
How do you deal with that as a brand? How do you attract attention? A frequently heard solution at SXSW is personalisation: providing targeted content in the right place at the right time. Relevance, panelists say, is the only way to stand out for your busy customers.
Who, what, where
Big Data - knowing what your customers do, where they are, what they want - was a hot topic during SXSW this year. Big names such as ASOS, Topshop, Birchbox, Lincoln, etc. use the term. But it's not entirely clear what brands are just flirting with the concept, and who is seriously doing good business with it.
But knowing what customers do, where they are, what they want is just the start.
The brands that stand out, offer more than this, using inspirational content to reach customers on a personal level and provide an experience (check out the launch of Lincoln in China).
2015 will see the death of the segregated channels. A sale is a sale. Everyone in your organization has to contribute to it, no matter where and how that sale is made. In 2020, 80 percent of the world's population will own a smartphone that is always online. New marketing will be commonplace: Big Data will have become BD, Internet of Things will be known as IOT. We'll go from 'bricks and mortar' to 'bricks and mobile'. Offline retail? That will cease to exist.
Guestpost by Louise Roose and Pieter Jongerius, Fabrique