Landor's Trends Forecast 2009

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Landor's Trends Forecast 2009 Landor’s trends forecast 2009 2 Trends Landor’s 2009 2009 trends forecast Market trends and their impact on brands The troubled economy is on everyone’s And let’s not forget China. The 2008 Beijing Trevor Wade is director of digital marketing minds these days. It’s affecting companies Olympics brought China squarely into the interna- for Landor Associates and editor of Landor’s and consumers around the globe—and, by tional spotlight, and there’s no going back. What trends forecast. Her most recent article, extension, brands. How will brands fare next does this mean for post-Olympic China? We think “Satisfying consumers’ desire for green,” year? Which will stand strong? Which will fail? Chinese brands will expand more successfully is available on Landor.com. And how will this impact our lives? Will we into foreign markets, and Chinese consumers will eat healthier foods, travel to India for medical proudly choose domestic brands over global ones. © 2008 Landor Associates. All rights reserved. treatment, choose more sustainable products? The competition is on. To find out, we interviewed 12 of Landor’s experts on topics from consumer spending No one can predict the future, but 2009 is likely to to real estate development in Dubai. be an eventful year in many ways. Here are a few of the trends we expect to see. In the financial services sector we found, surprisingly, that most brands fared far better than • Allen Adamson on digital media their respective stock prices would indicate. The • Monica Au on post-Olympic China challenge for financial institutions will be to regain • Olivier Auroy on real estate development in Dubai customer trust and focus on the basics of banking. • Mich Bergesen on financial services • Martin Bishop on mergers and acquisitions Digital media will be a major asset for firms looking • Richard Brandt and Patricia Verdolino on to cut costs or build relationships with consumers, product and package design and we’ll see more companies investing in it. The • Luke Mansfield on technology campaign run by America’s newly elected president, • Russ Meyer on sustainability Barack Obama, provided a model for the effective • Susan Nelson on consumer spending use of digital media in building and engaging an • Lulu Raghavan on tourism in India action-oriented community. • Luc Speisser on healthy eating 3 Allen Adamson Trends on trends in digital media 2009 If there’s any doubt in your mind that digital Second, smart brands will use word of mouth to Allen Adamson is managing director of the technology is critical to brand building, just their advantage. Viral marketing, whether planned New York office of Landor Associates. He is look at Barack Obama’s campaign. The new or spontaneous, is an efficient, powerful way to get the author of two books, BrandDigital: Simple president-elect used the web to engage the the message out. There will be a renewed emphasis Ways Top Brands Succeed in the Digital World electorate and reach audiences where they on creativity and the recognition that ingenuity and BrandSimple: How the Best Brands Keep were hanging out, whether on social media trumps budget. Consumer engagement and It Simple and Succeed. Additionally, he writes pages or Twitter, and so lowered the cost of collaboration will be critical, as will the ability a blog at brandsimple.com/blog. building a brand. If 2008 saw an increase in to create immersive, sharable experiences. the time and effort brands spent on digital technology, 2009 levels will be sky-high Lastly, smart brands will play to win. Search by comparison. tools—the primary means of moving consumers into the buying cycle—will become increasingly sophisticated. As digital mobility accelerates, the What can we expect to see phone screen will become the “first” screen. The Internet will go everywhere, and the on-demand in 2009? world will be ubiquitous. Digital as a way to operate more efficiently Stormy economic conditions are likely to prevail well into next year and beyond. Smart organizations Which brands will stand out looking to pare budgets will use digital tools to increase productivity and cement customer loyalty. in 2009? Sophisticated data collection tools will allow precise Look for Google, Blyk, Skype, and Flickr to continue targeting and more relevant messaging, creating delivering services that make life more convenient. better return for marketing spend. Customers’ Dell has made excellent use of online applications ability to communicate and collaborate with to get consumer input about its products prior to brand representatives via review sites, industry launch. Nike and Apple will continue to lead in the chat pages, and social media will enhance digital co-branding arena, as will Netflix and TiVo. word-of-mouth marketing. Ikea’s immersive online shopping experiences will contribute to its growth as a smart-value player. Survival of the fittest will intensify Procter & Gamble, Johnson & Johnson, and We will see an increase in the consolidation of Ameriprise will remain leaders in integrated players and in co-branding initiatives. The competi- marketing. tion to engage consumers has never been keener. Brands that can deliver tangible benefits, either I also believe Barack Obama will continue using alone or with a partner, will survive. Organizations digital technology to monitor public attitudes, that can successfully deploy digital technology ask for feedback, and get people engaged in the to differentiate their offerings will be able to cut legislative process. spending. Digital budgets will increase to the detriment of traditional media. What are the implications of these trends for brands? Smart organizations will focus on three things in the coming year. First, their story line: creating relevant dialogue with consumers and providing platforms for consumer expression. Brands will need to become more creative and provide rich content, and they will have to deliver truthfully and consistently on their promises. 4 Monica Au Trends on trends in post-Olympic China 2009 What can we expect to see From imitation to innovation Monica Au is managing director of the The most significant leap forward will be the Hong Kong office of Landor Associates. in 2009? transition from imitation to innovation as Chinese Her article, “The next billion-dollar business: International limelight brands focus on research and development. Huawei A bright outlook for consumer brands in China must maintain the momentum and goodwill Technologies devotes more than 10 percent of its China’s new markets,” is available on generated by the 2008 Beijing Olympic Games. The revenue to R&D, twice the international norm. Haier landor.com. next major international event on Chinese soil will is establishing innovation teams in Japan and the be the 2010 World Expo. Shanghai, the host city, United States to create upmarket products. and other local governments are eager to outdo each other, relentlessly investing in infrastructure Choosing Chinese and architecture to signal progress and moderniza- With growing confidence in their nation, affluent tion to the outside world. Chinese will take pride in smoking Chunghwa cigarettes, drinking Tsingtao beer, wearing Li Ning Marketing flurry for the 2010 World Expo athletic apparel, and equipping their homes with Expect a deluge of marketing activity leading up TCL and Midea appliances. Choosing Chinese will to the Expo. Local and global brands will seize be regarded as an expression of good taste and the opportunity to boost their reputations among self-esteem. Reputable local brands will build international audiences. The Expo’s sponsors, distinctiveness in their own backyards and including usual suspects Coca-Cola and China challenge the more expensive global brands Mobile, will be spending big on advertising, and in the Chinese market. ambush marketers are sure to have something good up their sleeves. Which brands will stand out Emphasis on quality The global financial downturn will inevitably reduce in 2009? China’s exports. After years of double-digit growth, The obvious choices are Haier, Lenovo, Ping An this may be a good time for Chinese brands to slow Insurance, and Li Ning. down and think seriously about the future. In hard times, people buy less but better; quality rules. To China’s huge domestic economy provides the most combat recent negative publicity from toxic toys promising market on earth, but it is also the most and contaminated food, China will have to enforce competitive and punishing. Behind the excitement more stringent quality standards and health and of emerging world-class Chinese brands looms the safety laws. big question of their staying power. Most Chinese companies, engaged in an eternal price war, do not fully grasp the significance of branding. What are the implications of It took 20 years for Samsung and Hyundai to these trends for brands? become household names. Just give China Chinese brands go global a little more time. Chinese brands are eager to stake their claim on international turf. Haier and Lenovo will continue to strengthen their global presence through effective marketing. Newcomers will follow Chery and Geely Auto in using Russia and the Middle East as a launchpad for overseas expansion. Expect Chinese brands to debut at international car shows, trade fairs, and fashion weeks. 5 Olivier Auroy Trends on real estate development trends 2009 in Dubai What can we expect to see We may also see increased co-branding of real Olivier Auroy is general manager of the estate. Alternative Capital Invest recently linked Dubai office of Landor Associates. His article, in 2009? its branded towers to tennis star Boris Becker and “Sand castles: The challenges of real estate For years we in Dubai have heard, “Build, and they race driver Niki Lauda, while Trident International branding in the Middle East,” was published will come.” Holdings’ Pentominium will feature suites designed in Gulf Marketing Review in November 2007.
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