Category: consumer behaviour | 消費者行為 | 소비자 행동

Consumer behaviour is central to my role as an account planner and about how I look at the world.

Being from an Irish household growing up in the North West of England, everything was alien. I felt that I was interloping observer who was eternally curious.

The same traits stand today, I just get paid for them. Consumer behaviour and its interactions with the environment and societal structures are fascinating to me.

The hive mind of Wikipedia defines it as

‘the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services.’

It is considered to consist of how the consumer’s emotions, attitudes and preferences affect buying behaviour. Consumer behaviour emerged in the 1940–1950s as a distinct sub-discipline of marketing, but has become an interdisciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, marketing and economics (especially behavioural economics or nudge theory as its often known).

I tend to store a mix of third party insights and links to research papers here. If you were to read one thing on this blog about consumer behaviour, I would recommend this post I wrote on generations. This points out different ways that consumer behaviour can be misattributed, missed or misinterpreted.

Often the devil is in the context, which goes back to the wide ranging nature of this blog hinted at by the ‘renaissance’ in renaissance chambara. Back then I knew that I needed to have wide interests but hadn’t worked on defining the ‘why’ of having spread such a wide net in terms of subject matter.

  • Sohu returns + more news

    Can Chinese internet pioneer Sohu finally pull off a comeback after missing the mobile era? | SCMP.com – Sohu making a comeback has interesting parallels with Yahoo! in the west, but without the incompetent board and Carl Icahn. I suspect that the rejuvenation of Sohu will be a fruitless task as the internet doesn’t give second chances

    Anti-China Bonds Between Hong Kong and Taiwan Are Growing – The AtlanticThe year was 1984: China was in the early days of its economic rise and was experiencing one of its most politically free periods under Communist rule; Hong Kong was the booming financial hub and crown jewel of what remained of the British Empire; and then there was Taiwan, which was nearing the end of nearly four decades of brutal martial law. At the time, if you had wagered on which of those places would be the freest 35 years later, Taiwan would have had long odds…

    Huawei, the CSSA and beyond: “Latent networks” and Party influence within Chinese institutions – Asia Dialogue – well worth reading. It’s worthwhile treating United Front organisations and organisations like the CSSA as enemy agents. Not that all the members are hellbent on destruction of the west; but the Chinese government wields them in a similar way to the Soviet Union using trade unions and protest groups in the past

    WSJ City | Huawei dispute US cyber firms findings of flaws in its gear – but the findings mirror similar issues found by GCHQ that Huawei said could take years to correct

    Is Apple dead creatively? Campaign – I couldn’t have imagined Campaign asking this question even five years ago

    Mark Ritson: 5G is the latest hot topic on the bullsh*t roadshow | Marketing Week – yep that sounds about right (paywall)

    Music on the Move: Sony’s Walkman Turns 40 | Nippon.com – wonderful walk through Sony’s product history and cultural impact. More Sony related content here.

  • Flickr best social network experience + more

    Flickr best social network experience going / Boing Boing – I believe that flickr best social network experience at present, but I am not blind to the communities flaws

    An Oral History of Oakleys, the Most Badass Sunglasses of the 1990s | MEL Magazine – or how Luxottica made a great brand merely good. More related content here.

    The Ad Contrarian: The Stupidity Of Ignoring Older People | Ad Contrarian – interesting, it used to be that half the lifetime spend was done before the age of 35. Given that most marketing is short term programmes marketing to older people as well makes sense

    China Counterfeiters’ Hot Product in 2019? Peppa Pig Couture | Jing Daily – interesting China’s fake clothing people have been cranking out snide Peppa Pig wear; including dreaming up Burberry, Chanel, Louis Vuitton, Off-White and Givenchy collaborations that haven’t happened! It’s wonderful and subversive at the same time

    They welcomed a robot into their family, now they’re mourning its death – The VergeWilliams understands that companies have bottom lines and that gadgets come and go, but Jibo was also designed to appeal to children, and those kids are now learning what it means to own a robot and have no control over its fate – pretty dark stuff. It sounds like the product succeeded with customers but was too pricey for what was required – A couple of things here; it wasn’t that long ago that we thought Japanese people were odd for having Shinto funeral ceremonies for their dead Aibos. Now we see similar behaviour playing out for Jibo. Secondly, unlike the first Aibo, Jibo is essentially a cloud personality, which begs the question when’s the move towards device based AI etc coming back as seeing your kids cry is too much?

    Dolce & Gabbana’s Expanded Sizing “Proves They’re Really about Selling Clothing,” Not Just Leveraging it — The Fashion LawDolce & Gabbana has announced that it will increase its sizing to include garments that will range up to size 54 in Italy, the approximate equivalent of a stateside size 18? You bet it is. The move by the Milan-based brand to extend its sizing – which went into force with its currently available pre-fall collection – “makes it one of the most inclusive designer brands for women,” according to The Independent’s Olivia Petter, a far cry from most high fashion brands, which Fashionista’s deputy editor Tyler McCall says “stop much closer to a size 10 [or] below that even.” – I think its a smart move given their problems in China

    The crisis in creative effectiveness | WARCThere has been a serious declining trend in the effectiveness of creatively awarded campaigns over the last ten years. The most recent IPA/WARC Rankings data, explored in the new Crisis of Creative Effectiveness report, confirms this continuing decline; creatively awarded campaigns are now less effective than they have ever been in the entire 24-year run of data and are now no more effective than non-awarded campaigns. We have arrived in an era where award-winning creativity typically brings little or no effectiveness advantage.

    Top 1000 Brands | Intelligence | Campaign Asia – for China

    Study Shows Big Rise in Teen Vaping This Year – The New York Times and Juul faces House investigation over teen e-cigarette use – this is going to get regulated sooner rather than later and the whole Philip Morris International ‘dialogue’ campaign is going to leave some creative agencies holding the reputation equivalent of a live hand grenade

  • Digital Rx + more things

    Digital Rx – JWT Intelligence – Digital Rx covers a wide range of services from telemedicine to AI mediated diagnosis and everything in between. Pharmaceutical companies are looking a digital companion app functionality to help keep patient adherence high. I only hope that they’re not as much of a car crash as the first lot of apps like Babylon Health

    China’s new creatives – JWT IntelligenceThis new wave of consumers recognizes China’s rising economic status and thus possesses an acute sense of national pride; no longer are they reliant on Western fashion brands and influence to define how they express themselves as individuals. Yet the world is small, and despite crackdowns on international cultural imports like hip-hop and K-pop, there are echoes in China of what defines Gen Z tastes abroad in the streetwear, beauty, art, luxury and online landscapes. This is channeled through a powerful new creative lens

    High-art airports – JWT Intelligence – air travel need to lift its image after the TSA experience post 9/11 and discount airlines dragged it into the gutter

    Making Connections: 53 Teenagers Suggest Creative Ways to Link School Curriculum to the World of 2019 – The New York Times – great reading (paywall)

    Empire.Kred | Grow your Social Audience – gaming Facebook likes to drive engagement numbers. Not great for marketers but might benefit media companies on Facebook in terms of impact on reach

    Disgraced Korean Air Heiress Regains Executive Job – The Chosun Ilbo (English Edition): Daily News from Korea – Business > Business – surprised that they’ve pushed this through so fast

    Japan’s Hometown Tax | Kalzumeus Software – one of the best examples of cultural insight led marketing campaigns

    Agencies must redress decoupling damage | WARC – creative opportunities are lost without media thinking and media thinking needs to incorporate context that is so important for creative. Media also needs to fix basic hygiene issues

    Code Red | Logic Magazine – the nature of Chinese innovation versus US innovation

  • Bullet time + more things

    Bullet Time – Logic Magazine – Bullet comments, or 弹幕 (“danmu”), are text-based user reactions superimposed onto online videos: a visual commentary track to which anyone can contribute. Started in Japan, but popularised massively in China. When a beloved character dies in a web series, a river of grieving kaomoji (╥﹏╥)—a kind of emoticon first popularized in Japan — washes over whatever happens next. The bullet time interface reminded me of the realtime information one would see in things like trading desks. Its an emotional barometer amongst your people for real time content.

    Mark Ritson: Binet and Field aren’t perfect but it doesn’t make them wrong | Marketing Week – well deserved defence of Les Binet and Peter Field by Mark Ritson. Models are never perfect

    Why Strangers Are AirDropping You Memes and Photos – The Atlantic – everything old is new again as Bluetooth sharing ‘Bluetoothing’ gets a refresh. Taylor Herring used this to share a job advert at the recent PR Week Awards

    Does the UK Benefit From Chinese Investment? – Carnegie Endowment for International Peace – short answer no – it’s actually harmed by it as investment is power projection and compromises the UK’s strategic capability

    Mark Read: CMOs have become too much like chief communications officers | PR WeekA lot of CMOs have become too much chief communications officers, not chief marketing officers,” Read said. “Our job is to help to put the ‘market’ back into the word ‘marketing’. “Communications has an important role, but it needs to be “the right element” within the wider marketing mix, according to Read: “Marketing means: what markets are we in? What products do we offer? What prices do we do? How do we understand and anticipate consumers?”

    Despite Fears, Aviation’s Future Will Be More Automated | Time – so why the move towards more automation in cars such a good idea based on what we know about airliners from this article?

    The Hottest Chat App for Teens Is Google Docs – The Atlantic – context specific

    WalktheChat | WeChat Live Streaming Case Study: 48% Sales Conversion Rate! – really interesting read. China’s mix of live-streaming and e-tailing is shopping TV for the 21st century

  • Beauty trends

    Beauty trends is a bit tricky – there are generational and cultural aspects to beauty and standards. I’ve tried to tease out elements that will ripple around the world.

    Digital Beauty

    Chinese women use Meitu and other beauty apps to present the best versions of themselves with a virtual makeover. This goes from skin quality, skin tone and make-up to a full virtual plastic surgery style makeover.

    Meitu has 63 apps and 2 mobile websites as it expands internationally.

    Meitu beauty cam

    Meitu has collaborated with over 100 make-up brands including L’Oreal, Guerlain, Lancôme, Estée Lauder, and Shiseido.

    Meitu is only the tip of the spear. Smartphone manufacturer Huawei has provided a simple beauty mode in its default camera app. Chinese video streaming software provides a similar functionality for performers. Even Skype had trialed a digital make-up service in association with Shiseido.

    Authenticity

    There is a tension between the trends in authenticity and some of the developments that we’ve seen in beauty.

    On the one hand there are the clean and effortless beauty movements that taped into a wider consumer trend around natural.

    On the other hand you have the Korean ten-step beauty process popularised over the last decade and digital beauty apps – particularly from China and Korea.

    In the case of digital beauty and instagram filters critics claim that a new form of dysmorphia seems to be emerging. Its the difference between what they see in the mirror and on their smartphones.

    That dysmorphia is one of the things that has driven a move towards authenticity. In the West, wider moves around everything from trans rights to the body positive movement has redefined what make-up does.

    Punk

    Whilst most people think of punk and associate it with tourists taking pictures in Camden, the Sex Pistols and Vivienne Westwood. But the biggest impact of punk was the rise of independent media from fanzines to record labels. We’re seeing a similar DIY approach in the beauty industry. Big beauty companies are being challenged by independent companies with a narrow or even singular product focus. There are a number of perceived advantages to these independent brands:

    • Perception that niche brands spend less on advertising and more on research and development; these products can be considered more specialised and effective
    • Niche beauty brands can have greater social currency in terms of being an element of self expression and part of friend-to-friend recommendations

    In China, you see a greater interest in these independent niche brands from men than female consumers.

    Diversity

    Traditionally make-up has been an additive process to conceal and cover up blemishes, flaws and signs of ageing. Modern make up is about celebrating quirks and even flaws. This goes beyond beauty spots to female baldness and skin conditions. Effortless make-up is often an artfully constructed look where the person rolled straight out of bed.

    Beauty from the inside

    Beauty from the inside has a mix of socio-cultural aspects to it. In China it includes focusing on quality sleep to reflect in beauty regimes. The key thing for most brands is the ingestion of ingredients. Where are the lines drawn between make-up and the health-like claims of functional foods? Could we see licensed pharmaceutical products as cosmetic aids like currently happens in China? Here’s that the Hong Kong Trade and Development had to say about ‘cosmeceuticals’ in their report on China’s Cosmetics Market:

    Cosmeceuticals, especially Chinese herbal cosmetics, are opening up a new territory in the cosmetics market. It is understood that more than 170 enterprises have tapped into China’s cosmeceuticals market to date, many of them renowned pharmaceutical companies in China, such as Tongrentang and Yunnan Baiyao. Cosmeceuticals only have a market share of about 20% in the mainland at present. In Europe, the US and Japan, cosmeceuticals have a 50-60% share. It is believed that China’s cosmeceuticals market has much room for development. As young consumers begin to concern themselves with the ingredients and quality of products, consumption of cosmeceuticals tends to start at increasingly early ages. While cosmeceuticals have medical properties, they are classified as cosmetics since there is still no official definition for the term ‘cosmeceuticals’ on the mainland.

    China’s Cosmetics Market – HKTDC Research

    Natural

    Natural has affected the food industry and this has extended to beauty trends Younger consumers are interested in products that don’t contain ingredients that sound synthetic. The lack of artificial ingredients a key selling point. Instead they expect natural and botanical ingredients.

    A natural output of this trend has been a rise in home manufactured cosmetics supported by an eco-system of how-to videos on YouTube.

    Ageing

    The population of the developed world in both the west and east is aging. This means that gen-y and gen-z obsessed beauty marketers are having to adapt to an ageing audience. They have the disposable income and the demand for beauty products.

    Brands are adapting their

    • Products and formulations
    • Packaging
    • Language – you know longer see ‘anti-aging’ used on many product descriptors, despite that being essentially what the products ‘do’

    More information

    Digital Watch: How Chinese Millennials & Gen Zers are Re-connecting with Their Elders | Jing Daily

    App Annie data on Meitu

    Shiseido’s New “TeleBeauty” App , A Virtual Makeup Solution for Online Meetings | Shiseido News Releases

    China’s selfie obsession | The New Yorker

    China’s Cosmetics Market – HKTDC Research

    92% of Chinese males prefer niche beauty brands: report | Campaign Asia

    The future of skincare – Spencer Schrage, Ogilvy Consulting