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What´s in store for 2012?


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Las facilidades que da Internet a la hora de adquirir productos de todo tipo hace que sean muchos los retailers que se replanteen la función de la tienda física en el futuro. En el informe What’s in …

Las facilidades que da Internet a la hora de adquirir productos de todo tipo hace que sean muchos los retailers que se replanteen la función de la tienda física en el futuro. En el informe What’s in store 2012? Interbrand destaca lo que los retailers pueden hacer para que sus establecimientos no queden obsoletos frente a una tecnología que cada día ocupa más espacio en la vida de cualquier persona.

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  • 1. What’s in storefor 2012?Creating and managingbrand value TM
  • 2. Interbrand | Pg. 2What’s in store for 2012?Airlines attributed to innovative business models, into more choice for customers, and morePoised to build deeper relationships with good growth and trade links within Latin brands from which to choose.consumers via mobile technology and America, the U.S. and Asia Pacific. Going green will remain an importantsocial networks In the U.S., the airline industry is down 41% initiative as airlines face stricter emissionBy Stuart Green from last year as shares of 15 major airlines and noise regulations – and as governmentsHigh oil prices (again), natural disasters in dropped by almost 10%. American Airlines around the world become more concernedJapan, political unrest in the Middle East was the worst hit, with shares plummeting with the implications of air travel to theand North Africa, price sensitivity, and low in reaction to its recent filing for Chapter global ecosystem. Australia was one ofaircraft utilization in the U.S. and Europe. 11 bankruptcy. Factors contributing to the the first countries to implement a carbonAgainst a backdrop of an estimated 78% distressed industry within this region include emissions tax, and the EU plans to followdecline in 2011 profits versus those in 2010, a slowing economy, high fuel and ticketing suit with a similar program in 2012.there appears to be a few bright spots for the prices, old and less fuel-efficient aircraft, as Digital platforms will become the normairlines industry in 2012. well as low demand for travel to and from the as airlines across the globe use mobile lucrative Japanese market.The Asia Pacific carriers are expected to be applications and social media to advertise,the most profitable, even though profits will The sovereign debt crisis, increased taxes engage consumers, build customerhave declined from a year ago. The region on passengers, and a price-sensitive market databases, and sell travel deals/fares.continues to experience a boom in aviation made for a challenging 2011 for the European Increasingly, IT budgets will be spent ondue to rapid economic expansion in China airline industry. It is expected that profits will mobile solutions as airlines seek to takeand India. It is estimated that, within 20 be just $500 million, down from $1.9 billion advantage of convergences between mobileyears, one-third of all air traffic will be from in 2010, with most of the year’s profit coming technology and social networks to fosterAsia Pacific. This sharp increase will stem from more resilient long-haul markets. deeper and more responsive interactionfrom the sheer size of the emerging middle with customers. Continuing trendsclasses in this region. India, for example, Rising fuel prices remain one of the majorexperienced an increase from 11.7 million in challenges facing the industry. Globally,2003 to 51.6 million air passengers in 2010. Automotive airlines are struggling to cope, and areIn general, growth and development is taking Slower growth, but renewed vigor and generally unable to pass these costsplace on all fronts across Asia, from legacy innovative technologies onto the consumer, especially in price-carriers to low cost carriers, and there is even By Michel Gabriel sensitive markets. Fuel now accounts formedia buzz about the emergence of “pure approximately 30% of an airline’s cost base. Growth, stagnation, or stabilization—howpremium” carriers. On a more positive note, this trend is helping will the auto industry evolve in 2012? TheIn the Middle East, Dubai has aggressive to impel the airline manufacturers to create unabated global demand for cars speaks inplans to host the largest airport in the more fuel-efficient aircrafts. favor of stabilization. In 2011, 65.4 millionworld. Airlines in the United Arab Emirates vehicles were sold worldwide, and that Demanding customers have more and morehave recently become the best clients for number could grow to 68 million next year, choice thanks to deregulation, improvedaerospace manufacturers – recently placing a gain of 4%. But this projection carries technologies, and the emergence of newan $18 billion order for Boeing 777 aircrafts a major caveat: financial markets must business models. Due to growth in emergingto expand its fleet. stabilize. Even in late 2011, the outlook markets, global air traffic will continue to for the European markets was not exactlyLatin America is the only region to have increase over the next few decades, with promising, as the debt crisis continued togenerated a third consecutive year of Airbus predicting a doubling of passengers erode consumer confidence. Will this meanprofitability. The boost in traffic can be over the next 20 years alone. This translates
  • 3. What’s in store for 2012? Interbrand | Pg. 3that stagnation is a more likely scenario for countries and the U.S.). The large Japanese can meaningfully refine the concept of2012? automakers, headed up mainly by Toyota, will mobility, as evidenced by Zipcar. spare no effort to regain lost market share. InFirst, the good news: The auto industry is Given the trends outlined above, brand light of meager global demand growth, theseapproaching the new year with perceptibly strength and performance will become factors will amplify competitive pressuresfresh vigor. Major German and American all the more important as automotive and decrease profitability within the industry.automakers, as well as the Korean Hyundai consumers become increasingly influenced In particular, predatory pricing will escalate,Group, were the big winners in 2011 car by digital media. This presents a host of new imposing considerable cost and marginsales, clearly consolidating their world opportunities for automobile brands. They pressure on automakers that dominate themarket positions with double-digit gains. will be called upon to systematically align European market (Renault, PSA, Opel).Conversely, Japanese makers posted average their brand touchpoints with the specificsales losses of 11 %. Technology and mobility trends brand experience and product benefits. Emerging technology trends, such as Undoubtedly, 2012 will be a call to action forHigh and low performers lightweight construction and innovative the entire automotive industry.Looking at profits, automakers around the alloys, will continue to unfold in 2012 –world performed well with an average EBIT and they will bring about reduced fuelmargin of 5.1%. German companies were the consumption and other operationalmost profitable, with a record average return Business Services advantages. Players such as BMW andof 9.9%. BMW tops that list with 13.2%. The The year of the business service brand Audi have been advancing these angles foronly other automaker on par was Hyundai, By Josh Feldmeth several years. Automakers will likely pursuewith an EBIT margin of 9.5%. Lagging far raw material sourcing and prefabrication Markets are quickly transforming andbehind, American companies averaged 6.1%, techniques because of the global shortage organizations of all kinds must changeand Japanese attained an average of 2.8%. of know-how and production capacities. to keep pace. Banks are learning newSlower growth in 2012 Strategic supplier relationships, therefore, regulation. Tech players are racing to deliverThe global automotive economy is expected will present a distinctly important advantage. software in the cloud. CPG companies areto cloud over in the year ahead. Against the reengineering consumer paths to purchase The deployment of in-car assistant systemsbackdrop of the still smoldering government in the post-digital age. Manufacturers will continue to enhance the value ofdebt crises, the European auto market is wrestle with soaring material costs; airlines premium and mid-range models. With theexpected to shrink by about 2% in 2012. labor and oil hedging. Energy companies adoption of automatic parking assistance,Many projections suggest low single-digit must learn to market themselves better. blind-spot avoidance, land-departuregrowth rates for the U.S. (+2%) and China Creative companies can’t find enough talent. warnings, and the like, passenger cars will(+4%), though China is viewed as a growth And just about everyone has an IT issue to move ever closer to partially autonomousengine and future center of gravity of the sort out. And who is waiting, ready to help? driving.entire industry. Slight demand increases are Business services providers.also forecast for Russia, India, and Brazil. A Innovative mobility concepts are alsodistinctive rebound of +23% is anticipated advancing, with offerings such as the The business of business service will matterin the Japanese market, which suffered a “Car2Go” by Daimler, the “Mu” by Peugeot, more in 2012 than ever before. But there isgreat deal in the wake of the earthquake and and the “Quicar” by Volkswagen. The real concern that business services brands,tsunami catastrophe in March 2011. impetus behind these concepts is the long underappreciated by their owners, may change in mobility needs of young urban not be up to the task. Here’s what to expectCompetitive pressure on the rise consumers. In the urban hubs of saturated in 2012.Market trends will favor automakers markets, car ownership is no longer asuch as General Motors, Volkswagen, and priority; the emphasis has shifted to highlyHyundai, all of which already occupy strong efficient mobility. In many car-congestedpositions in core auto markets (i.e. the BRIC metropolitan areas, this is an approach that“Many of the big players made significant dealsover the past few years, and now is the time toprove that they made the right calls.” - Josh Feldmeth on the Business Services sector
  • 4. What’s in store for 2012? Interbrand | Pg. 4Making good on the strategic rationale IP Advantage online retailers are dramatically expandingof the deal Pop quiz: Can you name the big four global the consideration set; and private labelMany of the big players made significant accounting firms? Bonus points: Name the products are competing for every penny thatdeals over the past few years, and now is the unique selling proposition of each? This apprehensive consumers are willing to parttime to prove that they made the right calls. particular stumper gets to the bane of the with in today’s sputtering economy.Brands like Cisco, Xerox, Towers Watson, services existence—differentiation. We know The race to the bottom has begun, withAon, and others will work hard in 2012 to how they got there: years of brand neglect, mid-tier and even upper-tier CPG brandsensure that delivery lives up to the original strong partner fiefdoms, and the fallacy of vying for space on the lower shelves in anpromise of the new business model. Most the low role of brand in B2B business. There effort to connect with savvy, cost-conscioushave good strategies and brand assets are exceptions—Accenture’s sustained consumers. The traditional “good, better,in place. The winners will be those that marketing investment and McKinsey’s best” brand model may be doomed, asleverage employee behavior to create a new rigorous culture cultivation have both increasingly informed consumers seek acustomer experience. produced distinctive brands—but it’s a “best, best, best” model. Shoppers strive common problem that plagues more than to balance features and benefits againstOutsource anything just the big four. transparent pricing, enabling them to feelThe forces reshaping global markets— that their brand purchases are value-basedresource scarcity, risk, rising regulation, debt Many business services firms will not grow choices instead of compromises.crisis, etc.—demand that companies develop their marketing budgets in 2012, but willradically new capabilities. Energy companies combat their differentiation problem through A revolutionized consumer experiencemust become marketers, and marketers a more affordable and comfortable brand Bolstered by shoppers’ unfettered onlinemust become more like actuaries. Actuaries asset instead: intellectual property. Good access to products, information, and socialneed the soft skills of bank relationship IP is a smart solution. It is, by definition, networks, consumerism is redefiningmanagers. The bankers need to start acting differentiated and marginally cost-free. the value proposition for CPG retailers, and the retailers need to act a Expect to see more selective, high-end Concurrently, inflationary pressures arelot more like Amazon. client conferences and integrated digital eroding the power of large retailers to distribution. limit brand offerings and force pricingOr perhaps they don’t. Expect a new wave controls. What’s more, lifestyle changesof outsourcing in 2012 as companies, The rise of brand voice and technology advances are transformingstruggling to define and perfect their Digital has fundamentally changed the way the entire consumer shopping experience.evolving core capabilities, look to business brands are exchanged. That’s not news. The days of meandering up and down theservices brands to shoulder more of the load. What will be news is the level of investment grocery aisles for weekly commodity itemsIT and BPO is already there. HR, Finance, business services will make in brand voice will likely become a thing of the past. Also,Marketing, and Legal will increasingly in 2012. Word-of-mouth and colleague the consideration set has changed. Whilefollow suit. It’s good news for the business recommendation has always been the traditional brick-and-mortar stores—services community, especially for those key driver in the space, which the social hobbled by square footage restrictions —that can nimbly adjust their offers and value marketing paradigm has only accentuated. typically offer a narrow selection of brandspropositions to match. Brand voice will eclipse visual design as the in any given category, online retailers can key element through which services brands sell a virtually limitless array. Granted, theCapability is the new capability are experienced. Winners in 2012 will be large chains are not going anywhere soon;What happens when you mix aging those that define their brand voice and put however, a global shift is taking place in thepopulations in the industrial West and the training and standards in place to ensure mindset of consumers, complete with aJapan, expanded output in Asia and Brazil, their armies of consultants, accountants, and growing intolerance for the “same old, sameand the industrial transformation that is the advisors use it. old.”digital revolution? Today’s consumers question brandIn 2012, we will witness professional Consumer Packaged Goods actions and valueservices firms extending their offering to Redefining the value proposition for The worldwide economic downturn,include capability delivery—teaching the CPG brands exacerbated by governmentalclient to fish rather than hauling it in for By Dyfed “Fred” Richards & Ted Monnin ineffectiveness and corporate misdeeds,them. Pure plays, like Brand Learning, the UK has shaken consumer trust in largecompany that delivers marketing capability, The value proposition for consumer packaged institutions, including those companiesand commercially savvy in-company goods (CPG) brands has shifted, and both that manufacture and sell national brands.executive education programs from the likes brands and retailers must take note. Brand People from all walks of life, cultures, andof IMD, Duke Corporate Education, and value is being squeezed from all sides: SKU backgrounds are asking questions — realINSEAD will intensify the competitive field. proliferation is cannibalizing market share; and valid questions — about the companies,
  • 5. What’s in store for 2012? Interbrand | Pg. 5stores, and brands they patronize: “How are to stay relevant in this consumer-centric businesses based on proximity. Amazonmy favorite brands conducting themselves marketplace. Could it be an ideal time to delivers any product imaginable,in the marketplace? Where are they launch a new era in CPG branding? generally at the lowest price.sourcing raw materials? How socially andenvironmentally responsible are they?” The benefit of aggregators is that theyBrand behavior will be held accountable, and Digital reduce data overload by using behavioralconsumers will vote with their wallets. Helping consumers make everyday choices tracking and relational sorting (“if you liked in the face of big data this, you may also like that”). Google narrowsIn addition, brand value and selection are By Robin Rusch our search options based on popularity offacing scrutiny like never before. Consumers “It’s not the customer’s job to know what choices overall and your own choice historyare more likely to choose, and subsequently he wants.” So said Steve Jobs. Yet, the last as evidenced by past clickthroughs. Netflixremain loyal to, brands whose packaging decade has demanded exactly this from the awarded a $1 million prize in 2009 to theprovides both clarity and substance at consumer. Content and product overload team that improved its recommendationshelf. There will be no more battling claims burden the consumer, paralyze the act of algorithm “to connect people to the moviesmessages, overstated facts and figures, decision-making, and devalue the product. they love” (a conundrum referred to as themarketing jargon, or hollow slogans. At Delivery options based on data mining Napoleon Dynamite effect). These entitiesthe end of the day, the true value of a brand through consumer behavior patterns serve to take into account not only past actions, buthas to win out on-pack, in the store, and in narrow, rather than broaden, the consumer’s also mine social network behavior to intuitconsumers’ lives. exposure. our preferences, thus narrowing our choices by presenting selections likely to appealA new spin on brand value As consumers, we have always benefitted to us.CPG could learn a lesson from the from assistance when making decisions.automotive industry where some atypical Whether from a brand owner, a product If you already know what you want, or youbrand names are redefining the idea of dealer, or a content editor—someone out want what you’ve always had, you’re in luck.“value.” Ford is capturing market share with there curates a selection of options, and But what happens when we only get whatthe value-based Fiesta and Focus models depending on service level, is on hand to we expect and know, again and again? These– both of which offer quality construction guide us. Successful brand owners and systems don’t broaden our exposure to theand high-tech features typically reserved for businesses built their reputations by offering new or unknown. In fact, our worldview, ourhigher-ticket models. Relatively new brands inside knowledge. general openness, and our proximity to newHyundai and Kia are attracting consumers ideas narrow against our own limitationswith well-designed, smartly priced products Aggregators reduce decision burden, but every time we make a choice on anthat prove inexpensive cars can be both limit choices aggregator. Those wishing to expand theirpractical and fun. The rise of aggregators over the last decade tastes or knowledge must either assume the — businesses built around collecting existing burden of becoming expert, or seek a curatorThe game has changed. Today’s consumers content or products and offering them to sort and advise for them.want brands that not only understand and cheaply or freely en masse — redefines themeet their needs, but also validate their way we make choices and eliminates the role Aggregators pose another threat by drivingpurchase decisions. CPG brands will have to of curators. Google offers up endless results down value and, in some cases, cuttingrethink their value propositions if they hope at the click of a mouse and Yelp locates out the brand or producer altogether.“The game has changed. Today’s consumerswant brands that not only understand andmeet their needs, but also validate theirpurchase decisions.” - Dyfed “Fred” Richards & Ted Monnin on the Consumer Packaged Goods sector
  • 6. What’s in store for 2012? Interbrand | Pg. 6This is starkly evident in publishing, significant step was taken in Durban, South greenhouse gases (GHGs). A more inclusivewhere readers skirt paywalls by finding Africa at the 2011 United Nations Climate shared responsibility toward global energyfree published material or simply avail Change Conference – one that recasts policy is a crucial element in finding effectivethemselves of alternatives (e.g., opinion the way the energy sector will progress in and equitable means to reduce GHGs whileblogs replace journalism). But it also stands the next decade. It’s important to take a fostering economic and political stability.true for items sold through aggregators like quick look back to better appreciate the The probability of disruption to the KyotoAmazon, where manufacturers sell their consequence of 193 nations contentiously Protocol is unfortunately real.products below or near cost -- threatening deliberating the corrective course for climatesustainability and, typically, the brand change. As we look to 2012, there will continue to bepromise. Sometimes, the mega-retailer storm clouds on the horizon and we musteventually does away with the brand The year 2011 was unkind to Earth and its stay vigilant to ensure that meaningfulaltogether and offers a house brand instead. inhabitants. Natural disasters, profound progress in energy policy is achieved in theFor 15 years, Amazon provided a cheap, well- weather changes, elevated price of fossil months and years ahead.stocked alternative to the brick-and-mortar fuels, unprecedented drought and shortagesbookstore. Last fall, they replaced the need of food/water shortages, and a depressedfor publishers with CreateSpace. It enables global economy would make one highly Fast Developing Marketsone to use free tools to self-publish and discouraged and disheartened about the Should we call them just “Developingdistribute books. future. Yet year-end predictions provide an Markets” now? opportunity to consider the resourcefulness By Alejandro (Alex) PinedoAll this would seem to benefit the consumer. of human ingenuity to make positive changeChoice, control and low cost are concepts a reality. We knew it was bound to happen. Thewe’re programmed to value. If Amazon can global crisis, now re-branded “the Eurozoneoffer great publishing, why would we object? A future deal and a new fund crisis,” has finally worked its way into evenBut is Amazon offering great publishing? Can The 2011 United Nations Climate Change the largest fast developing markets (FDMs)it be trusted to help me choose the perfect Conference was held from late November around the world, bringing with it telltaleomelet skillet, the right memory chip, and into early December. In the final hours, signs of slower growth.a good read by a new author? No, and it delegates agreed to a legally binding dealdoesn’t offer to; it merely sorts options by comprising all countries, which will be “Slowdown” has quickly become thewhat I, or other people like me, chose in the prepared by 2015, and become effective in catchword that best describes the economicpast. 2020. Progress was also made regarding the situation in fast developing markets — or creation of a Green Climate Fund, for which a at least in most of them. China is “slowingBrands will benefit by informing management framework was adopted. The quickly,” according to Thomson Reutersconsumer choice fund’s goal is to invest $100 billion per year sources, and is reviewing GDP growthFor all those consumers who care only to help poor countries combat the impact expectations, which still remain above 8%whether something is cheap, there are of climate change. This significant infusion for 2012. Brasil is expected to finish 2011others overwhelmed by choice, those of focused capital creates a funded incentive with growth of only 3.2 %. For 2012, growthwithout the time or interest in becoming an for energy innovation. The opportunity to estimates have also been cut in half, fromexpert in every decision, and those who truly invent and install low-cost energy sources 7% down to 3.5%. According to Lloyds Bankwish to be delighted by new discoveries. for developing nations is now available analysts, the crisis in Europe was the mainAs we enter 2012, the need for brands, to motivated entrepreneurs, not just factor for these reviews. Similar situationscurators, editors, and trendsetters to inform established energy companies. are playing out in India, South Africa, andand expose choice to the customer is crucial. other traditional fast-developing marketsTheir value will be welcomed for lessening A shared responsibility toward global around the world.the burden of decision-making, simplifying energy policyour lives, and, at the same time, broadening The UN Conference is significant in But slowing is not synonymous withour input and experiences beyond our own identifying the shortcomings of the Kyoto stopping. In fact, reduced growth could givelimitations. Protocol, the international treaty adopted these countries the chance to reorganize in 1997 in an effort to stabilize climate and make necessary infrastructure change (the U.S. is one of the only countries adjustments, enabling them to continueEnergy not to have ratified it). Many are optimistic their desired (and expected) development inProgress and positive change on the that a broader constituent of developing a more sustainable way.horizon nations, such as India and China, as wellBy Tom Zara the industrialized nations of North America Larger countries such as the BRICs (an and Europe, will adhere to reductions of aging acronym, by the way) have internalOn December 11, 2011, a small but
  • 7. What’s in store for 2012? Interbrand | Pg. 7markets that give them sufficient support goods stores and premium hotels in popular sector seems rather bleak. A number ofto withstand external instability. But, even destinations like Paris, Rome, and New York factors -- ranging from economical andat home, the need to setup and invest in the have hired or trained staff members to speak political shifts to general questions aboutright infrastructure to support growth is a Russian, Chinese, Portuguese, Spanish, the role of financial institutions -- haveclear necessity. and other languages to cater to these avid changed the landscape considerably and consumers. continue to create significant uncertainty inAs wealth increases in these markets, we the industry.will see a predictable economic upward Customers who are highly informed are alsoshift among social classes, gaining more highly demanding. Access to vast online Increased regulation across all marketsaccess to education, jobs, and better living information about products and brands, is making it harder for banks to generateconditions. Such shifts have also changed including reviews and personal experience profits and extend sufficient credit into thethe way brands approach these new stories, has fueled higher standards of quality system. Banks are confronted with the needconsumer groups, from micro credit lines in today’s consumers. to raise huge amounts of funds in 2012and retail financial products being offered to comply with new rules, which will be aby banks to new consumer products using As wealthier consumers from fast developing difficult task in the current environment.innovative packaging solutions to creative markets travel the world and gain accesslogistics solutions that are able to reach vast to the premium goods they have always The changed economical and geopoliticalterritories with economic feasibility. wanted, brands continue to play an even environment has also been extremely greater role. In these situations, brand name challenging for the financial servicesThough some aspects of economic is often the most important driver of choice. sector. “Business as usual” no longer exists.expansion are predictable, consumers The ongoing Eurozone crisis is addingin today’s fast-developing markets are As we head into another exciting and tremendous stress to the financial system.distinctly different from those of other eras: challenging year—in which the only true Markets that were once considered stablethey can leverage instantaneous, widely certainty is change—fast developing markets are no longer safe bets. China and Russia areaccessible information and communication will need to determine how to best absorb facing political transitions and the Middleplatforms. and respond to the impacts of the economic East is experiencing enormous political and instability in the U.S. and Europe. While social changes. Considering this picture ofSo, what happens when you combine newly this will be a challenge, it also represents an global instability, it is understandable thatacquired buying power with broad access incredible opportunity for these developing investors are rather risk-averse -- or will beto information in a world that conveys a countries to make necessary adjustments heading into 2012.permanent sense of urgency? that will ensure that growth continues at a sustainable pace for many years. The events of the past few years haveOne result is an immediate and increased certainly added to the seemingly universallevel of desire. Consumers from emerging public relations problem that banks areclasses in fast developing markets are Financial Services experiencing. By and large, the public stilltargeting their spending power toward A world of challenges sets an blames banks for taking the world to theitems at the top of their wish lists, such as uncertain stage brink of economic meltdown -- and theindulgence travel to foreign destinations and By Carola Jain financial services sector, as a whole, has notownership of luxury branded goods. Luxury been able to rebound. People want to see The 2012 outlook for the financial services that banks have a positive impact on the“Reduced growth could give these countriesthe chance to reorganize and make necessaryinfrastructure adjustments, enabling themto continue their desired (and expected) - Alejandro (Alex) Pinedo on the Fastdevelopement in a more sustainable way.” Developing Markets sector
  • 8. What’s in store for 2012? Interbrand | Pg. 8economy, not a destabilizing or destructive powerful and efficient way of building and average transactions get lower, McDonald’s,one. In order to overcome this loss of managing a brand. Starbucks, and other major chains willtrust, banks will have to actively prove that continue to innovate by developing newthey are “adding value to society.” If not, Perhaps the best example of this optimistic reasons to visit. The successful rollout ofinitiatives like Occupy Wall Street may regain sense of purpose is the current Arctic Home McCafé gives McDonald’s the platform tomomentum. campaign from Coca-Cola. The concept deliver new beverage-driven occasions, but builds awareness around the loss of polar also creates the challenge of innovatingSo, which brands in the financial services bear habitat through limited-time packaging appealing seasonal beverages and seasonallysector are well positioned for 2012? From design and in-store displays. These items themed packaging to maintain momentum.our perspective, it is those banks that are drive consumers online to learn how to get Starbucks, having dropped “coffee” fromwell capitalized and able to comply with the involved and make a difference. Sharable its identity, will look to offer premium fruitnew requirements, yet still have sufficient digital content allows people to scale the beverages and more food choices to theirscale to take advantage of opportunities story through Facebook and Twitter to build loyalists in order to remain theas they emerge. Not an easy combination. a movement. The cause is noble, relevant, category leader.JPMorgan Chase is certainly well positioned, and provides a plausible way to interveneas is Goldman Sachs. With so many on behalf of the endangered bears, all while Lastly, this is an Olympic year and theEuropean banks struggling, it remains to be linking to Coke’s historical association with London Games should prove to be a newseen which banks will emerge as leaders in polar bears as a seasonal brand campaign. high-water mark for integrated marketingthe year ahead. The polar bear began as a way for the brand and brand building. McDonald’s and Coke, to entertain us, but now serves as both a both perennial World Olympic partners, can visual asset of the Coca-Cola product, as well be expected to bring their brands to life in as an icon for the brand’s social responsibility innovative, entertaining, and sharable waysFood & Beverage efforts. to the world audience. A year from now,Selling optimism and accessibility will we should all be referencing these Olympicdrive growth Fast developing markets will drive growth games as the year that finally brought theBy Bill Chidley While building social currency and starting integration of global brand building and movements are effective ways to address the local brand activation, linked to incredibleAs political and financial chaos seemingly business challenges of developed markets, social media strategy.become the status quo, leading food and the biggest growth for global food andbeverage brands will seek growth and beverage brands will continue to come fromdifferentiation through the coming year by fast developing markets. PepsiCo’s CEO hasprojecting a sense of optimism and purpose stated that these markets will account for Healthcarein mature markets while simultaneously at least half of PepsiCo’s sales in the next Will healthcare be the new “green”?focusing on gaining distribution in fast five years. To that end, Pepsi is reinventing By Wes Wilkesdeveloping markets. its bottling alliances in China to gain moreOptimism must be coupled with a distribution. Coke plans to invest $2 billion In 2012, we will see three notable trendssense of purpose in India alone to expand its presence. Yum! transpire within the healthcare sector. TheseThe notion of optimism in brand building Brands (the parent company of KFC, Pizza trends include: an evolving brand modelis certainly not new. Take, for example, Hut, and Taco Bell, among others), is also and expanded offerings; the increasing rolethe slogan used by the UK’s Orange seeing the majority of growth outside played by medical devices and technologies;telecommunications to capture share in developed markets, having recently signed and the entrance of out-of-categorythe 90s: “The future’s bright, the future’s a deal with China’s Sinopec to open units companies into the healthcare space.Orange”. Today, pure optimism is not in potentially thousands of gas stations. Healthy shift: Evolving models for brandsenough. This upbeat stance must include Yum! is also acquiring and inventing new and productsconsumers in the dialog and ultimately allow restaurant concepts, specifically to meet the Traditionally, large-scale pharmaceuticalthem to participate in something fulfilling. opportunities in China. companies employed a “holding company”Food and beverage brand marketers are Innovative brand extensions create approach with their product brands,betting that a sense of purpose will drive new opportunities in which the corporate brand wasstrong connections with existing loyalists Sales for restaurant brands in mature not promoted to the providers or theand new users through social media markets should be propped up by lower fuel consumers. Separating the healthcareand other earned media strategies. The prices, which will free up more disposable manufacturer from the product brandscreation of sharable content that ties income for dining out. The rising cost of was a form of risk mitigation—reducingback to a brand’s equity and assets – while commodities and consumer pressure for the impact of adverse events and productdemonstrating social responsibility – is a “value” pricing, however, will erode profit. As recalls. Nevertheless, with the proliferation
  • 9. What’s in store for 2012? Interbrand | Pg. 9of media, very little protection is ultimately transforming diseases -- making them more citizenship. This shift is not only driven byoffered. manageable. a new social awareness and consciousness of health, but also by an urgent need forThis older brand model worked because Such players are also rethinking the role business growth and diversification. Wemost companies had a small set of products that brand plays in building relationships have no doubt that this will be a prevalentthat fundamentally targeted different with key consumers. Just like traditional trend in 2012, which raises the question: Isconsumers. Now, however, most of the key pharmaceutical companies, they are realizing healthcare the new “green”?players have a plethora of products that the economic and operational benefits oftarget similar therapeutic areas and similar building a strong corporate umbrella brand.consumers. Such organizations are now These companies can certainly drive productrealizing that, in leveraging their corporate purchase premium and preference. Once Hospitalitybrands, they not only improve efficiencies, they truly start to shift their promotional and A shift toward valuebut also succeed in differentiating their brand models, we expect patients to become By Jonathan Chajetproduct brands. The result is greater increasingly involved and engaged in thedifferentiation, competitive advantage, and The hospitality industry will continue to decisions around their overall treatment.increased revenue. move forward cautiously in 2012, focusing New entrants to healthcare: Is healthcare on pockets of growth and making measuredHigh levels of M&A activity is another factor the new “green”? investments to reinforce guest loyalty andthat has forced traditional pharmaceutical Another notable trend is the accelerated enhance differentiation.companies to rethink business models and rate at which companies that once offeredexpand what they ultimately offer to the only consumer brands are jumping into the Flight to valuemarketplace. These companies are no longer healthcare space. One clear outcome of the global recessionsolely focused on selling pharmaceutical has been a distinct shift toward value. Notcompounds, but have broadened into There are, of course, natural revenue streams simply a money-saving tactic, consumers arewellness and other areas. Many are that can be seized by applying a company’s trading down to reflect a new view of theirventuring into end-consumer markets, fast core competencies in the healthcare sector. world: frugality is beautiful. From choosingdeveloping markets, branded generics, and Many of these “new entrants,” however, to drive rather than fly, saving the weekendeven animal health. Such moves indicate quickly face a relatively steep learning curve. getaway for truly celebration-worthy events,that these organizations are also revamping Entering the highly complex and highly or simply cutting corners to meet tighterthe fleeting small-molecule blockbuster regulated healthcare marketplace requires budgets, value for money is essential at allmodel of the past. them to build strong brand relationships with price points. For hoteliers, this means higher both providers and consumers in an entirelyThe increasing role of medical diagnostics, guest expectations. Flawless execution of new way.devices, and technologies: Is hardware the basics is a must. Sustainability-friendlythe new “pill” for improved outcomes? As companies such as Bosch and Philips enter practices are not just about being green, butGone are the days when doctors and the healthcare space, they are realizing the adopting a “waste not, want not” philosophy.patients relied solely on pharmaceutical important intangible benefits to be gainedtreatments for conditions like cardiovascular by creating a healthcare offering within their Personalizing my staydisease, diabetes, and neurological existing portfolios. These expansions are The internet continues to shape traveldiseases. Companies that produce medical emerging as an important new trend when purchase behavior, with increasing usediagnostics, devices and technologies are it comes to corporate image and corporate of digital tools to compare experiences,“As companies such as Bosch and Philips enterthe healthcare space, they are realizing theimportant intangible benefits to be gainedby creating a healthcare offering within theirexisting portfolios.” - Wes Wilkes on the Healthcare sector
  • 10. What’s in store for 2012? Interbrand | Pg. 10features, and prices. Today’s traveler is an end of the market to the test. Increasingly countries, the challenge for luxury brandsinformed traveler. Interestingly, online sophisticated travelers are putting hotel will be to prove that – having been thebooking sites like Travelocity, Expedia, and brands under the microscope, demanding fastest to restart growth after the 2008–Ctrip represent only a small fraction of actual exceptionally proactive service to go along 2009 meltdown – they can be resilient insales, but play a disproportionately large with their exceptionally comfortable beds. relation to macroeconomic crashes and therole in shaping price perceptions. As a result, Those who don’t just promise, but actually swings of economic cycles.hotel brands are actively participating in deliver consistency in their brand experiencetravel review sites, with customer service will have a far easier time finding, attracting, Varying roles for western andrepresentatives responding directly to and retaining loyal guests. fast developing marketscustomer complaints in travel forums for the The global economic recession has put one Strong concerns over the weakness and slowentire world to see. destination on the top of every hotel brand’s growth of the western markets means that travel wish list: China. As one of the few those areas will have to be seen as originsOnce a guest reaches the front door, growth markets in the world today, more and rather than destinations in 2012. In otherhotels are increasing their emphasis on more hotel brands are turning to the Middle words, regions like Europe and the U.S.empowering guests and giving them control Kingdom to add to their bottom line. In fact, will play the role of mature markets thatand personalization in the experience. it is estimated that Starwood is opening a contribute to a luxury brand’s presence andTravelers demand excellence. Make my new property in China every two weeks. relevance, rather than its outright financialtechnology work as seamlessly as it does in home or office. Give me choices in my Currently, travel to and within China isstay experience. Connect me with the world booming. But, in the long-term, Chinese On the contrary, some fast developiongoutside the hotel and make my trip run more consumers will become an increasingly countries might be experiencing the firstsmoothly. Help me turn your space into my important segment of the international hotel noticeable slowdown in momentum forspace. market as well. Overseas travel is frequently the first time since their designation as cited as a life-long dream for Chinese the guiding lights of the global economy.Fighting homogeneity consumers who now have the means to do Although it is highly unlikely that suchAt the luxury and near-luxury end of the so. Hotel brands are building properties in speed reduction will affect the most affluentmarket, hotel brands seem to be in an arms China as fast as they can sign construction segments of the population in theserace over features, creating short-term contracts in order to generate brand markets, luxury brands will still need tobuzz but long-term risks. To justify their awareness and create preference for the years prove themselves—and demonstrate therates, hotel brands are investing heavily in to come. extent to which they have become trulyformulaic interior design, celebrity chefs du indispensable threads in the fabric of thesejour, and lavish rewards programs. Many of new societies. The stakes are particularlythese tactics are short-term differentiators, Luxury high in a market like China, which sustainsbut research reveals that travelers are From the economy of luxury to the the fortunes of many global luxury icons,starting to feel as though everyone looks luxury of economy and where all eyes turn when seeking anand sounds the same. This could lead By Manfredi Ricca engine of an apathetic market edging towardscommoditization, not unlike the airline As the global outlook shifts back to sluggish Interestingly, this dual situation mayindustry. growth in western markets and relatively lead global luxury brands to think of theirThe sea of sameness will put the high- slower growth in some fast developing geographies in very much the same way“The challenge for luxury brands will be to provethat – having been the fastest to restart growthafter the 2008-2009 meltdown – they can beresilient in relation to macroeconomic crashesand the swings of economic cycles.” - Manfredi Ricca on the Luxury sector
  • 11. What’s in store for 2012? Interbrand | Pg. 11as they think of their own distribution Media Apple’s first-mover success is notchannel structures. Europe might well be Consumers win in 2012 guaranteed to last forever, as the companyconsidered the flagship region for these By Cassidy Morgan charts a new course without founder Stevebrands, but not necessarily a moneymaking Jobs. Google is pushing harder than ever toone in the short term. Fast developing Over the last few years, social media establish its Android operating system ascountries, on the other hand, may provide has helped fuel important people-led the leading model for content consumption.access and availability to new customer movements. Be it the Arab Spring, various Companies like Samsung and Amazon aresegments, driving growth and performance. “Occupy” movements, or simply product catching up on the device side. In fact,In extremely simplified terms, this duality recommendations, the use of social media Samsung became the world’s largest seller ofof models amounts to a delicate balance has shifted from fun into serious business—in smartphones in the fall of 2011. All of thesebetween the creation of desire and the social, political, and economic terms. developments put significant pressure ondevelopment of demand. Apple to stay ahead of the game. Content is being developed at a dizzyingTrue luxury defies downturns pace and consumers are becoming more All of this turmoil and uncertainty mayThe sum of these models can place luxury comfortable relying on information that sound tough for the business, but it’s goodbrands in a unique position in today’s global is not branded except by a user’s name or news for the consumer. As companieseconomic landscape. At a point in history Twitter handle. Traditional media companies clamor for content, they are eager to buildwhen uncertainty is the only certainty and are no longer seen as the go-to sources. a network of consumer reporters aroundvariance is the only average, luxury brands Instead, the best have embraced the the world to provide a firsthand look – notcan aspire to become nothing short of notion of user-generated content to ensure only at burgeoning revolutions, but also atcommercial securities by acting as powerful relevance in an increasingly competitive trends, product reviews, etc. This meansrisk mitigators. In the wake of the recent market. that consumers will find themselves in thecrisis, brands that have chosen to reclaim position to make money by providing this Even media companies that are deeplytheir history and uniqueness have shored content. Monetizing access to information ingrained in offering sophisticated contentformidable assets against any future or creation of content is not a new idea. to professionals around the world (such aseconomic downturn. They have based their The scale at which it is now possible via Bloomberg, Thomson Reuters, or LexisNexis)brand promises and performance upon global internet access, however, will create will have to battle consumer-generateddrivers of choice that are, by definition, less an unprecedented flow of money into information and opinions as businesses cutsensitive to a dampening economic climate. consumers’ pockets. costs and look for cheaper ways to get to the same information. At the same time, consumers will see aWhen we look at the financial landscape, continuous wave of innovative consumptionstabilization is what everyone seems to be As the content side of media has changed, a models and methods flood the market.seeking. A true luxury brand—one whose similar shake-up has happened on the device Devices will become more user-friendlyoffer is really about undying currencies such side. Recent years have seen an incredible and customizable, apps will be developedas heritage and excellence—may well be the proliferation of devices and apps designed for to meet more and more specific consumertreasury bond of tomorrow’s competitive consumers to experience content at home, needs, and the number of models willworld, yielding the financial multiples and at work, or on the go. Hardware makers have continue to explode. Consumers will havebusiness continuity that represent the real created distinct ecosystems in an attempt to more choices than ever before, and thoseluxury of today’s economy. form lasting relationships with consumers, choices will allow them to do more things on and the winner is far from certain. their terms than ever before.“Be it the Arab Spring, various ‘Occupy’movements, or simply productrecommendations, the use of social mediahas shifted from fun into serious business – insocial, political, and economic terms.” - Cassidy Morgan on the Media sector
  • 12. What’s in store for 2012? Interbrand | Pg. 12Lastly, the content and device war will Shopping is not an isolated event. Like Backlash and balancelead to continued price pressure for media our lives, it now streams simultaneously Last year, the frenzy for apps, augmentedcompanies and manufacturers alike. To online, with our thoughts and decisions realities, and the pressure to jumpcapture consumers and lock them into publicly shared and reviewed by our personal into social media had retailers madlyan ecosystem, companies will be forced networks. assembling patchworks of digital tacticsto invest significantly, leading to more while the ground was still shifting. Now This new flow of life has led to a different ideaaggressive price competition amongst the that brands have a greater understanding of what constitutes a store. People no longerdominant players. In order to ensure that of the landscape through trial, error, and distinguish between physical and virtualit will not be a race to the bottom, the best observation, they’ve gotten past the novelty channels. Today, a retailer must think of itselfand most forward-looking companies will of digital—such as Macy’s short-lived magic as a moveable feast—an engaging entityinvest in the one thing that will provide long- fitting-room mirrors—and are concentrating with values, moods, and emotions, as well asterm differentiation: their brand. on what’s relevant. Many brands now have commercial, social, and educational aspects. the self-awareness and confidence to say,So who wins when it comes to media in For that reason, the idea of leading by “Maybe we don’t need to be on Facebook.”2012? The consumer wins all around: new brand—the values and meaning that define Surveys suggest that 70% of retailers useopportunities to make money through user- how a retailer does business—is a highly social networks for branding and marketing,generated content, more choice in devices relevant business model that is stable yet but only 38% feel they add value and 56%and content, and lower prices for those adaptable to these fast-paced times. feel it’s too early to gauge impact. Of thedevices and content. 30% of retailers that do not use social Take, for example, the growing trend inOn the company side, it will be a bruising networking sites, 63% do not plan to start. online shopping for routine purchases.battle. Look for the premium brands, like It challenges the monotonous chore of Apps have garnered a lot of attention, butSamsung and Apple, to come under pressure shopping the “center” of a store and questions despite all their promotion, few retailersover the course of the year as generic the viability of millions of square feet in the have succeeded in developing truly usefulsubstitutes catch up. On the flip side, we can grocery category alone. Retailers that fail offerings that engage consumers on analso expect those top names to protect their to understand how this impacts shelves ongoing basis. Vitamin store GNC createdmargins by investing in the uniqueness of and categories may find their mall-based a special feature for its app that remindstheir brands. If they do that well, their long- stores abandoned. In the same way, stores customers to take their supplements. Itsterm success is ensured. But, no stumbles that fail to provide engaging experiences or barcode scanner, regimen reminder, and dealallowed—otherwise, the brand owners can easier-to-shop layouts may fall out of favor. promotions keep customers interacting withwatch the decline of their brand play out live No company can survive today without a the brand. To make the most of the mobileonline. burning desire to engage the customer— investment, promotion and functionality nor can it thrive without a strong point of are key.Retail view and passion. Without imagination and Just when you think you have retail allIt’s about the brand, not about the store innovation, many stores are in danger of figured out, a wave of change rolls throughBy Bruce Dybvad becoming rusty relics of the past. the industry, upending paradigms and shaking up sleepy companies. AccordingIn 2011, boundaries continued to blur as Rethinking size to Gary Hoover, entrepreneur and retailresurgent retail inspired the industry with Last year, big-box vacancies shook retail history buff, the single most importantcreativity and challenged traditional ways real estate. Although these retailers won’t thing a retailer can do, even in the era ofof doing business. As the store evolves into be disappearing entirely, consumers’ desire global retailing, is focus on the people anda fluid idea that serves the mobile, global for easier shopping, inviting environments, the merchandise. The basic premise ofcustomer in search of new experiences to and closer locations—not to mention “right time, right price, and right customer”share, the degree of complexity escalates for the impact of multichannel shopping—is is timeless. The twist is that today, in theretail businesses. Brands are evaluating the changing the shape of the store. In the U.S., age of omni-channel retailing, it’s thatrole that their stores play and keeping their Walmart, Target, Best Buy, and Gap, among much tougher with all the paths availableeyes on digital opportunities. others, have small concepts in the works to retailers for delivering value. Great retailA coming crisis of relevance? or are adapting existing formats. Similarly, brands will activate consumer engagementIs the concept of “store” obsolete? Now that in Europe, brands like Carrefour continue opportunities to fit customers’ wants andconsumers can shop the world anytime to move beyond hypermarkets to alternate needs -- any way and anywhere they like.from anywhere, the expectation of having formats like Carrefour City. However, a For more retail insights, read our completeevery need instantly satisfied is sky-high. smaller footprint is no magic bullet for retail. State of the Industry Report on www.Product searches begin “in the cloud,” largely Stores need to be simultaneously optimized to a physical store of any kind. across the dimensions of brand, space, and finance.
  • 13. What’s in store for 2012? Interbrand | Pg. 13Technology importance of computer security will grow users looking for more than just gettingTech marches on, led by the consumer in tandem. For companies, adopting stricter, more done.By Nirm Shanbhag more-encompassing security policies will become a key initiative for IT departments,As always, the technology in our lives especially in light of the widening arraycontinues to evolve unimpeded—despite of devices in use. For consumers, the Telecommunicationsglobal economic meltdowns, political opportunity of living in the cloud will be More of the Same?unrest, and social revolution. The year tempered by the fear that comes from By Kevin Perlmutterahead will find this sector rocketing forward handing over so much personal and valuablewhile being buffeted by a number of game- information. This will create an opportunity The world of telecommunications is caughtchanging trends. for innovative brands to stand out by aligning between unprecedented advancements themselves with safety and confidence. when it comes to network capabilities and“Cloud” fatigue stagnation in relationships with customers.While virtualization, software-as-a- In the past, companies such as Microsoft, Despite the life-changing impact of whatservice, online storage and backups, and Apple, IBM, and Adobe followed a cycle of telecoms make possible, customers arestreaming media have been around for product refresh that saw a new release of any increasingly ambivalent or unhappy witha long time, in the last few years, it has particular software every two to four years. their providers. In 2012, telecoms willall become lumped together via a single Things are very different today. While some continue to face infrastructure investmentterm: the cloud. For most in the world of still follow an expected cadence (fans all pressures, increased competition, as well asbusiness, the term is hard to pin down, but over the world know when the next anything demand for new offerings and better service.still something important – something is coming from Apple), many brands havethat must be achieved, much like “getting shifted to more aggressive, fluid approaches. Infrastructure investment pressureon the internet” was in the late ‘90s. For This means that products as varied as tablets, Telecoms are fundamentally making theconsumers, it’s equally ill defined. And while smartphones, and even operating systems mobile broadband revolution possible.the concept of the cloud and the many are released as updates become available, not Meanwhile, there’s an ongoing tug-of-warservices that are based on it—from FarmVille just when the calendar dictates it. As a result, between telecoms and governments to keepto, Office 365 to Dropbox— consumers find themselves in a constant networks on the cutting edge in the faceare tremendously valuable, the term’s state of beta testing. By the time a product of regulations that democratize the resultsoveruse and lack of clear definition will has all the bugs worked out, it’s no longer the of substantial investments. As the need forleave us searching for a new, more specific latest and greatest. The side effect of this is speed and coverage grows, governmentsdescription. that brands find they have greater permission are falling behind in evolving regulations to to experiment, but are subject to the best support investments in innovation andWorkplaces of all sizes and shapes will infrastructure. corresponding expectation that what theycontinue to find themselves infiltrated by deliver is truly relevant and timely. Brands In 2012, this battle will continue. Theemployees’ personal devices, whether it be will do well to break away from their historic wave of acquisitions and joint venturessmartphones, tablets, personal laptops, or models and invite consumers to experiment in the quest for 4G LTE mobile broadbandexternal hard drives. The reality is that just with them. spectrum will accelerate. These partnershipsas the idea of distinct work/life modes israpidly disappearing, the same holds true Good-bye, productivity. Hello, experience. will bring together competing telecoms,for technology. At the same time, more and For the past half a century, the value of further integrate sister industries, and lookmore companies are looking to offload IT technology has been to push the boundaries to overcome regulatory hurdles, allowingsystems from their balance sheets, both of productivity. And while business companies to offer the fastest networkat the enterprise level (see the cloud) and technology is still evaluated against this speeds while reducing investment and build-individual user level (mobile phone plans, metric, in the world of consumer technology out time. Telecoms, in an effort to win overPC reimbursements, etc). Increasingly, a tidal shift is underway. In 2012, expect to potential partners or overcome governmenttraditional technology brands will need to see people seeking out tech that delivers scrutiny, will also work harder to improvefind ways to connect with individual users compelling experiences, not just features and their image as customer and communityon a more personal basis, potentially mixing functionality. Take RIM’s BlackBerry versus advocates.things up and creating opportunities for Microsoft’s Windows Phone. The former is Increasing competition and alliancesthose once viewed as being on the periphery in a death spiral while the other is a phoenix There will be further convergence ofof the category. reborn on account of the singular focus on the telecom, consumer electronic, and delivering a clear experience. Brands that entertainment industries. Consumers want deliver on this trend — even those that have their lives on-the-go -- anytime/anywhereOne word: security fallen from the leaderboards as of late — will -- with intuitive interfaces and seamlessWikiLeaks, credit card hacks, Carrier IQ. find themselves gaining traction amongst integration. This will continue to createAs our lives grow ever more digitized, the
  • 14. What’s in store for 2012? Interbrand | Pg. 14new sets of competitors and multi-brand the traditional pricing structure. Given thealliances to integrate technologies. It will increasing pace of innovation and a constantbecome more important that telecoms barrage of advertising for the best productsallow for experimentation and developer on the market, many people will not wantinput to serve customers with the most to sign two-year phone contracts that forceinnovative technology, points of access, and them to wait for extended periods of timerange of choices. to get the latest technology. Prepaid no- contract wireless will continue to grow inAnother onslaught of competition is coming popularity, and people will look to integratedfrom non-telecom business combinations. plans for their multiple wireless devices/Microsoft, Skype and Nokia, for example, capabilities.are undoubtedly setting themselvesup as new ways for people to connect, In 2012, look for telecoms to provide servicespotentially with or without a traditional that touch and integrate more aspectstelecom relationship. The Google/Motorola of people’s personal and work lives, anpartnership will further propel Google’s expanding array and interconnectedness ofability to drive new categories of demand. offerings, and greater innovation in pricingAnd retailers like Amazon and Best Buy and plan options.will continue to set new standards for how Evolving customer relationshipspeople shop for and integrate consumer The global telecom industry is one in whichelectronics. Each of these companies is people are besieged with choices, but few ofnot only expanding its offerings, but also these choices create true differentiation andexpanding on their opportunities to serve loyalty. Telecommunications is one of theloyal customers. few industries epitomized by a multi-yearIn 2012, telecoms will not only have to contract, monthly fees, and early terminationcontend with competitors encroaching penalties, topped with a perceived lack ofon their turf from every angle, but with appreciation for customer relationships.companies that have earned more positive Telecoms all around the world are notoriousand deeper customer relationships. Look for sub-par customer service, and practicesfor telecoms to further evolve their business that often make the customer experiencemodels as they contend with new partners cumbersome and frustrating.and more demanding customers. In 2012, some telecoms will begin toNew offerings act upon the opportunity to reframe theCloud services and mobile payments are customer relationship in ways that drive bothmoving from the early adopters to the demand and loyalty.mass market, and both will be increasingly Overall, one can most likely expect more ofimportant areas of focus for telecoms. the same from telecoms in the coming year,Wirelessly connected devices, from including rapid innovation and infrastructuree-readers to remote health-monitoring deployment, ever-evolving capabilitiessystems, plus a multitude of remote and offerings, intense competition, andcapabilities in the connected home, will also renewed attempts at improving customergrow as a percentage of telecoms’ revenue. relationships. TheBusiness customers are another area big question: Will any telecom break fromof focus for telecoms in the coming the pack and raise the bar for the wholeyear. Wireless technology presents an industry? ■opportunity to bring new capabilities tobusinesses. Telecoms will make a biggerpush toward equipping these customerswith solutions that go beyond basic voiceand data – solutions that will enable themto operate more efficiently and better servetheir own audiences.Some telecoms may begin to challenge
  • 15. Stuart Green Michel Gabriel Josh Feldmeth Dyfed (Fred) RichardsCEO, Asia Pacific Managing Director, Zürich CEO, New York Global Executive Creative Director for Consumer Packaged GoodsTed Monnin Robin Rusch Tom Zara Alejandro (Alex) PinedoCreative Director, Cincinnati CEO, BrandWizard Global Practice Leader, Managing Director, Brazil Corporate CitizenshipCarola Jain Bill Chidley Wes Wilkes Jonathan ChajetSenior Strategy Director, SVP, Interbrand Design Executive Director of Global Executive Strategy Director,New York Forum Strategy, InterbrandHealth Asia PacificManfredi Ricca Cassidy Morgan Bruce Dybvad Nirm ShanbhagManaging Director, Milan CEO, Central and Eastern Europe CEO, Interbrand Design Forum Managing Director, and Cincinnati San Fransisco Creating and managing brand value TMKevin PerlmutterSenior Strategy Director, New York