CultureLabel Trend Briefing


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In April 2012 CultureLabel was invited by ABAF and other partners such as the British Council to tour Australia as part of a speaking tour on Cultural Entrepreneurship exploring the intersection between technology, culture and entrepreneurship. More information on some of the projects can be found at

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CultureLabel Trend Briefing

  3. 3. ABOUT CULTURELABELCULTURAL ENTREPRENEURSHIP• is a curated online marketplace for cultural and design products and art. Launched in 2009 with 25 partners there are now over 650 organisations and 20,000 products onsite• Named one of the UK’s Top 50 web design influences by Design Week• Our ecommerce technology powers online retail for organisations including Saatchi Gallery and Whitechapel• CultureLabel is a for-profit, privately financed enterprise. Our investors require commercial and cultural dividends• CultureLabel Agency works with cultural sector and commercial clients from the Houses of Parliament to Google on income generation, technology, product development and marketing projects
  4. 4. INTRODUCING CULTURELABEL.COM• Aggregating 650+ museums, galleries, theatres, festivals, artists, designers, music venues, craft makers and creative retailers• Partners include Tate, V&A, Damien Hirst, Design Museum, Saatchi Gallery, Royal Academy, Whitechapel Gallery, Royal Collection, National Theatre, British Museum, Tracey Emin, Abbey Road Studios, Versailles, New Museum, NYC and the Royal Opera House
  5. 5. ECOMMERCETHE ONLINE ART REVOLUTION• Own Art lets UK Taxpayers borrow from £100 to £2,000 spread over 10 months, interest free to buy art (APR 0% Representative)• CultureLabel partnered with Arts Council England & Creative Scotland to take the scheme online to grow ecommerce sales• Pilot project includes several thousands works of affordable art and craft from 500+ artists across 70 commercial and not-for-profit galleries and studios. Many organisations had never previously sold online. Partners Include Whitechapel, BALTIC and RSA• Artists range from established names, including Tracey Emin, Sir Peter Blake & Damien Hirst to emerging talent at the Royal College of Art• Latest developments include In-gallery iPads to promote online stores, new co-funded and marketing initiatives that have made the site page one on Google for key search terms
  8. 8. TREND SCOUTINGA NEW CONTRACT: TREND SAFARI WHAT’S NEXT? Are we ‘making’ or ‘catching’ trends? •What are audiences up to (existing and potential)? An overview of selected consumer trends and what they mean for cultural organisations? •Which trends closely match our asset base allowing us to lead the way? •Where do we find our audiences?
  9. 9. TREND SCOUTINGTHE KODAK EXPERIENCE• Not surprisingly, it is very hard to predict the future• It is as hard to make change happen if the model does not appear to be broken• Look what happened to Kodak, the inventors of the Digital Camera! Or Blockbuster vs Netflix• The pace of these changes are accelerating. Groupon reached a billion dollars (US) in less than 2-years. It took Apple 8-years• If it is not broken… is now the biggest library in the world. 5-years ago would you have believed eBooks would be the dominant format? Kindle only launched in November 2007. We should always be asking ourselves this question. If we did not exist, would we build us again?• How do we prepare for change as a constant?
  10. 10. LIBRARY OF BIRMINGHAMREWRITING THE BOOK• £193 million capital project creating one of Europe’s biggest public libraries• What are the customer journeys for the public library going to be in the 21st Century?• Competitors to the ‘traditional’ public library model include Facebook, Google, Amazon, Publishers, Starbucks. GoodReads has over 7 million members contributing reviews across 250 million books. Amazon eBook sales overtook physical sales in July 2011. $9.6 billion sales per annum by 2016 (3 x higher than now)• Vision to blur the digital and physical. A space where customers can encounter digital content and ideas• Experiential space Incorporating theatre, retail, catering. A new ‘living room for the city’
  11. 11. HOUSES OF PARLIAMENTCOMMERCIAL STRATEGYHow do you exploit the untapped commercialpotential of an iconic World Heritage Site, protect thedignity of parliament and not disrupt a building whichis essential to the day to day business of state? Thiswas the challenge for CultureLabel. Some highlights:•Balance is essential but it can be done. RoyalCollection generated £41,785,000 in 2011 (£12,093,000in retail and catering)•Structure - recommended Trust status•Developing the brand•‘Premium’ aggregated London Shop with high-streetpresence utilising the Parliament estate•Tiered offers•Franchise catering, Corporate Hospitality,Membership•See for the full report
  13. 13. NEVER EVEN VISITEDTHE RISE AND RISE OF DIGITAL CULTURE• The web is already creating alternatives to the physical visit and the possibilities will only continue to grow• This will also create new revenue opportunities as many are created by or co-produced with major technology companies or well funded start-ups.• These digital encounters with culture are not better. Just different• Google Art Project is redefining how we experience visual art online• The VIP Art Fair is another example
  14. 14. SEARCH & DISCOVERYVISUAL ART• Algorithm - includes sites like that are seeking to be the Pandora or of art• Curated - sites such as offer a handpicked curatorial service to consumers• Community - Saatchi Online or Red Bubble grows its audience by allowing any artist to create a profile and upload and list work. These use filters like ‘best selling’ for example to surface the more popular works. There is often still a layer of hand curation such as in the model for T-shirts
  15. 15. CONTENTON DEMAND CULTURE FOR YOUR SMART TV• Consumers have yet to buy the 3D hype but Smart TV penetration is growing rapidly as are the use of associated streaming devices such as PS3 or Xbox 360. Netflix and LOVEFiLM are both bringing content into our homes this way• Already people are pitching business ideas for niche content. What will rise for arts programming? For example, there is already and is already offering a streaming service for arthouse lovers including films on show in its cinemas• It’s already big. 100 million people watched the Royal Wedding online• Integration of social, commerce and demise of linear programming are all happening as we speak
  16. 16. MULTI-CHANNEL CULTUREROYAL OPERA HOUSE• Taking content into cinemas but also 3D, DVD, BLURAY, CD, MP3 and online streaming• The purchase of Opus Arte brought the means of distribution in-house• Film4.0 is designed to make multi-platform the core on new production to discover new ways of making, marketing and distributing films and engaging new audiences online• See also V&A Channel and Tate Shots and the hugely successful NT Live
  17. 17. CONTENTNEW MEDIA• Cloud by Troika at Heathrow, Terminal 5 has 616,047 YouTube views and counting (as at 12/07/11). Tate is producing cinematic trailers to exhibitions• 30% of people who watch a YouTube video will share with a friend. 700 videos tweeted every min. 300 years of video viewed on Facebook every day• Using overlays on your videos so people can click through to your site is crucial• In the UK there is a YouTube non profit channel with free tools available• Where you are hosting content speed is crucial. 1 second delay = 7% loss in conversions, 16% reduction in customer satisfaction. 2-3 seconds = amount of time people are willing to wait for a web page to load. 8 seconds = amount of time most users will give your site before deciding whether to stay Cloud, Troika, Heathrow, Terminal 5, London
  18. 18. SOCIALITS GOOD TO SHARE• The phenomonal rise of websites such as Pinterest, Svpply and Tumblr tap into a trend focused on discovery and self- expression where people want to ‘follow’, ‘share’ and ‘identify’• One-way communication is dead in the digital age and passive brands are at risk. Consumers are now curators; actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences• The Guardian says its Facebook App was the top generator of traffic at times in February 2012. Six months ago, Google provided 40% of traffic• Instagram socialises photographs and allows visitors and museums to share images. Brooklyn Museum has 10,299 followers already (April 2012)
  19. 19. MONETISING SOCIALVIRTUAL LIVING• People are spending extraordinary amounts of time in these virtual worlds and social gaming experiences• The sale of virtual gifts and goods now exceeds $3 billion. That’s more than the entire confectionary spend of US cinema goers• Playmob has just raised £500,000 from NESTA for it’s giverboard software• Virtual product representations can also be used in eCommerce such as in the sale of art work in the Own Art online platform
  20. 20. DIGITAL TO PHYSICALTECH ENTREPRENEURS BLUR THE BOUNDARIES• Integration of online and offline retail technology such as eBay’s Xcommerce platform• CultureLabel has introduced touchscreen devices into venues such as the Saatchi Gallery and Barbican to enable Own Art purchases in- gallery allowing self-service and eliminating the need for paper-based applications. Interactive devices are now in multiple formats• Barcode scanning Apps by Amazon allows consumers to price check and order through their mobile• Google Goggles also leverages the collection as a potential trigger for purchase. Getty Museum partnership allows uses camera phone to identify art works• QR Codes are another way of getting additional content from physical or digital prompts such as from Google Books allowing new navigation or direct purchase such as Tesco Home Plus in Korea
  21. 21. MOBILE CULTUREDIGITAL TO PHYSICAL• The Shopkick App transforms the high street into an “interactive world using your smartphone”. It already has over 3 million active users, over 1 billion offers viewed and $110 million sales driven in its first year of operation• History Channel created a Foursquare App to ‘push’ you facts and videos on locations you visit. The more locations you discover the closer you get to the coveted Historian badge. The History Channel has signed up more than 20 UK visitor attractions all of which are offering deals to Foursquare users. There were 100,000 check-ins in the first two weeks alone
  22. 22. DIGITAL TICKETING Somerset House / Courtauld Gallery, London COURTAULD GALLERY • Introduced use of ‘airline style’ 2D barcode tickets for the blockbuster Michelangelo exhibition • Allows for sale of add-on merchandise such as catalogues • Particularly effective with targeted discounting tactics such as 10% off exhibition merchandise alongside a ticket purchase. This this has driven up the average basket order considerably …and •IT’S area will continue to grow and grow This STILL ABOUTQUALITY,as consumers seek convenience. Withyour INTEGRITY and Near Field Technologies, the ticket or context… virtual credit card can be used to pay for things inside the venue. is one of the fastest growing dot com businesses in the world and is expected to file for an IPO this year
  23. 23. AUGMENTED REALITYDIGITAL TO PHYSICAL• Holition uses Augmented Reality to demonstrate how accessories will appear on you• Working with designer-makers such as Hannah Martin• With on-demand production technologies this means you can produce a single proto- type for digital scanning so stock production risks are minimal• Allows the customer to shop from home rather than requiring the physical experience
  24. 24. THE NEW HOLLYWOODGAMING TAKES CENTRE STAGE• Call of Duty: Modern Warfare 3 made a billion dollars faster than Avatar the biggest movie ever - in just 16 days (Avatar took 17 if you are interested)• Zynga has turned social gaming into a multi-billion business publishing Facebook titles such as Farmville• Moshi Monsters is the most popular virtual world for young people with 60 million users (70% of UK children)• App games account for 64% of time spent. They have created the market of the the $0.99 casual gaming title as opposed to the triple AAA $60 releases• Tate Trumps and Race Against Time are successful examples of creating a gaming experience to develop a playful interaction with art• The Royal Opera House have recently launched an App called the Show Must Go On where the user goes behind the scenes as a venue manager to ensure a successful production as the title suggests• Serious Gaming helps solve real world problems
  25. 25. PERSONALISATIONCUSTOMISING CULTURAL EXPERIENCES• The Whitney Museum has introduced a membership scheme based around different interests• Commercial attractions such as the London Eye have created multiple personalised packages including Late Night, Champagne ‘Flights’ and themed capsules for weddings or in association with partners such as Green & Blacks for Easter• sells experiential products such as Afternoon Teas combined with tickets to major exhibitions at the British Museum
  26. 26. URBANOMICSURBAN CONSUMERS• The dramatic growth of cities is giving rise to new forms of enterprise• Urban consumers tend to be more daring, more liberal, more tolerant, more experienced, more prone to trying out new products and services• Strong affinity with cultural audiences• has grown on the back of urban consumers that match this profile and it’s expansion strategy is based on reaching more urban consumers based on a range of predominantly urban creative producers• Love Art London have tapped into the experience angle• The High Line Park Art Programme High Line Park, NYC
  27. 27. CULTURAL MASTERPLANNINGPLACE MAKING• Kinetica at Spitalfields is an example of a pop-up cultural space developed at private sector cost as part of a vision to build a 21st Century market• The MAKE building with artistic intervention by Claire Woods is one of the most viewed public art works in London• Cultural Branding of sites and place making is often driven by Private Sector consultancies such as FutureCity working with developers and architects to help them with planning gain (% for art), design differentiation, sustainable communities and place making• In the UK, the recession has greatly impacted such deals (especially outside of London). Some developers have sought to renegotiate on planning agreements to make developments financially viable. This makes it important these cultural interventions tick more than one of the boxes above to ensure they make the cut
  28. 28. SOCIAL - LITESREDEPLOY THAT MARKETING BUDGET NOW!• They are all about discovery, as consumers become curators; actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences• Accelerated and amplified by the growth of social media• Secret Cinema is a business that has grown predominantly by word of mouth using social media and eschewing all typical marketing techniques as not cost effective• It has recently moved to take on the multiplex head to head with longer running screenings in entertainment venues in multiple locations with The Other Cinema venture• Tate now has 594,075 Followers and 358,073 Secret Cinema, Lawrence of Fans. A recent exhibition discount to fans saw Arabia, Alexandra Palace London 10,000 redemptions
  29. 29. Frank’s Campari Bar,PLANNED SPONTENEITY Peckham, LondonPERMANENT POP-UP CULTURE• Live a little! A reaction against self-control and negativity created by recession norms• Explosion of pop-up culture experiences is finding more and more innovative expressions and reaches the mainstream quicker than ever• People spend more on experiences making fewer more luxurious purchases• The Museum of Everything has grown from a Frieze fringe event into a major global brand with shows at Selfridges, Tate and most recently New York• Frank’s Campari Bar is one of the best examples of transforming neglected space into a cultural experience, in this case a multi- storey carpark in Peckham, London• See also Punchdrunk & You Me, Bum, Bum Train
  30. 30. OUT OF HOURS CULTURETARGETING NEW CONSUMERS• Sleepovers at the Natural History Museum• LATES sponsored by Apple, Sony etc. and Museums at Night sponsored by SKY• Somerset House Ice-rink by Tiffany• Gigs at Eden• Culture is key to the backdrop but the experience is the draw
  32. 32. STORIFYPURPOSE DRIVEN BUSINESSES• We are selling ‘products with soul’ and we need to tell their story in a compelling way• Consumers are seeking a deeper engagement, and want products to have a story they can relate to and this coincides with the rise of purpose driven businesses• Use of video, audio, design, animation, compelling copy and editorial, social integration i.e. All Saints• Crafted, operated by the Walpole Group brings together luxury brands with craft makers• Net-a-porter App uses the luxurious real estate of the iPad to create an online magazine experience• and Etsy are great examples of wildly successful commercial organisations that impact our sector New Museum, New York
  33. 33. PASSION BRANDSBRAND EXTENSION• The V&A have taken the brand onto the High Street in an innovative way. The V&A Wine Bar combines an art bookstore and wine bar• The recession could accelerate this trend in Europe and the US as the new found power of global cultural brands could be further monetised and meet growing consumer demand and international opportunities in growth economies• Saadiyat Island in is perhaps the most high profile example to date incorporating a branch of the Louvre and Guggenheim. A careful balance will need to be struck however to protect the integrity of the brand
  34. 34. CULTURAL BRANDINGCO-PRODUCTION• Sponsorship evolved, often extremely collaborative such as the Sony PlayStation Series or Creators Project (Intel). No longer ‘lolly for logos’• Sony also worked with Punch Drunk to create a live adventure game for the launch of a PS3 title called Resistance 3• Inspiration - Toshiba are working with The Louvre to light some of it’s most iconic features with its energy saving low-CO2 LED lighting
  35. 35. ARTIST AS BRAND• Launch of• Emin International at Spitalfields, London• Rob Ryan - Ryan Town & YSP collaboration• Zaha Hadid x Design Museum• Takashi Murakami x LVMH at Moca
  36. 36. CREATIONDIGITAL CULTURE• is the first online platform allowing you to buy and sell digital art from artists including Damien Hirst and Tracey Emin• David Hockney’s used the iPad to create works for his current blockbuster exhibition at the Royal Academy• Becks Green Box Project is an AR art tour• BMW Tate Performance Room• The Space (BBC, Arts Council England)
  37. 37. …heritage is so cool again…
  39. 39. YOUTUBEMUSIC• 101 musicians from 33 countries chosen on YouTube to make up the YouTube symphony orchestra. In 2011 it converged on Sydney• YouTube extravaganza has become the most- watched live music concert on the internet displacing U2 with over 33 million views
  40. 40. LITERATURETHE APP BOOK• Waste Land has been hugely commercially success making a return on the investment only 6 weeks after release• The partner is critical. It was produced by Touchpress, the team behind Wonders of the Universe, Elements and Biophilia• Audio innovation is also occurring with Apps like Papa Sangre
  41. 41. MARKETING & AUDIENCELITERATURE• The world’s largest bookseller Barnes & Noble is fighting back head on by taking the tech giants on at their own game. Produced their own device the Nook, recognising need to create an end-to- end ecosystem. Can mirror the Apple and Amazon offer + play to their offline strengths of their customer base with the advantage of face to face contact to help orientate them. Already established partnerships with 1,000 libraries• 3M’s Cloud Library allows you to browse anywhere, read anywhere. With the 3M Cloud Library, patrons use personal accounts to access e-books on their devices. They can check out a book on an iPad, take notes while reading on a PC, and finish the book on an Android phone. The bookmark feature works across all devices, so readers never lose their place.• Kindle Fire is now a low cost alternative to the iPad• What does this mean for libraries?
  42. 42. PHYSICAL REAL ESTATEOUTDIDE OUR VENUES• New Museum x Calvin Klein• Southbank Centre Food and Retail offer includes permanent fixtures such as Foyles Bookstore and pop-up offers such as Dishoom and the Vintage Festival curated by Wayne Hemmingway• National Theatre, UK uses its building as a billboard to take advantage of innovative new projection technologies for corporate Dishoom, Southbank Centre, partners such as Travelex London
  43. 43. AFFILIATESPRICING PANDEMONIUM AND THE DEAL HUNTER• Flash sales, member sales, group activated hyper local location based, dynamic pricing• Pride in ‘deal’ hunting• Stripped down offering for price sensitive consumers where economic uncertainty has become the new normal• Groupon is the best known exponent of Group Buying• VoucherCloud uses location to offer discounts to users of it’s App• and incentivise members with timed flash sales
  44. 44. MADE FOR CHINAJUST BEING YOURSELF IS NOT ENOUGH• Its where the money is. Western brands are still favoured over local ones in areas such as luxury goods but…• The combination of perceived quality with a bit of local tailoring, love or exclusivity can provide cut through• V&A has undertaken a marketing drive in Asia with dedicated websites• Chinese residents made 30 million+ overseas trips in the first half of 2011 alone, up 20% since 2010. In comparison, US citizens made only 37 million outbound air travel trips during the whole of 2010.• It just the beginning: The World Tourism Organisation has estimated that the total number of out-bound tourists from China will reach 100 million by 2020.
  45. 45. BEYOND THE WALLSSEEKING OUT THE AUDIENCE Camp Bestival• BMW Guggenheim Lab• Grand Tour, National Gallery• Eurostar, National Gallery• Museum of Everything• Punchdrunk x Stella• Art on the Underground• Tate & The Great British Art Debate at Camp Bestival
  46. 46. NEAR FIELD COMMUNICATIONTHE END OF CASH IS NIGH• You can already get on trains, pay for coffee using this technology• The take-up is already extremely widespread in countries such as Turkey and it is only a matter or time before the same can be said elsewhere• Google Wallet allows your phone to replace an assortment of cards from Credit to ID• Nokia has partnered with the Museum of London to explore multiple ways the technology could enhance the visit once you are past the entrance. The experiments will range from getting information on exhibits, buying tickets to future exhibitions, posting ‘Likes’ to social media platforms to retail and café vouchers• Integration with Reward Cards for data
  47. 47. MOBILE CULTURECONTENT• Mobile First design is a must now (yet fewer than half of US museums currently provide visitors with an opportunity to use mobile technology during their visits - AAM, Nov 2011)• In the UK, nearly the same number of searches for ‘art’ per month on mobile as desktop• There are 5.9 billion mobile subscribers - thats 87 percent of the world population• How many of those phones are smart however? 1.2 billion of those subscribers browsing the web through their devices (accounts for 8.49 percent of global website hits and growing)• In 2012 more Android smartphones will be shipped than PCs and in 2013 Apple will reach the same milestone• “Tablets such as the iPad will outsell desktop and laptop PCs within a few years.” Tim Cook, CEO, Apple
  48. 48. MOBILE CULTUREECOMMERCE• 2009 sales were $1.2 billion. In 2015 predicted to be $119 billion. Online sales predicted to go from $210 billion to $1.4 trillion in the same period. 50% of Groupon’s business is expected to be from mobile in the next 2-years• 51% of smartphone users more likely to purchase from a mobile-specific website, yet only 4.8% of retailers have a mobile site• Don’t forget social commerce which is largely being driven by mobile devices. This is estimated to reach $30 billion by 2016. CultureLabel has just released an App that creates a Facebook shop for our members and over 100 partners activated this in the first week• We are never without a price comparison with barcode scanning Apps from eBay, Amazon etc.
  49. 49. THE CROWDFUNDRAISING• Generation ‘G’ is an online-fuelled culture of individuals who share, give, engage, create and collaborate in large numbers• ‘Generation Go’ will also create new ideas and businesses in the creative and cultural industries space. How can we tap into them?• Kickstarter appears to be able to help people raise big sums as well as small ones. In February 2012 the platform broke the $1 million barrier for two projects. It has the potential to overtake the NEA as the key arts funder with over 10% of films at SXSW and Sundance funded this way• Text giving is also being used to connect with the passion of the visit• Sites such as are allowing people to use the crowd to slash the cost of certain tasks. CultureLabel even crowd-sourced new products for Tate. The Public Catalogue Foundation and BBC tagged thousands of art works in the Your Painting’s initiative
  50. 50. CREATE A NEW BUSINESS MODELMICROFINANCE• Microfinance is another way to fund cultural output that has a commercial value. 691,072 Kiva lenders have provided $285 million in loans. The performance of these social entrepreneurs has been extremely strong to date with a 98.88% repayment rate• Cockpit Arts have taken another route by teaming up with Ingenious Media a Venture Capital Fund to provide business development finance for makers that are resident in their incubation centre• Larger sums have been raised through specialist ethical banks such as Triodos who have funded studio space development at ACME Studios in London• Commercial websites such as Saatchi Online have also raised substantial Venture Capital funding• CultureLabel benefitted from Venture Philanthropy
  54. 54. AbaF’s CultureLabel Tour#AbaFCultureLabel