Tagged 'DIY'

iSold.com positions itself as alternative to real estate agents

isoldHome improvement retailers have been hawking DIY as an empowerment tool for some time, but the downturn has seen some other brands looking to the same strategy. Consider iSold.com. The U.K. real estate service, backed by supermarket chain Tesco, is offering a package that includes home valuation, online and print advertising, and agent-led open houses for £999 and up. The service aims to straddle the line between pure online selling—via eBay, for example—and agent-lead sales. Considering that U.K. real estate agents earn 1.5 to 2 percent on each home sale, according to the iSold site, the package could save sellers thousands of pounds. Home owners are responsible for negotiating selling prices and meeting with prospective buyers, but that could be a good thing for iSold. Owners made to feel helpless by the recession might like a turn in the driver’s seat.

Photo Credit: http://www.isold.com/

Spain’s real estate crisis stirs rise of the brand store

casa-knoor-banner2In Spain, the downturn has not yet slowed, and the economy is still under a dark cloud. Brands are feeling this lack of oxygen, and new campaigns are few and generally conservative. One area where we’re seeing some activity is brand stores. This trend is being accelerated by the real estate crisis, which has created lots of cheap opportunities. Finally brands are playing with shops as experience spaces for consumers.

First, Danone opened up a store in Barcelona, a huge yogurt bar and restaurant project. Now Casa Knorr has launched in Barcelona and Madrid, with free cooking and nutrition workshops for kids and adults, as well as product tastings. Workshop attendees will learn to put together a weekly menu and prepare healthy snacks, and even be accompanied on instructive supermarket shopping trips by a chef and dietitian.

These consumer experience labs are a smart investment. It will be interesting to see whether they become a permanent part of the marketing mix once the downturn ends.

Photo Credit: www.knorr.es

DIY guy gives Austria’s bauMax a boost

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The DIY category tends to benefit from downturns, since many people prefer to save money by doing repairs and renovations themselves. Plus, since people tend to cocoon rather than go out, they want to make their homes as pleasant as possible—focusing on family needs and the home is seen as a solid investment.

So bauMax, an Austrian-based chain in Central and Eastern Europe that’s akin to Home Depot, was clever to revive its Selfman hero, who guides ambitious DIYers via a series of How-To videos. Each video segment is several minutes long and embeds advice and instructions within a humorous plot; a handy list of tools needed for the project is also included. The result: While the DIY industry in Austria had a sales decline of 1.6 percent between September 2008 and June 2009, bauMax sales increased 1.5 percent.

A Facebook marketplace rises in Egypt

2fbookCairo’s newest consumer trend is the rise of a Facebook marketplace, with people selling everything from used books to jewelry to designer fashions from Paris via Facebook groups. In a struggling Egyptian economy, many retailers have been forced to increase their prices. So people are drawn to some of the bargains on Facebook (one seller is offering designer handbags for 20-30 percent less than the original price), as well as the ability to select items from the comfort of their own homes. Online shopping has never been much of an option here in Egypt—there aren’t many domestic online retailers, and buying from abroad entails paying high customs fees and involves credit card complications. Facebook has therefore provided Egyptians with a local online shopping option. While this heralds trouble for shops and upscale department stores, Facebook represents a massive opportunity for entrepreneurial individuals taking a chance on a sleepy retail market.

The Rise in DIY

thumbnails_diyDIY isn’t just what you do after a shopping spree at IKEA. Today, do-it-yourself is influencing a range of categories, including entertainment, food, beauty and fashion. From locals organizing and promoting their own parties and events to teens formulating at-home beauty treatments, the ethos of DIY is becoming increasingly pervasive.

A confluence of factors is shifting this movement from the fringe to the mainstream, chief among them the anxiety brought on by the Great Recession—DIY is simply cheaper than the alternatives. DIY also seems like the savvy, even chic thing to do at a time when frugality and anti-consumerist sentiment are proliferating. The Internet is also a key factor, helping DIY-ers learn from and inspire each other. And in a world where mass-produced goods dominate, DIY allows for a sense of discovery and a way to stand out from the crowd.

Our latest trend report explores how DIY ideas and attitudes are affecting consumer behavior and purchasing habits in a range of categories, and looks at what it means for brands and marketers. You can download the report from our Trends and Research page.

A creative approach to the financial crisis

dawandaDaWanda was one of the first innovative Web 2.0 marketplaces hosting professional and amateur designers selling their crafts—an online flea market similar to Etsy.com and various other me-too sites (Guzuu, Artfire, ShopHandmade, Mintd, Winkelf and so on). Recently DaWanda, which operates in the U.K., Germany and France, issued a “financial creativity challenge” to sellers: Produce handmade goods that use the theme “finance” in a fanciful way. It’s a creative way to get some buzz for DaWanda, and a good way to strengthen its bond with customers and attract sellers at a time when more people could use a little extra income.

How vitamin C got hot among Filipino street kids

nutri-c-as-vitamin-energy-drinkTalking to consumers one hot day in a lower-income neighborhood of Manila, we stopped by one of the street stores called “sari-sari” (roughly translated, “we sell all kinds”) for refreshment. Excitedly, the storekeeper offered us the hottest drink among the street toughs—Nutri-C, a do-it-yourself, two-in-one energy drink/vitamin C concoction.

Here’s how it works: For three pesos (roughly 75 American cents), you get a small 12 gram sachet of powder. Then comes the DIY part: Mix this with the small bottle of drinking water you brought from home, and voila! You get your daily portion of vitamin C (or so says the label). And because the DIY mixing requirement mimics how adults drink the energy beverage Extra Joss, my street kid informer noted, “It feels like it is not just my vitamin C, it is also my Extra Joss!”

Consumers will improvise and mix their own in a recession—how can brands take advantage of their desire for involvement?

Amid swine flu scare, Mexican brands avert a crisis within a crisis

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Sometimes one crisis can hide within another, and sometimes a crisis can actually provide an opportunity. Since the N1H1 flu (i.e., “swine flu”) virus hit Mexico, it has had a major impact not only on day-to-day life but also on Mexicans’ mood. An intense culture of caution emerged overnight in Mexico City: face masks, companies operating at half-speed, not to mention closed schools, universities, restaurants, cafés, cinemas, parks and museums.

The prevention campaign crystallized when the government declared five days of closing all non-essential business, virtually grinding the economy to a halt. In a message to the people, Mexican President Calderón suggested, “Stay home; it is the safest place you can be. Take this opportunity to spend time with your family and to do housework.”

mexico_impacEven as the crisis was affecting most businesses, it became clear that this was an opportunity for others. A few days after the president’s speech, a newspaper ad for IMPAC, one of the biggest paint shops, read, “Quarantine? Take the opportunity to waterproof your home in the next few days.” Comex, another paint supplier, also urged consumers to do some home improvement: “This weekend, make a new home out of your house. Make a new look for your home.”

As the health crisis has unfolded, a larger economic crisis has resulted as Mexican businesses have been forced to keep workers at home during the government-mandated quarantine. But even during a crisis, new opportunities can arise.

Thai women turn to homemade beauty treatments

thai-homemade-beautySpurred by limited budgets, a revival of interest in tradition and a new affinity for natural products, more women here are using everyday supermarket items to make homemade beauty products. They are using traditional formulations for nourishing hair, skin, nails, etc.—passed down through the generations—or coming up with their own and sharing them among friends. The modern twist? Web sites and blogs that bring these beauty secrets to a wider audience.

While this trend poses a challenge to established beauty brands, those that focus on natural beauty and/or ingredients at recession-friendly price points could benefit. DIY beauty can be fun for a while, but the time-strapped consumer will come to appreciate the convenience of a packaged product.

7-Eleven Philippines serves up a daily pleasure

brewed-pleasure_manilaThe recession opens up opportunities for brands to identify gaps in the market and create products that provide affordable indulgence. Here’s one good example:

In this country, a sachet (single-dose pack) of Nescafe Instant Coffee is the common waker-upper, while brewed coffee remains an indulgent luxury for many. 7-Eleven Philippines, which used to offer only vending-machine-type instant coffee, is attempting to fill this gap with brewed coffee priced at 35 pesos a cup (roughly 72 cents). By comparison, Starbucks sets you back at least 90 pesos ($1.85).

The catch: DIY. You pour your own brew from the coffee machine and put on the cover and sleeve. The silver lining: Unlike Starbucks, where you wait for your barista, here you pay, DIY-assemble and you’re off.

7-Eleven’s coffee has proved popular among the office crowd, even in Makati streets, where convenience stores are side by side with Starbucks. In offices we visited, 7-Eleven’s coffee cup was as prevalent as Starbucks’ green and white cup.