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8/9/2019 Post Consumerism presentation
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Business Models for a
Post-Consumer World
Sunday, October 16, 2011
Not concerned with how this
scenario comes to pass today, just
to describe the market differences
for you to respond to.
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CONSUMPTION!
CONSUMERISM
Sunday, October 16, 2011
Everything living has to consume.
The different is purpose.
Let!s first look quickly at
consumerism before we look at
post-consumerism.
The Duty to consume, whether out
of patriotism, pro-business, or
i l l i!
d f
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CONSUMERISM IS A FAIL
Sunday, October 16, 2011
I!ll get right to it: Consumerism is a
fail... and we need to replace it.
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Sunday, October 16, 2011
It hasn!t made us healthy.
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Sunday, October 16, 2011
It hasn!t made us wealthy (as a
whole, only for a few). Consumerism
may be a fail, but not for everyone.
We can!t afford consumerism--and
never could.
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2006, Adrian White, Leicester University's School of Psychology
1. Denmark2. Switzerland3. Austria4. Iceland5. The Bahamas6. Finland7. Sweden8. Bhutan
9. Brunei10. Canada11. Ireland12. Luxembourg13. Costa Rica14. Malta15. The Netherlands16. Antigua and Bar17. Malaysia18. New Zealand19. Norway20. The Seychelles
23. USA35. Germany41. UK62. France82. China90. Japan125. India167. Russia
Sunday, October 16, 2011
No. This graph makes it look good
since we!re in the top category but
we!re actually pretty far down the
list: 23rd!
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2009 Gallup World Poll
Sunday, October 16, 2011
Perhaps, it!s getting a little better in
5 years?
None of this is surprising to anyone
who!s got their eyes open.
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Sunday, October 16, 2011
Furthermore, consumerism has
been disrespectful...
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FURTHERMORE, IT’SDISRESPECTFUL—TO THE PLANET, TO
OTHERS WHO LIVE ON IT,
AND TO FUTUREGENERATIONS
Sunday, October 16, 2011
Furthermore, consumerism has
been disrespectful... to ourselves, to
the planet, and to future
generations.
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Sunday, October 16, 2011
The fact that we glorify it is just sad.
We don!t, as a rule, glorify other
addictions.
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Retail Therapy
Sunday, October 16, 2011
This is a result of consumer culture
(in Allan Chochinov!s terms, a
consequence).
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Sunday, October 16, 2011
Planned Obsolescence is a driver
of consumer culture--not just a
product of design, but of marketing,
operations, and finance, as well. It
may be one of the biggest drivers
of our economy, in fact.
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THE US ECONOMY IS WEAK
Sunday, October 16, 2011
But, consumerism has made us
weaker. When the imperative after a
National emergency is to go
shopping, that!s not the indicator of
a resilient economy. Who!s the
“developed” country now?
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Sunday, October 16, 2011
Consumerism is un-American ... atleast it was.
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Sunday, October 16, 2011
How did we get here? We!ve built
our economy on false assumptions
and models and we measure our
“progress” with the very tools that
cause us to make policies that make
things worse.
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WHAT DO WE DO?
Sunday, October 16, 2011
What do we do about it?
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We!re Citizens,
Not Consumers
Sunday, October 16, 2011
We even have to stop using the
word “consumer.” If we!re going to
define ourselves by our actions,
couldn!t we chose better activities?
You can use “citizen,” “people” or
“person” if you like.
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ConsumerismManufacture needs
Managerial
Liquidating capital
No regulation
Speculation“Conservative”
Private value
Sustainable experiencesManufacture offerings
Entrepreneurial
Creating capital
Enabling regulation
InvestingConservative
Public value
Post-ConsumerConsumerist
Sunday, October 16, 2011
I!m not going to address, here, how
we might get to a post-consumer
world. For now, let!s try to imagine
what it might be like?
This isn!t either-or but about the
average or zeitgeist. This relates to
Terry Irwin!s divde betweenorientations of a mechanistic to
holistic world view. We need to find
d i b l b h
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Behavior Change:
Citizens buy less.They share more.
They repair and reuse.
They sell what they nolonger need.
They DIY more.
Sunday, October 16, 2011
Post-consumers empty-out their
garages and storage units (and they
feel better for it).
They don!t DIY everything but
everyone DIYs something. People
value the homemade more (thoughmore for cultural, rather than
technological, products). This
i l d i i d
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Behavior Change:
Citizens seek experiences.They value values andwant meaning integrated.
They buy less “stuff” butmore services.
They value quality andlongevity.
Sunday, October 16, 2011
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Behavior Change:
Citizens favor their localcommunities and
businesses.
They travel less (especiallyfor business) but spend
more when they do.
Shopping " Entertainment.Sunday, October 16, 2011
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Market Change:
Glut of products (new andused).
Organizations scramble.
High competition todifferentiate.
Fewer jobs in the short-run.
Lower incomes.Sunday, October 16, 2011
Ebay explodes (even more)
What happens when your
customers stop buying things they
don't need or focus on the
products, services, and
experiences that are long-lastingand meaningful for them? Where
do you generate revenue if your
l b ff i
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Market Change:
Connection to customer iseverything > Lifestyle.
Rise of generics.
Brands must tie toperformance of meaning.
Brand loyalty increases.
Sunday, October 16, 2011
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Sunday, October 16, 2011
We!ve been here before.
Acknowledging our past isn!t
regressive We still see a
progressive future but with values
we!ve had in the past.
The values this country were
founded and built upon weren!twaste and excess. Our great
grand-parents and the Founding
F h ld b h ifi d d d
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Won’t somebody pleasethink of the companies!?
Sunday, October 16, 2011
I!m sorry if your company makes a
bunch of crap we don!t really need
or isn!t good for people. If you!re
business model requires people to
pay more than they have for
something that doesn!t last, over
and over, it!s time to innovate.Evolve or die. You need a new
business model. We all will need
b i d l dl
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Hewlett-PackardWhat does HP do when people cut-back on
printing?
Sunday, October 16, 2011
No one decries the need to save the
petticoat industry or the horse-drawn
buggies. If HP has to rethink its
printer business in the face of new
technologies, so be it. They weren!t
always in the printer business
anyway.
This isn!t just an effect of post-
i hi l b
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Rickshaw Bags:
Mass CustomizationSunday, October 16, 2011
Business Model: Mass
customization (as an option), no
returns (build to order), returnable
packaging, repairable, evolvable
(baby kit).
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Apple, Inc.
Free Services that sell ProductsSunday, October 16, 2011
Examples: Give away services to
sell product
Dematerialize everything else, build
an ecosystem, kill everyone else!s
products.
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Telcos:
Free Products to Sell ServicesSunday, October 16, 2011
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Freemium (Tiered Services)
Sunday, October 16, 2011
Still services: This is why Service
Design is so important.
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Facebook:
Be the Platform (Infrastructure)Sunday, October 16, 2011
Still selling services (or data)
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Superior Experiences
Sunday, October 16, 2011
(Whether product, service, event, or
place). This is why Experience
Design is so important!
BTW, there is always an experience,
whether you design it or not.
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Meaningful Experiences
Sunday, October 16, 2011
The best experiences of all.
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Sunday, October 16, 2011
Some Examples: We see elements
of this today. These are both post-
consumer AND more sustainable.
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Sunday, October 16, 2011
Design for Recycling (and
Upcycling)
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Sunday, October 16, 2011
Design for (deliberate) Reuse
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Play Bank: Tim Bishop, Ingrid Dragotta, Jennifer Pechacek, Nicole Trautsch
Sunday, October 16, 2011
Play Bank is a toy ecosystem that
circulates toys from children no
longer interested in them to those
who would be. Like a library and
workshop combined, children bring
in old toys and check-out new ones
and can create their own from partsin the bank. This requires a new
business model that addresses a
l i i
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Big Idea/ Panoramic After
not if.. or when... but how (beth)
Bike'Topia: Adam Dole, Beth Berrean, Henry Liu, Jason Hui, Sara Kozlowski, Ayano Hattori
Sunday, October 16, 2011
BikeTopia is an innovative bike rental system that
secures bikes via pedal vending machines, tracks
them throughout the city, and offers mobile services
for both bikers and local businesses.
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Big Idea/ Panoramic After
not if.. or when... but how (beth)
Bike'Topia: Adam Dole, Beth Berrean, Henry Liu, Jason Hui, Sara Kozlowski, Ayano Hattori
Sunday, October 16, 2011
BikeTopia is an innovative bike rental system that
secures bikes via pedal vending machines, tracks
them throughout the city, and offers mobile services
for both bikers and local businesses.
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Bike'Topia: Adam Dole, Beth Berrean, Henry Liu, Jason Hui, Sara Kozlowski, Ayano Hattori
Sunday, October 16, 2011
BikeTopia is an innovative bike rental system that
secures bikes via pedal vending machines, tracks
them throughout the city, and offers mobile services
for both bikers and local businesses.
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Small Steps: Erin Jacobs, Erica Meade, Kathryn Hautanen, Kate Ranson-Walsh
Sunday, October 16, 2011
SmallSteps helps people make small, attainable
changes in their lives to be more sustainable,
building on progress, until they reach their goals.
When they complete all four phases, they becomethe next mentors to help others through the
process.
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Small Steps: Erin Jacobs, Erica Meade, Kathryn Hautanen, Kate Ranson-Walsh
Sunday, October 16, 2011
SmallSteps helps people make small, attainable
changes in their lives to be more sustainable,
building on progress, until they reach their goals.
When they complete all four phases, they becomethe next mentors to help others through the
process.
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Urbavore: Amy Guittard, Audrey Ma, Ewa Guzek, Hannah Robinson
Sunday, October 16, 2011
Urbavore helps urban farmers, neighbors, and
restaurants find an sell the most local produce.
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Legendary: Guillaume Driscoll, Christina Goebel, Sandjar Kozubaev, Lauren Nham, Dave Reinhardt
Sunday, October 16, 2011
A new model for durable furniture
that has provenance. This isn’t
possible simply as a set of new
design or product development
processes. It’s not possible just by
adding service, either. You need to
build a new, viable, and sustainablebusiness model to make this kind of
solution work.
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Legendary: Guillaume Driscoll, Christina Goebel, Sandjar Kozubaev, Lauren Nham, Dave Reinhardt
Sunday, October 16, 2011
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Legendary: Guillaume Driscoll, Christina Goebel, Sandjar Kozubaev, Lauren Nham, Dave Reinhardt
Sunday, October 16, 2011
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Post-Consumer World:Citizens buy less.
They share more.
They repair and reuse.
They sell what they no longer need.
They DIY more.Citizens seek experiences.
They value values and want meaning integrated.
They buy less “stuff” but more services.
They value quality and longevity.
Citizens favor their local communities and businesses.
They travel less (especially for business) but spend more when they do.
Shopping " Entertainment.
Glut of products (new and used).
Organizations scramble.High competition to differentiate.
Fewer jobs in the short-run.
Lower incomes.
Connection to customer is everything > Lifestyle.
Rise of generics.
Brands must tie to performance of meaning.
Brand loyalty increases.
Sunday, October 16, 2011
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What you can do...
Sunday, October 16, 2011
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Acknowledge your Bias
Sunday, October 16, 2011
Get it down on paper, in a room, etc.
Then shut the book/door and go
meet real people with fresh eyes.
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Focus on People
Sunday, October 16, 2011
It!s never about technology. TALK to
people/your customers.
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Focus on Meaning
Sunday, October 16, 2011
... whether you!ve been asked to or
not.
If something must define us, instead
of consumerism and consumption,
why not something that actually
does: meaning.
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Accomplishment
BeautyCreation
Community
Duty
EnlightenmentFreedom
Harmony
JusticeOneness
Redemption
Security
Truth Validation
Wonder
15 CORE MEANINGS:
Sunday, October 16, 2011
More meaningful experiences aren!t
thrown-out as easily. > more
sustainable solutions and higher
customer loyalty, engagement, and
relationship.
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Do your own Research
Sunday, October 16, 2011
...otherwise, you have no idea of
where it came from, it!s validity, etc.
Don!t trust what you!re given unless
you trust the people who did the
research (and know their process).
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Find Needs, not solutions
Sunday, October 16, 2011
Sounds a lot like design thinking/
process, right?
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Turn down the wrong work
Sunday, October 16, 2011
You can use Meaning to help you
find the right customers, company,
and team. (We used to do this very
thing for projects that promoted
cigarettes, etc.) > now we should
reconsider working on projects that
promote consumerism and waste.
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Organization’sMeaningPriorities
CustomerMeaningPriorities
Team/YourMeaningPriorities
Focus
Competitors’ MeaningPriorities
Sunday, October 16, 2011
Now, you have a place to start
focusing on meaning. This is what
drives the design.
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Focus on the experience
Sunday, October 16, 2011
When you find the right experience,
you uncover the best opportunity.
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Be aware of the business
Sunday, October 16, 2011
You can!t see the opportunity if you
don!t see the system or understand
the business. You don!t have to be
an expert in business but you need
to see where and how the money
flows through the experience.
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Design the Business Model
Sunday, October 16, 2011
Business Models are
designable ...not merely the
outcome of other business
processes.
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Design New Metrics
Sunday, October 16, 2011
Gross National Happiness, Genuine
Progress Indicator, others. These
are projects that need designers to
develop and communicate how they
work, what they measure, and why
they!re better. Economists need our
help.
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You’re holding a handbook for visionaries, game changers,
and challengers striving to defy outmoded business models
and design tomorrow’s enterprises. It’s a book for the…
written byAlexander Osterwalder & Yves Pigneur
co-created byAn amazing crowd of 470 practitioners f rom 45 countries
designed byAlan Smith, The Movement
Sunday, October 16, 2011
This approach has been growing
since the publication of this crowd-
sourced book.
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The Business Model Canvas
CostStructure
Key Partners
Key Resources
Channels
Key Activities
Value Proposition
Customer Relationships
Customer Segments
RevenueStreams
www.businessmodelgeneration.comSunday, October 16, 2011
It describes a business model
canvas. Download a PDF for the
first 72 pages of the book (and the
canvas).
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www.cca.edu/academics/graduate/design-mba/open
DELIVERYRESOURCES
OFFERPRODUCTIONORGANIZATIONDESIGN
NETWORK/ STAKEHOLDERS
FINANCE
INTENT
EXPERIENCE
BRAND
VALUE
VALUE
INTENT
EXPERIENCE
OFFER
DELIVERY
PRODUCTION
RESOURCES
NETWORK/ STAKEHOLDERSFINANCE
ORGANIZATIONDESIGN
VALUE NEEDS
TACTICS/IMPLEMENTATION(INDUSTRY CONTEXT)
CUSTOMER(MARKET CONTEXT)
STRATEGY(VISION)
t , , t , t . , t ,
t t t t
tt tt t t t , ,
: t t t
t t t t t
t t
t t t
Sunday, October 16, 2011
We!ll be discussing an even newer
model today: The Dynamic Value
Model, developed at CCA in the
Fellows Program. Slightly more
complex, integrates a few more
areas. Templates for you to use
today.
This model doesn!t, by default,
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C U S T O M E R
I N T E R N A L
( O R G
)
NEEDS
www.cca.edu/academics/graduate/design-mba/openSunday, October 16, 2011
Customer and customer needs are
front and center (where they
belong)—especially in an
increasingly customer-driven
market.
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C U S T O M E R
VALUE
I N T E R N A L
( O R G
)
EXPERIENCE
DELIVERY
PRODUCTION
NETWORK/
STAKEHOLDERSFINANCE
ORGANIZATION
DESIGN
RESOURCES
INTENT
OFFER
www.cca.edu/academics/graduate/design-mba/openSunday, October 16, 2011
Only by thinking holistically,
systemically, can we develop
elegant innovations that respond to
actual customer needs.
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C U S T O M E R
VALUE
I N T E R N A L
( O R G
)
EXPERIENCE
DELIVERY
PRODUCTION
NETWORK/
STAKEHOLDERSFINANCE
ORGANIZATION
DESIGN
RESOURCES
INTENT
OFFER
www.cca.edu/academics/graduate/design-mba/openSunday, October 16, 2011
Value emerges as a result of
business activities. This isn!t
something declared but something
derived.
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C U S T O M E R
I N T E R N A L
( O R G
)
NEEDS
www.cca.edu/academics/graduate/design-mba/open
BRAND
Sunday, October 16, 2011
Brand, too, is emergent, as it!s a
shadow of the organization seen
and felt by customers through their
experience. We!re not going to
focus on this today.
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www.cca.edu/academics/graduate/design-mba/open
DELIVERYRESOURCES
OFFERPRODUCTIONORGANIZATIONDESIGN
NETWORK/ STAKEHOLDERS
FINANCE
INTENT
EXPERIENCE
BRAND
VALUE
VALUE
INTENT
EXPERIENCE
OFFER
DELIVERY
PRODUCTION
RESOURCES
NETWORK/ STAKEHOLDERSFINANCE
ORGANIZATIONDESIGN
VALUE NEEDS
TACTICS/IMPLEMENTATION(INDUSTRY CONTEXT)
CUSTOMER(MARKET CONTEXT)
STRATEGY(VISION)
t , , t , t . , t ,
t t t t
tt tt t t t , ,
: t t t
t t t t t
t t
t t t
Sunday, October 16, 2011
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Case:
SOLID STATE SHOES
Sunday, October 16, 2011
What does a <fashion> company do
when fewer people buy fewer goods
they don!t need?
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• Customers want new anddifferent (non-mainstream)• Increasingly “local” andsustainably aware• Say that quality is important• Have many pairs of shoes• High loyalty
Sunday, October 16, 2011
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• Increased scarcity and cost ofquality ingredients
• No significant IP or processes• Lot of material waste• Strategic partnership for leather
• Deliver to wholesalers• No end-user customers• Global supply chain• High inventory costs (sizes)• Fulfill seasonally (sell forward)
• 100% Family-owned• High margin, low volume• Tax-incentives for US jobs• Desire to double sales andincrease profit by 20%
• Med. fixed & high var. costs• Lots of returns• Growth funded by profits
• Quality, respected brand• Family-owned• Heritage, Integrity, Pride,
Craftsmanship, Distinction
• No direct sales: boutiques,high-end stores
• Great customer service (customers feel catered-to)• Enduring style, not trendy• Personal shopping inboutiques
• Limited editions in Collette
• 30% Manufactured in USA and Canada• 70% in Turkey, Bulgaria, and Southeast Asia• Standard production methods• Some specialized training• Subject to worker issues in SE Asia and increased regulat.
• Design is driven internally,not involve manufacturers,customers and buyer
• No CSR strategy• No NGO partnerships• Lots of competitors• Noisy, fragmented market
• Designers disconnected fromoperations decisions
• Constrained logistics team• Light market research• Outsourced IT, production• High training and manag. costsof internal customer service
• Inefficient internal controls anddecision-making
• Wide product style range
• Accessories as well as shoes• No other benefits (no events,places, etc.)
• Standard customer service
Sunday, October 16, 2011
8/9/2019 Post Consumerism presentation
http://slidepdf.com/reader/full/post-consumerism-presentation 74/74
That!s it
(for now)
Sunday, October 16, 2011