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“Luxurize” is the
Next Super Size
            Andy Ford
CultureWaves®, Chief Insights Officer
        www.culturewav.es
Weather & Planet
       During the past century, the
  atmospheric temperature has risen
1.1°F and sea level has risen several
inches. Some projected, longer-term
   results of global warming include
 melting of polar ice, with a resulting
rise in sea level and coastal flooding;
 disruption of drinking water supplies
 dependent on snow melts; profound
changes in agriculture due to climate
   change; extinction of species as
  ecological niches disappear; more
    frequent tropical storms; and an
     increased incidence of tropical
                diseases.
                 - Columbia Encyclopedia, 2009
Financial Market
  Federal officials tossed
  American International
 Group another financial
 lifeline... providing up to
 $30 billion more to help
the staggered insurance
 giant deal with a record
  $61.7 billion loss in the
final three months of last
             year.                                                     Retail sales are
                                               The average
         LATIMEs.comS 3.1.2009
                                                                      estimated to fall by
                                              401(k) plan lost          4% in the first
                                               27% in 2008.
 Foreclosure activity increased by                                     quarter of 2009
                                                   - Boston Herald,
   81% 2008—Nearly 3.2 million                                             - Reuters, 1.12.2009
                                                         1.28.2009
  filings on more than 2.3 million
         properties reported.
                      - RealtyTrac, 12.2008
Job Market


       In January, the
 unemployment rate rose
to 7.6%. Employment has
   declined by 3.6 million
    since the start of the
  recession in December
 2007; about one-half of
  this decline occurred in
     the past 3 months.
- U.S. Department of Labor, 2.6.2009
And We’re Going to Serve Our
     Customers This?
How Do We Give
              Them Luxury?

    TODAY           TOMORROW

     Green            Eco-Luxury

   Abundance           Scarcity

Simple or Complex     Simplexity
Haven’t Developed a Green Strategy?




      Paper costs          “Greening
                                                                   Consumers
      and demand         MIT” Program
                                                                  steer clear of
    for foodservice       Could Save
                                                                 “greenwashing
    disposable will      the School Up
                                                                        ”
      increase by         to $400,000
     3.4% per year          per Year
                                            Colleges See
                                             a 25-30%
                                            Drop in Food
                                             Waste Per
                                            Person When
                                             Trays are
                                                           Student Select Colleges Based
                                             Removed
                                                             Upon Their “Sustainability
                                                                   Report Card”
50,000 Pounds of Trash         Coffee
Hauled Away After Each        Grounds
San Francisco Chargers        Provide
        Game                 Source for
                           Biodiesel Fuel
At the Same Time, Consumer Are Finding
     Upgrades in Unexpected Places




Hospitals Get
   5-Star
                                 “Mystery
 Upgrades
                                 Meat” No
                                  More—
                                  College
                               Cafeterias Go
                                 Gourmet
Enter Eco-Luxury


                                             Select a Live            Customers
                                          Sustainably-Raised         happily pay up
                                            Pig for Butcher                           Eco-Friendly
                                                                        to $5 for
                                                                                      High Fashion
                                                                      organic hot
             High-Rise
                                                                                        at Target
                                                                          dogs
               Urban
              Farming




                           Wal-Mart
    Poultry              Jewelry Can                 World’s First
Manufacturer             Be Traced to                 Certified
  Rolls Out              Mine of Origin              Organic Bar
Farm-of-Origin
   Labeling
Scarcity

• LTO
• Niche Foodie
• LRO
• Niche Special Needs
• POS
Scarcity: LTO
                                                                  I Left This Here for You to
                          BMW Mini EV: Some Restrictions Apply
                                                                             Read
48-HOUR T-SHIRT PROJECT




                                                   Whole Foods Brings Rare Arctic Char
                                                               to Market
                          Coca Cola Orange
Scarcity: Niche Foodie
Flavor Lab: Customer flavor     The old drinks are here
    experimentation               with him in spirits
                                                               A Brand New Breed of Burger




                                                                      Salt Gets a Shakeup
                              Elusive Foodies Can Be Reached
    Foodie Survival Kit
Scarcity: Forced Foodie
Home cooking: a resolution         Liquor stores open school of wine        2009: Year of the home cook
  that's clearly in focus




in and out list of ingredients for cooking at home              Family food feud: relearning the
                                                                 value of home cooked meals
Scarcity: LRO
                                                                                      Home team and Home brew:
                                            Custom made and limited edition gear
         Take a Foodie Staycation                                                        My Local Beer Quest
                                              Available only @ Nike Sao Paulo




Skillet: Regional Street Food with Foodie Flair


                                                     Foraging for What is Truly Canadian
Scarcity:Niche Special Needs

 energy drinks seek new niche                                     Gluten free heats up
                                   Special diets an opportunity
                                        for Whole Foods




Soft: Clothing for Children
with Sensory Disorders
                                Low GI Diet Protects Eyes
Scarcity: POS

                                                                                      Sales are like Crack
    H-Mart: A World of Bargains                Luxury Prices Are Falling
                                                                                    to Compulsive Shoppers




It May Be Time to Think About Buying a House         Sacrifice 10 friends, earn a free Whopper
Simplexity

• Simpler times and tastes
  – Classic Comfort
  – Contemporary Comfort
  – Bacon Nation

• Using only what’s necessary to achieve
 something simplistically complicated
  – Stupid Simple
  – Crowdsourcing
  – New Forms
Simplexity:Classic Comfort


                                                                   2009 will be a
                                    KFC applies original recipe
                                                                      year of
                                       to new menu items.
       Starbuck’s Oatmeal
                                                                  comfort food and
                                                                     cocktails.



  As the economy falls, classic        Punch returns in trendy
  comfort food gains popularity.        boutique restaurants.
                                                                  Comfort food begins to show
                                                                    up in Vogue magazine.
       “I would like to see
     my childhood favorites
incorporated into modern dishes.”
       CharlesnCharge84
Simplexity: Contemporary Comfort
                 Taking comfort food to new levels and forms.




Macaroni and cheese takes on                     Chips & dip get a
         new forms.                              modern makeover.




     QSR’s adding comfort
                                            Deconstructed Comfort Food
       items to menus.
Simplexity: Bacon Nation
 A national craving for a single flavor
leads to it’s incorporation into several
              food mediums.




                                       Bacon lip balm to
                               “make everything taste like bacon”.


       Bacon Flavored Gum                                            Maple Bacon Coffee
Simplexity: Stupid Simple


Utilizing the basics.



                                                     Frustration-free Packaging




                   9 Inch Plate Diet   Burgers going back to the basics.
Simplexity: Crowdsourcing
Taking ideas and opinions from consumers to create niche and regional market tastes.




     Kraft crowdsources recipes               Google crowdsources a concert
            from bloggers.                           at Carnegie Hall.




      Cowdsourced Restaurants                     Crowdfunded Breweries
Simplexity: New Forms
                         Creating new products to revitalize brands, flavors and trends.




                                                                  Microsoft launches clothing line.
                   Camel SNUS




                                                                                Digital Camera Gift Cards


Japan’s Quarter Pounder burger joints.      T.G.I.Friday’s for home cooking.
Thank You
andy.ford@culturewav.es
   twitter.com/aford

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Luxurize Is The Next Super Size Andy Ford Culture Waves

  • 1.
  • 2. “Luxurize” is the Next Super Size Andy Ford CultureWaves®, Chief Insights Officer www.culturewav.es
  • 3. Weather & Planet During the past century, the atmospheric temperature has risen 1.1°F and sea level has risen several inches. Some projected, longer-term results of global warming include melting of polar ice, with a resulting rise in sea level and coastal flooding; disruption of drinking water supplies dependent on snow melts; profound changes in agriculture due to climate change; extinction of species as ecological niches disappear; more frequent tropical storms; and an increased incidence of tropical diseases. - Columbia Encyclopedia, 2009
  • 4. Financial Market Federal officials tossed American International Group another financial lifeline... providing up to $30 billion more to help the staggered insurance giant deal with a record $61.7 billion loss in the final three months of last year. Retail sales are The average LATIMEs.comS 3.1.2009 estimated to fall by 401(k) plan lost 4% in the first 27% in 2008. Foreclosure activity increased by quarter of 2009 - Boston Herald, 81% 2008—Nearly 3.2 million - Reuters, 1.12.2009 1.28.2009 filings on more than 2.3 million properties reported. - RealtyTrac, 12.2008
  • 5. Job Market In January, the unemployment rate rose to 7.6%. Employment has declined by 3.6 million since the start of the recession in December 2007; about one-half of this decline occurred in the past 3 months. - U.S. Department of Labor, 2.6.2009
  • 6. And We’re Going to Serve Our Customers This?
  • 7. How Do We Give Them Luxury? TODAY TOMORROW Green Eco-Luxury Abundance Scarcity Simple or Complex Simplexity
  • 8. Haven’t Developed a Green Strategy? Paper costs “Greening Consumers and demand MIT” Program steer clear of for foodservice Could Save “greenwashing disposable will the School Up ” increase by to $400,000 3.4% per year per Year Colleges See a 25-30% Drop in Food Waste Per Person When Trays are Student Select Colleges Based Removed Upon Their “Sustainability Report Card” 50,000 Pounds of Trash Coffee Hauled Away After Each Grounds San Francisco Chargers Provide Game Source for Biodiesel Fuel
  • 9.
  • 10. At the Same Time, Consumer Are Finding Upgrades in Unexpected Places Hospitals Get 5-Star “Mystery Upgrades Meat” No More— College Cafeterias Go Gourmet
  • 11. Enter Eco-Luxury Select a Live Customers Sustainably-Raised happily pay up Pig for Butcher Eco-Friendly to $5 for High Fashion organic hot High-Rise at Target dogs Urban Farming Wal-Mart Poultry Jewelry Can World’s First Manufacturer Be Traced to Certified Rolls Out Mine of Origin Organic Bar Farm-of-Origin Labeling
  • 12. Scarcity • LTO • Niche Foodie • LRO • Niche Special Needs • POS
  • 13. Scarcity: LTO I Left This Here for You to BMW Mini EV: Some Restrictions Apply Read 48-HOUR T-SHIRT PROJECT Whole Foods Brings Rare Arctic Char to Market Coca Cola Orange
  • 14. Scarcity: Niche Foodie Flavor Lab: Customer flavor The old drinks are here experimentation with him in spirits A Brand New Breed of Burger Salt Gets a Shakeup Elusive Foodies Can Be Reached Foodie Survival Kit
  • 15. Scarcity: Forced Foodie Home cooking: a resolution Liquor stores open school of wine 2009: Year of the home cook that's clearly in focus in and out list of ingredients for cooking at home Family food feud: relearning the value of home cooked meals
  • 16. Scarcity: LRO Home team and Home brew: Custom made and limited edition gear Take a Foodie Staycation My Local Beer Quest Available only @ Nike Sao Paulo Skillet: Regional Street Food with Foodie Flair Foraging for What is Truly Canadian
  • 17. Scarcity:Niche Special Needs energy drinks seek new niche Gluten free heats up Special diets an opportunity for Whole Foods Soft: Clothing for Children with Sensory Disorders Low GI Diet Protects Eyes
  • 18. Scarcity: POS Sales are like Crack H-Mart: A World of Bargains Luxury Prices Are Falling to Compulsive Shoppers It May Be Time to Think About Buying a House Sacrifice 10 friends, earn a free Whopper
  • 19. Simplexity • Simpler times and tastes – Classic Comfort – Contemporary Comfort – Bacon Nation • Using only what’s necessary to achieve something simplistically complicated – Stupid Simple – Crowdsourcing – New Forms
  • 20. Simplexity:Classic Comfort 2009 will be a KFC applies original recipe year of to new menu items. Starbuck’s Oatmeal comfort food and cocktails. As the economy falls, classic Punch returns in trendy comfort food gains popularity. boutique restaurants. Comfort food begins to show up in Vogue magazine. “I would like to see my childhood favorites incorporated into modern dishes.” CharlesnCharge84
  • 21. Simplexity: Contemporary Comfort Taking comfort food to new levels and forms. Macaroni and cheese takes on Chips & dip get a new forms. modern makeover. QSR’s adding comfort Deconstructed Comfort Food items to menus.
  • 22. Simplexity: Bacon Nation A national craving for a single flavor leads to it’s incorporation into several food mediums. Bacon lip balm to “make everything taste like bacon”. Bacon Flavored Gum Maple Bacon Coffee
  • 23. Simplexity: Stupid Simple Utilizing the basics. Frustration-free Packaging 9 Inch Plate Diet Burgers going back to the basics.
  • 24. Simplexity: Crowdsourcing Taking ideas and opinions from consumers to create niche and regional market tastes. Kraft crowdsources recipes Google crowdsources a concert from bloggers. at Carnegie Hall. Cowdsourced Restaurants Crowdfunded Breweries
  • 25. Simplexity: New Forms Creating new products to revitalize brands, flavors and trends. Microsoft launches clothing line. Camel SNUS Digital Camera Gift Cards Japan’s Quarter Pounder burger joints. T.G.I.Friday’s for home cooking.