Remote working doesn’t need to affect innovation, new research reveals

Employees that work from home are unlikely to be less innovative, according to new research by the University of Cologne and the Leibniz University Hannover.

The study, conducted by professors Marina Schröder and Bernd Irlenbusch, found that video conferencing among team members can compensate possibly negative effects on innovation when employees work remote from each other.

Remote working can combine the best of both worlds – an increase in productivity as most employees have less distractions and high level of usefulness as video conferencing allows employees communicate as if they’re in the office.

“Previous research has shown that creative performance is significantly lower when there is no face-to-face communication, however, the current lockdown has fostered the adoption of new technologies to conduct collaborative tasks when team members work from home. Video conferencing can mitigate the gap in creative performance,” says Professor Irlenbusch. 

The study compared face-to-face communication, video conferencing and communicating over chat to see how remote working will affect creative performance. The results speak to the question of how organisations should design their communication during the COVID-19 pandemic.

The findings revealed that communicating over “chat” significantly reduced the usefulness of innovative ideas as well as the share of extremely innovative ideas often resulting in product breakthroughs. In these respects, face-to-face communication and video conferencing showed no differences.

“Innovation is rarely an individual task, it often needs team collaboration, which can be effected greatly by the current circumstances of everyone working remotely. Organisations need to enable their employees to communicate with the right media to get the best out of them,” says Professor Irlenbusch. 

Read about the paper by clicking on this link:  ‘Innovationand communication media in virtual teams – An experimental study.’

More than half of 25 to 34-year-olds buy second-hand clothes, say Mintel market experts

Britain’s thrifty young fashionistas are buying, selling, mending, swapping and renting their clothes, according to the latest research from Mintel.

Illustration: meidea.it on SS2021 trends
shown during Denim Premiere Vision - London 

‘Thrifting’ is the way forward among young British fashion shoppers, as Mintel research shows that in the last year alone over half (52%) of those aged 25 - 34 bought second-hand clothes, compared to an average of 43%.

Young Brits are turning their old clothes into hard cash, with 50% of 25 to 34-year-olds selling unwanted clothes in the last year, compared to 35% of consumers as a whole.

And in the spirit of ‘make do and mend’, half (50%) of 25-34-year-olds have repaired damaged or worn-out clothes.

Illustration: meidea.it on SS 2021 trends

‘Swishing’, the act of swapping clothes with friends or acquaintances, is also becoming on-trend, particularly among young people.

Three quarters (75%) of 16 to 24-year-olds say they either have swapped fashion items with others or would be interested in doing so in the future. This compares to an average of just 51% of Brits.

Meanwhile, looking at the habits of fashion shoppers, Generation Z (16-24-year-olds) is the demographic group most likely to use rental services, with 54% saying they have rented or would be interested in renting fashion items, compared to an average of 33% of Brits. Overall, 57% of Brits agree that buying too many fashion items is bad for the environment.

Chana Baram, Mintel Retail Analyst, said:“The idea of ‘reusing, reducing and recycling’ has the potential to be a big disruptor in the fashion industry. Young shoppers seem to be emulating their grandparents, who were forced to ‘make do and mend’ during World War II. As the climate crisis continues to gain headlines, consumers’ perspectives are shifting. It’s no longer enough for clothing to be priced well, or to reference the latest trends; fashion brands and retailers also have to think about working towards a goal of providing more sustainable options. Many young people today are likely to be  influenced by the ‘Attenborough’ or ‘Greta’ effects, and are becoming far more aware of the negative effects fast fashion can have on the environment. As a result, we have seen a real increase in the number of businesses and retailers offering repair services, second-hand items or rental options.”

Some Christmas retail cheer: Mintel forecasts growth of 4% for UK sales in December

With the Christmas countdown in full swing, retail researchers Mintel is forecasting some festive cheer for Britain’s retailers. Latest findings predicts that December’s retail sales will reach £47.7 billion (incl. VAT), growing a respectable 4% compared to last December, when sales hit £45.8 billion.  

Coal Drops Yard new shopping mall - a stunning new favourite retail destination in King's Cross, London, near Granary Square. 

Photos © Lucia Carpio

Sales through non-food retailers are expected to reach £23.5 billion (including £4 billion from online sales generated by physical stores); while food retailers will enjoy sales of £18.6 billion (including £1.4 billion from online sales generated by physical stores). And in the battle between the clicks and bricks, Mintel estimates that internet pure players (online only retailers), will account for £5.6 billion worth of sales.

Mintel December 2018 retail forecast: Non-food retailers (stores + online)  £23.5 bn Food retailers (stores + online)  £18.6 bn Online pure players  £5.6 bn  Total  £47.7 bn With online sales generated by physical non-food and food stores estimated to hit £5.4 billion, combined with the £5.6 billion generated by internet pure players, Mintel expects total online sales this December will be worth £11 billion.   Caravane, one of the upmarket retail shops in Coal Drops Yard, King's Cross, London Richard Perks, Director of Retail Research at Mintel, said: “We think that retailers can look forward to a reasonably good Christmas—not outstanding, but it won’t be bad either. While there are some reasons to be cautious, such as falling consumer confidence, there is no real sign of an underlying slowdown in retail sales growth. Retail sales have held up well this year and we expect the recent momentum is likely to be maintained, with retail sales growing at about 4% both in the final quarter of 2018 and in December itself. “While there’s been much talk of how the High Street is being undermined by online retailing, it still only represents a relatively small part of overall retail sales, with most shopping still taking place in physical stores.” Black Friday still stokes interest, but most Brits think discounts are overhyped Black Friday is now well and truly entrenched in the shopping calendar. According to Mintel research, last year nearly six in ten (57%) Brits browsed for goods during Black Friday promotions, while 41% made a purchase during the event. It’s proving a big hit with the nation’s 25-34s, of whom 75% said they browsed for goods and 62% made a purchase. While Black Friday has been synonymous with scenes of crowding bargain hunters, last year just 16% of Brits engaged with the event in-store, with the majority of shoppers engaging online  (56%). Electrical goods were the most  popular purchase, bought by 51% of Black Friday consumers in 2017, followed by fashion, which was purchased by 42% of these consumers. Overall, half (51%) of last year’s Black Friday shoppers said the majority of the purchases they made during the promotions were Christmas gifts. Meanwhile, a savvy six in ten (61%) Black Friday shoppers said they waited for the Black Friday promotions before making a purchase. However, despite the hype, some cynics remain as 66% of 2017 Black Friday shoppers felt the discounts were not as good as they’re made out to be. “While Black Friday has become a high profile retail fixture, retailers do run the risk of bringing forward festive spending, but at discounted prices. There is always a fear of missing out, so the actual outcome is the big unknown for how the retail sector will perform this Christmas. Given some evidence of growing disillusionment among shoppers for Black Friday, Mintel predicts that retailers would like to pull back from promotions for this event. We think that this year’s event will be no bigger than last year’s, and that means good news for the amount of money left over to spend in December.” Concluded Richard.

Photos by Lucia Carpio.

Britons spend more on fashion than the French, says report

British fashion shoppers rank eighth on a list of heavy spending consumers in Europe with £1,000 spent annually on clothing and shoes on average, according to an article in Fashion Network reporting on figures obtained from EU statistics agency Eurostat.

Ranking above the UK are Estonia, Portugal, Italy, Austria, Lithuania, Latvia and Luxembourg.  

Putting UK eighth position at the top third of a list of 26 countries, the UK is also ranked much higher than French shoppers who are often regarded as more fashion-concerned.  

The French reportedly spend £600 a year but rank 23rd on the list, above only Hungary, the Czech Republic and Bulgaria.

The gap between neighbouring British and France has widened in the past decade with Britons spending 5.6% of their household budgets on fashion in 2016, which was 0.5% higher than in 2006. The French at the same time spent 3.8% of their household budgets, a fall of 0.8% over the same 10-year period.

Of course, a lot of what Britons buy goes unworn.  The article also pointed out that according to a recent survey by Weight Watchers showed that UK women and men have around £10 billion of unworn clothing in their drawers and wardrobes, or around £200 per adult.

We are entering the age of the aged, say new reports.

The world of fashion modelling is continuously evolving, reflecting society and economic trends.   London-based MOT Models, a leading model agency in Europe, has set up a new division called RETRO in response to latest developments that the post-war baby boomer generation is leading the way in the world of luxury purchases.

MOT MODELS: Two of their top models in the new RETRO division: Remco (43) and his father Aad Van Der Linden (72) are often featured in photoshoots for brands and retailers. 

Photo by Thomas Kettner.

Indeed, baby boomers (people born between 1945 and 1960 - as defined by the 2016 Mary Keener Internet Trend Report) are part of a global shift in consumer trends.  Brands and advertisers are interested in targeting mature customers thus they look for models who are real life characters with laughter lines, true life skills and also showcase the brand’s sophisticated qualities.

This latest development at MOT Models emerged just days after  Sun Branding Solutions - consultants of brand and packaging - have released a new whitepaper on the many challenges and opportunities presented by an ageing population that face brands, marketers and designers today.

Entitled Age Repackaged, the whitepaper offers some insight into how brands and retailers can learn from, and tap into, this powerful, growing market, according to Group commercial director Sonia Whiteley-Guest.

Indeed, the latest Family Spending report confirmed that one of the most important trends to hit retailers in the past decade shows a spending shift to the over-50s.

As the study from Sun Branding Solutions has revealed, brands and retailers focusing on millennials should remember that the over 65s will be the fastest growing consumer group this century.  In the UK today, there are 11.6 million over 65s (almost 20% of the population) holding over 80% of the nation’s wealth, according to the report. (Click HERE to read the full report.)

These ‘boomers’  are outweighing the under 65s by 3 to 1, and life expectancy is growing by five hours every day (The Guardian).

We are officially entering the age of the aged.

Globally, consumers 60 and over are expected to spend $15 trillion by 2020, according to a recent report from the Bank of America, and that this age group is more likely to buy into marketing and advertising than their younger counterparts – as long as brands get it right.

With the over 65s due to increase by more than 40% in the next 17 years, retailers and marketers need to focus on how to design and target their products for an agening population, looking into product development, pack structure and design, that can actually offer a better experience not just for this age group but for everyone, according to Sun Branding Solutions.  Their whitepaper shares insight from a diverse mix of experts, focusing on what our ageing population wants and needs and why developing by demographic just doesn’t work these days.

Back to the growing need for setting up a new division RETRO of more mature models, founder of MOT Models, Helen Illes, explains: “Today it is those aged between 50 and 70 who have true spending power. The post-war generation continues to explore exciting activities and wants to dress with style. Younger generations are struggling to make ends meet.

“Due to this, we are experiencing a shift with big brands who are looking for real life characters with true life skills. RETRO includes internationally renowned models with timeless appeal who have the personality, style and charisma to support big brands. These models must reflect the customers and showcase the brand’s sophisticated qualities. Advertisers need individuals who won’t be eclipsed by big brands.

Hellen Illes added, “The over 40s of previous generations instinctively behaved like older people with a set uniform of perms and pearls. This is no longer the case. The post-war generation have changed the whole of society wherever they hit with positivity at their heart. A perfect example is Joanna Lumley, who recently turned 70 and continues to be a style icon. The model industry reflects society and economic trends. Television, films and adverts for big ticket items are today geared towards the older demographic.

“Mature models represent the values of having fun, looking good and enjoying life at a time when previous generations would have slowed down. We are seeing baby boomers challenging stereotypes and taking part in extreme activities. Instagram is a great example."

Over 40% of Millennials will gift digitally this Christmas, reveals new research

New research from the UK Gift Card & Voucher Association (UKGCVA) has shown that Millennials are pioneering the idea of ‘digital gifting’ this Christmas, with over 40% of Millennials planning to gift digitally through gift cards and vouchers this Christmas.

Londoners are the most tech-savvy gifters according to the research, with over a third (35%) intending to gift digital gift cards and vouchers this year.

The research, conducted by Verdict Retail, found that Millennials are the age group most likely to gift digitally this festive season, with less than a third (29%) of Generation X and even fewer Baby Boomers (17%) stating that they plan to do so.

The Christmas spirit also encourages consumers to gift digitally, with over two thirds (68%) stating they are most likely to purchase a digital gift card or voucher for someone during this period.

Londoners are the most tech-savvy gift buyers according to the research, with over a third (35%) of consumers in the capital planning to join in and gift digitally this festive season.

Gail Cohen, Director General of the UKGCVA, comments: “As Millennials are the most likely to purchase digital gift cards and vouchers during the festive season, retailers and other issuers of these products should look to targeting this sub-group with their gift card marketing strategies this Christmas.
Our research also found that Millennials are the most likely to purchase digital gift cards and vouchers full stop. As such, retailers need to be aware of this pattern when developing their marketing strategies, not only at Christmas, but year-round.”