1 DEBORAHWEINSWIG,EXECUTIVEDIRECTOR–HEADOFGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
February 23, 2016 DAY 3
• Industrywilllooktotechnologyinordertoreturntothekindofproductivitygainsseenpriorto2011.
• Mobileadvertisingpresentstwomainchallenges:accuratelymeasuringreturnoninvestmentandcreatingadsthatreallyworkonmobiledevices’smallscreens.
• Fossil isamongthefashionaccessoriescompaniesthatarepushingintowearabletechnology;inthenot-too-distantfuture,allFossilwatcheswilllikelybeconnectedinsomeway.
• Near-field-communication (NFC) labels mean the future may not belong to theInternet of Things, consisting of complex devices, but to the “Internet ofEverything,”inwhichanyobjectcanbecomeconnectedthroughanNFClabel.
INDUSTRYSEESPRODUCTIVITYANDSERVICEGAINSFROMTECHNOLOGYTheimpactofmobiletechnologyaimedatconsumerstendstograbtheheadlines.Butaswe noted yesterday, industry is set to capture some of the gains from themobilerevolutionandtheInternetofThings(IoT).
DaytwoofMobileWorldCongress(MWC)2016beganwiththistheme.GEDigitalCEOWilliamRuhclaimedthat,althoughtheconsumerInternetboomedandevolvedinthelast decade, the industrial world did not take advantage of the Internet “in anymeaningfulway.”However,itwillseektodosointhecomingyears,Ruhsaid.Henotedthatannualproductivitygainsaveraged4% in the industrialworld from1990to2010,butthattheratehasfallento just1%since2011.Asfirms looktorecoverthosegainsseeninearlieryears,theywill looktotech. Inshort,Ruhsaid,firmsthatare industrialcompaniestodaywillwakeupassoftwarecompaniestomorrow.
ChuckRobbinsandRichardFainalsotookpartinthediscussion:
• ChuckRobbins,CEOofCisco,notedthatthedigitalrevolutionisspurringcountries,citiesandcompaniestorethinkestablishedmodels,fromtransportationmodelstoskillsmodelstobusinessmodels.
• RichardFain,CEOofRoyalCaribbeanCruises,saidthattechnologyisnotreplacinghumaninteractionwithcustomers:bytakingonmundanetasks,technologyallowshiscompany’semployeestospendmoretimewithcustomers.
2 DEBORAHWEINSWIG,EXECUTIVEDIRECTOR–HEADOFGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
DAWNAIREYANDSIRMARTINSORRELLAkeynotesessionfeaturedtwobignamesfromBritishmedia:DawnAirey,nowCEOofGettyImagesandformerlyofBSkyB,ITVandChannel5intheUK,andSirMartinSorrell,CEOofWPP.
Airey, in conversation with Ina Fried from Re/code, focused on the revolution inphotographythathasbeenspurredbythesmartphone.Globally,2billionpeoplenowhavecameras,Aireynoted,themajorityofwhichareinsmartphones.Andaround25%ofthephotographyGettynowacquiresareimagestakenonphones,shesaid.Lookingahead,Aireypredictedthatimmersivephotographyandvirtualreality(VR)are“justthebeginning.”Getty has been shooting 360-degree photography since 2012, and is nowsupplyingVRfirmOculusRiftwithvisualcontent.
Sorrell focused on what the mobile revolution means to advertising. He noted thatadvertisers have generally underinvested inmobile: the revolution has not registeredyet,hesaid,althoughsome“longtail,”smallerfirmshaverecognizedthesignificanceofmobileaheadoftheirlargercounterparts.
Sorrellsaidthatadvertisingonmobiledevicespresentstwoproblemsthatstillneedtoberesolved:First,companiesmustfigureouthowtomeasuretheirmobileadreturnoninvestment.Andsecond,theymustfigureouthowtotakeacreativeapproachgiventhesmallscreensizeonmostmobiledevices.
LikeAirey, Sorrell concluded thatVR is the theme that “keepson coming through”atevents suchasMWC.The impact itwillhave in sportsandentertainmentviewing,hesaid,willbesubstantial.
3 DEBORAHWEINSWIG,EXECUTIVEDIRECTOR–HEADOFGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
WEARABLESINTHESPOTLIGHTAtasessiononwearabletechnology,weheardfromUnderArmour,FossilandOMsignal:
• UnderArmourpresented itsHealthBoxproposition,which includesahealthbandthatmeasuressleepandheart rate,connectedweighingscales,andamobileappthattrackstheuser’sdiet—allofwhichisbroughttogetherviatheUARecordapp.A “hyper-personalized experience integrated into Under Armour products is thefuture,”claimedChiefDigitalOfficerRobinThurston.
• Fossildemonstratedhowitismovingintotechnologywithsmartwatches,“smarter”watchesandfitnessbands.Thecompanyismakingbiginvestments,includinghiring200techstaff,tobringitsstylecredentialsandbig-namebrandstothesecategoriesofwearables.GregMcKelvey, Fossil’s Chief Strategy andDigitalOfficer, predictedthat all the company’s watches “will be connected in someway…in the not-too-distantfuture.”
• Stephane Marceau, CEO of OMsignal, said that the “number one secret” of thewearablesmarket is thatconsumersbuy fashion first.Marceauclaimed there isapyramidofconsumerdrivers,thefoundationofwhichisfashion.Thehigherlevelsofthepyramidaretechbased.Thenextgenerationofwearables,heforecast,willbefocusedonwell-beingandmindfulness.
DAYTHREEWRAPSUPWITHSESSIONFOCUSEDONRETAILThe final session of day threefocused on retail, and on theconvergenceofphysicalanddigitalretail, in particular. In the session,we heard how Toys “R” Us isbringing tech into its stores withmagicmirrorsand“wishingwands”thatallowkidstoscanproductstobuild their own wish lists. Thecompany’s app focuses on“micromoments” designed tocreateaconnectiontothein-storeexperience.“In-storemomentscanbewonoutside thestore,” saidVictorOrtiz, thecompany’sDirectorofMobileRetailEngagement.
The micromoments discussion was continued by Davor Sutija, CEO of Thinfilm, acompany that manufactures NFC labels for brand owners. Sutija made a convincingcase that the futurewill notbe somuchan Internetof Things consistingof complexdevices,butan“InternetofEverything,”inwhichanyobjectcanbemade“smart,”orconnected,viaasmallNFClabel.
Diageo isalreadyusingThinfilm’sNFC labelson its JohnnieWalkerBlueLabelwhiskybottles, and Sutija noted that other beverage companies, including wine firms, arestarting to deploy this technology. In conjunction with information submitted byconsumers,NFC labelsallowbrandstocreatepersonalized,yetmass-communication,marketing.The labelscanalsohelpwithproductauthentication incategoriessuchasalcoholicbeverages,whereproductfraudisasignificantproblem.
4 DEBORAHWEINSWIG,EXECUTIVEDIRECTOR–HEADOFGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
ONE-LINETAKEAWAYS
Finally,wesharesomeone-linetakeawaysfromdaythreeofMWC:
“Analysts that in previous years overforecast growth for e-commerce have morerecentlybeenunderforecastinggrowthformobilecommerce.”–MichaelJaconi,CEOofButton
“Appsarefailingonlong-termengagement.Threeoutoffourappsarenotusedaftertheirfirstusefollowingdownload.”–ScottSnyder,President,ChiefStrategyOfficerofMobiquity
“TV viewership is dropping around the world, except for live TV. Recently, 2 millionpeople tuned in on Periscope to watch live feeds of floods in Newcastle, UK. TVnetworks are increasingly adopting Twitter, YouTube and new social media tools toappealtotheiraudienceandachieveamazingsynergies.”–Jean-PhilippeMaheu,ManagingDirector,GlobalBrand&AgencyStrategyatTwitter
“User intentonthewebstartswithasearchengine.User intentonmobilestartswithan app. But apps solve singular problems, meaning there is scope for contextualmarketingoncetheproblemhasbeensolved.”–MichaelJaconi,CEOofButton
“Netflix has shifted from a DVD rental company to a streaming company to a datacompany that is based on personalization. Its data is informing its original programcommissions.”–ScottSnyder,President,ChiefStrategyOfficerofMobiquity
“Partnership is important for 5G. Deutsche Telekom brought together networkproviders, software companies and industrial players to build its first test bed for 5Gnetworks,toensureprojectstandardsandinteroperablesystems.”–WolfgangKopf,SVPofGroupPublicandRegulatoryAffairsatDeutscheTelekom
“TheInternetwasresponsiblefor43%ofEuropeanandUSeconomicgrowthbetween2001and2011.”–PatrickCollison,CEOofStripe
5 DEBORAHWEINSWIG,EXECUTIVEDIRECTOR–HEADOFGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
6 DEBORAHWEINSWIG,EXECUTIVEDIRECTOR–HEADOFGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAFungBusinessIntelligenceCentreNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@[email protected]
MarieDriscoll,[email protected]
JohnHarmon,[email protected]
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