Tag Archives: Internet

Jan 28 2012

A new economy on the up – The Web Economy

Most of us rely on the internet to a great extent; this blog only exists because you are a connected person. And the chances are that you buy books from Amazon, pick your news up at bbc.co.uk and send emails as a principal method of communication. 20 years ago none of this existed in our homes!

you may be able to order it on-line but would the Post Office deliver it?

Now we have access to the internet on our telephones. And that is about to grow, It is reckoned that by 2016 about 80% of all internet users will access the web using a mobile phone. Google have concluded a study which also suggests that by 2016 over 3bn people (around half of the population of the planet) will have access to the internet. It is also suggested that around the same time there will be one trillion devices connected to the internet at any one time.

And with that connectivity will come a shift in the way we buy things. In four years the Google study is suggesting that commercial activity on the internet will grow from the present £1.5tn to £2.7tn.

These are amazing figures, except that this still represents a tiny proportion of what we spend. It is around 4% of the total economy – so some way to go. And perhaps some cheer for our High Streets – which still have some place in our super-fast-always-on world. We still like to go and touch and feel stuff…

As I was reminded last week, there are some things that don’t work on-line. My morning dose of Costa Coffee for instance – I might be able to order it, but the delivery might be a little more challenging?

Nov 29 2011

New NHS Miracle Cure?

it seems the NHS have fallen upon a new miracle cure for patients. If you are unfortunate enough to be admitted to hospital, they wheel out a new all-ecompassing fight against all known illnesses and diseases…

We have ways Mr Kubrick of making you watch the handsome Health Secretary

A 3 minute looping video of Health Secretary Andrew Lansley telling you that ‘your care really matters to me’ and then asking you to be nice to hospital staff. Its a 3 minute epic and is looped. As far as I can see it is compulsory too – unless you part with £5 to subscribe to the TV, internet and email – each day you are there.

This is genius – firstly listening to a Politician talking at you whilst you are captive must have the effect of making you way to get out of the bed and away from him as soon as possible – hence the miracle cure. I guess it’s the only way anyone ever listens to an MP – if they can’t get away?

But the alternative thought is that this is a brilliant way of generating cash for the NHS. You actually have to pay to turn him off. I can’t imagine anything worse than listening to an MP lecturing you about how important a (reluctant) customer you are – but reminding you to be pleasant and appreciative to everyone who wanders up to you.

I think this could be taken further. I am wondering if we could persuade Vince to do a slot on Business Finance for those who can’t sleep. Some others could be used for alternative therapies – perhaps Liam Fox on making new friends whilst you are in hospital?

I think I would be in hospital for longer if I saw the film – from injuries sustained whilst (stupidly) punching a TV monitor?

Apr 28 2010

Cheap brand values

News is expected shortly from the EU on a ruling which will allow some of the best luxury brands in the world to kerb a number of discount web sites offering their goods at ‘too low’ prices.

handy for a night out in Nottingham?

Brands like Prada, Louis Vuitton & Burberry are unhappy that their carefully crafted brand image is being watered down by internet sites who offer up to 70% discount. The rules are going to ensure that goods are sold at ‘bricks and mortar’ stores.

An low profile spokesman for these high profile firms claimed that ‘they didn’t spend million of pounds creating a brand to have someone freeride off it – and sell it off the back of a lorry’.

When I was in Selfridges earlier this month, I was amused to see that Tom Ford aftershave was limited to 6 bottles per customer. A quota imposed by Tom Ford, according to the sales girl. It was £50 a bottle – a bit more than you can buy it at cheapsmells.com

But are we missing something here?

These websites are still making money (I accept the margins may be thin). They may be run on a shoestring and the experience may be average (like my experience of buying a new camera I blogged about). Assuming these goods are not fakes, they are buying goods at a commercial margin.

Some of the big name have their own stores – and so control the whole process. In other cases (like at Selfridges) there can be a concession arrangement.

But in all other cases, someone is making a significant margin! And they have been found out by the transparency of the internet.

So whilst the brand might want to protect its core value, which will generally be focused on ‘lifestyle’ they are not currently able to control the brand cost.

It looks like they will win at the EU – and the result – we will go back to being ripped off. Do you really care if the experience is average if you save several hundred pounds? Thought not.