Creative Calderdale

>

I will speaking at Creative Calderdale about how to to build an international business.

The event takes place from 6pm-9pm on Thursday 24th May 2012 at The Elsie Whiteley Innovation Centre, Halifax, HX1 5ER.

Admission is free, but to book a place, please email hello@creativecalderdale.co.uk or call 01422 399 490

Advertisements

Why The Sale Must End Soon

Issued by The Royal Society, People and the Planet is a new study concerning the challenges posed by population growth.

The global population set to increase by a further two billion people over the next 20 years, but the report highlights the fact that the key question is not How many people? but rather How are they all going to live?

The startling conclusion is that in developed and the emerging economies, consumption has reached unsustainable levels and must be immediately reduced. The report claims that the increase in population will, ‘…entail scaling back or radical transformation of damaging material consumption and emissions and the adoption of sustainable technologies. This change is critical  to ensuring a sustainable future for all.’

These findings will something of a body-blow to David Cameron’s vision of an export-led return to growth, but at least he can take some comfort from the fact that his strategy didn’t appear to be working anyway. The implication is clear; whether we like it or not, the good times are not about to return any time soon. But while this news is certainly bad for the Coalition (and also for the other centre-right Governments in the Eurozone) it is not necessarily bad news in and of itself, nor indeed for the rest of us.

The strategy of Governments over the last 30 years has been to focus on increasing the wealth, well-being and opportunities of individuals rather than of society as a whole. Like any policy there have been winners and losers, but the result is that this recession intuitively feels different to all the others. In comparison with the previous slumps of the 70s and 80s, GDP is much higher – which is a good thing – but the gap between rich and poor is now much, much bigger than it ever was and it is continuing to widen at an unhealthy rate. Literally in fact. For example, in my hometown of Sheffield,  the average life expectancy in the richest parts of the city is more than 20 years greater than that in the poorest. This pattern is repeated in cities across UK, Europe and North America.

Change is required, but the truth is that this is as much attitudinal as it is economic. A third of all food purchased in the UK is simply thrown away, while 80 percent of all items bought are used once and then discarded. Everything Now is an indulgent and wasteful way to live, and we have all been complicit in its emergence, but that doesn’t mean that we won’t be happier, or better off without it. Reusing equipment, recycling materials, reducing waste, obtaining energy from renewable sources, and getting consumers to stump up for the actual cost of their consumption will make a huge difference to our way of life, but not necessarily to our quality of life.

Ultimately, persuading people to spend and consume less will do nothing to promote growth, but perhaps the debate should actually be about what growth is and why it’s so important. After all, we live on a small planet with finite resources and as Leo Bloom, the hapless account in The Producers, famously said, ‘You can only sell 100 percent of anything, Max.’

What we need is a new way of measuring economic success beyond GDP and GVA, which fail to take into account things like levels of well being and contentment. This will take far sighted political leadership across all the parties; and probably not the kind of people who feel that closing a VAT loophole requires them to pretend that sausage rolls are the best thing since sliced bread, because worrying about how every policy will ‘play out’ in the short term, spells disaster for the long term.

The Tesco Choice

The retail sector has been in trouble since the credit crunch in 2008, but Tesco’s fall in profits was still a shocker. Certainly the grocer seems to have pressed, if not the panic button, then the one marked ‘Action Stations’ announcing it has has completely revised its strategy away from expansion, concentrating instead on refurbishing its existing stores and ‘improving customer service’ at a cost of £200m. Its ad agency The Red Brick Road – long regarded as ‘part of the Tesco family’ – has been asked to re-pitch for the £110m brand communications account, so expect an ‘All New Tesco’ coming our way soon.

These initiatives are an attempt to engage more effectively with customers and good luck to them. But behind the new strategy, the goal remains exactly the same:. Put simply, Tesco want us to buy everything from them. To that end, great strides have been made over past two decades: in 2011, one in every eight pounds spent on the UK high street, was spent in Tesco.

Tesco and its main competitors epitomise one of the biggest contradictions of Everything Now. Whatever shape the rebrand takes, you can be certain that, like all major retailers, Tesco will talk a lot about wanting to offer their customers choice. But what is ‘choice’ in this context?

Tesco is the UK’s leading retailer, and one of the world’s biggest companies. It began by selling us groceries, but these days it sells us pretty much everything – from fish fingers and furniture to finance and foreign holidays. Tesco is no longer just a supermarket, it’s a bank, insurance broker, mobile phone operator and music download platform (with a surprising 10% of UK music download market).

Yet while the range of goods and services across the board, is vast, the choice within each category is usually extremely limited. Supermarkets cherry-pick the biggest selling titles so while Tesco is the fourth biggest bookseller by volume, where it is possible to get the latest release by JK Rowling or Jeremy Clarkson, for a fraction of the cover price, the number of different titles on offer will be more on par with a motorway service station, dwarfed by even the smallest branch of Waterstones.

I am amazed that the supermarkets’ definition of choice isn’t challenged more often. In reality nothing it is more than the opportunity for us to buy any item that they have elected to stock and, to me, the ability to select one from 150 brands of chemically-identical toothpaste, doesn’t really seem much of a choice at all.

New study claims having it all will make you depressed and antisocial

It’s a truism that neither money nor materialism can buy happiness, but  a new study by psychologists at Northwestern University Chicago, published in the March 2012 edition of Psychological Science, claims that people who place a high value on wealth, status, and possessions are more depressed, anxious and less sociable than those who do not.

The report’s findings are interesting, and I don’t doubt the probity of the research, but I am sceptical of conclusions that suggest it is somehow better to be poor than rich. I’ve no doubt the anxieties of the well-off are genuine, but surely there’s a sense of perspective missing: a concern over where the next Gucci bag is coming from vs a concern over where the next meal is coming from.

The difference is that if  you’re affluent, you don’t ‘need’ things – you just ‘want’ things. This is why our participation in consumerism requires us to be kept in a permanent state of dissatisfaction. Only by convincing us that we should be dissatisfied with what we have – whether it’s a phone, bag or car – is it possible to persuade us that we ‘want’ the new version.