Home' Spa and Clinic : Volume 60 February 2015 Contents BUSINESS OPERATIONS MANAGEMENT
The most obvious example of this consumer schism is of course
ever yone’s poster child – Apple.
Their cutting-edge, uniquely designed products and anti-
corporate style are a natural fit for the NEO. Their sales skyrocketed
here and around the globe, all the way through the recession.
On Planet NEO, however, there is a natural tendency to smaller,
more individual brands, as it’s easier to connect with companies and
people than corporations and mission statements.
The craft brewing industry internationally saw sales rise by
seven percent in 2014. Canadian Chip Wilson’s lululemon athletica
fitness and leisure wear brand is part of a global NEO trend to yoga
and a lifestyle beyond shopping. It’s growing exponentially with an
authentic commitment to yoga that NEOs can connect to.
I remember a wonderful artisan bakery near my home that
was thriving with a wide variety of customers. It flew in the face of
conventional geo - demographic modelling.
The baker told me that most of his customers happily paid a
premium for authentic sourdough or incredible croissants and
were driving right across town; old, young, jeans and T-shirts, suits,
hip and buttoned down. That was, anyone looking for something
exquisite, regardless of price, were there.
We can now explain it. We have something as simple as the
two-planet premise and something so sophisticated to be the
complete toolbox for business leadership and success. Not one built
on observation and trends, but a model rooted in the ver y psyche,
the mindset, of consumers. And mountains of data, thanks to our
strategic alliance with Roy Morgan Research.
And I can tell you now from experience – you’re either going to
get this concept like a bolt from the blue, or you’re not going to get
it at all. And that’s fine.
If ever yone thought the same way, we wouldn’t have two planets,
we’d have just one.
For the first time we can see the stark difference emerging in
the new economy. Traditionals are building security while the
New Economic Order is building wealth. As a consequence have a
greater proportion of total assets.
NEOs, for example, account for 65 percent of total assets in
Australia, including superannuation, retirement incomes, managed
investments, banking accounts, business investments and direct
investments. NEOs are 63 percent more likely than Traditionals
to own shares and have an average share portfolio of $110,000
compared with $81,000 for Traditionals.
They own almost 73 percent of all equity in Australian businesses
and, critically, when it comes to corporate behaviour, a third of
NEOs are responsible for major corporate decisions. Compare this
with just nine percent of Traditionals.
NEOs dominate the corporate and business decisions that
directly deliver profit.
What may look like social and market trends to the untrained
eye are actually companies and individuals finding a way to connect
with the very individual consumers who place a value on the
unique, individual and the authentic – and are willing to pay for it.
So ... when you hear one day that consumers are cutting back,
and the next that they are buying more local produce, personal
ser vices or more cool technology, you aren’t going mad.
What you are actually hearing are the stories of two very different
planets and the people who live on them. The evidence is clear.
Consumers have always spent their money based on what they value.
In this post-GFC economic reality there is no middle ground. If
you’re starting to realise that your business, or the business of your
clients, is stuck in the space between the two planets, then you need
to find a way out. FAST.
Whatever the size of your business, you need to be offering
something that is extraordinary, or you need to be offering the
Learning the difference is a matter of sur vival. Today the first
and most important question any entrepreneur needs to ask is
“What Planet Am I On?”.
There are still fortunes to be made on Planet Traditional. For
some companies this means breaking up into separate brands to
But for most it is going to have to be a straight choice. Making
this choice is what becoming a 21st century brand is all about.
This isn’t just academic theory. It’s hard facts, tools and
strategies that make a tangible difference in business. And they are
crucial to every entrepreneur from tiny to titan.
The key to extraordinary success is being on the right planet –
your customers are already there. You should probably think about
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