The History Of Retail In 100 Objects – Coin

3 June 2014

Coins History Of Retail

It’s Tuesday so it’s The History Of Retail In 100 Objects post – This weeks object is the Coin.

In China, from around 1200 BC , the cowrie shell was used as an item of exchange – ‘shell money’. archaeologists’ finds suggest that from 1000 BC the Chinese began to produce mock cowrie shells made of metal. Bartering had two distinct disadvantages – the person wishing to ‘buy’ may not have anything the ‘seller’ wished to acquire, and even if they could agree on a trade, the haggling process was time consuming. Coins offered a solution in that they represented fixed values and could be exchanged not for their intrinsic value, but in order to change hands again in payment for some other goods. An appreciation of the value of metals such as gold and silver had already developed. Since these metals were durable, portable and demand for them remained constant, they were a natural choice for use as a common currency. The value of a coin depended upon its weight and metal content. The idea of using coins quickly spread to Greece, and because the early Greeks were keen traders throughout the Mediterranean, coinage spread around the region. Alexander the Great minted vast quantities of silver coins, using them to pay his armies and keep them loyal. It is believed that this significantly contributed to his ability to expand across three continents.

Contribution to Retail History

Coins increased social mobility and opened up trading opportunities between cities, nations and continents. Signifying a token of trust, with a stored value that was redeemable over time, coins enabled traders and customers to conduct a ‘fair exchange’ of agreed, recognised worth.

The History Of Retail In 100 Objects Is Available As A Free Podcast

History of Retail Podcast

Picture Of The Week

2 June 2014

Each week on a Monday I will post my picture of the week from my collection.

 

Ever get that going nowhere feeling…

David Roth Picture of The Week

In Retail Conversation With…

24 March 2014

David Roth In Retail Conversation with

It was great to do this webcast with Bryan. It’s packed with insights which would be helpful for anyone looking at how to be more successful for the holiday session 2014/5. Not that much planning time to go…scary.

http://youtu.be/_Yju78rFYOU

History Of The Chinese New Year

21 March 2014

Chinese New Year

Now that our 8 Retail Trends are complete for The Year Of The Horse and with a big thank you to Cecilie Ostergren for the pictures in the trends series….Here is a little background on Chinese New Year that I though you might fund useful and interesting. The Chinese new year, known in China as spring festival, is the country’s most important holiday. The Chinese New Year is based on a calendar established about 4,700 years ago. Various legends explain the origin of the Chinese New Year. One describes how people dreaded the New Year because a fearsome beast named Nian annually terrorised the population and devoured children. Then one year a child appeared dressed in red. The beast, frightened by the colour, fled and never returned. That’s why the Chinese New Year traditionally features red lanterns and noisy firecrackers to ward off evil spirits. The Chinese New Year is based on a calendar that calculates time using both lunar and solar events. Time passes in 12-year cycles with each year represented by an animal of the Chinese zodiac. Traditionally, people prepare special foods and hope for a future of good luck. They attend many family dinners, starting with a New Year’s Eve feast. Travel home for the family reunion produces a mass migration. The New Year period culminates in the lantern festival, a joyful celebration around the first new moon in the lunar New Year.

8 Retail Trends In China – No 7. Gamification To Deliver Data

19 March 2014

Game

To Deliver Data Insight data is of course one of the most important and also complex keys to the retail castle. There are massive amounts available from ‘likes’ and ‘wants’ to shopping patterns and the Chinese consumer is constantly inputting data to social discussions, chats and review sites. However, for some time the burning question has been how to extract relevant and usable data for a brand. In the Year of the Horse, we foresee gaming will become a major part of the plan. Consumers in China love the novelty of gaming and we know they will provide information if asked. The ability to ‘gamify’ users’ experience with a brand to get the best quality consumer feedback has proved to be one of the most powerful forms of information gathering, and we expect to see this gain real traction and begin to drive brand behaviour. Social media has given us some insight into the users’ experience but none has engaged, connected or interacted with consumers in the way gamification has proved itself able to. There is no doubt that eliciting meaningful data is of the utmost importance in driving growth for brands and that gaming will play a key part in the process for smart brand owners and retailers.

8 Retail Trends In China – No 6. Prime Time For Local Luxury

17 March 2014

Local Luxury

Luxury has been a common theme in china’s recent retail history. From the Chinese going abroad to buy, Hong Kong as a luxury goods market and every global luxury and premium brand finding a home in the ‘high streets’ and top class malls of China, luxury is seen as more than a status symbol; it is the evaluation of the elite and the definition of the ladder of success. The hunger for luxury is, indisputably, one of the most defining features of the rising middle class and new Chinese generation. It was only a matter of time before we saw the emergence of home grown luxury brands and we envisage them gaining traction in the Year of the Horse – the ability to mix national pride, artisan skills and high-end luxury is an unbeatable formula in China. In our opinion, this segment will take time to build as the mindset of ‘foreign = better’ is still entrenched but we nonetheless believe it will continue to grow and result in the formation of some very strong, innovative Chinese luxury brands. We expect to see these starting to assert their place in Chinese decadence and also emerging as global players within the luxury market. Having watched the creation of Chinese brands in the toughest of conditions locally, we have no doubt that if they can establish their presence overseas, they will significantly strengthen their position within the minds of local Chinese. This is a long road and the Year of the Horse will be an important staging post in the journey.

8 Retail Trends In China – No 5. Execute To Survive

14 March 2014

In Store Execution

As success outside ‘traditional’ bricks and mortar retailers continues, we anticipate increased pressure on manufacturers to conjure up growth. This is most likely to be achieved through a combination of basic marketing principles and decreasing costs in the system which, in turn, will demand greater sophistication in retail execution and sales forces across China. However, this kind of expertise and culture is not developed overnight, and it’s reasonable to speculate that specialists in this area will start taking over from the distributors that typically undertake this function. This does not bode well for these distribution companies that, until now, have had significant power – handling everything from the book, to the movement of physical stock, to in-store dealings. All this has been done with very little visibility for the brand owner, but as growth was so good, everyone was happy. Now, with the slowing in retail sales, we predict that a laser-sharp focus will be on delivering growth at lower cost. What will this mean? More science in field sales operation, better technology to drive execution, and complete visibility for the brand owner in terms of what it is paying for. All of these demands present a very real problem for distributors that are currently not geared for this level of in-store implementation. Don’t be surprised if there’s a sudden growth of outsourced sales force specialists, and an increase in the standard of in-store execution as a consequence.

8 Retail Trends In China – No 4. Local Retailers Become Masters Of Their Own Universe

13 March 2014

Local Retailers

You can safely assume that local retailers will continue on their path of extraordinary evolution to becoming world class. Undoubtedly, they will become more sophisticated in their deployment of systems, stricter in their management and begin to deliver better value than the international retailers currently fighting for market share inside China. Local retailers, either national or region-specific, are already starting to outstrip their international counterparts and in the Year of the Horse you can expect this to accelerate, with geographic expansion and increased output through existing sites. Local retailers already have the ability, through multiple means, to extract more profit from their locations, with the added advantage of ‘neighbourhood’ knowledge and connectivity. As they absorb elements of global retailing best practice, we forecast an ever-improving performance.

8 Retail Trends In China – No 3. A Bank In The Hand

12 March 2014

Digital Banking

As e-commerce continues to develop fast, so too will the ability of Chinese consumers to bank via mobile platforms. we’re already seeing this happening in multiple ways, from street vendors processing credit cards via their android tablets, to e-commerce companies like Alibaba offering their consumers small savings accounts, to phone-to-phone SMS transfers. Tencent (China’s largest internet portal) has started offering customers a banking platform and with its 400million+ users, it’s destined to have a big impact. In the Year of the Horse we’ll witness consumers being able to use, share and spend money faster and more easily, leading to more transactions in more locations. This is good news for small businesses that have previously been constrained by payment issues, and might well regenerate the steadily shrinking small, informal trader. Just imagine how the ability to transfer a relatively small sum of money with a simple cellphone connection will enable transactions that were simply impossible in smaller rural areas. We expect to see points of purchase springing up virtually anywhere – not just in markets, but even on the most remote street corner. Such is the growing power of digital and peer-to-peer banking.

The History Of Retail In 100 Objects – Paper Money

11 March 2014

Paper Money

It’s Tuesday so it’s The History Of Retail In 100 Objects post – This weeks object is Paper Money

The earliest paper money was used in China around 1000 BC and it was most commonly used as a letter of credit, transferred over large distances. the 13th Cent ury, when Ghengis Khan conquered China, he quickly grasped the potential of its paper money and began using it as a currency throughout his empire. He seized people’s existing supplies of gold and silver and gave them paper currency in exchange, leaving the population no opt ion but to trade with paper money. Although the use of paper money spread and continued for several hundred years, it was not wholeheartedly embraced. In Persia, its introduction in 1294 led to a complete collapse of trade. In the 15th century in China, the issuing of paper notes was mismanaged, leading to rapid depreciation of their value and causing inflation. As a consequence, the use of paper money in China ceased in 1455 and did not resume for many years. Europe came far behind Asia and the Arab world in its adoption of paper money, primarily because Europe didn’t have paper until around 1100 AD. The alleged first instance of use of paper money in Europe was in Spain in 1438 during a Moorish invasion (a Spanish military leader paid his soldiers with paper). Early on in the introduction of paper money, European governments took over its production and began printing ‘official’ paper money. These paper receipts were all given fixed values and people began leaving their heavy coins with merchants in exchange for them. The earliest known English goldsmith certificates were being used by 1633 as proof of ability to pay. Nations and colonies developed their own paper money, leading to the variety of notes in use today. In 1816, governments established the ‘gold standard’, to ward against inflation. This tied the value of paper money to a specific amount of gold, held in the government treasuries. The US officially adopted the gold standard in 1900. Today, not all notes are widely accepted and the average lifespan for a currency’s circulation is only 39 years. The longest running paper currencies are the British pound, (introduced in 1694) and the US dollar (introduced in 1792).

Contribution to Retail History

Paper money is a promise to ‘pay the bearer’ a set amount and as such its success as a currency depends on mutual confidence in its validity (unlike early coins which had an intrinsic face value of their own). It was pivotal to the opening of trade between regions and nations, offering a light, easily portable alternative to the cumbersome weight of coins.

The History Of Retail In 100 Objects Is Available As A Free Podcast

History of Retail Podcast