THE POWER OF GLOBAL GENDER PARITY

I am just back from ICSC.  Besides much discussion of the demise or denial of the demise of  bricks and mortar shopping opportunities, I saw a presentation about this “Gender Parity” study completed by the McKinsey Global Institute (MGI).  Take a look!

Click Picture to Download Report

“Narrowing the global gender gap in work would not only be equitable in the broadest sense but could double the contribution of women to global GDP growth between 2014 and 2025. Delivering that impact, however, will require tackling gender equality in society.

“MGI has mapped 15 gender equality indicators for 95 countries and finds that 40 of them have high or extremely high levels of gender inequality on at least half of the indicators. The indicators fall into four categories: equality in work, essential services and enablers of economic opportunity, legal protection and political voice, and physical security and autonomy.  We consider a “full-potential” scenario in which women participate in the economy identically to men, and find that it would add up to $28 trillion, or 26 percent, to annual global GDP in 2025 compared with a business-as-usual scenario. This impact is roughly equivalent to the size of the combined US and Chinese economies today. We also analyzed an alternative “best-in-region” scenario in which all countries match the rate of improvement of the best-performing country in their region. This would add as much as $12 trillion in annual 2025 GDP, equivalent in size to the current GDP of Japan, Germany, and the United Kingdom combined, or twice the likely growth in global GDP contributed by female workers between 2014 and 2025 in a business-as-usual scenario.

“Both advanced and developing countries stand to gain. In 46 of the 95 countries analyzed, the best in-region outcome could increase annual GDP in 2025 by more than 10 percent over the business as-usual case, with the highest relative boost in India and Latin America.

“MGI’s new Gender Parity Score, or GPS, measures the distance each country has traveled toward gender parity, which is set at 1.00. The regional GPS is lowest in South Asia (excluding India) at 0.44 and highest in North America and Oceania at 0.74. Using the GPS, MGI has established a strong link between gender equality in society, attitudes and beliefs about the role of women, and gender equality in work. The latter is not achievable without the former two elements. We found virtually no countries with high gender equality in society but low gender equality in work. Economic development enables countries to close gender gaps, but progress in four areas in particular— education level, financial and digital inclusion, legal protection, and unpaid care work—could help accelerate progress.

“MGI has identified ten “impact zones” (issue-region combinations) where effective action would move more than 75 percent of women affected by gender inequality globally closer to parity. The global impact zones are blocked economic potential, time spent in unpaid care work, fewer legal rights, political underrepresentation, and violence against women, globally pervasive issues. The regional impact zones are low labor-force participation in quality jobs, low maternal and reproductive health, unequal education levels, financial and digital exclusion, and girl-child vulnerability, concentrated in certain regions of the world.

“Six types of intervention are necessary to bridge the gender gap: financial incentives and support; technology and infrastructure; the creation of economic opportunity; capability building; advocacy and shaping attitudes; and laws, policies, and regulations. We identify some 75 potential interventions that could be evaluated and tailored to suit the social and economic context of each impact zone and country.

“Tackling gender inequality will require change within businesses as well as new coalitions. The private sector will need to play a more active role in concert with governments and non-governmental organizations—and companies could benefit both directly and indirectly by taking action.”

http://www.mckinsey.com/global-themes/employment-and-growth/how-advancing-womens-equality-can-add-12-trillion-to-global-growth

 

ROGERS PLACE – EDMONTON, ALBERTA CA

The Edmonton Oilers are in the process of creating a two billion dollar (C) arena-led mixed-use entertainment project in downtown Edmonton, on a 20-acre site where an old casino once stood. We were fortunate enough to conduct all the market and financial feasibility studies for the project, which include a practice arena, retail/dining/entertainment, several hotels, office, casino, convention center, meeting spaces, housing, university, and cultural uses. In September 2016, the first phase of the project opened, presenting the arena and a glass-enclosed winter garden plaza.

One of the most contentious issues was who would pay for which part of the project since Alberta (and most of Canada) had no precedent for municipal participation in funding an expensive, state-of-the-art, mixed-use, sports-entertainment district.  Negotiation on these points went on from 2009 to 2013, when the City and the Katz organization came to a mutually agreed upon solution.

Besides testing the market and financial feasibility, we also completed a warranted investment analysis that quantified the shortfall in revenue to attain an industry-standard rate of return on the investment. The exercise was extremely complicated with the many uses being tested, the multiple ownership formats suggested, the non-profit elements blended together with the commercial elements, and the fact that there were no Tax Increment Financing instruments in place in the province.

rogers-placeFast forward seven years to 2016, and the new “Rogers Place” opened in September 2016 to great fanfare carrying a total construction cost of C$604,500,000. The specifics of the deal are precedent-setting in terms of public support for a private sports enterprise. Sources of funds are as follows:

  • City-Issued Debt:                              C$541,810,000 (90%)
  • Government Funds (Non-City): C$39,000,000 ( 6%)
  • Oilers Contribution:                         C$23,690,000 (4%)

Phase One terms are summarized as follows:

  • Owner: City of Edmonton
  • Lessee: Edmonton Oilers
  • Operator: Edmonton Oilers
  • Lease Term: 35 years (with three 10-year lease options)
  • Oilers –  Manage arena operations, receive all arena revenues & pay for arena operations/maintenance
  • Oilers operating revenues include naming rights and parking revenues

The Oilers received the right to levy a Ticket Surcharge (with a portion going towards debt service and capital reserve).  Other Key Terms are as follows:

  • Team will pay annual lease payment of approximately C$6.7 Million
  • Approximately C$6.1 Million per year in Ticket Surcharge fees will go towards debt service
  • City will pay the Oilers C$2 Million annually for 10 years to help market/promote the City
  • Total project also includes City amenities (winter garden, community ice rink, etc.)
  • City will have up to 28 days a year of free arena access for community events

The Annual Debt Service Payment of almost $32 million will be generated from the following sources:

  • City – Downtown Tax Increment: C$13,122,554
  • City – Other Public Sources:          C$5,275,399
  • Oilers Lease Payments:                   C$6,697,157
  • Ticket Surcharge Revenue:            C$6,074,629

With the attendance and revenue generated since opening, these targets are very likely to be reached.

Voila, a new model for building and financing a $600 million arena is born!

MILLENNIAL MOMS

Scrolling through the generations, we have finally come up with a new demographic cohort that has real influence, buying power, and hasn’t been studied to death.  This collection of diverse, affluent, educated women were born between 1980 and 1994, making them 22 to 36 years of age.  Of the almost 80 million of these consumers, about 9 million are moms, quick math, about 11 percent.  They also account for 90% of the new mothers in 2016, about 1.5 million.

So, what should we know about this important, influencer group?  Here are 10 facts to embrace for your retail and entertainment businesses to grab their attention and keep this business:

  1. These ladies are highly connected with their social media accounts.  They spend 17 hours per week with Facebook, Twitter and Pinterest.
  2. On that same not, 83% use video-sharing sites to keep connected with friends and family and to show off their adorable offspring!
  3. Less than half are stay-at-home moms, at 45%, (according to a BabyCenter.Com survey).  However 60% think a parent should stay home to care for children, compared to 55% of Baby Boomers.  Not too much of a difference with these two cohorts Millennials are teaching their kids to be open-minded and encouraging them to find ways to develop their own thinking skills and unique personality.
  4. Millennial parenting is all about experiences!!!!! This means they will play, shop, work and eat with these kids.  What an opportunity for our industry!
  5. Roughly 90 percent share information about a purchase they have made and services they have used.
  6. Millennials believe their careers do not mean 9 to 5 cubicle work.  They embrace working from home, cutting down on office costs and commute times.
  7. One in five moms survey by BabyCenter have started a blog with substantial followers and half report plans to start their own businesses.
  8. A Nielsen study shows that 62% of Millennials prefer living near amenities associated with urban centers, so maybe they aren’t all moving to the burbs!
  9. These moms are very health conscious.  They are switching fast food for more healthy, fresh local sourced food.
  10. They are not tied to one form of parenting including a “baby-wise parent”, “a metric parent”, or a “free-range parent”, or a “helicopter parent”.  For every type of parent there are meet-up groups, online forums, blogs or communities that offer support and advice.

Based on these trends, who is doing a good job in terms of marketing to these ladies?

JB Research is Moving

Ricky at Work

Dear Friends, Colleagues and Clients,

Ricky, Erica and I are so excited to announce our move to the new office in Santa Rosa, California.  From now on, please address all correspondence to:

JB Research Company

374 Riven Rock Ct.

Santa Rosa, CA 95409

(707) 623-9654 Office

(805) 798-1800 Cell

The Best Job I Ever Had

Oscar Museum 2

Ten years ago, in about 2004, I got a call from a prospective client, a newly hired director of the Academy of Motion Pictures Arts and Sciences museum project, asking if I would be interested in conducting some market research for a new attraction/museum themed on the Academy Awards.

Would I Ever!!!

I had been the one lucky enough to do the work for the Dolby Theater at Hollywood & Highland where the ceremony takes place, so it seemed a good fit and logical that I continue on to do the museum feasibility.  But my joy, my heart, for Hollywood, no one knew that!

No One Had Ever Known That:

  • My family had always been in the entertainment business, with my father involved on the business side, having been a pioneer in the cable television industry.
  • My aunt always working for this or that movie star as an executive assistant.
  • I was lucky enough to visit the back-lot of 20th Century Fox before it was Century City!
  • I spent countless hours watching movies being filmed, then sitting in theaters watching them roll by me on the big screen.

Would I be interested?  Heck, yea!!

Since that time, I have been the consultant called upon to do the background market research, analysis and financial projections for the site selection, sizing and operation of museum.

I learned a thing or two during those years like:

  • I gained a deep knowledge of large museums and what keeps them thriving.
  • How an endowment can shrink during a deflation.
  • Money earmarked to never-be-touched has a way of disappearing in hard times.
  • I learned about the conundrum of keeping things fresh so that resident visitors will keep returning, time and again.

I am thankful that my job always changes and that I always learn, no matter the engagement.

Picture of Oscar 2Over the years, we have wrestled with all the issues associated with new development including disagreements about what it should look like, what its mission should be, where it should be sited, who is its targeted audience (please, don’t say everyone!), and what’s the best way to keep the project on-time and on-budget.  To be clear, these issues are complex and are made more difficult when there are many masters to serve.  Still, when the project is to reflect the points of view, hopes, dreams, and legacies of America’s most important cultural export, (which I believe is cinema) there must be the most careful consideration to each one.

This was my best job ever.  Write and tell me about yours in the comments below.

WHICH GENERATION TO TARGET?

We are all fans of the newest consumers to come of age, the Millennials. These young adults, who are now aged 19 to 33 and number almost 70 million, are the darlings of the marketing world. But in their rush to capture the hearts and minds of these young consumers, who are now forming their first real households, many brands are forgetting about the other generations.

To help our colleagues drive sales to adults in various life stages, we created an easy chart to start the conversation. A discussion of these groups is like teenage sex: everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it.

Generational Market Segments

· Swing and World II

  • Born between 1909-1945image
  • 33.7 Million
  • 69 or Older
  • 14% of Adults
  • Health Care Consumers
  • “Grandchildren” Spending
  • Delayed Gratification
  • Moderation
  • Discipline
· Baby Boomers

  • Born between 1946 – 1964image
  • 74.9 Million
  • Ages: 50 – 68
  • 32% of Adults
  • Multi-generational Consumers
  • Drivers of Growth in Leisure/Hospitality
  • Still Individualistic and “Rebels”
  • Starting to think about retirement
  • Forever Young
  • 45 Million Grandparents
· Gen X

  • Born between 1965 – 1980image
  • 60.4 Million
  • Ages: 34 – 49
  • 25% of Adults
  • Boomer Parents
  • Divorced Parents
  • Insecure
  • Practical in Consumption
  • Diversity
  • Responsible
  • Use Web Extensively
· Gen Y / Millennials

  • Born between 1981 – 1995image
  • 67.9 Million
  • Ages: 19 – 33
  • 29% of Adults
  • Ethnically Diverse
  • Tech Savvy
  • Multi-Tasker
  • Need Lots of Input
  • Prefer Health to Wealth
  • Prefer Mobile Communication
  • Omnicultural
· Gen Z

  • Born between 1996 – 2010image
  • 46 Million
  • Ages: 5 – 18
  • Structured Schedules
  • Over Managed
  • Info in Short Grabs
  • Multi-Tasker
  • Tech Savvy/Omnicultural
  • The “I” Generation

Source: JB Research Company

(For a Printable Chart, Click Here.) 

Each generation has a special way it likes to be approached, and each responds differently to messaging. For example, Boomers still shop in department stores, although certainly not as much as when the oldest boomers, now 69, were kids. Gen Y rarely shops in department stores unless it is one of the “cool” ones, which include Nordstrom’s or Barney’s. Or when they are shopping for their parents’ Christmas gifts, so they can be easily returned to a convenient location.

In terms of amount spend per visit to the mall and department store, the 45-54 age group cuts across two generations, Gen X and Baby Boomers. Department store spending, however, is highest among Boomers, while all other spending is highest again across Gen Y and Boomers. Teenagers visit the mall most frequently, but understandably, do not spend much per visit.

image

In terms of wealth, an interesting analysis indicates that Gen X, a sector largely ignored by great brands, is a real contender when it comes to income, net worth and wealth. The difference between income and wealth is that income is what you earn every year, and wealth is the totality of your assets minus your liabilities. According to the United States Department of the Census Current Population Survey, net worth and total income is as follows in 2013:

image

In terms of net wealth, Baby Boomers hold the highest percentage of net worth dollars at 34% and the highest share of total income dollars, at 39%. The second highest is held by Gen –X at 29% of net worth dollars and 31% of total income dollars. Millennials hold 21% of net worth, and about 18% of total income dollars. Again, markets with the most money are Boomers and Gen-X.  But that is because Gen Y is young, and on their way to being the consumer heavyweight in the next 20 years.

Some salient characteristics of each of the largest buying generations, Boomers and Gen-X include the following:

.  Gen- Xers have money! They make up 25 % of all adults, but hold 29% of all net worth and 31% of all annual income earned. Half of them want to provide for their kids’ college, and almost all want to save for retirement. Two thirds plan on traveling for pleasure in the next year, and half will buy one or more luxuries.

· Boomers on the other hand, buy things for themselves and their grandkids. They are omnichannel and know their way around the Internet of Things. They expect hype in their advertising because they invented it (Mad Men, anyone?) They are early adopters of smart medical devices and are very critical about experiential retail, again because they invented it.

While we’re at it, here are some characteristic of Gen Y and Gen Z.  Gen Y is completely omnichannel, and have said that they will pay for responsible products, although this has not yet been proven in the market. They will be early adopters of smart wearables, especially sport gear such as watches. They want a seamless shopping experience and they DO NOT WANT HYPE. Because of all the information thrown at them by their various smart devises, they want their lives simplified, so they have invented “curated” everything from experiences, to vacations, to cooking, shopping, to putting together furniture, to decluttering their lives. Think  YouTube, Yelp, H&M and Zara (fast fashion), shopping sites, and Pinterest. Because there are so many of them, and because they are just starting to become a force as couples, they are the generation that will take over next.

Gen Z is a whole other puzzle. They are not old enough to have much money of their own, but they will in the next ten years. They are overscheduled, but they are completely omnichanneled, cutting across every platform of technology. They are extremely entrepreneurial and want to be heard. They also want to try out products before they buy. In order to appeal to them now, you have to continually innovate and evolve digitally because they live on their devices.

The world is complicated today and is becoming more complicated as we evolve and innovate with our shopping methods and choices. The Internet of Things, such as magic RFID tags, augmented reality, delivery drones, curated experiences, wearable technology and life hacking are among the many new experiences we must excel at and then change our products and communication as they change. It is a brave new world!

Understanding Your Markets – The Generations, Swing through Z

Next week on February 18 and 19 the first annual Entertainment Experience Evolution Conference is being held at LA Live! in downtown Los Angeles.  We are participating, first by conducting a round table on the morning of February 19  (Marketing to Gen-X, Y and Z), and then right before lunch on the panel entitled “Open Air Projects, Pushing the Envelope”.  I hope all of our friends will join us.  For the full conference details, click here.

And here’s a teaser for some of  of what we will be discussing.  I love this stuff!

Generational Market Segments