Making Sense

A testimonial for "Marketing Interior Design"

Dear Lloyd,

It was my great pleasure meeting you yesterday, and I was inspired by your speech!  As I said, I bought your book a couple of months ago at Kinokuniya, a Japanese book store on 6th & 41st Street.  A stack of books were nicely displayed at the art section and I liked the cover (you are right...the first impression is important!)  The book has been my textbook with a full of hands-on advice including the idea of design fees.....it is a fun process to develop my business plans while reading and learning from you like conducting dialogue.....thank you for writing the book!  Since yesterday I became a big fan of you!

 

Sincerely,

 

Akiko Uryu

Interior Design, New York City

www.akikouryu.com

 

The Black Swan

I’m reading a wonderful book “The Black Swan” by Nassim Nicholas Taleb which details how the world is ruled by the highly improbable and our human need to try to make obvious and explainable, that which is not. It’s a fascinating and humorous study of our cultures, our need to understand, and need to try  and control the environments around us. It also sheds light on the people who try and predict that which will influence our lives, economies, and just about anything we can imagine.

 

Get the book and enjoy it! it might help let go of the inner control-freak and help you just dive in and take risks knowing that your chances of success are probably not that far from those of failure.

spending is BACK (mostly!)

"Affluents have cut back on travel and dining out, but they are spending more on the home overall," says luxury marketing expert Pam Danziger, president of Unity Marketing. Many of the affluent consumers surveyed in Unity's report have made significant improvements to their houses and are now turning their attention outside the home, creating living spaces that allow them to enjoy the outdoors.

Overall, the average amount spent by affluents on luxury products and services rose by nearly 11 percent in 2009's second quarter (compared with second quarter 2008), but this positive trend is offset by a decline in overall luxury spending from the first quarter of 2009. Despite the reported increases, Danziger says affluents aren't likely to return to the exuberant spending patterns they exhibited before the recession.

"Unity's research shows that affluent consumers' basic attitudes and motivations that underlie their patterns of consumption are changing, and these changes are likely to outlast the economic downturn," she warns.

 

the BIG Picture Fall 2010 Forecast

On Wednesday the 19^th I attended the Big Picture forecast for Fall 2010 presented by my friend, David Wolfe, Creative Director of the Doneger Group www.doneger.com

 

I learned that there is a glut of fashion that has been recycled and repurposed from past years, but nothing per se that is truly new or unique. This, combined with no clear direction in styles like short skirts or pantsuits for women has lead the consumer to not purchase anything new. This is not surprising as many of us have heard that while the recession is over, the road to recovery will be long and perhaps arduous.

 

In the world of interiors, there seems to be a similar glut (is interiors following fashion or vice versa?) which only seems to be surpassed by limited edition furniture and art that functions as furniture. Otherwise, much seems to be a variation on a theme.

 

The message to design professionals will probably be to help clients work with what they have and introduce that which that have not seen.

Art for the people!

I was recently at a reception at the home of Mr. Eugenio Lopez who graciously hosted LAND http://www.nomadicdivision.org/ , a new organization dedicated to sharing the arts with the public in various, non-traditional settings throughout Los Angeles. They will be primarily working with Mexican artists and arranging viewings/installations that will be free to the public, democratizing the process of learning about art and sharing in the rich cultural heritage of Los Angeles and it's neighbors!

excerpt from my new book "Marketing Interior Design"

As this book is nearing completion, the world economy is sliding into a recession which will most likely still be with us well after the release of this book. Moreover, the changes that are necessitated as a result of the financial crisis may well be permanent. To suggest that the playing field has changed is an understatement. Stephen Covey describes our current business environment as one of “white-water management.” The turmoil of the surrounding waters is so loud you can’t hear the other people in your raft who are trying to coordinate efforts to stay afloat, and the surface is always changing so constant adjustments need to be made to course and paddling.

While it would be easy to despair, perhaps changing industries altogether, I don’t think that’s necessary. If you follow the signs, there are some obvious directions to take that I think will lead to future profits. The industry as we know it today will be a vastly different landscape in 2009 and beyond. There are a number of demographic factors which are worth noting and through which designers will flourish when the economies rebound.

A resource that I have found invaluable is the “Environmental Scanning Report ” issued by the American Society of Interior Designers on an annual basis. While the report is worth the full read (available to members at www.asid.org), I have extracted what I think are the most salient points and their application to your career from the 2008 report. The report was produced earlier in the year, and much has changed with respect to the world economies with the failure of many banking institutions and the lowering of consumer confidence in general. Alas, these financial cycles happen. My  focus is on what is needed when we cycle up again, as we will.

By 2025, the world will have a billion millionaires! That means that the rich are in fact getting richer and multiplying. While North America has the highest concentration of wealth today, it is recognized that populations of the wealthy are growing faster in developed and emerging markets in other parts of the world. A good acronym to become familiar with is BRIC, which stands for Brazil,Russia,India and  China.. They are busy growing their economies and producing  millionaires and billionaires and will eventually surpass the in these numbers.  It is imperative that businesses focus on the global marketplace for future clients, whether it is for design projects in the USor elsewhere in the world. People are also living longer, especially those with money. By 2030, the number of people in the US

over 65 years of age will more than double.(There are similar statistics for other, developed countries.) The key forces that are radically altering medicine, such as nanotech, neurotech and genomics, are leading to longer and healthier lives. More importantly, this market segment is not content with sliding into retirement and watching TV. They want to continue enjoying their lives. They are getting out into the world; they are involved in their communities; and some of them have the money to fuel their passions.Chances are, many of them will be Asian and Hispanic. In fact, 12% of the USpopulation in 2004 was foreign-born. It is important to be aware of cultural differences and to recognize that what’s normal in the USmay not be so to a consumer from another country. Many Asian cultures have extended families living with them which require expanded living spaces, special cooking facilities, and more. While this does not call for a wholesale alteration of business practice, a little sensitivity might go a long way. With these factors in mind, prudence dictates focusing on the high-end market, aging-in-place and universal design—and learning another language as well, or at least hiring someone who speaks Spanish of an Asian language. These demographic changes are going to happen regardless of the economy today: they are permanent shifts. Look at your business today and decide what you need to do to meet the needs of your evolving clientele, from continuing education courses in design schools, study tours to other countries (the best way to learn about another country is to visit it), and cultural diversity courses.

World influence is shifting from the West to the East, with Indiaand Chinapoised to surpass the US

in economic dominance. The sheer the numbers of their populations combined with their growing manufacturing and technology sectors make these nations likely take the lead from the USand other developed countries. India, largely because of its democratic government and transparent financial reporting, may well attract more financing and surpassChinain economic dominance.

the recession is over!

According to an internal RIC report issued by Bank of America/Merrill Lynch for July 2009, the recession is over! YAHOO!  Now begins the “shaky” road to recovery says the financial bigwigs….i wonder if those analysts were paid big bucks to surmise this?

I’ve been hearing mixed messages from different clients, vendors, showrooms, etc, that say things are just slow right now. Yup, their slow!

So get out there and expand the universe you are appealing to, cast your net further, and be really optimistic about what you are doing. Don’t worry about how your peers are fairing, because it doesn’t matter! What matters is the effort that you put into your marketing and that you are successful. The economy will improve, we all know that. Now act as if it is already improved!

Spending Inconspicuously!

Last night I attended a meeting of the Luxury Marketing Council and the topic was “State of the Luxury Automobile Industry” http://www.luxesc.com/pll/luxury_calendar/event_details/?eventID=119

What was interesting is that we discussed purchasing habits and price points to figure out who is still spending money today and the feedback is quite interesting! The lower-priced cars like the BMW 3-series are still doing well. The mid-ranged (or luxury for some) $70-120k is suffering. And the $300k collectible cars are still doing very well.

 

One might suggest that if a consumer with money (the rich) think that something is an investment or is something they are passionate about, they will still spend. Here’s the catch: this car might be stored somewhere out of sight, and not displayed conspicuously to their neighbors and colleagues. Conversely, this same individual may not buy a new Porsche at $120k because they don’t think it appropriate to be driving a new car when they might have laid off employees from the company they own.

 

The translation for the interior design industry is to market design that looks like it has always been there and not necessarily new. Now may be the time for less bling and more comfort!

Marketing for Interior Design

My debut book on marketing and pricing for the interior design industry is being published next month through Allworth Press in

New York

. And rather than wait for it to be in Barnes & Noble on July 28th, go to http://www.toolstothetrade.com/index.html#mid and order your copy today!!!!

Thank you!

Art Marketing & Cultural Philanthropy

Every thriving metropolis is ingrained with the motion of dancing feet, scenic historical architecture, a harmonic music scene and museums filled with art to quench the visual appetite.  Culture is all around us; we embrace it in our personal lives, so how do we as business leaders support the arts in our cities while promoting our products, services and messages?

Attending and sponsoring cultural events - theatre, ballets, fundraising galas - are great ways to have a presence in the arts world.  But beyond structured events, how can the arts and cultural world unite with regional businesses and vice versa?  True collaboration and strategic thinking can meld one with the other.  By engaging with arts organizations, you can incorporate out of the box thinking into your marketing plan.

Think about partnering with cultural alliances to fill a need that may be untapped.  For instance, the City of Philadelphia Mural Arts Program is helping to revitalize the city through artwork that expresses community culture and history, fostering youth development and supporting artists by developing hundreds of murals in Philadelphia, including a partnership with the Philadelphia Eagles.  One side-effect of their original mission is the mural tour operation now available to tourists and residents.  Proof that there are many untapped art appreciators right in your own community!

Even if you are ready to partner with the arts, there are several driving factors to consider.  These factors include the ebb and flow of marketing dollars, the strength of the economy and a company's philanthropic mission.  Regardless of whether partnering with the arts is the right move for your business, consider the influence that art and culture has on its patrons. Isn't it the captivated audience that all marketers covet when strategizing brand promotion?  The arts have the power to captivate and transport patrons, engaging them in the experience and all partners involved in its organization.  It's your logo on the program, your President giving the champagne toast at the gala and your brand in front of thousands of prospects.

It's not just having a cultural presence in the community either; art appreciation starts at home, in schools and with progressive offices (e.g. Bank of America).  Businesses that incorporate the arts engage employees and promote creative thinking.  Interior designers are finding that when decorating office space with paintings, employees are asking to know more about the artist.  Art creates a unique ambiance in traditional office spaces.  Imagine for a moment how engaged a company's employees would be if surrounded by blank walls all day long.  Stimulating the creative juices with art as wall décor can foster engagement in conversation and bolster morale.  Plus, knowing that the company you work for is supporting area arts and culture goes a long way.

If you are ready to break through that fourth wall, brainstorm ways to become a partner with city, state, private art sectors and cultural programs.  Your business will be exposed to an audience with expendable income (theatre and orchestra tickets can be pricey) who may prefer to support a local business or industry with cultural ties.  Plus, the arts evoke a sense of emotion, which can draw the consumer closer to a brand, your brand.  It's beyond taking an ad out in a program or donating a gift basket for an auction - it's teaming up with the non-profit world in unique and distinct ways.  It's time to break the barriers between the art and business worlds!

Always wanted to meet the executive director of a

Philadelphia

based museum?  Thinking about implementing an arts marketing program for your business?  The Luxury Marketing Council of Philadelphia can help.  Contact Diane Lemonides, Founder & Chairwoman at 610.361.0400 or dlemonides@lmcphila.com.