Industry today is a far cry away from the days of Henry Ford’s famous quote “You can have any colour you like, as long as it’s black”. Consumerism has developed to the point where every niche is catered for, every permutation explored and every conceivable service delivered.
Through the introduction of e-commerce, any product developed anywhere has the potential for a worldwide audience. The result for some of our old brick and mortar institutions has been devastating. Woolworths, Blockbuster and HMV all suffered cataclysmic failures because their respective markets evolved around them. But what does that say of the competitors that are left?
At the dawn of trading, commerce depended on what Aristotle called a coincidence of wants. For the efficient allocation of resources, there was a degree of chance that the leatherworker required grains as the farmer required shoes. Even once banknotes were introduced as a low-weight commodity surrogate, inefficiencies were still harboured as the perceived credit risk of the banks would impact their trading value.
Today, we have no such issues, and as of 2018, even card payment fees are to be removed. Truly, we are entering a period of legitimately free trade, at least on our own shores. This means less inefficiency throughout the market mechanism, which is driving us further towards exponential growth.
If not then on convenience and pricing, where do businesses now compete? How is value added to a service to effectively differentiate one provider from the next? To put it simply, there are two paths to follow: Novelty or Nostalgia.
Novelty for years has been achieved through technological advances. Elon Musk has made waves in backing for Tesla, Space X and the Hyperloop. Kickstarter.com has shown us that even unknown and inexperienced entrepreneurs can encourage punters to part with their hard-earned cash on the promise of a new idea.
Nostalgia is arguably much more selectively available. While many UK caravan parks and smaller attractions benefit from the annual family trip, this pales in comparison to the huge draw of intellectual property from the likes of Disney, Universal Studios and Legoland.
Whilst TV and film are excellent mediums for storytelling and building emotional connections, there are missing steps between viewership and merchandise sales. As any NLP practitioner will say, there must be a change to a kinesthetic mindset before a customer is willing to make a purchase.
According to a report by PWC, one of the latest trends for the attractions sector is the forging of partnerships with intellectual property owners. Peppa Pig, Sonic the Hedgehog, Angry Birds and Thomas the Tank Engine all appear in theme parks across the UK, with Wallace and Gromit creators Aardman Animations currently negotiating IP agreements in Kent.
By reinforcing the immersive worlds of the IP developers, attractions are able to embolden their own offerings through emotional resonance – leading to gains in trust, perceived value and market penetration. For the IP owners, this is a great way to see their creations come to life, to reinforce their own fan-base and to make the next step towards merchandise sales.
It’s no coincidence of wants that in the last decade Disney has bought both Star Wars and Marvel, while Netflix has produced Marvel TV shows and another Star Trek reboot. Nor is it any wonder why Angry Birds, who have arguably mastered the microtransaction have branched out into theme parks, film and TV for further exposure. Keen to gain renown, Halifax has even eschewed its own star Howard Brown in favour of Hanna Barbera classics Top Cat and The Flintstones; while Howard Brown himself recently starred in a cameo for Hotels.com.
We’re certainly entering strange times in terms of intellectual property, and it seems unlikely that Skeletor and He-Man will be the last classic characters to be reemployed in vastly different roles to which they are accustomed. Collaboration these days is every bit as important as technological advancement. To return to Henry Ford, “If everyone is moving forward together, then success takes care of itself”.