1997 Summer Issue

Fashion Industry Relies on "Coolhunters"

Fashion has been turned on its head. No longer is fashion dictated by the big couture houses and trickled down to retailers; it is now decided on the street. This change has given rise to a new profession: coolhunters find and watch so-called cool people for hot new ideas. Apparel companies are slashing the time between concept and sale from 18 to as few as 6 months in order to react faster to these fresh inspirations from the street.

Internet Facts

• The number of e-mail messages moving through U.S.-based PC networks is increasing rapidly. In 1994 there were 776 billion. The numbers expected for 1997 and 2000 are 2.6 trillion and 6.6 trillion respectively. Numbers include intranet and Internet messages.
• An American Management Association survey shows that many executives use the Internet rarely because they consider it too slow, too little known by the business world and not secure enough. More than one-half said they use it to keep up with office work from home. Only 34% don't use the Internet at all in the office.
• Internet users, on average, log on for 10.5 hours per week for business reasons.
• The top three reasons users return to a web site: very entertaining (56%), grabs my attention (54%) and extremely useful content (53%).
• Household users average 9.4 hours a week online. Activities replaced by going online are television (30%), household chores (17%) and reading a book (11%), spending time with family (9%).
• About 45% of Internet users are female.
• The expanded use of personal e-mail and voice-mail is blamed for the 27% drop in average household spending on postage from 1989 to 1994.
• More than one-third of Internet users say they are not willing to pay for information they find online.

New Cultural Mix Affects Marketing Practices

By the time today's toddlers reach middle age, every American will be a member of a minority group. The number of Americans who want to live in a racially and ethnically diverse neighborhood is rising and reached 47% in a 1995 Newsweek poll. A 1997 Knight-Ridder survey found that the wealthier (earn over $50,000 per year) and the younger (age 18 - 29) respondents are the most accepting of new immigrants and the resulting changes in society.

How has this change in our population mix and attitudes affected marketing practices? More than one in four full-page advertisements containing people include images of minority persons. This survey was completed on the top 13 most popular mass circulation magazines in the U.S.

Hospital Use of the Internet Increasing

Only 20.4% of hospitals are using the Internet for marketing purposes. Most of these (79.7%) have done so for under one year and 84.7% have yet to devise a formal strategy for Internet use. In contrast, 52% of those not marketing via the web say they plan to hop online in the next few months. Two-thirds of the non-users believe the Internet will be an important tool in the next five years.

Women's Presence in Business

Today, almost 8 million businesses in the U.S. are women-owned. These companies employ 18.5 million people and generate $2.3 trillion in sales.

Women are also gaining respect in the board room. Last year, they finally broke the 10% barrier for total board seats held on Fortune 500 companies. There was also a 21% increase in the number of boards with multiple female members between 1994 and 1996.

Bullets

• Twenty-nine percent of Americans own at least one dog, 22% own a cat and 10% own both. Families with children between the ages of 12 and 17 are more likely to own one or more of these pets.
• Honesty and integrity (32%) are the most critical qualities in a job candidate. No surprise here -- until you compare it to a similar 1990 survey where verbal skills rated the highest and honesty received only 7% of the vote.
• Around 40% of all U.S. retail sales in 1996 were by franchised businesses. This number should rise to 50% by the year 2000.
• Books will still be common in 100 years according to 56% of those participating in a January 1997 Newsweek poll. Forty-one percent think books will have become collectors' items by then.
• Women have an average of 5.3 crying episodes per month. Men have only 1.4. Healthcare professionals claim that many of the health problems that men experience are in part due to their inability to show emotions or cry.
• One-third of all pet owners have called and left a message on their answering machine for their pet while away from home.
• Bright colors increase appetite. That's why you'll see vibrant red, yellow and orange in many fast food places. Dieters might consider decorating their own kitchen and dining areas with darker or neutral colors.
• In 1995 children had a direct influence on $170 billion in sales of products and services. This figure is growing 20% each year. Children's indirect influence is double this amount.