[LooseWire Blog] The Changes A-coming
Dear Subscriber, I hope you and your loved ones are healthy and safe. Here's an offering on where we might go next, or at least a warning on predicting that. (Next post I will do exactly that). I’ve also included links to a couple of recent pieces you might have missed: How do subscriptions fare in a recession and Apple Watch VS the Swiss Watch Industry.
As always, I welcome your thoughts, and would love to know how you're coping, and where you see this going, in the short-, medium- and long-term. And how it might affect your work and industry. Unsub details at the bottom (you're on this infrequent list because we've talked in the past, we're friends or both, but I won't be offended if it's one email newsletter too much. We’ve all been there.)
Jeremy
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The Changes A-coming
Covid-19 has reminded us, if we needed reminding, that people behave in unpredictable ways. We are not, it turns out, rational beings. Our leaders lead from the front, the back, not at all, or just feather their own nest first. People defy curfews; they cough on others, smear their saliva on lift buttons, and fight over toilet rolls. Others sacrifice themselves helping strangers, look out for neighbours they barely know, sing and perform to lift others’ spirits. This should give us pause before we start predicting what the world will look like after the virus.
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How do subscriptions fare in a recession?
The subscription model (‘subscription economy’ was a term apparently coined at least four years ago) is becoming de rigeur in many zones. App Annie’s recent State of Mobile report found that In App subscriptions contributed to 96% of spend in the top non-gaming apps. As an overall proportion of spend they rose from 18% in 2016 to 28% in 2019 (games, of course, still dominate.) It concluded in a recent post: “Clearly companies across industries need to not only be thinking about their mobile strategy, but also their subscription strategy, if they want to succeed in 2020.”
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Swiss to Cheese: Apple Transforms Another Industry
Another Apple product I’m unlikely to purchase — a smartwatch. I don’t need more screens to look at frankly, but I doff my smartcap to the company for the way they’ve usurped an industry that already existed and then doubled it. This approach has some parallels to the AirPod strategy, which I looked at before : take a market that exists, wait until the technology works, have a couple of shots at it, dominate it and then expand it. Here are the latest numbers, courtesy of Strategy Analytics...
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