Thursday 25 April 2024

Brands-with-a- small -“c"

 


There are a couple of words in the English language that are often suffixed - in speech - with a small “c”. One of these, catholic-with-a-small-“c”, means “universal, all-embracing, broad-minded, tolerant.” The other one is conservative-with-a-small-“c”. And this means - surprise, surprise - “tending to conserve (keep from harm, decay or loss, with a view to later use), averse to sudden changes".

In 2024, both of these words have a pretty bad rap. Blame the capitalised versions, but which brand today would dare to list “catholic” or “conservative” amongst its values?

No, brands today all want to be “progressive” - as an aside, this probably sounds more palatable than “activist” for some of the more conservative stakeholders. Progressive, advancing forward, open to new ideas, innovating all over the place, righting wrongs, acting with purpose, making agile leaps ...

And that’s fine, particularly for brands in tech, mobility, high fashion - and similar categories.

But I do wonder if, in this swarm of bright and buzzy continuous reinvention, a brand that’s unashamedly conservative stands out?

After all, people do look to brands for stability, reassurance and dependability. Particularly in categories like food and drink, banking and insurance - or even babycare and petfood. This comes from a sense of continuity, hanging on to what works, maintaining a consistent distinctiveness.

It’s well-known that the “modern mainstream” are less enamoured by progressiveness than the marketing community. Movement and change is not always in a positive direction.

And isn’t being conservative, by its very nature, more in line with sustainability? Conservation rather than constant updates, upgrades, pivots, redesigns and relaunches?

But doesn’t this all sound rather undynamic and stuck-in-the-mud? Far from it - after all, a conservatory is what allows tender plants to thrive.

And there’s a wonderful quote, often attributed to Gustav Mahler, Benjamin Franklin or Thomas More, but probably from French Socialist leader Jean Jaurès :

Tradition is not the worship of ashes, but the preservation (or passing-on) of fire.


Friday 5 April 2024

My name on it

 


For all the talking I do about personalisation, it’s only when I receive brand communication deliberately directed at me, and me only, that I realise its potential impact.

It’s six years since I was pleasantly surprised by a direct mail flyer from a local sports store - which, incidentally, I’ve kept to this day. 

My latest encounter happened today. I’ve recently been reviewing my insurance policies (always fun in Germany). Allianz have sent me a couple of little personalised videos about my revised policies.

To be honest, they are only personalised to the extent that my name appears from time to time, as in the screenshot above. And I know only too well now that there’s no magic about this with AI these days. But they’re well put together and quite entertaining (a dummy called “Johnny Crash” demonstrates the Accident Insurance - well, it made me giggle). 

I know this’ll become standard, and quite likely, I won’t notice this sort of communication in future. So why am I blogging about it?

I felt well-disposed towards these films, and there’s a simple reason for that. Context. My insurance representative spent two hours with me last week, in my sitting room, getting to know me and my insurance needs. Yes, he was selling me insurance, but that’s his job. By the time these films arrived, I’d already signed the new contracts and had the feeling that there’s someone working for Allianz who knows what’s necessary about what sort of person I am and what makes me tick. 

Contrast that with some bright agency spark “powered” by AI who decides to “serve” me brand communications out of the blue, featuring a short-sighted old bag with pasty white skin.

There’s personalisation, and there’s putting people in irrelevant boxes.

Tuesday 2 April 2024

RETROWURST: Sekt April 2006

 

In this uncharacteristically bubbly article from April 2006 (why so many exclamation marks? What had I been drinking? Oh.) I gave a quick slurp-down of the German Sekt market. Its commodity-commonplace nature. Its sweetness and general perception of harmlessness (as recommended to breast-feeding mums). Its alarmingly low prices. And the dominance of the star of the former DDR, Rotkäppchen.

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Over Easter we’ve all probably over-indulged, either in chocolate or perhaps in hot-cross buns – or maybe in the subject of this month’s Extrawurst: sparkling wine. 

 

While sparkling wine still has a bit of a luxury status in the UK, Sekt, (from the Latin for dry) as it is known here, is more of a commodity. On the flimsiest of excuses for celebration, bottles of Sekt seem to appear from nowhere to anstoßen or drink a toast. While Champagne and sparkling wine seem more related to each other in the UK, the two are worlds apart here: real Champagne is drunk only on the most exclusive of occasions whereas Sekt is very much an everyday product.

 

Sekt has been produced in Germany since 1826 when a Herr Kessler brought back his knowledge of Champagne production to set up Germany’s first Sektkeller. There are various quality levels and descriptions for Sekt in Germany, for example, whether the process includes a Methode Champagnoise-type turning or not, which is all strictly controlled by the E.U these days, as you can imagine.

 

As well as quality variations, there are a wide variety of dryness and sweetness levels, most of which seem impossibly sweet to UK tastes! The range goes from mild to halbtrocken to trocken to extra trocken to brut to extrabrut. I would strongly recommend UK tasters to stick to extra trocken and above!

 

Sekt is drunk on all manner of occasions and is generally regarded as a “harmless, fun little drink” such that people who don’t normally drink will also take a glass. Sekt is even recommended to breast-feeding mothers to increase milk production. As well as the normal 0.75l bottles, small bottles of Sekt (0.2l, known as Piccolos) are also popular, seen as a reasonable size for someone to drink alone, perhaps in the evening when the other half is having a beer.

 

Although sparkling wine from other lands is available in Germany – for example, Cava, Prosecco, Crémant or Krimsekt from the Ukraine – home-produced Sekt takes the lion’s share of the market. A recent development on the German market in Hessen where I live is “Pomp” from Kelterei Höhl, which is a mix of Sekt and Apfelwein (the local speciality which tastes like a very tart cider). It does taste better than it sounds!

 

The popularity of Sekt is not unrelated to its price. Although Kaiser Wilhelm II introduced Sektsteuer or “Sekt Tax” to finance the imperial fleet (which is still continued as far as I know, even though the Kaiser, his fleet and his empire are long-since gone) a bottle or two of Sekt is hardly going to break the bank for most people. While a bottle of a premium brand such as Henkell Trocken will set you back €4.99, Aldi have a Riesling Sekt for €3.49 or a standard Sekt for €2.49, which is well under £2.00! 

 

Some interesting websites relating to Sekt include www.sekt.de , which is a site from a collection of the major producers, plus the individual sites of some of the main brands such as www.fuerst-von-metternich.de , www.deinhard.de , www.henkell-trocken.de and www.soehnlein-brillant.de .

 

However, maybe the most interesting Sekt brand of them all is the one that claims brand leadership: Rotkäppchen.Rotkäppchen means “Little Red Riding-Hood” in German and the brand itself is characterised by the red metallic top on the green bottle. Rotkäppchen is an extraordinary brand as it is one of the very few DDR brands which has not only survived the re-unification of Germany but has also won the heart of the former West German consumer.

 

Rotkäppchen is a commodity Sekt: the basic wine comes from Italy, France and Spain as well as Germany and there is no fancy turning or bottles here: the wine ferments in big vats with the addition of yeast and sugar. Having said this, the brand does have a history and heritage that long pre-dates the DDR: Rotkäppchen was first produced in 1894 in Freyburg an der Unstrut in Saxony. In the DDR days it was very much seen as a luxury, but a luxury that was affordable now and then even amid extreme socialism. In those days, Rotkäppchen was selling about 15m bottles per year- that’s about a bottle per head per year.

 

After the Wall fell, so did Rotkäppchen’s popularity to an all-time low of 1.5m bottles per year in the early 1990s. The former East Germans turned their backs on their old friend, demanding “proper” West German Sekt, while the former West Germans turned their re-unified noses up at what was seen as a cheap-and-nasty party fizz for the socialist masses.

 

Rotkäppchen’s saving grace was a management buy-out in 1993. The management team, led by the current MD, Herr Gunter Heise, really turned the brand around through clever marketing and their inherent faith in the product and brand. While the advertising and the presentation of Rotkäppchen may look a little Ferrero-Ambassador’s party to us cynical Brits, the brand has really caught onto the German middle classes’ yearning for “a little bit of Heimat glamour and luxury”. There is a sense of escapism back to an age of romance and beauty, albeit with a fairy-tale familiarity that is very appealing to a country terrified of an uncertain future. And all of this for a mere €3.99 per bottle!

 

Rotkäppchen is now Germany’s No. 1 Sekt brand, selling 66m bottles a year. 50% of the sales are accounted for by the halbtrocken variant which says a lot for where it has found its customers: the middle-of-the-road female pillars of German society (of which there are many!) with a sweet tooth and the yearning to play the mysterious lady in the red dress if only in their dreams.

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Well, despite a Prosecco surge that must have started not long after I wrote this, and rather more pink fizz around, very little has changed. The prices are still pretty good:

Henkell Trocken 2006 €4.99, 2024 €5.49

Rotkäppchen 2006 €3.99, 2024 €4.99

Aldi’s Riesling Sekt 2006 €3.49, 2024 €4.69

Aldi’s standard Sekt 2006 €2.49, 2024 €2.69 - Aldi also have a Secco Vino frizzante for €1.99 

And Rotkäppchen is still leading, having also branched into non-sparkling wine and the very popular alcohol-free sector.

Perhaps the “harmless” image was a deliberate ploy all along to pave the way for the sober-curious or whatever they’re calling themselves these days.

Hic!


Friday 22 March 2024

A drink in the Black Forest

 


I first travelled to the Black Forest around the time of this musical masterpiece (or at least, the Herb Alpert version). My parents bought me a little plastic cuckoo-clock-style house, which you could peer into and click a button for changing colourful landscapes - dark pine forests, snow and sky, sweeping lush pastures with perfectly positioned cows.

I didn’t return for more than two decades, which is when I most likely first encountered the wonderful Pils from Rothaus brewery - Tannenzäpfle. The pine-cone beer. The beer has been around longer than I have, and originally featured an illustration of a the typical Schwarzwaldmädel beloved in the wholesome Heimat films from the 1950s. These were a kind of escape into a world that never really was, an attempt to console the German population and blot out some of the stains of Nazism from the national psyche:


The label was redesigned in 1972, with a graphic version of the young lady - nicknamed “Biergit Kraft” by brand fans. I recall that this characteristic bottle was the beer available at the primary school’s “garden” at our local Hof und Gassenfest, along with Baden wines and Schwarzwald sausages, further imprinting the idyllic imagery in my mind. It’s a brand that’s a long way from edgy, gritty, urban pubs or laddish humour. In the past, sponsorships and a bit of outdoor aside, Tannenzäpfle hasn’t been a huge advertiser. But who needs to be, with a label like that?


But that’s all changed. The first big brand campaign for Tannenzäpfle has been developed by Kreuzbergkind (you can’t get less Schwarzwald, or more Berlin than that agency’s name!)

It’s all based around the idea of “Always calm.”



It’s a nice campaign - I like the calm pace, the slowing down, the serenity.

But I wonder: is it a little bit too goody-goody? Substitute other methods of crafting, and it could be for mineral water, or outdoor clothing or something like Bionade. It’s missing the quirkiness of “Biergit Kraft” and her pine cones. 

Pass me a another slice of Schwarzwälderkirschtorte while I consider.

Friday 8 March 2024

Just neat

 


One reason that so much advertising looks identikit these days is the obsession with representation and “people who look like me.” I’ve discussed this in relation to static images already here and here. With film, taken to its logical and literal extreme, the result is invariably one of those generic creations that resemble what we used to call a mood film. No story, just a series of vignettes showing different people all using the brand. 

But with a distinct move back to more entertaining and humorous advertising, it’s time to look behind that mirror. After all, Alice found some pretty weird, neat and entertaining stuff there. And Just Eat have done just that with a delightful series of short films. Close your eyes and listen - you can probably identify with the conversation in at least one of these films. 



Maybe the voices even “sound like you” - or someone you know. Now, open your eyes - someone who “looks like you”? Unlikely, unless you get your kicks dressing up in a furry bunny costume at weekends.

These Wes Anderson-style puppets are the latest in a run of pretty impressive advertising from Just Eat. I am unfamiliar with the brand as I don’t live in the UK, but I know a good thing when I see it as far as creative goes.

Animals and brand mascots have always been a useful trick in the ad magician’s box. 

Cute cats and dogs behaving (almost) naturally - either for “natural fit” brands (real life, like Arthur the white cat, or cartoon like "Cats like Felix like Felix”) or for brands where the association is built (the Dulux dog, the Andrex puppy).

Anthropomorphised animals of all sorts - again, either real or animated/puppets - the Cresta and Hofmeister bears, the Duracell and Caramel bunnies, the CompareTheMeercat bunch, the PG Tips chimps, Tony the Tiger from Frosties ...

Or the vaguely humanoid product mascots - Bertie Bassett, the Michelin Man, Mr. Peanut - although these may be more vulnerable to changing times, as M&Ms have demonstrated.

Given the popularity of cat, dog, wombat, capybara, llama, guinea pig and marmot films on social media it’s a wonder that casting a few furry friends instead of casting around to find someone that “looks like me” hasn’t been revived earlier. 

Friday 1 March 2024

RETROWURST: Ten years in Germany March 2006

 


My latest delve around the Extrawurst archives has made me feel uncharacteristically glum. For this month’s Retrowurst was a personal reflection on how life in Germany had changed in the ten years since my touchdown one chilly March morning at Frankfurt airport, in 1996.

Partly because optimism was my default setting in 2006 and partly because those days really were more hopeful than the current grim era, this article makes me yearn for those days gone by. I characterised the changes I observed as Germany moving from its rigid, rulebound, stuffy character to something more flexible, changeable and fluid. 

Shops were opening up on Saturday afternoons and evenings! 

Women were on the up, even mums in the workplace, with Angela Merkel and the “extraordinary” Ursula von der Leyen in charge! 

A vibrant, southeast-Europe-influenced youth culture, galaxies away from the 80s USA-influenced dull rockstar stuff was thriving!

And that’s not all!

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Around about now – I can’t remember the exact date as I’m not yet that German – is the tenth anniversary of my arrival in Germany. Seeing that there seems to be an overkill of anniversary-celebrating in advertising here these days (this is the “can’t-think-of-a-better-idea-so-let’s-use-our-31st-anniversary-and-some-funny-nostalgia-footage-from-the-70s” school of advertising) I thought I’d join in, be a little self-indulgent and let you know what I see as the biggest change factors in Germany since I’ve been living here.

 

Overall, I suppose it can be summed-up that the Germans are being dragged kicking and screaming away from their rigidity, their rules and their solidity to a more flexible, changeable, fluid way of living. Of course, the rules and rigidity are still there (someone from the local Ordnungsamt could apparently come around at any time and ask us to dig up our laurel hedge because it’s not a plant local to Germany – just let them try that and I’ll give them what-for about flora racism!) but there have been some encouraging signs that things are becoming a little less stiff and stuffy.

 

From my own point of few, one of the biggest changes that symbolise this relaxation in attitude is the change in opening times for shops. When I first came here, everything shut on Saturday at 1 o’clock except for one Saturday in the month when shops shut at 4 o’clock. To be honest, I could never be bothered remembering which Saturday it was and always braved the crowds of formidable Hausfrauen in a sleepy haze every Saturday morning. The only places where there was an exception to this rule were petrol stations, where one could buy emergency items – I remember being viewed with complete disdain as I bought a packet of rice at five-thirty on a Saturday afternoon – or the kiosks where one can buy beer, cigarettes, newspapers and rather nasty wine. Needless to say, these have a rather dubious clientele, and you wouldn’t want to be spotted by your boss buying a couple of bottles of beer from one: it would send out all the wrong signals! 

 

Weekday evenings were also not much better, with most shops closing at six, so you’d often have to rush out of work shortly before six, brave the queues, then dash back in to do another hour or two. Gradually, though things have changed. It’s now perfectly possible to buy food and drink until 8 in the evening without being made to feel like a social inadequate and although Sunday opening still seems a long way off, life is a lot less stressed.

 

Maybe now that they’ve been released from queuing at the Tengelmann checkouts on Saturday mornings and have more time to do something useful and interesting could be one reason that women are (at last!) on the “up” in Germany. I can always remember how completely amazed I was when I arrived here of the conservative, chauvinistic attitude of traditional Germany towards women. I think that, from the outside, one imagines that Germany is a typical modern “Northern European” country, maybe a bit like the Scandinavian countries, in terms of its attitude to women. But my own experiences and those of friends continually proved this otherwise. Young women in Germany are perhaps lulled into a false sense of security: opportunities really are equal in terms of higher education where as many young women are at university as young men. In fact, the men are a little bit “behind” at this stage as the National or Social Service (one year to eighteen months at age 19) is only compulsory for men. And opportunities on the lower rungs of the career ladder seem to be quite fairly spread, too. But it is once women have children that the problems start.

 

It is an alarming statistic that only half of women born in Germany in 1960 with a higher academic qualification have children. Children are still viewed as a career-killer for women: companies simply do not offer opportunities for senior women executives to combine family and career, childcare is inadequate and the school-system is still based on half-days where the children from 6-19 finish at noon without lunch.

 

However, with Angela Merkel in power, together with her Minister for Family, Seniors, Women and Youth, the extraordinary Ursula von der Leyen (a doctor, very photogenic, seven children!), the groundswell of opinion seems to be changing. Injustice in the workplace is becoming a topic of public debate and there seem to be real efforts to drag Germany out of the 1950s (and before) in terms of attitudes to and provision for working mothers.

 

Talking of Angela Merkel brings me on to the next point. Not only is Angie female, but she is also from the former DDR which is a bit of a double whammy. When I first arrived here, the “East” were still very much the poor relatives and somewhat resented. Former West Germans grumbled about the amount of money they were shelling out to the East in taxes and the former East Germans – “Ossies” – were regarded very much as figures of fun: somewhat naïve characters with dreadful fashion sense left over from the 1980s and music taste to match. A few years later, around the early noughties, there was an acceptance that the “Ossies” were here to stay and wave of Ostalgie or “Eastalgia” swept the country with T-shirts sporting logos of former DDR brands, the revival of many “cult” brands and websites devoted to the whole era. Cities such as Dresden and Leipzig were actively pushed not just as tourist destinations but also as potential hosts for forthcoming events.

 

These days, however, the difference, such as it was, is hardly noticed. The roads in former East Germany are every bit as good as those in the West (thanks to all those taxes, presumably) and in events like the national song contest (a bit of homage to Eurovision) it’s hard to say whether the Neu or Altbundesländer are more innovative and cutting edge when it comes to music and fashion.

 

On the subject of fashion – not that I’m an expert on youth culture anywhere at my age – it does certainly seem that the influence of the US on young people here has waned. While certain US-originated styles do seem to have an influence, the youth here take those styles and customise them locally. One good example is Hip-Hop which is more often heard here in the German language on the radio than in the original. Interestingly, it seems to be Southeast Europe that has an increasing influence on German youth culture. With large immigrant populations from former Yugoslavia, Romania, Albania and of course Turkey, German middle-class youth has real life “ghettoes and gangsters” in the neighbourhood with plenty of language and dress codes with which to shock traditional parents.

 

While the kids are getting nicely integrated into Southeast European ways, the rest of the population seems largely happy with closer ties within Europe as a whole. While there was plenty of grumbling about the Euro and how everything had been marked up (ooh, it’s just the same in Euros as in Marks – no pun intended) for the first couple of years, one has the feeling now that people are beginning to see the benefits. It certainly seems to have eased traveling within other Euro countries for many people: driving through Europe these days you hardly notice the borders and you often find yourself asking what country you’re in!

 

The common currency and a few common “enemies” – not least the war-mongering politicians of certain nations - do seem to have united the people of Germany closer with their immediate neighbours. There is a definite feeling of Camaraderie or I suppose I should say Bruderschaft around, especially in places like the Ryan Air airports. The cheap air travel has also contributed to this Eurocentricity, and popping off to Jerez, Montpelier or Milan for the weekend has become as affordable as taking the family to the nasty theme park half an hour down the road. 

 

These are just some of the signs I’ve seen over the last ten years of Germany losing its stuffiness and rigidity. I’m sure there are many others and I’ll keep my eyes and ears open too over the next ten years.

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Well, 18 years on, I am German. The shops are still firmly shut on Sundays and Segmüller still runs dire 131st anniversary radio ads. Some things carried on getting better, such as the lot of working mums, but sadly, too late for me. 

National Service has been abolished, but how long before it’s revived in the current war-ridden mess?

What’s of concern is that some things seem to be going backwards - or rather towards a new and different form of stiffness, rigidity and lack of openness. One rule book has been torn up, but there’s a weird new one in place, written by fear. The former East German states are strongholds for the AfD and other extremists of various shades.

And a thousand and one articles about Germany - The Sick Man of Europe. The less I say about Ursula von der Leyen, the better.

Maybe the answer is to dig out my 2006-tinted glasses and philosophise that perhaps a step or two backwards is inevitably the way forward.

 


Monday 26 February 2024

Can ostriches fly?


 

Next time I’m asked which is my favourite brand, I’ll be tempted to name Engelbert Strauss. I listened in to the OMR Podcast last week, where magaing director Henning Strauss was the guest. Now, the first thing that hit me in the face about this brand is how extraordinary its success has been. 

From the early 2000s to now, sales have multiplied tenfold, from ca. €100m to ca. €1bn. The company has grown from 100 co-workers to around 1,600 today. That would be impressive enough for some Berlin tech start-up. But for a family firm based in Biebergemünd, deepest Hessen, who started off selling brushes and brooms?

A lot is down to the business model, which was the right one at the right time. How much is by design and how much chance and smart choices in the circumstances is hard to say. The fact is that the huge bulk of sales come from Engelbert Strauss’s own online channel. Throughout the company’s history, from the brooms and brushes on, it’s been direct selling, with no wholesalers involved. We call it D2B and D2C these days, and it’s done online rather than mail order or knocking on doors, but the principle hasn’t changed.

A catalogue as the main communication medium? A firm HQ in the middle of nowhere, that few have heard of? I can think of plenty of parallels with IKEA. Could Biebergemünd set up town-twinning with Älmhult? When I worked with IKEA, the spirit of Ingvar Kamprad was ever-present. It was a matter of pride that Ingvar always trusted his instincts rather than doing things by the “Best Practice in Management” book. And there’s a lot of following instinct at Engelbert Strauss, too. Henning Strauss’s period of study in LA had a huge emphasis on the decision to expand into the US. But more on that later.

So many companies bang on about their “Authentic Culture” these days, but family and roots you can’t fake. Ask IKEA, ask Engelbert Strauss. The family have always rolled their sleeves up and got stuck in with the daily business. Henning Strauss referred to the Biebergemünd HQ as their “extended living room” and the logo as “the family coat of arms.” And this democratic culture, like that of IKEA, can be summed up by the idea of a local hero who’s open to the world. When the company calls its customers, they can see the 0 60 50 Biebergemünd dialling code. It’s a Somewhere brand that is at home Anywhere

Business model, culture - the other Engelbert Strauss success factor is a biggie. Customers - relationship and psychology. The brand’s core customers are crafts- and trades- people. And what is clear about everything that Engelbert Strauss does is that it’s done with understanding of and respect for people who do, build, make, repair, maintain. Not just that, but elevating and celebrating Handwerk as something noble and praiseworthy. This all starts with the attention to detail that goes into product design - a typical pair of work trousers from Engelbert Strauss is made from 200 individual components. And that respect goes right through to the marketing. Partnerships and sponsorships are deliberately chosen not just for reach, but to reflect the core customer group interests - football, handball, egaming and heavy metal in the form of Metallica. 

Engelbert Strauss is not just a workwear brand today. It’s a lifestyle brand, worn by off-duty doctors, dog walkers and kindergarten kids. And freelance strategic planners (see above). The brand has ticked the Mark Ritson boxes to get where it’s got. Distinctiveness: name of founder with “quirky” potential outside DE, red & white ostrich logo. Full marks. And Relative Differentiation - not the only workwear brand, but certainly the “quality German engineering” one. 

These are internally-driven factors that have powered the success of Engelbert Strauss. There are broader human societal trends that have put a bit of turbo behind that. One is the recognition of and yearning for Real Work, which became clear to all in the pandemic. Without essential workers, everything ground to a halt. The people who can’t work from home, the people who work with hand and heart as well as head were our heroes. And so should they be.

AI can take over much of office work, generating content, speeding up mundane tasks. But can an AI-powered robot replicate the intrictate brain-hand coordination of an aircraft mechanic? No way. And learning a craft or trade is becoming more aspirational. Maybe it’s because the generation who grew up on Super Mario and Bob the Builder are now finding their way in the world of work. Young people are questioning whether an apprenticeship may be a more useful start in life than studying for years, running up a huge debt with no guarantee of a good job at the end of it. 

For those of us still stuck behind a desk, the more time we spend in the digital world, the more we yearn to get stuck into the physical world with our hands. Make, create, build - do something positive that won’t be lost in the cloud of ephemera. And pulling on a pair of Engelbert Strauss trousers has a psychological effect. You immediately feel more practical, more competent, more of a capable pair of hands. 

The final trend is the changing meaning of masculinity. While Engelbert Strauss is for everyone, its core is the adult male worker. And here, maybe the brand represents a positive, timely antidote to macho-macho and toxic masculinity. Constructiveness, grit, competence, ingenuity, down-to-earthness, honesty and yes-we-can-ness. These are all values that sit comfortably with Engelbert Strauss. 

The latest news from Engelbert Strauss is the US expansion. There are a few challenges with the market, just as there were for IKEA. Two huge competitors in the form of Dickies and Carhartt. The potential confusion with another famous Strauss who pioneered workwear in the USA in the 19th century. And, what the heck has that ostrich got to do with workwear anyway?

Ah, back to the ostrich. It’s obvious that Engelbert Strauss are not hiding any heads in sand. But can ostriches fly? Henning Strauss made it clear in the podcast that he’s not looking to be snapped up by an investor, and expansion is being kept within limits.

Maybe the question is more whether the ostrich wants to fly. Back to the topic of relative differentiation, being flightless means that the ostrich is the heaviest and largest bird on earth. And the fastest on land, with an impressive running speed of 70 km/h. Running, I understand, is far more energy-efficient than flying.

The ostrich’s wings aren’t used to fly. But they do have a role in balance, for courtship displays and for shade. It’s all about adaptation - something Engelbert Strauss are masters at. By design or intuition, head, hand or heart - who knows? But it works.

Engelbert Strauss LA Store exterior


Monday 12 February 2024

Mixed up, muddled up, shook up world

 


I had a lucky childhood.

I grew up believing I could do anything or be anything I wanted. If I set my mind to it hard enough.

At the age of 3 or so (above) I was convinced I was a dog.

I wasn’t at all concerned about whether I was a male dog or a female dog - it seemed irrelevant. I didn’t have any dolls - just a pack of furry toys. Many of them were dogs.

My hair was cut short and I tended to wear my brother’s hand-me-downs. It was a question of practicality. I did have a blue party dress with a sticking-out skirt, which I hated wearing. Not because it was a dress, but because it was itchy.

The boys’ clothes continued into my teens. I grew my hair a bit longer in the 70s, but so did my brother and most of the boys I knew. I do remember us getting muddled up by an elderly relative, who’d thought “the boy was the older one.” He was in purple cords, I was in a Ben Sherman shirt and jeans. We thought it was funny, a bit subversive. 

If you look at photos of groups of young people in the late 60s, 70s and 80s, the boys and girls look pretty similar. From Woodstock to the New Romantics. I dug out what I think must be a book to accompany an exhibition, entitled 14:24 British Youth Culture. It was published in 1986.

You can see the effect in these photos of punks and skinheads by Nick Knight.



But something started happening just after my son was born, in 2000. When he was small, our house was a sea of yellow, blue and red plastic. I bought his clothes from flea markets.

But I did start noticing that the brand new toddlers’ clothes in H&M were sectioned off  into “boys” and “girls”. For  “Mummy’s little man” and “Daddy’s princess."

And Lego had started producing rather “girly” toys.

And our neighbours/fellow primary school parents would have parties where men and women sat in different rooms. Or even “women/men only” parties. This latter phenomenon I initially (rather snobbishly) put down to class or maybe educational level. Or possibly even an age thing, although this seemed unlikely as it didn’t seem to reflect any kind of progress.

And that “Women are from Venus, Men are from Mars” book started a whole industry of pop-gender-psychology. Excerpts from 1950s publications coursed around the internet, demonstrating how dreadful life was for women in the 20th century. I found these somewhat suspect - my mum had two degrees and was better academically qualified than my dad.

Ten years ago, we had the whole full-blown pink glitter pony stuff spilling from the kindergarten into adult life.  

And then came the whole #MeToo thing, the victim/oppression/patriarchy stuff and the omnipresent adjective “toxic.” 

I wondered why on earth I’d want to join a “women only” group from my college, that I’d deliberately chosen because it was mixed. And whether segregation really is progress. 

This data, published recently in the Financial Times, didn’t really surprise me.


But some of the extreme reactions I saw on LinkedIn certainly did. A lot of screeching about how this is evidence that all young men are unredeemable sexist and racist bastards.

Still, I can look forward with optimism. I hear there’s a brilliant new invention called “gender-neutral clothing” for children.

Whatever will they think of next?

Thursday 1 February 2024

RETROWURST: Money February 2006

 


Today I discovered a lost world. That of German banks eighteen years ago. Things have changed and not necessarily for the better. Take a time-trip back to my Extrawurst from February 2006 and discover why Kredit was one of the dirtiest words in the German language. The Germans have plenty of new dirty words these days, mostly stolen from us or our US friends, which is not encouraging. Back then, I wrote about the big banks with their impressive Frankfurt skyscrapers, and their intimidating but competent advisors. The reassuring air of stuffiness and formality, coupled with the persistence of the personal touch, the reluctance to go online and digital with it all.

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The time has come, today, to tackle one of the dirtiest words in the German language. It’s not the word Scheiße or Schweinhund but a rather inoffensive looking and sounding little six letter word: Kredit. Along with looking at the reasons why this is a word so loaded with negative meaning, I’ll have a go at trying to get behind some general German views on all things money and finance.

 

I used to live in Frankfurt where one of the defining features or iconic elements is the skyline, which is dominated by Frankfurt (and Germany’s) leading banks, all vying with each other to see who can build the tallest skyscraper. Since the late 1990s, the Deutsche Bank, Commerzbank and rivals have also been joined by the European Central Bank, the spawning ground (if you like) of the Euro. It is actually quite difficult to get away from money in Frankfurt: on every corner is a bank or at least a Geldautomat and even if you do escape to one of the Olde Worlde Apfelwein pubs in Alt Sachsenhausen, one quick glance skywards will bring you back to the world of money, even if your neighbours at the table aren’t bankers (which would be unusual.).

 

The German banks, particularly the “big boys” such as the Deutsche Bank (www.deutsche-bank.de ), Dresdner Bank (www.dresdner-bank.de ) and Commerzbank (www.commerzbank.de) tend to be, on the surface, somewhat intimidating and less immediately approachable than their UK equivalents. One still gets the feeling, which is reflected in their web presence to some extent, that there will be no chummy banter here and one should really put on a suit when going to the bank, even if it’s just to make a simple money transfer. Although the big banks have moved with the times to some extent, there still seems to be some feeling of stuffiness and formality. However, one can sense a pattern here that is very similar to that of relationships in general in Germany: these tend to develop slowly, step-by-step, until the no-turning-back-friend-for-life stage of “du-sing” is attained. 

 

Although one doesn’t get all the chummy, jokey, for-God’s sake we’re-not-boring-and-we’re gonna-prove-it attitude of UK banks in Germany, we also don’t get the call centres and never speaking to the same person twice that we are beset with in the UK (I know, I still have a UK bank account.) In Germany, everyone has an advisor assigned to them at their own branch, with a direct phone line, regardless of whether you have a couple of thousand Euros or a few billion. These advisors really do get to know you and your preferences when it comes to accessibility of your money, what kind of investments suit you and what your future plans are, which is particularly important in a country where everyone is rapidly having to seek alternatives to the state for health insurance, pensions and the rest.

 

While the big three banks dominate the skyline of Frankfurt, most Germans actually have their account at the local Sparkasse or savings bank (www.sparkasse.de ), Volksbank or Co-op bank (www.volksbank.de ) or the Postbank (www.postbank.de ). While these banks may be a little less intimidating than the big three, they are never-the-less places of seriousness and formality. In fact, when Germans are asked about which qualities or values are important in choosing a bank, trustworthiness, serious and solid reputation and flexible to my personal needs are the top three criteria, with modernity and friendliness seen as “nice to have” but not critical. 

 

Although the banks do seem to have moved with the times, the use of services such as on-line banking is still relatively low in Germany and the idea of physically visiting the bank to make transactions still a very popular one. Even cash dispensers seemed to take longer to catch on here and one feels that there is a huge underlying mistrust of finance and banking conducted by anything other than real people.

 

This brings me on, of course, to that dirty word: Kredit. While things have improved over the last ten years, when I first came to Germany, I was astounded by the unacceptability of plastic generally. To buy a major item, one either had to pay in cash or write out a number of cheques, each of which had a maximum value of DM 400 in those days. Credit cards were scorned and frowned upon almost as much as if one came up with a begging bowl. Again, the distrust seems to stem from a very direct relationship that Germans seem to have about money: carrying large wads of cash around or openly discussing with strangers the cost of your house or car are not seen in any way as vulgar displays but rather as an honest, straightforward approach.

 

Credit cards are still barely accepted today. Visitors to Germany are often surprised and embarrassed that restaurants turn their noses up even at Mastercard and VISA. And the Mastercard and VISA cards here tend to be cards that are paid off within 4-8 weeks, so not real credit cards at all! Mastercard did themselves no favours with the German public by making the World Cup tickets draw only accessible to Mastercard holders. However, a step in the right direction, to win the Germans’ trust in plastic money has been made in the last few years with the introduction of the “ec card”, a form of direct debit card that doubles as a cash card that is issued by most banks. But to think that this has only been in general use for the last 5 years or so is astounding.

 

Part of the disgust for credit cards may well come from the fact that they are seen as coming from profligate and decadent lands, such as the US and UK. Perhaps if one of the big German banks could introduce a very serious, trustworthy and solid credit card (maybe made a bit thicker than “your flexible friend”) that signaled control and financial acumen instead of profligacy when you took it out of your wallet, they could be onto a real money-spinner.

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Things probably started to go sour in that fateful year 2008. The Dresdner Bank was acquired by the Commerzbank in May 2009. 

What do we have now? Blowing up cash machines seems to be a national hobby. Bank branches are disappearing faster than tigers. I’m reduced to asking for cashback at the supermarket more often than not. While Covid speeded up the move to a cashless society, there are plenty of flies in the ointment - local independent shops and restaurants who don’t take cards - and who can blame them?

I’m still hanging on in there with the Commerzbank in the hope that things will get better, but I’ve been let down by them far too often, with the resulting loss of trust. Frying pan and fire come to mind.

Still, things aren’t quite as dire as they are in the UK. But that’s another story. 


Thursday 25 January 2024

Status Quid

 



If any British retailer represents the Status Quo, it’s Marks & Spencer. That’s why I was a little taken aback, then rather tickled, to see this TikTok ad which seems to have upset the Status Quo of the advertising world.

The origins of the film are interesting. Campaign rather sniffily just refers to it being “in-house”. But what actually happened is that M&S have been giving their store managers autonomy to do their own thing on social media for a while now. One young store manager - the chap who appears at the beginning of this video, who’d been doing his own TikToks for a while - put up his idea via the digital equivalent of the old-fashioned staff suggestions box.

Advertising types in trendy parts of London, predictably, find the result quite ghastly. And yes, it is cheesier than the counters of all the M&S Food stores put together, but that is its charm. Why is Barbie acceptable cheesiness, while this is not? 

But even worse than the creative types tearing out their rainbow hair are the pompous planners on their high horses about branding. I am at a loss to understand how this little film - it’s hardly a multi-million image campaign - can be detrimental to the brand.

The message is highly relevant to our current “counting the pennies” situation. It shows that the brand knows exactly where people are.

The jollity and exuberance of band, staff, influencers and customers will surely attract a few more people in-store rather than ordering online.

Francis Rossi and his band are just as much a national treasure as Twiggy, Dawn French or any of the many M&S spokespeople - best of British and unafraid to take the p*ss out of themselves.

And the beauty of it is - as with top-notch humour - it unites people across generations. Rather like this rather more spectacular ad from Australia:



If Francis Rossi rakes in enough money to get a new guitar, I won’t begrudge him that.

Monday 15 January 2024

Old, new, borrowed and blue - or purple


 

One of my favourite German ads from last year was this 1980s extravaganza from Perwoll. And little did I know it last March, but this heralded a rather nifty “practice what you preach” trend in the ad world. Ad recycling. 

Mars went all-out for it with their Healthy Planet Productions Campaign , where well-loved ads for M&Ms, Twix and Bounty have been repurposed to draw attention to the carbon impact of advertising and get some new messages across about climate change. All while saving on production costs to client coffers and planet. 

The other bit of good news about this is that System1, suppported by Mark Ritson, have long been casting doubt on the marketer’s bugbear of “wearout". If an ad is any good, it might still do your brand good 19 years later, rather like one of the Princess Royal’s outfits, which never seem to wear out.

Recycled and repurposed items made it onto the Christmas wish list for many responsible citizens. And responsibly-minded clients got recycled ads. If not the specific execution, then at least the idea - such as Cadbury’s extending their previous year’s campaign into OOH media.


And then there was the heartwarming recycling of the Shake ’n’ Vac song, or Double Diamond works wonders and other jingles from the past as reminiscence therapy for dementia patients via Heart radio and The Wayback Project. 



And the trend shows no sign of abating. This rather wonderful film from Cadbury’s (again) is not really a direct recycle, more a mix of old, new, borrowed and blue. Or is that purple?



What’s clever here is that it not only reinterprets the original Cadbury’s Mum’s Birthday ad ... but it also borrows from a rich school of “heritage” ads - something that the Brits do particularly well:




Some may bemoan the lack of creativity and originality here, but I beg to disagree. Choosing exactly the right combination of familiar and surprising elements for these films is an art.

Could 2024 be the year of the Circular Adconomy?

Tuesday 2 January 2024

RETROWURST: Drogerie Wars January 2006

 


I’ve just done my first shopping trip of the year in dm - I couldn’t quite face all the eager beavers buying groceries just yet. Maybe - as I wrote in this piece 18 years ago - there is indeed something calming about the dm shopping experience that’s just right to get you back into the swing of things.

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To start off the New Year, my first Extrawurst for 2006 will take the theme of “drugstore wars”. Before we get into the armies involved, I probably need to just say a little bit about German drugstores themselves. First of all Drogerie or “drugstore” is a bit of a misnomer. A Drogerie is really not the place to go looking for a quick way to deal with that New Year Schnapps-induced hangover as the strongest drugs one is likely to find in these places are herbal teas. Drogeries do not sell anything classed as a medicine, although they do sell a very wide range of herbal remedies and teas.

 

The main product categories on sale in a Drogerie in addition to the herbal remedies are beauty products of all sorts, household goods, paper goods, baby foods and pet foods. In addition, you may also find baby and children’s clothing, seasonal knick-knacks and decorations, toys and some food and beverages. There may well be shop-in-shop stands, such as Tchibo or services for films and mobile phones.

 

Now, you may well be thinking “Aha! Boots!” but somehow the Drogerie has much less of a feeling of competence and trust than Boots and more a feeling of a sort of health-and-beauty bazaar. Even Superdrug has a more serious feel to it than these German Drogeries as they at least have some element of pharmaceutical competence. Because anything to do with medicines comes under the very serious business of the Apotheke, the German drugstores have an image more akin to their supermarket cousins.

 

Of course, most large supermarkets have a section where one can buy all the products one would normally find in a Drogerie but many people prefer to do a separate shop at the drugstore as a greater range is offered and, quite often, lower prices. Drogeries can be found in both high street/shopping centre and out-of-town locations.

 

So, onto the combatants in the drugstore war. First we have the Drugstore King- Schlecker. Schlecker celebrated 30 years of business in 2005 and is among Germany’s Top 25 family-owned businesses. The billionaire owner, Herr Anton Schlecker is up there in the ranks with Germany’s other kings of discount- Theo and Karl Albrecht (Aldi) and Dieter Schwarz (Lidl). Herr Schlecker, who collects exclusive sports cars in his spare time, started his business 30 years ago in Baden Württemburg, South Germany, on very clear low cost principles to which he has remained true to this day. The business has grown to a €6.55 bn turnover concern employing 50,300 people. Schlecker have been awarded a Superbrand 2005 award from N-TV and Handelsblatt, presumably based on their uncompromising “no-frills” approach.

 

Schlecker’s principles all relate to a philosophy of “low cost at (almost) any cost”. Schlecker rent out the cheapest of locations for their stores, often snapping up unattractive locations that other retailers have turned their noses up at. The stores carry a range of only 4,000 articles and constantly kick out lines that don’t sell. Walking into a Schlecker store, you will probably be reminded of the Eastern bloc in the bad old days: everything is basic, from the stark blue/white logo to the chilly warehouse “atmosphere”. Schlecker are frequently pulled up on accusations of not treating employees particularly well and not making much effort towards a pleasant working environment but Herr Schlecker’s retort is usually that he is continually providing 1000s of new jobs in Germany and other parts of Europe while others are laying staff off.

 

Although Schlecker pioneered and developed its Home Shopping service ahead of many other retailers, the website remains a horror for the eyes. You can marvel at this for yourself on www.schlecker.de and see that that lack of aesthetic sensitivity in the stores is translated into the website. However, for the loyal customers, low prices are worth the somewhat unpalatable “shopping experience” and Schlecker is estimated to hold 41% of the Drogerie market in Germany.

 

Times have begun to change, however, and Herr Schlecker found, some 18 months ago that his low-cost business model was not always so resistant to swings of consumer fortune. For the first time ever, last year, Schlecker began to make some compromises in the face of increasing competition, particularly in the high street/shopping centre from competitors with higher margins and a more pleasant shopping experience. Among the strategic changes that were made, smaller stores under 200 m² were closed, the food ranges were phased-out (“Lidl do that better”- Anton Schlecker) and payment with plastic (EC or direct debit card) was introduced. Meanwhile, Schlecker continues its rapid expansion outside Germany, primarily to Scandinavia and Eastern Europe.

 

Whether these changes will be successful is yet to be seen but maybe we should take a look now at the main pretender to the throne who is giving Herr Schlecker these headaches.

 

“dm” is another drogerie chain that has been going for slightly longer than Schlecker and is about half Schlecker’s size in terms of turnover, outlets and employees. The first dm store opened in Karlsruhe in 1973 and the chain is currently in a phase of rapid expansion, both within Germany (where it took over REWE’s “Idea” drugstore chain in April last year) and throughout Italy, Austria and several Central/eastern European countries including Czech republic, Slovak republic, Slovenia, Hungary, Croatia and Serbia.

 

A more different retail concept to Schlecker would be hard to imagine. dm’s slogan “Hier bin ich Mensch. Hier kauf ich ein:” (I am human here. I do my shopping here.) is the key to dm’s approach. Walking into one of dm’s stores is a very different experience to walking into Schlecker. You may not be able to put your finger on exactly what it is, but the dm stores are intricately designed to make people feel well and even inspired, at all times of year. Careful attention is given to lighting, colours, the width of aisles and the heights of displays to make everything feel “just right”. It is not too far to say your soul may even feel uplifted, too.

 

For dm have some pretty lofty philosophy on their side. Rather than the “low cost at (almost) any cost” philosophy of Schlecker, the founders and board of dm are followers of Anthroposophy. Now, I have no intention of giving a huge discourse on Anthroposophy here – suffice to say that Anthroposophy is a philosophy that has had an effect on many areas of life in Germany over the last ninety years or so including architecture and education. If you are really interested, you can do a search on Rudolf Steiner, who was the founder of the whole thing (and I would be interested if anyone could send me a potted idiot’s guide to what it’s all about, because I can’t fathom it out!). The Anthroposophy movement does seem to have its critics - although not a religion, or a science, but rather a “spiritual science”- it does seem to have a sort of Kabbalah or Scientology feel to it!

 

Getting back to the more mundane subject of drugstores, you can see where the ideas of “levels of perception” or “asking questions” or even “artistic expression of perceptions” come into dm’s presentation. The store design is very well thought-out and a lot of thought is put into the design of dm’s products. The website www.dm-drogerie.de is a contrast to that of Schlecker, with information about the company’s numerous CSR activities and working environment well upfront as well as useful advice of the sort “where do dark rings under the eyes come from?” or “why does the skin get wrinkled after a bath?”.

 

So, the philosopher is challenging the discounter. We don’t know as yet which way the drugstore war will end up but it will certainly be interesting to see ultimately whether German priorities are on price or shopping experience for this retail category as this may have implications for other high street-and out-of-town-retail names.

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Who came up smelling of roses? No contest - it was the philosopher beating the discounter into bankrupcy in 2012. Schlecker is no more on the German retail landscape.

Although dm does have to keep on its perfectly manicured toes. Rossmann is pretty well neck-and-neck when it comes to the 2023 drugstore crown.