NFC will come of age in 2012

Four years after the first contactless payment device was trialled in the UK, it looks like Near Field Communication (NFC) could finally come of age in the UK in 2012. The technology allows you to pay through tapping your ‘embedded chip’ that’s usually in a card onto a payment device.

The maximum payment is limited to £15 to guard against fraud making it perfect for cafes, delis and corner shops across the UK. It also provides a huge opportunity for brands with media such as bus stop 6 sheet posters, shop signage, vending machines and experiential teams able to transfer information to the chip – and given almost all smartphones manufactured today contain the chip, it provides a frictionless way of delivering content or rewards in seconds without a clumsy sign up mechanism which often proves to be the biggest barrier to deeper consumer engagement.

As with all new technologies, the move towards mainstream has taken time and for advertisers, the trials that have run this year provide no real proof of enhanced ROI or engagement in return for the increased investment. That’s changing and the critical factor isn’t just NFC enabled phones, it’s receptive retailers.  

Participating retailers numbered 69,000 by July 2011, up from 26,000 in January – that’s helped drive transactions, which almost tripled in the first half of this year from 200,000 transactions in January to 567,000 by July.

And it’s not just any retailers; in early 2012 the Co-operative group, Spar and Costcutter are set to join Subway, McDonalds, Eat and Pret who are already using the technology – buoyed on by the increased trip spend that retailers are experiencing (6% increase in EAT) as consumers are no longer constrained by the amount of cash in their pockets and the inconvenience of chip & pin.

With Smartphone market share set to pass 50% in the UK next year, the mobile wallet is likely to make significant inroads into people’s payment habits with yes-wallet.com having launched last month and Google planning a trial of its Google Wallet service early next year.

But there’s no reason why it should stop with phones, trials are already underway with embedded chips in wristbands, watches and even sticky back plastic – i’ll give it less than a year before some bright spark has one embedded under their skin, after all – we’ve already seen Ballantines create an interactive tattoo this year.  

Derelict places

Derelict places in London fascinate me – you can sort of understand it in rural areas where people may not be able to live and earn a living, or deprived cities where no one has the money to spend, or in france where 16 offspring all have part ownership, but in London? In central London? 

Every day I drive past this building on the number 38 bus. A huge, majestic shell of a building opposite Green Park, undergrowth hiding a blue disc on the wall as an ex-residence of former Prime Minister Lord Palmerston.

Here’s how it looked this morning…

 

Here’s how it looked in 1865…

How can a building like this, on a site like this, in a city like this, sit idle? After a quick bit of research it turns out that 94 Piccadilly has been empty since 1996 and has been on the market for the last three years following its property developing owner going bust. As a result, there are no plans to renovate, instead it sits on the books of Jones Lang LaSalle with a price tag of £260m slapped on it by the receivers.

Given the current climate and given the fact it cannot be converted into something made of glass and steel that’s half a mile high, the omens don’t look good for 2012…

New favourite photographer

Beautiful geometric illusions created by emerging Canadian photographer Jessica Eaton (and without a retoucher in sight). You can see more of Jessica Eaton's work here

The discerning young food shopper

They’re supposed to have less money and less time than their older ‘empty nester’ counterparts, but recent findings from an IGD tracker study suggest that under 35s that have grown up with the Jamie Oliver inspired food revolution are much more likely to invest time and money in food than their older counterparts.

The study showed that:

30% of under 35s are prepared to spend more on quality goods compared to 16% of older 35s

51% of under 35s are regularly cooking meals from scratch compared with 30% of the older generation

26% of younger buyers expect to buy organic next year compared to 13% of their older counterparts

Made in Britain, sold in Soho

I walked past a new store opening in Soho today by the name of Oliver Spencer. Turns out he’s been around since 2002 but this move to Soho reflects a growing demand for British designed and British made street wear with an emphasis on quality fabrics and fine craftsmanship.

It’s also nice to see the revitalised Carnaby Street rubbing off on the neighbouring streets with Oliver Spencer joining like minded British independents Albam on Beak St and Pokit On Wardour St.

A great meal needs a good rhythm

Pop up restaurants seem to be ten a penny at the moment, but that’s not surprising when they offer a win win for all parties involved. The chefs can experiment and get their name on the map without needing to find the finance for a permanent venture. The venue can enjoy a boost of credibility through the exclusive residency. While the punters themselves stand to gain most of all, high quality cooking in a unique environment for what is often a fraction of the price you’d pay in the west end’s top restaurants.

I only had one reservation before eating at the Young Turks @ The Ten Bells last week - and that was the service. It's hard enough to get decent service in a permanent restaurant, let alone one that's only going to exist for 3 months. I shouldn't have worried, the food and drink was great but the timing was perfect. A good rhythm to a meal is often underrated but this was spot on - sunday lunch esque in its leisurely approach. That hardly ever happens in restaurants these days unless your forking out the best part of 100 quid a head. You wouldn’t think it’s that difficult but more often than not the restaurant experience is let down by service at some stage in the night. Take the Riding House Cafe in Fitzrovia – why spend 500 odd quid on a chair for the customer and then fail to train or pay your staff well? For a sense of what a good rhythm to a meal feels like, you can book a table with the Young Turks until the end of January when the whole thing disappears. Again.

Leisure time trends across the globe

We've just released the latest edition of Arnold ON, a thought-leadership piece which aims to explore cultural, social and consumer trends directly impacting businesses around the globe. This isssue explores 'leisure' and our growing need to break free, have fun and enjoy life.


The findings are based on an in-depth, global study across the U.K., U.S., Brazil and China which explored how consumers are finding a break from life’s pressures and the role that brands play in that time of leisure.

You can have a read here.