JKR

‘Besides, nothin in the world’s more expensive than free’ (The Reverend in The Wire).

The latest “Big Idea” book to catch hype is Wired editor Chris Anderson’s “Free: the future of a radical price”. Like most folk with a ready opinion on the topic I haven’t actually read it yet, but the synopsis is interesting: Anderson’s observation is that “information products” (e.g. most stuff available online from music to news) are increasingly driving a trend for goods being given away (or stolen) and this in turn is creating a new paradigm for economics.

Of course little in life is truly free. Indeed Anderson’s book, somewhat in the face of his theory, is analogue information retailing at £9.49 on Amazon. Nevertheless in the non virtual world of FMCG constant discounting of household brands is creating an equal sense of how we perceive products. It’s always harder to value something that is given away (the image above is of discarded free newspapers in Paris).

One observation I would make is that we have worked on several “premium” brands that were in reality permanently sold on deal. Their image held strong while extra effort was invested in their image (smarter physicals etc) but when this investment ended their stock quickly fell. If a brand is essentially an idea attached to a product, the idea needs to be cherished and constantly polished to ensure that the intellectual property continues to be valued. Failing to do this drives products into being commodities, and commodities are sold on price not prestige. To this point both Harrods and Harvey Nichols are both very clever at making a sale look like a prestigious event (see below) rather than a bargain bazaar.

Meanwhile Anderson’s book has been criticised for some factual errors resulting from research in the less trustworthy waters of free information online. Which speaks volumes.