-Steve Jobs
Welcome to The Golden Sense! Things change. Styles, trends, business, and economics constantly change. Some of these changes are for the better and some are for the worse. Business in particular has changed rapidly over the last hundred years as communication, transportation, and technology have developed so rapidly that they have permanently altered the nature of modern day business practices. In the past big brands have dominated and the local guy got crushed by superior pricing and distribution logistics. This is slowly changing and will eventually no longer be the case. As with many things in life, people want the unique and the special. It's the individual inherent in every person that seeks this out. People desire the accessable and the affordable and now localized products are able to compete next to the brand names on a global scale. Local businesses can now start operating as global businesses and etch out niche markets the big guys can't touch.
The trend of small businesses competing on a world wide scale has already occurred in many different industries.
For the last ten years local craft beer breweries have been eating into the profits of the big global beer distributors such as InBev. InBev owns Budweiser, Michelob, Stella, etc. They are one of the largest brewing companies in the world and now the local craft beer companies are sticking it to them. InBev is rapidly losing market share to the craft brewers in the United States. People are seeking out local brands and a unique taste. These local companies aren't just selling beer; they are selling an experience that comes with drinking the beer. Local beers are now routinely preferred over the brand names. Furthermore, these local breweries have access to distribution channels that can deliver their suds around the world. Budweiser and Miller are taking a back seat as this trend is continually growing.
The beef jerky industry is changing as well. Ever heard of Biltong? Biltong is a variety of cured meat (jerky) that was
originated in South Africa. Various types of meat are used to produce it,
ranging from beef and game meats to fillets of ostrich from South African
farms. Whether it's your typical Jack Links jerky, Shalhoob jerky from Santa Barbara California or Biltong, consumers can now chew on specialized meat from anywhere in the world. You
see, the big brands are now competing with niche flavors. People can have beef jerky from any corner of the globe and it can easily be delivered to their own doorstep with a click of a button.
Online communities are not new, but local neighborhood communities are now connecting on the Internet. People living in a common neighborhood are now communicating online and using the Internet to optimize life in their own local neighborhood. Neighborhoods and communities are now gathering online to communicate about things such as social events, casual interests, safety concerns, odd jobs, etc. This is different from social networking because it is bringing real communities to the Internet and using online communication to bring together neighbors of a geographical area for a common purpose. The big players such as Facebook are dominating social networks but small online communities are finding a separate space to connect and fulfill their local community needs.
Big banks have dominated the banking industry for some time now, but small community banks are now redefining their image and identity. Just as the consumer of beer seeks a great experience, that is how it is for community banking customers. Product choice is practically identical from the outside, so community bankers differentiate products and services based on experience and high quality customer service. To customers, a checking account is a checking account and they are all the same regardless of bank. People love the feel of a community bank but they also want nationwide and global access to their money. Advances in technology are allowing community banks to offer this and compete with the big banks. Community banks are offering the ability to deposit checks by mobile phone. Electronic banking platforms combine applications for Apple and Android devices for online banking, bill pay, and mobile deposit. Local banks routinely reimburse ATM fees. This allows customers to withdraw cash at any ATM nationwide for free. Community banks are also more likely to meet the lending needs of local communities, so it is a "no brainer" for customers to choose their local bank over a mega bank. This technology trend is sparking a big change in the banking industry and it now allows the small banks to compete with the big boys.
People don't want a brand, they want an experience. The advances of technology, communication, and distribution channels have allowed small business a way to offer unique products and services to the entire world. People want to touch, feel, and connect with something unique. The local product and service is now marketable to a global audience and it has redefined the consumer's appetite. Big banks have dominated the banking industry for some time now, but small community banks are now redefining their image and identity. Just as the consumer of beer seeks a great experience, that is how it is for community banking customers. Product choice is practically identical from the outside, so community bankers differentiate products and services based on experience and high quality customer service. To customers, a checking account is a checking account and they are all the same regardless of bank. People love the feel of a community bank but they also want nationwide and global access to their money. Advances in technology are allowing community banks to offer this and compete with the big banks. Community banks are offering the ability to deposit checks by mobile phone. Electronic banking platforms combine applications for Apple and Android devices for online banking, bill pay, and mobile deposit. Local banks routinely reimburse ATM fees. This allows customers to withdraw cash at any ATM nationwide for free. Community banks are also more likely to meet the lending needs of local communities, so it is a "no brainer" for customers to choose their local bank over a mega bank. This technology trend is sparking a big change in the banking industry and it now allows the small banks to compete with the big boys.
The result is that business is changing and this has opened up a world of opportunities. The world faces many challenges in the near future but niche markets are exploding with upside potential.
Bill Gates once made a great point:
"We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don't let yourself be lulled into inaction."
Signing off for now,
T.Norman
