A united voice, or face slaughter'
by M&C editor Mark Stretton
Some of the issues that have wrong-footed companies are extraordinary.
History is littered with corporate fumbles. The food industry has been on the receiving end of a sucker punch because consumers have realised a diet high in fat, sugar and salt is not good for children.
The banking industry has been blindsided by the notion that customers want to speak to a human being at a local branch, and not to a stranger in a call centre elsewhere in the world. Another example is that financial services salespeople, on commission, have not generally had the customer's best interests at heart when selling products that mature in 25 years' time (hence the mess that is pensions and endowments).
The list is endless but you get the gist. The point is that many "surprises" are well signposted, if not obvious. Unfortunately, this industry has not managed to avoid an equal share of such mishaps, as recently seen with the full-blown furore surrounding the sale of alcohol and the advent of "24-hour drinking".
It could be argued that the current concerns of the public that town centres are out of control, should not perhaps come as a total surprise. It amounts to a "perfect storm" created as much from perception as reality. The starting point for this complex issue is the revolution that has happened in UK town centres, combined with the fact that pubs and bars sell a licensed drug. The wanton wooing of operators and the granting of licences with wild abandon by councils in the 1990s led to an over-population of bars. These bars are next door to each other because police decreed they should be "clustered".
Due to the high competition, alcohol was discounted to unhealthy levels. The worst excesses are over but it will take time to forget the more seedy promotions, such as all-inclusive offers. There are many other factors. Police seem to be reluctant to use the authority they have, for example, to shut problem pubs. Twenty years ago 9% of people went to university, now it's more than 40% and students like to drink in town centres. There is undoubtedly a question regarding the general behaviour and attitudes of young people, and other social issues.
There has also, it seems, been a vacuum on the issue of licensing reform. The myth of 24-hour drinking was at such odds with reality that the industry must ask if it did enough to communicate the facts.
The national press has done an appalling job but how much of this is because of the industry's own failure? It's a tough question but one companies and trade bodies must consider. Aside from a tardy PR offensive, the industry must look at some long-term initiatives to improve its image.
As my colleague Peter Martin has suggested, town-centre operators should consider funding proper research to show the true picture. Research by TNS Consumer suggests that the high street is actually declining in popularity the industry should find out more. It should also consider forming some kind of social responsibility forum, like the media industry did in 2002 through KPMG. This was designed to formulate strategies, reduce the risk of unethical behaviour and pool best practice. This is ultimately an opportunity for the sector.
It is easy to blame the Daily Mail. But it, and the rest of the popular press, are not going anywhere, and sadly people believe what they read. The challenge for the industry is to improve the way it communicates and to talk with one voice. As Chris Hutt, chairman of Laurel Pub Company, said recently: "If we don't get our point across we are going to be divided, sliced and slaughtered."
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