The Scale Of Change Has Just Got Bigger
The COVID-19 crisis has accelerated a series of shifts in how its citizens work and play and Wellington’s emerging economic future. As Wellington looks to continue to respond to the economic, health and environmental realities of COVID-19, the future has never been more uncertain or the decisions required to shape it, more urgent.
A Vision Of The Future Could Be
A post COVID-19 City that positions Wellington as a leading GDP contributor to the New Zealand economy the fabric for a prosperous capital city. This vision will reset the narrative, change mindsets, inspire action.
2020 has seen the change in ability and policy to work from home due to COVID-19 and after lockdown many have continued to do so.
Transaction to Experience
Cities have traditionally grown around their location advantages, in Wellington’s case the public service, port, railways and being the capital have attracted people to live and work here.
Things are changing globally we are seeing the growth of the experience-based city. This transforms the idea of location into a place – in which places are locations with significance where people want to be, rather than must be.
COVID-19 has accelerated this trend affecting retail, office spaces and hospitality. These industries are all responding – but the question remains – how do we create a city where people want to be rather than must be? How do we make it equitable for people who have to be here?
SHIFT: Transaction to Experience
Summary
Cities have traditionally grown around their locational advantages, in Wellington’s case our port, railways and capital city status have attracted people to live and work here.
Globally we are seeing the growth of the experience-based city. This transforms the idea of location into place. Places are locations with significance where people want to be, rather than have to be. COVID-19 has accelerated this trend affecting retail, office spaces and hospitality.
These industries are all responding – but the question remains: how do we create a city where people want to be rather than have to be? And how do we make it an equitable and inclusive place for people who have to be here?
Drivers:
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Digital Transformation – Digital communications are helping reinforce lasting relationships, provide access and associate experience with products and services. Tech companies are also setting the service and personalisation expectations which drive expectations in other sectors.
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Ethics and Public Awareness – people are becoming more conscious of the source, impact and story of the products they buy. This is also driving wider trends away from the purchase of objects and towards experiences.
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Demographic Change – populations are becoming more diverse and older, creating more distinct target markets for products and services (eg Facebook vs Instagram).
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Future of Work – the growth of flexible work, gig economies and more diverse careers is driving a revaluing of place and time as more people can work anywhere, anytime.
COVID19
Covid19 lockdowns and precautions have accelerated digital adoption by both shoppers and companies.
Companies have adapted to the pandemic by investing in their digital presence and logistics chains to supply a contactless, at home experience. This investment can be seen in the growth of “dark stores” and logistics chains geared to at home shopping.
Conversely stores that offer personalised and community experiences have generally done well as people have eschewed malls and central cities and shopped locally.
This same trend towards experience has accelerated a pivot in the office accommodation market- driving a shift in office environments as individual workspace is taken home, and emphasis moves to shared and collaborative spaces in city offices.
COVID19 has accelerated the digital disruption of our cities and the shift to experience rather than the transaction.
Sightings:
Global
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Retailers concentrating on fewer physical locations but investing more heavily in creating experiences which anchor their digital offerings. Examples include Vans creating skatepark stores, Tesla’s Gallery network and digital sales experience or Audi’s Virtual Showrooms.
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Brands working with independent retailers to create bespoke neighbourhoods scale experiences that read as “local” and authentic.
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Workspaces becoming more purpose based with a variety of work environments to support different tasks and incorporating uses like cafes and restaurants to help draw authenticity from surrounding neighbourhoods and attract staff.
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Cities using placemaking techniques to create unique environments that distinguish from the more standard environments offered by malls and support smaller and emerging businesses.
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Cities investing in “15 minute” city infrastructure such as cycle-lanes, complete streets and neighbourhood scale initiatives to drive a sense of place and identity
National
The shift to experience is changing New Zealand by:
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The creation of parallel “Dark” logistics chains to scale traditional retail into digital experiences.
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The integration of spaces geared toward social media into physical retail environments to help customers create content to share through their networks, eg Westfield Mall displays and “Instagram urbanism.”
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The growth of subscription models heavily geared towards values- i.e. environmental sustainability, social equity, such as buy one donate one models or localist models which give direct connection to artisans and growers.
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The formation of club’s and activities around a retail offering, eg running, wine or coffee interest groups
Wellington
The shift to experience is changing Wellington by:
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The growth of artisan businesses offering a story that takes a customer from raw material to finished product. Examples include Wellington Chocolate Factory, Leeds St Bakery or Whistling Sisters.
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The use of ideas like Life Events as a driver of a more user experience way of developing and presenting government services – e.g. Internal Affairs Best Start Programme.
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Co-working Spaces such as the Generator being incorporated into new construction and geared to larger organisations than previous spaces.
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A decrease in people in Central Wellington during Monday – Thursday office hours, but an increase on Friday afternoons, Saturdays and Sundays – drawn by social and retail experiences.
