🔩 Is The UK Steel Industry Is On The Edge Of Collapse?

📰 Industry News

• Carpetright customers are owed almost £8m for outstanding orders, with the majority of the 21,000 shoppers impacted expected not to be refunded, according to the company directors’ statement of affairs. (Retail Gazette)

• The owner of the UK arm of the restaurant chain TGI Fridays has gone into administration, putting 4,500 jobs and 87 outlets at risk. Parent company Hostmore, which runs the UK franchise has appointed administrators amid heavy losses and mounting debts. (Sky News)

• Popular kitchen utensil firm Tupperware Brands filed for bankruptcy protection on Tuesday. The company succumbed to mounting losses due to poor demand for its once-popular colourful food storage containers. (Reuters)

• Traffic could soon be banned from part of London's most popular shopping area, Oxford Street, under new plans by Sadiq Kahn to boost the experience of shoppers, residents, workers and tourists. (Sky News)

• Guardian Media Group is considering a sale of The Observer to Tortoise Media after reporting a £36.5m deficit for the last financial year. (Press Gazette)

• Uk-based energy firm Ovo has been ordered to pay £2.4m after the regulator found it had mishandled customer complaints. Ofgem said that 1,395 Ovo customers were hit by problems. (BBC)

🥪 Pret A Manger: A Surprise UK Success Story

Pret A Manger, the beloved UK-based sandwich chain, has surpassed £1bn in global sales for the first time, fuelled by rapid overseas expansion and a resilient customer base.

Established in 1983 by Julian Metcalfe and Sinclair Beecham, Pret has become a household name in the UK, with hundreds of stores nationwide, especially in London. The brand is known for its focus on freshly prepared, natural food, and a “no sell-by-date” policy on sandwiches, which ensures that all unsold food is donated to charity at the end of each day.

Despite challenges throughout COVID-19 when commuter footfall dropped, and the recent cancellation of its popular subscription service, Pret continues to thrive while expanding internationally, with more than half of its 81 new stores in 2023 opening in countries like the US, Canada, and India.

Why Is Pret Doing So Well?:

• Sustainability: Pret focuses on being eco-friendly by using recyclable packaging for all its products. This is a key point for customers who care about the environment and are willing to pay extra to help protect the planet.

• International Expansion: The chain's global footprint is growing, with £1 in every £4 now being spent at Pret stores outside the UK, in markets like Greece and Spain.

• Resilience Despite Changes: Even after scrapping its Club Pret subscription, Pret saw a 60% surge in filter coffee sales by making popular items more affordable.

• £1bn Milestone: Pret's global sales surged to £1.1bn in 2023, marking a 22% increase and a key milestone for the brand.

The Bigger Picture:

Pret’s success story is built on its ability to adapt when market trends turn against them. Being adaptable in challenging conditions has seen the company strengthen and stand the test of time, with the company now winning over customers outside of the British Isles. With its success outside the UK having been particularly impressive, positioning Pret as a global leader in fast-casual dining.

🔩 The Decline Of The UK Steel Industry

The UK’s steel industry is facing its most severe crisis in decades. This month, Tata Steel will close its last blast furnace in Port Talbot, losing nearly 3,000 jobs. Similarly, British Steel’s Scunthorpe plant is expected to shed even more jobs. The shutdowns will leave the UK with no ability to produce original steel, which is vital for sectors like construction and manufacturing, threatening the economic future of both regions and raising urgent questions about the industry's survival.

How Big Was The British Steel Industry

At its peak in the 1970s, the UK steel industry was a global powerhouse, employing around 320,000 people and producing over 28 million tonnes of steel annually.

The industry was a key part of the UK economy, with steelworks located in regions such as South Wales, Yorkshire, and the Midlands, forming the backbone of British manufacturing and industrial growth.

By contrast, today, the industry employs fewer than 40,000 people, and production has drastically declined to around 7 million tonnes per year, reflecting significant deindustrialisation and competition from cheaper international producers like China.

What Does the Future Hold?

For communities in South Wales and Lincolnshire, this represents not just an economic blow but a cultural one, as steelmaking is deeply woven into the local identity. Despite the closures, there’s potential for the UK to resurrect its steel industry by transitioning to a greener model. Electric arc furnaces, which use recycled steel and produce fewer carbon emissions, could be the answer – but only if the new government provides the necessary support.

The loss of the UK’s steel capacity would be devastating for domestic industries, but if the transition to greener production methods can be achieved, the industry may yet play a key role in the UK’s clean energy future.

 💬 Genericisation: The Risk Of Your Brand Becoming A Household Name

When a brand name becomes so popular that it turns into a catch-all term for an entire product category, we call that genericisation. It’s happened to some of the most famous brands in the world. While this might seem like the ultimate sign of success, it carries significant risks for businesses in the long run. Let’s take a look…

1. Common Victims of Genericisation:

   • Sellotape: Often used to refer to any adhesive tape, but Sellotape is a specific brand. The generic term would be “adhesive tape.”

   • Tupperware: Now synonymous with any food storage container, but Tupperware is a trademarked brand. The correct term should be "plastic container."

   • Hoover: In the UK, people often say they’re going to “hoover” the house, but this refers specifically to the Hoover brand. The generic term is “vacuum cleaner.”

   • Blu-Tack: The sticky stuff we use to hang posters is commonly referred to as Blu-Tack, but this is a trademarked name. The correct term is “adhesive putty.”

   • Velcro: Everyone says “Velcro,” but the brand itself has campaigned for people to say “hook-and-loop fastener” instead!

   • Bubble Wrap: The term for the protective packaging material, but Bubble Wrap is actually a trademarked brand. The correct term is ”air-cushioned packaging”

2. Legal Risks: If a brand name becomes genericised, it can lose its trademark protection. This means other companies can start using the name freely, and the original brand loses control. For example, if “Sellotape” were to lose its trademark status, any company could sell “Sellotape” products - even if they had nothing to do with the original brand.

3. Brand Dilution: Genericisation weakens the uniqueness of a brand. Instead of being associated with a specific company, the brand becomes just another word in the public’s vocabulary. This loss of distinctiveness can damage a company’s reputation and market position.

So, is Genericisation Good or Bad?

It’s tempting to see genericisation as a mark of true success. After all, how great must your brand be if people use it as a verb? But the reality is more complicated.

While becoming a household name demonstrates dominance, it comes with the risk of losing your brand's identity and legal protection. Companies like Xerox and Kleenex have had to run marketing campaigns reminding people that these terms are brand names, not generic ones. If your business is at risk of genericisation, it’s important to act fast, reminding the public (and your competitors) that your brand name is exclusive to your product.

In the long run, while genericisation might bring temporary recognition, It’s a dangerous path for brands aiming to maintain control of their brand and maintain uniqueness in the marketplace. So, if you’re building a brand, remember - it’s better to be known for your product, not just as a word in the dictionary.

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