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February 2011 | As rapid urbanization is one of the biggest macro trends of our time, you can't go wrong
innovating for existing and newly minted 'CITYSUMERS' around the world. Enjoy!

We flagged URBANOMICS as one of our 11 Crucial Consumer Trends for 2011, but given urbanization is
one of the absolute 'mega macro' trends for the coming decade, here's a dedicated Trend Briefing focus-
ing on just one of the implications of rampant urbanization: the rise of the CITYSUMER. A definition:
CITYSUMERS | The hundreds of millions (and growing!) of experienced and sophisticated urbanites*,
from San Francisco to Shanghai to São Paulo, who are ever more demanding, more open-minded, but
also more proud, more connected, more spontaneous and more try-out-prone, eagerly snapping up a
whole host of new urban goods, services, experiences, campaigns and conversations.
* To be absolutely clear, in this briefing we focus on urban consumers who have some level of disposable
income. We'll save a full briefing to examine BOTTOM OF THE URBAN PYRAMID consumption in
emerging markets, which brings its own challenges (and often-overlooked opportunities) for businesses.
Equally we're certainly not just referring here to the somewhat mythical (and certainly over-hyped) tran-
snational elite – just how many “global nomads” are there? ;-)
Here are just three drivers behind the CITYSUMERS trend:
1. The huge increase in the number of urban dwellers all around the world (URBAN BOOM).
2. The ever-increasing wealth and power of cities and those who live in them (URBAN MIGHT).
3. The spread of urban culture and values (URBANE).
Serving these CITYSUMERS obviously requires brands to tailor products and campaigns to savvy urban
audiences, for anything from practical reasons (offering appropriate shapes, sizes and features of urban
goods and services) to showing the brand 'gets' it (addressing busy and diverse lifestyles) to contributing
to the quest for social and environmental sustainability.
You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
• If it wasn't for China (43%), Africa (33%) and India Just 100 cities account for 30% of the world's economy, and
(29%), the world would already be significantly more almost all its innovation.  Many of these engines of globalization,
urbanized than the 50.5% it is today. (Source: CIA The their enduring vibrancy coming from money, knowledge, and sta-
World Factbook, 2010.) And China, Africa and India are bility, are world capitals that have evolved and adapted through
all set for immense urbanization in the next few decades decades if not centuries of dominance  (Source: Foreign Policy,
to come. August 2010). 
• Close to 180,000 people move into cities daily, adding Rich in networks and opportunities, these vast hyper-productive,
roughly 60 million new urban dwellers each year. hyper-consumptive centers act as magnets, sucking in talent and
(Source: Intuit, October 2010.) spewing out innovation: Hong Kong receives more tourists annu-
• By 2050, the global urban population is expected to be ally than all of India. Tokyo and New York have an estimated GDP
6.3 billion, or 70% of the population at that time. similar to those of Canada or Spain, while London's GDP is
(Source: UN, 2009.) higher than that of Sweden or Switzerland. (Source: UN Habitat,
2010). Paris, Lisbon, Brussels, Budapest and Seoul all account
• By 2030, China will have an urban population of 1 billion, for more than 25% of their respective national economies.
and India 590 million. Currently, Europe's urban popula- (Source: UN Habitat, 2010).
tion is 533 million. (Source: McKinsey forecast & UN
data, 2009-10.) In the coming decades, they will be joined by many new and/or
bigger cities, and these cities, too will be host to an increasing
• By 2030, China will have 221 cities with more than 1 concentration of global and national wealth, talent and creativity:
million people, and India will have 68. In 2010, Europe
has 35. During this period, 400 million Chinese and 215 • Indian cities are forecast to generate 70% of new jobs
million Indian will move to urban areas, more than the created to 2030, produce more than 70% of Indian GDP,
population of the US and Brazil combined. (Source: For- and drive a near fourfold increase in per capita incomes
eign Policy, August 2010.) across the nation. By 2030, India will have 91 million
urban, middle class households, up from 22 million in
• One more nugget: In January 2011, Chinese city plan- 2010. (Source: McKinsey Global Institute, April 2010.)
ners proposed merging the nine cities around the Pearl
River Delta into a single metropolitan area, containing • China's Academy of Sciences estimated that for every
some 42 million people: more than Argentina, and cover- 1% increase in urbanization, China can expect a 1.6%
ing an area 26 times bigger than Greater London. increase in the contribution made by domestic demand
(Source: Reuters, January 2011.) to China's GDP. (Source: Deloitte, June 2010.)

The big difference between tomorrow's urban world and today's? • Shanghai's economy represents over 13% of China's
There will be more cities, some of which will be both newer total GDP, despite having less than 2% of the popula-
and bigger than ever. So while 'traditional' global powerhouses tion. (Source: UN Habitat, 2010.)
such as New York, London and Paris are already sharing the • The number of African households with discretionary
stage with Beijing, Mumbai and Istanbul, increasingly cities such income is projected to rise by 50 percent over the next
as Belem, Chongqing and Guadalajara are ready to make their 10 years, reaching 128 million. By 2030, the continents'
mark, too. More on this in 'URBAN MIGHT': top 18 cities could have a combined spending power of
USD 1.3 trillion. (Source: McKinsey, June 2010.)

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• Delhi, Shanghai, São Paulo and Moscow are each ex-
pected to reach a GDP in excess of USD 500 billion by
2025—more than the GDP of entire nations such as In-
donesia or Belgium today. (Source: McKinsey, December
2010.)
The result? A global emerging middle class numbering some 2
billion, who currently spend USD 6.9 trillion a year. Over the next
decade, this is forecast to increase to USD 20 trillion, double
current US consumption. (Source: McKinsey, July 2010.)

Back to actual CITYSUMERS. Consumption-wise, the fast pace


and ever changing nature of urban life guarantees CITYSUMERS
an endless number of new and fleeting social connections, expe-
riences and (commercial) temptations. All of which means that
CITYSUMERS are addicted to the here-and-now,  experiences, 
choice and freedom, flexibility and rawness, unrestricted oppor-
tunity, and yes, the hunt for the Next Big Thing if not the Next Big
Story. In fact, urban culture is the culture these days*.
Here are some quick indicators of urbanites' spending power and
behavior:
• The average Manhattanite household spends 59% of
their USD 13,079 food budget on dining out, compared
to the average American household that spends only
42% of their USD 6,514 food budget on dining out.
(Source: Bundle, May 2010.)
• Even four years ago, Harris identified 'Urban Hustlers'
(who comprise 21% of US consumers aged 12-34),
spend close to USD 9 billion (10% of their annual spend-
ing), on recreational activities. Urban Hustlers are spend-
ing, on average, over USD 100 more than the non-urban
population monthly, with their overall discretionary
spending reaches USD 383 per month. (Source: Harris
Interactive, June 2007.)
• The lifestyle of urban Chinese consumers has changed
from a “survive” mentality to an “enjoy life” one, with
54% now pursuing a more fun lifestyle. (Source: GfK
Roper, 2010.)
• Only 17% of Chinese urban dwellers say they are 'reluc-
tant to spend money'. (Source: Economist Intelligence
Unit, August 2010.)
* Not just because of mass urbanization, but also because wide-
spread online access enables remote rural audiences to partici-
pate in urban culture.
MATURIALISM obviously comes into play here, too: Constantly
exposed to a wide variety of alternative lifestyles and experi-
ences, CITYSUMERS tend to be more open-minded. Just one
You are reading a PDF version of “CITYSUMERS” (www.trendwatching.com/trends/citysumers/)
telling nugget: In August 2010, a Voice of India poll showed that
almost a third of Indians in Bangalore and Mumbai support same-
sex partnerships, a figure that would have been unheard of only a
few years ago**.
Enough stats and theory: here are some examples of brands de-
All of this means that a large URBANE audience is up for brands lighting CITYSUMERS around the world in innovative ways:
that challenge, thrill, titillate, or even shock (just as long as it's
done in the best possible taste ;-). At the very least, brands need
to show some personality, loosen up and embrace urban culture,
in all its gritty glory. Risky? Yes. But not as risky as being bland.
** No, we're not suggesting that every CITYSUMER is enthusiasti-
cally and overwhelmingly liberal, but as we saw in MATURIALISM, In thriving mega-cities, whose economic and cultural power al-
the clear (if gradual) global social trends are towards more tolerant ready often surpass that of entire nations, CITYSUMERS' identi-
attitudes towards abortion, euthanasia, casual sex, homosexuality, ties will often be closely tied to a city's culture, its brand, its heri-
drug use, women's rights etc. More diverse living arrangements tage, its 'being'. This means that for brands, delivering city-
and the removal of many of the traditional social structures in cit- specific products, services and communications that truly cap-
ies is a big part of this. ture a city's character, will be a great, human and fun way to pay
  respect to CITYSUMERS (especially if those brands are consid-
ered big, impersonal and 'corporate').

• Fragrances are a popular way to capture a city's es-


sence. High-end US fashion brand DKNY released a
fragrance "Love from New York for Women", while the
city of Beverly Hills created their own line of three
scents that are meant to "evoke what life is like for the
Beverly Hills woman". And then there's New York's Bond
No.9 launch of High Line, a fragrance inspired by the
New York neighborhood experiment. Dubbed as "The
World's First Railroad Perfume with the scents of wild-
flowers, green grasses ... and urban renewal."

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• Minneapolis design firm Workerman created city in a The upside? That scarcity will be reflected in CITYSUMERS' en-
jar which contains a jar full of Minneapolis icons on pins; gagement, excitement and ultimately their willingness to pay
each jar is filled with 600 pins with 20 different hot spots premium prices ;)
from the city. Minneapolis was the first city to be 'bot-
tled' and there are more to come.

• Check out Dior's very expensive Shanghai Blue Phone,


• 718 Made in Brooklyn is an urban furniture design only available in Shanghai stores, for a great example of
company based in New York. In May 2010, "The Subway how LIMITED LOCATION doesn't mean limited prices.
Series" was unveiled at the BKLYN Design Show in • Fashion brand Bape sells some of its limited edition
Brooklyn. The work consists of decommissioned subway lines only in stores in the Kagoshima, Harajuku, Nagoya
signs that had been recycled and turned into lights, for and Matsuyama regions of Tokyo.
CITYSUMERS to place within their home.
• The Spanish candle brand Cerabella has launched a
range of candles inspired by the different districts of
Barcelona, from La Rambla to El Raval.

• In August 2010, Starbucks announced the launch of a


new range of ultra-premium, single-origin coffees that
will be only available in limited quantities in metropolitan
markets including: New York City, San Francisco, Los
Angeles, Washington D.C. and Miami.
Or how about taking it right down to the neighborhood level?
With mega-cities becoming ever bigger, intra-URBAN PRIDE of-
fers the ultimate in extreme urban expression:
• The Absolut Cities Series first launched in New Orleans,
when the brand developed a special mango and black
pepper blend inspired by the city. The taste of Boston
saw the brand launch a black tea and elderflower vodka
that has a backdrop reminiscent of Fenway Park's Green
Monster, while 2010's Absolut Brooklyn was a red apple
and ginger flavored vodka with a Spike Lee-designed
brownstone themed bottle.
• The final edition of Adidas' City Collection was released
in December 2010, paying homage to the city of Bir-
mingham and its famous Cadbury chocolate factory.
Related to limited (city) editions: With online access making eve-
rything available to consumers from Atlanta to Adelaide, impose
an oft-forgotten scarcity through LIMITED LOCATION products.

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• In December 2010 in San Francisco, Yahoo! installed
digital screens into 20 bus shelters across the city on
which commuters can play video games against each
other. Passengers identify which of the 20 specified As we saw in our MASS MINGLING briefing, despite ever-
neighborhoods they would like to represent when play- increasing amounts of time spent online, audiences aren't retreat-
ing, and the one that wins the two month long contest ing into virtual worlds. Au contraire, CITYSUMERS will forever
will be rewarded with a music block party featuring the enjoy connecting with other, real-life human beings, and embrace
band OK Go. the choice, the excitement, the frenetic pace, the spontaneity, the
chaotic vibrancy offered by urban life. In fact, 'online' (especially
with smart phones being the new laptops) increasingly drives and
enables offline encounters:

• In October 2010, Adidas launched a game challenging


footballers to capture cities. Connecting via Facebook,
players pick their city (which is divided into hundreds of
areas) and then try to claim each segment through one-
on-one battles.
• Geomium is an iPhone app launched in September
2010 in London that informs the user of where their
friends are, what events are on in their area, as well as
helping them discover local bars, restaurants and places
of interest.

• Foursquare competitor Gowalla decided to curate their


content for select cities via City Pages. These pages
provide a display of popular places, what's "hot now,"
highlights from a variety of venue categories (e.g. best
burgers, best coffee), and even coordinated trips
throughout these urban areas.

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• German company Locamap GmbH provides gay men
with a guide to cities across Germany, Austria, USA and
the UK.

• US based Ratio Finder, launched in mid 2010, uses


Foursquare's API to show a heatmap with blue and pink
bubbles, the size and color intensity of which displays
the sex ratio of the check-ins at various restaurants, bars
and entertainment venues.

• In May 2010, Yahoo bought Indonesian social network-


ing service Koprol that allows users to connect based
on location. Mobile users can post a 200 character
status message and use the site as a positioning serv-
ice, without the need for a GPS receiver. Once logged in,
users can see other members who are in the same loca-
tion.

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• As part of London's Design Festival in September 2010,
German car manufacturer Audi unveiled eight robotic
arms from their factory and put them on show in Trafal-
Surrounded by the urban panoply, many time-starved, choice- gar Square. Users who visited Outrace.org could send a
rich, smartphone clutching CITYSUMERS look to brands to bring message to the robots, which was then traced in the air
them ever more varied and instantaneous experiences, especially with LEDs.
if those experiences are fast-paced, transient interesting, physi-
cal, interactive etc. Some recent examples:

• Adidas has added Hamburg to their Urban Art Guide,


following the success of their iPhone travel app that
guides users around Berlin's best graffiti spots.

• In November 2010, US luxury label Ralph Lauren show-


cased a 'four dimensional' display on the facade of its
stores in New York and London to celebrate the tenth
anniversary of RalphLauren.com. Montages of Ralph
Lauren imagery were projected onto the buildings and
the audience could 'feel' the images floating into the
space towards them. The images were combined with
music and fragrances for an extra special experience. • Snickers, the chocolate bar brand, host festivals of
youth street culture in various cities across Russia and
Mexico. 'Snickers Urbania' features nearly all major ar-
eas of street culture: extreme sports, graffiti, breakdanc-
ing, beatbox, freestyle, and encourages young people to
express themselves and their talent.

• In July 2010, Volvo London's Starlite Urban Drive-In


featured a full-sized, outdoor screen along with 25 pre-
parked Volvo cars, ready for patrons' viewing, reminisc-
ing and snacking pleasure.

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So, with URBANE audiences embracing products, services and
experiences that are more daring, more mature, or just more rele-
vant to urban culture, here are a couple of examples that PUSH
THE URBAN ENVELOPE that bit further:

• Axel Hotels, the Spanish based 'hetero-friendly' bou-


tique hotel chain, has partnered with New York-based
Parkview Developers to launch a resort in New York tar-
geted at the gay community. The resort, called Out NYC
Urban Resort, will have an Axel Hotel, a spa, several
restaurants and bars, stores and a dance club that
opens seven nights a week. Currently, Axel has hotels in
Barcelona, Berlin and Buenos Aires.

• In July 2010, Calvin Klein posted a large QR code across


two billboard locations in New York City. Passersby who
used their mobile smart phones to capture the QR code
were then shown a 40-second ad featuring model Lara
Stone.
• Also in July 2010, Mini Cooper launched an interactive
billboard campaign in the red light district of Hamburg,
featuring the back of a Mini with an automated S&M
whip hanging over the back that could be triggered to
'spank' the vehicle.
• In January 2011, the CW network released a series of
teaser billboards for their Vampire Diaries show. The
billboards originally said "Catch VD" with no other ex-
planation. Later, the billboards were updated with Vam-
pire Diaries content. When asked for comment, CW’s
spokesperson released this statement: “VD simply
stands for Vampire Diaries, and anyone who thinks oth-
erwise should probably get themselves checked out" ;-)

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Cities are increasingly seen as a solution to the quest for envi-
ronmental sustainability, with high density living promoting a more
efficient distribution of resources (although not everyone agrees).
Indeed, urban environments offer forward-thinking brands a
whole host of opportunities to delight eco-conscious CITYSUM-
ERS:

• In May 2010, German car manufacturer Daimler AG


launched a temporary exhibition called smart urban
stage to promote its smart fortwo electric drive series.
'smart urban stage' was a global exhibition and included
the cities of Berlin, Rome, Zurich, Paris, Madrid and
London.

• In September 2010, US based Urban Green Energy


launched a wind turbine called eddy GT. The product
boasts a special vertical axis design that enables power
to be generated without making much noise and regard-
less of wind direction. The turbine was specifically de-
signed for city rooftop use.

• In December 2010, Japanese car manufacturer Mitsubi-


shi partnered with appliance chain Yamada Denki to sell
its i-MiEV electric vehicle from 17 stores within the To-
kyo area. Mitsubishi has sold 3,000 i-MiEVs in Japan
since sales began in April 2010, but is hoping to boost
these figures by taking the vehicle in-store.

• Meanwhile, the Greenerator is a compact solar and


wind energy device that is designed to be installed on an
apartment balcony.
• bring.BUDDY is a program, due to be tested out by US
courier company DHL early in 2011, that recruits city
dwellers to deliver packages along the urban routes
they'd be taking anyway.

• BMW has announced it will be bringing its first electric


series to market in 2013. The Megacity Vehicle (MCV)
will be released under a sub-brand and positioned as a
zero emission car designed for city living. The car will be

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made in-house with materials that are ultra light yet high
in strength.
• In June 2010, a prototype of an environmentally-
friendly black cab was unveiled in London. It runs on a If 'mega-city' spells throngs, noise, cramped quarters, concrete
hydrogen fuel cell system, converting hydrogen into and foul air, it also spells ESCAPE. Brands focusing on enabling
electricity with the only emission being water vapor. The CITYSUMERS to temporarily leave the city and enjoy some
plan is to have 150 of these cabs running on the road in peace and quiet with nature and clean air thrown in, will come
time for the Olympic Games in 2012. up with service innovations forever. Just one example:
• In April 2010, Honda announced its intentions to bring
its first EV-neo electric scooter to the Japanese market
in 2010. The lithium ion battery-powered scooter is de-
signed for short delivery trips around Japan's busy cities
including pizza or newspaper deliveries.

• Meine Ernte, a German agricultural start-up, is offering


couples and families the opportunity to rent plots of land
for farming vegetables near six of the largest cities in the
country, including Frankfurt and Bonn. Tools and advice
from an expert farmer are included ;)

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For those CITYSUMERS unable to escape, how about bringing Urban living, with its premium on space, means that for many
peace and quiet, greenery, and other rural qualities to the city? CITYSUMERS, owning bulky, irregularly used items is inconven-
Here's one fun example: ient, if not unnecessary. Easier access to public services or even
private objects is creating a culture where ownership is increas-
ingly a choice to be considered. Furthermore, an OWNER-LESS
model also allows CITYSUMERS not having to sink large parts of
their budgets into a small number of high-price tickets, freeing up
money to be spent on a multitude of experiences:

• In October 2010, US based property developer The Al-


banese Organization announced that it has launched a
collaboration with Holton Farms to deliver fresh, local
produce to the residents of its properties in New York
every week. With the huge number of car and bike sharing schemes around
the world, successful new entrants into this crowded space are
likely to be supported by a big brand or local authorities, innova-
tive, super-eco-friendly or indeed many (or even all) of these at
once ;)
• German auto manufacturer Daimler's Smart car2go car-
sharing service.
• France's OKIGO, a collaboration between VINCI Park
and Avis.
• Peugeot's Mu 'mobility' service that rents cars, scoot-
ers, vans or even bicycles.
• New York's Department of Transportation's partnership
with Zipcar to share hybrid cars between employees
and the public.
• SoBi, the first public bike share system where the
authorization, tracking and security systems are at-
tached to the bicycle itself.
• Spride Share, launched in California in September 2010,
that allows car owners to offer their vehicles to others for
private rental.
• Fiat offering electric bikes on loan to customers whilst
their cars are being repaired in five Spanish cities.
• Autolib, one of the first electric car-sharing set to be
launched by the city of Paris in 2011.

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CITYSUMERS is the trend that keeps on giving for any business
professional obsessed with fun/practical/meaningful innovation.
You will undoubtedly have noticed that many innovations covered
in previous briefings can be applied to create products, serv-
ices, experiences or campaigns that are tailored to the very spe-
cific (and often more refined, more experienced, more demand-
• But it's not just big-ticket items. Savvy, wired urbanites ing) needs of urbanites worldwide.
increasingly have temporary access to almost every- So here's one last round of examples, representing CITYSUMER-
thing. New York, with its vast market of super- compatible trends like NOWISM, PLANNED SPONTANEITY,
spontaneous and seriously space-deprived consumers BRAND BUTLERS, and RANDOM ACTS OF KINDNESS:
has ever more options for those CITYSUMERS who
can't, or don't want to purchase items. Snapgoods,
enables people to rent other people's belongings, while
Rent the Runway that allows women to rent designer
dresses (with same-day delivery available in NYC).
As the question of ‘TO BUY OR NOT TO BUY’ has spread to cit-
ies everywhere, we'll take a look at the rise of SHARECONOMICS
in a future briefing.]

• More on bus shelter branding: for one week In Decem-


ber 2010, Parisians waiting to catch the bus had the
opportunity to wait in comfort as Swedish furniture giant
IKEA had decked out 12 (often crowded) bus stops with
comfy sofas, shelves, lighting and decorations.
• In January 2011, US based coffee retailer Caribou Cof-
fee launched heated bus shelters in Minneapolis, made
to look like giant ovens, complete with actual heat-
producing coils to warm commuters.

• In November 2010, city guide Flavorpill released an app


that covers cultural events in major US cites such as
New York, Los Angeles, Chicago, and San Francisco
(London, Miami, Las Vegas, and Dallas reportedly com-
ing soon). Puma sponsors the app, so embedded within
it are brand promotions featuring giveaways, products
and videos.
• In May 2010, New York based Compactix launched The
DeskMate, a portable device that allows desk-bound
professionals to exercise while they work.

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We've had to struggle to stop this Trend Briefing from becoming a
book, and yet we're just scratching a single surface of the multi-
faceted phenomenon of urbanization here.
For much more beyond the consumer angle, and to better under-
stand the political, economic, industrial, ecological and even psy-
• In December 2010, Ciroc Vodka launched a campaign
chological implication of the future global urban landscape, check
in New York in association with Sean Combs and NYC out the UN Habitat's State of the World's Cities 2011 report,
Taxis. The Safe Rides Program saw Ciroc staff teams Foreign Policy's Global Cities issue, McKinsey's What Matters:
distribute pre-paid USD 25 gift cards to consumers that Cities or World Policy Journal's Megalopolis: The City of the
could be redeemed for taxi rides. 21st Century issue.
• To celebrate the holidays and drive sales over Christmas And while you're immersing yourself in an urban future, start add-
2010, KFC unveiled the Festive Feast - a campaign that ing a city-angle to your strategies, your innovations, your part-
asked consumers to explain why their hometown de-
nerships, your campaigns. Does your brand have a New York
served a visit from KFC's secret Santa carrying USD
specific strategy yet? London? Singapore? Sao Paulo? Shenz-
20,000 in cash KFC gift cards.
hen? Amsterdam? Cape Town? Taipei? Toronto? Istanbul?
We'll take another look at the endless opportunities that this trend
is unleashing later this year, so make sure you're subscribed to
our free Trend Briefings. Enjoy!

• British Airways' Metrotwin is an online portal which


compares and contrasts city 'twins', and as a social util-
ity for time starved, novelty-seeking urbanites living or
traveling between the two cites. The site currently fea-
tures London, New York and Mumbai, providing recom-
mendations for the best neighborhoods, businesses,
attractions and places to visit.
• In January 2010, Nike launched its True City iPhone
app, which aims to give consumers 'insider' information
on six European cities, while also allowing users to share
their own tips and delivering exclusive Nike offers and
information.

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