When Facebook CEO Mark Zuckerberg announced that the social media giant would now be known as Meta, it came as somewhat of a surprise, even to some inside the organization.
Zuckerberg’s now famous keynote address broadcast from a CGI-enhanced metaverse was at times awkward and embarrassing, but it gave insight into the future of social media, and executives around the world were paying close attention, ready to embrace the Metaverse as their new marketing Minerva.
To date, several dozen brands have jumped on the Metaverse bandwagon, even if most average people don’t entirely get what it is. Those that are capitalizing on this nascent social strategy know that Gen Z is already engaging with the metaverse on one level or another.
Consider that global Gen Z consumers spend 17% of their leisure time gaming — more than millennials (14%), or Gen Xers (11%) and certainly more than baby boomers (6%).[1]
That’s why metaverse gaming company Roblox is getting the lions-share of the virtual branded market. While gaming is just a metaverse entry point, it’s evolving as we speak into much more than that. Indeed, the metaverse is expected to generate up to $5 trillion in impact in the next eight years.
We’ve put together six brands we think are making the most of the metaverse and turning it into a key opportunity for market integration and community-building.
Nike has always been at the forefront of digital transformation, starting in the early late 1990s and mid-2000’s when it experimented with Artificial intelligence (AI), e-commerce, and in-store experiential technology. Nike has always treated the world of sport and performance as a kind of supernatural embodiment of the Body as Machine. That cleaves nicely to new technology so it’s no wonder they were one of the first to embrace the metaverse.
Every year, $54 billion is spent on virtual goods, almost double the amount spent buying music. 60 billion messages are sent per day just on the Roblox platform.
In 2021, the brand introduced Nikeland, a purpose-built metaverse using a Roblox platform to allow its loyalists to meet, socialize, and take part in promotions. Here, they can engage with a whole range of brand experiences that simultaneously educate and build community. In our view, this is the purest value of the metaverse beyond its more obvious transactional opportunities.
The concept is clearly resonating with its audience: to date, nearly ten million people from 224 countries have visited Nikeland, a place that allows them to create their own avatar decked out in exclusive merchandise, and compete in games with other players. Does it matter that most of the merchandise is not available in the real world. Not at all. Consider that every year, $54 billion is spent on virtual goods, almost double the amount spent buying music. 60 billion messages are sent per day just on the Roblox platform.
Nike is building loyalty, retention, and amplifying its core brand messages 24-7, around the world.
https://www.roblox.com/nikeland
We know that soda brands aren’t winning the war on processed sugar, buts Coca-Cola Corp. isn’t going to take that lying down. They know they need to constantly convert younger and younger customers and reignite the magic that surrounds the brand’s hero beverage.
Enter “Coca-Cola Creations”, the new unit that is the brand’s global innovations platform, charged with building a culture around collaborative product development, loyalty, and community.
Here, virtual experiences are merged with physical ones, but the real emphasis is on NFTs and game-related interaction through celebrity and influencer performances, limited-edition merchandise, and the chance to explore a bespoke metaverse with like-minded people. Like Apple’s approach to making a computer the key to one’s personal creativity, Cocal-Cola is taking a page and making you in control of designing the latest flavor or can design.
Beginning in 2021, the soft-drink giant launched an NFT campaign centered around ‘loot boxes,’ — virtual goodie bags containing a variety of one-of-one digital assets – such as a branded puffer jacket wearable NFT, and other devices meant to showcase the experience of “sharing a Coca-Cola”, further underscoring the brand’s heritage. It was ambitious but not nearly as provocative as 2022’s launch of a new “pixel-flavored” soda that’s billed as “born in the metaverse”.
https://www.coca-cola.com/us/en/creations/thehub
Using the premise of “The Next 100 Years of Gucci”, the brand further cements itself as the ultimate luxury cool-hunter and arbiter of high art, in the form of NFTs displayed in its virtual art gallery, hosted by The Vault.
In conjunction with Discord (which bills itself as “the House of Web 3.0”), the brand offers even more exclusive experiences in Gucci Town, with limited-edition merch available for purchase via digital currencies like Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dogecoin, and Shiba Inu.
Gucci Town marks the brand’s move into gaming with its own global gaming academy in collaboration with Faceit and the World Health Organization. Gaming — at least for now — is at the heart of the metaverse and a critical strategy for Gucci to continually expand its customer reach. Keep in mind that a large portion of Gucci fans can’t necessarily afford the merchandise — but that doesn’t mean they won’t be able to in the future.
https://blog.roblox.com/2021/05/gucci-garden-experience/
Korean car brand Hyundai was one of the first automobile companies to invest in new tech, transforming the brand into a large-scale mobility company, or “metamobility”, as they call it, marrying smart devices with virtual environments.
“Robots will act as a medium to connect the virtual and real worlds.”
The brand’s move into AR is built into Hyundai’s mandate for the future, and it’s ambitious to say the least. They envision a car that doubles as both a vehicle for transportation and entertainment; a place where you can have a meeting room or settle into some 3D video gaming. With AR, users might make interplanetary visits thanks to their avatar robot, or simply “see” their final destination on an earthly voyage.
“Robots will act as a medium to connect the virtual and real worlds,” says a spokesperson, and already the brand has introduced prototypes. Hyundai has made deep investments in the development of flying cars (with Uber as a partner) as well as an entire division dedicated to robotics. In fact, robotics will be key to their global manufacturing strategy, enabling them to communicate with robots on assembly lines and make quick changes without ever having to travel to the assembly line.
Hyundai recently announced it would invest over a $5 Billion in the U.S. market, so our bet is that we’ll see even more bolder developments transforming the role of the metaverse in mobility with robotics, AR, and autonomous driving solutions.
https://www.hyundai.com/worldwide/en/brand/hyundai-metamobility-universe
The key to any AI or AR solution is in its success in marrying the real world with the digital, in a way that’s seamless and practical at its core. While gaming will continue to be instrumental in training consumers to engage with the metaverse, more and more we will see concepts that trigger people to use their mobile technology to connect with their real-world environments. Take MeetKai, whose goal is to map the real world’s physicality with an AI-enabled virtual world.
MeetKai launched with a massive billboard in New York’s Times Square, where pedestrians can scan a QR code and simultaneously explore the exact same location physically anddigitally, while exploring MeetKai’s metaverse. Their metaverse enables visitors to earn NFT’s like exclusive “keys to the City” and gift cards that can be used in both their real and AR worlds.
And that’s just the tip of the metaverse iceberg. MeetKai claims it’s end goal is to build a democratized and inclusive metaverse that will connect people to meaningful experiences — not just games or marketing ploys. Powered by AR, their vision emphasizes things like wellness, fitness, and cultural experiences, environments that “add value to day to day routines.” Who doesn’t want that?
https://meetkai.com/vr
This summer, Marriott Hotel’s Moxy brand launched “Moxy Universe – Play Beyond” for the Asia-Pacific region, which includes 12 properties in China, Japan, Korea, Singapore, and the Philippines. The AR experience begins with the guest’s phone, as they create personal avatars and then interact with the hotel’s various game-related exercises within its real, built environment within their hotels, from “grab and go” snack stations to the hotel’s bar. While not the most innovative use of the metaverse, there is still a lot of ground to break for hotels using AR, so Moxy gets kudos for being the first to enter the Great Beyond.
The fact is, the hospitality industry is ripe for AI and AR, but our vision is a bit different than Marriott’s strategy. What if I am able to see and customize my room before I even get there, adding or removing a host of amenities until I’ve created a distinctly personal experience? With AI, there’s the opportunity to build a highly-detailed travel experience and establish a preference history that can easily be transferred from one property to another. With AR, one can participate in social gatherings in the hotel’s metaverse, perhaps meeting other guests who will be staying at the hotel at the same time as I am. And that’s just a small portion of what’s possible. We’ll be sharing more in future posts.
https://www.moxyuniverse.com/
The COVID-19 pandemic will go down in history for many reasons, not least of which is the way it changed people’s behaviors. From hoarding toilet paper to buying dry goods from closed restaurant kitchens; making their own masks to drinking cocktails out of a can, life as we knew it changed.
With fitness clubs forced to close, pretty much everyone invested in some sort of home workout equipment, whether it was a pricey Peloton or a cheap set of dumbbells.
The AHA Moment
But here’s what else happened: people realized that they didn’t really “need” a gym as much as they thought; they discovered that there were a lot of exercises that could be done with little to no equipment and in half the time they’d normally spend at a fitness club.
The truth is: before, we were either over-exercising or not nearly as much as we thought we were – because we all know that those “breaks” between sets are nothing more than an opportunity to get back on your phone.
Working out at home isn’t only cheaper than a gym membership, it’s more efficient.
Now in 2021, that idea continues to resonate. In fact, a survey of 3,500 Americans[1] found that 76% of the people polled that had decided to work out at work out home during the pandemic, 66% said they actually preferred it. With millennials that number was even higher: 82% made the switch with 81% liking it more.
The truth is: we were either over-exercising or, not nearly as much as we thought we were.
What people discovered was that going to the gym had become a time-suck, taking much longer than really necessary, especially when you add in the delays caused by waiting for equipment, available lockers, or showers. Too many people working out at the exact same time every day was ultimately eroding what little personal time was left to them.
Fitness Clubs Have Their Own AHA Moment
Come the pandemic, fitness chains were either filing for bankruptcy (24-Hour Fitness) or trying to figure out how and if they could conduct classes online and charge for them.
The long and short of it is, the big box gyms had already been struggling, what with boutique clubs eating into their core customer: Soulcycle, Barry’s Boot Camp, and CorePower Yoga knew that people wanted smaller classes, shorter sessions, and no waiting.
Just how many Zumba classes do we really need ?
Peloton found out something more: people enjoy the freedom of working out alone and anytime they want, especially if there’s a virtual coach on hand.
The pandemic was a veritable gift for the company, and Peloton doubled their business in 2020 to the tune of $1.8billion in revenue — enough extra cash for them to snap up Precor, the fitness equipment manufacturer.
While Peloton still has no real competitors, there are others out there making specialized home equipment, but online streaming classes are still booming even with gyms re-opening.
So Lululemon popped up and decided to buy the home fitness streaming device Mirror. They expect sales to exceed $150million by the end of 2021.
The Future of Fitness is a Hybrid
So, what’s the future of fitness going to look like?
Streaming and working out at home will still continue to grow as a trend simply because it makes sense for the way people live today.
Before, we had gyms on steroids, but we only used a fraction of what they offered. Just how many Zumba classes do you really need? And unless you belong to an elite gym, you’re often forced to work out with hardcore meatheads who hog the equipment or people who use the gym as their personal bathroom.
However, gyms will not go away. They will get somewhat smaller and much more elevated in their design and offer. That means more expensive memberships, fewer mainstream fitness classes, and more social club amenities like a bar, lounges, and spa treatment rooms. Club members will use the gym for one-on-one training sessions that balance with their at-home training.
In Europe, some are hailing clubs like L’Usine and La Montgolfière as an indicator of the future of fitness clubs – more social club than traditional fitness in focus. Here, they have taken has taken the concept of the gym to a higher level with bespoke details like leather boxing bags, a restaurant, elegant lounges, and spaces where you can work.
Like the gentleman’s club of yore, a club like La Montgolfière becomes a “Third Place,” a place in-between work and home that is a community built around health, wellness, and a sense of belonging.
Will consumers continue holding corporate entities accountable for their stance on civil rights issues? Yes, but in our analysis the sentiment needs to include demonstrated action rather than superficial statements.
While some lauded the fact that companies with racist brand identities like Quaker Oats, Aunt Jemima, and Land O’ Lakes butter made the effort to eliminate those icons, the larger question remained: what’s changed within these brands? Other than removing a mascot, how have they changed their personnel strategy and corporate culture?
Data from research firm Piplsay certainly calls that into question.
In a survey of 30,452 Americans, it becomes clear that corporations have an upward climb towards earning the respect of consumers.
The fact is, time and again, brands use marketing to communicate change without making it systemic to the organization.
65% think brands should be required to take a stand against racism with 46% believing that such actions could potentially lead to a credible change.
Still 61% say that just removing a racist mascot will not make a measurable difference. Rather, that the priority should be addressing racial bias within the organization (we think both should be at the top of the list and consecutive, quite frankly.)
Most telling is that 56% of consumers would be willing to show preference to brands that overtly speak out against racism. The vast majority – 60% — in this segment being Generation Z and Millennials.
At b. on brand, our concern is that in a time of economic crisis, just how far will companies go to do the heavy lifting needed to change their core values and demonstrate that change at the top level?
Time and again brands use marketing to communicate change without making it systemic to the organization.
Case in point: research from AceMetrix shows that when Nike created their anti-racism campaign with the message, “For Once, Don’t Do It” (a play on their slogan, “Just Do it”) as a means to call on people not to ignore racism, but many wondered if the brand’s aim was still about selling shoes rather than promoting political activism.
It seems obvious but executives didn’t get it. A message that says, “don’t do it” doesn’t ask for a major change in thinking rather, it simplistically requests restraining a negative feeling or impulse to be racist. You might as well say, “Be Nice.” There’s no intrinsic evolution or moral accountability.
We believe that reactive advertising, which is pretty much what all of these ads were, is seldom if ever effective because you are tacitly late to the party.
Likewise, an ad by MacDonald’s that aimed to support the Black Lives Matter movement called out the names of those who were victims of police violence. But the overall perception was that the ad was exploitative and taking advantage of the movement’s momentum.
It may have felt “deep” to put those names on the screen, but what else was MacDonald’s doing to stop more names from being added to the list?
The brand’s biggest mistake was that it completely ignored the fact that many of their employees are black and had been demanding better protections against discrimination in the workplace and increased safety measures against COVID.
Demonstrate your change, don’t just talk about.
We believe that this kind of reactive advertising (which is pretty much what all of these ads were) is seldom if ever effective because you are tacitly late to the party. You waited until the last minute to make a statement.
Corporate entities need to take a more holistic approach to change within their organization. A brand that demonstrates that it has taken the time to collaborate with its stakeholders and develop a company-wide manifesto for changing the brand’s ideology and behavior will go much further in creating change than a major advertising campaign; especially one which ultimately is designed to deflect the blame.
Goodbye Uncle Ben, farewell Aunt Jemima: the truth is, removing a racist mascot is a short-term superficial promise of change but it does not address the fact that consumers know who’s in charge at the top, and chances are, they’re white and a major part of the problem.
For decades, Hong Kong has been a shopping mecca, a destination for luxury consumers throughout Asia. It’s estimated that the city contributes roughly 5 to 10 percent of global luxury sales. Tiffany &Co. alone has ten stores across Hong Kong and Kowloon. Other brands with only half that number still consider adding to their portfolio.
What will happen to the vibrancy of everyday life in Hong Kong — is this the new normal?
But many are now giving that a second thought.
Hong Kong is embroiled in seemingly endless protests over China’s hardline stance towards the city’s autonomy and civil rights, a battle which began over an extradition bill that would give China the right to remove those who they consider dissidents.
Will Soo
Police fire teargas and fire rubber bullets at demonstrators in Causeway Bay. The months-long protests and violence have disrupted business and caused a dramatic decrease in tourism.
Now, Hong Kong’s economy, heavily dependent on tourism, is officially in a recession.
“To be honest, you really cannot underestimate the impact the protests are having. Mainland Chinese have pretty much stopped coming to Hong Kong to shop,” says Francis Cheng, CEO of NumberOne PR.
“These kinds of [political] events impact the kinds of stars and celebrities we can attract, because none of them want to get asked political questions on the red carpet.”
“Even people who live in Hong Kong are avoiding going to stores. Hotel occupancies are way down, and restaurants and bars are suffering. It’s not just an issue of safety. I think it’s a morale issue too.”
Asia Tatler
Cheng knows a thing or two about how low morale can affect retail sales. He remembers how SARS nearly shut down the city. For over a decade, Cheng has overseen countless major fashion events in Hong Kong, ensuring that those who matter are there on the red carpet. When luxury brands need a big push, they turn to Francis.
“These kinds of [political] events impact the kinds of stars and celebrities we can attract, because none of them want to get asked political questions on the red carpet, or worse, get attacked on social media,” says Francis. He says many have chosen to leave Hong Kong temporarily because of the political climate.
“You really cannot underestimate the impact the protests are having. Mainland Chinese have pretty much stopped coming to Hong Kong to shop.”
And brands worry just as much — if not more — than Francis. On March 14, a Valentino store event at the upscale Landmark mall was pulled off without a hitch and with all the right people attending, but not far away, a pro-democracy group held a sit-in protest at the Central Government Complex.
Since then things have dramatically escalated, making most events virtually impossible.
Kenneth Leung
Protesters and their supporters have taken to posting videos of the rampant police brutality. Traffic is snarled by demonstrations and tear gas. Meanwhile, some companies have taken to warning their employees to keep a low profile.
“They have told their employees to be cautious and not voice their political opinions or even forbidden them to join protests,” says Kenneth Chu, who works in sourcing and design for a major US retailer.
“I feel devastated that politically so much has changed in Hong Kong, but the protests strengthen my self-identity as a Hong Konger.”
copyright b on brand
Just the other weekend, Kenneth went shopping in Tsim Sha Tsui. The “luxury row” stores along Canton Road ordinarily have long queues of Mainland Chinese waiting to get inside. Kenneth found the streets surprisingly empty.
“I don’t see any retailers or brands taking any extra steps to find other ways to gain more shoppers,” says Kenneth. “I think they know people are just going online instead.”
For Francis Cheng and others who work in the industry, digital marketing is a key part of the new strategy.
“Right now, all I can really do is double down on the kind of CRM that we do and reach out to our key customers through online promotions and messaging. We just don’t have a lot of options when it comes to marketing.”
Department stores like Harvey Nichols and Lane Crawford are literally bringing the store to VIPs, shipping racks of their favorite designers to try on in the comfort and privacy of their own home.
For those critical Mainland shoppers, strategies include cross-border e-commerce, which has been a critical tool for Hong Kong’s iconic Lane Crawford department store. The brand even offers free shipping and mobile payments like WePay and AliPay.
But what will happen to the vibrancy of everyday life in Hong Kong — is this the new normal? For Francis, it’s a worrisome thought.
“I’m a publicist, so my role pretty much dictates that I don’t get political or personal. But this is wearing me down. I am concerned that the Hong Kong I know and love may disappear. China is very, very serious. I just don’t know how this is going to end.”
For the majority of Americans, Sears department stores has played some role in our lives: it was where you bought Toughskins jeans, a new refrigerator, or a set of power tools. It was never a sexy brand but then, that wasn’t what it’s role was.
It was an institution. In 1969, two-thirds of Americans shopped at Sears, and its sales represented 1% of the nation’s economy.
It was – and we emphasize, was – “where America shops.” That was the brand’s slogan from 1974 to 1978, followed by “There’s more for your life at Sears” in the 1980s.
Today, the brand needs a lot more than a slogan. After several bankruptcies, scores of store closures, and thousands of employee layoffs, the brand is doing all it can to be meaningful again.
To become relevant will require moving mountains – the ones that separate Sears from a younger generation that has no idea what the brand stands for.
Sears
But is it too late?
Sears has been largely irrelevant ever since it was merged with Kmart and forced to compete with upstarts who were doing it better and faster: Amazon, Wal-Mart, Target, Kohl’s, Home Depot, and Lowe’s.
By 2016, Sears had lost 96% of its stock market value.
Now, investors are betting on a new, smaller-format concept called Sears Home & Life. Let’s be frank: no one is ever going to call it anything but Sears, but the lifestyle intention will probably resonate for some people.
“What we have to do with the boomers group is win back their trust, win back their confidence.”
It’s a last-ditch strategy, for sure, which began awkwardly when the brand announced its new name – and logo, a blatant riff on airbnb’s.
With Sears Home & Life, the objective is to free the brand from excess merchandise and focus on the tried-and-true products and services that Sears has always been known for: appliances, appliance repairs, mattresses, and home and garden tools.
Keep in mind that Sears still owns the house brands that made it famous: Kenmore, Craftsman, and DieHard. These will be the equity that will help underscore the brand’s relevance and authority.
The first Home & Life stores opened in Lafayette, Louisiana, Overland Park, Kansas, and Anchorage, Alaska, with none larger than 12,500 square feet.
“We are looking for emerging communities where young families are building homes,” said Peter Boutros, chief brand officer for Sears and Kmart in an interview with CNBC. “Also, where boomers are downsizing. What we have to do with the boomers group is win back their trust, win back their confidence.”
It’s true that there are still customers who want to experience products in a physical store, and rely on the guidance of a customer service rep. Sears Home & Life will also feature its own version of a Genius Bar. The stores will also allow customers to order products for delivery, order-online-pick-up-in-store, and a curbside pickup option.
While Sears is hardly ahead of the curve with any of these ideas, it’s a major step up from where the brand was just 12 months ago.
Ira Niemark passed away on April 20, 2019. Three years ago, we interviewed retail’s elder statesman about the future of retail, and the iconic department store that stole his heart.
Don’t tell Ira Neimark that the department store is dead.
At 93, Neimark may not be clocking in for work anymore, but that doesn’t mean he doesn’t have an opinion about what the retail industry needs to do to energize the customer experience at the store level.
Ira Neimark is a man of the old school, and he can rattle off the names and competitive advantages of just about every department store that ever existed. But his heart belongs to Bergdorf Goodman, where for 17 years he established himself as “the benevolent dictator,” and catapulted the store to legendary status. He broke standards by being one of the only CEOs and General Managers to spend most of his time on the sales floor.
Neimark is a master raconteur and his three books, including his latest tome, The Rise of Bergdorf Goodman and the Fall of Bonwit Teller (2015, GamePlan Books,Inc.) is an insightful chronicle of New York’s golden age of luxury retail. While he says he is weary of interviews, we found that he still has plenty to say about the shortcomings of today’s department store.
BERTRAND PELLEGRIN: Department stores get plenty of scrutiny for not always measuring up to smaller scale boutiques, especially where customer service is concerned. Do you think department stores still have work to do?
IRA NEIMARK: The generation of executives operating retail stores today particularly department stores, are not familiar with the art of customer service. There are exceptions of course, but as a rule, most require a completely new mindset. Sales people, like spark plugs in a car, generate business. Their expense can easily be covered by a fair commission system.
So you think there’s a lack of investment in customer service training?
Customer Service has to start with the CEO. I observed for over 50 years, when the CEO believes in the customer comes first, since the customer pays our pay our salaries, then the whole organization gets on board. If the CEO is indifferent to customer service, so will his organization.
Besides customer service, what are some of the details that aren’t being delivered today?
What is missing is the excitement of something new every day. Target’s promotion of Designer clothes at ridiculously low prices is an excellent example of excitement bringing hoards of customers into their stores. Major fashion shows as major events also attract customers into stores.
In my own book, Branding the Man, I argue that by the early 2000’s, rather than mentor the male shopper, many American stores had begun to give in to the “casual business” attire that had taken over corporate America. Do you believe that men’s retail is still an important investment for retailers?
My experience both with Bergdorf Goodman Men and with Hermès, where I was a board member, showed that there are very many men of good taste and income who are interested in quality and appearance. These customers in most cases are above the age of 30. Even those of moderate income recognize the importance of “looking right”. There are others of all ages who have no sense of style, who wear casual T shirts and jeans to nearly all occasions. To them, Casual Friday is every day.
In your book, you emphasize that a store’s reputation is built on a consistent experience. What makes that more difficult today than before?
Most of my retail business experience has been with luxury retail and high end department stores. In all cases, no matter how large the store, the customer was made to feel welcome and treated as a valued asset.
I made a point of doing all my office work on a podium at the foot of the escalator. I made sure that every customer was taken care of on the selling floor. I walked around and observed sales people and customers. I call it an MBWA degree. Management By Walking Around.
So what are retail executives cutting back on?
Things like unbelievable store hours, staggered sales people, or recording the store’s telephone operators. These reinforce the importance of consistent customer satisfaction.
It’s easy to say “things were better before than they are now.” In your opinion, what modern retailer impresses you?
There is one retailer who in my opinion, consistently stands out and that’s Nordstrom.The family running that business, more than many others, understands how their customers would like to be treated. Their continued success, due to outstanding customer service, is an exception to the rule. But It should not be an exception, it should be the goal of all retailers.
By and large, department stores are notoriously late to the party when it comes to retail innovation but with the current lackluster performance of stores, just about anyone should get credit for trying.
Both Nordstrom and Neiman Marcus have both set forth new incubator concepts that could potentially add some energy to their stores and provide insight for future efforts.
In retail, great ideas are often recycled ideas and neither store is delivering anything groundbreaking.
Last year Nordstrom created what they called a “local” store, with a pop up in LA’s West Hollywood that was devoid of any real merchandise and instead highlighted their services.
They delivered a sleek, contemporary lounge with curtained areas for consultation, areas to work or browse the internet (preferably their website), and organically absorb the Nordstrom service ethos.
Separated from their traditional selling spaces, a temporary shop like this one excels when it performs as a hub for brand loyalists, and Nordstrom made sure to underscore special services such as tailoring, shop online, pickup in store, personal styling, and even nail services.
This year, the brand plans to add two more Nordstrom Locals to the Los Angeles market.
Of course this isn’t exactly a new idea. Both ebay and Amazon dabbled in this idea years before, but Nordstrom is doing the right thing in terms of bringing deep focus to what they excel at: service. A pop up like this one sets the stage for one-on-one conversations with clients and zero in on what needs are potentially not being met in the traditional store.
Neiman Marcus began 2018 as one of the U.S. retailers most likely to face bankruptcy. What have they got to lose?
Meanwhile, Neiman Marcus has launched the” Idea Factory,” which, like Nordstrom, is designed to give a more dynamic feel to the store experience with demonstrations, customization, limited-editions, and lifestyle services like body piercing – not the first thing one thinks of when you think of Neiman’s.
But what have they got to lose? Neiman Marcus began 2018 as one of the U.S. retailers most likely to face bankruptcy.
The problem with Neiman Marcus has always been that it has never managed to feel truly modern. It’s “serious” luxury as opposed to Barneys’ “playful” luxury, and that means their client base hasn’t gotten any younger.
In adding the “Idea Factory” to the mix, they are potentially able to highlight a more progressive point of view and one that is of more interest to a younger demographic. We think the piercing idea is a bit cliché and sounds more like a Macy’s idea. Neiman’s hasn’t released much info on just how many “ideas” they have but we’re hoping they have more than the handful outlined in their press release.
Both have taken a page from specialty boutique retailers like Paris’ Colette, New York’s Story, and others on both sides of the Atlantic who have typically been nimbler at innovating rich brand experiences.
That both are resorting to trying to underscore their “uniqueness” now rather than years ago is astonishing to say the least. Still it remains to be seen if this kind of marketing and store activation will actually drive traffic to stores.
Our money is probably more on Nordstrom which already has a solid reputation for customer service, while Neiman Marcus’ Idea Factory has a lot of moving parts and it’s hard to tell whether any of it will feel like more than the usual department store events programs.
Admit it: Macy’s is a slow sinking behemoth, a Titanic in the world of retail which we all watch sink with a certain reverence, nostalgia, but also a degree of relief.
The truth is Macy’s ship has long since sailed and it probably should have packed it in a long, long time ago. Yet they continue to rearrange the proverbial deck chairs.
Macy’s is a museum to the dawn of the Millenium when a sea change took place and retail changed forever.
That they have continued to try and be relevant is astonishing, giving clear insight into the denial of its board of directors. Terry Lundgren, the now former CEO rarely admitted the obstacles, instead touting that Macy’s would become the model for omnichannel retail.
After Christmas 2017 he touted it’s 1% increase in holiday sales. Lundgren’s big moment was when he announced that the brand would be come omnichannel.
The fact is, Macy’s aging demographic is far from being omnichannel so what makes you think it matters if you are?
When they installed those self-service bar code machines is when they basically told customers to not bother asking for help.
The truth is, Macy’s still feels like it’s lost in time, 1999 to be exact: the massive scale of floors full of vanilla products and brands that are so boring and all-American, staffed by aging and stubborn union employees who know little if anything about the product they sell.
“We don’t have our head in the sand as to the significant challenges we face in getting the business growing again,” he says Macy’s CEO Jeff Gennette.
Jeff Gennette, who earlier this year replaced Lundgren as CEO, seems to know what the brand is up against.
“We don’t have our head in the sand as to the significant challenges we face in getting the business growing again,” he says, in an interview with the Washington Post. “We certainly don’t have all the answers yet, but we are working on them with a sense of urgency.”
I’m not sure which is more alarming: his use of “yet” or “sense of urgency.”
From the company’s 2016 annual report came this optimistic message to shareholders:
“The Company seeks to attract customers by offering most wanted selections, obvious value, and distinctive marketing in stores that are located in premier locations, and by providing an exciting shopping environment and superior service through an omnichannel experience. Other retailers may compete for customers on some or all of these bases, or on other bases, and may be perceived by some potential customers as being better aligned with their particular preferences.”
It’s an oddly knowing statement: starting with an attempt at a positive and ending with a very ominous negative.
Macy’s challenges are formidable and in our view, insurmountable – unless the brand takes a giant step in a different direction.
Here are our reasons why Macy’s needs an aggressive transformation:
1) Amazon is tracking to be the largest clothing retailer of 2017 and 2018, with its growing roster of private label offerings. Keep in mind that the largest profit center for Macy’s is women’s clothing.
2) Every month, two-thirds of Macy’s most loyal customers and 70% of Millennials shop at off-price retailers.
3) Macy’s is so addicted to never-ending promotions and massive discounting that they simply cannot survive otherwise. Customer’s are been trained to expect the discounts.
4) The company is saddled with too much real estate, which alone is worth billions of dollars. Last year’s closing of 100 stores is simply not enough.
Which is why it came as no surprise when following another dismal Christmas season, the company announced the closure of dozens more stores.
So what is the future of Macy’s?
The biggest problem with the Macy’s experience is its vastness, an unattractive warehouse of bright lights and stacks of stuff.
Macy’s could offer a bolder alternative to Amazon as an online retailer coupled with tightly edited dynamic showrooms offering broader buy-online-pick-up-in-store concepts. Imagine Macy’s with an Amazon Locker offer where shoppers could pick up their merchandise in their own neighborhood.
Of course what Macy’s should have done is just merge with Amazon. Late last year that rumor swirled but instead Amazon partnered with Target.
Now, a store like Macy’s is this strange anachronism for a kind of retail that is so irrelevant that it feels almost quaint walking into one of its stores.
But nostalgia is no longer profitable in the age of the Internet and more than likely 2018 will mark a pivotable year for the aging giant. We’re watching.
Perricone MD was one of the first cosmeceutical anti-aging brands in the world, a leader in pushing the market for active-ingredient products that provide many of the same results as costlier prescription formulas.
Nearly two decades later, there is still room for revolution.
“This was about identifying supply and demand and making sure the product gets to where it needs to without exhausting resources.”
“We saw the opportunities for the brand to increase its core competencies with a bolder supply chain strategy,” says Brian Valmonte, PerriconeMD’s senior director of operations. “Supply chain is complex. This was about identifying supply and demand and making sure the product gets to where it needs to without exhausting resources.”
b. on brand partnered with Brian in identifying key opportunities for improvement and developed strategies for cost efficiencies, profitability, and system optimization.
Within the first six months of our involvement, order fulfillment improved by 30% thanks to our establishment of an internal workflow process to sustain unit fill rate and on-time delivery for kit assemblies.
“With the increasing competition and growth in the beauty industry, Perricone MD has continued to flex its innovation and expertise to lead the category”, says Brian.
“For instance the H2 Elemental Energy launch earlier this year was a huge success and has continued to spark interest and cult followers. My work with Perricone MD has been sharply focused on ensuring that supply can meet the demand.”
Within the first six months of Brian’s involvement, order fulfillments improved by 30% thanks to our establishment of an internal workflow process.
Brian implemented new internal programs for product launches through a process of reviewing the Bill of Materials for accuracy and SKU set-up. This ensured that virtually all components and raw materials were prepared within the scope of necessary lead-times needed by contract manufacturers.
Brian also developed a team of supply chain planners and is currently involved in the roll-out of a new MRP (Material Requirements Planning) system.
“It’s been really rewarding to work with the Perricone MD team and see positive growth in a relatively short time. This is a company that was one of the first to get into the cosmeceuticals market. After nearly two decades, they are still nimble and forward-thinking.”
We love naming brands and products. There is nothing more intoxicating than coming up with the perfect name that instantly registers with the consumer and makes them feel a product is alive and effervescent.
“Intoxicating” and “effervescent” are also words used to describe champagne, and in 1993 it was “champagne” that inspired designer Yves Saint Laurent to use as the name for his newest fragrance.
Champagne was the inspiration for a hedonistic new scent meant to emulate the decadent Saint Laurent lifestyle.
Saint Laurent knew a lot about champagne: it fueled many a wild night at Paris’ Le Palace and must have made perfect sense in terms of brand alignment. Champagne was his muse (along with other stimulants), and the inspiration for a hedonistic new scent meant to emulate the decadent Saint Laurent lifestyle.
The bottle design was perfection: Champagne came in a stout little glass bottle that looked just like a giant cork, and featuring a metal “cage” and metallic top.
For the launch, Elf-Sanofi (which at the time was the parent group of Yves Saint Laurent), budgeted $17Million on a massive marketing push throughout Europe, Africa, and the Middle East (it launched last in the U.S.)
Champagne was a hit, raking in more than $35Million in global sales.
But it all became sour grapes when France’s wine producers took Elf-Sanofi to court claiming that Saint Laurent’s fragrance was coopting champagne’s brand equity and diluting the integrity of the legendary beverage.
‘Champagne’ was a hit, raking in more than $35Million in global sales.
So wait a minute: then why does Miller beer still get to use “the Champagne of Beers”?
Because they started using it in back in 1903, long before there was any real protection for appelations. Therefore Miller is exempt because their right was grandfathered in. They continue to use it today, as does Korbel sparkling wine.
In 2006 the United States and the European Union signed a wine trade agreement which included no longer permitting the use of terms like “champagne” on any products not from France’s Champagne region.
More recently, however, even Apple came under scrutiny when they used “champagne” to describe a color of iphone casing.
So what happened to Yves Saint Laurent and his suddenly nameless hit fragrance?
In 1997 it was relaunched with a bottle ever so slightly different and a new name: “Yvresse” – a play on the French word ivresse — to be drunk or intoxicated.
Watch the original television spot for Champagne.