Retail

What will I be doing in 2019?

As us usual, I’m always influenced by the current zeitgeist. Today’s inspiration comes from a Vox video attempting to answer the question: Does expensive wine taste better?

I’ve always told my clients that wine is a sensory experience that requires the use of all senses, but I’ve learned that what makes me more successful than my competitors are the stories I tell; and how I empower my clients with enough knowledge to “try something new” the next time they go to the store. That’s an investment that yields infinite returns no matter what products you represent. #AlwaysAddValue

Yes, it is true that awesomely well-trained, data savvy, wine professionals like myself can manipulate clients to buy whatever we want to sell (see the research), but my satisfaction has always come from surprising clients with profound and pleasurable discoveries.

That’s why I love treating curious customers to some of my rarest or more expensive wines in the first meeting. Sometimes, they can’t even afford the wines I present – so why do I take this counterintuitive approach? Well, aside from the fact that it fosters desire, it’s also because what my clients value most – above ownership and consumption – is a journey. So, setting them up with a view of what they “could be” drinking is more important than someone telling them what they “should be” drinking. My clients don’t just want me to help them make memories – they want me to inspire dreams. Doing this the right way always requires more work that most professionals are willing to put in, but it is the most sustainable strategy to truly winning hearts and minds. 

Customers and friends still contact me every time they find something new. The most gratifying aspect of this is that they want me to share their new discoveries with them. I go from being a consultant to a partner. #SoThankful #KnowYourCustomer #KnowYourCompetition.

Here is my recipe for the work I’ll be undertaking in 2019:

  • Take my unique CX approach to #MakingMemories #InspiringDreams; and
  • Marry that with my purpose to “give clients access to the best that life has to offer”; and
  • Add my love of #Datasets and #GeospatialModelling; then
  • Throw in a sprinkle of data science with a dash of #SeeingAroundCorners; and
  • Add a continuous stream of confidence and perseverance.

2018 has already come to an end in some parts of the world and is only a couple hours away from my comfortable perch. I sincerely want to thank every person who has been part of my #Superstory thus far. I am especially thankful for the obstacles I overcame and all the experiences that have led up to this exact moment. Most of all, I am thankful for my wife and family. I couldn’t have made it this far without their support.

In 2019 and beyond, I believe there will be a lot more stories wanting to be told, and more memories to facilitate. I’ll be focused on the consumer frontline – bringing the fringes to the front by empowering makers (a word borrowed from a company I admire) and consumers with the tools to unlock hidden value.

#TurningDesertsIntoGardens

#HappyNewYear

#NextBigThing

#StartedFromTheBottom

UPDATE: Transactional Integrity and Luxury

I updated my last post on Transactional Integrity  with a new post on Linkedin Pulse. Check it out. I’m so glad to be blogging again. I also updated my visuals using free high-res images . Thanks to Kirby Ferguson (@remixeverything) for mentioning.

Transactional Integrity… and Luxury

As a brand guardian, every time I get to introduce consumers to a brand I consider to be “true luxury”, it is nothing less than a privilege.

However, there is one rule: I never advocate brands, with which I haven’t had some reasonable interaction (as a consumer, loyalist, or enthusiast). To do otherwise would be disingenuous and represses Transactional Integrity. Continue reading →

I Love The Business of Luxury Like A Fish Loves Water

So, the HBS Retail and Luxury Goods Conference is over and I’m wondering why I go to this conference every year.

Well, its simple.

The Dream Team (and yours truly) - Members of the LuxRe Club from The College of William and Mary at the HBS Retail and Luxury Goods Conference

The Dream Team (and yours truly) – Members of the LuxRe Club from The College of William and Mary at the HBS Retail and Luxury Goods Conference

I like to listen to the array of views on what’s going on in the luxury industry. I also enjoy meeting new minds, and reuniting with old friends. However, the real reason I go to the conference is simply because it makes me feel good. It fires up my creative neurons and allows me to think about things in different ways. The best way to describe it is that I feel comfortable – like a fish in water.

Reimagining the In-Store Experience: One of the panels at the HBS Retail and Luxury Goods Conference

Re-imagining the In-Store Experience: One of the panels at the HBS Retail and Luxury Goods Conference

Key Idea: Find those environments and business cultures that make you feel good about who you are. Find the people and places that excite your true passions. You won’t go far if you fail to be honest with yourself about who you are and what you believe in. Act like a luxury brand and stand for something.

My View: The main reason I joined the industry is because it stands for something that is important to me. Though there are opposing opinions out there, I believe that the luxury segment benefits a vast array of stakeholders in different geographic, cultural, and socio-economic segments – governments, companies, the environment, and of course, consumers. The industry doesn’t just provide beautiful products and valuable services for consumers – it also provides jobs and supports economic development.

BOLD Customer Experience Management, Blogging, @doubletree… I need more than 140 characters

I need more than just 140 characters

As soon as I tweeted it, I felt like I had to say more. Have you ever met someone, read a book, or watched a movie that contained ideas or dreams that you’ve always had? Thoughts that, prior to the encounter, you couldn’t concisely express?

I’ve been having those moments as I’ve been reading this book about companies that adopt a customer-first culture.

BoldThe book has been the breath of fresh air I needed to fill my lungs of passion for the customer. After going through some of my past posts, it dawned on me that I agreed with the authors (Shaun Smith and Andy Milligan) long before I received the book as a graduation present in 2012. Since starting the book, I have ordered four more copies for my friends across the US (and even in Japan). I think you should read it too.

Heck I might just send a free copy to the first person to send me a message via the comment box. 
 
Past Posts

As I was looking through my old posts, I felt so proud for having a point of view of my own, before being introduced to someone else’s. I couldn’t have begun to formulate my perspective if I hadn’t had a cathartic outlet like blogging. It never really mattered if I sounded stupid, smart, or experienced, I just wanted to put my thoughts out there. All that mattered was for me to develop my own point of view. Finding this book was such a proud moment for me because it lets me know that I’m not crazy. I’m just saying what I think. So its really important to blog.

If you need to develop a point of view on something that’s important to you, start putting your thoughts out there. Start a blog…. do something.

On to the next piece.

I’m in Boston, MA for the Retail and Luxury Goods Conference held by Harvard Business School. I’ve been coming since 2011 because its such a comfortable zone, being around luxury industry professionals. It’s especially relevant for me because of my personal mission in life and business:

Tweet

Whenever I come to the conference, I stay with the same hotel brand – DoubleTree by Hilton Worldwide. I have to say it is such a wonderful customer experience because I always get what I expect – the feeling of a home away from home. More to come sooner than you think.

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How To Get A Job In The Luxury Industry – Forbes

Click the picture to go to the Forbes.com article.

Click the picture to go to the Forbes.com article.

My View: This is an insightful point of view from an industry practitioner. No one has all the answers, but this will certainly get you in thinking in the right direction.

 

 

JC Penney Going for Broke / Luxury Conference in Boston, MA

Ron Johnson’s Original Turnaround Plan for JCP – Circa April 2012

The Gist:

Less than a year ago, I wrote about JCP’s “square pricing” strategy created under CEO, Ron Johnson. The pricing strategy was intended to help the retailer grow its business, however, latest indications show the company has recorded four consecutive quarters of decline.

In combating the consumer backlash, Mr. Johnson is rolling out some of the previously discontinued sales that JCP is known for. There is no indication as to how many sale campaigns the retailer will bring back, but JCP’s CEO has vowed not to return to levels where the company ran up to 600 sales promotions each year. Supposedly, the retailer is going to introduce a limited number of promotions that tie in with the core habits of its consumer set – shoppers who only buy when they need something and require high value.

It’s bad enough that most of JCP’s consumers have decided to shop at its competitors (Kohl’s, Target, Dillard’s, and Macy’s to name a few). What’s worse is that Wall Street investors have also lost confidence in the stock. After losing more than half of its value, Penney stock is now trading at around $19. The company will also find it hard to raise capital as its credit rating is in the realm of “junk status”.

There is still no light at the end of the tunnel for Ron Johnson’s (RJ) turnaround. Though I was very pessimistic (and correct) in my initial assessment in April, 2012, I wouldn’t quit on RJ just yet. You do know he turned Apple and Target’s retail performance around, right? The past is the best predictor of the future. I just might roll the dice on some JCP stock.

Question

Where do you need to be this month?

Harvard Business School

Answer

In Boston, at the Retail and Luxury Goods Conference, at Harvard Business School. It happens every year (this is the ninth) and is never a dull event. I had some of my best professional moments there. If you can’t make it, you can trust that I’ll take notes for you.

Tesla Motors – Keeping up with the “Cool Factor”

Tesla Model S

Tesla Model S

If there is one thing I’ll keep doing as the publisher of L.I.L, it will be to bring “cool” things to your attention.

I am enchanted with Tesla , especially because its cars are not gimmicks designed to draw “the herd” (a respectful reference to mass consumers). They definitely have my stamp of luxury particularly because of the brand’s exclusivity, quality production, unique heritage, and innovation. More importantly, this is a car you need to have if you plan on helping change the world.

I’ll say no more. Read this interview with George Blankenship, Tesla’s Vice President for Worldwide Sales and Ownership Experience.
I bet you’ll get goosebumps by just imagining the world that Tesla founder, Elon Musk, aims to develop.

Met up with an alum on the Fashion Walk of Fame in NYC

It’s unfortunate that this great designer isn’t alive today, but the world has gained so much from him. If you didn’t know, Perry Ellis got his business degree from The College of William and Mary (Williamsburg, VA). What a great beginning. The bar has been set.

Luxury, Retail, or Otherwise… Looks Count – Job Postings too.

Note: There’s a link to some jobs at the bottom of the post.

Last week, our Luxury and Retail Club had an event at the Mason School of Business. The event was titled “Looks Count – A Presentation on Professional Dress for Men and Women”. Here’s how we described the event: Continue reading →

#HBSRLGC – Day 2: Emerging Markets Panel

4/15/12 – After the keynote address from Max Azria, I went on to some of the panel sessions. The panel sessions are a little more intimate than the keynotes because you get to hear different perspectives on the same issues that concern retailers today. You’ll see competitors, collaborators, and disruptors in the same room. This year there were four panels and I attended two:

Emerging Markets – The panelists were:

  • Anya Ayoung Chee – Designer, Project Runway Winner
  • Kai Schoppen – CEO, Brandsclub Group
  • Malte Horeyseck – Co-Founder and Managing Director, Dafiti
  • Tikka Karpurthala – Chief Representative in Asia for Moet-Hennessy/Group Advisor Louis Vuitton, India

New Business Directions – The panelists were:

  • Anthony W. Campbell – EVP of Administration, Vice Chairman’s Office, Perry Ellis International
  • Julie Bull – Director of Investor Relations, Dillards
  • Mark Bonchek – SVP Communities and Networks, Sears Holdings
Here are the tweets to catch you up on what went on in the Emerging Markets panel.

Continue reading →

#HBSRLGC – Day 2: Max Azria

Two Crazy Guys - Max Azria (Founder, Designer, Chairman and CEO, BCBGMAXAZRIAGROUP) and Edmund Amoye (LuxRe Club, Mason School of Business)

On day two (Sunday 4/15/12) at the Harvard Business School Retail and Luxury Goods Conference (HBSRLGC), we kicked off the day with breakfast, which was not attended by yours truly.

I was having too much fun walking around Boston... literally.

However, my day was off to a a memorable start with the second keynote address by Max Azria – Founder, Designer, Chairman and CEO, BCBGMAXAZRIAGROUP. This is a man I have always admired for his perspective on fashion – and have respected for his vision with the Herve Leger brand. Meeting the man was something I wasn’t expecting and the HBSRLGC helped me do that. I tweeted so much at this conference that I’m just going to use my tweets document my experience. Enjoy. Continue reading →

HBSRLGC – Boston, MA: Day 1

So I was in Boston for the annual Harvard Business School Retail and Luxury Goods Conference (HBSRLGC). Yes, I know that’s a long acronym. I’ll document my days in Boston (4/14/12 to 4/15/12) with pictures and tweets (yes – tweets).

A Sculpture at Back Bay Station - by George Greennamyer, 1976

After coming out of the station I took this picture of the entrance to the Back Bay Station:

Right across the street from Back Bay Station is an iconic property – Copley Place. This was a good experience for me because just the day before I had the pleasure of conversing with Howard Elkus and Ken Himmel, famous architect and renowned developer respectively.

Copley Place consists of multiple connected buildings. Here is a picture of a pedestrian bridge over Stuart St.

NW Elevation of Copley Place

NW Entrance of Copley Place

Took the Orange Line from Back Bay to Downtown Crossing, transferred to the Red Line and went on to JFK/UMass where I stayed at the DT - Boston Bayside

Left the hotel and went to Harvard Square Station via the Red Line

Later in the evening around 6pm, I went on to the Sheraton Commander Hotel for a networking session and keynote address by Steven Kolb, CEO, The Council of Fashion Designers of America (CFDA). He set the conference off on a good tone discussing the role and history of the CFDA as well as its efforts to push intellectual property rights for designers in the US.



Visiting Boston for the 2012 Retail and Luxury Conference at Harvard Business School

Back Bay Station, Boston, MA - First stop off the train

Back Bay Station, Boston, MA – First stop off the train

So here I am in wonderful Boston for the Retail and Luxury Conference at HBS. It’s been a year since I’ve been back. I’ve had a wonderful time so far, traveling via the subway/rail system. I think I like it better than NYC’s subway system. Watch out for more posts (with pictures).

JCPenney’s New Retail Strategy Expected to Hurt Performance

Article Link – Penney’s Pricing Strategy takes a Toll on Sales

Ron Johnson’s bet on JCP’s new retail strategy will not come without its costs. Analysts on Wall Street are expecting JCP’s revenues to drop by “seven percent this fiscal year”. This is worse than the previously forecasted two percent drop because analysts believe “shoppers accustomed to seeing big discounts [will] go to rivals like Macy’s Inc.”. Same-store sales are expected to drop nine percent – lower than the four percent drop that was originally anticipated.

Penney’s new strategy is simple – three tiers:

  • “Everyday” prices that are 40% lower than what they were charging a year ago;
  • Month-long sales on select items; and
  • Clearance events during the first and third Friday of each month (to coincide with employee payroll distributions)

Though the street expects dire consequences for JCP’s stock in the short term, it also believes that Ron Johnson’s plan will pan out in the longer term by eliminating “unprofitable promotions and [improving] its profit margins overall”.

If successful, this will be a major change in retailing because suddenly the promotional activity will decrease and other retailers will also have to find ways to attract customers… but this is going to take time.

– Walter Loeb, New York-based retail consultant

JCP is expected to offer more details on its performance when it reports its quarterly earnings results in May.

My View: This is a long-term bet, not a strategy that will yield postive returns in the next six to 12 months. Ron Johnson is not trying to change his strategy – he is trying to change the rules of the retail game. His bet is riding on a revamp of the entire retail experience.

Disclaimer: I do not own, or plan to buy any JCP stock in the next 48 hours.

Bangladesh: The Next Hot Spot in Apparel Sourcing?

Here’s something for MBAs interested in the apparel sector. The industry is a global one with pieces of its value chain spread across a variety of regions and countries. McKinsey Quarterly is a great, FREE resource for MBA students watching the pulse of their target industries. Click on the picture on the left to see an executive summary of this issue.

Are Luxury Brands Recession Proof?

Credit for this post goes to Chase Harps, one of my MBA classmates.

I often find myself having to evangelize for the luxury industry, especially to people that may be skeptical of its necessity or long-term viability. For those people, I am posting a link to a new 2012 brand ranking report from Brand Finance. Based on its findings, the company issued a viewpoint on luxury brands. Entitled “Recession Fails to Dent Consumer Lust for Luxury Brands“, the article lists the following main points. Continue reading →

What Apple Can Teach You About Not Having To Compete On Price

I found this great article at www.fastcompany.com. The major take aways for businesses that do not want to compete on price are:

  1. Develop Powerful Branding – Effective and unique branding puts your product in a competitive space that has little to do with price, and more to do with being cool, trendy (or timeless), and of great quality.
  2. Strategic Marketing – This encompasses the four Ps of marketing and much more. In luxury marketing you need to be thinking about the four Es (exclusivity, emotion, engagement, and experience). While Apple won’t admit that they intentionally create product shortages in order to create a buzz, it is certainly part of the reason why customers are willing to pay huge premiums to have their products as soon as they are released.
  3. Excellent customer service – Customer service is something you can not afford to lack. From getting customer’s to try your products and services to keeping them loyal, customer service is the lynch pin that sets you appart from competitors.
  4. A product that doesn’t disappoint – All of the above won’t mean anything if you don’t have a stellar product. Take a page from companies like Apple and Patagonia who are committed first to making the best product possible.

If a product can’t live up to the expectations set by its marketing, it won’t be successful for the long term

Fair and Square at JCPenney

So early this morning, I got an email from JCPenney with the following message:

As you may know, Ron Jonhson (formerly of Apple and Target) now heads the retail giant that goes as far back as the era of shopping catalogs. In facing the huge challenge of transforming one of America’s most unloved retail brands, he’s definitely relying on  the many lessons he learned in his 30 years of retail experience.

Today, JCPenney is rolling out a revamped pricing structure and a simplified return policy. The company is moving to “an everyday low price model” by getting rid of coupons and ineffective sales promos. Drawing on what I have learned from Ron Hess in my Customer Experience Management class, the dimensions of pricing and returns most probably have the most impact on customer satisfaction at JCPenney (which drives customer loyalty and profitability in the service-profit chain).

Though pricing is a common complaint of most customers, Ron Johnson’s approach to simplifying this satisfaction component has strong justifications. By making JCPenney’s pricing less complex, Mr. Johnson is trying to eliminate the “buyer’s remorse” felt by customers who purchase items at full price – only to find them heavily discounted in one of the 500+ yearly sales promotions at the company. Below is an excerpt from an interview with the JCP CEO on the retailer’s new policies. It was conducted by Anne D’Innocenzio of The Associated Press.

Q: How did you come up with the new pricing strategy?

A: Pricing is actually a pretty simple and straight forward thing. Customers will not pay literally a penny more than the true value of the product. And as I have been watching the department stores for the past decade, I have been struck by the extraordinary amount of promotional activity, which to me, didn’t feel like it was appropriate for a department store. My instinct was that it wasn’t a good thing.

Q: Won’t shoppers be turned off because they won’t see the big markdowns?

A: I wouldn’t assume they like the pricing strategy. I think they’re insulted by it.

Q: Who are you targeting?

A: We are going after all Americans. We would like to be the store for everyone.

Q: What are your plans to make the shopping experience more exciting?

A: We are going to make the store a place people love to come — just to come. Because they can get support before they’re ready to buy. They can get great support when they want to buy and they can come in after they buy. We’ll transform the buying experience not unlike what we did at Apple.

Q: When will we start to see improvements?

A: You’ll start to see the experience change month by month. Everyone thinks it’s an overnight success but it never is. I was at Apple from 2000 to 2011, but it wasn’t until 2004 that the iPod became an important part of people’s lives. It wasn’t until 2007 that Apple reinvented the phone. It wasn’t until 2009 that Apple launched the iPad. But we look at it today and we feel Apple had always been beloved. It took time and this will take time as well.

Q: What ideals have you embraced from Steve Jobs?

A: The importance of doing everything you do to your very best. And that the journey is the reward. If you do things well one at a time, you end up in a really good place. Don’t get ahead of yourself. Control the things you can.

Q: Other than Apple, which stores do you admire?

A: I admire lots of stores. Whole Foods is a great store. I just like their passion for food. It shows up in everything they do. It shows up in their packaging, their presentation and their employees. Starbucks. It truly has created a community. As I travel around the world, I just know that if I go to Starbucks I will have a great experience.