Philz Coffee: All You Need Is The Secret Ingredient

Business Insider: San Francisco-base Philz Coffee “has the cash to fuel an expansion and a key ingredient to become the next Blue Bottle: individuality. It looks nothing like a cookie-cutter coffee chain. At Philz, a diverse set of customers sit around mismatched pieces of furniture and drink coffee brewed one cup at time. Employees are encouraged to express their personality through interactions with customers … The venture-backed coffee chain started from humble beginnings. Phil, who was born in Palestine and grew up in the Bay Area, ran a corner bodega in a gritty neighborhood.”

“Today, the original Philz location on 24th Street still looks like someone’s grandma’s house. Couches sink like they’ve been lived in, and floor-to-ceiling murals spark creativity … Unlike coffee chains that offer only light, medium, and dark roasts, Philz boasts more than 20 vibrant blends with names like Canopy of Heaven, Philharmonic, and Sooo Good. You won’t find any lattes or over-the-top blended drinks — like you might find at Starbucks — on the menu. But flavor descriptions like “cardamom, maple, earth” or “toast, berry, vanilla” have customers drooling.”

“Baristas brew one cup at a time using a pour-over method, which allows them to make each drink exactly how the customer likes it … Two to three minutes later, a barista calls the customer by name and invites them to take a sip. Baristas say they’re happy to remake the drink until the guest is 100% satisfied … According to a Philz employee, the secret ingredient in every cup is ‘love’ … The company aims to have more than 50 locations across four major metropolitan markets by early next year. There are shops in Colorado and Boston in the pipeline.”

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Delta CEO: Technology Builds Relationships

Business Insider: “Some airlines see technology as a potential money maker by turning their planes into flying e-commerce platforms with hundreds of captive customers. Delta Airlines CEO Ed Bastian said he isn’t interested in going down that route. Instead, he wants technology to help his airline better understand and interact with its customers. In turn, improving the flying experience and strengthening Delta’s core business.”

He explains: “We are in the business of building relationships and our technology allows us to build intimate relationships with 180 million customers a year and you can only do that through technology.”

“Bastian’s big tech goal in 2018 is what he calls ‘building a single view of the customer.’ That means unifying all of Delta’s various customer databases to create a more holistic view of and a better understanding of the people who fly with the airline.” He comments: “The real opportunity for us is to get a better view of who you are so that we can better serve you. We can get you what you need before you even realize you need it and be able to better take care of your needs not just from a sales standpoint, but more importantly, from an experience standpoint.”

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KitKat: Just Plain Weird in Japan

Los Angeles Times: “Two years ago, KitKat’s marketing manager in Japan won an internal corporate award. His prize: a golden trophy shaped like one of the iconic chocolate bars. Today, the manager, Ryoji Maki, doesn’t remember why he won the award. But he’s immensely proud of what it inspired. ‘That’s how I came up with creating a gold leaf-covered KitKat,’ he said. Before long, the chocolate wafer bars were on sale in Tokyo for about $18. ‘They were like an edible golden trophy’.”

“Maki’s creation joined a long, and ever growing, list of distinctive, fun or just plain weird KitKats found only in Japan. The country is a KitKat-lover’s paradise, with so many unique varieties — an estimated 300 — that some travelers visit Japan just to try them. Many flavors are alien to the American palate, and they go far beyond Japanese staples — such as sake, wasabi and green tea — and into uncharted territory: ‘French salt,’ ‘college tater’ and ‘Muscat of Alexandria’.”

“The candy with the European pedigree went on to conquer Japan thanks to constant invention — blueberry cheesecake, cherry blossom and melon — and a linguistic coincidence that makes KitKats here a harbinger of good luck … the chocolate bar’s English name is a cognate — it sounds like kitto kattsu, which means ‘you will surely win,’ a sort of good luck blessing. Nestle leveraged the association into huge sales.”

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Some Retailers Try Simplified Pricing

The Wall Street Journal: “Retailers have a gift for discount-obsessed holiday shoppers: simpler pricing … Kohl’s has been testing a ‘Your Price’ feature that shows the final price after all discounts … For example, a Disney Princess Palace, regularly priced at $79.99, was on sale on Kohl’s website earlier this month for $54.99 and eligible for an extra 25% off. The “Your Price” was $41.24.”

“Like Kohl’s, Penney this year started showing online shoppers the sale price net of all discounts on the product page and increasingly has been advertising sales with final dollar amounts, rather than percentage discounts … The retailer also has been posting ‘sale conversion charts,’ intended to help shoppers figure out prices … Christine Dunne, of the Bronx, N.Y., said she noticed the changes at the Penney store near her home.” She comments: “It makes shopping so much easier. In the past, I’d get to the register and realize the price I’d calculated in my head was wrong.”

“Not all retailers have simplified their pricing, and marketing experts say that is by design. ‘Multiple mental deductions based on promotions can result in consumers perceiving that their costs are lower than they actually are, which can increase spending,’ said Cynthia Cryder, an associate professor of marketing at Washington University in St. Louis.”

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Fingerlings: Too Much Monkey Business?

The New York Times: The Fingerling is “a five-inch monkey that grips your finger with its legs and arms, as it babbles, blows kisses and blinks its eyes. Cradle a Fingerling in your hand and it drifts off to sleep. Press the Fingerling’s head and it passes gas. Created by the Canadian company WowWee, the Fingerling has been anointed one of this year’s hot toys for the holidays, a designation that most toymakers only dream of achieving.”

“How the Fingerling reached this tipping point — when suddenly millions of children cannot do without a $15 farting monkey — is the story of a promising idea’s going viral on social media, a large retailer’s savvy pricing strategy and the science of managing scarcity … This past week, Fingerlings were out of stock on Walmart’s website, while parents complained that they had been snookered into buying counterfeits … WowWee says it did not intentionally create the shortage. But whether by design or happenstance, there is no question that scarcity fuels a toy’s mystique.”

“WowWee had originally planned on selling the Fingerling for $20, but the giant retailer was insistent: About $15 was the magic number … When Fingerlings hit stores across the United States in August, Maya Vallee-Wagner, 7, was overcome with emotion … Her father … shot a video of his daughter’s reaction in the toy aisle of a local Target and sent it to WowWee … (which) posted it on the company’s Facebook page, and it went viral … The video was a marketing coup, just as WowWee was launching its social media push — an effort that in many ways resembled the rollout of a Hollywood movie. Gone are the days when a toy company could simply blitz Saturday morning cartoons with ads.”

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A Factory for All The Cheese in China

The Wall Street Journal: “Halfway through his meal at the new Cheesecake Factory in Hong Kong, which opened earlier this year, Ken Wu knew he had to come up with a survival plan to get through the rest of dinner.The amount of food—including nachos, pasta, a pork chop, pizza and fried dishes—was overwhelming.”

“‘Feta cheese, Parmesan cheese, cheddar cheese…I know it’s called The Cheesecake Factory but never could we have imagined how much cheese was in everything!’ said Una Wong, who dined with Mr. Wu,” who “likened the sensation to Sichuan peppercorn, the numbing and spicy flavoring used in Western China that obliterates the taste of anything else.”

“First-timers to the chain say they were attracted by photos posted by online reviewers and tales of American excess relayed by friends and family abroad. After the meal, however, their enthusiasm sometimes diminishes. Mr. Wu … offered this verdict: ‘I don’t think I can have cheese for another three months, at least’.”

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Merry ModelXmas!

Boing Boing: People who drive Tesla’s Model X have a cool ‘easter egg’ feature built right into their vehicle: a holiday music and light show set to the tune of Trans-Siberian Orchestra’s “Wizards In Winter”! When activated, this all-electric luxury vehicle will display a synchronized show using the car’s headlights, turn signals, and falcon wings.”

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What Does Luxury E-Tail Look Like?

The New York Times: “High-end e-commerce remains a bright spot in the shopping landscape: flooded with more cash than ever before and with bubblelike sky-high valuations to boot. It’s a world dominated by two behemoth competitors … Yoox Net-a-Porter, the largest luxury e-tailer by sales, is one of them. It owns the e-tailers Net-a-Porter, the Outnet, Mr Porter and Yoox; it also operates the e-commerce sites for over 30 luxury brands including Stella McCartney, Dolce & Gabbana and Chloé.”

“Farfetch, the other big name, is an online marketplace for 500 independent luxury boutiques and 200 brands as well as the owner of the bricks-and-mortar store Browns in London … Little wonder that during the past year barely a month went by without Yoox Net-a-Porter or Farfetch unveiling a snazzy new strategy or service in a thinly veiled bid to outmaneuver the other. In April, for example, Yoox Net-a-Porter introduced ‘You Try, We Wait’: a same-day try-on-and-wait premium delivery service with at-home shopping consultations. Six days later, Farfetch started a ‘store-to-door service’ in 90 minutes with Gucci in 10 cities worldwide.”

“Then Farfetch revealed a suite of technologies based on responding to consumers in the ‘Store of the Future.’ Yoox Net-a-Porter promptly responded with ‘Next Era’: a partnership with brands that debuted with Valentino giving customers access to Valentino products wherever they are, and however they want them.”

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What’s Next in Luxury Ecommerce?

According to The New York Times, here are three “next wave” luxury e-retailers: “Secondhand luxury (often known as the ‘recommerce market’) is fast becoming big business. The RealReal, an online marketplace that sells pre-owned and authenticated luxury items, was founded by the former Pets.com C.E.O. Julie Wainwright in 2011 and is expected to generate $500 million in revenue for 2017. It has raised $173 million in funding, and last month it opened its first store, in SoHo.”

Depop: “A mobile marketplace that says it has 350,000 active daily users, Depop has been described as “part Instagram and part eBay.” It is particularly popular with teenagers, who like the way users can personalize their digital storefronts.”

The Modist: “The so-called modest fashion market is booming, with the global Muslim clothing market forecast to be worth $368 billion by 2021, according to the latest Global Islamic Economy report. The Modist, poised to take advantage of the wave, started earlier this year.”

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Late & Great: Johnny Hallyday

“He was an idol, in other words, blasphemy incarnate. His death is that of a god who was in fact mortal. People say they can’t believe he is dead, simply because their belief in him, their faith in him, will not die. Many people never believed that Elvis died. The same will happen with Johnny.” – French philosopher Raphaël Enthoven on the phenomenon that was Johnny Hallyday (from The New York Times)

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