The Sweet Science of Designer Deodorant

The Wall Street Journal: “Brooklyn, N.Y.-based Soapwalla charges $14 for a 2-ounce jar of deodorant cream. It has the consistency of buttercream frosting … male customers have said they prefer it over a waxy stick, which snags and pulls hair. Cream also makes it easier to apply to other places on the body, such as the feet.”

“Prices for these offerings are reaching new heights, well beyond the old standard of two or three dollars a stick. Sprays and stronger stick offerings, known as clinical strength, come with $5 to $10 price tags. Natural deodorant often costs $15 or more. Tom Ford has two sticks, from his Oud Wood and Neroli Portofino fragrance lines, priced at $52 a piece … … A spokeswoman for Tom Ford Beauty … says the brand’s $52-per-stick price tag reflects the effort it takes to translate a complex, premium fragrance into a deodorant.”

Meanwhile: “Thirty percent of women reapply their deodorant during the day, according to Procter & Gamble Co., maker of Secret, Old Spice and Gillette; 20% of women say they keep it in their car, 25% in a purse and 30% at work. It all stems from a sneaking suspicion that deodorant could work better or has failed altogether. Executives at personal-care companies acknowledge that could be the case, but say many times a shopper has bought the wrong product or is mistaking a weak fragrance for an ineffective deodorant.

“Now more women buy Old Spice, a line typically targeting men, because of how strong its scent is … It is especially popular with women headed for the gym.”

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Luxury: It’s Not What It Used To Be

USA Today: “People around the world who usually flock to luxury goods are worried about events that threaten global stability including terrorism fears, the United Kingdom’s withdrawal from the European Union and China’s slowdown. At the same time, luxury retailers are losing share to online sellers, the same issue bedeviling mainstream store chains. They’re also suffering at the hands of discounters and fast-fashion luxury lookalikes.”

Milton Pedraza, CEO of The Luxury Institute, comments: “The story with luxury is it’s just not as a exclusive and it doesn’t justify the price like it used to. Too many of them are discounting and there’s not enough consumer demand.”

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Airlines Opt for a ‘Two-Cabin’ Experience

Quartz: “Airlines are getting rid of the most coveted seats on their aircrafts, favoring souped-up versions of business class in the hope that high-paying customers won’t be able to tell the difference.” For Example: “United Airlines earlier this month unveiled its new business-class service, United Polaris, which will include rows of sleeping pods instead of seats. The company says it is ‘phasing out’ the first-class cabin in favor of a ‘a two-cabin experience for international travel’ … The trend is part of airlines’ battle for revenue, particularly high-paying customers.”

Analyst Jonathan Kletzel comments: “Once you’re lying flat and you’ve got your own personal screen and you’re getting a nice dinner, the distinction comes down to nicer wines, plusher pillow … That’s where you’re at.”

“For the rest of us, there’s premium economy, airlines’ latest pitch to entice coach travelers to pay a premium for a little bit extra legroom, early boarding, and other perks.”

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Vegan Seats: What’s Next In Luxury Cars?

The Wall Street Journal: “Interior styling, of which seating is the cornerstone, is the second most cited reason why a shopper won’t buy a car—beating out a vehicle’s dependability rating … with rising consumer expectations and auto-maker competition, the once lowly seat is now getting some much needed attention … Some seats offer “lane-departure warning systems that shake a corner of the seat, heating and cooling options, and, in some cases, a massage feature.”

“Cars 20 years ago were all about horsepower, tire width or how fast you could go from zero to 60,” says Ray Scott, of Lear Corp., a seat designer. “Now it’s all about the driving experience, and seats are where the person is spending most of the time.”

“Lear has developed technology that turns the seat into a biometrics scanner with the ability to monitor the occupant’s heart rate and display it on the center entertainment screen.” Tesla “is offering vegan-style seating in its Model X and the new Model 3 SUV due out next year. The option involves seats covered with synthetic leather.”

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Treasure Hunt: The Joy is in the Journey

The Wall Street Journal: “The internet isn’t just a way to speed up the shopping experience; it is a tool to draw it out. Consumers enjoy the anticipation of a big-ticket item, in contrast to the quick fix that comes from an impulse purchase at an inexpensive, of-the-moment fashion chain … The result of all this due diligence: Shoppers are feeling much more satisfied with their purchases.”

“Stylitics, a fashion technology and analytics company, partnered with market research firm NPD Group to look at this behavior. Handbags are a natural fit for this thoughtful approach, as women seek to combine fashion with function. The study found roughly four in 10 women ages 18 to 34 said they started thinking about their most recent handbag purchase more than a month in advance. Six in 10 said browsing online stores was a major influencer in their handbag shopping.”

“Once shoppers go through the drawn-out process and make up their minds, they are happier. Handbag return rates at luxury online retailer Net-a-Porter are among the lowest across the site.”

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Project Pinnacle: Caddy Tests Virtual ‘Test Drive’

Wall Street Journal: “Buyers walking into a Cadillac dealer in the near future could find an interesting thing on the car lot: nothing … Cadillac President Johan de Nysschen will this month begin looking for commitments from some store owners willing to set up showrooms where buyers can get a car serviced or learn about products via virtual reality headsets without getting behind the wheel. Driving off immediately with a new vehicle will be impossible because these stores won’t have inventory.”

“Virtual stores are a part of ‘Project Pinnacle,’ an extensive retail-strategy overhaul by Mr. de Nysschen,” who “is revamping the way the company compensates its dealers by rewarding them less on the basis of vehicles sold … and more on the way those dealers mimic better performing luxury brands with perks such as free roadside assistance. Those who do adopt the virtual model will have tester cars on site, which can be loaned to people getting their car serviced or used in test drives.”

“Auto makers have long flooded dealer lots for two reasons: car companies book revenue on production volumes, not retail sales. An overabundance of output can boost revenue, and the problem can be taken care of later via discounts or production cuts. Car buyers are also used to having ample selection to choose from. Mr. De Nysschen says this isn’t the case with luxury car buyers. He said: ‘I don’t think Hermès or Rolex are famous because they have a sale every month. They have brand cachet’.”

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Cadillac House: The Car as a Retail Experience

Bloomberg: “Cadillac House is a coffee shop/retail boutique with an art gallery twist and even a bespoke scent … The 12,000-square-foot space is located on the ground floor of the company’s New York office and will open to the public on June 2 … the point of this new space is not to sell cars … No, this time Caddy has convinced some well-respected fashion-y names to make it more of a destination: Visionaire, the creative firm and magazine, will curate an exhibit at Cadillac House each quarter; the fashion brand Timo Weiland will sell clothing in a pop-up shop; 12.29, which scented shows for Rodarte and Lady Gaga, is concocting a signature ‘Cadillac’ fragrance for the room. New York’s Joe Coffee is providing the beans.”

“We have tried to tell people what you’re supposed to feel from the Cadillac brand,” said Melody Lee, who is Cadillac’s brand director. “But what we hadn’t quite fully established was an environment that you could walk into.”

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Shah & Shah: A ‘Speakeasy-Style’ Jewelry Store

The Washington Post: Colin Shah “has put his family’s jewelry trade in a time machine and turned it back to the speakeasy approach that great-grandfather Izzy used when he ran it in the 1930s. There is no storefront. No marketing. No signs. Shah & Shah boutique lies behind a door on the sixth floor of a downtown office building. You push a doorbell to get buzzed inside.”

“Most customers are referred, which means they come in more positive than fearful … A lot of hustle is involved. Word of mouth means socializing with clients, talking to people, attending parties. Last week, he held an open house with champagne and chocolates for Mother’s Day … Everything is a throwback to the days of personalized jewelry sales. The walls include black-and-white photos of the family’s shops from the past. There is a photo of a young Jack Benny.”

“Shah wants every touch to hint at elegance. He plops down a beautiful silver candy dish filled with Edward Marc dark-chocolate nonpareils. He follows with a bottle of Hildon water, which looks like glass artwork that might be for sale. Most of his business is in creating jewelry for the 2,500 customers on his client list … Shah did more than $2.3 million in sales last year … Profitability can run well into the middle six figures.”

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Air Rage: It’s a First-Class Problem

Quartz: “Researchers from the University of Toronto’s Rotman School of Management and Harvard Business School showed that incidents of air rage in economy class were significantly higher when planes had a first class cabin.”

“Their models showed that rage was nearly four times as likely on flights with a first class cabin than on those without. Controlling for factors like seat pitch and width, the researchers concluded that having first class increased the odds of passenger problems amounting to an additional 9.5-hour delay.”

“In addition, the researchers showed that when people had to walk through first class to get to their seats, rage among first class passengers themselves was nearly 12 times as likely as when people boarded from the middle. When people in economy class had to walk through first class, rage was about twice as high among the economy class passengers.”

“The study shows correlation, not causation, so the researchers can’t be sure that simply the sight of wealth makes people more irritable. There are other factors that could contribute to air irritability: Larger flights with multiple cabins could correlate with longer board times and more unwieldy carry-on storage, which could both make people more likely to act out.”

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Luxury Today: Big Data & The Rising Velvet Rope

The New York Times: “Today, ever greater resources are being invested in winning market share at the very top of the pyramid, sometimes at the cost of diminished service for the rest of the public. While middle-class incomes are stagnating, the period since the end of the Great Recession has been a boom time for the very rich and the businesses that cater to them.”

“In many ways, the rise of the velvet rope reverses the great democratization of travel and leisure, and other elements of American life, in the post-World War II era. As the Jet Set gave way to budget airlines, in places like airports and theme parks even the wealthiest often rubbed shoulders with hoi polloi … What is new is just how far big American companies are now willing to go to pamper the biggest spenders.”

“Many companies … have discovered that offering ordinary customers just a whiff of the rarefied air can actually enhance the bottom line, even if it stirs a certain amount of envy and resentment … And with the rise of the Internet and big data, companies can pinpoint and favor these wealthiest customers in ways unimaginable even a decade ago.”

“For companies trying to entice moneyed customers, that means identifying and anticipating what they want … But for people at the lower end of the market, as well as in the middle, plenty of friction remains. The trade-off is that the amount of hassle is precisely calibrated to just how much you are willing to pay.”

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