Branding The Brandless Brand

Business Insider: Brandless, “which sells food and consumable essentials all for $3 and pitched itself as the “Procter & Gamble for millennials,” first launched in July … The brand is now moving into the physical world with a pop-launching in May, called ‘Popup with a Purpose.’ It will be a ‘three-dimensional experience of the values of what Brandless is really about,’ according to CEO and co-founder Tina Sharkey. The Brandless brand will be on display, but no products will be for sale. Instead, the 3,500 square foot location on Melrose Avenue in Los Angeles will be offering samples, and opportunities to “live, learn, and love with intention,” according to a press release.”

“The pop-up will be interactive and there will be panels, workshops, and talks by experts in the fields associated with the areas of food and wellness that Brandless has staked out. Along with the pop-up, Brandless is also launching a lifestyle blog that will be focused on educating consumers of the claimed benefits of, for example, ‘tree-free toilet paper’.”

“Sharkey sees Brandless as filling gaps where the ease of shipping and low point of entry can allow people to try new things — like gluten-free baking mix — that would otherwise be either too expensive or just hard to find locally in some areas … The B.more membership program, which previously only lowered the free shipping order threshold to $48 dollars, now makes all orders ship free. The company has since started focusing on offering B.more to repeat Brandless customers.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Retail Politics: Is Fast Fashion Tone Deaf?

The New York Times: “Every once in a while, tucked into the stream of speedily made garments rushed into stores, designs with shockingly bad taste stand out: a shirt comparing women to dogs at Topman, symbols of the Holocaust on a top at Zara … Retail experts blame a heated competitive environment, where companies, many of them based in Europe, are spread thin trying to cater to a global customer base that is easily bored, is extremely demanding and can buy almost anything via e-commerce. Many brands develop a cavalier attitude: Churn out products now, ask forgiveness later.”

“Earlier this year, H&M, one of the largest clothing retailers in the world … was taken to task over a children’s hoodie emblazoned with the phrase ‘coolest monkey in the jungle’ and modeled in marketing materials by a young black boy. The description, which has been used to dehumanize black people, set off protests at South African stores that left mannequins toppled and racks overturned. In the aftermath, H&M chose a lawyer and company insider, Annie Wu, to lead a new four-person team at its Stockholm headquarters focused on global diversity and inclusiveness.” She comments: “We didn’t recognize that in this now new age of transparency, what the brand stands for is super important to people.”

“Fast fashion companies, which specialize in low-priced, quickly produced clothing and have grown faster than the apparel industry as a whole for years, are under pressure to be more prolific and provocative as they sell across more borders. H&M, which added 479 stores last year, now has more than 4,000 stores in dozens of countries … retail experts said that much of the creative process takes place in and around its European home office, far from many of its markets … Fast fashion has produced tone-deaf products for years, passing them off as a rounding error given the enormous volume of items the companies generate each year … Several companies have pledged to diversify hiring, retool corporate guidelines and initiate other measures to prevent mistakes from going out the door.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Eateries Experiment with Split-Menu Pricing

The Wall Street Journal: “When the Michelin-starred, Paris-based chef Joël Robuchon opened his high-end L’Atelier de Joël Robuchon restaurant in the Meatpacking District last November, he had it share space with his “elegant, yet approachable” Le Grill de Joël Robuchon concept. At the former, a main course can cost as much as $135 and tasting menus run $145 to $265. At the latter, there is a three-course prix-fixe menu for $65. All prices include tipping.”

“Agern, the Nordic-inspired restaurant in Grand Central Terminal that also offers $100-plus tasting menus, has taken another approach to pricing. In recent weeks, it has expanded its a la carte offerings—even going so far as to add a burger and chicken wings, albeit in gourmet-minded versions. The $26 burger, for example, is made with a secret-spice mix, according to chef Gunnar Gíslason, and is served on a bun seasoned with smoked salt and vegetable ‘ash’.”

“Ultimately, each restaurant may have its individual reasons for adopting lower-price models and approaches. But if there is a common thread, it is the increased emphasis on casual dining in our culinary culture, says Arlene Spiegel, a New York-based hospitality consultant. Today’s diner ‘doesn’t want the restaurant to tell them what to wear or how much to spend,’ she says. ‘They want to feel welcome whether they are in jeans or tuxedos’.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Airport Malls: The Call of Duty-Free

The Wall Street Journal: “In the age of online shopping, retailers are finding that airports can take some of the sting out of declining mall traffic. Travelers have time to kill and money to spend when they’re captive inside airport security. Major airports around the world, from Singapore to Dubai, London to Beijing, have essentially become shopping malls with gates.”

“And the U.S. is finally starting to catch up. Just as they have upgraded restaurants and basic amenities like power outlets, U.S. airports are finding they need to improve duty-free stores, which have become a necessity for many world travelers who routinely stock up on perfume, cosmetics, alcohol and chocolate coming home from trips … Airports like duty-free shops because they get a cut of the revenue; luxury-goods makers like the chance to interact in person with shoppers; and customers like the convenience, savings and opportunity for capricious purchases.”

“Moët Hennessy, the Paris-based maker of Champagne and cognac, has a boutique in the Dallas duty-free store where it does tastings of rare editions—a spot of cognac before boarding. The unit of luxury-goods conglomerate LVMH sees airport retail as a chance to educate consumers about its brand … The store has no doors; travelers just wander through. Brands have their own areas, creating a boutique feel. There is some seating upstairs on an open, second level designed for events such as tastings, entertainment and parties that will lure curious passengers.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Fake Discounts: The Price You Pay

The Washington Post: “Washington Consumers’ Checkbook’s researchers tracked prices of big-ticket items sold at major retailers for 10 months and found disturbing pricing practices at 17 of the 19 studied. At these stores, many sale prices — even those that advertise big savings — are in place more than half the time. And at some stores, the ‘sales’ never end: For several chains, Checkbook found that most items it tracked were offered at a discount every week or almost every week.”

“Although Checkbook found that almost all the stores it checked often advertise misleading sales, some have more egregious pricing practices than others. For J.C. Penney, Kmart, Kohl’s, Macy’s and Sears, the items tracked were offered at sale prices more than 75 percent of the time. For example, at Neiman Marcus and Sears, 10 of the items tracked at both retailers were on sale every week for 10 months.”

“But nearly all the stores at which Checkbook shopped are guilty of some sales-price chicanery — among them, only Costco and Bed Bath & Beyond consistently conducted legitimate sales, meaning any discounts were in place less than half the time. The other 17 retailers as a group marked their items ‘on sale’ 57 percent of the time.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Airplane Economics: Nickels & Dimes

The Wall Street Journal: “Profit per passenger at the seven largest U.S. airlines averaged $19.65 over the past four years—record-setting profitable years for airlines. In 2017, it stood at $17.75, based on airline earnings reports. In truth, airlines now cover their costs with tickets and get their profits from baggage fees, seat fees, reservation-change fees and just about all the other nickel-and-diming that aggravates customers. You might also call those extra 12 to 15 passengers now crammed onto each flight ‘Andrew Jackson’ for the profit they bring.”

“Given the $20-per-passenger haul ($40 round-trip), it’s easy to see why airlines are so intent on cramming in more seats, even when they know travelers hate the lack of space and complain bitterly about shrunken bathrooms, slim seat padding and skinny rows … Low-fare passengers shoehorned into the back of the plane may not even be covering what it costs to transport them. But they scored a low fare because the airline was concerned it might not fill all the seats on a particular flight, and some fare is better than no fare.”

“Among the big U.S. airlines, Southwest had the largest net profit margin last year, at 16.5%. Southwest continues to defy conventional airline wisdom. It doesn’t charge baggage fees; instead, it believes it attracts more passengers to each flight because many want to avoid the baggage fees charged by competitors.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Burger Serf: How Many Whoppers Per Second?

The Verge: A new Burger King ad explains “the concept of net neutrality with a stunt that showed what it would be like to have paid prioritization in a burger joint. In the ad, actors playing Burger King employees taunt ‘actual guests’ by making them wait for absurd amounts of time to receive their food — unless they pay huge tolls to get it quickly.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Hot Chocolate: Lap Up Luxury

The Wall Street Journal: “Gotham Bar and Grill is celebrated for its fancy fare, from foie gras to Dover sole. Starting this weekend, the Michelin-starred restaurant will spotlight a childhood treat: hot chocolate. The Manhattan restaurant will offer a $14 cup of steaming cocoa made with a chocolate sourced from Costa Rica … Dozens of restaurants, bakeries and chocolate shops throughout New York City are offering gourmet versions of hot chocolate. And they say they are seeing strong demand.”

“At Tetsu, the new Tribeca restaurant from sushi chef Masa Takayama of Masa fame, the $8 hot chocolate is flavored with a spices, including cardamom, cloves and star anise, and topped with a ‘toasted rice’ whipped cream. Customers can add a shot of exotic booze—chili-pepper liqueur, anyone?—for $4-$6.”

“By most accounts, the current New York City craze for gourmet hot chocolate was sparked by City Bakery, a fixture in the Union Square area that began offering a high-end version of the beverage when it opened in the early ‘90s, at the then seemingly outrageous price of $2.50 a cup … Restaurant-industry insiders and observers say the hot-chocolate trend speaks to a growing fascination with retro comfort foods done with a contemporary nod: Think artisanal mac ‘n’ cheese. It also dovetails with the gourmet-coffee movement that shows no signs of stopping.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Adidas Kicks are a Ticket to Ride

City Lab: “Starting January 16, Berlin transit authority BVG will release its own limited edition line of sneakers, a project that’s the first of its kind anywhere in the world. A collaboration with Adidas Originals, the sneakers’ tie-in with the subway will be immediately apparent to any Berliner: the heel counters feature the unmistakable seat upholstery pattern featured on the city’s public transit fleet.”

“The sneaker’s tongue will include a feature that’s arguably more striking—a fabric version of the annual BVG season ticket. That means the wearer gets free travel on subways, trams, buses, and ferries anywhere within Berlin public transit zones A and B— which cover almost all of the city—from January 31st to the end of the year.”

“Then there’s the price, which is a snip at €180 ($215) a pair. That makes them more expensive than the average sneaker, but much cheaper than a traditional annual transit pass, currently €728 ($869) for the same zones.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail