Quote of the Day: Ildiko Szalai

“Traditionally, men’s path to purchase has been more linear than women’s, adopting a more utilitarian approach, considering all options rationally and weighing up alternatives based on price and quality. As men become more concerned about how they look, what they wear and products they use, their decision-making is beginning to imitate women’s.” ~ Ildiko Szalai, senior analyst of Beauty and Personal Care, Euromonitor, quoted in The Wall Street Journal.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Quote of the Day: Benjamin Friedman

“On the whole, the problem with new books is that there’s a list price set by the publisher and a discount price that’s also set by the publisher. So, as a new bookseller, you have no control over what the book sells for or what you pay for it. With used books, if you’re smart, you find ways to get them cheap, and you decide what you price them at.”

“As a general rule, on any book, a used bookseller is probably making twice as much profit as a new bookseller. And that’s the difference between making it and not making it, because the profit margins on new books are razor-thin. At a used bookstore, no one is getting rich, but you can make enough to stay alive.” – Benjamin Friedman, co-founder, Topos Bookstore Café, as quoted by The Awl.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Whole Foods: New Limits on Local Store Autonomy

The Wall Street Journal: “Whole Foods is shifting more responsibility for buying packaged foods, detergents and other nonperishable items for the more than 430 stores to its Austin, Texas, headquarters. It is deploying software to simplify labor-intensive tasks like scheduling staff and replenishing shelves … The measures are part of a broader push to beat back competition from retailers such as Kroger Co. and Costco Wholesale Corp. that have expanded their range of natural and organic products, and frequently offer them at lower prices.”

Co-CEO John Mackey: “We want to evolve the structure in such a way that we take out redundancy and waste, and at the same time though, we’re not diminishing the culture, the empowerment efforts that make Whole Foods Market special.”

“The relative autonomy Whole Foods has long granted its stores and regional units—now 12—reflects a bedrock principle of Mr. Mackey, who helped open the first Whole Foods in 1980 … The model worked well for Whole Foods for years as it grew rapidly and established itself as the leading retailer of natural and organic groceries … But the need to offer more competitive prices is stepping up the pressure for greater efficiency.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Starbucks Gallery & Café Features New Artists

The Art Newspaper: “Starbucks has started selling art from a new coffee bar in Chelsea … with an exhibition of paintings and drawings by the young US artist Robert Otto Epstein, each of which was on sale for between $1,000 and $3,000 … A spokeswoman for Starbucks described the initiative as a ‘pilot programme’ and declined to give any more details on whether the company plans to expand its sales of art. She added that the company will commission ’emerging artists to make site-specific works—mostly murals—or to help us build a catalogue of works for customers to enjoy and discover through display in our cafes around the world.'”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The Future of Shopping May Be Underground

Tech Insider: Garden Santa Fe, a 7-story-deep underground shopping mall in Mexico City, is a peculiar hybrid of basic infrastructure needs and a re-envisioning of contemporary retail. At a time when urban real estate is a precious commodity, going underground might just be the future of shopping … The Garden Santa Fe Mall has … circular courtyards, complete with live trees at the bottom and second level of the mall, providing a release from what would otherwise be a claustrophobic environment.”

“The presence of three full story glass atriums essentially brings the outdoors to the underground … The entire building is buried 7 stories deep, making heating and cooling much more energy efficient. Overall, the mall uses 60% of the energy of a comparable retail space. An extensive rain collection system and onsite grey water treatment and water reuse system make a similar impact in water consumption.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Ikea Reinvents Its Dining Experience

The Washington Post: “While for decades it has been part of the Ikea experience to get your new couch with a side of Swedish meatballs, Ikea’s U.S. president Lars Petersson said in a recent interview that ‘Ikea food is becoming a core business’ for the privately-held, Sweden-based company.”

“That’s why all 41 of its stateside stores are getting restaurant makeover in the next several months … the goal is to create three zones for different types of diners. One area will be outfitted with high tables and barstools suited for scarfing down a quick bite. A second will aim to be family-friendly, with activities for kids and tables for their parents to dine nearby. The third area they call ‘Fika,’ which is a Swedish word for a coffee break that involves socializing.”

“It makes sense that Ikea is investing in its food business at this particular moment: In 2015, the Commerce Department reported that restaurants saw 8.1 percent sales growth, even as the broader retail industry saw an increase of just 2.1 percent and as home furnishings stores posted a 5.8 percent increase. There’s clearly momentum in the dining category, and perhaps a fresher look and menu can help Ikea get a piece of that.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Kola House: Pepsi Generates a New Experience

“Known for its beverages, Pepsi is now moving into the restaurant business,” The New York Times reports. “The 5,000-square-foot space — on the same block as Milk Studios in Chelsea … will become Kola House, a restaurant-bar-event space that the company hopes will be both social hub and testing ground for new products.”

Kola House “will not be plastered with the Pepsi logo or filled with Pepsi products. Everything at Kola House will be centered on the kola nut, a bitter fruit that contains caffeine and gives cola beverages their name. Essentially, Pepsi is trying to market its product without marketing its product.”

Pepsi design chief Mauro Porcini: “Consumers will love your brand because your brand enables you to have the experience, but they don’t want to have the brand in their face. It needs to be very subtle, elegant, sophisticated.”

Pepsi marketing chief Seth Kaufman: “We are in a time where we have to transform how we connect with and engage consumers. If brands don’t do that today, they will be irrelevant tomorrow, whatever tomorrow is.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Shipping Is Never Fast (or Cheap) Enough

The Wall Street Journal: “More than nine of 10 shoppers said they considered ‘same day,’ ‘next day’ and ‘two day’ delivery to be ‘fast,’ according to consulting firm Deloitte’s 2015 holiday survey of some 4,000 shoppers. At three to four days, only 63% called it ‘fast,’ and just 18% of shoppers considered five to seven days ‘fast’.”

“And customers for the most part are no longer willing to pay extra for expedited delivery. Shoppers on average said they would pay at most just $5.10 for same-day service, in the Deloitte survey. A quarter of shoppers said they wouldn’t expect to pay anything at all.”

However, absorbing the shipping may be worth it to some online retailers because it can reduce the return rate: “When you go to a store, you have that wonderful delight of carrying the bag down the street,” says David Maddocks, chief marketing officer of Cole Haan. “Online, after you click, you have to wait. And during that time you can fall out of love.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Co-Creation Is The New Museology

Hyperallergic: “In plain terms, across the field, in museums, art institutions, performance forums, and even historical societies, the visitor’s experience is now being personalized. This means that not only is the visit marked by enhanced, interactive, and ‘dialogic’ engagement, but also there is an institutional recognition of the visitor as an independent maker of meaning who uses the museum in a variety of ways to fulfill particular, individual needs and desires.”

“Three key means of accomplishing this is first, recognizing visitors’ capacity to make meaning for themselves; two, partnering with them to discover what they personally want from the museum; and lastly, mobilizing the museum’s resources to meet these needs. These tasks can be met by, among other things, new curatorial strategies through which museums partner with visitors to develop activities and events: co-curation projects, and crowdsourcing exhibition content.”

“Visitors are no longer passive receptacles for the curator’s knowledge, but rather active, engaged participants.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The Bon Marché Merchandises “Poetry, Beauty, Dreams”

Chinese dissident artist Ai Weiwei has turned the Bon Marché department store in Paris into an art gallery, reports The New York Times. “Anyone needing more evidence that the distinctions between public and private, high and low, art and commerce, and actual versus Internet celebrity have now imploded beyond recognition need look no further than this example of a populist Chinese dissident artist exhibiting in a luxury department store in one of the world’s fashion capitals.”

“Why the Bon Marché? Mr. Ai said that no French museums had contacted him about organizing a show … The Bon Marché first contacted the artist in late 2014, when he was still prevented from leaving China, said Frédéric Bodenes, the store’s artistic director. Mr. Bodenes said the store was not worried about souring ties with China.”

“We’re about poetry, beauty, dreams. We’re here to entrance our customers, and there’s no politics behind it,” Mr. Bodenes said. “Art is a value-added thing that we give our clients.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail