Terms of Service: Ownership Not Included

Quartz: “When you purchase an ebook you must agree to the Terms of Service (TOS) that tell you what you can do with it … An overwhelming majority of internet users agree to them without reading them. In one experiment 98% of users failed to notice a clause requiring them to give up their first-born as payment.”

“Using contracts to make an end-run around property law predates the web … Licensing contracts provided software businesses with a tool to control what the buyer did with their software, without the overhead of negotiating terms with each customer … Licensing agreements have been supplemented by far more pervasive TOS contracts, which extend similar protections to websites and other services. Consumer protections have, if anything, gotten weaker. People who were once owners have been transformed into mere users.”

“Despite tremendous erosion of property rights, most consumers transitioning to digital media have so far avoided the pain of losing anything they really cared about. Few have had a favorite ebook deleted or been embroiled in a legal argument over their digital inheritance. The attitudes of young adults make ownership seem positively passé. Rates of homeownership are down, the ‘sharing economy’ is up, and everything that can be streamed will be streamed … However, it may also be that most people simply haven’t yet realized that they’ve given anything up.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

West Elm ‘Retails’ Boutique Hotels

The Wall Street Journal: “Furniture retailer West Elm is worried about following other chains down the rabbit hole of opening too many stores. So the company has another plan to sustain its growth: launching a chain of boutique hotels. West Elm will design, furnish and market the hotels, the first of which will open in Detroit and Savannah in late 2018 … Guests will be able to buy the room furniture and other décor online.”

“The hotel project thrusts West Elm, part of Williams-Sonoma Inc., into a fast-growing, but crowded field. Most of the major hotel chains have launched boutique hotel brands in recent years as travelers have come to crave unique experiences rather than the standardization that was once their biggest selling point … Industry experts say there is room for more entrants. Despite growing 24% over the past six years, the number of boutique hotel rooms still represents just 2% of the total supply.”

“To test its ideas for West Elm Hotels, the company built mock rooms in a Brooklyn warehouse … Guests who like the furnishings will have an opportunity to purchase them through an app they can download when they check in, or on West Elm’s website. No price tags will be displayed in the rooms, however.” West Elm says it “could eventually have as many hotels as retail stores.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Grass-Fed Beef: Not a ‘Luxury’ Anymore

The Wall Street Journal: “Grass-fed beef, once a niche luxury, is now sold at ballgames, convention centers and nearly every Wal-Mart in the U.S. Beef labeled as grass-fed connotes much more than cattle that were raised in a pasture, say grocers and restaurateurs. Many consumers perceive grass-fed beef as a healthier, higher-quality alternative to conventional beef and are willing to pay more for it, no matter that labeling—and flavor—can be inconsistent.”

“Not every retailer is onboard. Costco Wholesale Corp., the country’s second largest retailer after Wal-Mart, doesn’t sell grass-fed beef, though it sells organic ground beef in every U.S. store. The definition of grass-fed beef is still too ambiguous, the taste too inconsistent and Costco consumers gravitate most to an ‘organic’ label for now, says Jeff Lyons, Costco’s senior vice president of fresh foods.”

“Theo Weening, Whole Foods’ global meat coordinator, expects demand for grass-fed beef to grow well beyond human appetites. ‘When a customer likes grass-fed beef and they have a dog, they want the dog to have grass-fed beef, too,’ he says.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Curated Retail: The Museum Gift-Shop Experience

The Washington Post: “In the vast Heritage Hall of the National Museum of African American History and Culture, employees are shelving funky sculptural dolls whose hair has been twisted and seams have been finished by local artist Francine Haskins … The museum’s retail operation is an excellent example of how the once-cheesy, forgettable gift shop has become a formidable institution-within-an-institution.”

“Once, books and exhibition catalogues were the lifeblood of museum shops. These days, most stores aim to balance academic tomes with splurge-y tchotchkes and pieces inspired by the curators’ carefully cultivated collections … ‘I tell our curators that just as you curate the museum, we curate the store,’ says Stuart Hata, president of the board of the Museum Store Association. ‘We’re not a gift shop, we’re not a bookstore,’ he says. ‘Our mission is to reflect the institution. It’s to reflect our collections’.”

“The new African American Museum will feature a host of specialty items made expressly for its shop. Blingy gold keychains, magnets, cuff links and brooches have been designed to subtly echo the venue’s latticework corona … And then there are those specially selected objects made by artists from across the country.” Ed Howell, the Smithsonian Institution’s senior vice president of retail, “hopes that shoppers will find their way to those pieces, and from them to the artisans … But more important, their work ‘makes the shop unique, and the visitor’s experience unique’.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Ralph Lauren Turns NYC Street Into Runway

The Wall Street Journal: “In the can-you-top-this stakes of New York Fashion Week stunts, Ralph Lauren is nearly shutting down one block of Madison Avenue on the Upper East Side to host the label’s latest women’s runway show. The block, between 71st and 72nd streets, is home to Mr. Lauren’s flagship women’s store on the left, its men’s store on the right, and children’s store.”

“Models will emerge from the women’s store to sashay down Madison Avenue in a giant glass-enclosed tent. Immediately after, the women’s store will be open to guests and customers, who will be able to buy anything from the collection that was just shown. The move makes Ralph Lauren the largest American brand to make an entire runway collection immediately available to shoppers, part of a growing industry trend to close the monthslong gap between when clothes are shown and when they arrive in stores.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Time, Money & The Roots of Happiness

The New York Times: “Given the choice between more time or more money, which would you pick? … Which would lead to greater happiness — the money or the time? … For a research project, we put this question to more than 4,000 Americans of different ages, income levels, occupations and marital and parental status. In a paper in the journal Social Psychological and Personality Science, which we wrote with our student Uri Barnea, we found that most people valued money more than time. Sixty-four percent of the 4,415 people we asked in five surveys chose money.”

‘We had also asked our survey respondents to report their level of happiness and life satisfaction. We found that the people who chose time were on average statistically happier and more satisfied with life than the people who chose money … But maybe this result simply shows that the people who chose money are more financially constrained and therefore less happy. To check this, we also asked respondents to report their annual household income along with the number of hours they work each week (to measure how much time they have).”

“We found that even when we held constant the amount of leisure time and money respondents had (as well as their age, gender, marital status, parental status and the extent to which they valued material possessions), the people who chose time over money were still happier. So if we were to take two people who were otherwise the same, the one who chose time over money would be happier than the one who chose money over time.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Luxury of Privacy: Moda Operandi Madison

The New York Times: “Moda Operandi Madison, which occupies two floors of a 1910 townhouse on 64th Street just west of Madison Avenue, is not a shop as conventionally understood. It is a by-appointment showroom for the very few. Those invited to buy there — likely no more than 300 per year … will enter a store whose goods are customized to their sizes, tastes and tendencies, whose salespeople know the full history of their dealings with Moda Operandi online: what they bought, browsed, bookmarked, exchanged or returned (very little, according to the company).”

“In New York, the only indication from the outside that Moda Operandi Madison is open for business is one small street-facing window, behind which, inside a decorative inset frame, a single Giambattista Valli couture gown undulates slightly in a manufactured breeze … Inside, past the heavy curtains in the vestibule, Moda is a confectionary wonderland, a haven with gelato-colored walls and blush suede furniture … There is an on-site kitchen for when shopping and lunch coincide.”

Moda Operandi “plans an aggressive rollout worldwide, the next in Abu Dhabi in 2017. The rest of the Middle East, Hong Kong and South Korea are on the horizon. The company plans to have 15 showrooms by 2021, the better to white-glove its customers where they live, as well as where they travel.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Rural Retail Joins Digital Age

The Wall Street Journal: “E-commerce hasn’t just reached rural America, it is transforming it by giving small-town residents an opportunity to buy staples online at a cheaper price than the local supermarket. It also provides remote areas with big-city conveniences and the latest products. Contemporary fashion, such as Victoria Secret bathing suits or Tory Burch ballet flats—items that can’t be found at Dollar General—are easily shipped.”

“According to Kantar Retail, about 73% of rural consumers—defined as those who drive at least 10 miles for everyday shopping—are now buying online versus 68% two years ago. Last year, 30% were members of Amazon Prime, up from 22% in 2014 … A Wal-Mart built in 1982 in Altus, Okla. … brought residents choice, convenience and low prices. Now, online shopping is creating another retail revolution here that doesn’t require a half-hour drive to Wal-Mart or roughly 2½-hour drive to Oklahoma City … ”

“E-commerce has provided new opportunities for area residents to earn money. In Willow, Okla., Anneliese Rogers, a mother of three, raised $1,500 in one sitting by selling items from her closet on Facebook. Nearby, Kassandra Bruton mails up to 100 packages a week from her clothing store Trailer Trash … E-commerce has changed life for Flowers Unlimited, the last remaining Mangum, Okla. florist and gift shop on the town’s square. While it has lost much of its bridal and baby registry business to online retailers, it has one big advantage: There is still a need for last-minute gifts, says owner Darla Heatly. ‘They can’t do e-commerce if they don’t plan ahead,’ she adds.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Joy Makers: How Driscoll’s Brands Its Berries

The New York Times: “Its strawberries have been bred for a uniform shape … while Driscoll’s raspberries are pinker and shinier, made to meet desires expressed by consumers … Driscoll’s is betting that once consumers know why its berries are distinctive they will demand them by name … Driscoll’s plans to build awareness methodically, by starting with digital outreach. The company’s website, which largely offered recipes, has been changed to explain more about Driscoll’s berries and what makes them different.”

“The public will get an introduction to the people Driscoll’s calls its Joy Makers — agronomists, breeders, sensory analysts, plant pathologists and entomologists who will explain how the company creates its berries. The company’s YouTube channel will feature stories told by consumers about why berries make them happy. Facebook, Twitter and Instagram will be used to send traffic to the website and YouTube.”

“Labels on the company’s berries have been changed, too, to ‘speak’ more to consumers, using a scriptlike font for the Driscoll’s name with the dot over the ‘i’ colored to match the berries inside the box … Since margins on produce are razor-thin, most companies elect to spend the few dollars they have for marketing to woo buyers for supermarket chains rather than consumers.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail