Is Gucci Today’s Most Innovative Brand?

From a Wall Street Journal interview with Imran Amed, founder of Business of Fashion: “Without a doubt, the single most innovative brand of the moment is Gucci … Gucci has completely overhauled their e-commerce strategy and changed the way they communicate about the brand. They’ve embraced new channels like Instagram but also done beautiful events and interesting advertising campaigns.”

“They’re not doing any discounting on their main runway collection … We’ve kind of trained the consumer to wait for things to go on sale. Gucci’s stopped that. Fifty percent of their customers are millennials. Millennials are the drivers of success for the fashion industry now. Without engaging them, you can’t really operate a successful business today. Gucci has found ways of engaging with that consumer.”

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Valentine Hearts Take Flight on Chicken Wings

The Wall Street Journal: “Somehow, chicken wings are elbowing their way to a spot alongside flowers, chocolate and champagne on America’s Valentine’s Day menu … Restaurant orders of chicken wings—1.1 billion in the U.S. last year—are 14% higher on Feb. 14 compared with other days of the month, excluding Super Bowl Sunday, of course, according to Bonnie Riggs, restaurant analyst for NPD Group, a market-research firm.”

Marivel Guerrero, who plans to give her new boyfriend a chicken-wing bouquet wrapped in a red bow, explains: “When you’re eating wings you’re really getting to know that other person. Will they pick at them with their fingers? Will they dive in and eat right off the bone?” Charlie Morrison, of Wingstop, “a chicken-wing chain of about 1,100 restaurants,” says sharing wings means “you’re ready to be vulnerable with someone, because there’s going to be food on your face.”

“Duffy’s Irish Pub in Washington, D.C., will offer chicken-wing combinations or ‘flights’ on Valentine’s Day in different flavors … The nine-wing combos require a couple to negotiate over the last piece, says co-owner Casey Callister. The back-and-forth could spark new intimacy.” He comments: “Sharing a partially eaten wing is like sharing a toothbrush.”

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Efficiency Is No Cure for Phony Baloney

The Wall Street Journal: “Over the past 2½ years, thousands of workers lost their jobs, and iconic Kraft buildings, including the original Oscar Mayer headquarters in Madison, Wis., have been shuttered and sold. The cost-cutting project is now wrapping up, giving Kraft Heinz Co. the highest operating profit margin among its peers in the U.S. food industry.”

Troy Shannan, Kraft Heinz’s head of North America supply chain, comments: “We look at pretty much any opportunity we have to drive efficiency. And we use the savings from those efficiencies to reinvest in our brands and our businesses and back into our supply chain.”

“Still, Kraft Heinz is grappling with a problem that can’t be solved by increasing efficiency: U.S. sales of cold cuts and other processed meats slipped to $21.3 billion last year, from $21.9 billion in 2015. Oscar Mayer’s market share dropped to 17.5% from 18% five years ago, according to Euromonitor. Natural and organic brands, as well as small labels buying from local farms, have nibbled away at sales. ‘Consumers are looking for something they think is handmade or looks handmade,’ said Chris Fuller, a consultant to meat processors.”

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Unilever to Weed Out ‘Fake News’ Ad Support

The Wall Street Journal: “Unilever PLC is threatening to pull back its advertising from popular tech platforms, including YouTube and Facebook Inc., if they don’t do more to combat the spread of fake news, hate speech and divisive content.” In prepared remarks, Chief Marketing Officer Keith Weed said: “Unilever will not invest in platforms or environments that do not protect our children or which create division in society, and promote anger or hate … We will prioritize investing only in responsible platforms that are committed to creating a positive impact in society.”

“Unilever has been among the more outspoken advertisers pushing for the online ad industry to clean up the ad fraud that exists on the web and offer up stronger measurement standards to ensure that advertisers are buying ads that can be seen by real people. While the company continues to push for those initiatives, Mr. Weed said that consumers don’t care about online advertising measurement issues. They do care about ‘fake news’ and ‘Russians influencing the U.S. election,’ he added. Rather than issue a public list of demands, Mr. Weed said he wants to work privately with the tech companies to come up with solutions.”

“Mr. Weed said that advertisers need to be outspoken about issues on tech platforms, since they are almost entirely supported by billions of ad dollars. ‘One can start by not putting ads on content we do not want to encourage,’ he said.”

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Bad Apples Spoil Bean’s Return Policy

Business Wire: “It used to be that customers could bring back items bought at L.L. Bean’s stores and online any time they felt it didn’t live up to their expectations. The guarantee covered the item’s full lifetime. Now, the policy extends for one year only. After that, customers can only return an item if it proves defective. In another change to the policy, customers will also now need to provide a proof of purchase for a return or exchange.”

“L.L. Bean relayed the news to customers in the form of an emailed letter from Shawn O. Gorman, the company’s executive chairman and great-grandson of founder L.L. Bean. In the letter, Gorman wrote that it was people who took advantage of the generous return policy that forced the company’s hand.”

He wrote: “Increasingly, a small, but growing number of customers has been interpreting our guarantee well beyond its original intent. Some view it as a lifetime product replacement program, expecting refunds for heavily worn products used over many years. Others seek refunds for products that have been purchased through third parties, such as at yard sales. Based on these experiences, we have updated our policy.”

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Purchase Brands vs. Usage Brands

Harvard Business Review: “Where traditional brands focus on positioning their brands in the minds of their customers, digital brands focus on positioning their brands in the lives of their customers. Furthermore, they engage customers more as users than as buyers, shifting their investments from pre-purchase promotion and sales to post-purchase renewal and advocacy.”

“Purchase brands focus on creating demand to buy the product, while usage brands focus on creating demand for the use of the product … Purchase brands emphasize promotion; usage brands emphasize advocacy … Purchase brands worry about what they say to customers; usage brands worry about what customers say to each other … Purchase brands try to shape what people think about the brand along the path to purchase; usage brands influence how people experience the brand at every touchpoint.”

“The simple view would be that traditional brands are purchase brands and digital brands are usage brands. But there are exceptions, including brands like Visa, FedEx, Lego, and Costco, which exhibit many of the characteristics of usage brands … They think of customers less as one-time buyers and more as users or members with an ongoing relationship … Purchase brands focus on the ‘moments of truth’ that happen before the transaction, such as researching, shopping, and buying the product. By contrast, usage brands focus on the moments of truth that happen after the transaction, whether in delivery, service, education, or sharing.”

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My Esel: Bespoke Design in Wood

Bike Rumor: “We’ve seen plenty of bike frames made out of wood over the past few years, but few have taken advantage of the material’s workability to add more customization into the frame building process. My Esel takes that issue head on … For each bike that they produce, My Esel uses a configuration tool that lets buyers enter their exact body measurements and desired riding position, to scale the frame fit specifically to them, before it is produced through a CNC manufacturing process tailored to each buyer.”

“The key to that customization has been developing a parametric design software that lets My Esel plug in all of the key measurements of a rider’s body and translate that into a scalable frame layout part of which is then produced on a CNC mill … The software also adjust to three primary riding styles Sport/Racing, Urban/Trekking, or Comfort/Holland … so you not only get a bike the right size for you put with a position adjusted to your intended style of riding.”

“The bikes get customizable finish too. The frames are built from ash veneer hardwood plywood and can get four layers of clearcoat to show the grain, with black or white painted finishes optional as well. A walnut veneer is apparently available as an upgrade, as is a dark black stain of the standard ash.”

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How IKEA changed the shopping experience

The Washington Post: IKEA, “which has 412 locations in more than 40 countries, has become an international empire. Its sprawling stores with their tortuously winding routes have continued to thrive in an era of hurried online shopping. Analysts say Ikea has been successful in not only getting shoppers to linger for hours, but also getting them to come back, over and over, whether for mattresses or meatballs.”

Warren Shoulberg, a consultant, comments: “Before Ikea came along, furniture shopping was a laborious task that a lot of people dreaded because they felt like they were making a decision they had to live with for 30 years. Then Ikea showed up and said, you can buy something and use it for a couple of years — or you can keep it longer — but this isn’t necessarily something you’re going to pass down to your kids or your grandkids. That was a remarkable transition.”

“The retailer has also been successful, he added, in creating a shopping destination. Traditional furniture stores may line up all of their sofas in one section and beds in another, but Ikea displays items by room, so shoppers can see how different pieces might look together … Its success has also given way to a cottage industry of businesses that specialize in assembling Ikea furniture. Ikea itself has gotten into the fray: In September, it purchased TaskRabbit, a start-up that providers contractors for odd jobs, to appeal to a generation of time-strapped consumers who want Ikea furniture without the hassle of assembling it.”

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Retail Theater: The Shellfish Spa

Supermarket News: “Retailers say making the shopping trip an experience is one way they can drive traffic into their stores. And a little theater in the seafood department is actually helping to drive sales, according to one Northeast retailer, Shoprite, which has added the Shellfish Spa. The device preserves live product such as clams, oysters, mussels, steamers and cockles while presenting them in an eye-catching display. The container bathes shellfish in a continuous stream of saltwater and maintains an ocean-like environment for peak freshness.”

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Why Do Pizza Chains Attract Republicans?

Morning Consult: “Large pizza chains accounted for 36.5% of sales in states that President Donald Trump won in 2016, compared to 23% of sales in states that voted for Hillary Clinton … Pizza industry experts suggest the popularity of major chains in traditionally conservative states — and to some extent, price and the level of more premium toppings — could be reasons for the political divide.”

A theory: “While pizza was plentiful in Italian immigrants’ urban communities along the East Coast around the turn of the 20th century, it was sparse elsewhere in the United States. It wasn’t until the late 1950s and early 1960s, when companies like Pizza Hut, Domino’s and Little Caesars cropped up in the Midwest, that pizza was brought to the wider American public. During the industry’s early years, when chains were starting, companies focused their marketing on lower-income neighborhoods and presented pizza as an inexpensive dinner option in those Midwestern hubs.”

Carol Helstosky, author of Pizza: A Global History, comments: “If we think about this in culinary terms, the emphasis is on cost, reliability, standardization and efficiency … Food historians might label these culinary values conservative, in the sense that the consumer wants the same product, and qualities like fast delivery matter more than particular ingredients or the overall taste.”

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