Merry ModelXmas!

Boing Boing: People who drive Tesla’s Model X have a cool ‘easter egg’ feature built right into their vehicle: a holiday music and light show set to the tune of Trans-Siberian Orchestra’s “Wizards In Winter”! When activated, this all-electric luxury vehicle will display a synchronized show using the car’s headlights, turn signals, and falcon wings.”

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What Does Luxury E-Tail Look Like?

The New York Times: “High-end e-commerce remains a bright spot in the shopping landscape: flooded with more cash than ever before and with bubblelike sky-high valuations to boot. It’s a world dominated by two behemoth competitors … Yoox Net-a-Porter, the largest luxury e-tailer by sales, is one of them. It owns the e-tailers Net-a-Porter, the Outnet, Mr Porter and Yoox; it also operates the e-commerce sites for over 30 luxury brands including Stella McCartney, Dolce & Gabbana and Chloé.”

“Farfetch, the other big name, is an online marketplace for 500 independent luxury boutiques and 200 brands as well as the owner of the bricks-and-mortar store Browns in London … Little wonder that during the past year barely a month went by without Yoox Net-a-Porter or Farfetch unveiling a snazzy new strategy or service in a thinly veiled bid to outmaneuver the other. In April, for example, Yoox Net-a-Porter introduced ‘You Try, We Wait’: a same-day try-on-and-wait premium delivery service with at-home shopping consultations. Six days later, Farfetch started a ‘store-to-door service’ in 90 minutes with Gucci in 10 cities worldwide.”

“Then Farfetch revealed a suite of technologies based on responding to consumers in the ‘Store of the Future.’ Yoox Net-a-Porter promptly responded with ‘Next Era’: a partnership with brands that debuted with Valentino giving customers access to Valentino products wherever they are, and however they want them.”

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What’s Next in Luxury Ecommerce?

According to The New York Times, here are three “next wave” luxury e-retailers: “Secondhand luxury (often known as the ‘recommerce market’) is fast becoming big business. The RealReal, an online marketplace that sells pre-owned and authenticated luxury items, was founded by the former Pets.com C.E.O. Julie Wainwright in 2011 and is expected to generate $500 million in revenue for 2017. It has raised $173 million in funding, and last month it opened its first store, in SoHo.”

Depop: “A mobile marketplace that says it has 350,000 active daily users, Depop has been described as “part Instagram and part eBay.” It is particularly popular with teenagers, who like the way users can personalize their digital storefronts.”

The Modist: “The so-called modest fashion market is booming, with the global Muslim clothing market forecast to be worth $368 billion by 2021, according to the latest Global Islamic Economy report. The Modist, poised to take advantage of the wave, started earlier this year.”

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Late & Great: Johnny Hallyday

“He was an idol, in other words, blasphemy incarnate. His death is that of a god who was in fact mortal. People say they can’t believe he is dead, simply because their belief in him, their faith in him, will not die. Many people never believed that Elvis died. The same will happen with Johnny.” – French philosopher Raphaël Enthoven on the phenomenon that was Johnny Hallyday (from The New York Times)

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Ultra Violet: The Color of Money?

The New York Times: “Pantone sent approximately 10 people to blanket the globe for weeks at a time last year, searching for color signals in food, cars, cosmetics, clothes and housewares. They reconvened, pooled their findings, did their analysis and declared the color of 2018 to be … Ultra Violet.”

“It ‘communicates originality, ingenuity and visionary thinking,’ Leatrice Eiseman, executive director of the Pantone Color Institute, said by way of explanation. It is found in the cosmos (think of all those swirling purple nebulae!), the wellness movement (amethyst crystals!) and was a favorite color of the architect Frank Lloyd Wright, who, Ms. Eiseman said, used to wear a purple cape when he was trying to be creative. Ditto Wagner, who liked to surround himself with purple when he was composing. Also, of course, Prince.”

Ms. Eiseman also says: “It’s also the most complex of all colors because it takes two shades that are seemingly diametrically opposed — blue and red — and brings them together to create something new.” And: “We wanted to pick something that brings hope and an uplifting message.”

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Shanghai Surprise: World’s Biggest Starbucks

The Washington Post: Starbucks has “opened its largest store in the world: a nearly 30,000-square-foot compound that does much more than simply serve coffee. The new Starbucks Reserve Roastery … in Shanghai, is the first non-U.S. location of a new series of shops designed to offer a more ‘immersive’ experience for coffee lovers, according to Starbucks.”

“It includes three coffee bars, one of which clocks in at 88 feet long — the chain’s longest to date. The coffee bars will serve brews made from beans grown in China’s Pu’er in Yunnan Province … A two-story, 40-ton copper cask towers over the store, refilling the coffee bars’ various silos … As a nod to the local beverage of choice, it also includes a tea bar made from 3-D printed materials, and an in-house bakery employing more than 30 Chinese bakers and chefs.”

“The experience seems curated to keep people milling about the store. It is the first Starbucks location to integrate augmented reality, which refers to technology that combines real-world surroundings with tech, in this case the customers’ smartphones. They can point their phones at various spots around the cavernous room to learn about the coffee-brewing process … The store’s boasting rights as the world’s largest won’t last long, though. The company plans to open a 43,000-square-foot location on Chicago’s Michigan Avenue in 2019.”

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Toblerone & Trademark Triangulation

The New York Times: “When the makers of the distinctive Swiss confection Toblerone reconfigured their triangular treat last year to slim down its hallmark summits and widen the valleys between them, a potential rival — Britain’s Poundland discount chain — saw a niche in the market … while the classic Toblerone bars had become lighter in weight in the reconfiguring — though their price remained the same — Poundland’s bar would be chunkier and cheaper, at one pound, or about $1.35, each.”

“Not, of course, that this was some crude copycat. If, as some contend, Toblerone was modeled on the soaring pyramid of a mountain — the Matterhorn on the Italian-Swiss border, which is about 14,690 feet high — Poundland’s bar was said to have been inspired by two less vertiginous hills in the English county of Shropshire near the border with Wales — the Ercall, at 460 feet, and the Wrekin, at 1,335 feet. Hence the shape of the Poundland bar, with a double set of summits between each valley. And hence its name: Twin Peaks, with what Poundland called ‘a distinctive British flavor compared to Toblerone’s Swiss chocolate nougat’.”

After some legal wrangling, Poundland “was permitted to begin selling in its nearly 900 stores the 500,000 bars already in production — provided it changed the background color of their wrappers from gold to blue. And the lettering was changed: to gold, from the original red. Once the initial 500,000 bars have been sold, Poundland said in a news release, it will ‘revise the shape’ so that the bar ‘better represents the outline of the Wrekin and Ercall hills’.”

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AC Store: The World’s Priciest Grocery?

Boing-Boing: “Barrow, Alaska (pop. 4,335) sits on the northernmost tip of the state. Because of its remote location, groceries are expensive — really expensive … A bag of Tostitos tortilla chips here are ‘on sale’ for $10.74. A single roll of toilet paper is $2.60. A box of Froot Loops is $9.73 …”

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Dollar General & Rural Retail: Ka-Ching!

The Wall Street Journal: “Dollar General is expanding because rural America is struggling. With its convenient locations for frugal shoppers, it has become one of the most profitable retailers in the U.S. and a lifeline for lower-income customers bypassed by other major chains.Dollar General Corp.’s 14,000 stores yielded more than double the profit of Macy’s Inc. on less revenue during its most recent fiscal year. And its $22 billion market value eclipses the largest U.S. grocery chain, Kroger Co., which has five times the revenue.”

“While many large retailers are closing locations, Dollar General executives said they planned to build thousands more stores, mostly in small communities that have otherwise shown few signs of the U.S. economic recovery … This lower-end market is better protected from Amazon and competitors that target wealthier shoppers.”

“For decades, Dollar General prices have been marked in 5-cent increments, making it easier for shoppers to estimate the total price of their purchases … Many popular brands are packaged in small quantities to keep prices under $10—generally yielding higher profits per item than bulk goods at such warehouse chains as Costco … The founders of Dollar General lived in small-town Kentucky and started the company there in 1955, making the store’s rural locations a natural fit. When Wal-Mart Stores Inc. grew past 3,000 stores in the early 2000s, a strategy surfaced: ‘We went where they ain’t,’ said David Perdue, Dollar General’s chief executive from 2003 to 2007.”

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How CVS & Aetna Could Change Healthcare

Business Insider: “CVS Pharmacy’s $69 billion deal to acquire the health insurer Aetna — the second-biggest deal of the year — is different. It could actually make treatment simpler and easier for Americans, and it catches a bunch of trends in the market that push costs down. There are two big streamlining ideas at work here. First … Pharmacy Benefit Managers (PBMs) are the gatekeepers between insurers and a patient’s medical treatment, and CVS already has one. Ideally it ensures that the PBM is incentivized to keep costs for the insurer as low as possible.”

“For the most part, though, this doesn’t fundamentally change Americans’ experience when they get sick. PBMs are faceless entities, and insurance is a foreign language to a lot of people. This is where the second streamlining idea in this CVS acquisition comes into play … the company will be ‘promoting lower-cost sites of care’ after this acquisition. That means turning brick-and-mortar stores into treatment centers and hiring medical staff. That’s expensive, but it will keep sick people out of more expensive hospitals, which keeps costs down for insurers and ultimately customers.”

“And unlike a lot of new urgent-care facilities hitting the market to do this very thing (keep people out of hospitals), CVS comes with a ton of brand familiarity. Plus, quarter after quarter CVS has seen that its other businesses are outperforming sales in its retail channel. Turning brick-and-mortar stores into healthcare facilities is one way to make good use of them.”

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