One of the most often-referenced terms of the early years of this century is “disintermediation.” It is so frequently used it acquired its own Oxford Dictionary definition: “The reduction in the use of intermediaries between producers and consumers, for example by investing directly in the securities market rather than through a bank.” Since its early days in the financial markets, the term moved through the warp and woof of the economy, creating a kaleidoscopic new fabric. Intermediaries Yes Virginia, there really was a world populated …
Strategy
Patagonia: Conscious Capitalism
I’m offering yet another report on Patagonia that I’m tossing into the ring, now full of one adulatory article or broadcast interview after another. However hesitant I was to follow lemming-like this cascade of applause for Patagonia’s founder Yvon Chouinard, I believe there are not even enough lemmings in the world to drive home the fact that he authentically “walks the walk.” His donation of his entire $3 billion business to planet Earth is not only unprecedented, but also a powerful example of how capitalism can thrive while simultaneously …
Walmart Accelerates the Fashion Journey
Walmart is making fashion a priority. The strategy is to pursue niche DTC brands, and primarily those that have appeal for younger, higher-income consumers. According to an Insider article, DTC brands like Harry’s, Casper, Olly, and Quip all chose to debut in big-box retail at Target. Even though Target has a smaller footprint, their customer base is wealthier, and Target focuses on design with dedicated teams for emerging brands. Image Reset Unlike Target, Walmart’s image has always been the quintessential everyday lower price model. …
Printemps Sets Sites on Lower Manhattan
The concept of the global retailer has been pretty much a mixed bag with a wildly uneven success rate. With the exception of the occasional Ikea or Starbucks, many retailing companies have been unable to export their business model outside their home country. And this has worked in pretty much every direction: from Europe and Asia to the United States and in reverse. Which is why the recent news that fabled French department store Printemps is planning to open its first American store in 2024 in New York City is so intriguing. As one of the …
The New Reality of Renting Where You Live
Remember the old days – actually just a few years ago – when you went to rent an apartment and you usually spoke to a landlord or, in a city, even the super (technically a superintendent) and it was pretty basic. If you rented a single-family house, you often dealt directly with the homeowner herself. Welcome to the new reality of renting. Today nearly 25 percent of all the single-family homes in America are owned by investors, sometimes aspiring Airbnb entrepreneurs but more likely giant real estate companies like Blackstone. In fact, …
New Chinese Proverb: Make Low Fast, Sell High Faster
Shein (pronounced shee-in), the China based sizzling hot, (or should I say way cool), fast-fashion brand is transcending Zara, who created the model a couple decades ago. According to Statista, Zara is still ranked first in number of stores worldwide, (about 4500), with H&M second, (about 2500), and revenues of about $12.9 billion for Zara and about $12.5 billion for H&M. But Shein caught my attention big-time. Shein’s Astounding Growth So, what’s the big deal? First, since Shein is a private company, it has been estimated that …
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A New World Order for Retail
The retail industry has been a major beneficiary of the waves of globalization iterations in recent decades. We have optimized our supply chains, barely raised prices in years, and consumers have rewarded retailers by buying far more than they need, sometimes shedding goods in a Marie Kondo inspired purge, only to go out and buy more and more stuff. Until now. Early in the pandemic, consumers experienced a shift in the staples system as our Costco, normally dense with Lysol Wipes or buffeted by mountains of toilet paper packs, became …
Wayfair Is Getting Physical…Finally
Call it omnichannel. Call it platform neutral. Call it be-where-your-customer-is. Whatever you call it, calling it late is a very risky business strategy indeed. And that is the position Wayfair, the big online home furnishings retailer, finds itself in today as it begins – FINALLY – the arduous, time-laden and incredibly expensive process of opening physical stores. After dabbling in a test or two, a couple of pop-ups, and a wing and prayer, Wayfair will open at least three stores under two of its sub-brands this year followed by a …