NO MORE TIME FOR MOVADO

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Posted on 7:40 PM | | In


Movado is shuttering its retail division and closing its branded U.S. retail boutiques by the end of this month.
While the once- great Swiss brand will retain its New York store, along with 31 outlet stores, the company plans to regroup and focus on selling watches through third parties, including wholesale partners and independent retailers.

Its branded retail stores were opened twelve years ago to sell watches, clocks, pens, fine jewelry, leather goods, and accessories. Closing them will take a $30 million bite out of Movado's revenue, but the division was losing around $10 million annually.

At the same time, Movado announced that it had hired Joe Faranda to become SVP of Consumer Insights and Strategic Planning. Faranda was most recently CMO for International Flavors and Fragrances in New York, and before that he was with Avon Products.

Some market analysts think Movado, which was founded in 1881, will continue to struggle.
Now in the midst of dozens of competing, often better positioned brands, Movado is faced with what to do with a brand that's too expensive to have mass appeal, not prestigious enough for the high end product and for the most part the brand does not mean anything to compete. If they had any consumer insight they might build a Movado sub-line that fits emerging consumer design sensibilities and demand instead of paying thru the nose for meaningless celebrity endorsements.

While better watchmakers starting to see some light, one has to wonder if Movado's time has run out.

The Schott Perfecto makes the cover of SPIN Magazine!

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Posted on 9:01 AM | | In

VOLVO Going Chinese!

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Posted on 6:55 AM | | In


The venerable Volvo brand, known for reliability and safety, was sold yesterday by Ford to The Zhejiang Geely Holding Group. Based in Hangzhou, and its majority-owned automotive subsidiary, Geely Automobile Holdings, is ranked #12 in overall production. Geely autos has made significant inroads manufacturing subcompacts and less expensive compacts – and now, it joins the big boys at the top.

The company is tightly controlled by founder, Li Shufu, a farmer’s son, who leveraged a motorcycle parts business into the successful and fast-growing company it is today. At the press conference Sunday in Goteborg, Sweden, Li said, “I want to emphasize that Volvo is Volvo and Geely is Geely — Volvo will be run by Volvo management. We are determined to preserve the distinct identity of the Volvo brand."

Geely has been in the running to purchase Volvo since fall 2009, but issues of financing and trade secrets had to be overcome. In addition, there was resistance from Swedish labor and political influencers to the deal. The near devastation of the Saab brand in 2009, helped grease the skids for the Chinese deal to happen.

The challenge remains for Geely Auto to produce up-scale cars for the masses at affordable prices. The average car price in China is $17,000 (J.D. Power & Associates). The Volvo brand will be a luxury item in the Chinese car market that forecasts a jump in purchases from 300,000 in 2009 to 650,000 by 2015.

Maud Olofsson, Swedish deputy prime minister summed it up thus: “The future road for Volvo Cars is now defined. Regardless of who owns Volvo Cars, its brand will still be Swedish."

A brand with a distinct DNA such as Volvo, questions comes to mind - What makes a brand a brand and how will such real and perceived cultural differences and objectives - affect the outward perception of the brand? More on this when, I have some more time.




Selling American Pride

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Posted on 12:35 PM | | In

MADE IN THE USA was once a highly valued assurance, an authentication, a symbol of high quality materials, careful workmanship, union made solidarity and national pride. Today, the product retail riddle is complicated by lofty idealism's vs practicalities: should the bottom line outweigh the “savings” resultant of sweatshop/ neo-slave labor, questionable environmental standards, American job loses, compromises of quality controls, lessening trend-reactive mobilities, requisite brand P/R damages. For many US consumers, raised amidst predominately good times + middle class luxuries, the reason to read tags is often not to look for the MADE IN THE USA assurance, so much as to glean BRAND APPEAL, PRICE, TECHNOLOGIES, STYLING, COMFORT. Where a product is cut+sewn is an afterthought.

Consumers blame retailers for not providing credible selections of quality US-made products...Retailers plead that consumers are swayed mostly by price anyway, and that the manufacturers should solve this price riddle by any means necessary (whether in the US or elsewhere) Manufacturers fault retailers for driving production offshore by not being sensitive to the holistic values provided by costlier US-made products. The frank reality is that there was a time when the value of MADE IN USA plainly atrophied: FORD® PINTOS, DISCO INFERNOS, SANSABELT® LEISURE SUITS, WATERGATE POLITICS signaled a cultural shift wherein Americans became cynical of America. Designer clothes were Italian, Luxury cars were German, quality electronics were Japanese and gourmet food was French. The MADE IN USA stamp became meaningless, perhaps even laughable.

So the question still lingers:

COULD ANYONE CARE ABOUT MADE IN THE USA? According to research conducted by Intersearch, NEARLY HALF OF ALL RESPONDENTS SAY IT IS VERY IMPORTANT TO THEM TO BUY PRODUCTS MADE IN THE USA when making major purchases like autos+appliances. OF THE FEMALES POLLED, 46.8% FOUND THE DISTINCTION TO BE IMPORTANT, of the MALES 44.4% ANSWERED LIKEWISE. But viewed in terms of age demographics, one wonders if newer generations are as compelled to care: of the 18-to-34 YEAR OLD SECTOR ONLY 32.2% FELT THE DISTINCTION WAS VERY IMPORTANT, WHILE 29% SAID IT WAS SOMEWHAT IMPORTANT. CONVERSELY, OF THE RESPONDENTS OVER THE AGE OF 65, 63.1% FELT IT WAS VERY IMPORTANT. Further, ONLY 44.8% OF AFFLUENTS ($50K+ ANNUAL INCOME) FELT THE DISTINCTION WAS IMPORTANT, WHILE 49.1% OF WORKING CLASS (-$35K) RESPONDENTS VALUED THE ASSURANCE.

Todayʼs privileged youth seem the most apathetic to the MADE IN THE USA appeal, perhaps affluence+privilege itself seems to lessen the imperative for such values, while older working class Americans lament “those good old days” of American “can-do”-ism. Yet, the implication that mass consumers could care about this ideal, and the reality that the top-selling brands rarely fulfill such ideals leads us to conclude that EDUCATION INITIATIVES addressing the cause of MADE IN THE USA is required.

Do consumers really understand the severity of the issue (on par with Rain Forest Depletion or Whale Endangerment)? Can consumers be relied upon to put their money where their mouths are? Can American workmanship attain the level of quality to mean something again? Can consumers believe in such ideals again? And can a brand fulfill the lifestyle mission of fashion branding while assuaging the spiritual pride ideals of MADE IN USA, yet resolve the pricing realities of the marketplace?

Lady Gaga hopes to eliminate Polaroid's 30 second wait... but, will it help?

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Posted on 10:47 AM | | In


When it was reported last month that Lady Gaga had signed a deal with Polaroid, we had to wonder what the hell was going on. After all, why would one of the hottest young performers connect herself with an irrelevant brand whose product offering is forever lost in the digital age? Now we know!

Lady Gaga has agreed to become Polaroid's "creative director" and lend her name to a line of products in exchange for a piece of the action - above and beyond the 8% royalty payment.

Polaroid is bidding to revive its brand by associating it with digital photography and today's youth. Clearly that's why Polaroid hitched a ride with the Lady Gaga phenomenon. The company believes its Lady Gaga line of products "could account for as much as 30 percent of its business."

Now the real question is - After floundering for the last ten years with too many missteps - will Polaroid, finally be able to roll out product in a timely manner that is relevant to the ever fickle target consumer or will this just delay the death-throes of another great and iconic brand as well as chock up another casualty of the digital age.

Domino's gets more Dough!

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Posted on 9:25 AM | | In


Domino’s might be in the business of delivering pizzas, but it has also been taking home the bacon recently. The pizza giant boasted its most lucrative fourth-quarter earnings – producing twice as many sales, better margins, and lower interest expenses.

With tough competition from Pizza Hut and Papa John’s, how did Domino’s pull off such a feat? Was it by offering more lunch options such as pasta, sandwiches, and salads? Or was it the brand’s decision to pump money into its advertising? Both could account for the surge on some level, but there’s another factor to consider: Domino’s admitting that their pizza was bad.

While various additions and subtractions to the Domino’s menu have helped revamp the former pizza-only company, its “new pizza” campaign has given the brand a whole new life. Even top Domino’s executives have pointed to its new dough for the increase in, well, dough.

“This positive momentum has continued thus far in 2010, as sales and traffic have increased significantly since the launch of our new core pizza,” said Chief Executive David A. Brandon.

Customers who complained about the brand’s sauce, crust, and overall “bad” taste were all surprised to witness Domino’s actually listen and make changes. Television sets across the nation have been beaming with Domino’s Pizza commercials showcasing the new garlic crust, fresh toppings, hand-tossed dough, and an overall mea culpa tone.

Domino’s Pizza’s candidness has (so far) earned it both the respect and cash of customers. Its all-ears business approach certainly has competitors listening to the brand’s new tune.

Another web casualty - The Death of the Yearbook!

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Posted on 8:12 AM | | In


Social networking websites are eliminating the once popular appeal of college yearbooks reports the AP. Though it is difficult to assess just what this change means – if anything – to students and professors in terms of their relationships, the demise of the college yearbook underscores the declining presence of print publications in our lives.

The Columbia Scholastic Press Association's executive director, Edmund Sullivan, says that students have been steadily losing interest in yearbooks for years, thanks – not surprisingly – to sites like Facebook and Myspace. "The Internet has blown down the four walls of a campus in a traditional sense. And it has blown off the covers on the yearbook," he said.

In fact, the University of Virginia is forgoing its yearbook – for the first time since 1887. Publishers explained that there just isn't enough money or appreciation in an age where students can instantaneously publish photos online for free.

High school yearbooks, interestingly, aren’t experiencing the same level of flagging popularity. "At a high school, you're required to be within the four walls of an institution, and in college you're not," said Vicky Wolfe, who served as "Corks and Curls" editor in 1994. The experience shared by high school students is much different that those shared by college students.

This point, however, may have an important branding lesson in it for both print and online publications. After all, high school students are just as obsessed with technology – if not more so – than college students. So what is it about the high school experience that makes people more prone to wanting an official, traditional yearbook? And how can publishing and tech brands capitalize on this phenomenon?

But those brands should act fast if they want to appeal to college students. Purdue, Old Dominion, and Mississippi State have also scrapped their yearbooks in favor of social networking and picture sharing sites. But not all hope is lost. Mary Jane, a junior at Virginia Wesleyan College, explains: "I grew up with yearbooks, and it was a big part of my childhood. Who's to say that Facebook is going to be around in 20 years?" Yeah, right.