Design for Flying

This time of year I must come clean as a frequent-flier Miles Junkie. This week, I've been double checking my account to ensure I hit Platinum before year's end. Why the obsession with miles status? Mostly, because it's the only way I've found to ease the pain of travel. Status guarantees shorter lines at check-in and security, waived baggage fees, space overhead for bags, fancy lounge access, and every so often… a seat a the front of the plane.

A major reason flying is so unpleasant is that the vast majority of airport terminals are designed for travel in a different (pre-9/11) era – when in-flight meals were served au gratis, security was a quick scan for metal objects and even the most careful travelers arrived at the airport only 30 minutes before departure. Airlines receive too much blame for the hassles of flying... the flying public are in a lousy mood before they ever step on a plane.

It's no wonder we're miserable: beefed up security can't fit into cramped quarters at outdated airports, there's not enough food (or horrible choices) in the terminal before forced in-flight fasting and seating in the gate areas is sparse. If your flight's delayed, may the flying gods be at your side as you find space to charge your laptop or phone. That Wifi you need to change your flight/hotel/car service will cost you… if it's even available. Feeling parched? That's because you tossed your water bottle hours ago at security.

Several architecture firms, notably HOK & Gensler, are trying to make flying fun (for everyone) again. Allison Arief wrote in the NYT about a new crop of terminal projects for which planning and design began after 9/11. If you're lucky enough to fly from the North Terminal in Detroit, the JetBlue Terminal at Kennedy or Raleigh Durham's Terminal 2, you'll find more space, more light, and more pleasant places to spend a few hours. I'm hoping that SFO's long-delayed Terminal 2, set to open in spring 2011, will take some pain out of my travel on American Airlines.

Vet Your Vendors!

It's not hard to understand the basic premise of service driving business results - it's good for business (more revenue) when customers are treated well and bad for business (less revenue) when they are treated poorly. This is my gospel.

So I was absolutely dumbfounded when I read the cover story in this morning's New York Times business section about a seller of faux-designer eyewear who builds sales volume the more he upsets his customers. It recounts the chilling tale of Clarabelle Rodriguez, who purchased counterfeit frames and contact lenses from an online retailer she found through a Google search. The retailer, Vitaly Borker of DecorMyEyes, calls customers "Psychos" who seek refunds (whether they don't like the product or it's not what they're looking for.) He meddled with disputes through credit providers, threatened her with a fake lawsuit and bodily harm, then harassed her by emailing photos of their front doors and a message of "I know where you live" (he claims he merely sent a screenshot of Google's street-view.)

It turns out the bully tactics are his marketing strategy. The worse he behaves, the more these customers vent about his monstrous behavior in consumer-watch chat rooms… and in a truly unfortunate turn, these complaints raise the search-relevance rankings for the front door of his business. Before this story came out, if you searched his business by name, you'd find the complaints. But when you plugged an eyewear brand or "designer frames" into the search box, his business was among the top three results – sometimes ahead of a brand website. The unhappy customers never return, but they unwittingly drive new business his way by complaining online – SEO gone horribly awry.

"When I fly to Las Vegas I look down and see all these houses," he starts. "If someone in one of those houses buys from DecorMyEyes and ends up hating the company, it doesn't matter. All those other houses are filled with people, too, and they will come knocking."

 
The story points out a difficult-to-solve flaw in Google's search algorithm and failings in vendor-quality control of EBay, consumer watchdog groups, credit card companies and issuing banks… not to mention the inability of the New York State Attorney General and criminal investigators to pursue thuggish retailers (it should be noted that Amazon.com's affiliate program came off smelling like a rose in this story.) Mr. Borker found clear incentives for bad behavior and his story lends chilling truth to the old adage that "even bad publicity is good publicity."

This should all underscore the importance of the "Buyer Beware" manta and the need to investigate your vendors before making a purchase.



Photo courtesy of the New York Times

Small Business Saturday

Fighting my way through Black Friday crowds at big box stores for "door-buster" promotions holds little appeal; yet I certainly don't go out of my way to abstain from shopping over Thanksgiving weekend. American Express is promoting the first-ever Small Business Saturday aimed at supporting one of their core market segments: small retailers. If you have time tomorrow, take an hour to stroll down downtown and patronize a local business. If the weather outside is frightful, here are some of my favorite places to find small businesses online:

Etsy: The ultimate affordable art gallery… thousands of artists and craftsmen sell their wares. The selection can be overwhelming, but it's great fun to explore.

Taigan: An online mall filled with some of the finest boutiques from around the country. Each store has a beautifully edited selection of stylish wares.

Desquval: Always ahead of the fashion curve? Here you find quality and value while supporting the ateliers of emerging designers.

Age of Discovery

A few months ago, I discussed the surgical approach internet shoppers take toward making purchases. In contrast, shoppers in the stores channels have the opportunity to linger and discover delightful products they never intended on buying. This is the provenance of product merchandisers who design store windows, build displays and arrange shelves strategically to create a sense of discovery for customers. Until recently, e-commerce sites have used automated suggestions by aggregating data (Amazon's "customers who bought item X also bought Y") or using the brilliant insight that if you're buying sheets, you might also want pillows. The suggestions are usually so predictable that they don't allow space for true discovery of product, which can lead to unplanned (and more profitable) sales.

A new crop of sites is using a potent combination of evolving search technologies and "curated" (merchandised) content to divert the attention of the precision consumer less predictable ways. Nordstrom.com includes a regularly updated sort of e-zine that encourages customers to explore and be inspired by a number different brands and styles. The current issue highlights a stylish couple's unconventional wedding, a city profile of Chicago and a Vogue-worthy event-attire layout. "The Conversation" offers interesting articles and is beautifully photographed – more importantly, it gives customers the chance to spot items (like a pretty Leifsdotter skirt) they wouldn't otherwise through a standard category/brand search.

Perhaps the most exciting new merchant enlivening online shopping is Google's Boutiques.com. The company uses Like.com's (acquired by Google) advanced search technology, which recognizes style genres, shapes, patterns, hemlines, etc. Boutiques.com invited a number of celebrities, stylists, designers and influential bloggers to pull women's merchandise from sellers to create a signature look that is posted in a personalized boutique; customers shopping from the boutique are directed to sellers to complete the purchase. Google tapped into a cultural obsession (and well established product marketing strategy) by hiring celebrities as their merchandisers... each one has a fan base that aligns with a target and position. Site users can also create a personalized boutique by establishing preferences for style genre and product attributes.

Besides being smart and original, both sites are slickly produced and genuinely fun. Best of all, surgical shoppers are encouraged to take time to explore and discover new merchandise.

The Frenzy

Even though it seems like Labor Day was just last week, the holiday shopping onslaught is upon us. In the wee hours of Friday morning, legions of American shoppers will pour into retailers for "door-buster" promotions.

Even though profit margins on must-have items are slim (at best,) Black Friday is an important barometer of the overall enthusiasm for the holiday shopping.  Historically, Thanksgiving weekend accounts for almost 12% of total holiday sales and BF accounts about half that figure. For individual retailers, the stakes are incredibly high: it can be impossible to recover from a weak start to holiday sales. Two years ago, margins quickly evaporated in an attempt to induce spending and move inventory off of shelves… it was a catastrophe. There's cautious consensus out there betting that pent up demand and upticks in both consumer spending this month and optimism about the economic outlook among affluent households will yield a successful holiday.

Much has been made of in recent years of Cyber Monday (horrible name), which is the day Americans return to work and go shopping online. Offers of free shipping and deals consumers may have missed on Friday are made available online. These promotions are being extended as early as the Wednesday before Thanksgiving. This is good news not only for employers who get precious little output on Monday, but also takes significant pressure off retailers' stores channel. Early online promotions are one way to head off stampede concerns at your local Walmart.

So here's a holiday wish for all of you who are braving the stores this year… I hope you find civility and good service in addition to the items you're looking for. When you don't, I wish you the patience and fortitude to blithely smile and keep your sense of humor intact.

Mad for Plaid

Memories of my first semester of b-school came flooding back as I watched Inside Job. The films highlights the enormous negative impact sleazy traders, incomprehensible financial instruments, lazy regulators and misguided mathematical geniuses have had on the world. As I entered school in Fall 2008, no one wanted to work for a hedge fund anymore.

Demand for sterling cuff links and Paul Stuart suits melted along with the global economy. However, an enduring style trend quickly emerged. From Paris to Hong Kong, fine boutiques are stocking heritage brands like Gitman, Woolrich and Red Wing. People are choosing earthy plaids and chambrays over fine English Oxfords. Denim is worn with cuffs rolled up and khakis are comfortably wrinkled instead of neatly pressed. Especially this fall, major American cities look as though they're mostly populated by early 20^th century farm-workers and machinists. Much to my chagrin, facial hair (untamed beards and bushy moustaches) has made a big comeback among the hipster crowd.

It's no wonder consumers are dressing the part of laborers, they are looking to the heritage brands of their childhood in order to associate themselves with people who actually produce things. While it has a decidedly masculine tone, the trend is not limited to menswear. Perhaps the most baffling incarnation of this trend was Ralph Lauren's Spring 2010 Collection, which put a luxe spin on the Grapes of Wrath (one signature piece was a silver lamé overall gown.) The connection to labor doesn't stop with clothes. Moss, the Soho über-chic shelter gallery, just wrapped up an exhibition of aggressively industrial-yet-handmade pieces. Unsurprisingly, the New York Times noted recently that mainstream media has adopted a more masculine version of the ideal male.

I'm sure we'll find a reason to dress to-the-nines again soon, but in the meantime I'm enjoying dressing the part of a lumberjack (sans facial hair) several days a week.

Cookies and Consumer Behavior

Today I'm baking my grandmother's famous (to me) cookie recipe. Grammy made sure not one birthday (neither mine, my siblings nor cousins) passed without us receiving a crisp $5 bill and a tin full of oatmeal cookies. She was not short on grandkids, so this was not an insignificant sacrifice of time nor money. The taste of these particular cookies evokes my happy childhood and my tough-yet-tender grandmother, baking many dozens of cookies in her tiny trailer kitchen.

Consumer behavior experts tell us the most effective messages to potential customers trigger deep associations with the past by tapping into our long-term memory. Think of the moment Anton Ego tastes Remy's creation in Ratatouille… he is catapulted back a happy memory of childhood in the French countryside. Creating these types of deep associations is incredibly difficult (and expensive) for product marketers. Reams of consumer research, thousands of hours of work of talented marketers and brilliantly creative ideas are a start, but don't guarantee a consumer will form the association a company aims to create. Oddly, this is what the cookies reminded me of.

For those of you who want to do some baking, here's the recipe (so easy, an MBA can do it.) Now, not so secret.

Oatmeal Crispies (makes 5 dozen)
1 cube Nucoa (margarine) and ½ cup Crisco (or 1 cup [2 sticks] unsalted butter at room temperature)
1 ¼ cups dark brown sugar
1 cup white sugar
2 eggs
1 tsp vanilla
1 ½ cups flour mixed with 1 tsp baking soda
3 cups quick cooking oats (whole oats are fine)
A generous helping of love (Grammy's words, not mine.)

Directions:
Preheat oven to 350. Cream brown sugar with Nucoa and Crisco (butter), add white sugar and stir until creamy again. Add vanilla and eggs, mix well. Add flour and soda and mix thoroughly. Add oats and Love and stir until there are no dry oats. [at this point, I drop them in teaspoon size balls onto a baking sheet and bake at 350 for 9-12 minutes, until the edge of the cookies are brown, but not burned.] Form in rolls, wrap in waxed paper and chill. Cut into ¼" slices and bake on ungreased cookie sheet 10 to 12 minutes at 350. Makes approximately 5 dozen. Enjoy.

East Meets East

Hermès just opened the first outpost of Shang-Xia, a new luxury lifestyle brand based in PRC for PRC consumers. The brand reflects Hermès' legacy of artfulness and fine craftsmanship. Products like cashmere sweaters and fine porcelain showcase Chinese craft traditions with a contemporary minimalist twist. The small store opened in Shanghai at the Hong Kong Plaza Mall, additional stores are planned for Paris and Beijing in due course.

The establishment of Shang-Xia is evidence Hermès has found its footing in China and has the confidence to experiment. It may also confirm that the PRC consumer is growing more sophisticated. David Tang's Shanghai Tang has an early lead as the original homegrown luxury brand. PRC Consumers are experimenting beyond European and American brands – and are prepared to embrace a distinctly Chinese take on luxury lifestyle.

Shang Xia is the second Asian brand to be launched by a western company. Last month Levi Strauss & Co established Denizen, a denim brand aimed at the PRC mass market. 

Photos: WWD.com

Less is More

Last week in New York, I stopped by to check out the newly restored Rhinelander, which just reopened as the Ralph Lauren menswear store on Madison and 72nd. Even though it's still hidden behind scaffolding and construction scrim, the store opened for business at the start of Fashion Week. The newly constructed women's & home flagship is set to open across the street in a few weeks.

The space recalls a posh men's club... all polished mahogany, deep leather seating and richly colored hues. It goes without saying that the store is beautifully designed and the service was excellent. However, the RL merchandising team could use a lesson in restraint – in this case, less would be more. As I navigated Purple Label, I nearly knocked over a bespoke mannequin and his friend. I also had trouble finding the timepieces, which I was astounded to learn flank the front door – in plain view, but overshadowed by other gorgeousness. The sky-lit fourth floor RLX boutique was a much needed respite from the navigating dark rooms alongside Russian oligarchs.

Nordstrom does it again...

Nordstrom is legendary for great service…. this is the retailer who will take back almost everything and standardized "the walk around" to hand off purchases at the cash wrap. It's no surprise then that Nordstrom's new website, launched last Saturday, is brimming with thoughtful details that put the customer first. Users can now search through products with ever more detailed screening options in every category. Following the mantra that "content is king" the site is building out a section rich with articles and video that feature archetypal customers and their favorite products.

What may be most important change on the site is one you can't see… the inventory policy. While it may sound boring, it's a minor revolution in the retail world that Nordstrom has been linking their stores' inventory with the website. Most web-storefronts treat inventory as wholly separate from stores… hence, a shortage on the website might lead a customer to shop a competitor even though the desired product is on the shelf at one of the stores. It's incredibly hard to implement, but by coordinating inventory between site and store, stores reduce overages, inventory holding costs and markdowns – all the while delighting customers.

As the New York Times reported this morning, the results for Nordstrom's bottom line have been powerful…. Inventory turns are at five-year highs and the company continues to deliver strong profits in a challenging retail environment.

Mary J. Teaches Marketers a Lesson

Back in May, I wrote about the lame launch of Hermès new fragrance, Voyages d'Hermès. Their abstract, expensive and artsy campaign for a difficult to understand product category did not yield much of an online audience. Getting customers excited about fragrance before product trial is really difficult. So how do you successfully launch a fragrance if web 2.0 marketing strategy aren't effective?

Last weekend, singer Mary J. Blige offered the beauty business a powerful marketing lesson… showing that a potent combination of celebrity, insomnia and a good story goes a long way. Blige launched her scent, "My Life," on the Home Shopping Network (HSN) at midnight on Saturday and proceeded to sell 72,000 bottles in 24 hours, a HSN record. At one point in the day, HSN's servers crashed due to sales volume. Blige's personal narrative of triumph through struggle struck a chord with home shoppers, who called in and shared their own stories before buying the fragrance. Strong narrative is a powerful tool often overlooked in launching new products.

The success of the launch seems to have caught everyone off guard – HSN, industry watchers and even Ms. Blige were overwhelmed by the response. My guess is you'll start seeing Coty running this playbook before the end of this year.

Rise of the Precision Consumer

Two weeks ago, American Express Publishing and marketing consultants at the Harrison Group released the 2010 Survey of Affluence and Wealth in America. The report details changes in the spending habits of wealthy consumers since the beginning of the Great Recession. This latest survey is an excellent indicator of long-term effects of the contraction, since consumers have emerged from their foxholes and are spending again.

One important trend documented is the emergence of wealthy "Precision Consumers." Whereas four-five years ago, these folks loosened their wallets in every category – from apparel to electronics to autos, spending liberally on everything. The Precision Consumer is still interested in luxury products but is better researched and more careful to purchase. They spend liberally in select categories where they feel luxury delivers value and fulfills explicit needs and wants.

This week, a MasterCard Advisors Spending Pulse report showed further evidence of the rise of the Precision Consumer. Spending in the electronics category is growing while apparel spending growth is stagnant. Of course, if you saw the lines outside of Apple stores last month, you didn't need to read a bunch of spending surveys to come to the same conclusion.

Are the Rich Like Us?

As retailers fight to get customers back into stores, prognosticators have hoped the high-end of the market would be the first resume spending. Even though luxury's core wealthy customers have not been as hard hit as aspirationals, there is more evidence that the return to old spending habits is a long way off. The highest end of the market continues to cut back spending in all categories. Maybe the rich really are like the rest of us.

Why is this? Well, wealth (like everything) is relative. Even though it's hard to muster sympathy, in high end real estate markets, the lower end is suffering. Foreclosures and short-sale blues are hitting these consumers just as in middle class markets – one in seven mortgages over $1 Million is seriously delinquent. Last week, the New York Times wrote about the spike in payment delinquencies and short-sales in Los Altos, CA, where the median home price is $1.5 million. Note to Los Altos: Palo Alto is snickering at you.

Luxury retailers are adapting to more careful customer behavior. More customers are making multiple visits to stores before deciding on a purchase. These consumers are not only planning purchases more prudently but waiting for possible discounts and prolonging the thrill of the purchase. Neiman Marcus is one retailer retraining associates to work with customers within the longer sales cycle.

I spoke with one customer who related her story of shopping at Ralph Lauren in Atlanta. She fell in love with an evening gown at the store, but wasn't ready to bite at the $6,000 price point. As soon as the dress was marked down to $2,000, the sales associate called her personally and she was ready to buy. Just like us? Relatively.

Retailers inspire customers to spend more and return less

Summer is in high gear and innovative retailers are exploring ways to make customers feel better about spending, maintain loyalty to their brands and reduce merchandise returns. Here's a rundown of some newer initiatives…

• Several retailers are experimenting with stricter return policies. J Crew's summer sale is now the "Final Sale"… all sales are final. Prior to the recession, upscale retailers almost always accepted exchanges and returns – even on clearance merchandise. However, as inventories are more closely monitored by Wall Street, the final sale is becoming a more common move.
• Store loyalty programs are offering more attractive benefits to bring in new customers. Just as Back to School is rolling out, Target is offering Redcard holders a 5% discount on everyday purchases – this is on top of the 10% one-day signup discount. Expect to see several more store charge cards offer similar programs during Holiday.
  
• Sam's Club, Walmart's warehouse store for small business, is running a novel experiment to stimulate spending. The store is offering club members affordable loans in conjunction with the Small Business Association to stimulate enterprise growth. While the company will be lucky to break even on the loans themselves, it is betting that when club members' businesses grow, so will Sam's Club.

Luxury Marketing 101

For a luxury brand to develop its customer base, it must build awareness.  But sometimes, high consumer awareness undermines goals - a brand can upset or drive away core or likely customers. 

I find this 2X2 helpful for understanding why a brand appeals to certain consumers, which is a good place to start devising marketing and partnership strategy.  I divided awareness on two axes: the vertical axis represents mass-consumer awareness and the horizontal is awareness among likely and current luxury customers. 

In the upper right-hand quadrant, you’ll find brands that are instantly recognizable.  These brands make big statements.  It’s no wonder that the brands playing in this space appeal especially to consumers who are be a wee-bit ostentatious...  They like driving a Mercedes that everyone knows is luxury. 

Quadrant 2 contains luxury brands for whom mass awareness is unappealing – but its still very important that luxury consumers understand and identify the brand.  Bottega Veneta derives much of its brand strength by creating the perception of discreteness.  A signature weave, never a logo, makes a subtle but clear statement to peers.

Some brands thrive in relative obscurity... lower left-hand quadrant contains brands that are regional or for luxury connoisseurs.  These customers derive a great deal of satisfaction from being in on a brand-secret and might be upset if it becomes too well-known… even by peers.  John Lobb would have a hard time making customers covet $4,000 shoes without this sort of proposition.

Why would a luxury brand ever want to have low awareness by likely customers and high awareness among a mass audience?  Even if it did make sense, I’m not sure it’s possible.

Luxury Brand Marketing Strategy

For a luxury brand to develop its customer base, it must build awareness.  But sometimes, high consumer awareness undermines goals - a brand can upset or drive away core or likely customers. 

I find this 2X2 helpful for understanding why a brand appeals to certain consumers.  It’s a good place to start devising marketing and partnership strategy.  I divided awareness on two axes: the vertical axis represents mass-consumer awareness and the horizontal is awareness among likely luxury customers. 

In the upper right-hand quadrant, you’ll find brands that are instantly recognizable.  These brands make big statements.  It’s no wonder that the brands playing in this space appeal especially to consumers who are be a wee-bit ostentatious...  They like driving a Mercedes that everyone knows is luxury. 

Quadrant 2 contains luxury brands for whom mass awareness is unappealing – but its still very important that luxury consumers understand and identify the brand.  Bottega Veneta derives much of its brand strength by creating the perception of discreteness.  A signature weave, never a logo, makes a subtle but clear statement to peers.

The third and lower left-hand quadrant contains brands that are regional or for luxury connoisseurs.  These customers derive a great deal of satisfaction from being in on a brand-secret and might be upset if it becomes too well-known… even by peers.  John Lobb would have a hard time making customers covet $4,000 shoes without this sort of proposition.

Why would a luxury brand ever want to have low awareness by likely customers and high awareness among a mass audience?  Even if it did make sense, I’m not sure it’s even possible.

Burgers and Gays

France has long been a testing ground for mass marketers in the United States because of its more manageable size and due to its higher demographic diversity. This week, McDonald's launched a television spot targeting the large segment of LGBT consumers. What is now known as "The McDonald's Gay Ad" is a trial balloon to see if a similar campaign in the U.S. is possible.



The commercial is a little depressing. There are no burgers or shakes to be seen, the music is weepy, and the whole thing conjures up a very uncomfortable association for LGBT people – the time immediately before we come out to our parents. For many LGBT people, this is the most painful time in life. Why would McDonalds choose to highlight this period to build rapport with a new segment?

Bill O'Reilly weighed in with his two cents in his predictable bombastic fashion. In the same breath he compared gay people to Al Qaeda he predicted, "I guarantee you that will not run here." Bigotry aside, a boycott is not something McDonald's hopes to inspire with their ads. There must have been countless marketing execs involved in creating the spot: weighing in, poring over brand message and images and ultimately watering down the ad's impact.  The company took obvious pains to only imply homosexuality – the young man at the center of the ad is on the phone with his sweetie and the raciest thing he says is "I miss you too." Pretty tame stuff.

One melancholy ad does not a test make – especially for the world's largest burger shack. Hopefully, McDonald's will try out several different versions before deciding on a go or no-go to the U.S. My advice?  Next time, try something a little more peppy.

Grocery Shopping in Paris

I had grand plans for food shopping during my time in France. The romance was irresistible: I love the idea of walking down the street with my canvas tote and loading it with farm-fresh vegetables, meats and cheeses al fresco. The reality is that I'm not that guy… I cook for one, my cooking centers more on efficiency than pleasure and my kitchen is better suited to an RV than an apartment. Thus, I've explored the frozen food aisles of grocery stores more than street markets.

All of the grocery stores in Paris are compact, but usually offer a terrific variety of frozen foods, cheese, wine and cured meats. You won't find a broad selection of American brands in any of these stores. Even though the Institut Louis Pasteur is just across the river, France doesn't look kindly on Pasteurization or over processed foods of any kind.

Here's my rundown of the French grocery chains:

Franprix:
The convenience factor plays heavily into my shopping here – there's a store right across the street from my apartment. The selection in all categories is limited, however the prices are usually quite good, especially for meats. They have a decent selection of frozen foods although the fresh produce looks a little tired. With the good prices comes a big tradeoff: inferior quality. Regularly, I see less than fresh chicken for sale. 

Monoprix: This is France's answer to Target. On the ground floor you'll find house wares, apparel, electronics, stationery and sporting goods. Upstairs (or down in some locations) you'll find the grocery section. Prices are decidedly higher than at Franprix, but so is variety and quality. Monoprix's selection of fresh seafood is lame, but their prepared foods (salads & sandwiches) are the best of the bunch.

Carrefour City: I was super-interested to shop Carrefour, because it has been competing so aggressively against Wal-Mart in the Asian market. Carrefour was – hands down – the best place to shop in Bangkok. In Paris, too Carrefour City is my favorite of the stores – they have great selection, high quality fresh foods and a well-priced private label. What I noticed most was that the look of the store was so put-together, the lighting is soft and the walls are painted a dark grey which combine to highlight the product.

Leader Price: This is the bottom of the barrel in terms of price. Much like Aldi, this is a limited assortment grocer that sells only their store brand. This can be an excellent store for budget shoppers and folks looking for packaged goods. It is a lousy place for fresh food of any kind: meats, cheese & produce.

Wal-Mart's Fashion Sense

The only time I can recall buying clothes at Wal-Mart was when I was driving my grandparents' car to Palo Alto from their home in Las Vegas. St. Frances of the Highway, the patron saint affixed to the sun visor, did not protect that 1984 Mercury Topaz from suffering a blowout midway between Barstow and Baker. My sister and I were stranded for hours in the middle of the Mojave Desert with only the clothes on our backs. Once we got ourselves towed to Barstow, we pulled into the parking lot of a Wal-Mart Super Center, where the tires were changed (all four) and my sister and I picked up the things we needed to spend another night. In addition to toiletries, I purchased socks, underwear and a clean t-shirt and thanked the heavens for Wal-Mart.

It seems I'm not alone in avoiding Wal-Mart for clothes. WWD published an interesting article yesterday on the many strategies the company has attempted to kick start their apparel business.

"Even as the world's largest retailer powered through the Great Recession while its competitors stumbled, apparel lagged while food and areas such as consumer electronics soared. And the problem has only become more intense now that the economy has begun to recover and Wal-Mart's competitors are closing the gap.

Wal-Mart is well aware of the weakness. Vice chairman Eduardo Castro-Wright last month said the retailer's apparel business was "below expectations and continues to be a work in progress" as the company reported a 10 percent increase in profits to $3.32 billion in the first quarter ended April 30 on a 5.9 percent rise in sales to $99.85 billion, although same-store sales in the U.S. dropped 1.5 percent.

Contrast Target Corp.'s first-quarter results, which reflected a 2.8 percent jump in same-store sales. Target reported a 29 percent increase in first-quarter net income, driven by higher sales of more profitable categories such as clothing."

One reason apparel customers may stay away is the perceived compromise a customer makes when shopping for clothes at Wal-Mart. In order to get the great price, they have to accept tier-two brands and a lower level of fashion. This might be a perfectly fine trade-off in categories where outward appearance and social acceptance play less heavily (grocery, electronics, housewares.) But for clothes – brands and trend matter deeply. In contrast, Target doesn't ask customers to compromise… customers can find top brands, on-trend private labels and brand extensions of top designers.

How do you think Wal-Mart can turnaround their apparel business?

Seeking Inspiration

For many of my b-school classmates, this is an exciting time of new jobs, new cities and new digs – they're setting up a permanent home for the first time in two years. For them, the nomadic student life has come to a merciful end. Some, no doubt, will carry on the dorm inspired living that centers on the question "how can I make my 65-inch plasma/PlayStation/Wii console a focal point in my home?" Others are looking to create an equally personal expression of home by tackling some serious decorating. I've always believed in the high ROI of living well.

The stress associated with decorating can lead to a sort of decorating paralysis… or worse, purchases one ends up regretting in a few weeks or months. Before blowing a signing bonus at your local IKEA or Pottery Barn, I encourage nesters to seek inspiration and develop a plan before getting all starry eyed over that Hänstrūmgorg Sofa.

Apartment Therapy offers a daily record of stylish urban homes. The ideas are often practical, always chic and usually completed stretching a dime. Every week, AT features the best finds on Craigslist from coast-to-coast and every year holds the Smallest-Coolest Apartment contest, which I have vowed to win in 2011. Stay tuned.

Elle Décor just launched a room-by-room look book with all sorts of luxurious inspiration from homes of the likes of Tamara Mellon, Nacho Figueras, John Derian et al. I warn you, this site inspires odd questions: why paint when you can wallpaper… or cover your walls in fabric… or leather… or mother of pearl tiles? The look book will give you a sharp eye of what you want and need in a room before heading to Craigslist or the mall.

If you find the homes in the places above are bit tame for your taste, The Selby is in Your Place tracks the homes of artists and designers all over the world. While the design choices are far from practical, they can be quite inspiring. These folks live full-throttle in the world of creative ideas, which is reflected in their homes.

Thailand Source List

Admittedly, there have been better times to go to Thailand than now. With protesters from the north occupying the streets of Bangkok and the State Department warning against non-essential travel, it's understandable why folks would shy away from a visit. However, some of my favorite sources in the world for textiles and craft are here. Items that can't fit into your bag can be shipped for a reasonable price. Below are a few sources I always recommend:

Suan Lum Night Bazaar (Wireless Road, Bangkok): Why put up with the midday heat and crowds of JJ Market, when you can wait to shop more comfortably in the evening? Here in the center of Bangkok, you'll join savvy collectors of craft and antiques. Grab a beer, a plate of ก๋วยเตี๋ยวผัด and enjoy the band in the beer garden before you map out which of the hundreds of stalls you'll visit.

Vila Cini Silk (30 Charoenrat Road, Chiang Mai): Located in an elegant townhouse just across the river from the center of Chiang Mai is the best source for contemporary Thai silk. This isn't a place to find prints, Vila Cini weaves textural patterns out of raw silk. There are a wide range of timeless, elegant and modern home accessories, apparel and bulk fabric… and all for a fraction of prices you'd see at Gump's.

Siam Paragon (Siam MRT Station, Bangkok): The fifth floor of this otherwise ordinary luxury mall is a wonderland of contemporary Asian design. If your time in Thailand is limited or you forgot to get souvenirs until the last day, Paragon's fifth floor is a one-stop chock full of top notch art & craft, furniture and accessories. Authentic craft is the key here, you won't find any of the disposable tchotchkes sold on every Bangkok street corner.

Jim Thompson Silk (Multiple Locations): No trip to Bangkok is complete without a visit to the home and store of Jim Thompson, who is widely credited with revitalizing the Thai silk industry in the 1940s. His brightly colored fabrics were made famous in the film version of The King and I. While some of products and designs are a bit stale looking, there is still much to love: block printed linens, screened printed silks and elaborately embroidered pillows.

Hermès' Social Media Problem

Luxury goods firms are finally engaging in social media – some dive right in and experiment with lots of different tactics (LV), others are more cautious (Burberry), while others are just dipping their toe in the water. A couple weeks ago, Hermès launched a new perfume, Voyage d'Hermès, with splashy and expensive banner ads on some of the most trafficked websites, including the New York Times and Le Monde. The banners pointed to a site loaded with beautiful content that hit upon the Hermès' lofty brand theme of exotic travel. Customers can share their own dream travel-experiences… these varied from a candlelight picnic for two on the floor of Sistine Chapel to scaling mystical peaks in far off lands. A Facebook fan group was set up and viewers are encouraged to share the video with friends. It seemed all the key elements (content, networks and engagement) were set for a social media hit.

Two weeks and millions of dollars later, only 40 dreams have been shared on the site and the Facebook page boasts a whopping 70 fans. The video has views numbering in the tens of thousands on You Tube, a resounding flop by Web 2.0 standards. What went wrong? I have my theories:

• The online community has never interacted with Hermès before. Hermès (the parent brand) has never engaged in social media, so there's no core audience with whom it can share the launch and drive traffic.
  
• The level of customer engagement (thinking of a story, writing and editing it) is far higher and more complex than it should be. It also doesn't help that this area of site started with zero examples of content, making it socially risky for the first users to engage. Burberry's Art of the Trench requires only a photo and began with a stable of professional examples to which amateurs could add.
  
• Perfume, especially a new one, isn't a product that lends itself well to digital fandom… the reason is obvious: you can't smell a perfume online. The strategy might work well-established scents, like Chanel No. 5, for which we have sensory memory to reference. It's far easier to become a fan of more tangible Hermès products such as scarves or leather goods.
  

What do you think Hermès could do to improve their social media strategy?

Introducing: The (critical) Customer

J.B.'s Delightful World is now The (critical) Customer. I figured it was time to hit upon a more singular theme than the "world" and seem to keep returning to discussions of shopping for products or services and customer experience. I look forward to keeping you updated on my favorite haunts and extraordinary service. Of course, I also won't hesitate to call out less than delightful encounters.

My apologies if the banner photo is jarring, it's a work in progress.

What the World Needs Now?

Nike's answer to this question is: another fitted polo shirt. In advance of the World Cup the athletic brand has plastered the Paris Metro with ads featuring famous footballers, including a brooding Cristiano Ronaldo and his multicultural posse. To my eye, the campaign lacks the characteristic 'oomph' one expects from Nike, doesn't relate to the brand and the product is downright dull. That said, I do like the flower emblem made up of Nike swooshes.

Paris Source List

With my nesting instincts kicking into high gear and the Euro tanking (dreams really do come true,) I'm on the prowl for additions to my next home. I scouted out some wonderful places for housewares all over Paris. These stores all deliver high-style, originality and craftsmanship without breaking the bank. 

Les Fees (19 rue Charlot, 3é): The name means Fairies, which inspired a beautiful "Midsummer Nights' Dream" collection of home accessories. This is a wonderful source of animal and nature inspired ceramics and glass, as well as handmade wool pillows and throws.

Olivier Desforges (94 rue Saint Antoine, 4é): France is known for producing some of the world's finest linens. Olivier Desforges holds to the high standards of this old-world craft while creating unfussy contemporary designs.

Flamant Home Interiors (279 rue Saint Honoré, 8é): Offers authentic French-country inspired pieces for the home, this store is what Restoration Hardware aspires to be. The accessories are particularly impressive and the prices are surprisingly reasonable.

Bookbinders Design (53 rue Vieille du Temple, 4é): Behind the doors of this tiny shop lies a wondrous world of brightly bound books and folios, stationery and things to keep your life stylishly tidy.

Big Happy Day

Cinco de Mayo 2010 was a day worthy of celebration – beyond toasting Mexico's victory over the French with frosty margarita. Two of my oldest friends and favorite people, Chris and Vignetta, had big life-changing days. Vignetta married her longtime beau, David, in a small ceremony on the Eastern Shore of Maryland. On the other side of the country, Chris and his lovely wife, Alyse, welcomed the newest member to their growing brood: Tate.

It's all exciting stuff… congratulations to the newlyweds and the newlyparents!

Soundtrack of Life

I grew up in a musical family: my grandmother play any almost song on the piano by ear, my mother teaches music in the Palo Alto public schools and my father played a range of folksy instruments including guitar, country fiddle, banjo and washtub bass. Dad and his friends even had a band with the cheeky name "The Harmony Grits." I always admired his adventurous taste in music. His interests ran the gamut, from blues to classical, Simon and Garfunkel to Led Zeppelin. He devoured books about composers, bands and music history.  Even though I was not blessed with musical talent, I always prefer living with music to living in silence.

My biggest offense in regards to music is that I consistently overplay the same things until everyone around me rolls their eyes. Case in point: Death Cab for Cutie. I'm a little lazy and find discovering new music I love can be a bit of a chore, so I usually rely on the advice of friends to help me diversify my collection. Over the past few months, my best music purchases have resulted from searching for things like "Cadillac CTS commercial music" on Google and then quickly adding them to my iTunes. Buick might make cars for retirees, but the ads feature The Airborne Toxic Event. Cadillac features a clip from Phoenix's brilliant album, "Wolfgang Amadeus Phoenix." Compilations are also a great source for discovery. For instance, the movie "(500) Days of Summer" also had a splendid soundtrack featuring The Temper Trap, whose album "Conditions" makes fantastic accompaniment for running.

So the next time I find myself fast-forwarding through commercials on my DVR – I'll remember I might be passing on the opportunity to find my next favorite band.

BABIES. ARE. COMING.

I'm not usually one to coo over kittens, puppies or babies, subjects that fall more in the territory of Cute Overload, but this trailer for "Babies" the movie is completely charming. The documentary charts the first year of four babies from Mongolia, Namibia, Tokyo and San Francisco. The film premiers Friday May 7 in the U.S.

The director, Thomas Balmès, isn't trying to make a grand statement about cultural differences. "It's not a National Geographic film," he told WWD. "The differences between these babies are very small. All four have parents that give them attention and care. This film is simply about what it means to grow up."

The excellent music in the trailer is Sufjan Stevens "The Perpetual Self or 'What Would Saul Alinsky Do?'" from the album The Avalanche.

The Bed Wars

The end of business school has brought on a serious case of daydreaming… mostly about what the next step will bring. Mind you, I have absolutely no idea of where I'll be living or what (exactly) I'll be doing to pay off these loans… which is beginning to stress me out. However, when the going gets tough, I start nesting. Since I packed all my earthly belongings into storage and put my bed up on Craigslist, I've been wandering through home stores in Paris, poring over shelter magazines and have become something of a minor expert on bedding.

The details of my design choices are just beginning to form… but what I really would love to do in my next apartment is to recreate one of those wonderfully comfortable beds you see in most upscale hotel chains. You know… the deep mattress, pressed linens, double comforters, triple-sheeting, big fluffy pillows, etc. I admit that the hotel-bed-at-home isn't an original idea… but it wasn't so long ago that hotel chains were known for the sort of scratchy sheets and worn-out mattresses that had you longing for a night at home.

Starwood's Westin brand fired the first shot in the "Bed Wars" by creating the Heavenly Bed in 1999. Legend has it the CEO tried out hundreds of different mattresses and linens in his Connecticut home before approving what became the first branded hotel bed. Starwood rolled out bed programs throughout its brands, Marriott vowed to replace every mattress in their chain, then Hyatt and Hilton both followed suit. Radisson uses the Sleep Number bed and Kimpton outfits many rooms with extra long beds for tall guests. A good night's sleep doesn't stop at the mattresses and sheets, now hotels are throwing in sleep masks, sound machines, earplugs and specialized turndowns.

Customers aren't the only ones delighted by the battle, the bed wars are big business. Marriott spent over $190 million on their bed program from 2002-2005. Analysts estimate that in the height of the bed replacement initiatives, hotel companies were spending almost $1.5 billion annually on mattresses. The beds seem to pay their way, research by Marriott indicates that the branded bed will allow them to charge $30 more per night and Westin says customers are willing to pay $12-20 more to sleep on a Heavenly Bed.

I feel a nap coming on.

Death and Drama

On Thursday, I visited the Cemetery at Père Lechaise, Paris' most notorious final resting place. As the elaborate crypts and statuary indicate, this is a cemetery for glory-seekers… this is where drama queens rest for eternity. Edith Piaf, Sarah Bernhardt, Oscar Wilde, Gertrude Stein, Baron Haussman, Maria Callas and Jim Morrison all call this home. I included a shot from my very, very creepy visit to the catacombs, as well.

Today the clouds were just bizarre and beautiful – below are a few shots of Notre Dame/Ile St. Louis and from my apartment window.

Running in Paris

Even though it's studded with parks and boats a stunning riverfront, Paris isn't known as a runners' town. That's beginning to change as more Parisians take up "le footing." I've enjoyed finding some new routes around Paris. Of course, there's the routes that run along the Seine or through Bois de Boulogne, but there are also some less-known paths. The shady banks of the Canal St. Martin make for a peaceful run through an up-and-coming artsy neighborhood just north of the Marais. Also, I've found several Parisians who don't know about the beautiful park build on top of the Viaduc des Arts, which runs for 2.5 miles from behind the Opera Bastille out to the Periphérique.

I suppose I should be more supportive of the initiative to run, but I'm just baffled by the outfits some locals choose to run in. I've seen joggers bundled up in perfectly warm weather, wearing polos or button-downs, with sweaters thrown over the shoulders and running in all forms of inappropriate running bottoms: khakis, clam diggers, jeans and Daisy Dukes. I thought, at the very least, Parisians would know how to dress for the occasion. I suppose tech-y athletic wear is one corner of fashion where America still reigns supreme.

On a More Positive Note...

After yesterday's post, I feel I need to highlight the positive, as well. Here are ten things about France that I didn't necessary expect…

1. Everyone wears scarves, even if it's not that cold.
   
2. Paying for a restaurant bill in France is extremely easy. Not only is the tip included on the bill, but the waiter carries a wireless card reader to ring you up at the table without ever running back and forth.
   
3. The convenient availability to cheese – really good cheese.
   
4. The Velib bike share system is totally charming. For a small fee, you have unlimited use of bicycles all over town. I was worried after an article in the NY Times last fall mentioned that 80% of bikes were damaged. That may be true, but the bikes are usable and rolling around Paris on two wheels is pretty fun. Oh, and there's no reason to worry about finding a place to lock up the bike because there are Velib stations everywhere.
   
5. The way the French take their leisure time so seriously. There is no "work-life balance" conversation in France, life always comes before work. There is no way to get errands done on a Sunday in Paris because almost every business except restaurants close.
   
6. The mustard packets you find at condiment stations are all spicy Dijon… there is no French's in France.
   
7. Gas prices are listed on the highway before you exit, so you can evaluate your options.
   
8. Patrons and shopkeepers greet one another and say goodbye upon entering and leaving stores. The "bon jour" and "au revoir" reminds me of the Ritz Carlton's motto: ladies and gentlemen serving ladies and gentlemen.
   
9. Provence, with the exception of Avignon (see previous post.)
   
10. Paris, all of it.

A Call to Arms: End Difficult Discounts

Last month, I destroyed my favorite (and only) pair black dress shoes by not using a shoe bag. My luggage scratched and nearly wore through the leather uppers - they are in need of replacement. I'm not one one to pass up an opportunity to shop and immediately started looking around for an appropriate pair of replacements. After falling in love with chukkas at Colette and brogues at Church's, I settled on a pair of sensible (but not too sensible) brogues within my budget. I found the shoes at one of Paris' most famed department stores, which shall remain nameless because I'm working on a project for them.

Yesterday, I decided to pick up the shoes. I heard of a 10% discount at the store for non-EU shoppers who present a passport and coupon. Along with the 10% coupon, there's a 12% tax rebate for purchases over 175€. After getting home from school, I found the coupon on the store's website, darted off to the copy store to print it up and headed to the store with my passport to buy the shoes. I tried on several pairs of shoes, which confirmed I liked the brogues best. With wedding season and potential job interviews coming up, I needed the shoes and was ready to purchase. I indicated as much to the salesman and presented my coupon.

It turns out I couldn't use the coupon – he pointed to the fine print, which pointed out that "red-dot" stores don't honor discounts or promotions. This was odd, since I was in the flagship store for the brand – how could a coupon for the store exist when you couldn't use it at the main store. What I didn't realize was this was a multi-brand boutique within the larger store... a "shop-in-shop." Unlike American stores, it's typical for French department stores to be mostly filled by concessionaires, whose employees, inventory and service policies are wholly separate from the larger store.  However the separation is unclear to customers.  Not only would I not be able to use the discount, but I couldn't even take the shoes to another register or section of the store, where I wanted to pick up some bed linens. This seemed like an odd arrangement for a department store aiming to bill themselves as the new capitol of luxury in Paris. Frustrated and a bit confused, I left without making a purchase.

This is a perfect example of the "difficult discount." You've seen these a million times... a seemingly generous offer designed to drive traffic into a store, which comes with heavy caveats. These are acceptable at mass retailers and airlines, where customers expect to jump through hoops for a good deal.  However, they're less palatable in the luxury sector because expectations exceed the experience.  In all likelihood if the coupon never existed, I would have made the purchase.  However, the experience became so uncomfortable and confusing because of the discount that I backed off.  I left wondering why the department store wasn't able to get all their lessees on board with a promotion that drove traffic for all brands.

My guess is the store would be better off not offering any discount and present a more consistent identity  than annoy customers with fine print, but perhaps the annoying coupon is a more significant source of revenue than I give it credit.

Road Trip

After a few weeks in the city, I was eager to get out and explore the French countryside I've heard so much about. Because I used to work for a wine retailer, I still had connections (albeit friends of friends) to a few vintners in Burgundy, home to fabled producers of fine pinot noir and chardonnay. Abby and I loaded ourselves and our things into a clownishly small Renault and made a beeline for Beaune and further south to Cotes du Rhone.

Beaune has its charms, however the region – much like its wine – is austere, not terribly accessible to neophytes and requires patience to appreciate. After getting a little bored with our options we headed to a more comfortable hotel in Lyon and then to Avignon. The town of Avignon is billed as a must-see attraction. The Palace of the Popes is lovely and we had a fabulous dinner at Numero 75, but we both were longing for examples of the fine living for which Provence is known. Frankly, we weren't terribly interested in seeing another church, palace or plaza ringed by cafés.

The last day of our trip we took the Twingo out for a spin along the wine trail of Cotes du Rhone. At last, we both thought, this is what we were after… postcard views of sun-baked vineyards over rolling hills, ancient wisteria-covered stone homes sporting happy blue shutters and restaurants filled with tanned patrons clad in perfectly-pressed linen outfits in soft shades of beige and gray. After exploring several tidy medieval hilltop villages, we settled into a lunch under dappled sunlight at a charming restaurant in Gigondas. After a vegetable tart with anchovy cream and mesclun, we ate dorade with a beurre blanc over a red-wine risotto. I drank a white from the town of Sablet, Abby sipped a rosé from Gigondas. Perfection.