PBT Consulting

HOW SAKS FIFTH AVENUE CREATED COMPETITIVE ADVANTAGE, BY USING ROBOTS TO AUTOMATE ITS ORDER FULFILLMENT

Saks Direct 500,000-sq.-ft. distribution center in Aberdeen, MD (Click Image To Enlarge)

R etailers always seem to be fighting through notoriously tight operating margins, so any competitive advantage that accrues to the bottom line is welcome.

Saks Direct, the high-flying e-commerce division of Saks and companion of the high-end Saks Fifth Avenue retail stores, is certain it has found a nice fulfillment advantage over some of its rivals for consumers’ online shopping dollars.

The humdrum world of order fulfillment and product distribution hardly matches the luxurious and legendary Saks brand. But an ambitious decision two years ago to revamp the company’s fulfillment processes allowed Saks Direct to meet equally ambitious 2011 holiday shopping season delivery opportunities.

Casting aside its fixed warehouse automation systems for moving product, Saks took a capital-intensive leap of faith and began implementing a mobile-robotic approach to picking and packing for Saks Direct at its 500,000-sq.-ft. distribution center in Aberdeen, Md. Michael Rodgers, executive vice president and CIO for Saks, says the new fulfillment system allowed Saks Direct to promise Christmas Eve delivery for customers ordering as late as the day before.It seemed to make a difference: Saks Direct reported a 21 percent increase in fourth quarter sales from the same period in 2010.

Rodgers says. 

“That’s a competitive advantage.  I don’t know how many of our competitors were able to do that and how many weren’t. I just know that we were, and we didn’t break a sweat doing it.”

Efficiencies created

Breaking a sweat in the Aberdeen DC isn’t for humans anymore. With the Kiva Mobile-robotic Fulfillment System, hundreds of “robots” do the grunt work, automatically moving products of different shapes and sizes on mobile, modular shelving units across the DC floor. The robotic-drive shelving units are guided to workstations where associates await — a process Kiva markets as “Goods-to-Man Order Picking.”

 

Peter Blair, Kiva senior director of marketing, says the system reduces cycle time through efficiencies of scale as associates can pick, pack and ship orders more quickly without having to move around the warehouse floor to locate products.

Blair says.

“Say Mrs. Smith orders a pair of shoes, a dress and some earrings.  In most cases, you have two options. Either one person goes out with the cart and walks miles around the warehouse … [or you] take three people and send one over to get the dress, one over to get the shoes and one over to get the earrings.”

The heart of the Kiva Systems' mobile-robotic fulfillment are the bright orange mobile robotic units which move inventory shelves from their warehouse floor locations to the worker stations where a human picker pulls the items ordered.  This eliminates warehouse people from having to walk all over the warehouse to pull inventory items off the shelves (Click Image To Enlarge)

Kiva Systems stations include a stock picker who pulls stock items, mobile inventory pods attached to shelves and mobile packaging pods which bring empty boxes for packing (Click Image To Enlarge)

Blair explains that efficiencies are created because all the robotic drives do is ferry products to workstations. Associates use hand-held barcode scanners to point to the shelf to verify the product. A light on the shelf activates indicating the location of the item, accommodating product elements like size and color. Once done, the robotic drive moves to the next workstation, leaving another pod ready in the queue to deliver product.

The scanning system leaves little to chance, while enabling associates to pick multiple orders simultaneously and completely.  Blair says.

“It’s very nice for the worker because it is very accurate.  They don’t have to think too much about what they are doing. It’s very clear.”

Increased space & flexibility

The Kiva system covers inventory control, forward replenishment, picking, packing, shipping sortation, finishing and quality assurance. With shipping sortation, for instance, orders can be picked depending on their destination. If the delivery is going from the East Coast to the West Coast, the order might get picked and packaged earlier in the workday to accommodate air travel schedules.

Rodgers says going to robotic fulfillment from a manual operation was a strategic decision to create leverage from expanding consumer interest in online shopping. Online spending during the 2011 holiday season (November 1 through December 31) reached $35.3 billion, according to digital research firm comScore – a 15 percent increase from 2010.

Rodgers says.

“This was a big bet Saks made ... during the throes of the recession.  We asked, ‘What are some of the big bets we can make that are going to make a difference when we come out of this recession?’”

Rodgers says mobile-robotic fulfillment worked so well for Saks that the company implemented the system at Aberdeen much sooner than anticipated. Saks Direct initially converted four departments to Kiva, completing that phase by September 2010. The company waited to complete the remainder of the conversion so as to not interfere with the impending 2010 holiday shopping season, though executives already were convinced of its benefits, Rodgers says. Saks completed the makeover by June 2011, well ahead of the 30 months planned.

Rodgers says.  

“It is a relatively new technology, bu5t from the day it started to today we haven’t had problem one. The biggest thing was how fast we could get the rest of it converted.”

Rodgers says two other benefits of the robotic system are space and flexibility. As online shopping is expanding rapidly among consumers, so is the need for retailers to keep more inventory in warehouses to satisfy service requirements for shipping and delivery. With dynamic shelving, Saks could create 30 percent more space at Aberdeen.

He says.  

“It maximizes the issue of shelving [because] it’s a non-human environment.  People don’t have to walk up and down aisles, and you can pack items in more closely.”

Rapid product delivery 

As it expands its omni-channel marketing efforts, Saks is seeking to grow its distribution footprint – possibly to new facilities. Since the Kiva system is based on a mobile principle.  Rogers says.  

“I can pick it up and move it to other locations."

Blair says that in today’s e-commerce consumer environment, superior customer service demands super-fast product delivery.

He says.  

“It used to be that [retailers] could take a week to get you something.  That has changed. Everyone now expects that shipping is going to be quick and that it may even be free. Consumers also expect to have value-added services like gift wrapping and all those other things. Expectations have gone way up.”

Rodgers says the benefits from robotic fulfillment have been like a rallying cry for Saks.

He says.  

“We’ve done things our competition hasn’t done.  Everybody feels really happy about it. It is one of the things we hold up as a strategic investment that is paying big dividends for the company, not only from a return on investment standpoint but also from a service standpoint. That’s probably the most important thing in the dot-com arena.”

COMMENTARY:  Kiva Systems delivers accuracy, productivity and flexibility across a wide range of products, processes and industries.  Kiva distribution operations handle products from aspirin to audio components, books to bath towels, crutches to candles, diapers to dishes, elbow pads to earrings, fan belts to folders, golf balls to ball gowns, hair gel to hand bags…well, you get the picture. If a product is picked as eaches or cases to satisfy orders, a Kiva system will handle it more accurately, productively and cost-effectively than any traditional automation approach.

Kiva automates eCommerce and catalog direct-to-consumer fulfillment, business-to-business order fulfillment, retail store re-stocking operations, industrial MRO and parts distribution, work-in-process parts supply functions, medical and hospital restocking programs and other order processing operations across a diverse spectrum of vertical markets. Kiva Systems has implemented its mobile-robotic order fulfillment system in these markets.

• eCommerce - Kiva is widely recognized as THE solution for eCommerce fulfillment.
  For internet retailers the fulfillment center is the store and customer satisfaction is the top priority. Kiva makes it possible to pick eaches and cases as productively as full pallets. Kiva builds accuracy into the solution and enables just-in-time order fulfillment. Light directed picking, put-away and order consolidation combined with barcode scanning and multiple methods for confirming quantity ensure that inventory and orders are 99.9% accurate. Kiva does not require batching and waving of orders so any online order can be processed in as little as 15 minutes from the time a consumer submits an order to when a picked, packed and labeled package is sitting on a delivery truck.  Additionally, Internet retailing often involves large assortments and strategies for offering the 'long tail' of goods selection that's impractical in brick-and-mortar stores. This imposes both storage and productivity challenges on eCommerce fulfillment operations tasked with handling high volumes of individually slow-moving goods.
• Retail - The Kiva solution allows retail distribution centers to improve service and lower inventory levels for the enterprise while improving distribution productivity.  Kiva makes it possible to pick eaches and cases as productively as full pallets.  Kiva delivers just-in-time store replenishment.  By integrating store front-end systems with Kiva's back-end order processing system, retailers are capable of selling an item at store level and picking a replacement item in the distribution center within minutes. It is even viable to ship the store replenishment order on the same day. 
• Medical Devices & Supplies - The Kiva solution simultaneously delivers speed, accuracy, productivity, and flexibility while meeting the challenges imposed on distribution operations by the inherent quality concerns of the medical supply chain.  With Kiva it is possible to pick eaches and cases as productively as full pallets. Kiva builds accuracy into the solution and enables just-in-time order fulfillment. Light-directed picking, put-away and order consolidation, combined with barcode scanning and multiple methods for confirming quantity, ensure that inventory and orders are 99.9% accurate.  The Kiva warehouse automation system was designed to meet medical device order fulfillment challenges while delivering operational efficiency and labor savings for distribution center operators.
• Apparel & Footwear - The Kiva solution enables apparel and footwear distribution centers to improve service and lower inventory levels for the enterprise while actually improving distribution productivity. Kiva makes it possible to pick eaches and cases as productively as full pallets. Kiva delivers just-in-time order processing. Kiva customers use the system to store and process single garment picks, cut-case picking, full case picking, garment-on-hanger selection, lay-flat handling, bagged goods, boxed goods and shoes of all size, shape and type. If your company is involved with distributing apparel and footwear products, Kiva has a solution that works for you.
• Health & Beauty - Operations that deal with health and beauty care (HBC) products are excellent candidates for automating with a Kiva solution. Cosmetics, skin care, hair products, vitamins, supplements and similar goods are often picked in each and case quantities to replenish retail stores and salons or to ship directly to consumers. High SKU counts are normal. There are a multitude of packaging configurations to deal with - inner packs, outer packs, cases, clamshells, peg-and-hook-friendly hanging packages, tubes, vials, bottles, and boxes of various shapes and sizes. Additionally, due to formulations and color choices many different products look almost identical which makes it a challenge to pick them accurately. The average warehouse worker would be hard pressed to tell the difference between tubes of red, ruby, scarlet and passion sunset lipstick without some systematic aid in the picking process.
• Other - Kiva automation solutions deliver accuracy, productivity and flexibility across a wide range of products, processes and industries. As opposed to traditional systems where many items are considered "non-conveyable," most items will work with Kiva. Kiva is flexible enough to handle just about any product that a single human can pick alone. Every new customer challenges us to handle at least one item we haven't seen before.

Kiva Systems' major customers include:

• Acumen Brands - ecommerce retailer
• Boston Scientific - medical device manufacturer
• Crate & Barrell - Housewares retailer
• Dansko - Footwear, socks and healthcare apparel manufacturer
• Diapers.com - ecommerce retailer 
• Dillard's - Fashion apparel, cosmetics and home furnishings retailer
• Drugstore.com - Drug internet retailer
• Gap - Apparel, footwear and accessories retailer
• Gilt Group - Designer fashions retailer
• Office Depot - Office supplies and equipment retailer
• Saks Fifth Avenue - Apparel, footwear and accessories retailer
• Staples - Office supplies and equipment retailer
• Timberland - Footwear manufacturer and retailer
• Toys R Us - Toys retailer
• Walgreens - Drug retailer

UPDATE: On March 19, 2012, Amazon.com announced that it has agreed to acquire Kiva Systems for about $775 million in cash. It is considered the latest bid by the online retailer to streamline its growing distribution network.

 Courtesy of an article appearing in the April 2012 issue of Stores Magazine

WHAT GOOGLE'S AUGMENTED REALITY HEADSUP DISPLAY (HUD) GLASSES NEED TO SUCCEED: DESIGNERS LIKE PRADA AND GUCCI

Google's augmented reality headsup display (HUD) glasses (Click Image To Enlarge)

ANDROID IS SLOPPY BECAUSE GOOGLE LICENSES THE SOFTWARE FOR ANYONE TO USE. BUT OPENING PROJECT GLASS’S HARDWARE TO EVERY FASHION DESIGNER IN THE WORLD COULD HAVE A VERY DIFFERENT RESULT.

When you buy an Android phone, it means very little. The phone could be made by anyone. The case could be bulky, thin, sturdy, or clunky. The screen could be one of the sharpest or blurriest on the market. And worse still, the software itself could be skinned to something unintelligible. Android is a fragmented mess.

Google has handed over the keys to their flagship mobile product to a bunch of companies who are often brilliant at engineering but rarely all that tasteful when it comes to design. So despite having every company but Apple making Google phones, Apple is still, somehow, making the most beautiful hardware. An iPhone might not have 4G like some Android phones on the market, but Apple has style and that counts for a lot.

 

While Apple’s closed system offers covetable design, Google’s open line of phones only gets larger and more confusing. Google is ostensibly selling every phone in the world but the best one. But Project Glass could be very different. It could be the time where, like the early days of Windows PCs, open hardware again becomes a huge advantage. Why? Because Project Glass isn’t a gadget that’s tucked away in your pocket. It’s a fashion accessory that sits on your face. Fashion has its trends, sure, but ultimately, fashion is an expression of individual taste that’s fueled by an uncountable amount of options.

Right now, most of us are cringing at Google’s proposed Geordi-friendly geekwear. But imagine a scenario where Google offered Project Glass as a small hardware kit that any company in the world could use to make Google Glasses. (Somewhat like Microsoft, Google could close the software and open the hardware--or at least parts of the hardware.)

While the typical electronics manufacturers would still produce Google Glasses, it could bring in a new wave of designer manufacturers, too. Instead of HTC, Motorola, and Samsung, we could buy Google products designed by Ray-Ban, Fendi, and Gucci. Then, even retail stores like Target, who spend big bucks to subsidize designer labels for the masses, could get behind the technological platform to create whole new lines of the product. Every corner of the market is covered--from the techies to the moms to those who can actually afford high fashion.

Ultra couture fashion designer Tom Ford's mens and womens eyewear lineup for Spring 2012 (Click Image To Enlarge)

Prada's Spring 2012 Campaign eyewear (Click Image To Enlarge)

The result could be a refreshed paradigm for gadgets. A world once dominated by engineering decisions could be dictated by artistic tastes. Construction wouldn’t just be through milled aluminum or new composite plastics, but wood, textile, fur--any whim of the fashion industry.

And a company like Apple, who could conceivably release a competing product, would be in a much different position. Right now, Apple is the electronics design equivalent to Michael Phelps racing a bunch of children around the kiddie pool. But with every desirable fashion brand in the world behind Project Glass, Apple wouldn’t have nearly this margin on style. They’d finally have some decent competition, all arising from the smallest boutiques to the largest retail stores.

With Apple’s closed approach, their products would resemble a uniform at worst and a single label at best. And Google? They’d run the entire fashion industry.

COMMENTARY:   In a blog post dated April 5, 2012, I reported on the four things that Google needed to do in order to succeed with its new augmented reality headsup display (HUD) glasses.  I also said, 

"Yes, design is important. Yes, its important to do a beta test and get customer feedback, but Steve Jobs said it better with his secrets to innovation, 'Say no to a thousand things,' 'Make a dent in the universe,' and 'Design insanely great products that people will lust for.'"  

I never mentioned licensing Google's AR HUD glasses technology, but it is beginning to make sense to me.  Google is a great developer of technology, but they are not known for their design and distribution.  When they launched their Nexus smartphone, the design was there, but the distribution was a total disaster, and the new phone failed to make it in the marketplace.

Turning the design of the new glasses over to real world designers who are known for their skill in designing fashion will be hugely important.  Well known designers like Gucci, Fendi, Louis Vuitton and Prada could have fun designing Google's new glasses.   Having a well known designer name, instead of just Google, will give the new glasses instant creditability. 

Consumers may not know if they need a pair of Google's new glasses yet, but design above everything else will play a huge role in convincing them they have to get a pair.  The design of the new glasses will have to be truly earth shaking and make a fashion statement.       

Courtesy of an article dated April 15, 2012 appearing in Fast Company Design 

HARRODS OFFERS HIGH-FASHION ABAYAS FOR MUSLIM WOMEN THAT RIVAL GUCCI SHOES AND HERMES SCARFS AND HANDBAGS

 

DUBAI, United Arab Emirates.  Fashion designer Hind Beljafla makes abayas to match the Gucci shoes and Hermes handbags of high-spending women in the Gulf.

 

Incorporating local tradition with influences from high-end fashion, Hind Beljafla and her sister Reem run successful fashion label Das. Based around the Abaya, Hind has continued to be avant-garde in everything from material application to her pursuit of inspirational locations around the world. While the influence from abroad is something they embrace, the Abaya in itself is a specialty piece looking to incorporate the sensibilities of high-fashion. 

Now these women can buy her elegant versions of the black Islamic robes, which obscure the contours of a woman’s body, when they head to London this summer to escape the Arabian Peninsula’s sweltering heat. Harrods started selling abayas by Beljafla’s DAS Collection in June, a month after Qatar’s sovereign wealth fund bought the landmark store.

Muslim women are like any women around the world: They love fashion and love shopping, Beljafla, 24, said in her store here.

Fashion houses in Milan and Paris are waking up to the commercial potential for Muslim women’s clothing that respects religious values and sets new standards for style.

Gas exporter Qatar ranks among the world’s wealthiest nations, with a gross domestic product per capita of $121,000, while Saudi Arabia sits on a fifth of the planet’s oil reserves.

Last year, John Galliano was among 21 designers who participated in a Paris show at Hotel George V, owned by Saudi Prince Alwaleed Bin Talal. The made-to-measure abayas displayed there were worth up to $10,000.

Saks Fifth Avenue, which hosted the event, then put designer abayas on sale for as much as $12,000 at its stores in the Saudi cities of Riyadh and Jeddah. The abayas are displayed alongside designer evening gowns on the women-only floor of a shopping mall in Riyadh’s glass skyscraper, the Kingdom Center, owned by Alwaleed.

Saudi Arabia, which follows a strict interpretation of Islam, forbids mixing in public between unrelated men and women.

Clients have asked DAS to make abayas to match the color of their designer bags and high heels by brands such as Christian Dior, Hermes, Channel, and Gucci, Beljafla said.

Four years ago, Christian Dior SA had one store in the Middle East, in Dubai. It has since opened 10 in the region, in locations including Saudi Arabia, Qatar, Bahrain, Lebanon, and Kuwait.

 

Paris-based Jean-Claude Jitrois has made abayas for several Saudi princesses as well as a collection of 40 for sale at Saks Fifth Avenue.

He said. 

"There is no contradiction between the modernity of European fashion and modernity of Middle Eastern women.  Every culture has its traditions, and you have to respect this while giving it a twist."

Abayas have proved popular at Harrods in London, where summertime visitors from the Gulf throng the streets of the upscale Knightsbridge district.

COMMENTARY:  

Those abayas are so beautiful and ornate.  They look almost royal.  

There are 600 million muslim females, and they definitely have a passion for designer jewelery, accessories and handbags.  Especially handbags.  I can clearly understand why so many designers are flocking to target and design abayas for them.   It's a no-brainer.   I wonder why this has taken so long. 

There are some very extraordinary abayas like the above.  Abayas spelled backwards is SayAba.  Could be a neat name for an Abayas designer line.  

Courtesy of an article dated July 14, 2010 appearing in The Boston Globe    

 

LADYGAGA TO LAUNCH LITTLEMONSTERS.COM, HER OWN SOCIAL NETWORK, A PLACE WHERE HER FANS CAN CONNECT

When you have become so famous that there is no more famous to become, what do you do next? Found a social network devoted entirely to yourself, naturally.

That’s the word from Lady Gaga, the world’s most unsettling pop diva, who is preparing to launch littlemonsters.com, an online home for her millions of fans, in collaboration with Backplane, a social media start-up that counts Gaga as one of its investors with a 20% stake. The network is still being set up, but visitors to the Web address can register for an invitation by submitting their email addresses.

The social network is a key step for the pop superstar, allowing fans to find each other and fuse their energies into a great Gaga vortex, perhaps as a preamble to some kind of cosmic pop event (I’m thinking the star-baby from 2001). After all, successful pop stardom is all about the mystical rapport between the celebrity and her fans, but also between the fans themselves, as they join together in a cult-like, communal appreciation of the celebrity, egging each other on in a mutually reinforcing cycle of teenage tweakedness. This naturally also includes lots of extra-crazy fan-generated content.

It’s not clear how, or whether, Gaga intends the new site to integrate with her many other social media platforms, especially Twitter, which has until now enjoyed something of a symbiotic relationship with Gaga, growing along with her fame. However, if all of Gaga’s 18 million Twitter followers join her new social network and visit at least once a month, it would put littlemonsters.com ahead of sites including Pinterest (with 7.5 million unique visitors in December 2011, per comScore), Barnes & Noble (14 million), and the U.S. Postal Service (15.5 million).

COMMENTARY:    I must confess that I used to follow Lady Gaga on Twitter, but she never followed me back, so I decided right there and then, to dump her.  No pop Diva, no matter how many fans she has, is entitled to call me a her "little monster,".   I looked it up, and Lady Gaga now 18.9 million followers on Twitter 47.6 million fans on Facebook.

Lady Gaga is without any doubt very talented and a great entertainer, but she is also one of the best self-promoters and marketers around.  She is not just a celebrity, but a brand.   The famous "Meat Dress" that she wore to the 2010 MTV Video Music Awards is legendary and is ranked as one of the top marketing coops of all time. Checkout any of Lady Gaga's YouTube videos, and there isn't a single one that has been viewed less than 10 million times.  On May 20, 2011, she partnered with Starbucks to promote her album "Born This Way," and offered free downloads for her hit song "The Edge of Glory."

Lady Gaga is unique among entertainers.  She is totally over-the-top and never willing to be upstaged.  Below is her famous "Egg Capsule" she used to make her grand entrance at the 2011 Grammy Music Awards.

 

Lady Gaga appeared at the 2010 Brit Awards wearing a see-through costume and towering hairpiece designed by the late fashion designer Alexander McQueen.

Click Image To Enlarge

Make no mistake, LadyGaga is quite an entrepreneur, and having her own social network will be a seamless way to drive more traffic to her LadyGaga.com site where she spreads the latest news about her upcoming events and appearances, provides the lyrics to her songs, has a chat room for her fans and has an online shop where she sells her branded merchandise, from jewelry to outerwear, and in five different languages.  Her Lady Gaga Helvetica Monster Sunglasses sell for $25.o0.  You can also purchase music CD's of all her albums from $6.98 to $29.95. 

Here just a few of her Twitter Tweets:

"Really wanna get a new tattoo. Can't decide where. Was thinking on inside of my forearm under the peace sign. Whatcha think." 

"Screw it. I had too much wine."

"Can't believe I have 18,000,000 TwitterMonsters, really rad, was just a few years ago I had barely any."

"Merry X-mas Little Monsters! Listen Here to my UNRELEASED SONG "Stuck On Fuckin' You": bit.ly/t2MVBl 

"@LadyGaga's hot-selling album Born This Way has moved over 8 million copies around the world, Billboard magazine reports." 

It's difficult not to ignore Lady Gaga, but I do hope that you enjoy reading some of my other blog posts about her dated May 20, 2011, June 1, 2011, June 18, 2011, August 20, 2011, December 1, 2011, 

Courtesy of an article dated February 7, 2012 appearing in MediaPost Publications The Social Graf

FOREVER 21'S JAW DROPPING HOLOGRAPHIC FASHION SHOW USES NO LIVE MODELS, WOWS THE CROWDS, COULD SPARK A NEW TREND

Fashion retailer Forever 21 is hosting a series of unique fashion shows worldwide that use holographic images instead of live models.

The promotion, conceived and produced with the help of digital agency space150, kicked off last week in Vienna, Austria. A total of eight shows are currently scheduled, including Brussels (June) and London (July).   Says Los Angeles-based Forever 21 Marketing Manager Kirstin Nagle. A New York show, currently the only U.S. show scheduled, will be in the fall.

The Vienna show, timed to celebrate the opening of the flagship Vienna retail store, gave invited fans and customers the chance to see breaking fashion trends in a runway show comprised entirely of holographic models. It was both a press and consumer event, she says.

FOREVER 21 Holographic Fashion Show - Vienna Austria: 04/29/11 from space150 on Vimeo.

Nagel told Marketing Daily,

"Consumers obtained invites to the event through becoming fans of our Facebook Grand Opening event page.  For our upcoming events marketing and outreach will also be done through social media. Depending on each market and size of venue, a certain number of consumer invites will be given."

The show features a runway first: no live models. Holographic models, wearing designs from Forever 21's new line, walk the runway, disappear into starbursts and climb invisible staircases that light up underfoot.

Says Nagle,

"We know that our customers are tech savvy and stay on top of trends in both fashion and technology.  These shows are a way of connecting with our consumers in both areas."

Forever 21's program of digital brand entertainment began in June 2010 with the introduction of an interactive Forever 21 billboard in Times Square, New York. Also conceived in partnership with space150, the board located on the site of the iconic Virgin billboard, features giant onscreen models interacting in real-time with customers on the streets outside the store. Models snap Polaroids of the crowd in real-time or pick people up and drop them into a store shopping bag.

The brand operates 450 stores in the United States with operations internationally in Bahrain, Canada, Indonesia, Japan, Jordan, Korea, Kuwait, Malaysia, Oman, Saudi Arabia, Singapore, Thailand and UAE (Dubai and Abu Dahbi).

COMMENTARY:   I love Forever 21's leading edge use of holographic technology that does not use live models could be come the way future fashion shows will be staged.  You shoot the fashion show once, using live models, shoot the show using holographic cameras, then take the show on the road.  

Forever 21 repeated its incredible holographic fashion shows in London, Brussels and Glasgow. Here are the videos for these groundbreaking holographic fashion shows:

Forever 21 Holographic Fashion Show in London:

  

Forever 21's Holographic Fashion Show in Brussels, Belgium:

 

Forever 21's Holographic Fashion Show in Glasgow, Scotland: 

 

Forever 21's Holographic Fashion Show in New York City:

 

Holographic fashion shows are destined to become the latest new trend in fashion technology.  The folks at Burberry and Diesel thought so too, and held their own holographic fashion showa:

 

 

Billy Jurewicz, founder and CEO of space150 leads agency’s evolution and approach to modern marketing.

Billy started space150 in March of 2000, during the height of the dot-com crash (I was also there), with only $20,000 of working capital.  Since then, space150 has grown to 140 employees and was named to the Growth 50 by the Minneapolis/St. Paul Business Journal in both 2005 and 2006. (The publication also recognized Billy as a member of their "Forty Under 40" in 2005.)

Before founding space150, Billy worked in the creative department at Fallon Worldwide, on accounts such as Starbucks, Miller Lite, EDS, and Lee Jeans. Prior to Fallon, he worked for the DDB Needham affiliate Milici Valenti Ng Pack in Hawaii, and on several major accounts for BBDS in Chicago, including McDonald’s, Sheraton Hotels, Sprint, Midwest Express, and Aloha Airlines.

Says space150 founder and CEO Billy Jurewicz,

“Forever 21 is a phenomenon. They’re a leader in bringing accessible, up-to-the-minute fashion to customers everywhere.  We designed these holographic shows as a more advanced way to premiere a new line that is more controllable, less hassle and has much greater impact for the same price as a traditional runway event.

Our whole approach at space150 is about destroying convention to create demand. We’re not saying the traditional runway show has seen its end, but this technology and concept really rethinks the idea of what a runway can now do.”

Says Linda Chang, Forever 21's senior marketing manager,

“Our customers are always searching for the next big thing, or fashion trends before they happen. We love that about them, so we are always thinking about how to surprise them, show them things they’ve never seen before and give them new exciting ways to get involved with Forever 21.”

Fashion shows can be very extravagant and costly affairs.  In an article dated November 23, 2009 appearing in New York Magazine, this is what they said about the fashion show costs for Victoria's Secret fashion show (see above)held during New York's 2009 Fashion Week:

"If this past Fashion Week didn't teach you that trying not to be extravagant out of respect for the economic climate and the hardships induced on much of the population is a thing of the past, the Victoria's Secret fashion show is here to remind you! The show, which taped last Thursday in New York, included 35 models along with host Heidi Klum, 1,034 guests, and one $3 million Harlequin Fantasy Bra  (see my blog entry dated October 25, 2010) worn on the runway by Miranda Kerr. Designed by Damiani, it includes more than 2,300 diamonds in various shades. The total cost for the whole affair? About $10 million (not including the bling bra, presumably). But to be fair, they do two tapings." 

Fashion show savings and efficiences could be considerable, including reductions in talent agency fees, make-up and hairstylists, wardrobe transportation, maintenance and storage, travel and entertainment, venue rent, and the list goes on.   I am sure that the model agencies and their models are not going to like the holographic fashion show format since this drastically cuts into their talent fees.  

Forever 21's clever use of social media to market and communicate their fashion shows is part of a growing trend in the fashion industry.  In a blog post dated September 8, 2010, I wrote about the use of social media during the 2010 New York Fashion Week.  Retail designer brands Marc Jacobs, Ann Taylor, Bluberry are just a few of the names that made use of Facebook and Twitter to market and promote their fashion show events and engage with their fans.  Social media marketing is taken so seriously, that there is even a Fashion 2.0 Media Awards event held during New York's Fashion Week, to award the brands and agencies with the best social media marketing campaigns. 

Forever 21 has 4.4 million fans on Facebook and 159,00 followers on Twitter.  They need to get moving on Twitter.  You can read all of @forever21's tweets about the Vienna holographic fashion show HERE.   

In another blog article dated September 14, 2010, I wrote about New York fashion designer Betsey Johnson's (she's one of my favorites) desire to reduce her marketing costs, and her use of location-based social media to promote her brand. Betsey Johnson's use Facebook Places, was the first time that location-based marketing was used in the fashion industry.   

Forever 21's historic holographic fashion show is truly a pioneering effort, but it is still too early to tell whether other fashion designers will adopt holographic technology for their fashion shows.  I am still trying to find out more information about this technology.

Courtesy of an article dated May 3, 2011 appearing in MediaPost Publications Marketing Daily, an article dated November 23, 2009 appearing in New York Magazine

JCPENNEY'S NEW CEO RON JOHNSON, THE GENIUS OF THE APPLE STORES, BEGINS THE TRANSFORMATION OF JCPENNEYS

J.C. Penney just blew up its brand — in a good way — thanks to a new management team with some radical new ideas. J.C. Penney is about to be the most interesting retail story of the year.

New JCPenney CEO Ron Johnson (Click Image To Enlarge)

Late last year, J.C. Penney began building a dream team with Ron Johnson — the man who launched Apple‘s retail stores — as its new CEO. Johnson cut his retail teeth at Target and from there he poached Michael Francis to serve as J.C. Penney’s new president. Francis is largely responsible for Target’s branding and marketing efforts.

And this week, Johnson took a sledgehammer to the J.C. Penney way of doing business. It’s the most exciting thing I’ve seen in retail since Apple opened stores, again with Johson at the the helm.

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There’s a new logo, new spokesperson, new pricing stategy, an investment in Martha Stewart Omnimedia and another designer partnership with Nanette Lepore. All in two short months.

J.C. Penney — now being referred to as jcpenney — is implementing a new pricing strategy, slashing prices up to 40% with to keep them that way year round.  Not EDLP, this fair pricing strategy is designed to keep prices low on the basics shoppers look for frequently and introduce new merchandise on a routine schedule.

Johnson said.

“We want customers to shop on their terms, not ours.  By setting our store monthly and maintaining our best prices for an entire month, we feel confident that customers will love shopping when it is convenient for them, rather than when it is expedient for us.”

It’s a shocking move for any retailer, let alone a department store where hi-low pricing and promotions have long been the norm.

There will also be an entirely new layout, with brands merchandised in shops within the store rather than endless racks and runs of shelves. There aren’t many new ways to display merchandise and any effort to re-invent the in-store experience will be welcome with shoppers and provide a reason to buy in stores, rather than looking for bargains online.

Johnson said.

“The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America’s favorite store.  Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated – fair and square.”

The new logo is meant to evoke the American Flag, a move likely to resonate with today’s shoppers and set it apart from the rest of the retail pack.

Most retailers make tentative steps toward change. They take a year to develop a new store format, reconfigure a layout or commission a logo. Then they test it, refine it and test it again. It can take years to roll out changes to a large store base and often before that happens, the plan changes again.

But Johnson is anything but typical. Changes begin on Feb. 1 and  in August jcpenney will begin updating all stores with new merchandise and presentations, adding two to three shops each month through 2015 in what management is calling a complete transformation.

It’s refreshing, daring and probably exactly what the retailer needs. It’s probably what a lot of retailers need but few have the leadership and support to do it.

COMMENTARY:    JCPenney needs a transformational change and it will be very interesting whether JCPenney's new CEO Ron Johnson can transform JCPenney into America's favorite department store.  

Apple Stores reflect Apple's culture (or should I say, Steve Job's culture) and are beautifully appointed, slick, high-tech minimalist stores, with Apple products beautifully displayed on wooden tables, where Apple shoppers can test drive each Apple product before buying.   Johnson knew that part of the shopping experience includes great service and so The Genius Bar was born.  Under Johnson's stewardish, Apple Stores are the highest grossing per square foot than any other store in the world.  Johnson's strategy at Apple worked to perfection, resulting in ever increasing profit margins for Apple products, while other retailers reduced their prices. 

Johnson had the advantage of starting from scratch with the Apple Stores.  He was able to differentiate Apple Stores from other consumer electronics retailers coming out of the gate.  But, it remains to be seen whether Johnson can truly transform JCPenney, a department store that has been stuck in old-style classic department store retailing.

I like the fact that Johnson is introducing small specialty branded mini stores within the JCPenney store, introduce new merchandise, with names like Martha Stewart and Nanette Lapore.   JCPenney also made another bold move back in December 2010, by moving its entire JCPenney catalog on Facebook.  

I like the "have it your way" merchandising strategy that will be introduced so that shoppers can depend on year-round low prices on merchandise they regularly buy.  

Courtesy of an article dated January 26, 2012 appearing in Forbes

 

EVEN IN DEATH STEVE JOBS IS BEING COMMERCIALLY EXPLOITED, EYEWEAR FIRMS ARE SELLING HIS FAMOUS RIMLESS GLASSES

Never wasting an opportunity, the sellers of the rimless spectacles Apple’s Steve Jobs wore are capitalizing on the attention surrounding his death.

Power Bloom, the Asian distributor of Mr. Jobs’s go-to glasses, German-made Lunor Classic Rund PP, turned its booth at a Hong Kong optical trade show into a small Steve Jobs shrine. In a display case were a pair of the glasses and a photo of Mr. Jobs together with the following text:

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“Steve Jobs 1955-2011: We have lost an ultimate genius. What he has left us are his overwhelming ideas and his favorite glasses.”

Also in the booth were copies of Walter Isaacson’s just-printed biography, with the photo cover of Mr. Jobs in said eyewear.

On manufacturer Lunor’s homepage, there’s a photo of the glasses with the simple text: “THE GLASSES OF STEVE JOBS.”

Sales have “dramatically increased” since Mr. Jobs died, said Garick Tsui, marketing executive for Hong Kong-based Power Bloom. A pair of the minimalist glasses retail for about $450, he said.

“After he passed, many, many clients and customers asked for these glasses,” said Mr. Tsui. He didn’t know the exact number that have sold but estimated it was in the hundreds.

“Steve Jobs was about perfectionism,” he said, as he handled the feather-light, round lenses, which are affixed to slender stainless-steel frames with matching bushings.

Mr. Tsui didn’t respond directly to criticism that promoting the connection to Mr. Jobs could be seen as profiting from his death. He said.  

“People see these as a tribute to Mr. Jobs.” 

COMMENTARY:   I do not promote any of these companies, and if I have my druthers I would never wear rimless glasses, they break too easy.

Courtesy of an article dated November 4, 2011 appearing in The Wall Street Journal blog

 

 

HANNA EMILIE ERNSTING DESIGNS THE 'MOOD COACH' TO SATISFY YOUR BITCHIEST MOODS

Hanna Emelie Ernsting creates a mighty morphin' sofa for the many shades of the human condition.

Furniture designers love to talk about the ways their seating “encourages interaction” and “engenders conversation” and “fosters intimacy.” Which is great, if you like people. For the rest of us, there’s Moody, a clever little couch that morphs to fit our inner Howard Hughes.

The sofa, the idea of recent product-design grad Hanna Emelie Ernsting, has nearly 10 extra feet of fabric hanging off its frame, perfect for being pulled up over your head and around your body to create a soft shield from the world -- furniture shorthand for “leave me the hell alone.” (You can practically see the morose 14-year-olds lining up for this thing.)

Or you could roll the fabric out on the floor like a bed if you’re feeling lazy or throw it all over the place if you’re in the grip of a red-hot temper tantrum. The beauty of the couch is that it can be manipulated to suit every last whim. Think of it as the living-room equivalent of an emoticon.

Ernsting showed the couch as part of a bigger collection -- which includes a Moody chair and a Moody “nest” -- at the design fair IMM Cologne recently. More info on her website here.

COMMENTARY:   The Mood Coach.  What a splendid idea.  I like the Moody Nest coach and Moody Bag the most.  There is something definitely feminine, unorthodox, sensual and naughty about Hanna's designs.  I can definitely visualize Marilyn Monroe, Lady Gaga and Madonna laying provocatively in her Mood Coach.   I am not into the red color fabric, preferring more earthy color tones.  The Mood Coach combinations are endless.  I would like to see Hanna include patterns too.  I think Hanna definitely has found her niche.   Danke!

 

Courtesy of an article dated January 24, 2011 appearing in Fast Company Design

CRAZY COSTUMES PET OWNERS HAVE THEIR PETS WEAR DURING HALLOWEEN

DUTCH DESIGNERS CREATE INTIMACY 2.0, A SUPER-SEXY, E-DRESS THAT BECOMES SEE-THROUGH WHEN THE WEARER GETS TURNED-ON

The Intimacy 2.0 hyper-sexy e-dress by Dutch designer Studio Roosegaarde

Granted, it takes a mountain of courage to wear.

For ladies who don’t have the patience for coy flirtation, here’s something that gets the job done quickly: a sensor-enabled cocktail dress that flashes a whole lot of skin the more excited you get.

 

So say you meet some guy who sends your heart aflutter. The dress responds to your elevated pulse by growing transparent around the (already plenty skimpy) plunging neckline. Conversely, if he’s such a snooze that you’re about two seconds away from flat-lining, the dress stays opaque, sending an instant “no, thanks!”

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Intimacy 2.0 is latest in a series of hyper-sexy e-dresses from the techie Dutch designers Studio Roosegaarde in collaboration with V2_Lab and fashion designer Anouk Wipprecht. Each dress combines embedded sensors and conductive “smart foils” that become see-through when zapped by electricity. But whereas previous iterations would’ve landed you in jail for indecent exposure (one dress went transparent simply by being around other people and covered less than a pastie), Intimacy 2.0 is designed to be flaunted outside of the bedroom. It's still pretty damned racy, though. Big up to anyone who's daring enough to wear it. The rest of us will have to stick to batting our eyelashes.

The secret to the Intimacy 2.0 e-dress is the technology underneath that reacts to the sensual mood of the wearer.  

Click Images To Enlarge

Dresses are available in black or white on custom order through Studio Roosegaarde. More info here.

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COMMENTARY:   The Intimacy 2.0 e-dress is from out-of-this world.  I do hope that see-through e-dresses are the next big thing in fashion.   I truly expect Lady Gaga to add one to her dress collection.

Courtesy of an article dated October 24, 2011 appearing in Fast Company Design