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4 TACTICS YOGA WEAR RETAILER LULULEMON USES TO LEVERAGE WORD-OF-MOUTH FOR THEIR BRAND

Founded in 1998, Lululemon is a yoga and sports apparel company from Canada.

Although its first store was opened in 2000, the company sold $350 million worth of products in their 113 retail stores 8 years later.

In 2012, Lululemon was reported to have the third most productive retail stores in the US, only behind Apple and Tiffany & Co..

According to Nina Gardner, Lululemon’s community relations manager, the company achieved all this almost entirely via word-of-mouth, and with ads in only two publications:

We don’t do ads. All of our marketing is done word-of-mouth and grassroots Gardner said. The only place you’ll see ads is in ‘Yoga Journal’ and ‘Runner’s World,’ two national publications.

Let’s take a look at how a company that started off selling yoga pants managed to grow so big from leveraging on word-of-mouth:

1. Lululemon’s customers are eager to show off their inspirational-poster themed shopping bags, just as they might on Pinterest.

Lululemon is all about living an active life, evidenced by their goal to “sweat every day”, and other activities like breathing deeply, drinking plenty of water and going outdoors.

These values promote a very positive and healthy image, something that customers can relate to and aspire towards. And customers who shop at Lululemon are given tote bags that have the company’s manifesto emblazoned all over them:

Lululemon tote bags image by John Lucas, Postmedia News (Click Image To Enlarge)

The feel-good quotes on the bags serve as a form of “social snack“: something we look at to make ourselves feel better throughout the day.

By associating the brand with these values, customers would feel as if they’re “connecting with her best self” as they buy their yoga pants.

Word-of-mouth action tip: Make something about your product worth showing off to others.

2. Lululemon staff feel more like your yoga or gym buddies – they’ll happily talk to you more about yoga and goal-setting than their products.

Lululemon store staffers wear yoga pants so they feel more like yoga or gym buddies (Click Image To Enlarge)

Lululemon’s store employees “are encouraged to discuss exercise goals with customers and take into account their feedback written on chalkboards in the fitting rooms.” This ensures the staff are better equipped with more information to give personalized recommendations to every customer.

They are also instructed to dress like they were going for a workout, so customers would see them more as people you see in a gym or yoga class, rather than a store employee.

Plus, most people who work at Lululemon are athletic and fit individuals, so they have a lot in common with their customers. This relatibility and similarity makes them a lot more likeable, and customers are more comfortable trusting them.

And this building of relationships is exactly what Nina Gardner is trying to achieve:

"Making sure we’re really building those relationships (with customers) — that’s what really sets us apart from being just another retail store that’s opening up to sell clothes. Absolutely we sell clothes, but we are building relationships. We are supporting communities.”

Word-of-mouth action tip: Don’t rush into selling your products – connect with your customers like a friend, so they’ll like you more, and open up to you.

3. Retail stores transform into fitness and conversation hubs on weekends for free lessons, to give back and get people involved with the brand.

One of Lululemon's in-store yoga classes (Click Image To Enlarge)

For one of their stores in Burlingame, California hosts free yoga classes on Saturday mornings and Sundays, as well as a weekday run club. This practice originated from Lululemon founder Chip Wilson, who used his office space as a yoga studio at night to help pay for rent back in the day.

This, according to former CEO Christine Day, positions Lululemon stores as a “fitness and conversation hub”. It also increases customer engagement, encourages regular visits to the store, and keeps the brand constantly top-of-mind.

What having similar-minded individuals for store employees and free fitness classes in-store does is – it evolves customers’ perception of the brand from being an apparel company to an entity that embodies your ideals, and a community to find like-minded people.

Christian Buss, a Wall Street analyst described Lululemon’s brand identity to a fitness partner:

"They’re selling a brand identity…the model that Lululemon is trying to build is, you’re pretty cool, we’ll be your partner in being your best possible self. And that kind of turns retail on its head."

Word-of-mouth action tip: Leverage your existing assets to contribute to your community.

4. Lululemon engages fitness trainers and athletes as brand Ambassadors to inspire and engage with their customers, so they can feel motivated to keep fit.

Nicole Katz from Yoga 216 is one of the many brand ambassadors of Lululemon (Click Image To Enlarge)

So if Lululemon organizes free yoga and fitness classes regularly all throughout the world, who exactly leads all those classes?

They are Lululemon’s brand ambassadors; yoga teachers and fitness trainers that have chosen embody the brand’s values and lifestyle.

These 1,500+ ambassadors host classes in Lululemon stores within their communities, and according to a yoga teacher from Australian fitness group OzSquad, get support from the brand to pursue any events and initiatives they desire.

Of course, they’re also outfitted with the Lululemon products, so they get to wear free gear while promoting their own yoga schools and the Lululemon brand.

Apart from local yogis and fitness trainers, world-class Olympic athletes are also part of the ambassador program, such as Olympic cross-country skier Sara Renner and Jaime Komer.

Word-of-mouth action tip: Celebrate and promote individuals who embody your brand values, so customers will think of you when they look at them.

Lululemon has always been a brand that connects their products with values that inspire their customers. People buy Lululemon pants because they agree with the values that Lululemon embodies and expresses.

And that can be a powerful thing, as branding expert and author Karen Post explains,

"They’re selling emotion and happiness and joy and feeling good about yourself, … and when companies keep their eye on that in a more focused way, and less on the features of the product, their chances of being a successful brand just go through the roof."

Questions to ponder:

1. What are some values that your target customers live by?
2. Does your company embody and communicate those same values in your marketing?
3. How can you create a positive and engaging community, where your customers can interact with your brand?

COMMENTARY:   Based in Vancouver BC, lululemon is known for their athletic apparel, including clothing for yoga, running and any other “sweaty pursuits.” Customers can not only buy clothing and merchandise but they can also sign up for in-store events ranging from workshops, runs and yoga classes, offered on a weekly basis and tailored to the local surroundings. To personalize the in-store experience, lululemon educators and community ambassadors can be found in every store to talk to customers about healthy living, yoga, exercise etc. The ambassadors program is composed of individuals who adhere to the same lifestyle and cultural ideals oflululemon, and can share their expertise with the local community.

Lululemon Athletica retail stores have taken the store and shopping experience to a new level.    Julia Brunzell, Manager of Store Design at lululemon atheletica discusses the unique in-store experience that the brand provides.

“We are constantly listening to feedback about how guests experience our stores and how they function for our educators. Every store designer works in the stores to experience firsthand how the space is used, what works best for flow, product visibility and efficiency.  In addition, we want every store to feel like a part of its community from the first day it opens; we invite our guests to hang out, chat with our educators and learn about local yoga/fitness studios. Every week, our stores push aside their product fixtures and open the store up to the community for a complimentary yoga class.

Our stores are designed to be conversation starters, while also being fundamentally warm, inviting, eclectic and accessible to everyone. Over the years our fixtures have become more streamlined, modern and modular which allows for flexibility and creativity with visual displays. We are known for our unique, creative and locally relevant storefront designs which range from making a big design statement to a fun reflection of the community we are joining.  For example, our Burlington, VT location is a strong ski community so we used two gondolas as benches outside to create an eye-catching and locally relevant storefront.  At our Houston Galleria mall location, we designed our storefront using glass windows that look like those from a space shuttle, a nod to the nearby Houston Space Centre.”

There have also been many changes within the lululemon brand. Recently, the brand has launched a new fast fashion clothing line, &Go. With apparel ranging from dresses to pants and tank tops, the line is set to be offered online and storewide. With this change comes another in the men’s clothing division. Lululemon is set to open a standalone men’s store by 2016. The brand offers a range of men’s clothing on its website, including jackets, hoodies, pants, socks and underwear. Finally, with lululemon’s latest expansion into the European market, it will be interesting to see how these developments continue to affect the stores and brands initiatives worldwide.

When Julie Brunzell was asked how these changes and expansions affect the store design concepts and whether consumers will begin to see larger stores, pop up shops etc. to showcase the new clothing lines, she said.

“As a company focused on innovation, we are always evaluating how we design our stores and with that comes continuous examination of layout principles, space planning, size and location. We aim to create community and shopping experiences that speak to our guests and settings which vary from city to city. Entrepreneurship is one of our core business values and as a business that is grounded in community, we enable and support store managers to have a hand in creating spaces that resonate with their guests and their community.”

Lululemon Store Of The Future

Lululemon just opened a new flagship store in New York City's Flatiron District. At 11,500 square feet, it's the brand's largest flagship location. Its Union Square location closed its doors.

The Flatiron District is home to many other stores that specialize in athleisure — Sweaty Betty and Athleta, to name a few. But that makes sense: The area has many of the most popular boutique fitness studios — Flywheel Sports, Exhale, SLT, Pure Barre, and two SoulCycle studios that are mere blocks apart.

And Lululemon is capitalizing on that. One of the new store's features, The Concierge, will dedicate floor space to helping shoppers beyond the sales floor.

The Concierge at Lululemon's Flatiron District store in Manhattan (Click Image To Enlarge)

The Concierge will recommend nearby classes and locations, so that the exercise-obsessed shoppers can don their new pants in class. To top that off, shoppers can book classes while they're shopping.

The Concierge will be a hangout spot — there will be a "community board" to help shoppers discover new places to run, new classes, and even new places to eat.

The Community Center located inside Lululemon's flagship store in the Flatiron District of Manhattan (Click Image To Enlarge)

Lululemon will make shopping a luxurious experience, with a coat check, water, a coffee bar, snacks, and a phone-charging station. You can also have your purchases delivered to your home, office, or hotel, so no need for lugging big Lululemon bags around during the day.

The company is focusing on expanding its already-strong community with a new space called Hub Seventeen. Hub Seventeen will be above the store's retail floor.

Carla Anderson, Lululemon's general manager of US retail, said in emailed comments.

"Our stores are inspired by community, from the design aesthetic and in-store guest experiences and classes to our ambassador and studio partnerships."

Chairs hang from the ceiling inside the Community Events Center of Lululemon's flagship store in the Flatiron District of Manhattan (Click Image To Enlarge)

The 5,000-square-foot space will be used for fitness classes, monthly dinners, concerts, art shows, and more.

Lululemon's stores already have yoga classes, but Hub 17 will take it up a notch.

Anderson said.  

"While all of our stores offer in-store yoga and fitness class and events, Hub Seventeen is the first time we created a dedicated community space separate from the retail experience."

The Community Events Center inside Lululemon's flagship Flatiron District store includes an area for yoga exercise demonstrations (Click Image To Enlarge)

Don't worry, Lululemon acolytes — there's a vast retail floor.

The retail floor located inside Lululemon's flagship Flatiron District store (Click Image To Enlarge)

There's a great chance that many other forthcoming Lululemon stores will follow suit.

Anderson said.

"Our flagship stores in particular are designed to elevate the community in new and unique ways, often serving as a testing ground for new guest experiences and retail innovations."

Courtesy of an article written by Samuel Hum appearing in Referral Candy and an article dated April 14, 2015 appearing in Mind and an article dated November 18, 2015 appearing in Business Insider

THE TOP PERFORMING FASHION RETAIL BRANDS ON SOCIAL MEDIA, AND THE TOP SOCIAL MEDIA PLATFORMS FOR FASHION

The climax of the famous speech by Miranda Priestly (played by Meryl Streep) in the 2006 fim, The Devil Wears Prada, is that the sweater Anne Hathaway’s character is wearing has slowly trickled down over the years from high-end runway to “some tragic Casual Corner where you, no doubt, fished it out of some clearance bin.” The implication here is also that the quality and design has declined in those iterations. But these days, Miranda Priestly’s premise would be totally irrelevant. 

Enter Fast Fashion. Fast Fashion includes brands like H&M and Zara, which bring runway looks to affordable retail stores quickly: no need to wait for trickle down as magazines select the best looks and publish them in glossies, or as retailers measure customer response. Now runway looks are live-streamed or Snapped or Instagrammed or live-tweeted by bloggers and influencers, and retail interpretations of those looks are available in your local Forever 21 within mere weeks.

The success of these fast fashion retailers depends in large part on their social media success: Are bloggers wearing your clothes in posts? Are digital influencers bringing in customers through in-store events? Are those customers sharing their own photos of your designs on social?

Thanks to Sprinklr’s new Benchmarking tool, which gives brands access to competitive analytics and insights, which are arguably the most crucial insights in any brand trying to scale, we can now look at the state of fast fashion on social. Sprinklr compared the top four fast fashion retailers—H&M, Zara, Topshop, and Forever 21—in terms of their social following, engagement, and brand perception.

A few takeaways from the infographic below:

• Instagram is the top platform for all four brands, though Facebook is far from dead for Zara. Twitter isn’t a major player for any of these brands.
• Topshop has the lowest amount of followers, but the highest engagement ratio and the best customer experience score. Perhaps this is part of a scarcity model, as Topshop’s stores in the U.S are few and far between, or that their price point is a bit higher and designs a little more cutting edge. In any case, their small but active audience is working for them.  
• Brand perception scores for Zara, H&M, and Forever 21 are fairly equal despite their varied price points and similar product quality scores, leading me to believe that fast fashion is simply popular in the social sphere. It makes sense that consumers of fast digital would be naturally drawn to fast fashion.

Also: check out the Sprinkler Benchmarking tool here if you think it could be useful for seeing where your business falls among the competition.

Click Image To Enlarge

COMMENTARY:   How is the fashion industry embracing social media? Despite the fashion industry coming fashionably late onto the social media scene, it definitely has wasted no time in making sure its presence was felt.  Top brands like Burberry, Urban Outfitters, and Louis Vuitton are promoting exclusive clothing and have become more accessible to the general public via social networking. This industry has embraced all that social media has to offer for it to grow in business. Today, ads are being replaced with blogs and marketing activities are centered on social advertising. Not only do brands and retailers use social media to communicate with their consumers, they use it to listen to them as well.

According to Seock and Norton,

“With the consumers' increased use of retailers' Internet Websites for searching out product information and purchasing, the websites have become key tools for retailers to communicate with current and prospective customers and the attributes of a retailer's website are crucial for attracting shoppers to the site and convincing them to become or remain customers.” 

A perfect example of how the industry has embraced social media is Burberry’s campaigning strategy. Burberry, known to always be innovative and fresh, uses a mixture of different media platforms such as Facebook, YouTube, and Twitter. The most dominant of the three, YouTube, is being used by Burberry to broadcast its image and promote its campaigns. This specific media platform is a personal studio place for the YouTube user to express their self in a creative, dramatic and artistic way while being recorded.

Burberry’s theme used in this YouTube is high fashion, youth, style and innovation. In the video is Romeo Beckham, the 10 year-old son of Victoria and David Beckham, who was specially picked to represent Burberry’s spring 2013 campaign. What do you think Burberry is trying to pitch here? High fashion +youth+ fan= Burberry. The company’s vision is that a customer has total access to Burberry, across any device, anywhere. This example goes to show just how much the fashion industry has embraced social media. 

Burberry has become aware of the different social media platforms consumers use (especially young consumers), it’s created various advertisements using the social media platforms consumers use the most. Not only should a brand be aware of imagery when reaching out to consumers, but their overall content as well. The more unique a brand's overall content is, the more likely it is to receive a large amount of re shares and likes across social media platforms. According to Seock,

“Consumers across the age spectrum shop online, but college students aged 18 to 22 have been identified as the Internet's 'hottest' market and a prime source of future growth in online sales.”

For what reason did the fashion industry decide they needed social media as a marketing tool? One reason is that the fashion industry’s old way of marketing products and brands eventually went out of style! According to Winter,

“In a matter of minutes, eight cameras coupled with computer software can generate three-dimensional images of the human form, both clothed and unclothed.”  

Without social media, the fashion industry would definitely be behind.  The fashion industry is all about keeping up with the new and latest trends that are in, and social media happens to be one of the new trends in which they needed to take part.

The fashion industry used to be an industry that focused solely on the quality of its goods. This is still the case today, but this industry knew that it was time to take the next step forward in order to stay relevant, and social media was its solution.  The fashion industry functions sort of like your most popular high school clique:  A leader confidently undertakes something new; a few imitators carefully follow the leader’s get-up, and the rest then rush to participate before that trend dies out. Therefore, the fashion industry undertook social media, consumers follow the trends that the industry shares through social media and then next thing you know everyone wants to try it out to before it’s too late. The fashion industry’s reason for using social media was to keep up with trends and stay relevant so it wouldn’t be left behind.

To view "American Fashion Retail Brands Make It Big On Social Media" click HERE

What are some social media platforms that are most effective in the fashion industry today?  There are so many:  

• Fashion blogs
• YouTube
• Instagram
• Twitter
• Pintrest
• Tumblr

and many more social media platforms that are highly popular in the fashion industry today. Out of the many social platforms listed, blogging seems to be one of the most popular in the industry today.  According to Chittenden,

“According to Luman (2006), in 2006 there were approximately 27 million blogs in the world. Corcoran (2006) noted that some 2 million of these blogs were devoted to fashion and fashion/shopping-related themes. Fashion bloggers are now seen as leaders in the industry, and brands are now turning to them not only to check and offer feedback on their products, but also to act as a connection between themselves and their target consumers.”

Fashion blogs typically include a mix of images from personal photographs and professional photographs of runway shows or magazine shoots (taken from other websites), to images of products seen on websites, other blogs, or in the local neighborhood of the blogger. Written entries discuss events in the blogger’s day, their outfit choices, ‘things they like’, or fashion items encountered in other places or other media.  This social platform has a very big influence on how many people dress, shop, wear their hairstyles and even do their make-up.

The second most popular social media platform is YouTube; this social platform is used to create videos. Breen stated,

"As more people capture special moments on video, YouTube is empowering them to become the broadcasters of tomorrow."

This self-glorifying quote may have seemed far-fetched less than a year ago, but of late, YouTube has been discussed as a potential "sixth network”.  Various YouTubers upload videos about fashion, hair and beauty tips to share with people all over the world. These views benefit from these videos because they can do and watch at the same time, which gives them the leisure of playing and pausing when they want. Not only do the viewer’s benefit from these videos, the YouTuber does as well.  

Many YouTubers now earn six figures from marketing products for top companies in their videos and go on to owning their own fashion businesses and selling products of their own. A lot of the big designers you see today were discovered on YouTube.  Depending on how interesting and useful the YouTube video is, many viewers will subscribe and pass on by word of mouth, helping the You Tuber sell their own personally made clothing.

Last but not least, Instagram, Pintrest, Tumblr and many other apps that allow many to express their sense of fashion are highly used today to influence how one views and captures fashion. These apps target more towards the younger generation; it’s quick and easy, you just snap and go. According to Livingston,

“The most popular photo revival software is Instagram available for iPhone and Instaplus for iPad with excellent reviews. You can load images from your photo library or from your  iPhone and create stunning artistic compositions. Images are re-developed (digitized) replicating past analogue processes, before your very eyes, complete with original mechanical sounds of the Polaroid camera.” 

Instagram is a mobile app for photo sharing and accomplishes the same social, visual goals as Tumblr, but in a prettier, scaled-down way. Many use this instagram as a channel of self-expression. Like Facebook and Twitter, Instagram’s appeal lies in its number of provided utilities both for individuals that love fashion and for owners of fashion brands. Many use instagram to do several things like display their personal lines, make up tips, cooking recipes and many other skills they have, but fashion is the most seen on these networks.

Therefore, to conclude, the days of a brand’s success relying solely on the quality of its goods are well and truly over. As the fashion industry has embraced social media, brands are simply opening their doors to personal contact and adding humanity, emotion and opinion. Whether you are interested in fashion or not, it is difficult to escape the constant bombardment of information on the latest fashions and trends that we receive through social media and the internet. From the fashion blogs, to the live streaming of catwalk shows from the main fashion weeks and the social shopping where we get all sorts of opinions on different pieces of clothing through Facebook, and Twitter, the fashion industry will never be the same.We live in the digital age, where it is important that social media is used as a marketing tool to avoid being left behind.

Courtesy of an article dated October 18, 2015 appearing in Social Media Today and the research paper by Crista Washington titled, "Social Media's Influence on the Fashion Industry"

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TOMMY HILFIGER INTRODUCES SAMSUNG GEARVR HEADSETS TO GIVE CUSTOMERS A 3-D INSTORE SHOPPING EXPERIENCE

To capture the all-around image, Hilfiger worked with WeMakeVR, a start-up, which used a special 3-D camera to capture an image with no blind spots. (Click Image To Enlarge)

With its clunky headsets and project names like Oculus and Morpheus, virtual reality has so far been the realm of hard-core gamers and other early adopters of cutting-edge tech.

Now, retailers are jumping for a piece of VR’s promise to immerse its users in virtual 3-D video. (The industry even has a new term for selling through virtual reality: v-commerce.)

Tommy Hilfiger introduces VR headsets in selected stores (Click Image To Enlarge)

Tommy Hilfiger became the first major retailer to make virtual reality a fixture in its stores this week, offering its shoppers a virtual trip, via a Samsung GearVR headset, to the label’s fall fashion show in New York this year.

The virtual reality headsets, which Tommy Hilfiger began renting out at its Fifth Avenue store in New York on Tuesday, give shoppers a three-dimensional, front-row view of the show, held at New York’s Park Avenue Armory.

Tommy Hilfiger introduces VR headsets in selected stores (Click Image To Enlarge)

During a preview, a reporter donned a GearVR and sat a few virtual feet away from models as they strutted down a football-themed runway. Visible above was the cavernous ceiling of the Armory; turning around revealed rows of guests, almost touchable.

To capture the all-around image, Tommy Hilfiger worked with the Netherlands-based start-up WeMakeVR, which filmed the show using a 3-D camera fitted with 14 special lenses. The lenses allow the camera to capture video in 360 degrees both vertically and horizontally, with no blind spots.

 

 Avinash Changa, WeMakeVR’s chief executive, is  reflected on the glass of the firm's Falcon virtual reality device (Click Image To Enlarge)

Daniel Grieder, Tommy Hilfiger’s chief executive, said the virtual reality headsets would allow shoppers who might never attend a fashion show to view and shop the season’s runway styles. He also said the headsets, which will be installed in the brand’s biggest flagship stores in the United States and Europe, would inject Tommy Hilfiger locations with an element of entertainment.

That is vital to brick-and-mortar stores as they fight to stay relevant in an increasingly digital world, he said.

Mr. Grieder said.

“These days, you can’t just wait for people to come into the store and try on your jackets. You have to provide entertainment.  It’s not about turnover by square foot anymore. It’s about surprise by square foot, or newness.”

'These days, you can’t just wait for people to come into the store and try on your jackets. You have to provide entertainment," said Daniel Grieder, chief executive of Tommy Hilfiger. (Click Image To Enlarge)

Tommy Hilfiger, which had sales of $6.7 billion in 2014 and is owned by PVH Corp, is one of many retailers exploring virtual reality as a sales tool as they compete with online sellers for shoppers’ attention. But actual adoption of the technology in stores has been slow, as headset makers iron out kinks and bring consumer models to the market.

Next month, Samsung is set to release the consumer version of its GearVR, which uses a smartphone as its processor and display. Facebook’s Oculus VR is expected to begin widely selling a VR headset next year. Sony will ship its own virtual reality headset for its PlayStation 4 console, known as Project Morpheus, during the first half of next year.

But there are still plenty of reasons to question whether virtual reality, promoted for decades as the next big thing, will finally take off in gaming or in retail. Reducing the discomfort that virtual reality can cause for some people, and downsizing the unwieldy headsets, are some remaining challenges.

Virtual reality advocates are quick to distance the technology from other fads that have since fizzled out.

Avinash Changa, WeMakeVR’s chief executive, said.

“Cinema in 3-D was a trick, a gimmick.  But VR can be relevant. We’re applying the technology beyond the gimmick.”

COMMENTARY:    The new Samsung GearVR headset technology launched on October 20, 2015 at the Tommy Hilfiger store on New York’s Fifth Avenue, followed by several addition locations including London, Paris, Milan, Amsterdam, Dusseldorf, Florence, Zurich, and Moscow. Shoppers will receive an immersive encounter.

The idea is to create the impression that one is sitting in the front row of Manhattan’s Park Avenue Armory at show time on February 16, 2015, which is when the collection originally premiered.  The experience will offer users an unhindered view of the runway and backstage—a section typically cordoned off from outsiders.

The installation lives in-store in a dedicated area that reflects the American football theme of the show alongside the Hilfiger Collection designs, which consumers can purchase immediately. The platform is also launching at wholesale with Selfridges, London’s iconic department store.

Daniel Grieder, CEO of Tommy Hilfiger. said.

“We are driven by a vision to exceed consumer expectations, inspire, and offer experiences they never thought possible. We’re using virtual reality to open the doors to a unique part of our world, directly connecting the consumers in our retail space with one of our largest brand events.” 

The showcase will be available on London’s Brompton Road and Regent Street; at Amsterdam’s P.C. Hooftstraat; Dusseldorf’s Schadowstrasse; Milan’s Piazza Guglielmo Oberdan; Florence’s Piazza degli Antinori; Zurich’s Bahnhofstrasse; Paris’s Boulevard des Capucines and Champs-Elysees; and Moscow’s Kuznetsky Most.

Courtesy of an article dated October 20, 2015 appearing in New York Times and an article dated October 20, 2015 appearing in World Branding Forum

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WHY THE APPLE WATCH IS A BIG FLOP: OVER-PRICED, TOO COMPLICATED, BORING, BULKY, DOES NOT MAKE A FASHION STATEMENT

The Apple Watch, despite years of hype before it was even announced, appears to be flopping after all.

It wasn't a good sign when Apple announced shortly before the Watch release that they weren't going to be breaking out sales numbers. Now, a new report from third-party analysts Slice Intelligence not only show that Apple Watch sales are down 90% since launch—a big deal, since it implies early adopters aren't regaling more cautious buyers with glowing word-of-mouth—but also that Fitbit is outselling Apple in the wearables space. Apple may have already crushed small time smartwatch companies like Pebble, but the Watch has failed to disrupt the larger wearable marketplace.

Imagine if months after the iPad release, we learned it still hadn't outsold some model of Windows tablet. A couple of million units sold sounds okay, but hardly the sort of smash hit we've come to expect from Apple. A precipitous decline in sales after just a couple of months? Not a good sign.

Will the Apple Watch recover, and sell 100 million units in two years, like the iPad, or three years, like the iPhone? There's still time—but not at these rates. (Which, to be fair, are projections based on email receipts hoovered up by Slice, not from Apple itself.) Even with generous rounding errors, the Watch has failed to become the status quo object in wearables. And for Apple, that's a flop.

So how did this happen? The answer may sound like heresy to those who canonize—or even merely admire—Apple's designers. What if the Apple Watch, for all its its milled and woven metals, all its appearances on the catwalk, isn't actually all that well-designed? So far, the Apple Watch doesn't seem very useful, and it hasn't proven that fashionable.

It Just Doesn't Work That Well

Early reviews were filled with tentative criticism, and convoluted explanations about why you might want an Apple Watch in the first place. The New York Times needed "three long, often confusing and frustrating days" to learn how to use it. Others pointed to poor technical performance and a lack of meaningful apps. Many reviews contained the caveat, "it's not for everyone..." One influential review by TechCrunch pointed to what became a rallying cry for the Apple Watch's utility: the time saved by using a screen at a glance—as if teens and grandmas everywhere would relish the option to spend $500 to save the equivalent a few seconds each day. (Seconds that, more often than not, are consumed by a watch alert instructing its wearer to check their phone.)

Major developers complained to us before release that Apple had constrained Watch functions too tightly to create rich, meaningful experiences. Presumably to preserve the Watch's limited battery life, apps ran on the iPhone, the sensors and Taptic Engine were off-limits, and many graphical elements had to be streamed to the Watch instead of being generated natively. Apple has since released a new SDK to remedy some of these limitations, which will certainly improve the app experience, however un-killer they all, so far, have been.

From a user-experience standpoint, it's unclear that Apple ever figured out how people were really supposed to interact with the Watch. Consider that it contains four different types of notifications: a "glance," a short look notification, a long look notification, and another style of notification that pops up only inside a digital watchface. Sometimes they'll have the information you need. Sometimes they'll prompt you to open an app on your iPhone. Never do they indicate that Apple figured out one perfect way to use a tool of their own invention. And despite having three different types of touch interface—basic touch-screen interaction, Force Touch, and the Digital Crown—the watch still leans heavily on Siri, Apple's voice recognition agent, who remains fairly dense and hard of hearing.

It's Not That Fashionable

Where did your Apple Watch go, Drake?

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What about yours, Karl Lagerfeld? Is it hiding under those cuffs?

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Say it ain't so, Bey!

 Click Image To Enlarge

Though at least Beyoncé, who made headlines for wearing her gold-band Apple Watch Edition (backwards, by the way; in what, let's all be honest, must be an under-the-table sponsorship we'll read about in a memoir 40 years from now), still Instagrams in it every once in a while.

You can view this in two ways, and neither bodes well for the Watch. Waning celebrity support could mark a cooling cool factor.  Not because there's anything wrong with the Watch, but because Apple is not immune to fashion's whim -- and fashion's whim is a lot faster than your two-year iPhone upgrade cycle.. Maybe the Apple Watch had a moment of limelight, but now seems, if not tacky, at least pedestrian.

And let's ignore the challenge of auguring Yoncé's daily technology and fashion choices solely from images on a highly curated Instagram feed. So she doesn't wear the same watch every day; she's a fashionista who changes her look on a daily basis. When doesshe wear it?

A nice watch for a normal, non-celebrity fits somewhere between a wedding ring and your go-to black leather shoes. You'll wear it a lot, but not all the time.

But the Apple Watch isn't just another piece of jewelry. If you don't wear a Rolex every day, it's not a big deal. If you don't wear an Apple Watch every day, how is it ever going to become an integral part of how you pay for things, identify yourself, and check your emails? For the Apple Watch to replace the functionality of our phones, even in part, it has to be worn all the time. And it's looking like—at least according to my highly scientific celebrity Instagram analysis, cross-indexed with the upturned noses of many of my otherwise perfectly gadget-prone friends—Apple Watch just doesn't fit into every context. (And we're talking about gifted $17,000+ version here, which at least brings the cachet of excess. The entry-level models may be more innocuous, but they're still smartwatches, and smartwatches are still Segways for your wrist.)

Apple Is Still Thinking In ID, Not User Experience

All of this culminates to the Apple Watch's fundamental flaw: it's a myopic masterpiece of industrial design, with microchips under curved glass held firm by Velcro-elegant magnetic clasps, so focused on fit and finish that it forgot about the software experience. And it's the software experience that, ironically, could solve the disappointing UX, along with the stale problem of wearing the same old watch every day.

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Look at the Apple Watch page and you'll see the pornographic macros of the digital crown  and woven metal band; yet ultimately, the Apple Watch hardware you purchase has just one look. Software barely shapes its aesthetic. Apple hasn't even opened up digital watch faces to third party developers, and even if they do, they won't stop the watch hardware from looking like a dead screen that's too afraid to fire up its own battery, lest it die.

The Apple Watch is flopping because it's very well executed, but not very well designed. In terms of utility, it's hard to use, and not solving meaningful problems. In terms of fashion, it's a piece of technology that inherently falls short of timelessness, and yet doesn't keep up with fast fashion, either.

I'm not sure that the Apple Watch needs to rectify all of these problems to be a monster hit, but it certainly needs to solve one of them. Until then, the Apple Watch still "isn't for everyone." And apparently not as many someones as had been expected.

COMMENTARY:  Apple hasn't revealed specific sales figures for the Apple Watch since its launch in April.

However, analytics firm Slice Intelligence has pulled together some data that claims to give us an idea of what sales have been like over the past few months.

And it doesn't look good.

Slice Intelligence shared a chart with Business Insider that shows how sales have progressed day-by-day from mid-April through the beginning of July.

On April 13, Apple was selling about 35,000 watches per day, according to Slice. But that number has dipped significantly since then. On July 2, Apple sold more than 5,000 Apple Watches per day, the chart indicates.

It seems as if there's been a steady decline in day-by-day sales except for a few noticeable spikes, such as one on June 2, which you'll notice in the chart below.

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Slice Intelligence bases these numbers on e-receipt data it received from its panel of 2.5 million online shoppers in the U.S. 

The data may not be perfect, but it backs up what some Wall Street analysts have previously said about the Apple Watch. In a note to clients, Andy Hargreaves from Pacific Crest wrote:

"Store visits, Google search volume, third-party data and recent supply checks all suggest demand for Apple Watch has fallen sharply from initial levels."

Apple has remained quiet when it comes to sales numbers for the Apple Watch. It didn't issue a press release to announce opening weekend sales like it does with the iPhone, but Slice Intelligence previously estimated that there were 1 million orders for the Apple Watch in its first weekend on the market.

When Re/code's Walt Mossberg asked Apple's Jeff Williams how many watches have been sold, Williams replied:

"A lot, but not enough. The only number I’ll give you is that demand divided by supply is greater than one, and so that’s all I’ve got for you, Walt. It’s a lot."

Apple declined to provide comment for this story.

The list of celebrities sporting the wrist piece isn’t extensive but is lengthening. Pharrell (rapper), Katy Perry (singer), Drake (singer), Christy Turlington (fashion model), Dmitry Medvedev (Russian Prime Minister), Karl Lagerfeld (fashion designer), ( Liberty Ross (actress), Beyonce (singer), Kid Kuni (rapper), Frank Ocean (rapper) Tom Brady (pro athlete), David Beckham ((pro athlete), Robert Murdoch (media mogul), Sophie Turner (actress), J.J. Abrams (film director), Simon Pegg (actor), Will Carling (actor), Sam Smith (singer), Anna Wintour (Vogue Editor) are amongst the top names.  Keep in mind that Apple executives gave away numerous Apple Watches to celebrities to create marketing hype and word-of-mouth.

Reactions to the Apple Watch from the fashion industry have been mostly mixed to negative.  Here are a few responses from fashion designers who were asked if they would buy an Apple Watch, whether they considered a tech gadget or fashion item and if they would integrate wearable technology into their business.

• Robert Geller - "Not yet. Just like I did with the IPad, I don't see the need.  Now I own 2 IPads. Let's see.  I think that the integration of tech and fashion has not been very successful. It always ends up being very gadget-y.  "
• Ryan Babenzien - "I haven't ordered one. I'm not entirely sold on the idea just yet since you need your phone with you to make the watch function in a real way.  Carrying a device to make another one work to it's full capacity seems like a hassle to me. I'm going to wait and see how this might enhance one's life for the better and if it does, I'll get one. It's got to offer function first and enhance my life. I think there are some interesting applications for the Apple Watch at the retail level that we at Greats are keen to see happen."
• Josh Cooper and Laurence Chandler - "Nope, with a growing design schedule and constant travel, we find ourselves looking at ways to disconnect, rather than being connected even more.  We created a 3M infused "Paparazzi Blocker" for Cara Delevingne after having a conversation on ways to throw off photogs.  This has led to a lot of brands running with this idea.  We were approached by 3M and are pushing them for alternative materials that don't need a flash to expand on this idea.  We've had tech companies approach us about using their tech and our design but have been in no rush to do anything that feels forced. There's potential but I don't think we're The Jetsons just yet."
• Kerby Jean-Raymond - "Hell no. I’m desperately trying to unplug. The last thing I want is a watch that connects to my phone which connects to my iPad that connects to my computer that airplays to my TV.  It’s a gadget right now. I’ll see style value in it once brands and jewelers start making cool wristbands and straps for it. I still won’t get one."
• Shimon Ovadia - "No I did not. We're already so connected with our computers and phones throughout the day. Although the watch looks cool and the technology is impressive and ground-breaking these days I'm personally more interested in disconnecting a little more. Apple is so great with their branding and marketing that the products appeal to both the tech geeks and someone who just wants to say they have the latest hot gadget. I think you'll see both of those types of people wearing it."
• Jason Geter -  "No, I didn't pre order the Apple watch, although I'm sure I'll get one at some point. I certainly see ‎it as more of a tech gadget versus style. I've worn classic watches such as Rolexes, Grahams, Audemars, etc. For quite some time. But, I can see rocking the Apple watch on certain days, during travel or on vacation."
• Scott Sasso - "No.  Not really.  I'm trying to reduce the tech in my life right now.  It's a tech gadget. Maybe one day it—or something like it—will become a style accessory, but it's too soon to call it a style accessory. We don't even know if the thing is useful yet, to know if it will be adapted widely enough to become a style accessory. I don't know of anyone who has one yet."

As you can see from the above responses, most if not all of the designers interveiwed have not purchased the Apple watch as of April 24, 2015.  Many are "sitting on the fence." to see how the watch will be used.  The majority do not view the Apple Watch as a fashion item, but more of a tech gadget.  A few want to be less connected or cutting back on the number of mobile devices.  Some don't see a real need in the marketplace and find the Apple Watch too complicated or reliant on the iPhone for its functionality.    

As for myself:  I always thought that the Apple Watch did not fill a real need in the marketplace. At best the new Apple time piece is a "nice to have," but not a "must have" purchase.  From a design standpoint, the Apple Watch is not a "cool" device like the iPod, iPhone or iPad were when they first came out.  It fails to make a fashion statement.  It's too bulky and plain looking.  No pizzazz or glitz. Boring.  Over-priced and does not deliver an out-of-this world customer experience at its price points.  There are already too many wearables offering similar features at half the price. The fashion designers agree with me.  It is not the type of device that Steve Jobs said Apple customers would "lust for."  In fact, I think that Steve would've designed something completely different or not done it.  I think that it's too complicated to use.  This violates Steve Jobs rule of simplicity in design.  It requires that you already have an iPhone.  This kills the customer experience.  The Apple Watch should stand on its own.  It's more of an accessory to the iPhone.  

Courtesy of an article dated July 12, 2015 appearing in Engadget, an article dated July 6, 2015 appearing in TechRadar, an article dated July 7, 2015 appearing in Business Insider, an article dated April 20, 2015 appearing in Forbes, an article dated March 9, 2015 appearing in Vox Technology, an article dated April 24, 2015 appearing in Complex Style, and an article dated June 1, 2015 appearing in Business Insider

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THE RISE AND FALL OF FUBU: A LESSON IN BRANDING AND IGNORING MARKET SIGNALS AND CHANGING FASHION TRENDS

FUBU co-founders J. Alexander Martin, Daymond John, Carl Brown anKeith Perrind in 1998 (Click Image To Enlarge)

I’m a sucker for Shark Tank – in which wide-eyed entrepreneurs pitch their “once-in-a-lifetime” ideas to a group of rich men and women running the gamut from owners of an NBA franchise to some schmuck they call “Mr. Wonderful,” who I like to imagine made his money selling doll furniture. One guy in particular, Daymond John, always appealed to me. While most of his fellow gurus earned their massive fortunes in the tech space, John had built the fashion empire known as FUBU. I thought. 

”Holy shit.  If he’s sitting next to Mark Cuban who made enough money to own the Dallas Mavericks, Daymond must be swimming in it!”

The "Shark Tank" TV series cast for 2015 from L-to-R: Mark Cuban, Barbara Corcoran, Daymond John (FUBU founder), Kevin O'Leary (Mr. Wonderful), Lori Greiner and Robert Herjavec (Click Image To Enlarge)

But as we all know, FUBU isn’t exactly flying off the shelves these days. What exactly happened to the company before, during, and after its massive success?

Daymond John was raised in the Hollis neighborhood of Queens. He didn’t come from a family with money. His parents divorced when he was 10 years old, and he would never see his father again after the separation.  He says.

“We went from middle class to poor.  I became the man of the house and started working at that age.”

 

Prior to launching his own line, John still looked to fashion as a means to make money. According to the Washington Post,

“Initially, it was through printed T-shirts, but not my own brand. I went and printed up some shirts when the Rodney King riots were happening in Los Angeles, with lines like ‘What happened to poor Rodney King?’ Then Mike Tyson got incarcerated, and we did the whole ‘Free Mike Tyson’ shirts. We would sell them at events and on street corners. It showed me something about the reason people buy clothes – that when there’s an emotional slogan or an emotional connection, products sell quicker. That’s when I started thinking about this concept of ‘For Us, By Us.’”

The original founders of FUBU in 1998 from left to right -- Keith Perrin, Carl Brown, Daymond John, J. Alexander Martin (Click Image To Enlarge)

By the end of the day, he had sold out of the hats and turned a $800 USD profit. He knew he was on to something – although he didn’t exactly have the capital to immediately capitalize on the momentum he had seemingly conjured out of thin air.  He told CNN.

“The next step could be how do I finance all of this?  Do I sell one or two hats and then re-up? Do I take out a loan from a bank or do I get an angel investor? Do I just chug along at $50,000 a year, $100,000 a year? When do I go balls out? Quit the job. Mortgage the house. Sell the car. Do I do this at all?”

While those were all smart questions to ask, $800 USD dollars worth of sales didn’t necessarily mean that he should quit everything. But that would soon change. According to CNBC,

“During his off hours, however, John would hit music video sets and try to coax rappers to wear FUBU apparel in the shoot, a move that would ultimately pay off as millions of fans saw their favorite stars wearing FUBU clothing.” 

John explains, 

“First it started with Brand Nubian in one of their videos, then Ol’ Dirty Bastard wore it in a Mariah Carey video, then Busta Rhymes wore it on one of his videos, and LL Cool J decided to wear FUBU on the “Hey Lover” video with Boyz II Men. Our product was front and center on the biggest and most influential personalities for our core consumers.”

Daymond John (center) with model Tyson Beckford (left) and rapper LL Cool J at a FUBU event in 2000 (Click Image To Enlarge)

As legend has it, John also used a bit of guerilla marketing in his attempt at reaching the top. John remembers.

“One of the most well-known hits we had with LL was during a Gap commercial.  He was wearing a pair of Gap jeans and a Gap shirt, but he was somehow able to sport one of our hats during the commercial. Then during his thirty-second freestyle rap, he looks directly into the camera and says, ‘For Us, By Us, on the low.’ No one at Gap nor any of their ad execs thought anything of it. It wasn’t until a month later that someone at the Gap found out, pulled the commercial, and fired a whole bunch of people after they had spent about $30 million running this campaign.”

 

After an appearance at a trade show in Las Vegas, he and his partners – J. Alexander Martin, Carl Brown and Keith Perrin – had managed to sell $400,000 USD worth of clothes that didn’t exist yet. Ultimately, his mother took out a second mortgage on her home after John was turned down by 27 banks for a business loan.

Soon after, his partners moved in, and they turned the home into a makeshift factory. John remembers.

“It was a typical Queens house, the kind you see on All in the Family.  It had three levels: A basement, the first level with a dining room, living room and the kitchen, and then three bedrooms upstairs. After we took out the mortgage, we took all of the furniture out of the house, sold what we could, and the rest we burned in the backyard. We put all the raw materials down in the basement, and on the first floor, we converted the living room and put eight sewing machines there and we hired some seamstresses. In the dining room, we put a cutting table where we cut all the fabrics. The kitchen, well, the kitchen was still the kitchen.”

 

By 1998, FUBU’s reached its peak with sales over $350 million USD.  John and his partners had used hip-hop culture and stars like LL Cool J – a fellow Queens native – to put FUBU’s clothing in seemingly ever rap video at the time. John and crew thought to themselves, “we should put out a record too…”

FUBU released the compilation album The Good Life on September 25, 2001 which featured the likes of LL Cool J, Nate Dogg, and Keith Murray. It lost the company an estimated $5 million USD. John told Fast Company.

“We didn’t know our numbers, we didn’t look at our numbers, we were spending money like drunken sailors, we were getting caught up.  What was the reason we were doing it? Did we get exposure? Yes, but from the business model, we died.”

 

“Fatty Girl” was the lead single from FUBU’s The Good Life album, prominently featuring the apparel in the music video directed by Hype Williams 

In a book he co-authored, The Brand Within, John explained that one of the major factors that led to the company’s demise is that they had too much product. He writes.

“Once you hit mark-down bins, it’s tough to climb out, because you’ve lost the sense that your clothes are fresh and vibrant.”

By 2003, FUBU left the U.S. market completely – except for its footwear division – and built business in Europe and Asia. Additionally, they acquired up and coming brands Heatherette, Drunkn Munky, Kappa USA, Coogi, and Crown Holder. Worldwide sales for those brands reached $200 million USD in 2009. Despite being absent from the marketplace, there was no catastrophic collapse or new people coming on board.

NSYNC wearing FUBU when the brand went mainstream (Click Image To Enlarge)

In 2009, John announced that FUBU would be making a comeback after a six-year hiatus with an aesthetic similar to “Carhartt meets Abercrombie.”  In speaking with WWD John said.  

“I wasn't too worried about losing FUBU’s brand identity since the kids nowadays have a three-year memory span, so most don’t have a sense of the brand’s roots.”

COMMENTARY:   Daymond John blamed excessive inventories as the chief cause for FUBU's failure.  Excessive inventories is not a cause, but a symptom that something bigger is going on. It is my belief that John did not have a good understanding of fashion retail marketing and the need to identify changing trends in fashion.  In short, John's ownership of FUBU's marketing strategy and failure to listen to marketplace signals is really what did in FUBU.    

John started FUBU as a fashion brand that appealed to and targeted young urban black males. Young urban black men were the biggest fans of rap and hip-hop music when it began to take off in the late 1990's.  John's love of rap and hip-hop music and associaiton with several well known rap and hip-hop music artists like LL Cool J, Salt-N-Pepper, Run-DMC, and others, provided the perfect vehicle to reach his target market.

John did not have a marketing budget and relied mostly on guerilla marketing to get the FUBU brand recognized in the marketplace.   Providing many of these black rap and hip-hop music artists with FUBU apparel that they wore on stage and on music videos was a great strategy to gain brand recognition.  The FUBU brand quickly become part of the rap music culture.  Young urban black males wanted to become part of this music culture and the FUBU brand was the perfect way for them to express their association with that culture.  As the FUBU brand grew in popularity among rap and hip-hop music fans, the brand took off, eventually peaking with revenues of $350 million in 1998.  

Many nascent rap groups undoubtedly embraced FUBU and Cross Colours due to accessibility and their finger-on-the-pulse relevance.  Later on many hip-hop insiders launched their own lines, with Wu Tang and Wu Wear, Russell and Kimora Lee Simmons with Phat Farm and Baby Phat, Nelly with Apple Bottoms, and more.  This crop of urban wear newcomers quickly became the "next big thing" in urban and hip-hop fashion, and the results were obvious:  FUBU, Tommy Hilfiger and Abercrombie & Fitch, who had grown and prospered due to the early popularity of rap and hip-hop music, began to lose favor with young urban black males.  The handwriting was on the wall, and John either missed these market signals or completely ignored them.

Clearly, J0hn failed to realize that fashion trends can change quickly and dramatically.  Like many startups that experience dramatic and early success, John learned too late, that success is a lousy teacher.  Those that assume that success will continue by doing the same things they have been doing often have a rude awakening.   

John's announcement in 2006 that FUBU would make a comeback, obviously has not been realized. Market forces in the fashion industry quickly change, and young urban blacks no longer emulate their counterparts of the late 1990's.  Though urban brands certainly enjoyed their moment, their popularity seems to be waning. Instead of Jay-Z wearing Rocawear, you’re most likely to see him in Givenchy. Though Beyonce is the face of House of Deréon (and is wearing it in their new ad!), we know the R&B and pop songstress truly has a soft spot for Balmain,  Lanvin  and Alexander McQueen.   Nicki Minaj loves her Versace as much as Kim loves her Kanye West.     

Courtesy of an article dated June 30, 2015 appearing in TheHundreds.com, an article dated November 17, 2014 appearing in Business Insider, an article dated October 9, 2012 appearing in Fashion Bomb Daily, and an article dated March 27, 2009 appearing in Marketings411

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GOOGLE GLASS, NOW AVAILABLE WITH DIANE VON FURSTENBERG FRAMES

The new Glass models will be available on Net-a-Porter and Mr Porter on June 23. (Click Image To Enlarge)

GOOGLE HAS TAPPED FASHION DESIGNER DIANE VON FURSTENBERG TO CREATE LIMITED-EDITION FRAMES TO MAKE THE FACE COMPUTER LOOK MORE CHIC.

In yet another attempt to class up Glass, Google has tapped Diane von Furstenberg to design limited-edition frames. Much like the in-house designs that came out earlier this year, DVF has created more fashionable frames that attach to the high-tech headpiece. The line, which Google will unveil June 4, includes five new frames and eight new shades. Interested buyers can purchase the accessories on Net-a-Porter and Mr Porter starting June 23.

DVF already featured Glass on the brand's runway show earlier this year and with Google's partnership with eyewear giant Luxottica, you may see the face accessory in your local Lenscrafters soon. (Click Image To Enlarge)

The new specs are an incremental improvement from other recent attempts to make the face computers look less awkward. The already-available Glass frames come in one shade of black; DVF offers a bit more flair with frames available in brown and four other colors. The sunglasses also sport the "DVF" logo in the top corner, a la Ray Ban. The main appeal is exclusivity, something Glass has started to lose as it has allowed more people to purchase the device. For this promotion, Google is only selling a limited, undisclosed number of DVF creations.

As with many high fashion items, exclusivity is a large part of the appeal--Google will be selling an undisclosed, limited amount of the new DVF frames. (Click Image To Enlarge)

There's only so much Google can do to dress up (or hide) the chunky metal object protruding off of a Glass wearer's face. Certainly more frame options in different shapes, sizes, and colors will appeal to a broader set of people. But will this partnership help Glass overcome its cyborg reputation, when not much else has worked? The initial frames, which came out in January, were a huge step up from naked-Glass. This doesn't push the needle too much further.

Could more frame shapes, sizes, and colors help bring Glass to the mainstream audience? (Click Image To Enlarge)

Nor does the mere attachment to DVF's brand guarantee success. Since its inception, Glass has made alliances with the fashion world. Diane Von Furstenberg has already collaborated with Glass, having her models walk the runway with the face accessory. That, plus a spread in Vogue, plus a push at fashion week, haven't diminished the curse of the Glasshole. What makes this DVF partnership any different than those efforts?

The Diane Von Furstenburg partnership represents one of many to come for Google Glass, as it continues to work with eyewear designers to lessen the stigma of the gadget. (Click Image To Enlarge)

Google, to its credit, has not given up on the fashion angle. Earlier this month, the company hired marketing fashion guru Ivy Ross to improve Glass's mass perception. Ross has worked with Calvin Klein, Swatch, Gap, Coach, and others. This DVF collaboration will likely be the first of many brand partnerships. Google's deal with eyewear giant Luxottica suggests Glass frames will eventually be available in many varieties at a mall near you.

Style is probably the easiest fix of Glass's problems. As Wired's Mat Honan argued after a year of wearing Glass, the gadget just isn't that useful.  He wrote.  

"Aside from directions, it's more novelty than utility. The really cool stuff remains on the horizon, which means I got tired of it before I’d had it for even a year."

The shunning of Glass wearers has pushed even the most vocal of fans away from the device.

But Google remains committed to Glass and the idea that it will eventually be embraced by mainstream wearers.

Isabelle Olsson, the lead designer for Google Glass, told Fast Company. 

"From smartphones to high-waisted jeans, it takes time for society to get used to new ideas, Explorers always tell me how much they love being able to get the information they need from Glass and then get on with their day. A lot of people want that freedom. Today, the majority of consumers haven’t had a chance to try Glass out. That’s why I’m looking forward to moving from our beta phase to a consumer launch down the line."

Diane-Von-Furstenberg-sports a pair of original Google-Glasses during a runway show in September 2012 for the DVF Spring 2013 during New York Fashion Week. (Click Image To Enlarge)

COMMENTARY:    I am very disappointed in Diane von Furstenberg's eyewear sporting Google Glass.  I really expected a lot more.  The eyeglasses look boring.  They really don't excite me or give me a reason to go out and buy me a pair.  Here's the DVF Spring 2013 fashion show with the models sporting Google Glass during New York Fashion Week in September 2012.  With the average runway fashion show using 25 to 35 models, That's $35 to $45,000 just for Google Glass at $1,500 a pop.

 

Courtesy of an article dated June 3, 2014 appearing in Fast Company

THE OSTRICH PILLOW: THE WORLD'S GOOFIEST DEVICE TO HELP YOU NAP, NOW IT'S AVAILABLE FOR KIDS, TOO!!

THE OSTRICH PILLOW - What's that thing on your head? It's the Ostrich Pillow and Ostrich Pillow Junior, portable, wearable sleeping devices designed to catch sleep on the go. (Or even when you're just at home.) (Click Image To Enlarge)

THE OSTRICH PILLOW JUNIOR GIVES CHILDREN A NAPPING OUTLET WHILE BUILDING THEIR IMMUNITY TO TEASING.

Wear it, and you may risk being mistaken for a fanboy or possibly a (cranio)pod person. Neither is particularly desirable or socially advantageous--after all, you end up cutting a figure quite similar to a clarinet-playing and unfortunately cleavaged Bith. But the Ostrich Pillow, which met with incredible success upon its Kickstarter launch last year, is designed expressly for intense repose and introspection, to the point of blinding you to your immediate surroundings. Block out others, and you block out their ridicule, too.

A new, pint-sized edition now makes the Ostrich experience available to children, a throwback to kindergarten naptime and innocent Halloween costumes of yore.

The pillow, which is shaped like a scaphandre and squid head, is easy to slip on over your head when the mood for a snooze strikes (Click Image To Enlarge)

Until recently, the product was exclusively marketed for adults. Grownups in need of an escape, either sleep-deprived and gradually wasting away in front of their desktop screen or simply waiting for a flight to board, could bury their heads in the helmet-pillow and catch some quick shuteye.

For kids, there are arguably more moments in life open to the Ostrich experience. Shaped like a plush, cushioned scaphandre, the pillow is a portable sleeping device that little ones can easily slip on whenever the urge for a catnap strikes. A front opening prevents asphyxiation; holes on either side draw heat away from the interior and double as hand receptacles. Conspicuously missing are eye cutouts, the deletion amplifying the pillow’s amniotic appearance.

The beanbag-like cushioning enables you to doze off in just about any location, including, for some reason, a stack of books on the library floor (Click Image To Enlarge)

The features between the two models are identical, though the kid version sports a large mouth and nose hole for improved respiration. The design homology was intentional, says architecture and design studio Kawamura-Ganjavian. The firm conceived of the pillow as a way for designers, colleagues, and all-around busybodies to get some “sleep on the go.” They collaborated with Studio Banana to realize the prototype, which was released on Kickstarter in September 2012, ultimately racking up $200,000 in support and sales.

The Junior model is a recent addition. It re-creates the form and function of the original Ostrich Pillow, only smaller (Click Image To Enlarge)

The Ostrich Pillow Junior was an answer to the pleas of the project’s first customers. “Our fans were posting pictures of their children wearing the Ostrich Pillow,” the Kawamura-Ganjavian office tells Co.Design.

“Of course the design does not lend itself to be used by a child, so we created a version which is inspired by the original ... however, the opening for the mouth is rather larger, which enables most of the child’s face to be exposed whilst feeling cocooned, cozy, and seriously comfortable.”

The designers were surprised when much of the first wave of satisfied Ostrich owners later bought additional pillows for friends and family. "Our nappers love the Ostrich Pillow," they say, adding that they petitioned the designers for the kiddie version. The update, which comes in two sleepy flavors (Berry Snooze and Dreamy Waves), just made good business sense.

The kids' version features a larger mouth hole that will allow child Ostrich users to breath more easily (Click Image To Enlarge)

The development also points the way for future and possibly more zoological iterations. The goal, according to Kawamura-Ganjavian, is to combine aspects of fun and function "into simple everyday actions," one endearing beanbag critter at a time.

You can pick up an Ostrich Pillow Junior for $75. Or outfit the whole family in Ostrich gear here.

The two models side by side. The original Ostrich Pillow was a huge Kickstarter success, garnering upward of $200,000 in funding (Click Image To Enlarge)

COMMENTARY:    There are some days that I wished I owned an Ostrich Pillow before I doze off as I prepare my next blog post.  Don't you just hate it when you fall asleep and keel over, then wake up hours later with a sore nick?  The solution: The Ostrich Pillow.  Bye, bye sore neck.  

Courtesy of an article dated October 3, 2013 appearing in Fast Company Design

DOES GOOGLE GLASS HAVE A BRANDING PROBLEM? MARKETING EXPERTS MAP STEPS TO MAINSTREAM SUCCESS

Google Co-Founder Sergey Brin wears a pair of Google Glass AR glasses (Click Image To Enlarge)

Still in its test phase, Google Glass may be dorked to death before it gets the opportunity to take off. Here, marketing players from a range of agencies provide their assessment of Glass’s chances and some suggestions for paving the way to mainstream success.

Google’s much-hyped wearable computer, Google Glass, has been touted by the tech elite as one of the leaps forward of recent times, but those same elites may hobble mainstream adoption of the device.

While privacy concerns have blossomed (the device may be on its way to being banned at a number of locations), it may comfort those worried that we are all about to become spies for Google that the early adopters of Google Glass are helping to give it an image problem it might not recover from.

Technology venture capitalists Marc Andreessen, Bill Maris and John Doerr model Google Glass AR glasses (Click Image To Enlarge)

Marc Andreessen, a partner in the venture capital firm Andreessen Horowitz, said, 

”You put it on and you’re like ‘Oh my God, I have the entire Internet in my vision. Where have you been all my life?’ ”

Kleiner Perkins venture capitalist John Doerr noted last month when unveiling Kleiner Perkins’ Google Glass-focused investment fund. 

"For paraplegics and quadriplegics, Glass could be a stunningly useful way to get information and interact with it."

The futuristic-looking headset can augment our everyday reality by putting data in our field of vision as well as allowing us to take pictures, and translating the spoken word on the move. But unfortunately, it also appears to have unintended contraceptive powers, as illustrated by this Tumblr featuring members of its decidedly unhip core fanbase.

Google CEO & Co-Founder Larry Page wears a pair of Google Glass AR glasses (Click Image To Enlarge)

It’s all very well having wearable technology that lets you livestream yourself hang gliding. But if it has all the sex appeal of orthodontic headgear, it’s unlikely to catch on. Google’s Glass Explorer program has put Google Glass in the hands and on the heads of developers and tech pundits who Google has selected to test it and have paid $1,500. Google chief executive Larry Page has indicated that the product won’t be in stores for about another year, by which time it may be hard to separate it from its association with tech fanatics.

Arguably, success in wearable technology hinges on making people look and feel good as much as providing a functional service. Developers might be happy to fork vast sums for the privilege of being a Google Glass owner, but when the product goes to mass market, fashion, or at least some sort of coolness and covetability will be as critical as functionality.

Tech pundit Robert Scoble wrote a glowing review about the augmented reality glasses and said, "I will never live a day without them." He then showed off a picture of himself showering while wearing the glasses.  Google co-founder Sergey Brin looking cool wearing a pair of Google Glass AR glasses onboard a bus (Click Image To Enlarge)

With this in mind, we asked five marketing experts: How would you position Google Glass to make sure it achieves mainstream success?

AFTER NAILING THE EARLY ADOPTERS, FOCUS ON LESS-EXPECTED APPLICATIONS.

Jinal Shah, digital strategy director, JWT New York

Google is embracing its influencers. Make no mistake though--they aren’t just going after the nerds. They are strategic in who they’ve invited to their Glass Explorers program, an influencer program that allows a handpicked group to use the first generation of Google Glass. Google has carefully curated a group of people who sit at the intersection of nerd and celebrity. For example, tech celebrity Soraya Darabi, among others. People like her not only bring their passion for technology but also their massive audiences (500K+ followers in the case of Soraya) into the conversation.

California Lieutenant Governor Gavin Newsom, and former mayor of San Francisco, tries the glasses on Current TV (Click Image To Enlarge)

There’s incremental innovation and there’s wow-your-pants-off innovation. Google Glass is in the latter category. We tried it on last week at Google and it was pretty amazing. Mainstream success will happen as it expands the breadth of its audience and also as its simplifies its technology. What we’ll end up with in a few years is just a tiny camera that we’ll be able to attach to any eyewear. To the broader point, wearable technology is the future. Making it as nerdy as possible at the outset is a smart strategic move to get those who will engage most with the glasses to develop their capabilities and advance them to a place of general adoption. It should be no surprise that Google has already developed a partnership with Warby Parker. The aesthetic will change over time, and this will be one of the many norms of wearable tech.

The Google Glass initial approach has focused on driving exclusivity in select communities. And they’ve nailed it. In the next stage, I’d focus on creating desire by introducing a library of plain interesting to bizarre applications of Glass. Think government, music, Hollywood, retail partnerships--maybe even an episode of Family Guy with Stewie touting Glass.

THERE’S SOMETHING ABOUT NERDS.

Jonah Disend, CEO and Founder of Redscout

When we look at the challenge of extending Google Glasses out of nerdom, we believe that the challenge is first, one of execution and second, one of positioning and targeting.

• First, in terms of execution, Google Glasses inherently plays in two worlds--fashion and technology--and they haven’t created “cool kid” lust in either area.  It is neither an incredible fashion accessory that you would want to wear, nor is it a beautiful or obviously useful gadget that you would want to own.
• Second, in terms of positioning and targeting, today Google Glasses is seen as a barrier to social engagement as opposed to an enabler. While it may make your world more exciting and dynamic (as the promotional video might suggest), it does not currently enhance socialization nor have they shown how the value of the glasses increases with additional users (there is currently no clear Network Effect).

Now for our gross generalization about nerds versus everyone else. Nerds actively look to create barriers to protect them from the world, mitigate social engagement, and connect through virtual worlds (thinkWorld of Warcraft). In this context, Google Glasses are the ultimate tool for nerds to add a layer of protection between them and others and potentially seal the fate of Google Glasses as something that only the geekiest of the geeks would ever want to wear (or even own).

WORK WITH TRENDSETTERS.

Lloyd Salmons, Director of Digital, Saatchi & Saatchi London

I love Google. It gives me convenient access to a world of information and that’s something I want. I don’t love their glasses, because they don’t give me what I want. What I want is my glasses. If you’ve ever chosen a pair of glasses you’ll know how long it takes, how many opinions you seek, how many photos you’ve texted and images of celebrities you’ve looked at, be they fashion, sport or sunglasses. What I want is the Google I love, in the glasses I love. I want Google in my glasses.

Open APIs, products as platforms, and cocreation are the norm for tech companies. There is no way Apple or Android could have brought the level of innovation needed to create so many apps personalized to individual needs. Just because Google Glass is a physical product doesn’t mean Google should change the approach to creating the range of glasses needed to facilitate individual tastes.

To facilitate this, we’d build a platform allowing us to work with a range of individuals and the people who make their glasses. These people would range from well-known celebrities in fashion and sport, to everyday style leaders. The content generated across the journey from inception, build, and trial to launch would provide both broadcast content and ways to engage.

Google in Bradley Wiggins’s glasses: We follow the journey of Bradley and his glasses climaxing at the start of the Tour de France. Google in Elton John’s glasses: No one has more glasses than Elton John; he’s given us a hundred of his best to create a range of Google glasses and we’re going to find the perfect person for each of them. You get the picture. Google in P.Diddy’s glasses. Google in Sven Göran Eriksson’s glasses. Google in Victoria Beckham’s sunglasses.

If you try on anyone else’s glasses, you look like a nerd; that’s just a law of the universe. If you don’t believe me, try it. What I need is Google in my glasses.

IDENTIFY AND EMBRACE THE USAGE SWEET SPOT.

Brian Carley, SVP, Executive Creative Director, Rokkan

It’s a challenge, specifically because of the stigma that was quickly attached to them. Putting aside all flaws in its physical appearance, it would be ideal to tap into how people would realistically use them day to day. Very few people are going be wearing them ALL the time, but there are times when it would be useful to have a device such as this and also have complete use of your hands. We all assume that our mobile devices have no boundaries, but there are instances when we are apprehensive about having them on our person. I think that utilizing those moments is the sweet spot for this product. It’s a more useful Go-Pro and those are wildly popular within their specific usage, which is quite broad. There’s no real need for these beyond enjoyment, and so it would be wise to illustrate the truly hands-free experiences that surround the product beyond the dorkiness we’ve experienced already. At least they’re not as cumbersome as a Segway.

DON’T CHANGE A THING.

Bud Caddell, SVP, Director of Invention and Digital Strategy, Deutsch LA

Yes, white middle-aged men love Google Glass. Is it a problem? Of course not. Wearable tech has hardly fallen down Geoffrey Moore’s chasm. We’re seeing early adoption, and in tech (if we’re not counting Pinterest), white men from the Valley with disposable income tend to be first in, first out. And that didn’t stop iPads, laptops, or the mobile phone from reaching mass adoption. Yes, Robert Scoble in the shower is frightening. But take a breath. Google has already tapped Warby Parker, who I personally trust in putting things on my face, and I think Google Glass (in one iteration or another) is here to stay.

COMMENTARY:    

What Tech Guru's Are Saying About Google Glass

I am discounting by about 95% the positive comments made by most of the above technology pundits, expecially some of the above VC's in favor of what other technology pundits are saying:

Marcus Wohlsen, a tech reporter for Wired, on May 2, 2013, gave some hints that Google Glass could end in failure by making these comparisons: 

“The Segway. The Bluetooth headset. The pocket protector.”  

Rebecca Greenfield of The Atlantic, called the secret photo-taking application a “privacy nightmare,” and she also said:

“The Creepiest Google Glass App Is a Stalker’s Dream.” 

Jason Perlow of ZDNet wrote:

“Google Glass: Let the evil commence."   

Perlow also noted that in the “Explorer” version of Google Glass that shipped in early May to first generation of users,

"There is no recording LED indicator light on the device, so that one could stealthily record without any indication to the subject that they are being captured on-camera.”

Jason Zada, an award winning director, wrote on Twitter.  

 ”White Men Wearing Google Glass. This doesn’t make me want a pair.”

Another person simply wrote that Google Glass looks “lame.”

The Google Glass Is Banned List Grows

Privacy and security have become major concerns and as the list of concerned protesters continues to grow, we began to wonder: Where will we be most likely to see this Glass resistance moving forward?  This is a short list of businesses and places who will ban Google Glass:

• Movie theaters and concert venues - It's interesting to consider what Glass could do for film piracy and that annoying guy in front of you who waved his phone snapping photos through an entire two-hours concert. But these are two of the most obvious examples of places that traditionally prohibit cameras.
• Public schools - Or nurseries, or playgrounds. Really, anywhere with an influx of children is going to be a potential hotbed of legal headaches.
• Behind the wheel - The West Virginia legislators' attempt to ban Glass while driving will inevitably gain favor within other states, which will likely include many of the country's 39 states and Washington, D.C., where texting while driving is prohibited.
• Hospitals - Hospitals house boatloads of some of our most personal data, including medical records and insurance information. A stray paper or tilted clipboard could easily find its way into a Glass photo.
• Banks and ATMs - Similar to the hospital example, it's not unfathomable to imagine a Glass-clad someone hovering a little too close to your left shoulder to peep a glance at (not to mention a photo of) your credit card.
• Dressing rooms, locker rooms, and other rooms with people who are potentially naked - Think everywhere from department stores to your gym to strip clubs.

I might also add to the above list:

• Law enforcement - The police will absolutely hate Google Glass.  They don't want you recording their every move and what they say, because this could be used against them in court.
• Courts rooms - Court rooms often ban photographers from their court rooms, especially high-profile and controversial cases.  This is often necessary in order to protect the identity of the jurors and individuals making testimony.  
• Military bases - Any military personnel on military bases who enter or work in highly classified and secured areas will definitely be banned from wearing Google Glass. 
• Schools and colleges - Google Glass will definitely be banned from the classroom. Instructors will be weary of students who might use Google Glass to teach on tests.

On the other hand, I can definitely see immigration inspectors, airline security, law enforcement and even retailing establishments benefiting from Google Glass, in helping them identify criminals, security risks, people of interest and shoplifters before they commit crimes. Companies that want to protect their valuable intellectual property as a matter of practice will ban Google Glass.    

In my opinion, any technology that raises the high level of privacy and security concerns and could lead to consumer litigation potentially in the billions, has a huge PR image and this has the ability to permanently damage or destroy a brand.  This is what I see happening with Google Glass.  If Google wants to market Google Glass to the masses, they will have to severely limit or block its use in certain situations.  

Google needs to be careful that it does not damage its own brand reputation as the company whose motto is: "Don't Be Evil."   Google Glass has the potential to turn Google into the feared "Big Brother,"  that Steve Jobs warned us about when he tried to portray IBM as "Big Brother" in the famous TV commercial.  The company has to be very careful how they launch Google Glass. The company has a social responsibility to uphold (its motto) and it should not take us for granted.   The small cadre of tech geeks and very early adopters who now love and applaud Google Glass as the next big thing, may later learn to hate if they are not too careful.

I keep hearing that Google Glass represents the next evolution of the social network. Bringing the social network experience into the real world and sharing what we see and do with others.  Is this what Google (and Facebook) really wants?  God help us if this is where social networks are headed.  I don't want that kind of "social media experience" biting me in the butt, and I am sure you don't either.   Left to its own accord, without any controls, I believe that Google Glass crosses a line in the sand where our privacy is not only violated, but completely destroyed.  We lose our individuality as human beings, and we become an open book to anyone and everyone.

So keep in mind the old adage: "What goes around, comes around."       

Courtesy of an article dated May 15, 2013 appearing in Fast Company, an article dated May 4, 2013 appearing in CNN Tech, and an article date May 3, 2013 appearing in The New York Times Bits and an article dated May 15, 2013 appearing in VentureBeat

 

A LOOK INSIDE ONLINE EYEWEAR E-TAILER WARBY PARKER'S NEW NYC FLAGSHIP STORE

 

THE STYLISH EYEWEAR PURVEYOR OPENS ITS FLAGSHIP STORE TODAY. COFOUNDERS NEIL BLUMENTHAL AND DAVID GILBOA SHOW US THE MAGIC BEHIND 121 GREENE.

Warby Parker stormed the retail glasses industry in 2010 with a novel way to sell its affordable, stylish specs: online. Hundreds of thousands of sold pairs later, the boutique glasses purveyor is today opening the doors to its brick-and-mortar flagship store, at 121 Greene Street in NYC's SoHo neighborhood.

The Warby Parker storefront at 121 Greene Street in New York City (Click Image To Enlarge)

Front door entrance to the new Warby Parker store on Greene Street in the SOHO district of New York City (Click Image To Enlarge)

Warby Parker rapidly built a thriving e-commerce business through an innovative model that eschewed costly expenses, such as brand licensing fees, and sold product directly to consumers, allowing the company to sell glasses for as low as $95 a pair.

Warby Parker cofounders Neil Blumenthal and Dave Gilboa in the new Greene Street store (Click Image To Enlarge)

But cofounders David Gilboa and Neil Blumenthal tell Fast Company their brand has had a brick-and-mortar presence almost since its inception. Their first retail location? Blumenthal's apartment.

Blumenthal says.

"We literally would invite people to come to the apartment and we’d lay the glasses on the dining room table.  We thought it was going to be this sub-optimal experience, and it ended up being something really special."

They eventually opened up a showroom in New York City and set up displays within several smaller boutique retailers across the country, including The Standard hotel chain's Los Angeles and Miami locations, where guests can visit Warby's kitschy, '60s-themed "Readery" kiosks.

What you see when you walk in. Hopefully you see it even clearer when exiting (Click Image To Enlarge)

Custom terrazzo flooring embedded with the Warby Parker logo. Partners & Spade dreamed up the store's design conceit (Click Image To Enlarge)

Books by 14 partner publishers in Warby Parker's lobby remind you just how bad you need to be at this place (Click Image To Enlarge)

But Blumenthal and Gilboa have sprinkled the flagship store with an extra dusting of retail magic, taking a few cues from their neighbor across Greene Street: the Apple Store.

 Gilboa says. 

"What I think Apple did tremendously well when they launched retail was not to focus on how to shove as many products into the footprint as possible.  It was really focused around creating a magical experience.  That's what we've tried to create here."

When you walk into 121 Greene, you'll find rolling library ladders, a photo booth, reading materials from Warby-approved independent presses, and mirrors upon mirrors, so you'll never have to travel far to peep a glance at your bespectacled self.

Literary themes abound: The look of the store is inspired by a library. Books on Warby Parker's shelves are color-coded--eggshell, kelly, cerulean, crimson, and aubergine. And the cofounders combined the name of two early Jack Kerouac characters, Zagg Parker and Warby Pepper, to name their company (Click Image To Enlarge)

Warby Parker eyewear is prominantly displayed on well-lit shelves for close inspection and test wearing by customers (Clik Image To Enlarge)

Blumenthal and Gilboa say the store is an early testament to where the retail industry is headed.

Gilboa says.

"The future of our business and all retail is going to have some online and some offline component.  The world doesn’t have to be black and white."

The store's high ceiling has four rolling ladders attached to the walls. Here's the view from a top one of the ladders (Click Image To Enlarge)

Sunglasses and optical glasses--men's and women's--are mixed throughout the display around the store (Click Image To Enlarge)

The store sells books, too. Warby Parker teamed up with 14 publishers to display selected books from their catalogs on 14 different shelves. Shown here are Melville House Books (Click Image To Enlarge)

COMMENTARY:   What was inevitable that Warby Parker would have to open retail stores. Eye vision examinations, filling eyewear prescriptions and fitting glasses requires a lot of personalized service.  You cannot do this online.  It's a real hassle for Warby Parker customers to have to go to an optometrist to have their eyes examined and obtain a prescription for their lenses, then have to provide this information to Warby Parker so that the lense prescription can be filled.  A store provides a completely new customer retail experience that you cannot get from an online store, no matter how well designed your online store is.  

Having a brick-and-mortar eyewear store fills another very useful purpose -- it provides an additional level of convenience for existing Warby Parker customers.  Warby Parker probably sold a lot of eyewear to customers living in New York City, and having a local store to serve those customers, and future customers, will be very good for business.  

The New York store will doubtless increase Warby Parker's operating expenses.  Retail space is very expense in New York, and you have also have the added cost of store clerks and an on-premise optrometist.  

Warby Parker's original strategy was to disrupt the present retail eyewear industry, but it now appears to have taken a 180 degree turn in that strategy.  Only time will tell whether operating real stores will economicaly feasible without disrupting its original strategy.      

Courtesy of an article dated April 14, 2013 appearing in Fast Company 

WITH 480 STORES WORLDWIDE, FOREVER 21 IS EXPANDING AGGRESSIVELY, AND THE COMPETITION SHOULD BE TERRIFIED

Forever 21's grand opening on June 25, 2010 at their new store located in Times Square, New York City (Click Image To Enlarge)

Forever 21 is growing like crazy, and the fast fashion retailer is becoming a major threat to the rest of the industry.

Analysts Lorraine Hutchinson, Paul Alexander, and Jessica A. Lebo at Bank of America warned that competitors need to start paying attention to the privately-held retailer right now.

Forever 21's grand opening on June 25, 2010 at their new store located in Times Square, New York City (Click Image To Enlarge)

They declared Forever 21 "the most transformative retail concept" in a note to clients.

The analysts wrote.

"Forever 21 is becoming too big for the specialty retailers to ignore.   At this size, rapid growth could have ripple effects on the other retailers as Forever 21 takes more share."

Forever21 oepns New York's largest clothing store in Times Square (CLICK IMAGE TO VIEW VIDEO)

Back in 2008, Forever 21 SVP Christopher Lee told the Los Angeles Times that the company's goal is to become a "global retail conglomerate."

And it's well on its way.

Don Chang (right) and wife Jin Sook Chang (left) opened the first Forever 21 in 1984 (Click Image To Enlarge)

Forever 21 has expanded to more than 450 stores in the U.S. and nearly 100 locations internationally.  It charged into Europe, put its foot into China, and now has its sights on Latin America. Bank of America estimates the company's sales at upwards of $3.5 billion — in line with many big teen retailers.

Don Won (Don) Chang founder and CEO of Forever 21 and daughters Linda Chang who is the Marketing Director and Esther Chang who is the Retail Merchandising Director (Click Image To Enlarge) 

The big players in teen retail, like Abercrombie & Fitch, Aeropostale, and American Eagle, will feel the pressure. Gap has also been squeezed by Forever 21, as it sees revenues and margins getting eaten away, according to ACM Partners' Margaret Bogenrief.

Don Chang, Founder and CEO of Forever21 speaks about his company (CLICK TO VIEW VIDEO)

Why should they be worried?

Forever 21 is faster and cheaper — It uses the fast fashion model, getting new fashion trends to stores as quickly as it possibly can, then selling at a low price. Traditional retailers try to establish a brand with a signature look, so it's very unlikely that others will try to copy Forever 21 after spending so much time and effort building their own brands.

 

And it simply sells clothing for less than its rivals do. "Forever 21 sells jeans for as low as $15, where teen retailers generally start at $30 for this important category," noted the Bank of America analysts.

Forever 21 is expanding its customer base — Forever 21 is becoming a fashion department store that caters to all members of the family — not just teens. 

That means a broader set of customers are being gobbled up by the retailer as it releases new lines targeting men and older demographics. Yet, at its core, Forever 21 still has a similar target as the big teen retailers – 18- to 24-year-olds.

Forever 21 is fighting its competitors head-on — The retailer used to settle for second-tier malls and mediocre space in the big malls. But now, Forever 21 is done being timid. 

Wrote the analysts.

"We have seen Forever 21 take on much better located spaces and often larger sized stores."

It even has a Times Square flagship directly across the street from both Aeropostale and American Eagle. 

COMMENTARY:   In a blog post date Janaury 21, 2011, I profiled Forever21 for the first time. The company had revenues of $3 billion at the end of 2010, and has probably reached $4 billion plus in revenues by the end of 2012.

Forever21 has now become a mainstay in every budget stylista’s shopping arsenal, yet few know the beginnings of one of the most popular stores in America. In this “History of Budget Fashion”, we explore the beginnings of the retail chain as well as some of the challenges faced by the store.

The first Forever21 store, originally named “Fashion 21”, was founded in 1984 by Korean immigrant/entrepreneur Do Won “Don” Chang in the community of Highland Park, with the goal to sell Korean fashions stateside. According to a 2010 Los Angeles Times article, Chang got the idea for a retail store after he noticed “…the people who drove the nicest cars were all in the garment business”. Soon the store became popular and started to expand into other areas of Southern California.

While Chang’s interest was more economic than sartorial, he was unknowingly at the forefront of a new trend (along with Halston, Jaclyn Smith, Wal-Mart, etc) in retail– the bridging of the gap between high fashion and the American mass market consumer. During this time period, the rise of networked computers and retail technologies reduced the “supply chain”, which meant the time and cost it took for a piece of apparel to go from production to the store was significantly reduced. So, that shirt on scene during New York’s Fall 1984 fashion week could go from concept to reality in a significantly faster time.

Fashion became faster, allowing chains like Forever21 to deliver high fashion (at least in concept, if not in quality) to consumers in a matter of days.

Forever21 and It’s forever list of issues

Forever21's incredible success has not come without controversey.  According to Forbes, the company has been sued for copyright infringement dozens of times from “borrowing” heavily from established designers like Diane Von Furstenberg and Gwen Stefani.  Designer Anna Sui has also filed a lawsuit against Forever 21 alleging that Forever 21 sold and offered for sale numerous women's fast fashion clothing items bearing a striking similarity to her products featured at the most recent New York Fashion Week shows. The suits could stem from the fact that Forever21, unlike H&M, the company didn’t hire designers to “alter” designs, so the resulting pieces were extremely similar to the originals by top designers and brands.

Forever 21 has recently been subject of additional controversy, stemming from an interactive billboard installation in Times Square, in New York. It is alleged that Forever 21's advertising agency, space150 and director Nicholaus Goossen, copied a similar piece - created in 2009 - from London by interactive artist Chris O'Shea. These allegations have led to heated exchanges on the Vimeo page showing the work between Goossen and other users, including well-known members of the interactive and new media art communities. Both space150 and Goossen have since apologized publicly on Vimeo.

In January 2012, a class action lawsuit was filed against Forever 21 by its employees stating that Forever 21 systematically failed to pay them for hours worked. Employees of Forever 21 are required to subject their personal belongings to a "Bag Check Policy" to ensure there is no stolen merchandise. As part of this policy employees are required to have their belongings checked while still clocked in, however according to former and present Forever 21 employees the bag check has been done while clocked-out resulting in unpaid time while working.

The store also experienced worker rights issues in California (note: most of Forever21’s items are made in their factories in Southern California), which have been resolved and several shoppers have complained about the perceived overt Christian ties of the store (Chang and his family are devout Christians and a reference to the bible passage John 3:16 is printed on the bottom of every bag).

The Future of the Store

However, these problems have not slowed down the rocket growth of the company, which is one of the fastest growing retail chains in the world. The chain has purchased several spaces once occupied by the old Meryvn’s department store chain to turn into large Forever21s.

Forever21 Forbes Ranking

According to Forbes, Don Won Chang and Jin Sook Chang have an estiated  combined net worth of $4.5 billion as of March 2013, and they rank #276 on Forbes Billionaire list for 2012 and rank #76 on Forbes 400 List.

Courtesy of an article dated March 11, 2013 appearing in Business Insider and an article dated August 21, 2011 appearing in The Budget Fashionista and Forbes 400 List an Forbes Billionaire List for the year 2012

 

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