The Brand Man Speaks

Abercrombie CEO Jeffries disses customers who are fat, skinny, old, unattractive

In an old interview that is being resurfaced in the new retail tome, "The New Rules of Retail",  Mike Jeffries CEO of way past its prime young adult retailer Abercrombie and Fitch is quoted as dissing anyone who doesn't fit the image of the model beautiful kids he promotes for his brand.

Jeffries is no stranger to controversial actions with the A and F brand often accused of pushing the envelope with highly charged sexual visuals in the company's catalog and instore. He is also one of the most highly [over] paid executives in the United States.

It is certainly the perogative of the company to clearly state its brand positioning and the target audience it seeks for its products. This is good business. The irony here is that "perfect" beautiful all-American look of young men and women in their late teens and early 20s is what attracts a large audience of folks to the brand who do not look that way--not remotely. That image is one many would like to align with themselves and the closest way to do so, is to buy into the brand. Large numbers of A and F loyalists are over 25--beyond the key target--, including a large grouping of gay men who are 40 plus who are fit and see themselves as in their 20s and "competitive" with young buff all-American guys.

For those consumers who do NOT like Mr. Jeffries stance, they do not have to buy his company's clothing. They should not complain or feel insulted. If they want to be a part of the A and F brand they have to deal with the fact that they are not the company's prime targets. Period. And, honestly, many of these folks should NOT be buying this brand's apparel. They truly do not look younger in those clothes and are only fooling themselves. But, hey, this is America. Dress as you wish. Just do not complain.

Watching out for you everyday.

Eli

 

 

JC Penney CEO Ron Johnson, who twice tried to revamp the retailer, is out.

It was no surprise to read the headline posted above earlier today, (I have written several blog posts about why JC Penney was making serious brand mistakes). After several failed attempts to revamp mid-market retailer JC Penney, it was painfully obvious that the company's board needed to cut the blood letting as soon as possible. Business was down 25% last year.

What went wrong? Johnson, a notable former Apple exec, was picked to bring retail savvy from the technology company to a tired old department store brand. The problem is trying to up-market a lower end retailer whose sales were driven by price (and big sales/discounts/coupons) has historically not worked (for anybody). WalMart tried this approach a few years ago trying to out up-market Target and it also failed miserably.

Although re-branding an entity can be done, the approach used for JC Penney that tried to eliminate its brand essence and its positioning as a price point retailer was failed from the get go. Penney's customer is price driven all the way and not interested in complicated pricing strategies (there were numerous strategies used that easily confused the regular consumer) as introduced under Johnson in an attempt to get people off sales and coupons.

Its ad campaigns looked like Target knock-offs as did the catalogues and newspaper free-standing brochures they produced.

Unless the brand had something in its bag of tricks that would re-birth JC Penney without alienating and confusing its core buyers, any new strategy that made customers sense that prices were going up and that the store was moving more towards being Macys or a boutique operation was doomed to fail.

I actually think the board waited too long to make this decision and should have cut the cord after one season since the reasoning behind the pricing strategy was flawed from the beginning and trying to make JC Penney the "Apple" of department store retailing was never going to work.

Watching out for you everyday.

Eli

 

BUYING ONLINE? Beware of co's using the UPS/USPS shipping method

Millions of Americans buy online everyday because of the simplicity of the purchase experience as well as competitive prices (to brick and mortar) and low or no cost shipping.

Increasingly, more online retailers are turning to a hybrid shipping method to save money and thereby offer more consumers "free shipping". Free shipping has become an almost mandatory offer to get consumers to buy from one online retailer or another.

VIPs at Zappos and Prime customers at Amazon get quick free shipping and value that amenity to the point it is now a commodity. These companies use UPS or Fed Ex for shipping and my experience has been extremely good with both.

Three weeks ago I bought items online from Under Armour clothing and then last week from Footlocker. Both companies use a new hybrid delivery system that quite frankly stinks. They use UPS and USPS together to deliver. The process starts with a UPS pickup from the online retailer but there is a hand-off to USPS (your not so friendly postal service) when the package gets to your neck of the woods.

What I have experience is the package gets lost for a while (can't be tracked by either party) and definitively arrives late. My Under Armour package just showed up one day after I had already asked for a credit and a re-order.

UPS says the problem is USPS. USPS says its UPS. The bottom line is the customer gets the bad end of the deal and no one takes any responsibility for the problem.

My recommendation? I now ask an online retailer how they ship. If they use this hybrid, I search for the product elsewhere. I believe this attempt to save money will only alienate consumers. To save a penny to lose a dollar is not good business.

Watching out for you everyday.

Eli

 

Lance Armstrong to "mea culpa" on Oprah. Doubtful cyclist's "confession" will enhance his brand value

Finally after years of denying he used any performance enhancement drugs of any kind, Tour de France wonderman, Lance Armstrong has decided to come clean (to some degree) about his drug use. The 7- time champion has agreed to talk to Oprah after years of insisting he was being unfairly targeted and accused.

Most people over the past few years began to believe he was guilty but very astute at avoiding a need to confess. He was very outwardly agressive against any source who challenged him. What changed? After Lance was banned from participation in sanctioned events (Triathlons for example) his career came to a stand still. He is a great athlete no doubt and that is what he does...compete. Not being able to do so was of great concern to him.

The mea culpa he chooses to give this Thursday to Oprah will likely have some admissions but I doubt he will completely come-clean. The man worth $125 Million (supposedly) from his athletic success and championships in cycling is certainly to some degree at risk. But the man stripped of all his achievements (and dumped from his LiveStrong Foundation) has little else but money (not bad in its own right) to show for his efforts. I think a great athlete is always a great athlete even if a cheater and I suspect Lance "needs" competition to feel alive.

However, his integrity and brand are unquestionably damaged. Sure athletes who get into trouble mostly manage over time to improve their image to some degree. Marital issues seem to get resolved more easily than cheating at one's sport. Just ask Pete Rose who still after years of being banned from baseball still pines to be a part of the game in some way. Also notice how suspected drug enhanced NLB stars did not get elected into the Hall of Fame this year.

Given how much attention this case has received, unlike even Tiger Woods (whose image has still not recovered nor has his game) I think Armstrong's credibility and integrity are shot for his lifetime and few sponsors despite his achievement of beating cancer are likely to come back to him. Why should they?

He probably has some civil legal battles to fight once he comes out. Supposedly lawyers had advised him NOT to talk to anyone, certainly not Oprah. I actually don't think people will forget but with Oprah people might start to forgive. I will NOT be one of them.

As a counter point to this mea culpa event, ADFNA is being launched. The Association of Drug Free Natural Athletes. This organization, the first online community of drug free natural athletes, is the beginning of what I hope is a sports culture change in this country. (Full disclosure: this is a venture I founded to honor and celebrate athletes around the globe as a result of watching sports become tainted by drug enhanced athletes.) I know many great athletes of all ages who find competiting against so many drug enhanced competitors depressing.You might be surprised how many adult amateur athletes now cheat just to get on the podium even when no prize money is involved! It's time to give this group of natural athletes a chance at being part of a meaningful community of like minded athletes around the world.

Like millions I will watch Lance on Oprah but I do not expect to be surprised or to feel any compassion for this man, just pity and sadness.

Watching out for you everyday.

Eli

Lincoln Motor Cars: Come back brand of 2013?

Many media outlets and marketing experts are touting the comeback of several old time brands in 2013, the prominent of which is Lincoln.

The stodgy "town-car" brand of the past two decades or a dinosaur to most has been an aging auto brand once a noted luxury marque that seemingly was dying a very very slow death.

Like the ad phrase that did NOT help now defunt Olds, "Not your grandfather's Oldsmobile", Lincoln is trying to completely re-brand itself through its new model the MKZ.

I know Lincoln must think I am a prime target for the new model. I own two European luxury cars and while driving one in a gourmet store parking lot recently, a parked MKZ caught my eye. I have always been a car buff so new or distinct cars always catch my eye. What made this experience different was the fact that just as I sslllloowwwly passed the MKZ (not knowing what brand it was) a stunning Afro-American woman appeared from beside the parked car and approached my window.

"Like what you see?" is what I think she said and from there a 20 minute conversation ensued. It was like my own private auto show and I was very intrigued.

When I first was told it was a new Lincoln, I had an instant negative feeling but something said listen a bit more before you make up your mind. (The beautiful woman did not hurt that cause one bit). After my personal visit with the MKZ I was impressed at virtually every turn and thought "wow, this could really give BMW and Audi a run for their money".

The woman who stopped me to talk about the car was part of a strategic effort to reach out to affluent targets (many older than Gen X the supposed target) on a one to one basis to introduce the car before it went public. Intriguing idea. I will admit I would less likely have spent time investigating the new model had it been through traditional new car introductions, (even at the local auto show that took place a few weeks later the presentation of the MKZ was stale and reaked of old school approach--not in a good way).

I don't know if one model can rebuild Lincoln but I am intrigued and probably will go for a test drive to see if the pedal meets the metal. I still have that feeling that Lincoln is an old persons brand and only for town-cars that will be hard to shake, but I am willing to give it a try.

Now, Lincoln has to truly deliver on all fronts to convert Euro lux brand car owners and that will include a vastly upgraded dealer experience and more intriguing models. The Lincoln ad campaign is very sexy and edgy pulling the best of the brand's past reputation for innovation (suicide doors on the sedan in the sixties) into the future, (state of the future technology.)

I will report back after my test drive.

Looking out for you everyday

Eli