Women and Networking: Maintain Your Safe Space

I remember as a young professional that I was in awe of a new up-and-comer who within a few months of starting at the company was already playing golf with a senior leader.  But then I realized these bonds are more easily created among men, where there were no risks of complications (for lack of a better word) or HR violations.  My female colleague shared the same sentiments with me.  A woman trying to establish herself in a man’s world is automatically up against a lot and every female professional has experienced what it is like to go against the grain.  But networking is still part of the game and despite challenges, we have to do it.  We also have to do it with safety in mind.

The most important and unique job advice I have ever received was from a speaker at a job seeker’s seminar for arts professionals.  He gave advice I had never heard before and have never heard again—it has stuck with me ever since.  He said this to everyone in the audience, not just women.  But as a female professional, I took heart to this advice even more.  The speaker said very plainly, “If you are ever in an interview or a situation where you feel unsafe, get up and leave.”

Sometimes walking away is the right thing to do.  As you progress in your career and continue to build your network, remember these safety tips when networking:

1. If you don’t know the person colloquially, they should never approach you with anything more than a handshake.  They should always be professional.  You are not friends.  If the person acts in a manner that is not professional, that should be a red flag that the relationship is not worth your time.
2. Never stray from the agreed meeting place.  If the person calls last minute to change the location with whatever excuse, try and reschedule.  Politely decline any requests to go somewhere else after the meeting.  Always pick a public meeting space like a coffee house.  Remember that you both agreed to this meeting place and time beforehand.  Any requests for changes to location can be a red flag for bad intentions.
3. Listen to your gut. If things feel unsafe, leave or find a staff member who can help.  More restaurant owners now are providing training to their employees for intervening when their patrons are in dangerous situations[i].  It’s okay to distance yourself from this person.  You will find other people who will truly support you in your career journey.

Good luck and stay safe out there, ladies.  I believe in you.

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[i] https://www.standupresources.com/stand-up-campaign/stand-up-training

https://www.thecenteronline.org/education/community-education/raise-the-bar/

https://www.ksat.com/news/2018/03/09/local-companies-using-domestic-violence-training-to-teach-employees-to-look-for-signs

Travel Tips for the Pandemic Weary

It has been a much longer battle with Covid than anyone expected.  The pandemic has affected many industries.  Hotels have not been immune to the various shortages plaguing the economy.  I discovered this while looking for a hotel to attend my friend’s New Year’s Eve wedding.  The common thread among various hotel reviews was the lack of upkeep due to many properties being short-staffed.  It seems the hotel industry has suffered labor shortages as well and employees calling in sick after catching Covid tightens the strain.  With the border reopening some weeks prior to the wedding, I thought the reintroduction of migrant labor would ease some of this.  Unfortunately, it will take some time for companies to hire the right people and get them trained.  For the time being, travelers will need to be prepared for the unexpected.

A sampling of recent hotel reviews

• Read the reviews

See what the common misgivings are at each location to decide for yourself if you can deal with it.  Some hotels have reduced amenities due to Covid, so full breakfast bars have been replaced with some individually wrapped food items to grab on the go.  I don’t know if this was a Covid workaround or not, but something I’ve never seen before was that they had a dedicated food delivery drop-off table at my hotel for services like Uber Eats and Postmates to drop off their deliveries for guests.  You can call your hotel to ask if that’s available because it wasn’t advertised.  Some hotels have closed pools due to chlorine shortages and limited staff.  Some hotels have really let maintenance go by the wayside amidst these challenges, so guests complain about issues from the milder “things are broken”, to the grosser “showers are grimey.”  I know that all hotels are doing the best they can, but expect that things will slip up because of all of these economic challenges.  Just bring your patience and your smile, and people will feel your kindness through your mask.

• Look at Covid protocols

Some booking websites have dedicated Covid sections that list hotel policies on social distancing, masks, and extra sanitization practices.  Some properties even wait a full 24 hours after the last use before each room is checked out to another guest.  Many offer contactless check-ins and check-outs, but you may have to call to arrange it or download an app to do it.  See if the protocols fit your health needs before deciding to book.

• Pay for the best hotel you can afford

When I was picking a hotel, I learned after reviewing a lot of comments that now is not the time to be frugal.  In normal times when everything was flourishing and the world was abuzz, it was okay to look for cheaper hotels.  But during these challenging times, I decided to pick a large hotel chain because they have better clout to maintain basic things, like sanitation, compared to boutique hotels of the mom-and-pop variety.  Just don’t forget that resorts and more expensive hotels will have extra fees for things like parking, internet, and fancy facilities. 

• Pack light and make time

One shoulder bag and one rolling bag was enough to keep my hands free to frequently sanitize and moisturize.  It’s hard enough running routine errands with a mask on, but it’s really difficult hauling luggage with a mask.  The lighter your haul, the easier your trip will be.  One thing that helped was to give myself plenty of time to slowly get to where I needed to go, so I didn’t have to power walk through a large property mask-on, which left me winded quickly.

• Don’t leave home without:

-Shower shoes.  Don’t forget them like I did and then end up with a weeks-long skin infection after using the gross shower.  I am forever traumatized.  It’s been one full nightmare of a fortnight (and a half).  With the chlorine shortages and labor shortages, take no chances, resort or not, because maintenance is expected to be spotty until supply chains fully recover. There will be a domino effect of industries hiring the right folks and training them up the entire supply chain. I’m guessing that will take 2 years?

-Extra masks and hand sanitizer, in case you lose one (or a few).  Or for an enclosed wedding situation where you wanted to switch masks in between locations because omicron spreads like wildfire and it’s better to be safe than sorry.

-Antibacterial wipes because the one complimentary wipe provided by the hotel is not enough.

-Good moisturizer.  Our skin is our first line of defense, and happy skin will better defend against germs.

-Gloves.  I packed a pair of disposable gloves to do my Covid test before heading home. 

-BYOB. Pack your own vial of bleach/vinegar to sanitize your shower shoes and other items after use.

The Mystique of Japanese Practices: Wisdom From My Studies Abroad

There is always that sense of hectic craze when one travels.  And when the trip is for a prestigious study abroad program, there is the added burden of trekking with school supplies and business suits.  For the record, school supplies include a too-heavy-for-travel laptop.  The symptoms are unmistakable: the heated rush of stressed travelers already overburdened by the weight of their possessions after the first ten minutes, heavy and hurried footsteps that crescendo with every arrival and departure, the nonverbal complaints expressed at the sight of security lines, the distant hums of aircraft which add to the predictable cacophony of the airport, and the growing excitement of fellow fliers at every mention of the destination.   Travel is a lot of work, but why we travel has much to do with our innate curiosity about the world.  We travel to experience something outside of the norm of our daily lives.  We travel to learn about other places and people.  We travel to explore other customs and traditions.  And when we travel for school, we get the added bonus of seeing the other side of the world through a special lens that zooms in on local business customs, professional practices, and social issues.

This time, I landed in Tokyo with my Corporate Governance class.  Our class had the privilege of gaining insights from local leaders that normal travelers would never access.  After all our company visits, I learned three important things about business in Japan: public opinion is a big component of legal cases, continuous innovation is a necessity even at the most archetypical companies, and external influence is a challenge in an increasingly global world.

At Nagashima Ohno, & Tsunematsu law firm, partner Akihisa Shiozaki discussed the Olympus accounting scandal as one of the lawyers involved in the case.  The most poignant takeaway from his discussion was that public opinion can make or break a case.  This was why his client, the former CEO of Olympus, went to the press about the fraud.  In Japan, suits have to win in the courts and in public opinion, or all effort is lost.  This is an interesting feature of the legal landscape in Japan and differs from the US legal system, where legality is more black and white.  The public opinion requirement adds a human dimension to legal cases that can represent an extra challenge for firms.  Laws can be easy to interpret, but people can be hard to convince given all their biases and perceptions.

At Toyota, one of the most archetypical companies, and creator of some of the most iconic business practices like Just-in-Time production, we learned about Toyota’s need and philosophy for continuous improvement.  The team shared with us their belief that innovation is the key to continuous improvement.  This idea embodies the Japanese idea of kaizen and it permeates every aspect of business at Toyota.  To achieve this, the company looks at core building blocks of products to find ways to simplify processes and add value for customers.  Each new model becomes the base for later models, with improvement sought at each new iteration of a product.  For example, the increased use of laser welding has made the new Prius body more responsive, which feels sportier to the driver.  Continuous improvement like this allows Toyota to stay relevant and keep making cars that are fun to drive.

At several of our company visits, we learned that it is difficult being an outsider in Japan.  It can be difficult to understand this, given the US culture of a melting pot society.  US organizations are more accepting of diverse opinions and outside influences.  In Japan, this is not so.  External board members are supposed to represent the independent voice in the corporations they serve, but are often disregarded.  Foreign executives often find they have little leverage in their companies because employees are loyal to certain Japanese leaders.  Foreign residents may never fit in or secure a future in Japan unless they speak the language.  Because of these obstacles, outsiders may find it difficult to do business successfully in Japan.

Despite all of the challenges in Japan, there are abundant opportunities.  Japanese ingenuity will pave the way for future growth.  Tokyo is such a strong financial center, with amazing industry, life, and energy.  I’ve only witnessed a slice of Japanese life, and while I don’t know if I’ll ever return to see the rest of it, I bring home a bit of Tokyo with me in the experiences I have gained.

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What I appreciate about the Japanese:
-Japanese efficiency and innovation
-Adherence to values and tradition
-Hospitality and respect
-Public toilets that actually invite you to sit down

Returning back home after all the hubbub of travel always requires an adjustment.  I re-learn to settle back in to the rhythm of my daily life—and the work that is waiting for me.  I catch up on my life, and, if I’m lucky, pick up right where I left off.  Of course, I am comforted to return to my loved ones and the life that I left behind.  After every trip, I always return appreciating home a bit more—grateful for the life that I lead, the people I share it with, and the opportunities I have seized.  And when that travel bug gets me again, I will be seizing the next opportunity to journey abroad once more.

The Mondragon Experience

Originally written July 20, 2015

The study abroad program in Mondragon was a great way to see firsthand how a cooperative model works.  Being overseas in Spain and learning from locals in the Mondragon cooperatives is the best way to see how business with a purpose can succeed globally.  It was eye-opening to see the strides that Mondragon has made with its employee-centered initiatives.  It was even better learning that they became successful enough to scale globally and now have operations all over the world.

The Mondragon model is an interesting one because it is imbued into the fabric of the entire community.  Mondragon is not just one company, but an entire network of cooperatives working together to achieve the same goal.  The overarching mission of Mondragon Cooperative Corporation is to create and retain jobs.  All of their strategies and developments center around this one mission.  They achieve this by forming a strong network of cooperatives where each one supports another.  It is the interlocking of dependency and cooperation that gives Mondragon cooperatives their resiliency.  If one cooperative is struggling, there are resources available from the others to keep it afloat.  If one factory is closed, workers can be relocated to other cooperatives.

This concept of pooling and sharing resources should be the main takeaway for American businesses.  Not only is it a great way to weather downturns, but it can be a powerful tool for sharing best practices and making the entire community better.  It makes an organization more resilient.  It also has the potential to extend the reach of an organization.  Each organization’s impact is limited to its individual capacity.  But when organizations team up, the collective impact will always be bigger than each individual member’s impact alone.  The power of pooling is an amazing phenomenon that Mondragon has mastered well and American organizations can try to borrow some of the same ideas to become more efficient.

 

See the Ahler’s Center version (published 4/4/16) of my post here and see all my pretty pictures: http://sites.sandiego.edu/ahlers/2016/04/04/mondragon/
Ignore their changes (errors included)

 

Marketing 3.0: Beyond Product Sales

Business is moving in a different direction.  Old school marketing used to be based on the notion that you were selling a product to a vast, mindless population.  The more you sell and the more brand recognition you could garner, the better.  Sometimes it did not even matter if the product was of good quality.  All you had to do was sell, sell, sell to get consumers to buy, buy, buy.  But consumers are tricky creatures.  They are complex, multi-celled organisms that can think and act for themselves.  They exhibit behaviors that are both predictable and unpredictable.  They adapt and evolve just like everything else.  And while they still do jump onto bandwagons on a whim, they are also capable of hopping off the bandwagon just as quickly as you were ready to say, “I do.”  They have become immune to your played-out tactics.  They can easily identify when you are trying to sell sell sell and shut you out even more easily.  As a result, they are more cynical and skeptical than ever.  Selling is now a complete challenge.

The population has developed an antibody to the old way of doing things.  So how do you control the flow?  How do you introduce a new idea to them without being attacked?  How do get them on without letting them off?  You can’t block the exits.  That would probably violate some sort of fire code.  At this point, you are starting to realize that the old way of selling is no longer effective, at least not in the long term.  You are tired.  You are depressed.  You are afflicted with a magnified sense of doubt and self-pity.  Consumers flock in and out of your life like casual lovers.  And although the fling was intense, you realized that you needed more.  They needed more.  There has to be a way of making it stick and, in turn, making your customers stick around.

You start to reevaluate your priorities and you take a hard look at your life.  What is it that you’ve got wrong?  And what do you need to do to get them to commit?  What good is the love you are willing to give if there is nobody on the other end who is willing to receive it?  Perhaps the key to controlling the flow is to break it up.  Do not focus on mass movements.  Instead, draw in individual interest by engaging the sentiments of people.  Stop marketing to mindless, migratory populations and start targeting the individual who has real thoughts and emotions.  People have real ideas, feelings, and perceptions and they interact with the world accordingly.  Invest in keeping a strong bond with a few loyal customers; it is much more effective than banking on bandwagons that may never arrive at your doorstep.  Technology has changed the way people interact with the world and with you.  Armed with the internet, individuals are savvier, smarter, and more educated than before.  They are also less trusting and less patient than before.  This presents an interesting factor of intrigue.  You suddenly see your consumer as a living, breathing, and thinking individual rather than a microcosm that is aggregated with a faceless population.

There should be a variety of ways to address this shift.  Some strategies do not work for everyone.  There is no one cure-all.  One very powerful way to come up a winner is by appealing to the thinking consumer by advocating social issues.  Your new focus: the triple bottom line, which places equal emphasis on the three pillars of profit, social issues, and environmental concerns.  It is no longer enough to focus on profit.  You have to care about operating in a socially responsible way.  You have to minimize your impact on the planet.  People care about these issues.  Promote these ideals and show a strong commitment to it and you will be able to connect with customers on an elevated level.  The growing emphasis on the triple bottom line provides companies with a different way of innovating and I believe that it is not only socially responsible to shift to this mode of operation, it is also the future of commerce. Companies that fail to socially innovate will fall behind.

Today’s consumers not only want to align with a company’s product, they want to align with the organization’s values and beliefs as well.  I read a recent article that explained how marketing is changing to appeal to the socially conscious side of consumers; it is the future of marketing. This is true for me as a consumer.  I find myself admiring companies that have demonstrated a commitment to sustainability and ethics.  Although brand-status is still important, I find myself more attracted to companies that are driven by strong values.  I want to be able to align with a company as a consumer because I believe in what they are doing.  Buying a quality product is great, but being emotionally invested in a company because they operate based on their values is better.  Aren’t all great marriages based on strong emotional commitment?  It is this strong emotional commitment that will make customers identify with not only your brand, but your company as well.  This is much more effective than getting people to simply like a certain product.  This allows for a deeper connection with your customers that goes way beyond basic product sales.  This kind of connection produces the most loyal customers.

Companies on the cutting-edge of social innovation include Patagonia, Clif Bar & Company, Ben & Jerry’s, and REI.  Each company may have different goals, but all have certain qualities in common: they show a strong commitment to socially responsible business practices, they care about their impact on the environment, and they strive to promote at least one social cause through active involvement.  They are not afraid of turning traditional processes upside-down to create something better.  They sometimes invent new methods that contribute to greater efficiency and are proud to invest their own resources doing so.  They demonstrate excellence in operating leaner, meaner, and greener.  While they still care about selling quality products, they place a heavy emphasis on society and environment as well.

Patagonia is a great example of a company I admire.  It was one of the first companies to operate and innovate based on the triple bottom line.  Their commitment to sustainability and their ability to transform their operations to support their values is inspirational.  They have active programs that encourage employees to take on environmental causes.  Research and development includes investigating raw materials to find textiles and fibers that can be responsibly sourced and produced.  And they are meticulous in their research.  They embrace transparency and publish information about their suppliers online.  They famously support only ethical suppliers and work closely with them to develop greener and more socially responsible ways of production.  In 2011 they relocated their port from Los Angeles to Oakland, a massive undertaking, to be closer to the Reno distribution facility.  This overhaul was no easy feat.  They enlisted the help of consultants to make sure they got it right.  But the time and resources invested in the change paid off in the long run, reducing their carbon footprint by 31% and saving them $324,000 in just a 10-month period[i].  A shorter trucking distance saved money and the environment.  The kind of commitment the company shows to social responsibility is commendable.

If that doesn’t tickle your fancy, check out the current “To the Ocean” campaign by Rubio’s.  It is a good example of marketing that is not trying to sell something, but trying to promote the company’s ideals by engaging the emotions of viewers.  In this case, the appeal is the love of the ocean and, subtly, the appreciation of nature in general.  Not once are fish tacos mentioned.  Not once does Rubio’s say, “Buy this now!”  It is just a simple, yet profound, love letter to the ocean.  And by doing this, Rubio’s invites customers to align with the company in a new way—a way that involves strong emotional connection.  It’s a powerful appeal.  In this new age, having a quality product to sell is great, but having a strong, macro-level bond with your consumers is even more important.  Show that you care and people will be proud to call themselves a customer.  Think about it.

 

 

Endnotes: sources

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[i] “Changing Ports Pays Dividends.” The Footprint Chronicles. http://www.patagonia.com

Localization is the Key to Sustainable Growth

From a business standpoint, global commerce is the best thing that ever happened to the income statement.  Instead of limiting a target market to one region, the customer base suddenly expands to the entire world.  Revenues can now skyrocket from millions to billions of dollars (even trillions).  The world is your oyster.  Globalization has fueled the expansion of international trade and cooperation.  From a numbers standpoint, it has been a lifesaver for many world economies—especially the smaller ones.  But globalization has also sparked the rapid depletion of precious resources by allowing overconsumption to grow unchecked.  The world is using up resources faster than they can be replenished.  Fish are being fished to near extinction.  Rivers are running dry.  If we continue at this rate of consumption, will there be any resources left for posterity?  By buying locally and sourcing locally, we not only support local economies, we scale down the rapid consumption of resources.

Supporting ourselves with the local economy and ecology is one of the pillars of responsible consumerism.  Of course, responsible consumerism is also many other things—limiting overconsumption, not taking more than we need, buying green products, buying humanely produced goods, etc.—but we need not discuss these topics here.  The point is that buying and sourcing locally allows for healthy and manageable regional growth.  Local economies and businesses can develop and become more efficient as the focus shifts away from massive, global production.  When local economies become strong, they can better serve their people and their regions.  Why is large-scale global production bad, you say?  It causes many of the issues associated with mass production.  Mass production on a global scale puts an incorrigible amount of stress and burden on a local ecology.  When one region is expected to serve the world, resources start to deplete faster than they can replenish.  The air and environment get polluted at alarming rates.  In addition to raw materials being used in the goods that are produced, other resources are consumed at higher rates to complete the business cycle: more electricity for production, more coal for the electricity, more fuel to ship the goods overseas.  It is a vicious cycle, it is unsustainable, and the damage done could be irreversible.

Imagine Susie is holding two bake sales.  One sale is just for her home town.  She spends all weekend baking 200 cookies.  They sell out while still fresh.  At the end of the weekend, she is tired, but feels it was well worth the effort.  Her second bake sale is for the whole world.  She spends all month baking and mailing thousands of cookies nonstop.  Some cookies arrive at the other side of the world stale.  When it is finally over, she wonders if her oven still works, how much her energy bill will be, how much she spent on stamps, how she managed to buy out the town’s flour supply, and why she even decided to do this in the first place.  The second plan was not a good idea.

This is why textbook examples of economies of scale are not all they are cracked up to be.  Economic theory never examined the consequences.  Because once you look at how it can devastate a local ecology, you start to see that the costs outweigh the benefits.  To keep up with a high level of production, resources have to be exponentially consumed and factories have to run nonstop.  This stresses a region’s environmental health.  Who wants to live in a world where the air is thick with fumes, the water is not safe to drink, and acid rain is a common occurrence?  Not me.  Economies of scale on a global level become detrimental to the local ecology and the supply of raw materials.  Global mass production should be avoided as much as possible.  Of course there are several products that are only found in certain places in the world, like oil and diamonds, which will always be globally sourced.   But there are also many more products that can be locally sourced and produced.  We should do our part to ensure that localization happens as much as possible.

For those worried about losing economies of scale, the concept can be applied regionally for maximum efficiency.  This helps a local economy grow and develop sustainably.  The strain on world resources and ecologies become much lessened when localities are serving a smaller and more manageable body of constituents.  Localization can actually provide more benefits to all regions.  When more businesses are introduced to serve a new industry, the local economy strengthens.  Skills can be learned and techniques can be transferred.  Introducing a new business to fill a previously neglected niche is not too hard a task.  It may not be easy, but it will not be overly difficult either.  The increase in world supply of a product also lessens the strain on the global producer just due to sheer supply and demand.  This causes the global brand to produce more sustainably and perhaps will allow them to focus more on quality than quantity.  Let’s say there is this wine that used to ship all over the world.  One day, Citysville decides to make their own wine.  Now, with local consumer demand split between the global label and the local label, the global producer doesn’t have to work so hard anymore and can spend more time perfecting its wines or even developing new wines to stay relevant.

A single region cannot and should not be expected to serve the entire world population.  With localization, acres of animal habitat do not have to be sacrificed to make way for massive farms.  Food that is grown in local areas is not only enough for the people, but healthier and fresher for the people.  Less resources are consumed because production happens on a smaller scale.  Less electricity is used in factories.  Less fuel is needed because items don’t need to be transported very far.  It becomes a much healthier cycle.  It affords the local region healthy growth that is actually sustainable.  With localization, instead of focusing on “more more more,” it simply becomes enough.  All local economies should strive for this state of producing and consuming just enough.

Realize that the choices we make and the actions we keep are not without consequence.  We want to leave a world behind that thrives for our children—a world that will continue to support them…and their children.  In order to do that, we must focus on positive changes.  We should strive to create a world where we live in harmony with nature–not dominate it.  We should be more conscious of our buying habits.  And our “throwing-away” habits.  We can only do that if we not only change the way we act, but the way we think.  Change the way we think in consumption.  In production.  In business.

How Less Frequented Stores Can Make a Comeback

I shop around.  When one isn’t rich, one is forced to.  Money doesn’t grow on trees, right?  I often see that shabby stores are much less trafficked than their well-off counterparts.  I am talking about the Mom-and-Pop shops, independent retailers, and the second-rate stores.  I am a fan of shabby stores.  There is a magical property about discovering shabby-chic goods at these stores that I don’t feel anywhere else.  It is not flashy, fluorescent warehouse sterility.  It is warm, jewel-toned soda pop cuteness.  Shopping at Big Lots, for example, is like browsing an organized flea market…sans the used goods.  And I have safety trimmers bought at a dollar store years ago that I cling on to for dear life because I haven’t seen even comparable versions sold elsewhere.  These less-popular retailers have become a vital part of my livelihood.  Their survival ensures my survival.

So how do they compete with major retailers?  Keeping up with big-box stores can be difficult, so they should not try to.  While offering deals is good, severe discounting on everyday items will not be enough to draw in more customers because the competition is still with the major retailers.  They have the purchasing power to discount bigger and better and with more pizzazz.  Big-box stores are also aggressive in their push for a one-stop shopping experience, so they will do what they can to make sure customers don’t leave without getting everything they need.  And hurried customers aren’t going to go out of their way to buy a good available at their regular store, even if they end up paying more.  The winning strategy doesn’t involve trying to outdo the giants.  Instead, small retailers should offer goods or services not found anywhere else.  Focus on what the competition isn’t doing rather than what they are already doing.  The best way to draw in customers and keep traffic flowing is to offer something unique that customers will only find there.  By combining a unique experience with unique product selections, smaller retailers will effectively grab more of the market share.

Offering a different selection of products is one way of driving in more traffic.  Big-box stores cap shelf space for most products these days.  This means that we see less variety—instead of seeing ten different kinds of widgets at the store, we see five.  This makes sense for retailers.  It is not economical to offer all 599 kinds of widgets produced in the world when most of those will not be sold.  The most sophisticated retailers even affix a dollar value to their shelf space as part of their internal analysis, almost treating it like real estate.  For me as a consumer, this means I have less to choose from.  A discrepancy in market demand is presented.  This is not just an issue for consumers, but it is also an opportunity for small shops.

Smaller retailers can take advantage of this by selling product lines that other stores do not offer.  For part of the market, this new offering serves to satisfy existing demand for the variety, which turns casual shoppers into repeat customers.  For a larger chunk of the market, this can create new demand which brings in new customers who would never think to shop there otherwise.  And market share expands just like that.

Every time I go shopping for personal supplies, I look for a specific type of personal care product that I have never seen anywhere: not drug stores nor major stores that I frequent.  As a woman, I use these personal care products every month, so they are kind of important to me.  I thought what I wanted never existed, until I found it one day while browsing (guess where?) Big Lots.  When I saw it there on the shelf for the first time, it was practically glowing—complete with a halo.  Needless to say, I will be returning to the store often.

On a recent trip to Honolulu, I was excited to visit the famed International Marketplace.  It was my first time visiting Hawaii and my mother’s stories about the open-air market and all its international goodies made it seem like a special place.  My parents visited the islands two decades ago and they frequented the International Marketplace daily.  It was their favorite place.  It was the best place to get fresh tropical fruits.  Different stands sold different kinds of ethnic foods—steaming and ready to eat.  There were goodies from around the world.  There may have been fresh flowers and leis.  It was truly international.  So I was disappointed when I went to the market on my visit.  It is not what it once was.  A small area comprising of a few eateries makes up the food court and it did not impress me.  There were no fruits.  There were no fresh leis.  The dozens of small booths strewn throughout the market all sold the same things: shell or nut leis, jewelry, fake flower leis, and accessories.  There was little variety even between all the mom-and-pop shops in the complex.  They all sold the same souvenirs, gift items, and accessories.  After ten minutes of browsing the marketplace, it all became very predictable.  I thought to myself, “how are any of these people making money if they all sell the same thing?”  My thought was later confirmed when I overheard a shopkeeper gossiping with another lady shopkeeper about a man selling X amount of shirts for X dollars.  I assumed that the man was another shopkeeper in the market that decided to offer a better deal on a whim.  “What are we going to do?  We are going to suffer if he sells at such low prices,” she complains in Chinese.  Well, milady, if you want to avoid this whole supply and demand problem, you must introduce some uniqueness into your inventory.  Don’t look at what everybody else is selling, look at what they are not selling.  The power of variety is incredible.  Bring in something different and new customers will come.  Guaranteed.

There is one product debuted at the 2013 Consumer Electronics Show that caught my eye.  The YotaPhone is the most innovative cell phone I have seen in years.  It is the perfect example of a company stepping outside of the box to create something innovative and revolutionary.  The cell phone market hasn’t been very exciting since the debut of touchscreen phones.  Besides making bigger and better screens, it seemed like innovation had come to a standstill in recent years.  The industry was unable to move beyond making cosmetic upgrades to the same phones.  And while new touchscreen models would enter the market, each upgrade really wasn’t anything different.  YotaPhone to the rescue.  The YotaPhone is an Android-based device that has a regular touchscreen on the front and an e-ink interface on the back.  Utilizing an e-ink surface allows users to display information long-term without consuming energy, which prevents a drain on the device’s battery.  The uses could be infinite: etickets for scanning, pictures set as “permanent wallpaper,” maps, social network updates, etc.  The e-ink display doesn’t have to be lit up like normal screens and this is a major advantage because it conserves the phone’s power.  It could be used to display almost anything and is essentially like taking an Etch-A-Sketch snapshot of any screen on the phone.  What is promising is that this new idea doesn’t feel like a gimmick.  It is helpful and useful.  Isn’t it nice someone finally brought something new to the table?  They developed a product that nobody had thought of yet.  And my guess is the YotaPhone will go far because of its uniqueness.  Watch out for copycats.

Offering a unique shopping experience is another way of bringing in more customers.  Unique experiences can mean different things.  It can be customer-service focused.  Or it can be selling something in different ways.  For example, a recent trend in movie theaters is the incorporation of bars and gourmet menu items into the movie-going experience.  Most of these establishments mirror performing arts venues in the use of reserved and assigned seating—catalyzing the extinction of long movie lines before a premiere.  Mini restaurants serving gourmet specialty items are available in different areas throughout the venue.  Tables at seats are common and food and drinks from the different menus may be served right to your chair.  Alcohol is allowed and socializing is encouraged (outside of the theater, of course).  There are various hangout spots located around the venue, including several bars.  This trend makes going to the movies an experience.  By pushing this trend, theaters like ArcLight Cinemas are drawing customers in to the movies after so many years of dwindling foot traffic at traditional movie theaters.  People will pay to have an experience. But sorry kids, some are 21 and over only. 

The strategy is not just limited to second-rate stores.  Even big-name giants like Barnes & Noble can apply the ArcLight method to jump-start traffic.  Hey, alcohol makes everything better, right?  Even the San Diego Symphony is recently breaking tradition to invite a more relaxed atmosphere into the halls by allowing guests to bring alcohol to their seats, which is still unheard of in most symphony halls today.  Whether or not alcohol is involved is not important.  What is important is that Barnes & Noble recognizes its need to evolve and adapt to a new market: one where internet Amazons dominate book sales and electronic books cannibalize the sales of traditional books.  Stop trying to compete with Amazon.  You can’t outdo Amazon, you can only do it differently.  Don’t try to outdo what they already do, do what they can’t.  And just like ArcLight, Barnes & Noble can make it an experience to be at their stores.  It should leverage its status as a brick-and-mortar store rather than treat it as a liability.  When something isn’t working, it is time to change.  Be creative and innovative.  Innovation begets survival.  Look at the Borders failure.  They failed to innovate and suffered a terrible ending.  I like Barnes & Noble.  In my carefree years, I frequented the store to pass the time.  I met friends there.  Friends met for group projects there.  It was my go-to place to check out new reads.  It was a gathering place for all of us.  Nowadays, I do not have time to go there as often.  But it is nice that it is always there (still).  I do not want the fun to end, so I am giving Barnes & Noble a makeover.  Here are some creative tips they can use to make a comeback and turn the store into more of a venue rather than keep it as some store that just sells books. 

1.  Connect with the Community and allow Neighbors to Connect with Each Other

BN needs to turn their stores into a place where people can meet and discuss.  Turn it into a gathering place.  People are social animals.  Provide an avenue where people can network and socialize (in the real world) and they will do it.  Build meeting spaces for groups to congregate.  Let the free WiFi run wild.   Expand seating options throughout the store and have a good combination of group tables and single tables for solo folks.  To this day, there is still never enough seating in my local BN store.  All the café tables are always taken.  People still love to meet and study there.  It has a different atmosphere than the library.  There is a hip and trendy vibe that patrons are attracted to and the sounds and smells of coffee being made make it much more stimulating than the library. 

Make the café the new focal point of the store.  Expand menu options.  Hire a chef to revamp the menu.  Create specialty foods unique to BN.  Expect the new and improved café to be responsible for the bulk of daily sales.  Encourage people to sit, eat, and laugh.  Let’s face it: people won’t be buying as many books from you anymore.  They will either find cheaper options online or skip to ebooks.  Or if they are poor like me, they will just wait for it to be available at the library for free.  It’s time to find new ways to earn revenue.

Organize community book clubs for different niches and have different activities specific to those groups.  Train your employees to lead these different activities and allow the role of the BN employee to evolve.  They will no longer just stack and ring up books—they will be ambassadors.  Take a cue from the tourism industry to see how tourist companies lead different events and bring guests together.  When I cruised in Hawaii with NCL, I was particularly impressed at how the crew wore multiple hats.  One job they had was predictably more mundane.  The other job was often more creative and usually involved entertaining guests—it could range anywhere from performing on stage to leading a game of bingo.  The lei classes were my favorite because the ship’s official ambassadors led those sessions and they would go into tidbits about their culture and the history of their people.  Not only did I learn a lot in those classes, I felt like I was part of something.  Foster that sense of community and give your team members a chance to take the lead.  It will be good for your customers and your people.

2. Be Events-Oriented

If BN wants any street cred for being a real venue, there have to be events.  And plenty of them.  Event calendars should be widely distributed in store and online.  Consider installing airport-style LED screens which broadcast the most important and interesting bulletins.  Organize more high-profile book signings.  Partner with small, local book shops for events if you can.  Revamp the music section and make sure previewing stations still work.  Build a small stage for frequent acoustic performances by up-and-coming musicians.  For more whimsical customers, give them a chance to take the stage on open-mic night for a poetry slam (think beret and bongo drums).  Awesome.

3. Reboot the Focus on Books by Switching to a New Angle

Showcase niche and underground books and authors instead of focusing on the big names to give customers something new to learn about.  Aggressively procure books from lesser known publishers to feature prominently in store displays.  Make BN a place where people can come in to discover new things.  Everybody knows about those vampire books.  Show customers books they don’t know about.  Post staff reviews next to obscure titles.  Put stickers on staff picks.  Remember, don’t focus on what the competition is doing; focus on what they aren’t doing.  Why do you think indie music thrives?  It’s unheard of.  It’s unique.  It’s anti-mainstream.  And people want new things.  Don’t be bland FM radio.  Be hip internet radio.

Expand BN publishing to create original works from new writers.  BN has the potential to create a strong cult following by coming out with great books.  I liken this to grocers like Trader Joe’s that have strengthened their store-brand goods.  Traders Joe’s has changed the image of store-brand items—and store brands are certainly not what they used to be.  They are no longer considered generic or second-rate, but are widely popular—even sought after.  Trader Joe’s just did a great job of developing their brand.  And it helps that the food is wholesome and good.  Come up with a great product and work that marketing magic.

4. Create New Ways to Earn Profit

With e-readers and tablets being so popular, BN should jump on the chance to cater to this growing market segment.  The Nook is fine, but it may or may not be the hot item in five to ten years.  The consumer electronics industry is fickle.  Don’t bet your money on it.  At BN, Books will always take the leading role no matter what happens.  E-book previewing and downloading stations should be strewn all over the store.  The machines should be automated with credit card slots and plugs for instant access to digital material.  It should be compatible with all kinds of readers and tablets.

Expect online retailers like Amazon to take much of your business.  Expect digital books to cannibalize the sales of real books.  And make a use of all the books you are not selling by moving them into circulation mode.  Start a membership program where an affordable monthly fee gives cardholders unlimited borrowing access to these “library books.”  It would give the company new revenue and give customers a way to try different titles (new and old) they never would buy.

Why Luxury Brands Should Bring Manufacturing Home

I think of myself as a smart shopper.  And if I am paying a certain price point for a certain brand, I expect the product to be of a certain caliber in quality.  However, you don’t always get what you pay for. More often than not, I find myself being disappointed by so-called name brands—especially in recent years.  Obviously, I am unwilling to pay for products that fail to meet my expectations—not to mention splurge on brand-name products that have poor quality.  I am not one to blindly throw money on a product based solely on the brand without discerning its quality.  I end up passing on many goods for this reason.  Money is a limited resource.  If I am going to spend money on something, it better work for me.  And if a high-end brand sells products that are not well-made, I lose trust in that brand.  Nobody wants to spend good money on something that will fall apart.

I speculate there are several reasons that contribute to the decline in quality of goods we see on store shelves.  First, the recession has pressured companies to maintain profitability, forcing them to find cheaper options in the supply chain to increase profit margins.  Second, the widespread trend of international outsourcing that influences manufacturing today can often compromise the integrity of products because overseas production is hard to control.  Finally, greed has driven companies to focus more on profit than the products that represent their name.  The combination of these issues under all the wrong circumstances is enough to hurt a company’s reputation, and, ultimately, its bottom line.

If you were a company, I ask you this: How are you going to earn a profit when your product isn’t selling?

It is understandable that every company would start closely watching its bottom line during an economic downturn.  The recession has pressured everyone, individuals and corporations, to stay in the black.  But the state of the economy cannot be controlled by anyone.  While a company cannot control the economy, it can control how it produces.  It can control how it evaluates success.  A company can choose to shift towards being centered on value instead of plain profit.  It is this mentality that powers some of the most successful organizations to push forward robustly into the future.  An economic downturn is a crucial period for management to make strategic decisions that will determine the long-term success or failure of the company.  Recessions test the soundness of a company’s methods and it is those that create value that ultimately end up winning.  A company that is narrowly focused on profits will only end up short-circuiting its success.

I was recently shopping for new luggage at a department store.  I passed up a $100 Nautica rolling duffel for a state-of-the-art $150 rolling duffel by High Sierra.  The Nautica duffel was not on par with the High Sierra duffel.  Not even close.  Its construction was mediocre.  The materials used in its construction were laughable. It was worth $30, not $100.  And, mind you, $100 was the sale price.  If, on any given week, an average of 100 customers was in the market for new luggage and your hundred-dollar-product gets passed up for something better, this adds up to $520,000 in lost revenues a year.  And I am just speaking hypothetically.  Even if manufacturers earn just a portion of retail sales, the numbers are still significant when sales are pooled across the nation.  As a luxury brand, why would you spend the time and resource to make a subpar product that cannot effectively compete?  You are better off not making it at all.

Even more serious than lost revenue is the diminished reputation of a company’s brand, which is hard to build.  And Liz Claiborne knows how important brand perception is to a company’s survival.  The Liz Claiborne failure stemmed from more than bad business decisions.  Over the years, the label fell out of favor with consumers and eventually became irrelevant.  The last era when the brand’s name had any strength was in the ‘90s.  I know I haven’t thought of Liz Claiborne clothing since then, so I was not surprised to hear about the store closures.  When you are the maker of luxury items, brand is everything.  If people stop caring for your brand, you stop earning a profit.  Any damage to a company’s brand and reputation is hard to reconcile.  Who can forget the backlash that the Ralph Lauren label received prior to the Olympics when the public learned that its uniforms for Team USA weren’t even made in the U.S.?

I have never associated High Sierra with quality or luxury. But after my first High Sierra purchase, my perception has been fully altered.  On the other hand, I have always thought highly of the Nautica name.  But the company’s lack of attention to quality in recent times has made me lose faith in the brand.  So move over, Nautica, High Sierra is laughing all the way to the bank.  High Sierra may or may not manufacture at home, but it is irrelevant to this part of the discussion.  High Sierra beat Nautica.  Why?  Better attention to detail?  Better suppliers?  Perhaps Nautica just got lazy.  The guesses could be infinite.  Maybe Nautica hasn’t had the same luck with suppliers that High Sierra has.  The point is that international outsourcing is difficult and the hit-and-miss nature of it might even be more of a burden.

So how does a company stay relevant? By selling quality goods that maintain and even elevate the reputation of the company name and by keeping current and prospective customers engaged with the brand.  A company can create demand for its products by focusing on quality.  Quality is something that name brands cannot afford to neglect.

The best way to maintain the highest standards of quality and keep products up to those standards is by bringing manufacturing home.  Higher profit margins and the cost savings of outsourcing are dwarfed by lost revenues from products that don’t sell.  When products don’t sell, a company not only misses out on sales dollars, it loses its investment in creating the products (manufacturing and R&D).  While homesouring may not make economic sense for value brands, it would be the solution for high-end brands—which have always charged a high markup.  It eliminates risks present in running global supply chains and rids companies of headaches associated with import and export restrictions.  Logistics would be much simplified if limitations, like potential tariffs and quotas are nonexistent.  Not to mention the shipping costs.  An added benefit is greater flexibility because a company does not have to make production decisions about eight months in advance for overseas manufacturing.  A company can better adjust production decisions when the loop—from conception to production—is short.  There is more room for adaptability.  With the time and money saved from removing these issues, a company can allocate more resources to developing better products that customers will actually buy.  The brand would effectively be operating leaner, meaner, and greener.  It can only help the bottom line.

There are several reasons why manufacturing at home can increase quality.  First, the company will operate under laws and a culture that are already familiar.  Second, there is a greater ease of quality control when the production facility is a neighbor.  Third, the integrity of production becomes more in line with company goals when it is directly controlled at home.

When a company operates under the same laws across the board, the whole process becomes simplified from start to finish.  The company can use the time, resources, and money saved for more important matters.  Laws are a piece of cake compared to culture.  However time-consuming, laws can be read about and circumnavigated.  It is culture that presents the biggest hurdle for companies in reaching their goals and many don’t realize this when they jump onto the outsourcing bandwagon.  The quality of products is threatened when companies produce in countries where perceptions of quality and integrity differ.  When a company is trying to reach the highest standards of perfection and perfectionism is a concept that is just not present in a certain culture, the company’s goals will never be met.  And culture cannot be easily influenced; it certainly will not change overnight.  I have heard too many stories about these kinds of cultural conflicts becoming major issues for businesses; the costs start to outweigh the benefits.  When a firm operates in a culture that it knows, it is easier to get employees to commit to its standards of quality because everyone is on the same page.  Expectations become standardized, unlike in international supply chains, where expectations can be fragmented.

Quality control becomes easier when a company can be on the ground looking at the final product and identifying any potential issues in production.  It becomes easier to get everyone on the same level of thinking by immediately communicating company ideals.  It also becomes easier to identify when quality has strayed from ideals.  When the production facility is oceans away, it is much harder and a company ends up putting a lot of blind faith into its supplier.  When a supplier doesn’t meet expectations, it takes longer to recognize the issue and get it fixed.  A problem like this probably plagues companies more often than they would like.  This could be why companies often end up accepting subpar goods from suppliers because the costs of going through the whole process again are not worth the trouble.  For a luxury company that needs to maintain high product quality, this inconvenience can be eliminated by sourcing to a supplier that is right at home.

Bringing manufacturing home also affords companies more direct control over the production process because closer relationships can be formed with suppliers.  International supply chains inherently give companies only indirect control because of distance.  A company cannot see, hear, or feel what is happening on the grounds as often as it should and problems end up falling through the cracks.  When production is brought closer to headquarters, the process becomes much smoother and the feedback loop from quality control becomes shorter.  A company can forge closer partnerships with suppliers at home and more quickly identify problems with production.  This allows for a faster solution to issues.  Any problems can be identified and fixed in a shorter timeframe and this drastically increases the quality of products.  Better yet, with a closer partnership, companies can have goods made right the first time around—and eliminate the need for rework.  It is much easier to get local suppliers to comply with the company’s quality goals than suppliers on another continent.

It is inevitable costs will increase by homesourcing, but it can be mitigated by setting the right price point and creating demand.  Any increases in costs can be offset in part by charging a higher markup—luxury brands can do this.  The other portion of costs will be offset by increased sales.  When a company makes a great product, more people will buy it.  More people will desire it.

Because international supply chains aren’t one-size-fits-all they won’t work for all business models.  The complexity of international supply chains can impede quality of goods produced.  Moreover, differences in customs and perceptions present in foreign manufacturers compounds the problem.  Luxury brands must shy away from global sourcing to preserve the integrity of their products.  Brands that command a higher price point can afford to bring manufacturing home, where they can maintain higher quality by having more control.  When brand-names start to shift their focus to creating value by a strong commitment to quality, they will reap numerous benefits and it will trickle down to the bottom line.  It will strengthen the brand and help energize a company’s reputation.  Customers will know a good thing when they see it.  I know I will.  And any increase in costs will be offset by an increase in profits.  So march on name brands.  I look forward to seeing more quality goods worth buying.