Archive for June, 2015

Michael Kors is driving Macy’s business into the ground

Source: http://www.businessinsider.com/michael-kors-cited-for-macys-downgrade-2015-6

Macy's

Macy’s is in trouble. 

The retailer’s same-store sales growth has been weakening over the last several years, and Deutsche Bank analysts expect things to only get worse for the department store chain.

Deutsche Bank analyst Paul Trussell on Monday downgraded Macy’s from “buy” to “sell,” saying he has “low confidence that the company can bust out of its same-stores sales rut.”

Sales declines at Michael Kors, one of Macy’s key vendors, were cited as a primary reason for the downgrade.

“We are especially concerned as we see no obvious juggernaut to replace the lost dollars, and we note ongoing challenges at other key vendors as well,” Trussell wrote, specifically naming Coach, Guess, and Ralph Lauren, as additional venders that could cause problems. 

Michael Kors’ same-store sales declined 6.7% in North America during its most recent quarter. The company’s shares are down 43% since the beginning of the year and nearly 52% in the last 12 months.

Michael KorsMichael Kors’ downfall is the result of its widespread popularity. The name became too ubiquitous to remain cool, analysts say. 

But Michael Kors isn’t Macy’s only problem.

Trussell also cited concerns about declining revenue from tourists, as well as a major shift in discretionary spending from products (like clothing) to experiences and technology. 

Deutsche Bank - consumer spending

Macy’s is also suffering from a shift toward direct-to-consumer business models, in which brands use their own websites to sell directly to customers without going through a department! store l ike Macy’s.

At a recent conference, Bloomingdale’s Chairman and CEO Tony Spring said this changing landscape keeps him up at night.

“Our vendors are our partners and suppliers. But many have also become our competitors,” Spring said at the Retail Marketing Society’s “Reinventing the Store” conference in June, according to Trussell.

SEE ALSO: Wal-Mart has a massive plan that should terrify Whole Foods, Kroger, and Trader Joe’s

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Monday, June 29th, 2015 news No Comments

FTC starts cracking down on crowdfunding fraud

Jun 11, 2015

Scam!

Hang around the crowdfunding scene long enough and you'll hear tales of campaigns that were too good to be true, or creators who simply took the money and ran. It's scary stuff, we know — but you'll be glad to hear that the Federal Trade Commission now has your back when the host sites' safeguards aren't enough. The government body has taken its first action against a crowdfunding fraudster, reaching a settlement with Erik Chevalier after he cancelled a Kickstarter board game project and reneged on promised refunds. The culprit won't pay restitution, unfortunately (he's allegedly unable to pay), but he's barred from any deceptive crowdfunding practices and obligated to honor whatever refund policies he sets. A slap on the wrist, then? Maybe, but it's still a shot across the bow of scammers who are only interested in padding their bank accounts.

[Image credit: Getty Images]

Friday, June 12th, 2015 news No Comments

Will Music Streaming Ever Become Profitable?

The iTunes Store was a simple premise: Digital songs cost $0.99 each, and the record companies would get $0.70 from each song sold. You could also buy albums, and the record companies would get 70% of that, too. And thus, Apple managed to dethrone Sony, the biggest name in music players at the time with the Walkman, by offering a tight turnkey solution — a complete music ecosystem — in the iTunes Store and the iPod.

chart of the day spotify pandora comparison

Business Insider/Statista

About a decade later, though, music is just one application on our phones and tablets — andpeople aren’t nearly as willing to pay $0.99 for songs. That involves taking out one’s wallet on too many occasions. And so music streaming services like Pandora and Spotify have proliferated: Apps that emphasize music discovery in a radio-like experience with free and paid tiers, but don’t take up any space on your devices, and offer a flat monthly fee, if any fee at all.​

 

Saturday, June 6th, 2015 news No Comments

Does Programmatic Work for Branding?

Source: http://www.emarketer.com/Article.aspx?R=1012570

eMarketer estimates that US programmatic digital display ad spending will leap 48.9% this year to hit $14.88 billion, or 55.0% of total digital display ad spend. While the majority of those dollars will likely focus on direct-response efforts, April 2015 research by Econsultancy in association with Quantcast finds that programmatic branding adoption is relatively high, and spending will rise in the coming years.

Benefits of Running Programmatic Brand Advertising Campaigns According to UK and US Senior Marketers, April 2015 (% of respondents)

Among UK and US senior marketers polled, 62% said their companies ran programmatic advertising campaigns for branding objectives. What was holding back nearly four in 10 non-users from buying in, or existing users from investing further? Data privacy concerns and difficulty proving return on investment were the two most common issues, each cited by 23% of respondents. Lack of quality data (18%), a complex marketplace (17%) and lack of transparency (16%) rounded out the top five.

When asked about the benefits of using programmatic for branding, respondents were most likely to cite increased efficiency, reduced overall advertising costs and the ability to optimize and target the right audience in real time as “major” benefits. Among all benefits included, at least 45% of respondents rated them highly beneficial.

Friday, June 5th, 2015 news No Comments

Media Consumption Trends, 2010-2017

Source: http://www.marketingcharts.com/traditional/media-consumption-trends-2010-2017-55089

ZenithOptimedia-Global-Media-Consumption-Trends-Jun2015

Source: ZenithOptimedia

Notes: Global internet consumption grew by almost 84% between 2010 and 2014, driving overall media consumption growth of 5.1%, to 485 minutes per day, according to estimates released by ZenithOptimedia. Exposure to outdoor advertising was the only traditional medium to show an increase during that 5-year period, of 1.2%, with time spent with TV (-6%), print newspapers (-25.6%) and print magazines (-19%) all declining. Nevertheless, TV still dominated global media consumption last year at an average of 183.9 minutes per day, 68% higher than internet consumption (109.5 minutes/day).

TV is expected to still account for more than one-third (34.7%) of global media consumption by 2017, though time spent watching broadcast programs on TV sets is expected to decline by 1.7% per year. By contrast, time spent accessing the internet is predicted to grow by 9.4% per year between 2014 and 2017.

Wednesday, June 3rd, 2015 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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