twitter business model

A Clothing Company Discourages Customers From Buying Its Stuff



Patagonia, an outdoor clothing company, famously tells customers to think twice before buying. 

On Black Friday last year, the brand had an “anti-black Friday” event and encouraged customers to get their items repaired instead. Patagonia also famously ran an ad with one of its garments that said “don’t buy this jacket.” 

This strategy is paying off big-time, reports Sapna Maheshwari at Buzzfeed

The “socially and environmentally conscious practices” have helped profits triple since 2008, Maheshwari writes

Patagonia’s business model, which rejects overt consumerism, bucks the trend of fast fashion retailers like Forever 21 and H&M. patagonia don't buy this jacket

“We design and sell things made to last and be useful. But we ask our customers not to buy from us what you don’t need or can’t really use. Everything we make–everything anyone makes–costs the planet more than it gives back,” the company told Fast Company in 2012

This philosophy is great for the brand’s image.

“Patagonia’s audience trusts the brand, admires its values, and aspires to live by the same principles,” Jeff Rosenblum writes in Fast Company. “Very few brands can compete on quality and price alone.”

Consumers are increasingly drawn to quality over quantity, the Wall Street Journal reported last week

“A generation of consumers has grown up wearing what is often referred to as ‘fast fashion’ — trendy, inexpensive versions of runway looks that shoppers wear for one season, or one occasion, and often toss,” according to WSJ. “Now, many of these shoppers are graduating to a philosophy of quality not quantity.”

While Americans are spending more on clothes, the quantity has gone down since its peak in 2005, WSJ reporter Elizabeth Holmes writes, citing the American Apparel and Footwear Association.  

SEE ALSO: McDonald’s Is Quietly Copying Chipotle’s Strategy

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Monday, September 8th, 2014 news No Comments

drag2share: Most People On Twitter Don’t Actually Tweet (TWTR)


So this user thing is basically the No.1 problem that Costolo is working to solve right now.

Here’s how bad that problem is, according to Twopcharts, a company that tracks Twitter metrics:

  • There are 982 million registered accounts.
  • But there are only 241 million monthly active users, the most meaningful metric for users.
  • That suggests 741 accounts have been abandoned.
  • Only 83.4 million tweet more than once per day.
  • At least 419 million users’ most recent tweet was more than a month ago.

The slightly scary takeaway here is that after you put that altogether, you’re left with the conclusion that most people who have opened accounts on Twitter don’t use Twitter.

They don’t even tweet.

Listening, of course, is a thing. A lot of people use Twitter as a news feed and simply watch the tweets go by without engaging. But that kind of passive behavior is no good when you’re a company whose business model is dependent on user engagement.

Twitter is experimenting with a bunch of new stuff to make it easier for new users to get started, and to make it easier to use Twitter for everyone else. Even experienced users often find the user architecture at Twitter confusing (what’s the difference between “mentions” and “notifications”)? So Twitter has experimented with getting rid of its clunky nomenclature, such as “retweet,” and the @ symbol.

Here’s Twopcharts’ latest set of stats:

twopcharts twitter users

drag2share – drag and drop RSS news items on your email contacts to share (click SEE DEMO)

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Friday, April 11th, 2014 news No Comments

no, twitter will NOT be the next google

Every year around SXSW, there’s a surge in interest about twitter. This time around people have even gone as far as to proclaim twitter to be “the next google” or “the future of search” etc.  Bullocks!

Here’s why:

1) distant from other social networks – While we are seeing a massive surge in interest and usage of twitter, it is still a long way off from the number of users of other social networks; it will take a long time to get to critical mass; and this is a prerequisite for twitter to assail the established habit of the majority of consumers to “google it.” — Google’s already a verb.

2) no business model – It remains to be seen whether Twitter can come up with a business model to survive for the long haul. Ads with search are proven. Ads on social networks are not. And given the 140-character limit, there’s hardly any space to add ads.

3) lead adopters’ perspective is skewed – Twitter is still mostly lead adopters and techies so far; so the perspectives on its potential may be skewed too positively. As more mainstream users start to use it, we’re likely to see more tweets about nose picking, waking up, making coffee, being bored, etc….  This will quickly make the collective mass of content far less specialized and useful (as it is now).

4) too few friends to matter – Most people have too few friends. Not everyone is a Scott Monty ( @scottmonty ) with nearly 15,000 followers. So while a user’s own circle of friends would be useful for real-time searches like “what restaurant should I go to right now?” the circle is too small to know everything about everything they want to search on. And even if you take it out to a few concentric circles from the original user who asked, that depends on people retweeting your question to their followers and ultimately someone notifying you when the network has arrived at an answer — not likely to happen.

5) topics only interesting to small circle of followers – Most topics tweeted are interesting to only a very small circle of followers, most likely not even to all the followers of a particular person. A great way to see this phenomenon is with twitt(url)y. It measures twitter intensity of a particular story and lists the most tweeted and retweeted stories.  Out of the millions of users and billions of tweets, the top most tweeted stories range in the 100 – 500 tweet range and recently these included March 18 – Apple’s iPhone OS 3.0 preview event; #skittles; and the shutdown of Denver’s Rocky Mountain News.  Most other tweets are simply not important enough to enough people for them to retweet.

6) single purpose apps or social networks go away when other sites come along with more functionality or when big players simply add their functionality to their suite of services.



Am I missing something here, people?  Agree with me or tell me I’m stupid @acfou 🙂

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Wednesday, March 18th, 2009 digital, social networks 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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