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Zooming in…

At the start of the year zoom calls were relatively uncommon. Now though, with the global pandemic, they are a common feature of business life for most of us.

Whilst some people will creatively claim that their video isn’t working so that they can scroll through their phone whilst half listening to the meeting, most people will have their video on so that the rest of the people in the meeting can see them.

This has had a bit of an impact on fashion. After all, if the lower half of you isn’t being seen why worry too much about what shoes or trousers/skirt you’re wearing.

The London and Milan fashion weeks which took place last month had a definite “waist-up” focus.

For example, the leading fashion house Prada had its logo near the collars of its top. Prada reportedly said that this was not inspired by zoom but rather by the “contemporary human relationship with technology”.

As anyone who has met me will confirm, I’m clearly not an expert on fashion but the cynic in me feels that some people who spend a lot of money on designer clothes will want other people to know what brand of clothes they are wearing.

What better way of highlighting your expensive clothes on a zoom call than to have the logo just below the collar. A clever move by Prada

Other changes which have been reported in women’s fashion recently include an increase in the popularity of jewellery whilst sales of handbags and shoes have fallen.

In summary therefore, it’s important how you look on a zoom call but only if it’s visible…

Out of this world advertising…

Getting professional photos taken for advertising can be expensive but this particular photo shoot for Estee Lauder is expensive.

Very expensive in fact.

4 hours of photography will cost USD 128,000.

That certainly is expensive for 4 hours of work but to be fair it’s a very unusual photoshoot as it will take place inside the International Space Station and the photographers will be the astronauts.

In what will be a first for advertising, Nasa is charging Estee Lauder USD128,000 for Nasa astronauts to take photos and to film some shots of Estee Lauder’s Advanced Night Repair serum face cream in various locations around the space station.

The total fee includes the astronauts’ time at USD17,500 per hour (which is a pretty impressive charge out rate!).

A Nasa spokeswoman said that Estée Lauder was “paying for the astronauts to be the photographer, not to use the product, not to put the product on themselves, not even to open the product”.

Estee Lauder obviously think that the advertising will pay off but some people will no doubt argue that the cost of such photoshoots ultimately has to be recovered by the company and the way they do that is in the price of their products.

The counter argument to this though is that it’s more than just being about the photos in the adverts. The general publicity that Estee Lauder will get from being the first cosmetics business to have their products in space will also be valuable for the company.

The most valuable car company is…

Which of the following two motor manufacturers would you say is the most valuable?

The first one produced 2.4 million cars whilst the second one produced 103,000.

This isn’t a trick question but an illustration of how market valuation is very much based on expectations of future rather than historical performance.

The car manufacturer who produced 2.4 million cars was Toyota and up until yesterday was the highest valued motor manufacturer in the world.

The company that only produced 103,000 cars was Tesla and yesterday it’s shares increased to above $1,000 for the first time. This valued the company at £207 billion which was over $6 billion more than Toyota was valued by its investors.

So, despite only producing approximately 4% of Toyota’s production, Tesla is currently the most valuable motoring manufacturer in the world.

There are views that the market sees Toyota as a lumbering giant who is being slow to get into full electric vehicles whilst Tesla is leading the way in terms of the future of driving and electric vehicles in particular.

Tesla certainly seems to have turned the corner. After years of making losses, Tesla has reported 3 straight quarters of profits and is now worth more than Ford, General Motors, Honda and Fiat Chrysler combined.

As well as being pretty innovative in terms of their car designs, Tesla have come up with an impressive idea for their car names.

Earlier this year, Tesla’s Senior Director of Artificial Intelligence Andrej Karpathy gave a presentation on the use of artificial intelligence for full self driving.

During the presentation it became clear that the names of the cars spelt out a nice marketing message.

Their current car models are the Models S, 3, X and Y which near enough spells out SEXY (they couldn’t have the Model E as Ford had already trademarked that so Tesla called it the Model 3 but stylised the 3 so that it looked like E).

They also have 4 vehicles in the pipeline.

Namely, the Cybertruck, the All-Terrain Vehicle, the Roadster and the Semi.

The first letters from the names of the 8 Tesla vehicles spell out SEXY CARS…

Flying high with creativity.

Sometimes a little bit of creative thinking can go a long way. This bit of creativity though went a very long way indeed.

Creativity can add value to all types of businesses and this particular project involved technology and one of the largest sea birds.

There are 22 species of the albatross bird. With a wingspan of up to 3.5 metres, the wandering albatross species has the largest wingspan of any living flying bird. Importantly for this project though, they are also capable of flying long distances out to sea.

Illegal fishing by trawlers can seriously impact on fish levels. Organisations tasked with protecting fish levels can find it almost impossible to prevent this illegal fishing. In simple terms, the ocean is very large and the boats are pretty small so keeping track of them and what they are fishing for is very difficult.

In an innovative project led by the French National Centre for Scientific Research, 169 Albatrosses have been equipped with sensors. If the birds are in the vicinity of a boat, these sensors are able to tell whether the boat’s Automatic Identification Systems (AIS) are switched off.

Having the AIS systems switched off on a boat is common when the boat is fishing illegally.

The beauty of this project is that the albatrosses can cover huge areas and when the sensors identify boats with their AIS switched off, the enforcement boats can head to that location to investigate further.

The initiative is currently being trialled off the coast of New Zealand and over the last 6 months the birds have located 353 boats, 37% of which were not emitting the AIS signal.

Time up for Swiss watches?

Switzerland has a reputation for being the home of some of the most prestigious watch manufacturers.

Omega, Tag Heuer and Breitling are just three if the many famous brands of Swiss watches that produce extremely high-quality timepieces.

But things are changing though and there’s a modern-day challenger to their dominance.

That modern-day challenger is Apple.

Last year Apple sold more watched than the entire Swiss watch industry.

A recent report by Strategy Analytics estimated that Apple sold 30.7 million smartwatches last year (an increase of 36% on the 2018 figure).

Estimates for the entire Swiss watch industry showed sales of 21.1 million units last year (a 13% fall on the 2018 figures).

This is a difficult time for the Swiss watch industry as they face a number of challenges.

The younger generation especially are keen on the tech side of watches and these are very much in fashion.

Although some Swiss watch brands such as Swatch and Tissot are launching their own smart watches, their competencies and skills are very much based around the mechanical engineering of watches compared to software engineering which is needed for smart watches.

Another major challenge is their distribution channels and where they are sold.

Swiss watches are typically sold in jewellery shops whereas smart watches such as the Apple watch are sold in phone shops and Apple stores.

Certainly a challenging time for the Swiss watch industry.

Will these Swiss watch brands survive?

Only time will tell…

How much for a speech?

The salary of Boris Johnson, the current UK prime minister is just over £150,000. I’m sure that most Prime Minsters don’t do the job for the money but there can be some pretty significant financial benefits when they move on from being the prime minister.

As the PM, Mr Johnson can’t do any other work whilst in his job but other MPs can. Theresa May was Boris Johnson’s predecessor but now is back to being a standard MP.

According to the government’s register of interests though she’s doing quite nicely on the financial side of things.

PwC for example paid Mrs May in January to do a speech. The total time involved including preparation and travel was 12 hours.

So, how much do you think PwC paid Mrs May for this?

Go on, have a guess.

She received approximately £96,000 for the speech.

Now, that’s not bad for 12 hours work.

As well as receiving £96,000 from PwC she also received money from other organisations for speeches delivered during the first quarter of 2020. These were:

Approximately £115,000 from Dubai Women Establishment for a speech in February (19 hours, including preparation and travel).

Approximately £115,000 from the Structured Finance Association for a speech in February (25 hours, including preparation and travel).

Approximately £115,000 from Brown University, Rhode Island, USA. (14 hours, including preparation and travel).

Approximately £115,000 from Trinity University, Texas, USA. (14 hours, including preparation and travel).

Over £500,000 for 5 speeches in 3 months.

Not bad work if you can get it.

According to a statement by Mrs May in the Register of Members’ Financial Interests, these payments “are made to the Office of Theresa May Limited and used to pay employees, maintain my ongoing involvement in public life and support my charitable work.”

Would the real Hugo Boss please stand up?

Joe Lycett is a British comedian. In fact, I should say that Joe Lycett used to be a comedian because although the person still exists his name doesn’t.

This sounds all very confusing and also, what has it got to do with the leading fashion house, Hugo Boss?

Like most large companies around the world, Hugo Boss defends it’s name when it feels other businesses are using similar names which could cause confusion in the eyes of the consumer.

If for example you decided to set up a clothing brand called “Hugo Bass” I’m pretty sure Hugo Boss would take legal action against you.

Hugo Boss was involved in a high-profile case involving a brewery in Wales called Boss Brewing and in particular two of the beers that it made called Boss Boss and Boss Black.

Hugo Boss took legal action against Boss Brewery but it was held that there was no need for the Brewery to change it’s name.

That was all very well for the Brewery but it cost them a significant amount of money in legal fees to defend the issue in court and for a small business that was challenging.

Joe Lycett wasn’t happy about this and decided to legally change his name as a protest.

His new name is… yes, you guessed it… Hugo Boss.

He tweeted a picture of the official confirmation of his name change and wrote

“So @HUGOBOSS (who turnover approx $2.7 billion a year) have sent cease & desist letters to a number of small businesses & charities who use the word ‘BOSS’ or similar, including a small brewery in Swansea costing them thousands in legal fees and rebranding.

It’s clear that @HUGOBOSS HATES people using their name.

Unfortunately for them this week I legally changed my name by deed poll and I am now officially known as Hugo Boss.

All future statements from me are not from Joe Lycett but from Hugo Boss. Enjoy.”

In what could have been a bit of bad PR for Hugo Boss (the company), they responded well to the new Hugo Boss (formerly Joe Lycett).

They released a statement saying: “We welcome the comedian formerly known as Joe Lycett as a member of the HUGO BOSS family.

As he will know, as a ‘well-known’ trademark (as opposed to a ‘regular’ trademark) HUGO BOSS enjoys increased protection not only against trademarks for similar goods, but also for dissimilar goods across all product categories for our brands and trademarks BOSS and BOSS Black and their associated visual appearance.

Following the application by Boss Brewing to register a trademark similar to our ‘well-known’ trademark, we approached them to prevent potential misunderstanding regarding the brands BOSS and BOSS Black, which were being used to market beer and items of clothing.

Both parties worked constructively to find a solution, which allows Boss Brewing the continued use of its name and all of its products, other than two beers (BOSS BLACK and BOSS BOSS) where a slight change of the name was agreed upon.

As an open-minded company we would like to clarify that we do not oppose the free use of language in any way and we accept the generic term ‘boss’ and its various and frequent uses in different languages.”

Fancy working for the Queen?

I’m not sure where you work or what your office is like but my guess is that it’s not as historic as where you would work if you were successful in applying for this job.

The Royal Family has advertised for a new Management Accountant to look after the “Privy Purse” (the British sovereign’s private income). The job is based at Buckingham Palace.

Candidates for the job need to be qualified and should have “outstanding problem-solving skills”. They will need to produce management information and financial accounts and the advert promises that “no two days will be the same and the deadlines we work to will stretch you. Yet in all that you do, you’ll rise to the challenge and deliver faultless accuracy and a first-class service to this unique organisation”.

It’s not just a solid knowledge of figures that they require as the advert goes on to say that candidates need to demonstrate that they are “as good with people as you are with numbers, which is crucial given the customer focussed nature of this role”.

Now let’s get down to the exciting part and how much are they prepared to pay for this position?

According to leading recruiter Robert Half, the average salary for a Management Accountant in London is currently £58,100.

The salary that is being offered for the Royal job is £40,000.

Cashless or cash?

Over 1 billion consumers are forecast to use cashless payment methods in 2020. Contactless cards and smartphone payments can make payments very easy for an individual and for the retailer it avoids security issues dealing with cash.

A number of shops are moving to “cashless” shops where all the payments have to be made by contactless cards or smartphone apps such as Apple Pay.

Not everyone is happy though as to make a cashless payment you need one important thing.

Namely, a bank account.

Globally, 1.7 billion adults do not have a bank account and whilst you may be thinking that these people without bank accounts are in the emerging markets around the world, that’s not always the case.

New York City, is one of the most famous cities in the world.

According to a recent report by the New York City Department of Consumer and Worker Protection (DCWP), 354,100 households (11.2 percent) have no bank account (unbanked) and another 689,000 households (21.8 percent) have a bank account but use alternative financial products for some banking needs (underbanked).

In other words, 33% of the New York City households are either unbanked or underbanked.

That’s a pretty big proportion and as a result, the New York City Council has voted to require shops and restaurants to accept cash for payments of USD 20 or less.

The law is expected to be in place by the end of 2020.

New York won’t be the first city in the States to ban cashless stores as last year Philadelphia and San Francisco banned them.

Whilst several retail organisations have appeared to be championing cashless shops it’s looking like it won’t be possible in a number of locations around the world.

These organisations may be initially frustrated at being prevented from being cashless but in reality, this isn’t necessarily a bad thing. As well as the ethical debate about refusing to accept people who can only pay in cash, if they did go cashless they would be missing out on a significant part of the population who want to spend their cash, albeit “cash” and not “cashless cash”.

Rolling in it…

Here’s a question for you – what do you think the average age is of somebody who buys a new Rolls-Royce?

Perhaps surprisingly the average age has dropped significantly over the last decade.

The company has just reported their sales for 2019. Despite the majority of the global car market facing falling sales, Rolls-Royce have bucked the trend.

They have reported their best ever sales with a 25% increase in cars sold compared to the previous year.

In terms of Michael Porter’s generic strategy model, their strategy is a clear differentiation approach. In the words of chief executive Torsten Muller-Otvos, the brand is “rare and exclusive”.

They have also made a concerted effort to appeal to younger drivers (it’s fair to say that these are younger extremely wealthy drivers with their bestselling model the Cullinan starting at £264,000).

The Cullinan was launched in 2018 and it was a radical change for the company. Rolls-Royce had a history of luxury saloon models and the Cullinan was their first SUV 4×4 off-road car.

Mr Muller-Otvos said the increase in sales was in part down to the introduction of “black badge” versions of its cars, where the car was black inside and out.

He was quoted as saying

“This is a cooler, darker, more menacing, edgy proposition, [aimed] especially towards younger clients.”

“Many smart kids around the world building platforms or whatever making a fortune early in their life are coming to us to start investing in a Rolls-Royce”

In total Rolls-Royce sold 5,125 new cars in 2019 of which the Cullinan amounted to 40% (nearly 2,000 cars).

Oh, and in case you are interested the average age of a Rolls-Royce buyer is now 43.