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According to Juipter Research online sales are expected to jump 20% from this time last year. Very exciting! A big part of this has to do with e-retailers getting with the program and realizing that shipping rates are traditionally one of the biggest reasons people don't shop online.

So what do you see now...Free Shipping everywhere! It's most definitely the hottest promotion around. The bad news is that with consumers being emotionally trained to expect a free shipment it's lost it's novel appeal. Therefore, unless you have some impossible to find product you'll have to humble yourself and do a free shipping promo if you want to stay competitive.

Since you'll basically have to do this for your customers....I'll share a few tips you may want to use to make it easier on your profit margin.....

Qualify your shipping- Don't get too tricky with this one. Set a feasible minimum purchase to prevent losing money on small shipments.


Try Easy to Digest Discounts--A dollar doesn't sound like much but if you ship a lot of product it could make up for some of your costs. Some customers are just looking for an easy fee instead of a sliding scale where it's as if the more they buy the more they're punished with higher shipping charges. Keep it sweet, simple and flat. $1 shipping, $3 shipping or even $5 works...


Shop Around for Shipping Options--Don't just assume your current shipping provider has the best rates...rates change and depending on the volume and weight of the product you ship you could be up for some great discounts. So shop around....

Online sales are on the move...don't forget to also research what your competitors are doing so you can be sure to get your piece of the action...

Brand Power

I am reading a branding book right now that I just love! It's called "Killer Brands" by Frank Lane and it illustrates my thoughts on naming and differntiating your brand in such an easy way I'd like to share a portion of it with you.



Imagine I am setting you up on a date. I tell you about six guys. In essence six brand choices.

Jack...Bob...Mike...Rudy...Jim...and Rob

Which name do you remember most readily?



Well I remember "Rudy," the quickest....and according to the author so do most people. Rudy as a name is distinctly different than the typical Jack..Rob's and Bob's. Currently thinking of a name for your new company or brand....make a point to use your name--your most visible brand property to help you stand out from the crowd.

The second part of his example deals with the power of focus. A lot of us are very scared to hang on to one attribute about our brand. What if we're all about color...and also all about fit....and also use a one of a kind cotton from the south of France. How can we choose one of these attributes to play up more than the rest...they're all very appealing and conventional wisdom would tell us that combined they just would make the most perfect garment ever.

But we have to prioritize and isolate. The viability of this strategy is illustrated in Frank's next dating example.

Remember I am setting you up with one of these guys. Here are the details......

• Jack...Divorced, Loves Kids and Plays Polo
• Bob....Single, Works in Finance and Makes a Lot of Money
• Mike...Physically Fit, Played Pro Football and Sells Real Estate
• Rudy...is Kind, Sensitive, and also Sells Real Estate
• Jim....Divorced, Loves Golf and Wants Kids Soon
• Rob....Makes a Lot of Money, Loves Women and is Difficult to Tie Down

Now Look away from the computer for 20 Seconds....


Don't Look back at the list....


Remember what you can about the six choices and if you can only choose one, which one do you remember and how did you remember them?

Like most readers I found it very difficult to remember and decide....

Now Lets Consider a different list where he gives one focused point on each guy.

• Roy...Is Rich
• Wilson...Plays Jazz
  
• Max....Is a Painter
• Phillippe....Owns a Vineyard
• Josh...Is a World Traveler
• Pete....Is Hard to Tie Down

Now look away again for about 20 seconds.


Which one would you want to be set up on a date with? Which one amongst the choices do you remember most?

Well if you don't remember exact names you may remember someone loves Jazz...and another is really rich and another is a world traveler. If any of these attributes match your interest the "brand/guy" will come to the top of your mind. Even with less information these guys resonate a lot more with one clear attribute than they do promoting multiple attributes.

Lesson learned...the less information we are given the more likely we are to remember it.

If you're in the process of building or improving your brand get this book... "Killer Brands...Create and Market a Brand that Will Annihilate the Competition." by Frank Lane. It's a fantastic read!

McMuffins Starbucks Style

If you’ve been to Starbucks recently you may have noticed their latest side hustle is a small assortment of breakfast sandwiches. Yes…watch out everybody…. Starbucks has entered the sandwich business.

I pondered about their potential success in this market while sitting at my local Starbucks/Community hub….that sits right next to what usually is a bustling Burger King. Hmm…I guess if you’re not zipping through the drive thru why would want to eat in that bright florescent lighting while sitting in a hard plastic booth? Mercy!

The average person would probably much rather eat their breakfast someplace where they check morning emails on their laptop while sitting on a plush sofa, sipping a chai tea latte with Norah Jones crooning in the background.

The people at Starbucks obviously realized this too and they’ve quietly extended their brand while keeping with their signature coffee roots. I am sure years ago they had enough traffic to be successful at selling anything from sandwiches to chicken on a stick if they wanted to….but they were operating with a mix of opportunity and strategy instead of just the former.

It's a tried and true method that works for Starbucks as well as many other highly successful companies. Remember long before their were McNuggets or Ceasar salads it was all about McDonalds hamburgers....or how many years went by before apple decided to launch it's snazzy version of the now virtually non existent mp3 player. Proving there is room within even the most competitive industries to grow within your main competency before attacking new territory.

As a fashion companies lets take for granted these iconic brands know what their doing and take a lesson not rushing ourselves into putting too much product on the market at once. We too can start with a specific category that we can strategically expand on over time….such as tee shirts, denim or dresses or blazers.

For long term success it's best to strongly correlate your brand to a concept or product amongst your core customer base before exposing yourself to new categories. If you’re successful there will be plenty of time and money for brand and product extensions.

Successful Fashion Brands that Took One Step at a Time….

1. Ralph Lauren….started with a variety of ties then polo shirts creating a culture of everyday preppiness.
   

2. Gap began with a strong niche in jeans to at one time becoming the largest specialty retailer in the world.

3. Diane Von Furstenberg cornered the market on prints and wrap dresses that she continues to this day.

It's Not Easy Being Green

There is a commercial for Ford trucks where a dad is taking his "Green conscious," daughter to school when she suggests he get with the program and buy a hybrid. The dad replies "This is a hybrid....I just never thought to mention it." The implication is that with his Ford Hybrid he is doing the responsible thing but it's something inherent...a real part of him as opposed to a bumper sticker promotion.

It's clever because the ad plays the card of being green because it's the right thing to do...not because it is popular.

Right now I am noticing a lot of companies that are "all about," organic cotton...hemp...natural fibers. That will have people after a while saying ok...of course you do...why wouldn't you? The newness will fade and pesticide free cotton will soon hopefully become the norm.

I do believe a certain level of promotion is necessary in order to keep up the momentum of the 'green' or any other important movement to bring it into commonplace. However from a long term branding perspective (for any other brand besides the Prius) I suggest more insidious marketing initiatives that don't necessarily say "Buy from us...we're doing the right thing...and that's good enough!"

Its important to make your socially responsible initiatives more a part of your culture and less a part of your tagline.

Look at it this way..... At some point "being green," will be just as important as not having your product produced at a sweatshop.

You want your brand to evolve and not expire. Truly basing your brand on an environmental strategy that would survive the long term would mean something more intense...such as being dedicated to developing organic cottons and dyes as part of your vision.

If your intent is to simply use organic cotton...use it...mention it but don't make it your everything. You will quickly become common if this is your central branding attribute.

As a clothing company focus more on what's truly unique about your brand such as your insight for colors...prints...or design details.

Doing Good is Good. Do it! Then Do You!

The Importance of Being Ernest

I got my first car at 16...it was a used hatchback my father purchased from our neighbor down the street. It was only $3,000 and I promised my mother I would pay them back. I remembered being so thrilled when they said yes.

A successful business woman, the evening before my big purchase my mother handed me a short contract to sign regarding what I agreed to and the terms of payment. She knew me all my life...I was responsible and even at 16 I'd had a steady job for almost 2 years. Where was the love???

Years later I deeply understand the need for contracts and agreements. While managing a high end label I once chased one of the most exquisite boutiques in New York for over 4 months just to pay their bill-- on product they'd probably already sold. They finally paid the flat amount....no interest...no penalties....no financial regard for the endless phone calls...letters and other administrative costs it took us to collect payment on terms that we "believed," we'd agreed to.

My point is that in this industry it is easy for us to get infatuated with each other. People are impressed with each others offices, soho boutique addresses and that they carry $2,000 miu miu bags. That goes a long way with us. But it should only go so far.

As a result people get screwed...they get pissed! They decide to never sell to that boutique again...or buy from that designer again...or deal with that supplier again. Relationship over everybody moves on...bitter and through!

It's unfortunate because most of the time a violation of trust is simply a violation of "understanding." Well drafted, simple contracts and agreements help everyone to understand, set expectations and literally puts all parties on the "same page." Good agreements are nothing to be scared of.

I encourage you to swallow that one uncomfortable moment with new buyers and walk them politely through your terms of sale..... With vendors after you've come to an understanding on price and deliverables provide them a written explanation of what you expect...why not?

Fear that's why....If you're new all this may seem a little over the top. People often get uncomfortable with contracts...they need to have their cousin's husband who's a lawyer to look at it....they have to find a lawyer. It seems like it may be more trouble than it's worth. The worst feeling is when the other party gets uncomfortable with you. I mean how do you do business with someone you don't trust?

The Answer According to Donald Trump: Never do business with someone you don't trust. I agree (as if he needs that).

However, with a contract you are simply outlining the trust. It doesn't have to be a book....it doesn't always have to be "from," or "looked over," by an attorney. Legitimately you could scare people off especially for a smaller project.

But you have to write something...however brief it has to be an understanding. A clear understanding that both parties are willing to agree strongly enough that they pick up that black pen and they say. Yes, this is what I said I will do. Where do I sign!

An ounce of prevention is a pound of cure...when it doubt write it out.

Out of Our Minds....

The book I'm reading this week is called "Out of our Minds...Learning to Be Creative," by Ken Robinson. Although Ken is a little verbose and has an affinity for words most people have to look up in the dictionary, this book brings up a lot of interesting points regarding the art of creativity.

One point I particularity like, explains how a common yet faulty assumption is that being creative should in some way be isolated to the arts. His rationalization includes the thought that wherever you find great success stores whether in business, medicine, sports or rocket science creativity is usually one of the most active ingredients.

So if you're a designer and consider yourself a “creative,” instead of an “analytical,” type don't shy away from practical seemingly less interesting business matters because you don't consider it your "territory," or "expertise." I encourage you to extend your creative juices into some of what you may feel are less glamorous matters of your organization.

Step away from the sketch pad and take some time to work "on," your business....not necessarily "in," your business.

Carve out a day to brainstorm on new business initiatives...or think about how you may be able to creatively increase your profit margin by using new materials or create ways to boost morale amongst your employees and outside contractors.

If you're creative in any way which most all of us are...expand that creativity to more areas within your business. Running a healthier more profitable company should be all the inspiration you need.....

A New Type of Customer Support

We all know getting into some of the major stores such as Barney's, Saks and Neimans new Cusp stores can be great exposure, volume and really express the legitimacy of your brand.

But now more than ever you'll see smaller pointedly stylish local boutiques are becoming the new barometer for what's golden in the contemporary market.

My advice...see what retailers tickle your brand's fancy and start your sales efforts at the top of the boutique food chain. If you don't...hence deciding to let your sales efforts run themselves you'll find yourself placed in a lot of stores that are less than......and manage to make yourself a little less desirable.


Example: Think after school special...new girl in school decides to go out with every guy that asks for her phone number. Well she probably will never be able to date the captain of the football team. Unfortunately she lost her appeal.

But lets take it the other way around....New girl, lands the captain of the football team, notwithstanding him being totally blind she's instantly branded as the most beautiful thing walking... resulting in a lot more options if they should ever should every break up.

Excuse me for my teenybopper example but the point is to have a strategy and realize that it is in fact one of the most important parts of your brand launch. You'll want to be able to proudly publicize your store list and have your sales in essence do some marketing for you.

So where are these stores? There are boutiques all over the country you'll find are mentioned again and again in the press. Browse through the pages of US Weekly, Life and Style, Vogue, Elle, InStyle....you'll quickly see who is making a name for themselves and are creating a new definition of customer support.

Here are a few of my favorites.....

Mini Majors:
Scoop NYC and Intermix

LA Local Legends:
Fred Segal, Lisa Kline, Kitson

Other Fresh Faces:
Milk, Presse, Diavolina, Madison

Web Masters:
Shop Bop, Active Endeavors