Alibaba.com- Changing how we (Americans) Purchase

The way the world produces, manufactures and purchases its products is constantly evolving.  With the development of the internet as a global medium to for consumers and sellers, there is always some new website or service being developed to serve people.  For my business plan I am developing a new line of high end backpacks and I have stumbled across a site that fits perfectly in this mold, Alibaba.com.

Alibaba.com connects people across the world with manufacturers in China, India, America and beyond.  The goal of Alibaba is to connect up and coming businesses with companies who can help manufacture their products. A rising hat business can find different styles and producers who will compete to create your product for you and win your business.

The way Alibaba.com works is you search through thousands and thousands of companies across a host of industries and identify what you are looking to produce.  For example if you are looking to produce your own line of clothing, specifically shirts, you can organize your results into clothing and individually look at companies.  These companies each have a profile page with how big their operation is, the minimum you must purchase, pricing etc... From there the customer compares and looks at other prices to find that perfect company to produce their items.  The customer will then contact the company and begin the production process.  Turn around time here is usually a month or so but some manufacturers can do it in more/less time.

While Alibaba is an awesome outlet for up and coming businesses it also has its limitations.  For instance most of the businesses only take orders of 1000 or more. If you're just starting out and have to order 1000 of something even if its just $5 that adds up quickly.  So future consumers just need to be mindful because if they're looking to make small purchases Alibaba probably isn't the place for you. But it is a great place to get started with prices, connections and who knows what you'll find on there.

Entertainment Law Update Blog

For this blog assignment I've taken the time to listen to a couple law podcasts in an attempt to expand my knowledge about different aspects of my business.
For my first podcast I listened to Gordon Firemark's podcast Episode 43- No Copyright Sherlock.  I'll be honest, I was dreading this assignment and thought this was going to be the most boring thing I've ever listened too but I thoroughly enjoyed this podcast.  I think being a former English major helped because Gordon discussed Faulkner and Harper Lee and a couple copyright issues.  The main issue I found interesting was the Faulkner people vs. the Midnight in Paris movie people.  At one point in the Midnight in Paris film George Clooney stands up and proclaims a profound statement about the past that was in the Faulkner piece "A requiem for a nun." Faulkner's folks said the one phrase in the movie violated copyright laws and that they were owed for the quote.  The judge however, cited fair use and said that there was no way this a copyright violation.

I found this 1st case quite helpful because I plan on making tshirts and hats down the road as my brand grows.  And a few of my designs all have common phrases on them.  I will need to ensure that I am protected under fair use for a few of them so that I cannot be sued for violating copyright laws.

For my 2nd case I listened to Entertainment Law Update Episode 36- Einstein, Faulkner, Superman and talent managers. There were some interesting points brought up in this podcast but one point in particular I found insightful.  Gordon discussed in this podcast Fox News vs. the wife of a deceased US Marine.  In this case Fox News used pictures of the family on vacation and pictures of the deceased Marine for their documentary "Afghanistan ER." Gordon discussed the moral issue of using pictures of the family on vacation but legally they didn't do anything wrong. The story proved as a stern warning to hurting your brand's image.  While yes Fox News did not do anything legally wrong they really did severely hurt their public image. For my brand we may never deal with anything this heavy but, we always need to keep our public opinion in the forefront of our minds.

Legal Issues: Lifestyle Brands

As an aspiring entrepreneur looking to developing my own brand first impressions are vital.  You want to make sure your company comes out of the gate with a great reputation and the consumers on your side.  That being said this week I researched 3 legal issues other lifestyle companies ran into and how it tarnished their reputation.

1^st off is the ever controversial subject of “ethics” and business.  Nike provides a great example of what not to do to keep the consumers on your side.  A few years back it came out that Nike was using underpaid labor in China to make their shoes.  And not just any underpaid labor, child labor.  The resulting public outcry and Nike’s initial flippant response left Nike’s reputation tarnished and falling stocks.  For me this is a stern warning to keep your business honest because at some point your dirty secrets will come out.

A 2nd example that I discovered was the Supreme vs. Married to the Mob.  Supreme is a lifestyle brand located in NYC with its reach covering into Europe.  A popular choice among rappers, artists and the like, Supreme has set itself apart as a strong brand and stronger business.  That being said a couple years ago Supreme took competitor Married to the Mob to court for their "Supreme B!tch" line of tshirts.  The resulting 10 million dollar lawsuit left Supreme tarnished and looking like a spoiled bunch of children.  Although it makes sense for a brand to protect itself it does not make sense for a lifestyle company to chase every possible trademark infringement around as it only ends up damaging themselves.

Finally a 3rd example of legal issues a lifestyle brand can face is Adidas and their "shackle sneaker" line.  Adidas released a line of sneakers with shackles that hook to your ankles when you wear them.  While I give Adidas credit for being creative the backlash from the general public was terrible.  After being called racists, biggots and other terrible things the company pulled the line.  The incident provides a solemn warning to companies about being conscious to not step on any toes.  While sometimes it makes sense to be edgy a company must always remember to be respectful less they receive a public lashing.

Knowing your target market: Planet Fitness

In the image based culture we live in it's easy to see why the gym and fitness industry is booming. Whether you work out in the garage of a trainer teaching crossfit or you go to one of those huge gyms with pools, spas and video game center, chances are at least familiar with the typical gym atmosphere.  You know what I'm talking about, the grunting giant guy by the weights staring in the mirror, the chick who wears nothing but a sports bra and short shorts and jogs on the treadmill for 2 hours.  Regardless you know that the gym experience for the average Joe is usually less than stellar.

Enter Planet Fitness.  Planet Fitness is a great example of a company identifying a market in desperate need of an outlet.  While there are plenty of gyms that aim to be "no pressure" gyms none have done so as successfully as Planet Fitness..  Planet Fitness has been running campaign ads for months now that make fun of the meatheads, the gym rats and the yoga chicks.  The idea being that not every person goes to the gym to gain 20lbs of muscle.  Instead Planet Fitness wants its members to know that they have a safe haven at their locations to just “keep in shape.”

Planet Fitness is a great example of a company identifying a market in desperate need of an outlet and filling it.  The gym has quickly spread its franchise from coast to coast with national success.  Seeing Planet Fitness’ success has definitely challenged me as an aspiring entrepreneur.  Just as Planet Fitness identified a target market and filled it I am really challenging myself to do the same.  While I may not have as broad reaching market such as the fitness world there is definitely still opportunity.  My job as founder is to identify these opportunities and find a way to fulfill them.  

Sometimes You Live Long Enough to See Yourself Become the Villain

This past week the one and only Jay Z dropped his latest studio album Magna Carta Holy Grail.  The album has been received with mixed views ranging from a scalding review via Chris Richards at The Washington Post to Steven Hyden's high praise over at Grantland.com.  I personally was carefully optimistic when I downloaded the album.  I've always been an avid Jay Z fan and although I agree he's a little over indulgent sometimes I still enjoy his music and his creative approach to hip hop.  

I've followed Jay Z for a while now with The Black Album being my first real introduction to HOV (later than most I know).  And I've passionately purchased everything he's put out since. I loved The Bluprint 3 and was even on board for Kingdom Come and his little stint with Kanye on Watch the Throne.  However, after searching through the latest album I just don't feel the same connection or passion coming from the music anymore. 

Jay...we get it, you make a ton of money and you're married to Beyonce can we talk about something else now?

But, I digress.  In the fast paced, emotionally jaded, technologically driven world we live in, Mr Carter found a way to do something different.  For that he has my respect.

Taking a look at the big picture however, one must ask if it's worth it in the end.  While you could argue that Jay Z has become a part of the machine that hip hop has fought so hard to avoid you also cannot argue that maybe this is just the next stage in hip hop's evolution.  For someone like me who is working towards building from the ground up I'm sure it's a great probleem to have; to give in or to stay real.  

Jay Z has done a fantastic job of looking at himself at a product, a brand if you will, and as the times have changed so has he.  Jay Z has determined that he wants the brand that is himself to move into a larger audience with a greater reach so that he may keep growing and evolving as a businessman.  While we as fans may have the golden days of Jay behind us there's a lot to look forward too and to learn from on the business end from Mr Carter.  

I for one know I will be watching. 

Negotiation and Deal Making Interview

For my blog I interviewed local business owner and custom home renovator James Franklin.  Franklin owns Coastal Custom Finishing LLC based out of Dr. Phillips.  The main source of income for Coastal Custom Finishes is the art of plastering and wall restoration in which James is one of the most sought after and reputable businessmen in the area.  Negotiation is a daily part of James’ job as he is constantly negotiating pricing, timelines and other various costs.  Due to the nature of James’ business there is no way to really provide set pricing as it changes from job to job.  Thus most pricing discussions result in a negotiation as the customer tries to lower the costs. 

The first item James and I discussed was separating the person from the problem.  James explained that sometime jobs change and you have to alter the price or expectations.  During these jobs you sometimes cross paths with your employer and tensions rise.  It is when this happens that you have to renegotiate these deals and emotions are high that problems can appear.  James highlighted that keeping a cool temper and letting the other person talk first worked well for him.  It allowed time for him to identify what the person really wanted and give him the opportunity to let tensions lower.

James and I also discussed how he uses objective criteria in his pricing and negotiation. Since each project changes from job to job, James does the best he can to provide a common price point to establish costs.  One way James reutilizes objective criteria is by giving the customer the average cost per foot in the current market.  James says it allows him to set a base price and then explain how his work is higher quality and thus will be more expensive.

The last item James and I discussed was when customers play dirty tricks.  James commented that being in the blue-collar business presents a separate set of problems in the area of dirty tricks.  A healthy BATNA is also key to have in most job situations to help prevent any dirty tricks.  A great example James had recently was when a customer threatened to have James kicked off a job site because he was not moving “fast enough.” To prevent this dirty trick James pulled out his BATNA and stated that if they took him off the job they would miss out on the best quality and would set back the next painter.

I am very thankful for James sitting down with me and giving me the chance to pick his brain.   James had some great examples of being a great, principled negotiator.  The real world examples were great for helping show me how I want to be able to negotiate whenever I enter the workforce.

GOOGLE: Taking Over the World and Looking Good Doing It

            Normally in my posts I talk about fashion, competitors, logos or other things that pertain to the backpack industry.  This week though I’d like to take a break and talk a little bit about a brand I greatly admire.  As the title of this blog suggests that brand is the ever-growing powerhouse that is Google.

This past week was the Google I/O Keynote meeting.  The 180min presentation covered everything from new technology like Google Glass to the redesign of Google+ to the new Google Maps rollout.  I’ve looked at a few recaps of the meeting from Mashable.com , Time.com, and Wired.com.  These recaps take a look at Google from different perspectives and all generally commenting on the summit being generally uneventful.  However, Lance Ulanoff takes a separate approach from Time and Wired to discuss the Google summit.  Ulanoff talks about the slow takeover of Google and how the company is slowly infiltrating every aspect of its consumers’ lives.

I found this recap most interesting because I thought it shed a lot of light on what Google as a brand is doing.  The company is making minor edits to Google+, Google Maps and its Android devices enough so that we become more accustomed with their programs than others that are available without knowing it.  Google has more resources than its competitors, it has more platforms and tools and it has the foresight to flex these muscles.  It seems that instead of flat out competing with Facebook, iPhone, iPads, Yahoo Maps etc… Google is completely content with making small edits and changes and slowly bleeding their competitors’ dry.

For instance if you use Gmail you most likely have Google+.  As Google+ continues to grow, change and evolve consumers using other platforms such as Google maps or Gmail will find their activity slowly becoming more integrated with the social media platform.  Eventually then it is only a matter of time before they switch over to Google+ completely.  Google is on a quest for world domination, there’s no doubt about it, and as the summit shows they’ve got the know how and the power to do it.