I know a thing or two about the coffee business and I know that it can become a little too big. As Andy Resnick once said, Starbucks is a 300 pound gorilla. Starbucks has created something that was once luxury and now mass market luxury and slowly deteriorating to nothing more than mass market. Why? Well there is really nothing special about the Starbuck's experience. It frustrates me because I love the coffee business. Here are a few key points that need attention:
Customer Service: Those consumers that are the least price-sensitive (continuing to buy high priced lattes with rising oil costs) are those with higher salaries. Often these people have risen in their positios because of their ability to manage things such as time. They think strategically. Why stop at Starbucks for a meeting, lunch on the fly or for a quick cup of Joe if you must wait in line for more than 5 minutes? That's not reasonable. Let's look at it from a ROI perspective. A person who makes $75,000 per year USD makes about 60 cents a minute (based on 40 hour workweek). If it costs $3 to stand in line for 5 minutes for a $3 coffee-concoction amounts to $6. An article on Market Watch indicates that Starbucks has cited competition from McDonald's and Dunkin' Donuts. When you compare the value of time versus the value of a good cup of Joe versus the value of time its easy to see how some might pass up the value of quality. Noting the above equation it person making a salary of $125,000 a year would have a cost of about $9.
Quality: When I lived in Los Angeles I frequently visited Starbucks. I love my coffee and I visited Starbucks more than any other places by virtue of the fact they are more of them. I have recently moved to Paris (and have visted in several occassions before moving). Although the consistency of beverages seems to be better in Paris - it is lacking on both sides of the Atlantic. I know that you can go to three Starbucks in the same neighborhood and get beverages of varying taste and temperature. If consumers have to decide between a consistently prepared $2 doubleshot Starbucks from 7-Eleven, and higher priced consistenly prepared beverages from the store itself- what is the payoff? Warmth?
Customer Service: Have you ever been to a Starbucks and been asked "What?" when you ordre a large? Have you met arguments when after waiting an extended period of time for a $4 concoction that did not meet your quality expectations - been argued with? Have you ever been treated rudely? Have you ever, after finally getting your beverage found that milk, sugar or other condiments have been depleted? Have ever arrived in a Starbucks for a simple filter-drip coffee, paid for the beverage and been told that you'll have to wait for it to finish brewing? (And occassionally been served a coffee before the pot finished brewing to have an "oddly" different tasting cup? Have you ever had a cup of filter-drip or espresso-based beverages that were lukewarm or extremely weak in comparison to your usual drink? Yes to all.
Environment: Something I can give McDonald's credit for on both sides of the continent is its ability to keep restaurants clean on both sides of the counter. When I visit McDonald's it is mostly from a brand management research perspective, I will admit. I find that consistentlytheir restaurants are clean. I cannot say the same for Starbucks. On both sides of the counter, often times it seems everything from the condiment stand, the espresso machine, the pastry case, the tables and the bathroom - everything is out of sorts. Have you visited a high-end luxury or mass-market luxury store and found it out of sorts?
A little aside: When I first visited Paris in 2005 I was astonished at the increase in quality and food selection in Parisian Starbucks. Offerings seemed to mimic the Parisian desire for smaller and healthier portions. Perhaps the product managers did most of the researh in times when tourism was at its peak - because by my arrival in summer 2007 it seemed that the offerings mirrored American preferences. The quality is still higher but with Boulangerie's next door - what's to stop someone from buying a quick good from a Parisian baker to bring to Starbucks?
Starbucks needs to look back on their history and reflect on their roots. They once had the ability to provide high-end quality (luxury) coffee beverages conveniently to the leisurely and those on the go. What's so special about mediocracy?
Showing posts with label luxury goods. Show all posts
Showing posts with label luxury goods. Show all posts
Monday, January 7, 2008
Tuesday, January 1, 2008
Counterfeit = Theft
What do YOU define as counterfeit?
Let’s take a hard look at the realities of counterfeiting.
First ask yourself these questions; Would you knowingly use fake dollars, pounds or euros? Would you feel if you went to the make a bank deposit and the teller told you your currency was counterfeit and worthless? How would you feel if someone gave you a fake mortgage deed? How would you feel if you discovered an employee gave you counterfeit degree? I’m assuming most people will have a problem with AT LEAST one of these questions. Thus, you have a problem with fraud and/or counterfeiting. Counterfeiting is a form of fraud.
Yes, I find that the entertainment industry makes it difficult to define where the line is drawn. If I buy a CD is it illegal for me to copy it for the sake of preservation? But what if I lend somebody either copy? But we'll leave this discussion for another blog.
I had an interesting conversation in Paris on Christmas Day that provoked me to start writing more about the truth of counterfeiting. A "lady" who operates a tour company in Paris was bragging about a fur vest she bought for 5 euros. Sorry but that screams of several problems; animal cruelty, theft, smuggling… One of her clients chimed in that she had just purchased her first “Chanel” bag, then added that it was a fake “Chanel”. I'm currently studying in Paris for a Masters in Management & Economy specialised in Luxury Goods in Fashion. I've also been anxiously awaiting my Carte de Séjours (work permit) so that I can apply for a temporary job working with Chanel. My response to the statement about the fake Chael was: “Well that’s a whole other story and probably not a good conversation over Christmas Dinner!"
If you buy fake you buy counterfeit and you have in many countries committed a crime. In completed my Bachelor of Science in the United States. I was reminded day after day that plagiarism was a serious academic offence – stealing someone else’s intellectual property. I’m sure most schools around the world offer similar reminders. Even highschools. Thus, I’m fairly certain that a large number of people understand the nature of counterfeiting very clearly. Well people that design fake bags are stealing someone else’s designs. But if they in fact use a name like Louis Vuitton on their bag they are also stealing a registered mark – a trademark. It’s against the law.
I can imagine you find the cost of Louis Vuitton bag expensive if you are unaware of what craftsmanship is involved in it’s creation. If you find it expensive, I can imagine buying a different leather bag with similar colours. I cannot forgive you for buying a bag that is labelled “Louis Vuitton” and is not. There’s nothing about it that’s different from using counterfeit currency. Lest I remind you that currency was created to make trade easier. Currency was created so that you could sell your goods and then use currency to buy what you wanted rather than finding a buyer that had something you wanted/needed and bartering an agreement for exchange of goods/services.
There is a line that is hard to define in some ways depending on the laws of your country. The United States for example has some fairly lax laws that will allow for someone to replicate a design if enough changes are made and a registered mark is not illegally used. Imagine a Gucci or Coach bag and a fake made with similar designs but with patterns that are clearly NOT the Gucci G or Coach C. I admittedly have two accessories that are on the line. I have a pair of shoes that have a plaid pattern similar to the classic Burberry – but clearly not the same. In no way were these shoes sold with any reference to Burberry. I also have a scarf bought at Target that has similar with the same description. The fashion industry sometimes popularizes a certain colour or colour combinations that become POP culture. The line is very fuzzy. But if either of these items were labelled Burberry it would be an infringement on Burberry’s registered marks.
Go to google.com and search counterfeiting. You will quickly learn that there are many associations with drugs, terrorism, smuggling….. Things I’m sure most people do not want to be involved with. You pay your taxes, right? Taxes are almost never paid on counterfeit goods. The person selling the counterfeit goods might even charge you taxes applicable to your state or province – but they probably do not remit them to their prospective government….because it would be like remitting taxes collected from the sale of cocaine.
Do you think I’m exaggerating? I’m not.
Did you know that in France buying or carrying a counterfeit product like a fake Chanel bag is a CRIMINAL OFFENCE? You could be punished with 3 years of imprisonment and up to a 300,000 euros in fines. [LINK="http://www.comitecolbert.com/internet/index.php?option=com_content&task=view&id=236&Itemid=221%E2%8C%A9en&lang=en"]Really Long Link[/LINK]
Counterfeiting damages economies by evading taxes, stealing sales from the creator and job loss. According to teas scribos [LINK="http://www.tesa-scribos.com/industries-markets/luxury-goods.htm"]Really Long Link[/LINK] these luxury houses lose thousands of euros per year.
Pass it on.
[LINK=http://network.nationalpost.com/np/blogs/toronto/archive/2007/12/03/counterfeit-luxury-goods-seized-they-may-look-real-but-they-re-not.aspx]Really Long Link[/LINK]
Let’s take a hard look at the realities of counterfeiting.
First ask yourself these questions; Would you knowingly use fake dollars, pounds or euros? Would you feel if you went to the make a bank deposit and the teller told you your currency was counterfeit and worthless? How would you feel if someone gave you a fake mortgage deed? How would you feel if you discovered an employee gave you counterfeit degree? I’m assuming most people will have a problem with AT LEAST one of these questions. Thus, you have a problem with fraud and/or counterfeiting. Counterfeiting is a form of fraud.
Yes, I find that the entertainment industry makes it difficult to define where the line is drawn. If I buy a CD is it illegal for me to copy it for the sake of preservation? But what if I lend somebody either copy? But we'll leave this discussion for another blog.
I had an interesting conversation in Paris on Christmas Day that provoked me to start writing more about the truth of counterfeiting. A "lady" who operates a tour company in Paris was bragging about a fur vest she bought for 5 euros. Sorry but that screams of several problems; animal cruelty, theft, smuggling… One of her clients chimed in that she had just purchased her first “Chanel” bag, then added that it was a fake “Chanel”. I'm currently studying in Paris for a Masters in Management & Economy specialised in Luxury Goods in Fashion. I've also been anxiously awaiting my Carte de Séjours (work permit) so that I can apply for a temporary job working with Chanel. My response to the statement about the fake Chael was: “Well that’s a whole other story and probably not a good conversation over Christmas Dinner!"
If you buy fake you buy counterfeit and you have in many countries committed a crime. In completed my Bachelor of Science in the United States. I was reminded day after day that plagiarism was a serious academic offence – stealing someone else’s intellectual property. I’m sure most schools around the world offer similar reminders. Even highschools. Thus, I’m fairly certain that a large number of people understand the nature of counterfeiting very clearly. Well people that design fake bags are stealing someone else’s designs. But if they in fact use a name like Louis Vuitton on their bag they are also stealing a registered mark – a trademark. It’s against the law.
I can imagine you find the cost of Louis Vuitton bag expensive if you are unaware of what craftsmanship is involved in it’s creation. If you find it expensive, I can imagine buying a different leather bag with similar colours. I cannot forgive you for buying a bag that is labelled “Louis Vuitton” and is not. There’s nothing about it that’s different from using counterfeit currency. Lest I remind you that currency was created to make trade easier. Currency was created so that you could sell your goods and then use currency to buy what you wanted rather than finding a buyer that had something you wanted/needed and bartering an agreement for exchange of goods/services.
There is a line that is hard to define in some ways depending on the laws of your country. The United States for example has some fairly lax laws that will allow for someone to replicate a design if enough changes are made and a registered mark is not illegally used. Imagine a Gucci or Coach bag and a fake made with similar designs but with patterns that are clearly NOT the Gucci G or Coach C. I admittedly have two accessories that are on the line. I have a pair of shoes that have a plaid pattern similar to the classic Burberry – but clearly not the same. In no way were these shoes sold with any reference to Burberry. I also have a scarf bought at Target that has similar with the same description. The fashion industry sometimes popularizes a certain colour or colour combinations that become POP culture. The line is very fuzzy. But if either of these items were labelled Burberry it would be an infringement on Burberry’s registered marks.
Go to google.com and search counterfeiting. You will quickly learn that there are many associations with drugs, terrorism, smuggling….. Things I’m sure most people do not want to be involved with. You pay your taxes, right? Taxes are almost never paid on counterfeit goods. The person selling the counterfeit goods might even charge you taxes applicable to your state or province – but they probably do not remit them to their prospective government….because it would be like remitting taxes collected from the sale of cocaine.
Do you think I’m exaggerating? I’m not.
Did you know that in France buying or carrying a counterfeit product like a fake Chanel bag is a CRIMINAL OFFENCE? You could be punished with 3 years of imprisonment and up to a 300,000 euros in fines. [LINK="http://www.comitecolbert.com/internet/index.php?option=com_content&task=view&id=236&Itemid=221%E2%8C%A9en&lang=en"]Really Long Link[/LINK]
Counterfeiting damages economies by evading taxes, stealing sales from the creator and job loss. According to teas scribos [LINK="http://www.tesa-scribos.com/industries-markets/luxury-goods.htm"]Really Long Link[/LINK] these luxury houses lose thousands of euros per year.
Pass it on.
[LINK=http://network.nationalpost.com/np/blogs/toronto/archive/2007/12/03/counterfeit-luxury-goods-seized-they-may-look-real-but-they-re-not.aspx]Really Long Link[/LINK]
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