The Problem of Over Supply

(2018/07/21) For many, it's hard to imagine that business rather burning their over-production items than selling those at its salvage value. But for some firms, burning inventory is the best way to avoid "brand devaluation."

"Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth £28.6m last year to protect its brand."

Own a Porsche Like You Rent It?

(2018/03/28) Now you can own a Porsche like you rent it. It's just not cheap. But a smart idea, right? Once you experience that power and speed, you will have a crave.

https://www.cnbc.com/2018/03/28/subscription-service-helps-porsche-attract-younger-drivers.html

This is how it works (Porsche Passport):

"Porsche Passport, which provides subscribers with access to Porsche vehicles via a mobile app, is currently only available in Atlanta, home to Porsche's North American operation, as well as Clutch Technologies, the company hosting the app.

The month-to-month subscription gives customers two price options: A flat fee of $2,000 or $3,000. The subscription includes a $500 activation fee and credit check, and covers vehicle tax and registration, insurance, unlimited mileage and maintenance. Smartphone users can download the app and begin using the same day or schedule future rides. "

Branding of Bulk Retailers

(5/16/2014) Most people probably think the difference between Costco and Sam's Club (Walmart owns it) is tiny, just a different store name. But it seems it is more than that. In the last several quarters, the performances of these two bulk retailers show they are going to different directions: Costco is doing just fine, but Sam's Club is going south. Here is a very good analysis and comparison between them.

There is no Costco in Rhode Island and I shop in Sam's Club sometimes for several years. But, based on my experience in several Sam's Club, the Sam's club management is really bad. Many of Sam's employees are most not well trained, and cannot answer some basic questions about where is the stock. I think they probably receive very little training and get paid not much better than Walmart's associates. Sam's Club definitely has serious supply issue (maybe it's related to its relationship with suppliers) since they discontinue some good brand stocks for no reasons, which made me less incentivized to shop there.

Why Sears is Running Down

(10/22/2013) If one picture is worth a thousand words, then these pictures on Business Insider about Sears is worth of whole page of explaining why people don't shop in Sears anymore. Do you know Sears was one time the largest retailer in the US? Hard to believe, hmm? Or maybe it is "no wonder why."

A Saks-Neiman Marcus Merger?

(5/23/2013) Will two high-end department stores, Saks Fifth Ave and Neiman Marcus, become one? Fierce competition makes merger look a good solution, but the brand management for two separate groups of consumers and store open-or-close after the merger is not a easy job.