designer

America’s Priciest Clothes Shops

by The Huffington Post on August 27, 2011

Huffington Post…

In such a shaky economy, many Americans are looking to save a couple bucks however possible. But there’s still a significant contingent are willing to go all-out for designer threads. Based on receipts from some of the country’s most elite clothing stores between April 2010 and May 2011, business and personal finance site Bundle.com has found the 25 shops where customers on average spend the most money. Excluding wholesalers, department stores and manufacturers, it may be no surprise that the majority of the shops identified by Bundle.com, seen in this infographic , are designer names like Prada, Chanel and Giorgio Armani. And often, they are located in big cities like New York, Los Angeles and Boston. (For cities that shop the most online , check out this infographic from Bundle.com .) According to Bundle.com , many savvy fashionistas prefer to pick up designer-inspired items at lower-priced retailers like H&M and Zara, while others will spend up to $10,000 for an Oscar de la Renta cocktail dress. In fact, luxury retailers have struggled little compared to less expensive retailers because the wealthiest Americans have been largely unaffected by higher food and gas prices, Bloomberg reported in May . One such retailer, Saks Inc, for example, saw an increase in revenue of 15.6 percent in July. Compare that to only 3.3 percent increase at department store J.C. Penney. Still, recent volatility on Wall Street may spell troubled times ahead for luxury retailers. That’s because stock performance often informs high-income Americans spending habits, according to Bloomberg Business Week . Consumer sentiment among these shoppers hits its lowest point since November 2009 in the week ended August 7th. Here are the top 10 clothing stores where customers spend the most money, according to Bundle.com .

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America’s Priciest Clothes Shops

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Huffington Post…

In the continuing backlash against the Murdoch Empire, a Firefox add-on has just been released that warns a user when they arrive at a website owned by NewsCorp or any subsidiaries, such as Fox News or the NY Post. Murdoch Alert was just created on Mozilla today, and the designer gave News Junkie Post an exclusive first look at it.

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Firefox Add-On Warns Surfers Away From Murdoch Sites

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Green Jobs Can Bring Home Bigger Paychecks, Report Finds

July 13, 2011

Unemployment remains high. Fossil fuels are under increased scrutiny. Governments are looking to cut costs. These underwhelming realities have shifted America’s attention toward the employment potential of the green community. As local areas continue to ramp up their efforts to save energy, more metrics are becoming available on the people behind those initiatives. The Brookings Institute released a study on Wednesday, profiling a multitude of national and regional trends within the United States’ green workforce. Entitled “Sizing the Clean Economy,” the study found that 2.7 million workers hold professions that qualify as “clean.” Outside of that national figure, Brookings’ Metropolitan Policy Program dove into the local scene. The report compiles statistics for several metro areas, looking at factors such as the quantity of clean jobs, the growth rate at which cities are adding clean jobs, and the wages for employees holding those positions. Leading the way in terms of overall clean economy size was New York, with 152,034 green jobs. Newsday notes that the largest slice of that green pie was transportation, which accounted for nearly 40 percent of those employment positions. In cities like Denver, green jobs are bringing home bigger paychecks . Workers in clean-energy posts within the Mile High City are netting $47,602 in annual pay, which is almost $4,000 more than the medium wage for others working in Colorado’s capital. While the Brookings report notes that the green economy “remains an enigma,” these figures stand to be boosted by the Environmental Protection Agency’s new financial backing of green jobs. EPA Administrator Lisa P. Jackson introduced that vision on Tuesday , which includes $6.2 million in development and training grants.

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Phototron Holdings, Inc. Chief Financial Officer Brian Sagheb Appointed Interim CFO of GrowLife Inc., Phototron’s Wholly Owned Direct Selling Subsidiary

June 2, 2011

WOODLAND HILLS, CA–(Marketwire – Jun 2, 2011) – Phototron Holdings, Inc. ( OTCQB : PHOT ) ( OTCBB : PHOT ), the designer, manufacturer and seller of the PHOTOTRON Hydroponic Indoor Grow Systems, today announced that Brian Sagheb, Chief Financial Officer of Phototron, will also serve as interim Chief Financial Officer of GrowLife Inc., Phototron’s wholly owned direct selling subsidiary.

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Creative Minds 2011: Submit Your Questions For Joey Wolffer!

November 17, 2010

As we we reach the end of the year, you’ll no doubt be inundated with “best of 2010″ lists on every topic imaginable. But we also want to look ahead to 2011–to the creative minds we’re expecting great things from. These people have wowed us in many ways, but are nowhere near done. Submit your questions for all our creative minds and watch the interviews to see if we ask your question live! Joey Wolffer began her career designing jewelry. She provided accessories for Top Shop and Jigsaw in London before becoming the senior jewelry designer for the Accessory Network. She eventually moved on to become the Senior Jewelry Designer for Nine West as well as Trend Director scouting trends for all Jones’ brands. There she learned the thrill of the hunt and honed her unique style. This all lead her to launch her first business–The StyleLiner–a truck filled with awesome accessories. She gathers her inventory from around the world, from places most people can’t easily access, and stuffs it all into her 20-foot refurbished truck. The items you’ll find there are limited edition and cost anywhere from $30 to $1,800. Submit your questions for Joey below and click here to see our other Creative Minds to watch in 2011.

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Oasys Design Systems Names Craig Robbins Vice President of Sales

November 9, 2010

Noted EDA Executive Tasked With Building Worldwide Sales, Support Team to Expand RealTime Designer Deployment

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Oasys Design Systems Names Craig Robbins Vice President of Sales

November 9, 2010

Noted EDA Executive Tasked With Building Worldwide Sales, Support Team to Expand RealTime Designer Deployment

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Jonathan Bernstein: How to Avoid Foot-in-Mouth Disease

September 22, 2010

On a daily basis, we see celebrities, politicians and business leaders jam their designer shoes firmly in their mouths during media interviews. You can regularly read a hilarious collection of them in Merrie Spaeth’s infamous Bimbo Awards. Now you’d think that people of that stature would have been media trained. The problem is, however, that many people simply don’t know how to determine if their media trainer is qualified to prepare them properly. Retaining someone to provide a service about which you know little yourself can always be tricky, whether it be an auto mechanic, a lawyer, a plumber, a computer tech or — the topic du jour — a media trainer. Below are a list of questions to ask any potential media trainer. The answers should help avoid foot-in-mouth disease when a reporter’s microphone is in your face — assuming, of course, that you listen to your trainer’s advice! Have you been a working journalist yourself? If yes to #1, what type of journalist were you (e.g., anchor, investigative reporter)? If no to #1, what is the basis for your understanding of the media? Does your training include how to deal with non-traditional media, e.g., social media? Do you teach us how we can maintain the skills we have learned from you? Be specific. Does your training prepare us both for routine interviews and for crisis-level interviews? How long have you been a media trainer? Could you show me anything you’ve written about this topic, and/or articles in which you’ve been interviewed? If the stuff hits the fan, can you also provide us with spot advice on what we can say? Are you an experienced media interview subject yourself — i.e. do you practice what you preach? Shoes belong on your feet, not in your mouth, so use the above to make sure you get the best possible media training.

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Gregory Unruh: Scarcity: The Fountain of Innovation

September 16, 2010

Monday morning Tianjin, China and it’s the first session of the World Economic Forum’s “Summer Davos 2010″ event. Ironically, after a filling breakfast in opulent surroundings, my panel colleagues and I are discussing scarcity. With concerns about peak oil, peak water, peak real estate, peak financial markets – and just about peak everything else – scarcity is on the minds of business and political leaders alike. The panel members come at scarcity from diverse disciplines. I come at it from the perspective of environmental sustainability, where scarcity has been a polemic since at least the 18th century (although the roots go deeper to Roman times in the west and ancient Chinese culture in the east). Most people remember the “Limits to Growth” debate about resource scarcity posited by the Club of Rome in 1972, but the modern dispute begins with the early economists like Robert Malthus, who in 1798 recognized that exponential growth can’t go on forever. When we talk about resources scarcity, we tend to think of energy and material constraints. But that’s only half of the story because it forgets a third important resource: human creativity. It is our current state of know-how that determines how scarce something is. Give a 1970s muscle car to 1 billion Indian drivers and oil will become scarce fast. But if you give them Priuses, it’s a different story. Scarcity is relative. And the mere act of perceiving scarcity changes the game. Great designers understand this. Charles Eames says design is all about innovating around constraints. And it’s the constraints – the scarcity – that fires the designer’s creativity. Smart business people “get it” too. Amazon founder Jeff Bezos embraces self-imposed scarcity saying, “One of the only ways to get out of a tight box is to invent your way out.” These guys are bright and talented, but as is often the case, our best scarcity tutor is Mother Nature herself. Nature is the ultimate example of leveraging the power of self-imposed constraints. Just look outside your window. Amazingly, 95 percent of every living thing you see is made out of just four elements: carbon, hydrogen, oxygen and nitrogen. Out of the 90 plus naturally-occurring elements in the periodic table, nature constrained herself to just four in manufacturing the living world. Most importantly, scarcity of design options has not limited nature’s creativity. There are tens of millions of diverse species and even more miraculous functions. Just think of the super computer banging around in your skull or abalone nacre, a substance that humbles our best high-tech ceramics. And nature builds all these wonders, not by tapping into the intense heats and pressures possible with fossil fuels, but from the free rain of renewable energy of the sky. Nature can do this because of eons of innovating under (self-imposed) scarcity. The result is a tremendous store of know-how encoded into the DNA of living things. Now to be fair, nature has had over 3 billion years to experiment. But remember, nature experiments randomly, subjecting haphazard mutations to the forces of natural selection. If the mutation makes a critter more fit, then the knowledge is conserved in DNA and added to nature’s patrimony of know how. If not, it’s deleted. This fact gives us an innovative advantage. Unlike nature, we can be purposeful in our design decisions, not random. Given the right signals, that is the right constraints, we can innovate ourselves out of scarcity problems. As my WEF Panel colleagues rightly point out, however, it does take some time. Proactive policy that corrects externalities and market failures before a crisis point is reached is needed. But business and government leaders should not fear constraints. Given the right signals innovative designers, engineers and entrepreneurs can get us out of the box. Cross-posted from Forbes

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Heba el Habashy and Charles LaCalle: The Next Big Thing Is Up and Coming: Demanding Emerging Fashion

August 23, 2010

As we look around us, it appears that there is a youth frenzy in every creative industry. From music to art to fashion, people are going crazy for everything indie. Retailers like Urban Outfitters are taking their cues from young designers, and the young populations of urban cities are looking to be outfitted by fresh and exciting brands. Yet, beyond the simple intuition of its presence, it is hard to determine the actual market size that exists to support emerging designers. After speaking to analysts, venture capitalists, and consultants about this demand, it quickly became evident that actual data and sales figures were nearly impossible to find.The luxury industry is notoriously hazy in presenting earnings. Even large public companies like LVMH show earnings in such a way that only exposes the revenue generated by the company as a whole rather than by its individual brands. Another issue is that on the surface many designers appear to be doing well, with spreads in fashion magazines and constant coverage on blogs. But for a designer to break into a profit generating cycle and really “do well,” the designer must expertly manage his or her brand’s growth while juggling cash flow issues and a very pesky fashion calendar. Since it is difficult to directly discern the success of emerging fashion labels, we decided to look to other factors in order to put evidence behind what we felt was a growing trend of consumers becoming comfortable with buying the work of new designers. The first trend we noticed was brand exhaustion with regard to the majors in the fashion industry. Companies like Louis Vuitton, Gucci, and Prada are backed by eponymous corporate entities that provide distribution outlets, large advertising budgets, and a worldwide presence with flagships in the largest luxury-consuming countries. The consumers that these brands rely on for the bulk of their revenue are aspirational shoppers who typically come from lower income brackets. AdWeek conducted a study in 2009 and found that as the economy worsened, about 77% of these customers came to realize that luxury brands were less important. The study also proved that, the rise of discount shopping for the masses through sites like Gilt Group and Haute Look has been disastrous to consumer’s mentality on luxury goods. As major luxury goods companies realize this change, sale sites will likely receive blowback from the brands. Already, Cartier is suing Haute Look for selling used Cartier products. Luxury houses may have begun to realize that the once innocuous practice of holding sample sales and flash sales can now be harmful to their brand. In the past, sample sales were held in empty spaces downtown and the customers were those who worked in fashion and could not afford full retail prices. As a result, these sales did not affect the brand’s target customers. This is no longer the case as most of the shoppers on the most famous sale site, Gilt Groupe, are high-income females. But how do emerging designers benefit from this? For the new designers who choose to sell through sites like Gilt, many receive their largest production orders from these sites even before the clothes are produced. Depending on the site, the designer will receive placement among top designers (Gilt) or lower level designers (Haute Look, Rue La La). This choice drastically affects their brand identity and is a factor in defining which boutiques will carry their clothes in the future. Designers who choose not to sell on these sites also benefit from the under-exposure of their collection. A growing number of fashion conscious consumers actively choose not to buy from sample sale sites because everyone knows what is being sold. A typical refrain at parties is “I love that shirt. I saw it on Gilt.” In a conversation with Lisa Weiss, owner of the New York boutique Début , she acknowledged this growing base of more educated consumers, “They know who’s new, who’s fresh. They read fashion blogs and learn about designers. They want something different.” Weiss is tapping into the growing demand for “the different” with her boutique, a gallery-like space featuring a select group of hard to find up and coming designers from all over the world. Department stores are experiencing this trend as well. A director at Harrod’s recently told WWD, “The whole trend we are seeing – from fashion through to beauty – is anti-mass, anti-faux, anti-bling. What customers are looking for is heritage, provenance – and embellishment.” Since consumers are increasingly aware of luxury goods companies’ mass production methods and deceiving advertising campaigns, they are turning to emerging designers for products that are produced on a smaller scale – products that tell a story. Click here for Part Two

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Heba el Habashy and Charles Lacalle: The Next Big Thing Is Up and Coming: Cultivating Emerging Designers From London to NY

July 23, 2010

The contours of an emerging fashion designer’s life can vary dramatically based on his location relative to the Atlantic. Europe has a long tradition of supporting fashion design as an art as well as an industry. One European capital in particular stands out: “The opportunities are so good that we would pack up and move to London in a heartbeat to receive some of the services they offer,” the CEO of one emerging label recently told The Cultivate . Americans tend to view fashion as more of a utilitarian concept than an art form. The sad consequence is that support of up and coming designers does not prevail even in urban cities like New York, where deserving talent is begging for support. Emerging European designers are much more likely to be supported by Ministries of Culture who have large budgets available to spend on assisting emerging talent in their respective countries. For instance, the French Association pour le Développement des Arts de la Mode (ANDAM) was founded under the French Ministry of Culture and is now supported by large companies like LVMH. ANDAM celebrates design capability, unique vision, and refined construction. Since its foundation in 1989, designers like Martin Margiela, Gareth Pugh, Viktor & Rolf, Christophe Lamaire, and Jeremy Scott are all past recipients of the prize which includes £220,000, a slew of industry resources, and exposure to international press. What all of these designers had in common when they received the prize was not their potential to reach a mass market, rather it was their ability to produce products that people aspired to own while still putting forth a vision that expanded the community’s notions of what fashion is and what it could be. The support has allowed designers to remain outside of the mainstream, producing collections that while not always wearable , are certainly innovative and disruptive. Somewhat surprisingly, the prize has been awarded to a large number of British designers, as Britain has become a wellspring of emerging talent over the past few years. However, there is no shortage of institutions dedicated to emerging fashion designers in the country. Britain shows its support through avenues such as the BFC/Vogue Designer Fashion Fund, the New Gen Award, the BFC/ELLE Talent Launch Pad, and the Dorchester Collection Fashion Prize. The BFC held a presentation in New York for its emerging designers. The London Development Agency invested £4.2 million to support emerging designers and London fashion week. Yet perhaps the most important emerging talent institution in London is the Center for Fashion Enterprise ( CFE ), supported by the London Development Agency and the European Regional Development Fund. The CFE provides subsidies, business coaching, studio space, and other perks such as PR and business software to emerging designers. Each designer’s program is specifically catered to the designer’s ambitions and growth strategy. We spoke with the business team behind New York based designer Frank Tell recently about this issue. “It’s not the American way to subsidize business in any sort of way, but this is more of an investment than a subsidy,” explained Hector Meza, the business partner of Frank Tell. It is highly unlikely for the US government to take up the cause of emerging designers. Only about 13% of funding for the arts in the US comes from the government. Private investments make up the largest portion of the sum. Even though Americans donate approximately $13 billion to the arts each year, some degree of cognitive dissonance exists in Americans’ relation to fashion. Most Americans might say they consider fashion an art form, but they don’t consider giving to emerging design talent in the same way they would consider giving to a sculptor or a painter. Corporate sponsorship, the alternative to private support of emerging designers, has proven tendentious. Gen Art helped produce design talents such as Vena Cava and Phillip Lim in its early years, but it shut its doors in May after 16 years. The reason was largely because one of its main sponsors removed their support. In the past few years, it appeared that the organization was more concerned with maintaining its corporate sponsorships than with providing a platform for emerging designers. As its brand image and designer associations went downhill, Gen Art became less attractive to designers, editors and industry professionals. This caused its corporate support to dry up which ultimately resulted in its downfall. But still, Americans haven’t given up on their own designers: just as Gen Art began to sink, who but the cosmetics industry swooped in to offer the fashion industry its support. Last year, John Dempsey, Group President of Estée Lauder, teamed up with Mazdack Razzi, Founder and Creative Director of Milk Studios, to launch MAC & Milk . The MAC/Milk collaboration, the brainchild of MAC executive Jenne Lombardo, provides designers with free space and free resources such as hair, makeup, lighting, and casting to produce a full show–all while keeping public attention focused on the design talent. “Its very funny that people whose main business is not selling clothes are the ones who are spearheading the movement of helping out emerging designers,” Meza said. The other beacon of hope for emerging design in America is the CFDA. The CFDA/Vogue Fashion Fund grants $200,000 and mentorship opportunities to one fashion designer per year. It has had a large impact on launching designer successes such as Alexander Wang, Zac Posen, and Proenza Schouler. In addition, the CFDA/NYEDC fashion incubator space provides subsidized space and business development assistance to twelve emerging designers over the course of two years. While these programs should be lauded, more is needed. Emerging design in America falls short of its full potential because of a lack of support from private sources. Several New York boutiques focusing on emerging talent have developed cult followings in the last half-decade, and are now slowly beginning to expand to the West Coast as their market of sophisticated consumers multiplies. Demand will only continue to grow as consumers face brand exhaustion from overexposed luxury conglomerates. Investment in emerging designers is a smarter decision now than it has been at any other time in modern history. After praising London to us, the CEO of the previously mentioned emerging design label took a pause and qualified herself: “But, New York is still New York.” New York will always have something that other cities cannot offer. Showing in NY fashion week and being part of the NY market provides vast exposure and a wide variety of commercial opportunities to designers. New York’s, fast-paced flow of ideas allows designers to be at the center of a constantly evolving cultural universe. The challenge in New York is not finding the money to support designers. The harder issue to solve is changing the preconceived notions of people who regard fashion in only a utilitarian light. Perhaps that is largely what American fashion has been in the past, but the American consumer is becoming more sophisticated. Understanding that fashion is indeed an art form will be critical in meeting the demands of this growing consumer base. “What the recession is showing us is that people are not buying what is safe but rather something special,” states Meza. Private investors, take note. The Cultivate is currently working with private investors interested in creating an investment vehicle for emerging designers to get to market. The Cultivate is a team of artists, designers, and entrepreneurs working towards the dissemination of emerging fashion designers. When the age of mechanical reproduction separated art from its basis in cult, the semblance of its autonomy disappeared forever. The Cultivate is a movement that will restore this autonomy. Heba el Habashy and Charles LaCalle will be writing a series for the Huffington Post that will track their journey as they aim to capture the difficulties and rewards of building a business within the fashion industry. They are preparing to launch their company in Spring 2011.

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Liz Ryan: Help Me Write a Great Resume Bullet!

June 29, 2010

Dear Liz, I’ve never liked “puffing myself up” and always hated resumes for that reason. How can I say I’m an expert at anything when there’s always so much to learn (especially in my field)? Thanks, Maggie Dear Maggie, The good news is that we don’t have to puff ourselves up in a resume. We can tell stories. The story lets the reader know what we’ve done and lets him or her decide whether we’re a good fit. When we focus on the stories, we don’t need to stand back and praise ourselves. Stories also get across our abilities much more powerfully than our suspect self-assessments do. “I negotiated a $50K discount in our $175K annual office-supplies order” is a gazillion times stronger than “Strong negotiating skills.” We tend to believe the first person because s/he’s specific. About the second person, we may think “Well, I’m glad you’re impressed with your own negotiating skills.” Take care, Liz Dear Liz, The storytelling part is the tough part for me. But I’m doing my best. I never thought of asking the money I saved my employers and/or clients, and now of course it’s too late. Wish I’d done that. Hmm… Thanks, Maggie Dear Maggie, It’s not too late to tell stories about our past jobs, or figure out what we saved employers or clients in the past. You don’t need to know the exact dollar savings or the revenue your employers realized from your work. We can extrapolate. As long as we could make a reasonable case for the calculation that gave us the number on our resume (if asked – and that’s not likely) we are good to go. Here’s a way to think about that economic value: remember the pain that got your employer to give you a certain assignment in the first place. What was wrong? Now imagine what that problem was costing the employer in lost sales or added expense, per month. Post another question if you’re not sure how to get those numbers. Best, Liz Dear Liz, Ok, here’s a real world example: 15+ years ago I was the admin assistant at a hospital. One of the nurses noticed my design skills, and asked me to redesign one of the hospitals business forms. So I did, and found it fun. She was part of the Business Forms Committee, at the time, and after that form I became the designer for the committee. I can’t remember how many business forms I designed, and redesigned, but it became a hospital-wide project. At one point, the Print Room called me asking how I was designing the business forms, and if I was using the software they were using. I told him I was designing the forms in Microsoft Word (and Excel when necessary). He wasn’t too happy about that, and a few months later, it was understandable why. The hospital no longer needed the Print Room, and software for designing business forms. They were also able to cut the team that only handled this area. I haven’t a clue how much money I saved the hospital. By designing the forms in Word and Excel, each department was able to print the forms when necessary and no longer had to wait for them to be printed downstairs. Thanks, Maggie Dear Maggie, Great example! That’s tremendous. You saved the hospital at least $100k/year in print room expenses by pioneering desktop publishing. The fact that you sort of fell into it is a wonderful part of the story. (I feel sorry for the guy, but if he had been a bit more up on what’s going on in the content world he would have been better prepared.) Your resume bullet might look like this (it’ll depend on what title you had there, and what sorts of jobs you’re looking for now): – I designed one business form in Word, leading to the assignment to re-design forms across the hospital and ultimately, move all business form design to the desktop, saving $100K+/year Extrapolating the numbers (savings, in this case) is the easy part. You’ve already done the harder part, recalling the stories. We’re so trained to say “I answered calls, I went to meetings” that it’s easy for us to forget killer stories like yours! Way to go, Maggie! Liz p.s. My online courses “Put a Human Voice in Your Resume” and “Build Your Personal Brand” kick off this week. There’s more info here.

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Robert F. Brands: Innovation Gone Too Far? — The Toyota Recall

March 5, 2010

By Robert F. Brands with Jeff Zbar Once upon a time, to start your Toyota Camry, you placed a key in the ignition and turned until the electrical connection was made and the engine started. To accelerate, you pressed the gas pedal, which pulled a cable attached to a mechanical throttle. Assuming the shift had been manually placed into gear — the car moved. Today, electronics and computers have replaced many of the mechanical parts that once made cars move. To start many cars or place them in gear, buttons are pushed. To accelerate, the gas pedal is connected not to a cable, but to a computer — via electronic circuitry. In light of Toyota’s massive recall of 10 million Camry, Tercel, Prius hybrid and luxury Lexus models (and that’s a shortened list), one has to wonder: At what point does innovation encourage failure? In other words, has Toyota gone too far? In the interest of fairness, these issues potentially affect any modern automobile. Already, GM is facing recalls related to steering. The costs — in terms of finances and consumer confidence — can be great. As Toyota mechanics are correcting millions of cars and consumer confidence lags, rival automakers have reported double-digit sales growth. But the question of innovation for innovation’s sake — or for the sake of “technological evolution” — begs to be asked. Sure, innovation of the vehicle and the way it’s manufactured cuts costs, including labor and benefits. We continually innovate to cost reduce. But now, cars don’t just turn on with the turn of a key. And when they don’t roar to life as expected, the corner mechanic must be trained not only in auto repair, but in computers technology (assuming he or she owns the equipment). This reminds me of a story. It was the 1970s. Two adventurers once were traveling by pick-up truck in northern Mexico when their vehicle broke down. The local mechanic took a look under the hood, grabbed a coffee can of old parts, and fashioned a fix. How does this all relate to the innovation imperatives? In Robert’s Rules of Innovation , it mentions two key imperatives that seem to have gone awry here. First, Toyota sought the imperative of value creation in pursuit of innovation. Yet any value created through their innovation-gone-awry is more than lost through the recall and labor costs and lost sales and good will. Second, who has been held accountable? After first declining to do so, Toyota President Akio Toyoda made a very public appearance on Capitol Hill. He apologized and promised to “do everything in my power” to ensure the malfunctions and tragedies don’t happen again. Do Americans buy it? Can Toyota afford to wait and wonder? To that end, the complexity of the conundrum facing Toyota at one point was belied by the simplicity of their first apparent fix. After spending days in conference over how to remedy the stuck throttle, high-paid engineers came up with a simple solution: Shorten the gas pedal. To be sure, in the end, the issues facing the automaker were far more complex than nipping an inch off a too-long pedal. But could the issues have been remedied in the designer’s or accountant’s office years ago — when the company believed innovation would save money? We — and Toyota — may never know. But we’ve learned that innovation poorly planned can have the greatest expectations, but the worst outcomes. © 2010 Robert F. Brands with Jeff Zbar. Robert F. Brands is the author of Robert’s Rules of Innovation: A 10-Step Program for Corporate Survival

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Chef Boulud Samples Deer Loin, Chats With Rivals in London: Richard Vines

February 2, 2010

By Richard Vines Feb. 2 (Bloomberg) — Daniel Boulud slices into the loin of sika deer baked in hay with root vegetables and chocolate malt. “This guy can really cook,” says the French chef, whose New York establishments include Daniel and DB Bistro Moderne and whose dining empire stretches from Las Vegas to Beijing. “It’s very personal cooking. You can see the chef is inspired.” It’s after 10 p.m. on Sunday and we’re in the Ledbury, the west London restaurant of Australian chef Brett Graham . Boulud has flown in hours earlier. He’s accompanied by the designer Adam Tihany . The two men are in the U.K. before the opening of Bar Boulud at the Mandarin Oriental Hyde Park later this year. Boulud, 54, and Tihany both enjoy worldwide success. Tihany’s credits include Daniel and Le Cirque in New York, Amber in Hong Kong and the One & Only hotel in Cape Town. Neither is underestimating the challenge of opening an eatery in London. “There’s a lot of trepidation for Americans coming to London,” says Tihany, 62, who was born in Transylvania, raised in Israel and moved to the U.S. in 1975. “It’s tough and scary. It’s a shame but it feels people are rooting for you to fail and the bigger you are, the louder the crash.” Blumenthal’s Venture Tihany is designing both Bar Boulud and Heston Blumenthal’s first London restaurant, also at the Mandarin. He has been to visit Blumenthal’s flagship establishment the Fat Duck at Bray, and the chef’s pub, the Hinds Head, just along the street in the same village, about an hour west of London. “Heston’s new place will be a modern British brasserie and will look like a contemporary version of the Hinds Head, with a lot of Heston’s humor,” Tihany says. The evening with Tihany, Boulud and Boulud’s operations director, Michael Lawrence, starts at the bar at the Mandarin, where Tihany orders a glass of Springbank malt whisky. We make a quick tour of Soho, including stopping off for cocktails at Hix and at Bob Bob Ricard before heading west to the Ledbury. Bar Boulud is scheduled to open on May 15 with a French menu that will include terrines and pates made under the direction of Gilles Verot, known for his charcuterie in Paris. The wine list will focus on Burgundy and the Rhone Valley. The venue will occupy a ground-level function space at the front of the hotel that is currently unused. Work will start on Blumenthal’s restaurant — replacing Foliage and the Park Terrace — once Bar Boulud is up and running. Who’s Hot? Chef Boulud is relaxed and almost boyish as he looks around the city that will soon be home to one of his restaurants. He questions the mixologist at Hix, poses for pictures at Bob Bob Ricard and photographs the dishes at the Ledbury, where he visits the kitchen, chats to the staffers and spends time with Graham discussing his cooking, his dishes and his menu. It’s about midnight when we leave. Boulud, who won his third Michelin star in October, looks fresh for someone who has just flown in from New York. Even as he leaves the restaurant, he wants to chat about who are the hot chefs in London and who he should invite to a dinner he plans to host just before he opens his venue to the public. Many things help make a good restaurant: great food and design among them. Charm and energy help, too. At the end of an evening with Boulud and Tihany, it’s tempting to think they have a full house. Cue the sound of critical knives being sharpened. ( Richard Vines is the chief food critic for Bloomberg News. Opinions expressed are his own.) To contact the writer on the story: Richard Vines in London at rvines@bloomberg.net .

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Frugal U.S. Travelers Skip $500 a Night Hotels for Cheap Boutique Lodging

November 24, 2009

By Nadja Brandt Nov. 24 (Bloomberg) — The world’s largest hotel companies, stung by the industry’s biggest declines since the Great Depression, are trying to do for lodging what Ikea did for furniture: Offer fashionable products at low prices. Starwood Hotels & Resorts Worldwide Inc. , the third- biggest U.S. lodging company, is developing boutique hotels for frugal travelers that cost about $119 a night. That’s a far cry from the $399 to $639 at the company’s upscale W Hotels. InterContinental Hotels Group Plc is following a similar strategy with its boutique chain Hotel Indigo. Both companies are seeking to capitalize on a formula popularized in the 1980s, when small, individual properties with luxury amenities, designer interiors and quirky decor gained in popularity among travelers. This time, the demand for affordable, fashionable lodging was fueled by a global recession that left many people unable or unwilling to spend as much on vacations. “You mix the luxury elements into the lower-priced product and it’s fair to presume that what’s more value-driven is faring much better during the downturn and beyond,” said David Katz , an analyst at Oppenheimer & Co. in New York. The top four U.S. hotel companies reported revenue declines of 16 percent to 22 percent for the first nine months after rising unemployment dented consumer spending. Room rates will probably fall in 2010 for the second straight year as hotel owners offer discounts to lure customers, according to PricewaterhouseCoopers LLP. Spending Backlash Hotel operators are also battling a drop in business travel as companies try to save money. There has been a backlash against lavish spending by banks, insurers and carmakers that were given government financial assistance, discouraging them from using expensive hotels for conferences and conventions. The chains are designed for travelers who want a unique hotel experience without spending $500 a night. Starwood’s W Hotels, a boutique chain started in the late 1990s, are equipped with 400-thread count organic cotton Percale duvet covers by Swedish designer Anki Spets. The beds also have feather pillow-topped mattresses and leather headboards. Some lobbies are furnished with Philippe Starck pieces, such as Louis XV-style chairs that sell for $410 at the hotel’s store. At Starwood’s Aloft chain, the company’s limited-service boutique brand, things are more Spartan. In Rancho Cucamonga, California, the Aloft is contemporary without the designer labels. Bedding is 200-thread count and only a handful of managers maintain the property. A dozen or more service W locations, according to Kimberly Ervin, director of sales. Empty Refrigerators Instead of being stocked with expensive wines and spirits, the small refrigerators in each Aloft room are empty. The showers have shampoo and shower gel dispensers attached to the wall. Headboards are made of cork while a cowhide print, rather than the actual hide, graces the wall. The public spaces exude cool. Modern alternative pop echoes through the 3,500 square-foot (325 square-meter) lobby. The music can even be heard under water in the outdoor pool. The Aloft in Rancho Cucamonga offered rooms as low as $99 a night this week, according to the chain’s Web site. “The demand for alternatives to the sameness of chain hotels has been growing and will continue to grow,” said Marc Gordon , president of Morgans Hotel Group Co . “Limited-service boutiques speak to an increasing part of the population that prefer alternative hotels to large chain hotels.” Lobby Swing Those people may prefer to stay in stylish, quirky hotels without paying top prices, Gordon said. The Morgans’s namesake boutique hotel on Madison Avenue boasts an elegant lobby with armchairs and tables by 1930s designer Jean-Michel Frank. The lobby at its Mondrian hotel on Sunset Boulevard in West Hollywood features a swing. A standard room there for a mid-week stay was advertised at $275 a night, according to the Mondrian’s Web site. Average daily room rates at boutique hotels dropped 22 percent in January through September compared with a 9.1 percent decline across all U.S. hotel segments, according to Hendersonville, Tennessee-based Smith Travel Research . “Many of us have gotten used to staying at something more socially oriented, with a hip atmosphere and hip food and drink places,” said Oppenheimer’s Katz . “But what we are in the midst of is a re-pricing of hotel product.” Oversupply A lack of financing forced Starwood to cut its original goal of starting 500 Aloft hotels by 2012. The White Plains, New York-based company still expects to open 40 outlets by the end of this year and another 11 next year, including three in India, according to Brian McGuinness, senior vice president of specialty select brands. At IHG’s budget boutique chain, Hotel Indigo, rooms feature dark hardwood floors and tall beds loaded with decorative pillows. There are currently 34 hotels in operation and as many as 15 will be added in 2010, according to Janis Cannon , vice president of global brand management for Indigo. Prices at some of the properties range from $69 to $204 a night, according to the Hotel Indigo Web site. The increasing number of boutique hotels may swamp the market. Marriott International Inc. is working on its own full- service boutique chain, named Edition, and plans to open the first two in Waikiki, Hawaii, and Istanbul next year, according to Don Semmler, executive vice-president of brand management. More Brands “There’s a huge eruption of boutique brands,” said David Loeb , an analyst at Robert W. Baird & Co. “True luxury boutique hotels with impeccable service will come out as the winners, while those that look like luxury boutique hotels but are staffed with young, hip 20-something year-olds who are dressed in black and are indifferent to customers won’t.” Aloft plans to expand from suburban into urban markets and will open two hotels in New York City in 2010. Some may develop by taking over hotels in financial distress, Starwood’s McGuinness said. IHG aims to increase the number of Indigo hotels to 600, according to Cannon. “We’ve seen a democratization of design with Ikea, Pottery Barn, and Crate & Barrel,” McGuinness said. “Gen Y is the big story. Design is something they have been introduced to early on at relatively lower price points.” To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net .

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`Davos of Wine’ Links John Wayne Jokes, Vintners, Physicists: Elin McCoy

November 11, 2009

Review by Elin McCoy Nov. 11 (Bloomberg) — Piemontese winemaker Angelo Gaja paced back and forth, his hand stuffed in the pocket of his Brioni suit, as he addressed about 200 attendees for the first World Wine Symposium , dubbed the “Davos of Wine.” “Cabernet is like John Wayne ,’’ Gaja said, poking fun at the influence of rich fruity wines from the New World during the past 30 years. A giant image of the actor in a cowboy hat filled a screen. “It’s good-looking, friendly and has a large smile,’’ Gaja said, grinning. Then he clicked to a photo of film legend Marcello Mastroianni , whom he compared to more subtle and sophisticated nebbiolo, the grape of his own much-praised Barbarescos. This Davos entailed two packed days of seminars at the luxurious Villa d’Este hotel on Lake Como, Italy, with translation into three languages and welcome espresso breaks. Gaja also fulminated against European anti-alcohol campaigns. “Producers must take a position. We must insist on a distinction between spirits and wine,” he said. Other speakers highlighted current economic, political and social issues in the world of fine wine and sparked heated discussions. Attendees from 24 countries included top international winemakers – such as Piero Antinori , Pablo Alvarez of Vega Sicilia , Germany’s Egon Muller — as well as wine investment fund managers, physicists, a representative of the French Ministry of Agriculture, the Japanese ambassador to Australia, and even an opera singer. Wine Think Tank “Yabba dabba doo,’’ organizer Francois Mauss called out at the opening-night dinner, grabbing everyone’s attention. Trained in economics and diplomacy, French-born Mauss founded the Grand Jury Europeen , a fine-wine judging association, in 1996. For three years he has had the dream of creating a global wine think tank. “‘Davos of wine’ is not really the right term for this event,’’ he told me, “but people know what it means. Not only the economic sector needs an idea exchange.’’ As for the venue, forget a glitzy Alpine retreat. It’s much better to network and clink glasses at the sybaritic 16th- century Villa d’Este. Since it became a hotel in 1873, its palatial rooms, Venetian glass chandeliers and panoramic lake views have welcomed everyone from King Leopold of Belgium to Woody Allen . No Breakfast Wine Naturally, the wine and food were stellar. Tastings of 30 to 40 wines preceded every meal but breakfast. Michelin- and Gault-Millau-starred chefs from Italy, Austria and Croatia tantalized with a mix of the classic and the experimental, although not all dishes won acclaim from the sophisticated diners. The main course at a lunch featuring Croatian wines (who knew some were so good?) created by chef Sonja Peric of restaurant-hotel Valsabbion in Istria were black and green squares of mashed sardine accompanied by sauces in shiny toothpaste-style tubes. Struggling to open one, a guest squirted its contents on his designer suit. I was happier with the starter at the first night’s welcome dinner — a creamy egg in a glass cocotte covered with shaved white truffles and presented in a wooden box, a signature dish of Piemonte restaurant La Ciau del Tornavento. Star dinner wines included plush, 2006 Luciano Sandrone Barbera d’Alba ($35) and hyper-elegant Gaja Sori Tildin ($300). ‘Intelligence Hour’ Mauss had orchestrated a few surprises, like the “pure intelligence hour’’ with French physicist Etienne Klein, who explained how to test the age of a wine without opening the bottle by using gamma rays to measure a radioactive isotope in the wine. Obvious application: identifying wine fraud. On day two, Jean-Robert Pitte , former president of the Sorbonne, picked up the neo-prohibition theme in a talk about wine’s history as a cultural beverage. “Wine is not a sin,’’ he intoned. “It’s a cultural value that has created happiness for a thousand years. We must say, wine is good.’’ Jacques Berthomeau, a controleur general of the French Ministry of Agriculture, pointed out that ministries of health, intent on curbing alcoholism, have turned the younger generation away from wine by condemning it as harmful. Spanish journalist Victor de la Serna cited a 40 percent consumption drop in Spain in the past five years. The European Union subsidizes consumption of wine in the rest of the world, but doesn’t promote it in the EU. To my surprise, the wine industry in Europe has no coordinated lobby against all this. “We’re watching the erosion of our cultural heritage in one generation,’’ bemoaned Bernard Hervet, the managing director of Burgundy negociant Faiveley. Personally, I liked Pitte’s suggestion: wine-tasting clubs for those 17 to 19 as a “vaccination against alcoholism.’’ That could recruit a few new consumers, too. ( Elin McCoy writes on wine and spirits for Bloomberg News. The opinions expressed are her own.) To contact the writer of the story: Elin McCoy at elinmccoy@gmail.com .

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Tom Matlack: Wining the War at Home

July 22, 2009

Rogers preparing to drop into Iraq Like Baghdad, if you look hard enough in Detroit you can still see the vestiges of opulence.

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