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Second day was a full day packed with provocative speeches and hot taboo topics.
Let’s start with John Maeda, the President of Rhose Island School of Design (RISD).
Design Education
 John Maeda, President of RISD Here is what John said:
Design + Art
= Creating solutions to meaningfully asked questions
Technology + Business
= Using new possibilities for customers
Design + Technology + Business
= Using new possibilities to create solutions for customers
Design + Art + Technology + Business
= Using new possibilities to create solutions to meaningfully asked questions for customers
All the discussion about “design thinking”, designers solving complex problems, designers role in corporations, got me thinking about the definition of design. How do we raise design awareness and the standards of design to the level where designers are treated as true professionals and as equals to other professionals like engineers, programmers, lawyers and doctors?
Maybe designers can’t be treated seriously because there are no standards to define our profession. Should there be standards? And what are those standards? And who determines them? Maybe there is a need for legislation similar to the interior design or architecture profession. If we have such high regards for design and expect designers to “change” the world and designers are the “catalysts” for innovation, then treat us with respect, dignity and as equals.
Continue reading “DMI Conf. Day 2 Recap: Design Education, Empathy, Sustainability, Sex & Sensibility, Health & Coding.” →
I am a HUGE fan of Virgin. I love Richard Branson. His no nonsense yet playful gutsy approach to business has always inspired me to be true to myself, regardless of all the distracting forces of conformity on how businesses should be run.
 Joe Ferry, Head of Design, Virgin Atlantic. Image courtesy of DMI. To see how the creative team of Virgin Atlantic led by Joe Ferry, use design to differentiate the Virgin brand and placed the company as one of the most innovative airline company in the world, is simply remarkable. With a bit of humor and play, the design team carried their brand vision from print to the interiors of the plane, their clubhouses, all the way through their TV commercials, without ever compromising the details, quality and experience of the brand.(Check out this Q&A with Joe Ferry from WallPaper* Magazine)
 An in-cabin shot of Ferry's crowning glory, the Virgin Upper Class deck. Image from WallPaper*.
 Generation G. Courtesy of TrendWatching.com With the urge for transparency, gift economy, social networking 3.0, green business, Generation G is one more term I have to investigate and understand. I was just at a conference recently, trying to explain The Millennial Generation, and now Gen G!
Trendwatching.com has an amazing article on Generation G, that I’d love for you guys to check out here. And for those of you who are still not sure who The Millennials are, check out the Millennial Generation blog.
 Yogurtland Yes. I know. Another yogurt place. We’ve seen too many of these little yogurt shops sprouting at every other block. I must confess – I was not a big yogurt fan. I had way too many excuses; lactose intolerant and I simply didn’t believe in this ridiculous “non-fat” dessert. If I wanted dessert, I wanted to have REAL dessert. But this one, I think is simply AWESOME. Yogurtland is clearly a WINNER. First they offer HUGE selection. Second, I get to chose and do it myself! And third, the toppings! And of course lastly, IT’S GOOD AND CHEAP!! Yup!! 30cents an ounce! I walked away with 2 HUGE cups for less than $4.
You go in, pick up a empty cup, choose from 15 flavors, (my favorites are cookies n’ cream and mango), fill up to however much you want, and walk over to the toppings counter, top with your favorite kit kat crumbles or fruits, weigh and VOILA. DONE. NO hassle of waiting in line. No repeating what you want to annoying staff behind the counter, no wondering if you are getting what you paid for. It’s simple. You even get to sample all flavors before making your selection.
Talk about offering your customers a WIDE selection to chose from and lowering the cost of overhead by hiring less cashiers or staff to attend to those yogurt machines. I admire their business plan and their competitive edge. Let’s see how long they keep their pricing at 30 cents/oz.
I simply LOVE this self-serve yogurt place. No fuss, just pure yummies.
With Apple pulling out of Macworld and the increasing decline of attendance from both visitors and exhibitors, is this the beginning of an end to trade shows? Or could it simply be that the tried-and-true formula of trade shows for businesses is no longer viable?
I remember drooling over the 1999 SEGD award winning 45,000 sq. ft. Sony Playstation booth design by Mauk Design for the E3 event. The design I believe is still one of the best even 10 years later. It was groundbreaking, impactful, surprising, and delivered the message that Sony was its industry’s most innovative company.
Now, what about E3 today? To those that are unaware of E3, it used to be the ultimate video game conference. Think of it like the Saloni Milano for furniture industry or the Mercedez-Benz Fashion Week for the fashion industry. Gaming companies used to spend a ton, to debut titles, creating the most exciting buzz while gamers walk the floor with gleeful eyes, fighting to test out the latest games. Well for those who have attended the past few E3’s, most will say that they are highly disappointed and that the show is dying; with nothing innovative, nothing surprising, nothing new.
Don’t get me wrong. I love attending trade shows and have nothing against trade shows. We’ve made wonderful partnerships with clients, fans and peers through trade shows. In the last few years, my company has been fortunate to do as many as 8 shows per year; some local and some international. I’ve enjoyed them all. Some were worth the investment and time, and some were just disappointing misses. Certain shows still have the pizzazz, attracting record-breaking visitors and exhibitors alike. But most shows are your same old “trade show”. Of course, show management will always try to convince or sell you that they are “THE” show to do. After all it’s a business. But despite economic down turn and low turn outs, booth fees keep increasing and now range from $40.00- $70.00 per sq.ft!!
Now with the recent Apple stunt, I have to pause for a moment and try to understand why. Maybe trade shows are NOT dying, but the way in which business is done today has changed. And the conventional ways of doing business no longer apply. With Web 2.0, most new product announcements are now done on the Internet/ blogs. With consumers increasing their demands on transparencies, buyers are now forced to do their research in advance way before attending a show and may not even attend because of that.
Either way, the most important thing is to accept the fact that time has changed. The conventional trade show formula may have worked for many businesses 10 or 20 years ago but main street has evolved. There is no one right method, but without exploring new ideas we may fall behind times in tackling the ever changing demanding consumers.
 The Brand Bubble It all started with a leisurely afternoon reading of my favorite magazines; FORTUNE. Flipping through the pages, reading about businesses, ventures, fashion moguls, hedge fund gurus, and then suddenly, this September 1st 2008 issue on page 75 got me, how do I put it… “disturbed”.
It was an article on Prada. It talked about how Prada unlike many fashion labels, is still very much family owned, and that it desperately needed to go publicly listed in order to compete, expand and pay down debt. Here I go reading how this company’s net profit had risen 66% to $187 million in 2007, sales had grown 17% to $2.5 billion, and how it is worth billions. Then suddenly, on the last page of this long 5-page article, it stated that the Prada family is responsible for the $956 million debt – mostly accrued through numerous failed acquisition sprees…
Now, as a consumer and an entrepreneur, I started asking myself, how does this work? How can a company be in this much debt, still have increasing net profits, but need to go publicly listed to get money from investors to pay off debt and expand? Am I missing something?
Then off I go, embarking on this mission, picking the brains of every MBA person I meet, colleagues, engineers, entrepreneurs, and still no one really knows how to explain this to me. Most answers I got were that “Prada is a BRAND”, or “It’s called goodwill Mel.”
But with the whole Wall Street melt-down alongside failed CMBS (commercial mortgage-backed securities), it made me question if the same “model” or “rule” had been applied there as well? Making us believe that something is worth MORE than it actually is? Where stock prices are driven high based on intangible values and future earnings based on these “fake” securities and “assets”.
Then, one smart creative VP, told me about this book called “The Brand Bubble”, by John Gerzema and Ed Lebar. (I knew somehow, someone out there would be able to point me to the right direction!!)
Within the first chapter, it had answered most of my questions, about branding, intangible values, future earnings. I do not wish to give away the content of the book, and I highly recommend this to anyone building a business or helping others in branding & marketing. This book basically explains how brands that are built on trust, reassurance and simplification of choice are no longer positioned for long-term success.
The Brand Bubble is a must read. Also check out their wonderful blog.
 We are proud to be part of TOKYO FM’s newly launched eco-shop site. All of our Japanese fans can read about our special write-up and purchase our products here.
A fan wrote in asking what is the expected lead time when buyers place orders at trade shows. Our answer is that it depends on what type of products and the logistics of your fulfillment; if your products are Build-to-order (BTO) or Make-to-order (MTO), or if you already have a warehouse of stocked products ready to ship. To find out more wikipedia has a great description on order fulfillment.
We also understand that the gift industry is very different from the fashion industry. At gift shows, most products are EVERYDAY products. Which means, retailers would generally want them in 2 weeks. If you sell seasonal products, ie, holiday items, some would say deliver 2 months before the holiday season starts. That allows you more time to accumulate your orders. Nonetheless, retailers would sometimes wait up to 6 weeks especially after a trade show knowing that most vendors will be extremely busy stocking and shipping orders. Anything longer than 6 weeks, we find that retailers may forget that they have even placed an order!
If your products are MTO, you will have more time to produce them since retailers know they are getting limited edition, unique items, customized for them. If your products are stocked, be prepared to ship immediately. Nonetheless, most retailers have their own ship dates and cancel dates. If you cannot meet their requirements most will reject your shipment even if it’s only a day late!
As for the fashion industry, we are not too familiar, since it’s not our field, but from trade shows we’ve attended and friends that we know, we believe they usually sell 2-3 seasons ahead. Vendors take orders based on scheduled deadlines set by their own factories. They will tell retailers that all orders have to be placed by a certain date if not they won’t be able to get the collection at all. This way the designer can give the factory a set number of pieces to produce. They also advise retailers of the approximate delivery dates. It all depends on how strict the vendors are with their own factories. In addition, since most clothing factories are based overseas, there are a lot of quality control issues, import and export regulations that usually result in longer lead time.
Before you continue reading this article, let me warn you that Joe and I have a biased opinion on working with sales reps and agents. This is because we have worked with super amazing people and really unethical crappy people. So the experiences that we share here with you come from both sides.
Firstly, there are 2 types of reps. One is an independent rep, that goes door-to-door to get your sales. They usually cover a smaller area/region because, after all, it’s only ONE person. They usually do NOT do trade shows or have a showroom for that matter. They may once in a while throw a trunk show or exhibit at a trade show, if they have enough lines to contribute and cover their trade show expenses. Independent reps if you find good ones, are a really hardworking bunch. They travel consistently, actively calling buyers, chasing down clients for money for you, and all they get is a puny little commission, which we will talk about some more in a bit.
The other is a rep group. A rep group usually has around 15-40 reps working for them to cover larger territories, hence bringing in more clients when they have shows at their showroom. Their showrooms are usually at the Gift Mart in corresponding cities, i.e. The Market Center in SF, The LA Gift Mart in LA, The Chicago Mart, etc. Your line is showcased all year round. They will usually have shows at their showroom during the gift shows and sometimes they also participate in the gift show itself by having a booth to maximize their presence. Sometimes the independent reps belong to these larger rep groups.
Most of these reps are commission only basis. Which is great for startups with no resource to hire a sales team. If you have done a trade show before, you will probably have been approached by reps. Questions you should ask before deciding; how many lines do they carry? What kind of accounts do they have? Who are they carrying? What kind of shows do they do? If they have a showroom, how big is the showroom? How often do they have shows there? Do they attend and exhibit at gift shows as well? How many reps do they have? And ask for references! Call up some of their lines and see if they like them. The first rule of thumb is to join a rep that carries lines that are at par with your price points and your clientele. You want to be in good company.
And of course, the bottom line is what is their commission rate and how much will they be charging you for their showroom fees. And if they do participate in trade shows, how much is your participation fee? The gift industry rep commissions range from 15% – 20%, with fashion industry 10%. Showroom fees range from $50 per month up to $200 per month. That is in addition to the sales commission. Most reps do not get paid their commissions until you get paid by the buyer. Hence, some will go all out to be your debt collector when needed.
Now, here is the dilemma. You then ask yourself, can I afford to lose up to 20% off my wholesale pricing, and pay for showroom fees? (Read our article on how to price items.) SALES are #1 to any product/manufacturing business. Having sales reps is just one of your MANY sales strategies. Be it you doing trade shows on your own, hiring your own sales team, or having your family/ friends help you, or doing e-commerce. It may sound costly but you also have to weigh in that sometimes reps can get you into accounts that you may have missed at trade shows. Reps may follow up with stores more consistently than you can. They can get you the exposure you can’t achieve through trade shows or press.
And of course the downside of having reps would be you also having to pay them commissions on sales you bring in yourself. Most rep agreements are territorial based. Which means, if you do a trade show in NY, your Midwest reps will get commissions on sales from stores in the Midwest, that you have landed yourself at the show, even though you have just spent $10k doing a show. On top of that, you may question, why am I paying for showroom fees just to be cramped in with all the other lines. How come my reps aren’t bringing in as much sales as I thought they would? How come this buyer whom would normally spend $2k with me at a show, now ordering through my rep only order $90.00? Why am I cutting my reps all these commissions for work I have done entirely myself?
On the rep side, you have to also understand the agent’s point of view. First, if they carry ONLY your line, they would make pennies. A 15% of a $500 order only gives them $75, but it takes them days or even weeks to set up the appointment, phone calls after phone calls, and then finally when the buyer agrees, your rep lugs all your samples to the store, deal with the buyer, who may or may NOT be a nice buyer, spend up to 4 hours literally trying to convince or “begging” them to buy your line, to have faith in your products. What about cab OR gas money to get to the store, parking. And all that for $75?
This is why reps must carry so many lines!
And when you pay for fees to participate at a show, your rep is doing the setup, the networking, the mail outs, the shipping costs to the show, the booth fees, electricity, everything for a small fee.
Over the years, we have seen frustrations from all parties involved. We have always appreciated our reps. When things have not worked out, we’ve parted ways acknowledging that we can no longer benefit each other. Both parties agreed that the bottom line is for all of us to make money. We have also come to understand that WE are our best sales reps. You cannot depend solely on your reps to bring in sales for you. In reverse, if you do depend on them too much, you may find it hard to break free when you finally need to. You have to have many other sales strategies lined up as each yields different results. Your strategies have to be in line with your brand and goals. Do you want to be in thousands of stores? Or do you want to be in a selected few that represents your brand the way you envision? Is your target mass-market or high end?
I once read that it’s not about the quantity of stores that you get into. It’s about the quality of orders and the type of stores. It’s about your short and long term goals. If your end goal is to be in Le Bon Marché in Paris, or Liberty in UK or Bergdorf in NY, you don’t need your reps to get you there. You need YOU.
Recently a fan wrote in asking us how to put a media/press kit together. I told her we are not professional press agencies or publicists but we can try to share as much information based on our experience.
For small businesses or startups, budget for a publicist or a pr firm is almost non-existent. Over the years, many have approached us, pitching they can get us into magazines, TV shows, celebrity clientele and of course the big O. Sounds all so exciting until we hear the retainer fees and discover the no-guarantee contracts. Nonetheless, we believe there are excellent publicists and pr firms out there. We are not implying that their services have no value. Actually, as your business grows, having a publicist/ pr firm may help grow your brand image as they usually have abundance of new ideas and established contacts. These people are gurus in trends, constantly searching for the next hottest gigs and certainly can offer you fresh ideas that can launch you to the next level.
But let’s just say, we have ZERO budget but still want to get some press, what do we do?
To start with, we think there are 2 types of press coverage. One is a product feature and one is an editorial/special feature on the designer, so determine what type of press you’d like. Product features are what you normally see in fashion magazines, with the product shot, pricing info, a simple description and a website or store location as to where to buy that product.
An editorial piece is more elaborate. It may or may not contain your products, but it features you, the designer or small business owner, your background, how you’ve launched your line, what made you “special,” what you are doing now, what you are planning to do in the future etc. The feature may be from one page up to four pages, with images of your products, or things that inspire you, and have course YOU! This applies to both print and TV.
What should my press kit contain?
Your press kit should represent you, your brand and your products. It could contain:
1) A cover letter or a hand written note
2) A short bio of you & company history
3) Photos/samples of your products along with description/information
4) If you have press releases, include a few
5) List some of the stores carrying your products
6) List some of the celebrities who have BOUGHT your products (taboo topic!)
7) And of course list WHY your product is so unique!
All these MUST be packaged up nicely with your company logo. PRESENTATION IS IMPORTANT.
You can also include a self-return postage label if you want samples to be returned. Of course don’t forget your business card with email and contact information and WEBSITE. A web address is essential. If your products are selected, most editors would list your websites especially if you have e-commerce. If not, they will ask for a couple of COOL stores to list.
So what happens after you send your press kits? Wait patiently! Understand that editors receive TONS of press kits everyday. It may take them 2 weeks up to 6 months before you get that special phone call or email. So don’t be to quick to give up. Allow them time to go through your line. Call them if you truly can’t wait. Maybe 2 weeks after your delivery date.
Do I need to include photos of myself?
Not necessary unless you are targeting an editorial coverage. And if an editor requests a photo of you, don’t panic and go out and hire a professional photographer. Send the best picture your significant other or friend can take – it must be what you think is YOU. You don’t have to send sexy, poser photos. And DO NOT use photos from high school, or when you looked your best years ago! Just be you and disclose all. Editors will easily drop you last minute from their publication if you try to pull a fast one. A good story of mine is that I once sent a photo of myself in front of a plate of a huge burger and chilidog with fries. I was nervous at first, but it was the most recent photo Joe took of me on our Bahamas cruise. And since my line is inspired by FOOD, it made sense to me! So off I went emailing that photo to the editor and voila. I got in! Most publications will then send their own photographer, stylist and makeup artist to make you look spectacular!
What if the publication does not have the budget to send their entourage of beauty pros but still want an amazing photo of you? When that happens, you then weigh in on hiring a professional photographer.
When to send press kits?
Deadlines for publications range from 2-6 months in advance. For instance, if you want to be in their HOLIDAY features, send your press kits by May.
How to get the names and listings of editors?
Simply pick up the magazine. You don’t even have to buy them. Go to your local bookstore, sit down and write down all the names! Most magazines have a page listing all the different editors. Look closely at the magazine; for instance, if they have a page featuring the hottest products, there is usually a listed editor that handled that feature. That is the editor you want to send your stuff to. Also note that magazines change editors ALL the time. So you may want to call up to confirm.
If you have a small budget to spare, another place to look for the list is http://www.mastheads.org.
What other press can I approach?
Blogs and design publications.
Taboo topics
A few taboo matters that relate to press I’d like to point out.
Firstly, a LOT of the FASHION magazines out there will ONLY feature you or your products if you have celebrity clientele. Don’t ask me why that is, but I am guessing, celebrity product placement is a huge industry out there. I am always torn with that angle, because we have celebrity clientele that actually BOUGHT our products, and we also have celebrity clientele that demanded free products from us. Of course we usually say NO to the latter, unless it’s for charity or a good cause. We believe celebrities do not deserve handouts as they can surely afford a $6.00 greeting card! On the other hand, some magazines really do not care about all that celebrity mumbo jumbo, but focus purely on GOOD design and innovation.
The other taboo subject, should press be given free samples?
Some of us may send free samples to press because we WANT to, on our own discretion. It’s part of our press kits. Once an editor calls you back to request for more samples, most of them will provide you with their FEDEX/UPS account # and return our samples when they are done with their photo shoots. Once in a while we get bloggers or journalists asking for samples to do reviews. WE usually stay away from them. Many of the bloggers we have dealt with, would normally ask for photos only. Some will meet you at trade shows if they want to “review” your products. But rarely do they request FREE samples. You send them samples because you want to. Feel free to ask who is paying for the shipping costs and if you are getting your samples back. The professional ones will always agree to cover shipping and return samples.
Another taboo subject is about age and appearance. Depending on the type of magazine and their demographics, some editors are looking to feature designers who are under a certain age group with a certain “look.” I think it’s safe to say we all live in a superficial world where we know of many “celebrity designer” who are NOT even that fabulous (not naming names here!) but they are featured everywhere, simply because they look HOT and they appeal to the right audience.
My time is spent mostly on my business and family. I refuse to believe that my weight, my ethnicity and where I was born would be deterring factors from getting featured! So a BIG THANKS to those magazines and bloggers who have featured my products and me in the past. If they can feature a 5’7”, 150lbs, Malaysian born Chinese woman, FOB (FRESH OF THE BOAT) designer, who speaks with thick Chinese accent, they have no problem featuring everyone else!
So, GO GET THEM PEOPLE!! Get your press kits together and good luck to you all! – Mel Lim ☺
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