Thoughts About the World

Exploring Pitch’s blog post, found here

For many consumers, “brand name” is an important aspect of deciding what their next purchase will be. Companies are always looking to build their brand name, through advertising campaigns, having celebrities wear their items, and the general creation of a “brand.” Often it seems that high end clothing, cars, and other items have a brand heritage. Although they are in a similar price range, Ferrari owners may turn up their nose at the sight of a Lamborghini, as the Lamborghini does not have the same classic racing heritage that Ferrari does.

Similarly, a consumer may prefer to purchase a $300 white tee from designer Maison Martin Margiela than a $3 white tee from the Costco brand Kirkland. Again, the brand comes into play – the higher end designer effortlessly gives the consumer status even while wearing the simplest article of clothing, the tee-shirt.

Often, brands must find a unique angle in order to stick out from their competitors. Brands like Wings & Horns, a company founded in Vancouver, are well known because they produce many of their quality menswear items in Canadian factories.

Brand management is an important aspect of a company that will greatly affect sales. Advertisers use a variety of mediums in order to convince consumers that their product is not homogeneous with its competitors.

The male fashion community has experienced a significant movement towards well-crafted clothing and footwear. Consumers interested in fashion often look for labels that state “Made in the USA,” “Made in the UK,” or “Made in [First World Country].” Although this label is not always a indicator of quality, it often means that extra effort has gone into sourcing the materials and construction. Classic work boot brands, such as Red Wing and Wolverine, have had great success with their “Heritage” lines of shoes – shoes made to look like the work boots of years gone by, usually made in America. These lines have had particular success in the fashion mecca that is Japan, as Japanese consumers yearn for American made goods. Furthermore, the public interest has led to the explosion of popularity of small companies like Oak Street Bootmakers and Viberg (a local brand based in Victoria).

Along with classic workboot styling, there is a movement towards the creation of denim using the old techniques. There are many small, high end denim companies such as Momotaro (A Japanese brand), that now make jeans that have a selvedge lining and are unwashed. Denim was originally designed for blue-collar workers – it had to be able to take a beating. As such, selvedge lined, high oz. jeans were the norm. Yet as jeans became a mainstream, cornerstone fashion piece, they began to lose their historic ruggedness. Jeans were made with cheaper materials that were not designed with hard abuse in mind. Yet today, raw, selvedge, high oz. denim is slowly making its way back into the mainstream. Again, this has lead to the rise of previously unknown companies, such as Naked & Famous, a Canadian brand, which produces selvedge denim.

This cycle of fashion interests demonstrates how some companies can capitalize on a previously unknown market. The fashion world in particular showcases this, as there is an almost clockwork cycle of what is in fashion and what is not.

Founded by Sam Sullivan in 1989, the Disabled Sailing Association (DSA) provides an accessible sailing experience for those with a variety of disabilities. The DSA uses a specially designed sailboat, called a Martin 16. This boat is designed to stay afloat and upright even in the worst of weather, and Uses technology such as the “Sip ‘n’ Puff,” which makes use of hydraulic winches and arms to operate the sheets and tiller, even those with extremely limited mobility and strength (such as quadriplegics) are able to participate in this sport.

In recent years, due to increased word-of-mouth marketing, the demand for the experience that the DSA offers has dramatically increased. As more sailors want to participate in the program, the head office realizes that the employees are beginning to struggle with the increased workload. Fortunately, communication is very open between management and workers, and employees are encouraged to provide insight and advice. In fact, the head office relies on employees to help them with hiring decisions and other decisions related to the overall organization. This is in part due to the structure of the organization: a single dedicated team of five people, who work hands on full time throughout the summer. This is a good demonstration of the positive effects of a flatter company structure, along with open communication.

Icreased popularity of backcountry skiing discussed here

60 years ago, before the advent of ski lifts, ski resorts as we know them today did not exist. As such, only the dedicated participated; in order to ski, people earned their turns.

Modern lift systems made the mountain accessible; the strenuous work of ascending was eliminated, which made skiing a fun activity for the whole family. Skiers no longer wasted time going up the mountain; Days were spent refining technique and exploring different aspects of skiing: skiers went faster on the race course, hit higher jumps and cliffs off-piste, and, eventually, followed the path of snowboarders, trying tricks in the terrain park.

A select group remained dedicated and continued to ski tour. As the mountain became overpopulated with skiers they craved solace. Some continued to ski in the “backcountry” – areas of the mountain not patrolled by the ski patrol, and not made safe by the avalanche squads. Yet this group slowly dwindled as more began to use the lifts. That is, until now.

Marker (a ski bindings company) burst onto the scene with a revolutionary product – a hybrid touring / alpine bindings. Touring had always been inaccessible for the average skier because it required different boots and bindings compared to what was used for on-piste skiing. Marker changed the game by introducing bindings that could be used with regular boots, both on the mountain and in the backcountry. The Duke’s became wildly successful, and other companies began to capitalize – companies like Salomon and Diamir produced their own hybrid bindings, and ski companies such as Rossignol have developed skis aimed at use in the backcountry.

Many ski companies have adapted well to this change in market demand, and have reacted well to the change in technology and consumer interests.

In her blog post, Ms. Dassan discusses the ethics of collecting information from Facebook users “without explicit consent”. I would argue that all users need to be aware that whenever they use Facebook, they are giving up their privacy. When Facebook users agree to the terms of service, they give up their posts, videos, and any ideas put on Facebook.

Although consumers agree to the terms and conditions without actually reading the text, they continue to complain that Facebook invades their privacy. In fact, it has reached the point that Facebook has amended its policies, as discussed in this New York Times article. As more users become aware of Facebook’s privacy “invasions,” there is a trend towards other forms of communication. Facebook, like its predeccesors Myspace and MSN, will eventually fall from grace. This downturn  is currently happening, as users move towards messenger apps such as iMessage, Facebook Messanger, and other similar apps. Perhaps consumers feel that one-on-one conversations with friends are more private than Facebook, and assume that they are not being monitored or stored.

Although it is only being realized now, Facebook users have never had any real semblance of privacy. Consumers will trend towards more “private” messenger apps, as the news sources bring news of NSA links to the public eye.

After 10 years of development, including a 2 1/2 year delay, the US has finally introduced the new $100 banknote into the circulation. This banknote employs two new security features: a three-dimensional blue strip with images that appear to move when the note is tilted, and an image of a copper inkwell containing a holographic bell whose colour changes when tilted. These features, along with the more traditional security, are designed to ensure that accurate reproduction of the note will be very difficult. Along with the fact that the $100 bill is the most counterfeited bill in US currency, the Federal Reserve estimates that 1/2 – 2/3 of $100 bills in circulation are outside of the United States. The new security features will be extremely important in reducing the number of illicit bills in the international market

Further information:

http://www.bbc.co.uk/news/technology-24431952

http://business.financialpost.com/2013/10/07/new-us-100-bill/.

Japan Airlines (JAL) has finally finished its search for a new addition to their fleet, striking a record breaking deal with Airbus. For around $9.5bn, JAL has acquired 31 Airbus A350s. The A350 is a competitor to the Boeing 787 Dreamliner. Historically, Boeing has dominated the Japanese aviation market, so this is a massive breakthrough for Airbus into a previously untapped market. The Dreamliner has been in the spotlight for all the wrong reasons lately, relating to technical and safety issues, and Airbus chief executive Fabrice Bregier says “it was a no-brainer to select the A350.”  Bregier repositioned the competition by drawing focus on the recent issues that the Dreamliner has been facing, and by focusing on the fuel efficiency of the A350 in comparison to the 787, Bregier repositioned Airbus as being the more cost efficient, safe, and overall better choice. This point has been of particular concern due to the fluctuation of fuel prices in recent years. Although this is a significant breakthrough for Airbus, Boeing 787s remain popular, with 950 Dreamliners on order so far this year.

What is happening?

The fiscal year (for accounting and taxing purposes) runs from September 30 to October 1. The sole job of the US Congress is to pass spending bills, including setting the budget at the beginning of each fiscal year. If a budget cannot be agreed on, the US government shuts down, and all non essential government workers are furloughed.

Why is this happening?

The US Congress consists of the House (which is mostly controlled by the Republicans) and the Senate (which is mostly controlled by the Democrats). All spending bills must be agreed on by both the Senate and the House. The House Republicans are calling for a new budget to defund or impede ObamaCare; the Senate Democrats are very against this type of budget.

What does this mean?

1. Non essential government workers (numbering around 800,000) are put on furlough, or unpaid leave

2. Although a shutdown is unlikely to cause an economic failure, the debt limit crisis could result in a catastrophe. On October 17, Congress must raise the debt ceiling or the US will default. The government would run out of money to pay its bills, which could cause another recession as confidence in the US economy would drastically fall.

Please visit these links for more information:

Debt Ceiling – http://www.cbsnews.com/8301-505123_162-57606253/debt-ceiling-understanding-whats-at-stake/

Detailed Explanation of Events – http://www.theguardian.com/world/2013/sep/30/us-shutdown-explainer-non-americans