Hovy Qiu's Blog

While we wait for Apple to release the iWatch, a smartwatch that is considered the “next big thing,” Pebble Technology has already developed an E-Paper Watch that is compatible with iPhone and Android. Pebble pledged for $100,000 on Kickster.com and ended up raising over $10 million from almost 60,000 backers. Creative projects, from desktop 3D printers to ambitious garage bands records were able to find their funding from similar crowdfunding websites, assuming their proposals are attractive enough.

Crowdfunding has taken a traditional start-up process and radically transformed it. Small start-ups can now easily fund their dream projects by pitching their ideas over the crowd-funding websites, which invites people around the world to back the projects. The backers, in turn, feel like they are part of a larger supportive community. Crowdfunding has significantly lowered the barrier to entry. In addition, start-up companies are able to cultivate better products from their constant interaction with backers. This will surely contribute to a new age of innovation.

To illustrate the potential for crowdfunding to shape our communities, the following video outlines the project to build a 66 story skyscraper,  with small investments from thousands of investors. Great numbers can achieve phenomenal results.

Rodrigo Nino: Crowdfunding In Real Estate. Finance Your Ideal City from Piers Fawkes on Vimeo.

Tessa Yin brought up a very interesting business model. Chipotle Mexican Grill operates with an emphasize on transparency, showcasing that the restaurant’s distinct style and values. As a result, Chipotle was able to increase their sales and generate a large number of patrons.

In response to Tessa’s food for thought, I believe transparency should definitely be emphasized by certain companies. As Tessa said, it provides a refreshing break from all the advertisement campaigns that are constantly pushed in consumers’ faces. A restaurant like Chipotle allows customers to experience its food and build their own opinion. I believe these type of brands will ultimately be a more successful.

Good branding achieves its goal by providing a new vocabulary for its consumers. Chipotle is successful at this. A customer who walks into Chipotle and experiences first hand the culture of the restaurant will associate his experience with the name Chipotle. As common positive experiences build up, a strong brand is formed in the minds of customers. The word Chipotle will become the carrier of the company’s culture.

About a month ago, Leo Huang wrote about BlackBerry’s lawsuit against the CEO of Kik for using information gained from working at BlackBerry. At the end of the lawsuit, opportunities arose for both companies to cooperate, allowing BlackBerry to expand its target market.

Looking at BlackBerry’s performance in the past month, Kik did not help the company much. BlackBerry is still suffering from unsuccessful product differentiation and poor management. In its latest quarter BlackBerry lost $965 million, mostly because of a write-down of unsold phones.

Releasing the BBM app for iPhone and Android was a puzzling move. Most consumers buy the BlackBerry exclusively for secure messing. The loss of exclusivity means that BlackBerry lost its major differentiation advantage. The BBM app doesn’t seem to be a source of revenue either and thus, this seems like a illogical move for BlackBerry. It is possible the BlackBerry has an ulterior motive behind the BBM app, but at the moment, the app is not very helpful.

BlackBerry definitely has a grim outlook for the future.I believe the company should change their strategy and consider adapting to the Windows or Android system and satisfying a niche market, similar to what Nokia had done in the past.

Undoubtedly, Haier Group and its automatic top-loading washing machines will be a driving force of change in China’s manufacturing industry. Just a few decades ago, Haier saw its transformation under the radical vision of Zhang Ruimin, who cultivated a strong corporate culture and a “western-like” emphasize on quality. As the legend goes, in 1985, Mr. Zhang was appointed CEO of Haier and he initiated the smashing of 76 faulty fridges in public.

Much of the company success can be credited to Mr. Zhang’s implementation of a strong corporate culture, which encouraged employees to invent and to innovate. He now eliminated middle management altogether. Haier’s workers are organized into self-managed teams that have full control over their operations and are paid based on performance. Employee’s ambition and innovation are rewarded and lead to new products, such as the automatic top-loading washing machine.

This is a system that every Chinese manufacturer should consider implementing. Haier’s change in corporate structure is very much in line with the changing attitude of Chinese workers. As workers ask for higher wages, it will be difficult to rely on cheap manufacturing for foreign investments. There is so much potential for the Chinese workforce to create innovation through design and research. Haier set a great example and it’s up to others to follow.

The Economist: Haier and Higher

Professor Gateman coined the term “Homeless in Vancouver” in one of his eccentric examples and it got me thinking: “What’s going on with Vancouver’s housing market?”

Vancouver retains the title of second least affordable city in an international ranking from Demographia.  Compared to Vancouver’s median total income, housing prices has become exorbitantly high. The average cost of a single-family detached home has jumped to $1 million.

Housing prices are undoubtedly getting more expensive in Vancouver. However, the housing market bubble hasn’t popped yet because there are people who are willing to pay the price. It is only natural for the market to be driven by supply and demand. Vancouver is well known for its living standards and people will pay to live here if the utility gained is worth it. Foreign ownership may also play a part in inflating housing prices.

In time, however, residents who cannot afford to live in Vancouver must move away. We are already seeing this relocation. This will be a problem as the younger generation exit the community, bring their talent and innovation with them. Perhaps in ten or twenty years, Vancouver will be a shadow of its diversified and vibrant community.

The Globe and Mail: Vancouver Remains Second Least Affordable Market as Measure Improves Slightly

The Globe and Mail: Vancouver Housing and Income Don’t Add Up

Buy a Lotto 6/49 ticket, knock on wood, and you have one in approximately 14 million chance of becoming a millionaire. It’s quite intuitive.

Recently, the familiar Lotto 6/49 saw some changes to the game. Ticket prices are raised to $3 per line and the minimum jackpot increased from $3 million to $5 million. There are also additional “Free Play” prizes and the “Guaranteed Price Draw.” Despite these changes, the consumers will not likely see any significant boost to the return of their investment.

It’s interesting to note the consumers’ reaction to this raise in price. Most expressed their outrage and renounced buying tickets altogether. Some decried government for being too greedy and for exploiting those who can least afford the tickets.

The game is designed with the odds against the player. Since poor people are more likely to buy lottery tickets, are they taken advantage of? Buying lottery tickets is a statistically a lost cause. The player is aware of the odds, but chooses to participate anyway. i don’t think it is much different than spending your paycheck drinking at the bar instead. In a way, the money is better spent on the hands of government officials, who will provide services back to the community.

CTV News: Lotto 6/49 The Cost of Winning Big Is Going Up

And Hovy said, “Let there be a blog,” and there was a blog. Hovy saw that the blog was good, and proceeded to blog. Read on.