It is hard to believe that this is already my last blog post for COMM 101. I have really enjoyed writing these blogs, because they have provided me with great insight into different aspects of the business world surrounding a variety of interesting topics.

For my final blog I have chosen to write about the actor, Kate Hudson’s company Fabletics. Fabletics is an online athletic wear subscription service that offers lower-priced quality active wear for women of all sizes. The company launched in 2013 and earned upwards of 250 million dollars in revenue during the first three years of operations. I wanted to research and learn more what made Kate’s start-up a success.

We learned during our entrepreneurship lecture that fixing a problem or providing something that is missing is a great way to start a business. This is exactly what Kate and her team did. Kate saw an opportunity in the market for “cute more fashion forward athletic wear”. Kate was also aware that this was a growing market segment. “Sales of active wear jumped 12% last year in the U.S. to nearly $40 billion”.

We have also learned in class that points of difference (PoDs) are very important in making a business stand out from its competitors. One successful and unique aspect of Fabletics is their membership option. Becoming a member allows a Fabletic’s customer to have a very personalized fashion experience by answering personal questions so the website can recommend pieces of clothing tailored to their preferences.

Membership is also beneficial to the company because it allows the company to collect data about what their customers like and dislike. Using this data has also helped Fabletics to have a successful introduction into the physical retail world. The data gave the company insight into where they should place their 22 retail locations related to where their most loyal customers are.

The company has been able to gain large amounts of revenue thanks again to their online platform. Kate explained during an interview at the ‘Fortune’s MPW Summit’ that Fabletics has “sophisticated algorithms so they can see what customers do and don’t like so the company doesn’t have to waste product like others do.”

Today Fabletics has over 400 employees and over 1.2 million active VIP members. Personally, I really enjoy working out and Lululemon has always been my favourite workout brand. The problem is it can be very expensive. Fabletics may be a great alternative, as they offer valuable qualities like personalization and lower prices. Overall, Fabletics has shown a business can gain valuable data about their customer through an online platform and it can be used to help make important business decisions.

See hyperlinks incorporated throughout text.

Images link:

Fabletics Website

Fabletics Storefront

I was excited to read some of my peers’ blogs and experience their perspectives on the business world. When I came across Min Young’s post entitled Young Women in Business, I was immediately intrigued because of my similar interest in successful business women.

My interest not only encompasses business women who have experienced economic success, but also those who enjoy what they do and have a positive impact. All women in business, whether a CEO or a blogger can offer advice and expertise to benefit others.

This is relevant to me because I read blogs and watch YouTube videos almost daily to gain knowledge about consumer information and business insights. Mimi Ikonn is one of my favourite YouTubers and bloggers. She is an entrepreneur who has multiple product lines that she markets successfully online such as Luxy Hair, which makes over one million dollars annually.

In Tuesday’s class we learned about entrepreneurship and how important a clear value proposition and innovation are to the success of a business. When Mimi first started Luxy Hair, YouTube was relatively new. Mimi saw the opportunity in marketing Luxy Hair through this new platform. It was an innovative move and she also included tutorials, which helped to increase the popularity of the product. Today this YouTube channel has over three million subscribers.

Blogging is an effective marketing tool because it draws in viewers to learn about products and helps establish the blogger as a source of knowledge. Blogs provide longer-term advertising benefits than traditional paper or TV ads because people may view them via search engines several months or years after the initial post.

Mimi continues to emphasize the value of uplifting others. She is regularly posting YouTube videos with inspiring messages, as well information on how to start a business, fashion tips, travel videos and how to live an active lifestyle. Mimi, along with her husband, continues to create new products, such as The Five Minute Journal and The Productivity Planner, which are both designed to have a positive impact to peoples’ lives.

Women like Mimi have demonstrated that they can be successful in business by combining innovative tools like blogs with their enthusiasm and positive messaging around their products. I hope one day to be in a position where I am utilizing my Sauder degree to have a rewarding commerce career, where I can be innovative and have a positive impact through my business endeavours.

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Sources:

https://blog.hubspot.com/marketing/the-benefits-of-business-blogging-ht

In addition, see hyperlinks incorporated throughout text.

Image Links

http://stayclassytoronto.blogspot.ca/2014/11/the-selection-mimi-ikonn.html

https://www.luxyhair.com

https://www.anupliftedday.com/products/productivity-planner

As our class exited COMM101 after our Finance lecture, I began to think about what stocks I could invest in and why. I looked at successful companies that have products and services I am familiar with and enjoy using. One company that fit that criterion was Pinterest, but I was surprise to find that it is not a public company. I decided to find out what makes Pinterest so successful and why they haven’t gone public.

Pinterest is a mobile app and website that allows users to discover, save and share ideas and products on boards they create.

Pinterest’s CEO Benn Silbermann confirmed in a CNBC interview that Pinterest has over 175 million users and is on track to receive 500 million dollars in revenue this year. In addition, 75% of new sign-ups are from outside the United States and over 40% of total users are men. The company has also seen a 67% growth rate since 2016.

Pinterest has been smart to partner with small business advertisers as well as incorporate app-install ads to their website generating revenue. Pinterest has also partnered with Samsung and their new features, such as ‘Visual Search’.

All of these positive business moves and evidence of stability, make Pinterest a “prime IPO target”, so why hasn’t the company gone public?

In class we learned that there are challenges associated with going public. Those reasons include, the high cost and initial listing fee, performance pressure, market volatility and a greater risk of takeover.

In addition, Benn Silbermann explained that the company has decided not to go public simply because they want to “focus on growing the business” and he is “not sure that going public would help the company retain and grow its user base.”

One major obstacle that the company faces is China’s inaccessibility to the site. China has the largest population per country in the world, and the company is missing out on a large segment of customers.

Finally, if a company goes public it has to share all of its financial statements. This is so stakeholders have a fair understanding of what they are investing in. This also makes companies vulnerable for “copycat” sites. Pinterest has already seen similar sites emerge such as Wanderfly and Gentlemint.

Overall I think Pinterest is a great option for an investor if they did go public in the future. Their business has proven to be successful and is continuing to grow. Just like any business it has considered the risks and challenges of going public and may enter the market when those risks are reduced. Maybe then I will even buy a share myself.

Words: 442

Sources:

https://www.cnbc.com/video/2017/04/03/pinterest-ceo-no-plans-to-go-public.html

https://www.zacks.com/stock/news/274823/is-pinterest-a-top-ipo-candidate-for-2017

https://business.pinterest.com/en/how-pinterest-works

https://canvas.ubc.ca/courses/810/files/folder/Class%20Slides?preview=111475

Images sources:

https://www.underconsideration.com/brandnew/archives/new_logo_for_pinterest.php

https://www.pinterest.ca

https://smallbiztrends.com/2017/03/pinterest-lens-visual-search.htm

“Toys R Us” is a famous and well-established toy retailer around the world. Last week, it announced that they filed for bankruptcy in the US and Canada. This is in contrast with competitor, “Mastermind Toys” who are expanding with an additional ninety retail locations across Canada by 2020. I wondered why these two retailers had different results in the same industry. I decided to research their situations further to find out what was causing the difference.When I was younger, I was excited to visit Toys R Us and see all their latest toys. It looked well organized with many products and customers. So what happened? The Forbes article, “Toys R Us – How Bad Assumptions Fed Bad Financial Planning Creating Failure” [1], explains that the company got into trouble because of online competition like Amazon and low-price competition from stores like Walmart. The company made poor management and financial decisions so their debt grew very large. They couldn’t reduce cost by selling assets because of the decline in the value of storefront real estate. They lacked the cash to invest in keeping up with competitors, while still paying their investors.

In comparison, the article “Mastermind Toys ramps up expansion even as Toys R Us flounders”, explains that Mastermind Toys has been successful to the fact that they focus on educational and specialty offerings that are unique to their store. This has allowed them to gain a “devoted following of Canadian parents.” [2]. Mastermind was able to find a niche that was profitable in the toy business. This also allowed Mastermind Toys to charge higher prices, making them more profitable.

Mastermind is also smart to where they open stores. Quebec will house 18 of its 20 future storefronts. Quebec “has historically been a stronger market for niche businesses and slower to warm up to mass-market or online retailers.” [2]. The company’s president also stated that the “company is taking the time to research and prepare properly” [2], before they open.

Overall Mastermind wants to create an “experience” [2], and they will do this by granting customers the opportunity to try out products with the assistance of educated staff.

Overall, from conducting research on the two companies, I learned that it is very important to stay focused on what made your business a success in the beginning and plan for it. I also learned that it is important to not let debt get out of hand and to have cash available to invest in new opportunities or unexpected threats. The businesses world is experiencing changes in technology products and customers faster than ever before and businesses have to be prepared to keep up with it.

Word Count: 442

Sources

[1] Hartung A. (2017, September 20). Toys R Us –How Bad Assumptions Fed Bad Financial Planning Creating Failure. Retrieved September 24, 2017, from https://www.forbes.com/sites/adamhartung/2017/09/20/toyr-r-us-is-a-lesson-in-how-bad-assumptions-feed-bad-financial-planning-creating-failure/#10b092658eab

Forbes article called: “Toys R Us – How Bad Assumptions Fed Bad Financial Planning Creating Failure”

[2] “Mastermind Toys ramps up expansion even as Toys R Us flounders”

Image Links:

[3] https://www.brandsoftheworld.com/logo/toys-r-us-2

[4] https://www.canadianfreestuff.com/mastermind-toys-canada-coupon/