Do Not Read Until … Tuesday – May 30

Dropping a little thought bomb into your inbox for when we’re all back after the holiday. The fact is we might not all be in the best mental place Tuesday morning as our collective hangover from the glorious holiday weekend persists. Let this be a gentle re-entry into the work world with a touch of this week’s important happenings.

 

The enduring power of Apple and attainable luxury

Apple’s devices are ubiquitous. Their glass-encased monuments to consumerism can be found in the hippest neighborhoods of the world’s most prestigious cities. I am typing this on a MacBook Air while being interrupted by notifications from my iPhone, and you are more likely than not to be reading this on an Apple device of some kind.

But we’re also constantly being told that their decline is imminent as their market share continues to be cut into by competitors like Samsung and even Huawei. But is that a false narrative? It might just be.

Apple sets itself apart in one key way; they are first and foremost a luxury brand. Apple’s retail experiences, their packaging, and even their advertising are all positioned as luxury. Apple print ads can be seen in Vogue alongside those of the world’s leading fashion houses. So, try this one on:

  • Ferrari made the news recently with surging profit margins at 29.5% as reported in Bloomberg. Who were they compared to? Hermes at 36.5% (makes sense), and . . . uh, Apple at 31.6%.
  • Break it down another way, you say? Fine. Apple makes more profit every quarter than what Amazon has made in their entire history as a company. Twice over.

The power of marketing is real, you guys, and Apple ain’t going anywhere.

 

Know what else is real? Snap struggles: Snap Ads are now offered on a discount (woof)

As we’ve reported to all of you the past few weeks, Snap isn’t having the best go of things rn (read here about the fun times and here and here about the competition creeping in). Not surprisingly, a lot of this has to do with lackluster ad sales mixed with an aggressive competitor (achem, Facebook).

So, what to do? Put those ads on sale, yo!

  • According to reports from multiple media agencies and covered by Digiday here, the company “. . . is incentivizing brands and media buyers, offering bonuses, discount coupons and media credits for ad buys carried out in the second quarter of 2017”

Think it’ll work? Me neither. I believe it’s past time for Snap to improve their ad experience, then ask for more money.

 

More and more, the right combination of E Comm and Brick and Mortar stores is proving to be a profitable mix

According to recent reports from L2 and Bloomberg, beauty retailer Ulta is now the fastest growing retail stock, surpassing the likes of Amazon.

  • How? It’s called omnichannel marketing. Not a fan or marketing buzzwords? Fine. People who shop both online and offline spend 2.5X compared to those who use just a single channel to buy their wares.

This should be of interest to anyone working in CPG (and more), but it seems to be a formula that can be replicated.

 

That’s all for us. Hope you don’t get here until Tuesday, people!

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