Rishi Taparia - Issue #45
This week we look at Stitch Fix continuing to kick ass, Niemen Marcus’ idea factory, Ant Financial buckling to regulatory pressure, the WhatsApp / Facebook rift, the tragic passing of two industry giants and more. Enjoy!
Commerce
Is Stitch Fix the Netflix of Fashion?
Stitch Fix continues to deliver (pun most certainly intended). The company has been under greater scrutiny since going public, and in my humble opinion, has outperformed, showing solid growth quarter over quarter, driven largely by superb execution. Next on the list: Stitch Fix for kids.
Neiman Marcus launches 'Idea Factory' to drive store traffic
Neiman Marcus is trying to get its groove back. This week they announced (via Twitter no less - that’s the hip thing right?) an Idea Factory. What is an Idea Factory? “An effort to connect with a wider base of customers and increase traffic and relevancy in a world where people are shopping and spending differently.” How will this happen? By bringing “an array of concepts, products and experiences — from piercing and personalizing of fashion products, to candle-making, epicure and custom-mixing beauty creams” into the store for people to experiment with. I’m not sure how much this will actually make a difference, but hey, everyone’s got to try something right?
Costco sells Kirkland Signature razors
Costco’s business is a marvel on many levels. It is seeing growing revenues in a largely contracting sector, has an employee base who love the company and its values, and has run a masterclass in building a private label brand that makes them if not the largest, then among the largest chicken farmers and wine producers in the country. Now they are rolling out their own razor blades, a major move into a crowded space that has largely been dominated by Gillette.
FinTech
Ant Financial shifts focus away from finance to tech amid Beijing crackdown
Not even Ant is safe from regulatory pressures. As previously discussed here, the company had it’s finger in quite a lot of pies. Now it seems like they have finally succumbed to regulatory pressure, stating a desire to reduce financial based revenue. According to projections, the financial giant is aiming to move technology services revenue up to 65 from an estimated 34 percent in last year.
The shift better aligns Ant with the government’s strategy for the financial sector while giving it room to grow and innovate.
Technology
Behind the Messy, Expensive Split Between Facebook and WhatsApp’s Founders
A well reported piece going deep into the rift between facebook and WhatsApp that has ultimately led to the WhatsApp founders’ departure, leaving $1.3bn on the table. Talk about putting your money where your mouth is when it comes to valuing privacy.
China's Silicon Valley Faces Meltdown Fears
The Silicon Valley is a special place. A lot of thought has been put into recreating it, with names including Silicon Alley, Silicon Beach. Shenzhen in China was Rising costs have dented Shenzhen’s appeal and are forcing some companies to relocate.
Random Tidbits
Anthony Bourdain, Renegade Chef Who Reported From the World’s Tables, Is Dead at 61
This week we saw the passing of two giants in their industries, Kate Spade and Anthony Bourdain, both by suicide. Bourdain’s death particularly shook me. I have such fond memories from a decade ago as a newly minted New York City resident reading Bourdain’s fabulous and descriptive Kitchen Confidential in Central Park. Their suicides serve as a harsh reminder of the fragility of life and how unknown the inner workings of the human human mind remain. Hug your loved ones, whisper an ‘I love you’ and be sure to check in on those who might be struggling.
Quote I’m thinking about: “As you move through this life and this world you change things slightly, you leave marks behind, however small. And in return, life — and travel — leaves marks on you. Most of the time, those marks — on your body or on your heart — are beautiful. Often, though, they hurt.” Anthony Bourdain