Diatribes by Joah

Friday Jam: Hammer

Americans and Australians: Make Room for the Euros!

The following post originally showed on Huffington Post.com

Americans and Aussies alike should make room in their closets for some European style. Allsaints, ASOS.com, Topshop and Zara are sending shipments across the Atlantic and down under with a great sense of urgency sure to impact your wallet.

"European brands invented high street fashion," said Ari Goldberg, CEO of StyleCaster.com. "With the convergence of digital -- which has created an even smaller world -- and the impact of a global recession, now is the perfect time for brands with high quality, high deign and superior value to make a push to the U.S."

Technically, this started a few years ago. Back in 2006, BusinessWeek reported on the rapid growth of Zara's parent company Inditex and how the company's fast-fashion model had swarmed H&M's long-held lead in the European market. At the time, Inditex had just come off opening 448 stores in the previous year compared to 145 by H&M. Still, this only put the two retail behemoths at 19 and 91 stores in the U.S., respectively. Back then, fast-fashion was said to account for only one percent of the U.S. clothing market.

Those were the days.

The global economic recession, however, has lit a fire under the you-know-whats of these European retailers both offline and online. Sure, spending in American malls isn't what it used to be, but America's credit rating has always been nothing but stellar(-ish) and don't forget those stimulus packages and tax cuts that trickled down to put a few more dollars in our pockets.

Here's a rundown of the past two years: Topshop opened its flagship store in Manhattan in 2009. Allsaints spent 2009 getting familiar with Miami and L.A. residents, but backed it up with a Manhattan shop the following year. Just a few weeks ago both Allsaints and Topshop launched their Chicago outposts. Zara just launched e-commerce retail on its U.S. site.

Add that to the fact that Pablo Isla, chairman and CEO of Inditex, was quoted as saying, "The priority at this moment in terms of growth is Asia and Europe, but on a medium and long-term basis the U.S. market is also very important for us. In this sense the online launch is a milestone together with the opening of the New York flagship store" next year.

Meanwhile, ASOS.com launched its slightly Australian site not long after doing so in the U.S. Upon ASOS's Aussie launch, Sydney Morning Herald's Lucy Rickard wrote, "ASOS joins retail giants Topshop and Zara in targeting the booming Australian market, with Japanese brand Uniqlo expected to open next."

Speaking of Uniqlo, they may be based far east of Europe, but their long-standing retail prominence as a nation coupled with their ongoing economic concerns makes them much more Euro-like with regard to retail expansion. In 2006, the company opened its first U.S. store in SoHo district of Manhattan and recently announced October 14 as the official launch date for its two new New York stores. One location will reside on 34th Street and the other, located on Fifth Avenue, will become its largest store in the entire world.

"Our goal is to do $10 billion in the U.S. by 2020, so we have to open a lot of stores," said Shin Odake, CEO of Uniqlo USA. Forbes reported that Uniqlo plans to open 200 U.S. stores, including several at key locations on the West Coast.

The Fifth Avenue Uniqlo location was leased for $300 million, which sounds like a price for an NBA franchise not a retail location, but that's dwarfed by the $400 million Zara spent for 32,000 square feet on the same avenue. According to The Wall Street Journal, the deal is one of the largest retail real estate deals in New York City history.

Australia poses a similar high-priced entry for these European and Asian retailers as a recent study listed Sydney's Pitt Street ahead of both Bond Street in London and Champs Elysees in Paris as the most costly retail locations in the world. New York's Fifth Avenue, as expected, was first.

This all goes to show that these European (and Asian) companies may see brighter spending futures (and, quite possibly, better economic conditions) abroad than in their homelands. Chris Morton, the CEO and cofounder of style curation site Lyst, works with British brands like Burberry and Paul Smith, and seems to agree.

"The debt crisis in Europe is limiting growth in some countries for brands which already have good market share -- the US represents an untapped affluent market with non-luxury consumers which aren't too dissimilar to European ones," said Morton. "Big European brands want to diversify their revenue streams geographically to spread the risk in this uncertain financial climate."

Another element here worth considering will be how American brands and retailers do with their own expansion plans for Europe and Asia as their international competitors further encroach their markets. Broadly speaking, the results have been mixed thus far. Coach recently opened its first flagship store in London and I'm anxious to see how the Brits take to it.

While Coach seems bullish, others are on the more skeptical side as an article about Best Buy's likely exit from the UK market indicates. Anthony Chukumba is an analyst with BB&T Capital Markets and stated, "U.S. retailers have a mediocre to bad track record of expanding their concepts into Europe. I think part of it is different cultures and part of it is the fact that U.S. brands aren't as readily known in Europe."

Add that to the recent report that vacancy rates across the UK's top 20 shopping malls and those aforementioned high streets fell to a 10-year low in August, and you get the feeling that the locals are doing their best to keep the U.S. brands and retailers out. Or making them pay a high price to get in the market, as we've seen in New York.

"International retailers currently acquiring space in the UK, such as Forever 21, Hollister and Victoria's Secret, are focusing on the top ten or twenty locations before moving on to continental Europe and Asia," DTZ's Head of UK Retail, Hugh Radford, said. "We don't see the number of locations that international retailers are targeting increasing in the medium term."

Factors for U.S. brands and retailers being less focused on European expansion than their competitors across the Atlantic are on expanding westward include low brand recognition, cultural differences and dissimilar buying patterns, high rents and costs of doing business.

Or maybe us Americans are doing something we've always done when it comes to fashion; waiting to see what and how the Euros do first.

What I learned from the Etsy CTO-turned-CEO

The following post originally showed on the Bazaarvoice Developer Blog.

I’ll be the first to tell you that my background isn’t at all in engineering or software development. I’ve spent much of the last eight years in business advisory, communications consulting and operations roles. Still, one of the best things about working at Bazaarvoice has been working with and learning from highly-talented technology leaders. Mike Svatek, our chief product officer, Scott Bonneau, our VP of Engineering, and Jon Loyens, who leads BV Labs, are just a few of the people I’ve had the opportunity to work with in my first four months here.

But it’s not just the management team here at Bazaarvoice that has taught me plenty about the R&D functions of a tech company; last month I attended an event in New York (hosted by First Round Capital) where the CTO-turned-CEO of Etsy, Chad Dickerson, spoke about building a world-class dev organization. Going from CTO to CEO is not a traditional route even in today’s technology startup environment, but Chad stands out for making the transition amidst Etsy’s rapid growth. Under his watch, the company’s dev team grew from 20 to 80 engineers in around a year’s time and has seen page views go from 200 million to one billion per month. Talk about hyper-growth!

And what exactly did I learn from Chad’s talk? Well, for starters, he’s a big-time fan of Peter Drucker, one of the top business minds of the last century, who is credited with having shaped much of today’s common management theory and executive MBA programs. On several occasions, Chad quoted Drucker, including one of his most famous lines: “Culture eats strategy for breakfast.”

The culture Chad spoke of began with continuous deployment. He was very much in opposition of traditional “releases”, QA, lengthy and multi-layered “sign off” processes and having a single individual tasked with being the official release engineer. He cited each as reasons for delays in innovation and improvements to features that customers want more and more as the company grows, stating, “as you get bigger, the demands for new features goes up.” He shared that one of the job duties for every new engineer is to release code on their very first day on the job and agrees with Clay Shirky that, “process is an embedded reaction to prior stupidity.”

However, whether or not Etsy’s development policies and practices are directly related to the systems we have in place at Bazaarvoice wasn’t as important to me as the way Chad spoke about promoting an engineer-friendly, technology-driven culture. After all, our business models are very different. The culture piece, though, was of particular interest because here at Bazaarvoice we very much embrace many of the same concepts Chad spoke of when referring to Etsy.

At one point, Chad was asked a question about recruiting and he said, flat out, “Do what it takes to hire super stars.” Well, funny he should say that because every week it seems, we’re bringing on first-rate talent for our dev team, from proven technology business leaders to kick-ass coders. The culture here, the culture that enables us to be the perennial “Best Place to Work in Austin”, starts with people and top-notch talent. It also involves optimizing for developer happiness, something Chad mentioned, by finding ways to give our people the satisfaction of finishing a job. Drucker is the originator of that last statement, too.

As a self-described risk-taker, I loved what Chad had to say about this quality, again quoting Drucker:

“People who don’t take risks generally make about two big mistakes a year. People who do take risks generally make about two big mistakes a year.”

Chad said, “It’s better to be aggressive and make mistakes than be tentative and make mistakes.” Blameless post mortems, Chad said, was the key to creating an environment where small production changes are made daily will certainly lead to minor mistakes, but that small corrections typically address these issues. The tendency to pull back and slow things down was not their M.O., but rather to “roll forward” to progress. I’m a big fan of that mindset.

One of the last things Chad spoke about was doing things to make engineers heroes within the business, which is something customarily reserved for sales guys who bring in the revenue. He said that one of his 2011 goals as CEO is to have every engineer to blog for Etsy, significantly contribute to an open source project or speak at a conference to continue the company’s generosity-filled culture.

After having the privilege of hearing from Chad for two hours, I became doubly enamored with the technology leaders and the team they’re managing here at Bazaarvoice because many of these principles, even if not pulled directly from a Peter Drucker book, are applied in our business.

• Faith in humanity
• Sleepless nights
• Informed risk taking
• Incremental change

These were the four keys to dev team success listed by Chad. I haven’t had many sleepless nights since joining Bazaarvoice four months ago, and I’m comfortable saying the main reason is because the other three keys are top of mind every day.

Friday Jam: Tevin Campbell

Don't act like you didn't like this song.

One of my fav memories of this year...4th of July in Vermont

Went up to Burlington with Deva for the 4th and saw one of the best fireworks shows I've ever seen. It was very All-American. Like these photos.

Friday Jam: Wham

Friday Jam: David Dallas feat. Freddie Gibbs

One of my absolute favorite artists from the last few years, David Dallas is a New Zealand rapper with California style mixed with '90s New York swag. And some good songs, like this and this. Here's a newer song I like.

 

Hey GQ Readers: Here Are 9 American Cities Where the Best-Dressed People Shop

[The following post was originally posted on HuffingtonPost.com]

When GQ recently published its list of the "40 Worst Dressed Cities in America" naming cities from Manhattan (#5) to Portland (#36), I wasn't sure what I should be upset by the most. Austin, the city I live in, was 18th, just ahead of (or was it just behind?) Jersey Shore at number 19. Boston ranked number one on the list, while Omaha, Neb., ranked 32nd begging the question of which city is GQ saying dresses more dreadfully? Is it really possible that people in Brooklyn dress worse than people in Boulder, Colo., or is it just that the dichotomy from good to bad dressers is more severe? I'm still not sure.

Regardless, what I'm trying to say is that I was confused. If you're going to take the time to have a dozen or more writers and editors contribute to a piece about fashionable cities, you should at least come to some digestible conclusion. Listing every major city in America and saying that Boston, Chicago and New York are in the top (or bottom) five doesn't tell us anything at all. We're back where we started.

Thankfully, I've been taking mental notes -- while shopping in local boutiques, meeting local designers and tastemakers and visiting cities across the country -- and am now ready to share this actionable list:

9. Kansas City
Kansas City is a bit of a one-trick pony, which may lead to some questioning its place on this list, but that one trick happens to be one of the best unisex shops in America: Standard Style. Kansas, like Chicago, has the Midwest working both for and against it... the styles from New York and L.A. may take a minute to land here, but when the good ones do (and they certainly do from both coasts, unlike say Charlotte or Phoenix), Standard Style is where they end up.

Whether it's A.P.C. and Life After Denim for guys or Elizabeth & James or Rebecca Taylor for women, you can always expect the best of both fashion worlds will end up in this shop. As one store reviewer wrote, "They have the best selection of great new brands that I can't find anywhere else in Kansas City. I was so excited to actually have a place to buy all the fun new clothes I read about in my magazines."

8. Atlanta
It's the South, first and foremost. That's why brands like We Are the Process who fully embrace their Southern heritage are top-of-mind when thinking of where to start shopping. Their tees are some of the best you'll see in the over-crowded streetwear game and their tanks look as good on females as they do on the men they were designed by. Secondly, Atlanta has a Black vibe to it. That's why Fresh.I.Am, a simple yet refined hatmaker who recently collaborated with buzz worthy rapper Theophilus London, thrives in Atlanta -- the city that gave us hip-hop style icons like Andre 3000. Also, Standard, a streetwear/sneaker boutique, is a locally-owned beacon in the mass-produced, commercial centric Lenox Mall, one of the top three Simon-owned malls in America.

7. L.A.
Everyone thinks of Rodeo Drive when they think about L.A. shopping, but the real value is in getting to know people who design or work in showrooms. Not everyone will meet Lisa Kline, but tons of fashion brands are represented by L.A. showrooms like the Joey Showroom and Open Showroom where you can find threads from still-emerging collections like Black Halo and JoyRich. Also, some of the best boutiques in America are located in L.A. including Opening Ceremony where two of my favorite labels -- Adam Kimmel and Band of Outsiders -- can be found. You may break the bank trying to keep up with the Joneses in L.A. though, so get familiar with the thrift and trunk show scene.

6. D.C.
Before returning to Austin, I spent three-plus years in our nation's capital, which is by no means a fashion hub. There is, however, a budding district -- the 14th Street and U Street areas to be exact -- where you'll find upscale boutiques like Redeem and sneaker stores like Palace5 within blocks of one another selling to the gay community prominent in Dupont and Logan Circle along with the young professional and hipster populations in the Columbia Heights, Mount Pleasant and Shaw neighborhoods. Concentrated shopping is a key to concentrated style.

5. Portland
I must say that I'm not that impressed with Portland if we're comparing the city to its Pacific Northwest peers, namely Seattle and Vancouver, but it did stand out for its shopping. Compound is one of the nation's cleanest sneaker shops, with more range than Nike-focused shops like Undefeated. I bought some John Varvatos Converse desert boots at Compound within minutes of hitting the Downtown streets a few months back. Similarly, shops like Radish (women's) and Johnny Sole (shoes) may lack the name recognition of similarly-focused boutiques in other cities, but the range is broad enough to include strong brands like Bodybag by Jude and 80%20, both of whom can now count my girlfriend as a fan. Blackbird and Blake carry menswear that can have you looking date-ready within minutes.

4. Austin
I'm here everyday. Well, except when I'm traveling... so I'm here about 50 percent of my days. Still, I'm continuously discovering new shopping in my home city despite its small-ish vibe compared to most of the cities I frequent. Just two weeks ago, I stumbled into a shop near the University of Texas campus called Cotone that almost immediately moved into my three favorite women's boutiques in Austin. The shop opened just in time for back-to-school season and carries Brandy Melville -- the Italian brand started by Silvio Marsan in Rome three decades ago -- which has been blazing trails in the U.S. since opening in New York in 2008.

Further into the city, the Second Street District is a few blocks of mostly women's boutiques that have opened in the last few years. South Congress Avenue is the center of Austin's enviable "buy local" shopping culture with the best brands and styles carried in shops like By George, Maya, Service and Stag, the latter two representing well-curated menswear shops that are still fairly new to the city. Sixth Street meets Lamar Boulevard and it would almost give Downtown Austin a mall-like shopping experience (Anthropologie, Free People) if not for Waterloo Records and Book People, two of the most well-respected independent record and book shops in America.

3. Chicago
Chicago is punished by long winters, which can make the desire to shop shrivel up and curl into a desire to drink hot cocoa and watch TV. But the city that gave us important style icons -- they all happen to be Black -- like Michael Jordan, Michelle Obama and Kanye West makes up for it with two things when it comes to shopping: 1) great shops that help you layer up and 2) great local boutiques that help you take advantage of the summer. On the layering front, I'm talking about Chicago's affinity for brands and shops that have excelled in New York like Allsaints, which opened up on Michigan Avenue just this month, Brooklyn Industries and Carhartt, both of which are in the Wicker Park area. On the local front, look to sneaker and streetwear favorite St. Alfred's along with the supremely-curated Sir & Madame, owned by Brian and Autumn Merritt who were recently mentioned in piece about Black style in The New York Times. It looks like Chicago's inspiration comes full circle; successful Black style that doesn't limit itself to Black shoppers at all.

2. New York
The fashion media of this country is based in Manhattan for one reason and one reason only: there's no better place to live and breathe fashion in America. Walk around Madison Avenue and you'll see some of the best professional attire this side of the Atlantic. Walk around SoHo and you'll see some of the most diverse and unique styles this side of the Pacific. There are shops like Saturdays Surf Shop (which GQ Creative Director Jim Moore recently called the coolest shop in America) and Dave's Quality Meats that come to mind when I think about buying locally in Manhattan.

Still, it's the first-in-the-States status that New York City has maintained for decades that make it a shopping hub for fashionistas (and those hoping to catch on). International designers hope to "break into the States" by making a splash in Manhattan, just as international musicians hope to break into the States by making a splash in Austin during South by Southwest. That's saying a lot although I should point out that New York does often embrace the woe-is-me elitism of fashion, so buyer beware.

1. San Francisco
The denim capital of America; San Francisco is home to Self Edge and A-B Fits, possibly the best one-two punch for denim shopping anywhere in the country. My business partner, Jon, recently visited SF for some meetings and the Style X lookbook designer, Brooke, reeled off a dozen legitimate boutiques that he had to visit. I went through the emailed list and found gems throughout... Department 17, Shotwell, Harputs Market, Seed Store, Dish, Unionmade, General Store, Welcome Stranger, and Azalea. My Roommate's Closet, Carrots, and the Archive are just a few others worth mentioning.

Self Edge is the best of SF, and some of the best of Japan.

It's also worth noting that shops like Self Edge and Boutique Harajuku successfully pull the some of best denim and women's brands from Japan across the ocean. Add that to the fact that San Francisco is home to premium brands like Martha Davis shoes and Tellason denim, plus streetwear brands like Benny Gold, Black Scale, and Hella Tight and you have the makings of a city that can go toe-to-toe with New York if we're looking to spend a weekend shopping locally.