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jerryking : physical_experiences   4

Kenneth Cole on keeping retail fashionable in a modern age
Nov. 2, 2017 | The Globe and Mail | SUSAN KRASHINSKY ROBERTSON.

About a year ago, your company announced the closing of all but two of your stores in the United States. Why?

The retail model needs to be re-imagined. We're looking to focus on the brand experience in the virtual universe, and then recreate a new physical experience.

How much of your sales in the future do you envision coming from the brick-and-mortar space?

Everyone is trying to figure it out. The shopping experience needs to be very different. It's happening really fast. It will be an interesting time. A lot of people will not survive it. At the end of the day, you'll have a stronger, more efficient marketplace.

More than three decades into the business, how has your view of advertising changed?

In the past, my goal was to sell my brand. Over the past five years, it seems everybody is their own brand – they wake up every day and curate it on their Facebook, their Twitter feed, their Instagram feed. My goal is to hopefully convince you to allow me to be part of your brand. All of that is changing.
Kenneth_Cole  brands  Susan_Krashinsky  retailers  fashion  bricks-and-mortar  cause_marketing  advertising  store_closings  shopping_experience  physical_experiences 
november 2017 by jerryking
Retailers must innovate and adapt to thrive in the age of Amazon
JUNE 26, 2017 | The Globe and Mail | HARVEY SCHACHTER.

Mr. Stephens does not believe we are seeing the death of retail. But we will need to see retail's reinvention, and soon. At the core will have to be the understanding that we don't need physical stores for distribution of goods, as Amazon has shown. But we will need them for experiences.

To his mind, Amazon is actually not a retailer. It's a data technology and innovation company that succeeds by ignoring the conventional wisdom of retailing and following its own ways. He notes that last year Macy's CEO Terry Lundgren said that while Amazon might pose some threat in apparel sales it would suffer because it was not prepared to handle complexities such as returns of items. But to Amazon, that's just another challenge to be handled by data and technology, as it is showing. When Amazon opened a physical store, it looked at retail through its own eyes and, in an age of mobile devices, eliminated cash registers, checkouts and lineups.

"But Amazon does not want to play in the physical experiences arena. They want to take the friction out of the equation. So if retailers can make the experiences in their stores rich, they can gain an edge," says Mr. Stephens. But most, of course, aren't all that effective for now, even at a basic level of romancing the customer, let alone the redesigned future he is calling for, where stores are redesigned around experiencing the product under consideration.
retailers  innovation  Amazon  Harvey_Schachter  experiential_marketing  Doug_Stephens  emotional_connections  contra-Amazon  slight_edge  physical_experiences 
september 2017 by jerryking
The Biology of Risk - NYTimes.com
By JOHN COATES JUNE 7, 2014

What is it about risk taking that so eludes our understanding, and our control?

Part of the problem is that we tend to view financial risk taking as a purely intellectual activity. But this view is incomplete. Risk is more than an intellectual puzzle — it is a profoundly physical experience, and it involves your body...Risk by its very nature threatens to hurt you, so when confronted by it your body and brain, under the influence of the stress response, unite as a single functioning unit....The state of your body predicts your appetite for financial risk just as it predicts an athlete’s performance.

If we understand how a person’s body influences risk taking, we can learn how to better manage risk takers. We can also recognize that mistakes governments have made have contributed to excessive risk taking.

Consider the most important risk manager of them all — the Federal Reserve. ...Uncertainty over the timing of something unpleasant often causes a greater challenge response than the unpleasant thing itself. Sometimes it is more stressful not knowing when or if you are going to be fired than actually being fired. Why? Because the challenge response, like any good defense mechanism, anticipates; it is a metabolic preparation for the unknown....Most models in economics and finance assume that risk preferences are a stable trait, much like your height. But this assumption, as our studies suggest, is misleading. Humans are designed with shifting risk preferences. They are an integral part of our response to stress, or challenge.......[JCK from David Brooks -The Wisdom Your Body Knows scientists are now focusing on the thinking that happens not in your brain but in your gut. You have neurons spread through your innards, and there’s increasing attention on the vagus nerve, which emerges from the brain stem and wanders across the heart, lungs, kidney and gut. The vagus nerve is one of the pathways through which the body and brain talk to each other in an unconscious conversation. ].......One such opportunity is a brief spike in market volatility, for this presents a chance to make money. But if volatility rises for a long period, the prolonged uncertainty leads us to subconsciously conclude that we no longer understand what is happening and then cortisol scales back our risk taking. In this way our risk taking calibrates to the amount of uncertainty and threat in the environment.

Continue reading the main story
Under conditions of extreme volatility, such as a crisis, traders, investors and indeed whole companies can freeze up in risk aversion, and this helps push a bear market into a crash. Unfortunately, this risk aversion occurs at just the wrong time, for these crises are precisely when markets offer the most attractive opportunities, and when the economy most needs people to take risks. The real challenge for Wall Street, I now believe, is not so much fear and greed as it is these silent and large shifts in risk appetite....As uncertainty in fed funds declined, one of the most powerful brakes on excessive risk taking in stocks was released....There are times when the Fed does need to calm the markets. After the credit crisis, it did just that. But when the economy and market are strong, as they were during the dot-com and housing bubbles, what, pray tell, is the point of calming the markets? Of raising rates in a predictable fashion? If you think the markets are complacent, then unnerve them. Over the past 20 years the Fed may have perfected the art of reassuring the markets, but it has lost the power to scare. And that means stock markets more easily overshoot, and then collapse.

CONTINUE READING THE MAIN STORY
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COMMENTS
The Fed could dampen this cycle. It has, in interest rate policy, not one tool but two: the level of rates and the uncertainty of rates. Given the sensitivity of risk preferences to uncertainty, the Fed could use policy uncertainty and a higher volatility of funds to selectively target risk taking in the financial community....IT may seem counterintuitive to use uncertainty to quell volatility. But a small amount of uncertainty surrounding short-term interest rates may act much like a vaccine immunizing the stock market against bubbles. More generally, if we view humans as embodied brains instead of disembodied minds, we can see that the risk-taking pathologies found in traders also lead chief executives, trial lawyers, oil executives and others to swing from excessive and ill-conceived risks to petrified risk aversion. It will also teach us to manage these risk takers, much as sport physiologists manage athletes, to stabilize their risk taking and to lower stress.
Wall_Street  risks  risk-management  risk-taking  uncertainty  U.S._Federal_Reserve  bubbles  volatility  behavioural_economics  risk-preferences  risk-aversion  biology  psychology  interest_rates  emotions  human_experience  financial_risk  signaling  stress_response  market_crash  immobilize  paralyze  bear_markets  policy_tools  physiological_response  risk-appetite  unpredictability  physical_experiences  calibration  human_behavior  human_frailties  human_psyche  metabolic 
june 2014 by jerryking
New urban design plays a heady game of risk
Mar 12, 2005 | The Globe and Mail pg. F.3|
Doug Saunders.

The slogan of the new movement that is overtaking Europe's cities: "To make it safe, you need to make it dangerous." Iain Borden, director of the Bartlett School of Architecture in London and a leader of this new movement. Its members recently published an intriguing report titled "What Are We Scared of: The Value of Risk in Designing Public Space."

In recent months, a school of architects and urban planners has picked up disparate cues from the urban experiments taking place in northern Europe and given them a name -- risk. Our cities, they believe, are now designed predominantly to minimize risk, and this has made them dull, homogeneous, repetitious and, paradoxically, often quite dangerous.

(Risk is more than an intellectual puzzle — it invokes a profoundly physical experience. A small amount of danger surrounding the use of public spaces might act much like a vaccine immunizing the population against complacency).
Doug_Saunders  urban  design  risks  safety  public_spaces  counterintuitive  urban_planning  uncertainty  complacency  biology  psychology  dangers  life_skills  coming-of-age  risk-assessment  high-risk  low-risk  soul-enriching  physical_experiences 
october 2011 by jerryking

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