Shop Talk

Check Out Line: Oops, Britney designed her first clothing line

Check out the latest celebrity designed clothing line.

Pop princess Britney Spears is launching her own fashion collection that targets the schoolgirl crowd. (Editor’s note: Can I say I am relieved my daughter is only 5 and unaware of this development?)

Spears, whom Forbes magazine once ranked the most powerful celebrity in the world and still ranks No. 6, has designed her first collection of clothing and accessories for Iconix Brand Group’s Candie’s brand, for which she has been the face the past three seasons.

The juniors’ collection, called “Britney for Candie’s,” will be sold exclusively in Kohl’s stores starting July 1 to kick off the back-to-school shopping season. (Pencils, check. Backpack, check. Britney-designed little black dress, must have!)

“Designing was a really fun, new way for me to express my creativity and I really wanted to create something by me for my fans,” Spears said, adding the collection was inspired by her favorite music and movies.

Can Spears, who rocketed to fame as a teen 11 years ago with hits like “Oops …  I Did It Again” and “Baby One More Time” before suffering a high-profile meltdown in 2007 and early 2008 that included stints in psychiatric care, an ugly divorce, shaving her head and partying without panties, give Kohl’s a boost in the critical back-to-school shopping season? If all 5.2 million of her followers on Twitter come out, that would be a nice start.

Iconix will do its best to make Britney even more of a global brand name powerhouse as it plans to open specialty stores for the Candie’s brand in China.

Luxe CEOs bemoan encroachment of social media on privacy

No one wants it broadcast to the world when one is submitting to the indignities of airport security screening.

But that’s just what happened to luxury designer Tory Burch awhile back, when a fan tweeted to thousands that Burch was barefoot at the airport.  The upside, Burch said, was that the tweet and subsequent discussion gave her the idea to create a travel sock for women.

New business ideas notwithstanding, Burch told an audience at the National Retail Federation conference that social media was taking a toll on her.

“You want to maintain a level of mystique in a way, you don’t want to be accessible,” she said.  “Being the face of our brand I want to maintain a level of privacy … but  you have to stay interesting, be quippy and funny and not boring, but at the same time, not too personal.”

Fellow panelist Saks CEO Steve Sadove also finds there are limits to our electronic age. He recently went on Facebook but within a matter of minutes was besieged by friend requests and ran the other way. “No, this isn’t for me,” he thought. And don’t expect him to start tweeting any time soon, he told the audience of about 2,000.

He has reason to be skeptical: not long ago he went on holiday to Mexico with his family, and was none too pleased to see photos of himself at the beach on the web.

This holiday’s shiny new toy: social media

Companies that cater to consumers are always chasing after the latest consumer technology trend (anyone remember Second Life?), and this holiday season that means following them into the world of social media.

Companies ranging from Wal-Mart and Panda Express to J.C. Penney and Target are experimenting with Facebook, Twitter, YouTube or Flickr. Some are tweeting special coupons or limited-time deals, while others are doling out fashion advice or providing play-by-plays from product launch parties on Facebook. M.A.C. said it is using its Facebook page to feature artists, color collections, and what is happening backstage at fashion shows. 

While figuring out if all this tweeting, posting and friending is increasing sales is difficult, companies said one thing is certain: Social media is giving them a direct, unfiltered link to consumers.

For instance, when Target asked its Facebook fans what they thought of its mens clothing line, they got suggestions like: “MORE MLB, NFL, NBA merchandise…” and “Could use a better selection of mens jeans, and tall mens shirts (not just dress shirts) too.”

Target is now using the responses to tweak its merchandise selection.

When Panda Express wanted to celebrate its new SweetFire chicken breast, it allowed Facebook fans to print a coupon so they coud visit a restaurant on Sept. 25 and try it for free. Chief Marketing Officer Glenn Lunde said 25,000 coupons were redeemed and traffic in its restaurants rose that day. 

Larry Weintraub, the chief executive of marketing agency Fanscape, said that unlike traditional media, social media can give companies tangible results.

Social Media for Business

A new report by Inside Facebook discusses some best practices for retailers hoping to set up shop on the popular social networking site.

Some of the recommendations include letting users shop from within Facebook, including even the ability to share product information with friends.  Another suggestion is to have contests, giveaways and sweepstakes.

But what’s most interesting is the last suggestion: keep it simple with status updates.

Life is Good does. With simple status updates (much like the name of the brand itself), Life is Good elicits more pondering from its fan community. Their most recent update: “Whatever you are, be a good one.”

Expanding that to “conversation in general,” it seems that specific approach is the key between a social networking presence and a successful social networking presence.

One example from outside the industry is NASA, whose Twitter feed for the Mars Phoenix lander was a huge success.

Cola truce? Coke and Pepsi trade niceties on Twitter

Cola rivals Coke and Pepsi gave their long-standing feud a rest last week after a user-provoked experiment on Twitter prompted the two pop makers to trade friendly greetings on the popular social networking service.

Coca-Cola responded first to a clever user’s message suggesting that the two make nice on Twitter, offering “A gracious (yet competitive) hello” to Pepsi. In return, Pepsi extended a Twitter-style olive branch of sorts to its competitor: “Can rivals and tweeps coexist? We’re willing to find out. ” Tweeps, for those unversed in the lingo, is a cutesy term for Twitter users.

The whole episode began with the single Twitter message sent by a digital media consultant from a web marketing firm called Amnesia Razorfish based in Sydney, Australia, but quickly grew as other users got in on the fun and repeated (or “retweeted”) the message to their own friends and followers across the social network.

Within three hours of the original message being sent, Coke had fired off its friendly response and even decided to add Pepsi to its Twitter network. Pepsi took a bit longer to respond but wasn’t far behind in returning the virtual handshake.

Considering both companies’ long-standing commitment to the whole cola-war marketing scheme, such a quick decision to take part in the digital truce may come as a bit of a surprise. But what’s probably more illuminating about the viral affair is that it shows two companies with deeply established brands adapting their marketing strategies to the world of social networking.

Whether the whole incident actually compelled anyone on Twitter to go out and buy a bottle of Coke or Pepsi is less important than the essential message it sends to consumers – namely, that their brands are still fun and youthful.

Moreover, as people increasingly turn to the Internet for information and entertainment, companies are being forced to accept that they have less control over what information gets to consumers. In such an organic environment, top-down brand management no longer seems to be a sustainable strategy.

Food sellers: I’m no Twit!

Just when it seems like everyone is using Twitter, we learn that is not really the case. 

A panel discussion on Thursday at the CIES World Food Business Summit in New York featured four prominent industry leaders: Sara Lee CEO Brenda Barnes, Cargill CEO Greg Page, Kraft CEO Irene Rosenfeld and Jeff Noddle, executive chairman of grocery chain Supervalu. The conversation turned to how the panelists’ companies would stay relevant with the next generation of consumers.

Understanding Generation Y, whose oldest members are already in the work force, will be key to success in the future, said Noddle.  

Very broadly defined, Generation Y includes more than 70 million Americans born from 1977 to 2002.  

“They will measure their purchases on different criteria than those who came before them,” Noddle said, noting that younger consumers were more concerned with issues of sustainability and health. “We’re trying to understand that and trying to project how do you respond to that. Even though they may not have the dollar power today, they will. And I think that’s a critical element.”

Sara Lee’s Barnes agreed, noting that today’s younger consumers “grew up on the Internet” and that they “have every bit of information at their fingertips in a nanosecond.”

Moderator Bill Rancic, the first winner on Donald Trump’s “The Apprentice” reality television show, asked who on the panel was “tweeting” (and therefore a “twit”). 

Check Out Line: Signs of brighter days ahead?

Check out hopeful signs that the recession may be abating.

While recent reports showed slumping sales at many big-box retailers, there are other signs that the economy may be bottoming.

U.S. retail sales rose in May and the number of workers who filed new applications for jobless benefits last week fell for the fourth straight week.

The Commerce Department today reported that U.S. retail sales rose 0.5 percent in May, thanks partly to gasoline sales that jumped 3.6 percent. Meanwhile, the Labor Department said initial jobless claims fell to their lowest levels since Jan. 24.

Discount retailer Target has increased its quarterly dividend, Clorox did the same while also affirming its 2010 profit outlook and financial targets for 2013, and Del Monte posted far stronger-than-expected quarterly earnings and provided a better-than-expected 2010 forecast.

Not all the news has been hopeful, however.

While last month’s U.S. foreclosure activity ebbed from April’s record high, homeowners were still struggling to keep up with house payments and May foreclosure filings were the third-highest on record.

Live blog from the Wal-Mart investor meeting

Reuters is filing live updates from the Wal-Mart annual meeting via Twitter. You can read the news inside the box below, or follow us on Twitter.

Check out video of Ben Stiller’s opening act, KISS star Gene Simmons, and more!

Slump means market share gains in E-commerce

We know the U.S. recession is gloomy for retailers, online stores included, but at least a third of these e-commerce sellers say they’re taking greater market share amid the slump. 

That’s according to Shop.org and Forrester Research in a marketing study based on their annual State of Retailing Online report. Shop.org is a division of the National Retail Federation.

The survey of 117 online retailers showed that, despite the economic downturn, some 46 percent of respondents said they would spend as planned on their web businesses, with no scale-back of original budgets. Moreover, a quarter said they’d spend even more than originally planned, while fewer than a third said they’d spend less.

“As weak retailers disappear from the eCommerce landscape, companies that remain do have an opportunity to capture orphaned shoppers,” the report said.   Online retail has continued to outperform the brick-and-mortar retail environment, which has been hurt by lower mall traffic as shoppers try to avoid all but the most necessary shopping trips.      Analysts have pointed to Amazon.com as the online retailer finding the most success getting consumers to shop. With a strategy of lowered prices, increased selection and a discount shipping program, the Seattle-based e-commerce giant has managed to beat sales forecasts in its last two reported quarters.       In January, Forrester forecast a 11 percent jump in total U.S. online sales to $156 billion, representing 6 percent of the overall retail pie.      With a renewed push for customer acquisition — and retention — some 88 percent of retailers listed email communications as a high priority for 2009, higher than paid search, which is more expensive.      And, demonstrating the rise in popularity in sites like Facebook and Twitter, some 11 percent of retailers said that social media was an effective acquisition tactic.

(Reuters photo)

Check Out Line: Billions for bottlers

Check out the multibillion bid for bottlers.

PepsiCo is offering about $6 billion to buy the shares it does not already own in its two largest bottlers, Pepsi Bottling Group and PepsiAmericas, to cut costs and secure control of its brands as growth switches to new noncarbonated drinks.

Pepsi‘s plan to consolidate its bottling business underlines an industry trend and would give it control of 80 percent of its North America beverage distribution volume.

“Non-carbonated drinks, which have different economics and different distribution systems than carbonated soft drinks, have become a much bigger factor in the industry and in our own portfolio,” PepsiCo Chief Executive Officer Indra Nooyi said in a statement, adding that the deal will improve its competitiveness and growth prospects. 

“The main driver of this deal would appear to be synergies which are estimated to be over $200 million pre-tax and include: reducing redundancy costs, scale efficiencies and realizing new revenue opportunities,” said Citi analyst Philip Morrisey.

PepsiCo also reported better-than-expected quarterly results and reaffirmed its outlook for the year. But the outlook does not include the impact of the proposed bids for its bottlers.

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