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Should Abercrombie & Fitch go transatlantic?

An interesting point of view from Annalisa Barbieri in online magazine, The First Post. She sees the arrival of Abercrombie & Fitch to the UK as potentially damaging for the brand.

And she may have a point. A&F has a huge following in Europe. Popularised by the gay scene, which appreciated its sexualised marketing literature (the firm pulled its racy cataogues in 2003 after complaints), the label percolated into a broader consumer culture of young transatlantic travellers or those of such aspirations. Whilst now somewhat passé for trend-conscious gay men, A&F still communications a certain distinction in style and attitude among the mainstream.

One store off London’s Savile Row is probably exclusive enough to maintain the brand’s standing, but it’s likely to be mobbed by fashionistas of relaxed taste. While that’s cool in the short term, once everyone’s got their hands on a chest/breast/crotch emphasising garment (their clothing really does push these benefits), the attraction will soon wane.

If A&F expands beyond the rarefied retail district of the West End, it could become an also-ran. As ubiquitous and dull as GAP. Managing its transatlatic expansion by translating the brand effectively for new audiences will be vital if it is to retain its valuable lifestyle appeal.

Campaign for "Little Britain"

British expat entrepreneurs Nicky Perry and Sean Kavanagh-Dowsett have launched a campaign to rename a quarter of New York as “Little Britain”. The pair own a shop and restaurants in the city’s Greenwich Village district that is home to nearly two-dozen British owned or themed businesses. Like Chinatown, Koreatown and Little Italy, they believe that the name of the area should reflect its assumed national character.

A website, www.campaignforlittlebritain.com, has been launched, tongue in cheek posters have sprung up in the area and a viral video has be uploaded onto YouTube (you can see it here - worth a look). They’ve also enlisted the support of fellow British entrepreneur, Richard Branson, who has put the weight of Virgin Atlantic behind the effort. A petition, available via the campaign website, will close on 1st May and the results will be presented to a local community board and then to Mayor Michael Bloomberg.

With a well planned campaign and the backing of a major brand, SwelledHead thinks Little Britain could be in with a chance. The major sticking point could be that, unlike the other “little nations” that punctuate New York, Little Britain is essentially a commercial gimmick rather than a reflection of immigrant heritage. That said, the area is now adopting a distinctive character that is attractive to locals and tourists alike. A commercially minded mayor like Bloomberg may well consider that this is reason enough.

One snide aside from back in Blighty – have Nicky and Sean not see the BBC comedy series, Little Britain? Its popular catchphrases, such as “yeah but, no but” and “I want that one”, have entered the vernacular. The connotations however, are hardly positive. Britons visiting New York’s Little Britain may be a little perplexed to find quaint tea rooms and fish & chips, rather than vomiting Tory ladies and Lou & Andy.

It's official: London is better than New York - and other links

No really - New York says so itself. Well, New York Magazine more precisely, which says "London is shaping up to be the capital of the 21st century."

• London 21st century capital: http://nymag.com/guides/london/29431/

The same publication also asks if London is taking over as the world's financial capital and debates whether its dining and dinner guests have more to offer.

• London, the world's financial capital? http://nymag.com/guides/london/29440/
• London, the world's dining capital? http://nymag.com/guides/london/29444/
• London, the world's dinner guest capital? http://nymag.com/guides/london/29432/

And if having the best in terms of money, food and everything else wasn't enough, how about having the best voices, too? Stephen Fry has claimed that Americans are too easily taken in by a British accent. BBC News Online Magazine looks into the matter.

• London, the world's best accents? http://news.bbc.co.uk/1/hi/magazine/6470095.stm

Finally, if this excess of praise has put you off, it now looks as though it will become easier than ever to espace the world's best of everything. The European Union has backed a controversial deal to open up transatlantic air travel. It should mean greater competition and therefore lower ticket prices, but some say it leaves the US market unfairly protected, including the continued prevention of foreign ownership of its airlines.

• London, the world's best flight options? http://news.bbc.co.uk/1/hi/business/6477969.stm

Gü would be perfect for the U.S. chocoholic

This post inaugurates a new category for transatlantic brand marketers – brands that should make a transatlantic crossing. These are companies and products that Swelled Head has been exposed to that we believe will make the jump with little or no explanation – or if an explanation or brand translation (a proprietary process at Austin Lawrence Group) is needed, will be worthwhile. The main qualification for a brand that should go transatlantic is that it is unique, will appeal to the consumer/customer on the other side of the pond and has reasonably good marketing and brand mythology already behind it. So, here’s our first one.

Gü puds (puddings) are a UK brand that seems to have a unique claim on the super premium position in the ready-to-serve and heat-and-eat segments of the dessert category. A sister brand, Frü, was recently announced, for fruity desserts. I had my first experience with Gü on Virgin Atlantic’s flight from Heathrow to JFK in early March, and I must say that I am a convert. Beyond puddings, the firm makes fondue, soufflé, brownies and more. What is consistent (at least for Gü brand) is chocolate. Lots of it.

The ingredients list for the pudding I had on Virgin is basically all stuff you have in your kitchen if you cook or bake at all. There is a preservative, potassium sorbate (considered a very mild additive that you’ll find in a lot of places including wine), but everything else that goes into Gü is completely recognizable. And then, there’s the taste. It’s simply divine. And as a confirmed chocoholic, I speak from a position of expertise and experience on the matter.

This isn’t a complicated proposition, and there are good analogs for Gü to consider if it does make the jump to the U.S. Häagen-Dazs invented the super-premium ice cream category in 1961 and achieved incredible success – and near-icon status in the U.S. As I write, I don’t think anyone is packaging super-premium puddings in the U.S., certainly not with any significant market penetration. What we have are Jello and Hunt's puddings in our refrigerated case and traditional mixes in the baking aisle; they are just nothing to write home (or a blog) about. Gü, on the other hand, could be gigantic. Once it achieves some traction here with its puddings, it’s off to the races with the rest of the product line. Swelled Head says, "give us our Gü!"

Want to know more? Visit Gü at www.gupuds.com.

How many airlines can NY-LON support?

The recent launch of Silverjet into the New York to London business class segment had me wondering how many transatlantic business-class airlines made sense. Also, as a transatlantic marketing pro, I just had to ponder the marketing and branding implications on the existing NY-LON upstarts, Eos and MAXjet.

Silverjet is clearly putting pricing pressure on MAXjet. In my email two weeks ago, I received a tempting offer of $499 one-way fares for all MAXjet transatlantic routes (plus $148 in fees). Eos has business model issues of its own with only 48 seats on a plane that ought to hold 65 to 70 with lie-flat seats. On the other hand, Eos’ expansion to three flights daily between New York and London provide business travelers more reasons to select Eos and a path to generate critical mass in the market.

SwelledHead talked with Henry H. Harteveldt, Vice President & Principal Analyst, Travel Research, at Forrester Research, to gain insight into the dynamics of the transatlantic airline business.

"There is room for the three upstarts in the New York to London market," said Harteveldt. "The majors haven’t responded as quickly to the threat from these players as we might have thought, with BA for example opening routes to Stansted. And there could even be room for a transatlantic JetBlue; whether that’s JetBlue itself or another airline that goes to market with similar brand values." And pricing, while a bit more competitive, is likely to remain at levels that generate fair returns. Harteveldt added, "Our research shows that 1 in 3 leisure travelers are what we call quality-focused travelers, and among business travelers it’s 4 in 10. If the global economy remains healthy, these numbers are likely to grow."

When pressed on the issue of relevancy of these new airlines to the business traveler and their ultimate viability, Harteveldt said, "Part of the challenge for Eos, MAXjet, Silverjet and L’Avion [which just started flights between New York and Paris, with plans to expand to the Middle East, Persian Gulf and Eastern Europe], is that you need to reach a critical mass to provide the utility the traveler needs. JetBlue would be nothing if it hadn’t expanded beyond its initial routes…its impact would be de minimis. The brand has to offer utility to its customer…must represent value and meet emotional and rational needs. In the case of MAXjet, they haven’t mispriced the product, but missed opportunities. Perhaps they would have been better off not adding other airports, but greater frequency to London and new routes from JFK to destinations such as Paris, so it represented greater utility from New York…then added flights to Las Vegas and California to add utility for domestic and international travelers."

SwelledHead’s take on the new competition in this segment is that MAXjet will be forced to reduce its prices on routes where it competes with Silverjet. The MAXjet seat just isn’t as nice (you can’t lie flat). Silverjet will usurp the "premium economy" price point of about $1500 roundtrip. To Harteveldt’s point about a "JetBlue" type airline for this segment, this may be where MAXjet’s best bet lies. The formula seems a lot like JetBlue when you think about it. Decent seats, competitive prices, good service (MAXjet seems to actually care about its customers) and a hip outlook on the business. With a minor change to its strategy, MAXjet could cede the higher price points to SilverJet and Eos, add frequency and destinations, and probably carve a great business out of the most profitable transatlantic routes.  Eos will likely find that it cannot hold premium prices in the face of Silverjet's aggressive push; in fact, I've seen offers in the American Express rewards program where one can use only 85,000 miles for a rountrip on Eos (for comparison, I recently traveled Virgin Premium Economy for 67,000 miles roundtrip and it's nowhere near as luxurious as Eos).

The net result of this increased competition is likely to be greater access to remote markets and more in-person meetings for transatlantic business executives. Harteveldt also sees the possibility of increased real estate sales in markets served by these airlines: "in Europe, budget airlines have fostered the sale of property in warm weather destinations. In the U.S., JetBlue has done the same for ski properties in Vermont. It won’t be long before you consider a flight across the Atlantic as anything different from a domestic flight."

SwelledHead’s faithful reporters are already eyeing country retreats in the south of France and Las Vegas.