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Tag: luxury brands

  • Mr. Wonderful on Quiet Firing and His Passions for Watches | Entrepreneur

    Kevin O’Leary, also known as Mr. Wonderful, is one of the original Shark Tank sharks who, since 2009, has made the dreams of some entrepreneurs come true and sent others home in tears. The 17th season premieres in about two weeks, and if my conversation with him for our show, How Success Happens is any indication, time has not mellowed this man.

    He calls b.s. when he sees it, but he isn’t a hater. As fast as O’Leary is to declare “I’m out!” he also doesn’t hesitate to throw his full energy behind the things he loves. If you follow Mr. Wonderful on social, you know he loves watches. WORSHIPS watches. We talked about where his passion for collecting rare timepieces came from and how that obsession led to his latest venture, WonderCare, a partnership with the 1916 company.

    We also talked about the one investment his wife told him he was “out of his mind” for making (a record-setting winning $12.9 million auction bid on a basketball card,) his thoughts on management tactics, how he keeps his energy up, and the worst mistake he sees people make over and over again in entrepreneurship.

    You can watch our entire conversation above or listen here, and check out below for some truly wonderful highlights.

    Subscribe to How Success Happens to get a dose of inspiration twice a week! Apple | Spotify | YouTube

    Give the Crap a Rest

    The number one thing hurting most entrepreneurs’ ability to stay focused and energized? “Shit food,” says O’Leary. “You don’t know how bad that crap is for you until you stop eating it, and then you feel incredible.” He tells anyone he meets to try the Yuka app, which scans barcodes of packaged foods and tells you if you really want it in your body or not. He also stresses exercising your mind by doing things out of your comfort zone. “The producers of the upcoming film Marty Supreme called me and said, ‘Look, we’ve got a part in a movie for you and we’re looking for a real asshole and you’re it.’” O’Leary has never done scripted entertainment before and jumped at the challenge.

    Takeaway: If you want to stop feeling like garbage, stop eating garbage.

    Great Customer Service = Great Profits

    Responding to a listener question about maintaining margins, O’Leary offers: “Customers covet one thing more than anything, service and support. …If the minute they call you, you fix it that same day… they’re not going to quibble about the bill.” He compares this to Apple’s ecosystem: “I worked for Steve Jobs way back in the early ’90s. Not a nice guy, but he taught me so much. He said, ‘I don’t need to do market research. They don’t know what they want till I tell them what they want.’ I said, ‘Steve, you sound like such an asshole.’ But he was right. He said they want a great product with fantastic service.”

    Takeaway: Superior service commands demand—invest in happy customers, not endless discounts.

    Success Demands Resilience, Not Certainty

    Mr. Wonderful warns founders against falling in love with their own projections: “The road to success in entrepreneurship is a journey, it’s not a destination… Stuff you never saw coming at you, boom, it hits you. You need to be flexible.” He values founders who own their failures: “When you fail, it’s your fault. You screwed up. Own it and learn from it and don’t do it again. Then you get me to invest in you.”

    Takeaway: Build flexibility into your business and see failures as critical learning opportunities.

    Christopher Willard | Getty Images

    Kevin O’Leary, also known as Mr. Wonderful, is one of the original Shark Tank sharks who, since 2009, has made the dreams of some entrepreneurs come true and sent others home in tears. The 17th season premieres in about two weeks, and if my conversation with him for our show, How Success Happens is any indication, time has not mellowed this man.

    He calls b.s. when he sees it, but he isn’t a hater. As fast as O’Leary is to declare “I’m out!” he also doesn’t hesitate to throw his full energy behind the things he loves. If you follow Mr. Wonderful on social, you know he loves watches. WORSHIPS watches. We talked about where his passion for collecting rare timepieces came from and how that obsession led to his latest venture, WonderCare, a partnership with the 1916 company.

    We also talked about the one investment his wife told him he was “out of his mind” for making (a record-setting winning $12.9 million auction bid on a basketball card,) his thoughts on management tactics, how he keeps his energy up, and the worst mistake he sees people make over and over again in entrepreneurship.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

    Dan Bova

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  • 3 Reasons to Buy Ulta Stock Like There’s No Tomorrow

    3 Reasons to Buy Ulta Stock Like There’s No Tomorrow

    Investing isn’t always rational. It seems logical that you’d want to buy a stock that’s climbing. That implies it’s doing well and that there’s reason to be confident in its future potential. Sometimes, this is the way to go.

    But if a stock is already demonstrating high gains, that could indicate it’s reached a peak. Conversely, stocks that are tanking could be the key to investing success with a rebound. It could be a risky strategy unless there are valid reasons to believe it could stage a strong comeback.

    When a stock with every reason to outperform is tanking, that’s an opportunity. Ulta Beauty (NASDAQ: ULTA) is a fantastic stock that typically beats the market and has incredible future potential, but it’s down 19% this year. Here are three reasons to buy it hand over fist right now.

    1. The differentiated model

    Ulta has built itself into a powerhouse cosmetics business by breaking all of the rules. It brings together luxury and mass brands, whereas the traditional setup divided those two segments into completely different markets. Ulta’s management recognized that the core “beauty” enthusiast shops from both of these segments, and that offering them altogether under one roof was an untapped opportunity. It says that 66% of buyers are these enthusiasts, and they account for 83% of total sales.

    Another way it stands out is that it offers services. Other brands all operate similar models: Luxury brands are carried in department stores, and mass brands are sold in pharmacies and supermarkets. Many brands have direct-to-consumer physical stores, a recent development in the world of cosmetics, and today most brands also have digital direct-to-consumer channels. None of these setups are conducive to offering services the way Ulta’s large stores are, and services are a key element of its model. People who come in for services, like hair or nail design, are much more likely to also walk out with products. It’s a flywheel effect that leads to greater loyalty and higher sales.

    Today, Ulta carries hundreds of brands across demographics, in addition to its own brands, to tap into this customer, and loyal beauty spenders are its main market. Ulta has 1,375 stores across the country, and it’s has launched a successful rollout of stores-within-stores at select Target locations.

    It had 43 million members at the end of 2023, an increase of 3 million over 2022, and these members account for an incredible 95% of sales. That provides Ulta with tremendous data to use in creation of its agenda and the ability to understand and meet demand.

    2. Don’t mistake its profitability

    One of the factors that have led to Ulta stock’s decline is a pressured operating margin. Ulta is feeling inflationary pressure in a number of ways; sales crept up 3.5% up from $2.6 billion last year to $2.7 billion this year in the 2024 fiscal first quarter, ended May 4, with a 1.6% increase in comparable sales. Earnings per share (EPS) fell from $6.88 last year to $6.47 this year, and operating margin dropped from 16.8% to 14.7%. Management lowered its outlook across the board.

    It’s important to keep in mind that Ulta carries zero debt and generates steady free cash flow. These are positive qualities that mean it’s in no financial danger and is operating efficiently. The drop in profitability is an outcome of external factors, and the company is rolling through a challenging time.

    All companies will face challenges at different points in time. Investors shouldn’t panic sell because of a difficult quarter–or even several. If the investing thesis is intact, and management is effectively dealing with short-term hiccups, hanging on will reward you in the end.

    For new investors, the challenges can create a buying opportunity. Read on.

    3. The dirt cheap price

    At the current price, Ulta trades at a dirt cheap forward 1-year price-to-earnings multiple of under 14. That’s a bargain when put into the context of Ulta’s potential.

    This is the principle behind value investing. Value investors look for stocks that could be undervalued and will likely rise to meet their real value.

    Ulta is a well-run company with a long-term competitive advantage in its differentiated model that targets the beauty enthusiast. It’s trading at a discount, and now is an excellent time to buy shares.

    Should you invest $1,000 in Ulta Beauty right now?

    Before you buy stock in Ulta Beauty, consider this:

    The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ulta Beauty wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

    Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $808,105!*

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    Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target and Ulta Beauty. The Motley Fool has a disclosure policy.

    3 Reasons to Buy Ulta Stock Like There’s No Tomorrow was originally published by The Motley Fool

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  • ChatGPT Is Changing At Least 1 Industry. Yours Could Be Next. | Entrepreneur

    ChatGPT Is Changing At Least 1 Industry. Yours Could Be Next. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    What if you could chat with your favorite luxury brand and get personalized recommendations, discounts, and insights? Sounds too good to be true, right? Well, not anymore. Thanks to ChatGPT and other AI chatbots, the luxury retail industry is undergoing a radical transformation that is creating new opportunities for brands and consumers alike.

    ChatGPT is a state-of-the-art AI chatbot that can generate natural and engaging conversations with human users. It was developed by OpenAI, a research organization dedicated to creating artificial intelligence that can benefit humanity. ChatGPT can understand the context, tone and intent of the user’s messages and respond accordingly. It can also adapt to different domains, personalities and styles, making it a versatile and powerful tool for various applications.

    ChatGPT and other AI chatbots are transforming the luxury retail industry and creating new opportunities for brands and consumers, but several benefits and challenges lie in wait.

    Related: What Does ChatGPT Mean for the Future of Business?

    Benefits of ChatGPT

    ChatGPT can help luxury brands enhance customer service, engagement, loyalty and sales. Here are some of the ways it can benefit them:

    • Provide 24/7 customer support and answer common queries, such as product information, availability, delivery or returns. This can reduce the workload of human agents and improve customer satisfaction and retention.
    • Offer personalized recommendations and suggestions based on the user’s preferences, behavior and feedback. This can increase customer engagement and conversion rates, as well as upsell and cross-sell opportunities.
    • Create a unique and memorable brand voice and personality that can resonate with the user and reflect the brand’s values and identity. This can enhance the brand’s image and reputation and foster customer loyalty and advocacy.
    • Collect and analyze customer data and feedback and provide valuable insights and trends for the brand. This can help the brand improve its products, services and marketing strategies and optimize its performance and profitability.

    Chatbots are being well embraced by the market, and rightly so. According to a report by Juniper Research, AI chatbots are expected to save businesses $8 billion per year by 2022 and generate $112 billion in retail sales by 2023. Moreover, a survey by Capgemini found that 74% of consumers who have used AI chatbots are satisfied with their experience, and 48% of consumers are willing to spend more when their queries are resolved by chatbots.

    Related: Here’s How Your Business Can Use 3 Popular AI Content Creation Tools

    Challenges of ChatGPT

    Although ChatGPT offers numerous benefits for luxury brands, there are also some potential challenges to consider. Privacy and security are among the most significant concerns, as ChatGPT can collect and store sensitive customer data, such as personal information, preferences or feedback. This could expose the brand and customer to data breaches, hacking or misuse by third parties, putting both parties at risk.

    In addition to privacy and security concerns, ChatGPT may raise ethical and social issues for luxury brands. It can potentially deceive or manipulate users into believing it is a human with genuine emotions and opinions, eroding the trust and authenticity of the brand and customer relationship. This can create ethical dilemmas and conflicts of interest that could damage the brand’s reputation in the long run.

    Furthermore, ChatGPT may also compromise the quality and consistency of the brand and customer experience. It can generate inappropriate, inaccurate or offensive responses, or it may not be able to handle complex or specific queries, frustrating or alienating customers. This could damage the brand’s reputation and credibility, making it challenging to regain customer trust and loyalty.

    Dealing with the new challenges

    To address these challenges, luxury brands can implement various solutions and best practices when using ChatGPT. First and foremost, regular testing, monitoring and updating of the chatbot are essential to ensure accuracy, reliability and relevance. Any bugs or errors must be identified and addressed promptly to maintain the chatbot’s performance and effectiveness.

    Another critical consideration is data protection and security. Luxury brands must implement strict measures to safeguard customer data and privacy and ensure compliance with relevant laws and regulations. This may involve encrypting customer information, limiting access to authorized personnel and regularly auditing the system to identify vulnerabilities.

    Being transparent with customers about using an AI chatbot is also essential. Brands should disclose that they are interacting with a chatbot and provide an option to switch to a human agent if needed or requested. This will help build trust and maintain customer satisfaction.

    Finally, luxury brands must establish clear guidelines and policies for using ChatGPT. This will ensure that the chatbot’s responses are aligned with the brand’s values and goals and that customers receive consistent and high-quality interactions.

    Related: ChatGPT Just Got a Game-Changing Update — Here’s What to Know

    How ChatGPT is in action for luxury brands

    ChatGPT has become an increasingly popular tool for luxury brands to engage with customers in a more personalized and efficient manner. There are some successful and innovative cases of luxury brands utilizing this technology, demonstrating the value of ChatGPT in enhancing customer experience and driving business growth.

    Elevate, a luxury fashion brand created with ChatGPT, and Midjourney, a platform that connects designers and AI, are two names that have emerged in this space. Elevate is a fictional brand showcasing how ChatGPT can help with brand creation, from the design brief to the visual elements to the marketing strategy. Its chatbot can interact with customers and provide them with information, recommendations and feedback on the brand’s products and values.

    China’s retailers are eyeing the potential of ChatGPT and other AI chatbots to improve their customer conversion rate and engagement. China’s tech giants, such as Alibaba, Tencent and Baidu, are racing to introduce similar services to ChatGPT, which is taking the internet by storm.

    ChatGPT and other AI chatbots are transforming the luxury retail industry and creating new opportunities for brands and consumers. ChatGPT can help luxury brands enhance their customer service, engagement, loyalty and sales, as well as create a unique and memorable brand voice and personality. However, it remains to be seen how brands manage to accumulate customer attention and preserve their loyalty at a time when the AI-geared stage is set for all.

    Portia Antonia Alexis

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  • Cadillac’s $300,000 Electric Car Is Already Sold Out Until 2025

    Cadillac’s $300,000 Electric Car Is Already Sold Out Until 2025

    The new ultra-luxury, all-electric Cadillac Celestiq goes into production in 2023, but you’ll have to wait until after 2025 to own one—if you’re lucky.

    Tony Roma, Celestiq’s chief engineer, told Autoline, “We already have a few hand raisers, like many, many more than we’re going to be able to build in the first year or 18 months…It’s a fantastic problem to have.”

    The Celestiq has a price tag of over $300,000, the most expensive Cadillac ever sold. Each model will be hand-built to the exact specifications of each customer.

    But not just any baller with a big bank account can buy one.

    Cadillac has to vet potential buyers first. Once accepted, “clients will be led through a design consultation process by a concierge along with their Celestiq dealer of choice who is dedicated to guiding them through every aspect of the journey,” according to Cadillac.

    Some nifty features include:

    • 200 kW DC fast-charging system that can add up to 78 miles of range in only 10 minutes.
    • 600 hp all-wheel-drive powertrain
    • Remote Auto Parking allows the vehicle to detect a parallel or perpendicular parking space and guide itself into the space.
    • Four-wheel steering
    • 55-inch-diagonal advanced HD display
    • Ultra Cruise allows drivers to drive autonomously 95% of the time.

    Related: The 5 Most Luxurious Electric Cars on the Market That Will Make You Want To Skip On Gas

    Jonathan Small

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  • Qatar’s Hamad Airport Unveils Extravagant Luxury Showcase Just Days Before FIFA World Cup

    Qatar’s Hamad Airport Unveils Extravagant Luxury Showcase Just Days Before FIFA World Cup

    Grand garden designs are all the rage in airports at the moment. Regular travelers may be familiar with Singapore Changi Airport’s Jewel, which opened before the pandemic, while the new terminal at India’s Bengaluru Airport also offers large expanses of greenery.

    Possibly outdoing both of them is Qatar’s Hamad International Airport (HIA) in Doha. Its latest expansion has transformed the terminal into an indoor tropical oasis, complete with a 6,000 square foot water feature and a luxury line-up of branded boutiques in very close proximity that few capital cities could match. All of it just before the FIFA World Cup kicks off on November 20.

    Called The Orchard, the 65,000 square foot garden—filled with more than 300 trees and over 25,000 plants sourced from sustainable forests around the world—sits at the center of the futuristic terminal expansion. Around it on the upper floor, the airport’s retailer, Qatar Duty Free, has managed to attract a roll call of the world’s biggest luxury names in some pretty stunning digital boutiques.

    Two of the best are from Louis Vuitton and Fendi, but also present is the first Dior store at HIA, the first Thom Browne store in an airport plus Boss, Bulgari, Burberry, Gucci, Moncler, Montblanc, Omega, Polo Ralph Lauren
    RL
    , Tiffany, Zegna and more. A FIFA shop is also present as is the largest Ray-Ban store in an airport.

    HIA had been named Skytrax’s world’s best airport for two years running before this latest addition. Together with Qatar Duty Free, both operations are subsidiaries of Qatar Airways Group whose CEO, Akbar Al Baker, said that the airport had grown to become “the ultimate example of a successful, sustainable global facility.” He added: “The environment here speaks for itself; it is unmatched anywhere in the world.”

    Well-timed opening

    With the FIFA World Cup dogged by controversy, Qatar Airways is ensuring it is on top form during the lead-in to the event, and during it, to avoid more negative commentary. As well as timing the reveal of the new extension and its upscale shopping perfectly, it has also put in place contingencies to cater to the influx of air travelers who, it is hoped, will be a source of significant extra retail revenue in the coming weeks.

    At a press conference on Thursday, Al Baker reminded the media that Qatar’s former lead gateway, Doha International Airport, has been fully activated since September 15. The facility is taking all point-to-point traffic to the city as a way of easing the pressure on HIA. To be doubly sure of no capacity issues, Qatar Airways has “flattened the peak” at the hub by cutting 18 destinations during the period of the tournament.

    Al Baker did hold back on the criticism that has come Qatar’s way in recent days, saying: “People cannot accept that a small country like Qatar has won the world’s largest sporting event. Congratulations to my beloved country. This extension mark a milestone in our FIFA journey which we have all been looking forward to for the past 12 years.”

    The expansion takes HIA’s capacity up from 40 million passengers to 58 million annually. Future expansions will enable the gateway to handle 75 million travelers and the first phase of those will begin in January 2023 by extending the concourses on either side of The Orchard and which may allow for yet more retail facilities.

    These developments, along with the high-end retail offer, reinforce HIA’s position as a global connecting air hub with 150 destinations and growing. The shopping and service elements are also drivers of non-aeronautical revenue, and profitability in particular. Qatar Airways Group does not break out its retail income but in the year ending March 2022, overall sales exceeded the same period to March 2020, while the group swung from a huge loss of over $4 billion in FY21 to a profit of $1.5 billion in FY22.

    Prior to opening The Orchard, HIA had just over 430,000 square feet of duty-free and concession space housing more than 90 luxury and accessible stores, as well as more than 30 restaurants and cafés. The expansion project has delivered an additional 126,000 square feet of retail and F&B.

    Kevin Rozario, Contributor

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