by: Geoff Ficke

How Did One of the Fashion World’s Earliest Great Innovators Lose Everything by Lack of Innovation

It is startling to study an empires crumble, decline and ultimately perishing on the ash heap of history. It happened to ancient states such as Egypt, Rome, Athens and Macedonia. The Knights Templar had been the world’s pre-eminent military and financial colossus in the Middle Ages but they are no more. In more modern times we have seen the commercial decline and disappearance of Horn & Hardart Restaurants, A&P Food Stores and numerous department store chains such as Jordan Marsh, John Wannamaker, Woodrow & Lothrop and Montgomery Wards. Major airlines and automobile companies were launched, soared and then failed.

The scale of these failed enterprises was often so great that it is hard for observers to get their hands around all that went wrong and caused these spectacular failures.  Recently I was reviewing a fashion treatise and read about a long ago innovative pioneer of Haute Couture who became an icon of his age before losing everything in one lifetime. The tale is cautionary. 

Paul Poiret was born into poverty in Paris in 1879. At an early age he was apprenticed to an Umbrella maker. The odd bits of fabric cuttings that were tossed as waste interested Poiret, and he began to take them from the trash. He used this detritus to fashion clothes for his sister’s dolls. Each dress was accompanied by a pattern that he drew and saved. 

While still a teenager Paul Poiret took his pattern drawings to Madeline Cheruit, one of the grand dames of Parisian fashion in the late 19^th century. She bought 12 of the drawings for reproduction in her atelier. Sensing opportunity, the young Poiret began to sell all of his patterns to the various Paris garment houses. In 1896 he was hired to design for the prominent Jacques Doucet. Poiret’s first creation for Doucet was a red cape which sold 400 pieces. 

Mr. Poiret established his own fashion house in 1903 and made an immediate impact with his unusual for the time “kimono coat”. The shop became famous for stunning window displays, fabulous parties tied to each seasons collections and Poiret’s pioneering use of modern Branding and Marketing techniques. The garments he produced were very expensive for the day and only the most discerning clientele purchased from the House of Poiret. 

Poiret expanded into Furniture, Household Décor and, most importantly Fragrance. He was a pioneer in Licensing his name. The entry of a fashion house into the Perfume business was also a first and would set a precedent that created one of the most successful Marketing Strategies and Sales Models still in wide use to this day. In 1911 Poiret’s Parfums de Rosine was launched and the world of Haute Couture and Perfumery would never be the same.

Parfums de Rosine was launched and publicized by throwing an extravagant Persian themed soiree at Paul Poiret’s palatial Parisian estate home. The news coverage of the event and the perfume that inspired the party is evocative of promotional techniques still used today to introduce Luxury Goods. 

Also in 1911, the photographer Edward Steichen collaborated with the House of Poiret to photograph a collection of gowns and accessories. The photos were published in various magazines. This is considered the first use of “Fashion Photography”. Prior to this fashion was illustrated when placed in print. 

Poiret’s most famous design contribution to garment production was a technique he created called “draping”. This was a radical departure from the more rigid Tailoring and Pattern Making methods used in the past. This style of sewing enabled Poiret to create loose, softer looks like Harem Pantaloons, Lampshade Tunics and Hobble Skirts. Most appreciated by women seeking comfort was Poiret’s elimination of the ubiquitous, restrictive, uncomfortable corset from his collections. 

During World War I Paul Poiret worked for the French military making uniforms. When the war ended, he returned to his fashion house and found it in ruins. He worked hard to resurrect his glory years. However, while he was away serving the war effort, other designers had emerged and they utilized more modern styling and garment construction techniques. Poiret’s designs had always been visually unique but were not well constructed. As he had once famously said he only aimed for his dresses to be “read beautifully from afar”. He continued to work in his old way. 

New designers, notably Coco Chanel, House of Worth and Elsa Schiaparrelli, had begun to offer simpler, sleeker silhouettes and their work employed far better construction than did Paul Poiret’s. As clients fled to the newer fashion houses Poiret suffered further loss of financial supporters and was forced to close his couture house in 1929. Poiret was bankrupted. Upon liquidating inventory the House of Poiret suffered the indignity of having leftover clothing sold by the kilogram for use as rags. 

Until his death in 1944 he lived as a pauper in the streets of Paris. His genius had been forgotten. Occasionally he would be seen by his contemporaries painting street scenes to eke out a few Francs before eyes would be diverted from the discomforting vision of a past hero of French Haute Couture being so dramatically reduced. 

Paul Poiret during his early career was attributed with being the fashion equivalent of Pablo Picasso in art. He introduced “modernism” to Haute Couture”. For a short time he lived as a potentate and enjoyed vast fame, fortune and popularity. Then it was all gone. What happened?

In the worlds of style, fashion and consumer products you are never the greatest, only the latest. The Companies and Brands that last and pass the test of time constantly evolve. The House of Poiret did not. Styles had changed, consumer tastes changed and the increased demand for better quality product required more attention to detail. Poiret still produced clothing with a “look” that screamed Poiret, but no longer excited the most exclusive, wealthiest clientele that had supported his House in the beginning. He did not evolve and grow. 

Ancient Rome stagnated and died of lechery. Juan Trippe built the greatest airline in the world, PanAm. After his passing PanAm went into a long, slow decline and is now permanently grounded. The grand Cosmetic Brands Frances Denny, Hazel Bishop and Germaine Monteil are no more. Bonwit Teller, once one of the world’s best specialty department stores, was liquidated years ago. These entities, like the House of Poiret, enjoyed their time in the sun but did not stay current, adjust to social or market realities and all disappeared.

by: Geoff Ficke

Seek Out Honest Criticism of Your Business Plan And Learn to Accept and Act on It! 

Four decades ago I studied a college course in English Literature. W. Somerset Maugham’s famous novel “Of Human Bondage” was required reading. It was a bit of a slow go, but one line has stuck in my cranium and been of particular use in my business career; “People ask you for criticism, but they only want praise”. 

No one really enjoys being criticized. Criticism can be deflating and trigger a wide range of human responses ranging from defensiveness to aggression. Most people cannot see themselves as others see them. Pointing out a person’s personal shortcomings can be mean even if the comment made is true. 

If I tell a lady that her makeup is garish, while the point made may be accurate, I risk hurting a relationship we may have had by stating what I see to be obvious. I might tell a baseball shortstop that he is lousy at turning double plays. The shortstop has two options: he can disregard my observation and continue to play as before, or he can work harder to perfect his fielding skills. It is in business matters that criticism needs to be sought out, analyzed and acted upon, if the points made emanate from a valued source. 

My Consumer Product Development and Marketing Consulting firm reads hundreds of Business Plan proposals and reviews countless New Consumer Product submissions every year. Probably 80% of these ideas for new products and enterprises we dismiss out of hand for a variety of reasons. The other 20% we review in more detail and find that many actually do possess real commercial possibilities. Still, only a handful of these will move into development stages.

Why is this? 

There are numerous reasons why a project successfully makes it to market and 75 others go nowhere. One of the biggest is that successful entrepreneurs learn to accept, understand and act upon criticism that is given by experienced critics. Most people cannot accept criticism of a product or project that they have invested energy, time and creativity into developing. A comment we often make is that the entrepreneur “has fallen in love with their product” when they cannot tolerate pointed observations. 

Love is an impossible to quantify emotion. Successful business opportunities are highly quantifiable. There are costs, margins, plans, goals. The Business Plan is the skeleton of the proposed enterprise. If the plan, read skeleton, is flawed, the enterprise is doomed. The best time to discover flaws is when the business is in concept form and changes can be easily made and incorporated into evolving strategies. “People ask for criticism, but they only want praise”.

I cannot remember the last time I read a Business Plan that did not require revision(s). When I write Business Plans for client projects I usually wind up editing the proposition several times at a minimum. I always ask others, those whose opinions I hold in high regard, to critique the document. We then discuss their points of criticism and come to the best possible solution available to address and overcome issues. 

Recently I was presented with a wonderful Gourmet Food & Drink Accessory product prototype and Business Plan. The item possessed the almost perfect utility of being potentially a product that should be in every kitchen pantry in the world. Features and benefits, design and performance of the product were strong.

My job requires that I provide honest criticism as I consider how best to Package, Market, Brand, Promote and Sell a product. My team analyzed the submission and we became concerned about an engineering feature that would add significantly to cost of tooling and production, while not really adding to the already excellent utility of the product. This superfluous feature was also going to add a good deal to the cost of packaging the product. Unfortunately, the owner of the project was so totally committed to this design cue to the extent that she could not fathom not including this element in the final product profile. She could not accept valid criticism, even though this point was to be the difference in realizing a successful launch, or no launch. 

We do not criticize simply to be confrontational. We do, however, often raise an objection to an element in order to see how well prepared the entrepreneur is in defending their proposition. When we criticize we are seeking to strengthen the products potential by addressing issues that buyers and distributors will certainly target. Decision makers always zero in on the product’s perceived flaws.  

As a young entrepreneur I was initially exposed to project criticism by a wise, grizzled investor. He told me, “You know what is right about your plan. You need to learn what is wrong”. I found out what was deficient with his help, made the necessary design and marketing adjustments and launched. This gentleman’s mentoring wisdom helped make my first venture a success and has enabled me to spend almost four decades launching a host of other Consumer Products, New Companies and Entrepreneurs.

In any business, whether a New Company or an established firm, success is achievable when criticism is tolerated, openly discussed and solutions discovered and executed. Do not try to win the argument for winning the arguments sake, unless the facts and evidence support your position. Be open to honest brokers and value their opinions. You will profit.

by: Geoff Ficke

Using Trade Shows to Launch or License Your Novel Consumer Product Is Key

Each business day we are approached by entrepreneurs, small businesses, and inventors from all over the world seeking guidance and asking how best to launch and successfully commercialize their consumer product or service innovation. In almost every case investment monies are very dear. There is no one universal answer as every situation is unique. However, we find that we almost always include a suggestion of industry specific trade show participation as a key piece of the answer.

Every category of consumer product has an assortment of local, regional, national or international trade shows devoted exclusively to related products and services. There are Food Product and Gourmet Food Product trade shows. The Pet Product industry has numerous events. Ditto for Hardware Products, Toys and Games, Pool and Spa Products, Gift Products, Table Top Gifts, Hunting, Fishing and Outdoor Products, Sporting Goods, Home and Garden Products, Do-It-Yourself Products, Cosmetics, Jewelry, Wellness Products, Natural Products and, well…you get the picture. If you want to sell, license or introduce a consumer product there is a venue that is the ideal target of opportunity available for you to utilize. 

Why are trade shows so important? The answer is simple. In an impersonal digital world the internet has created an inconvenient and often insurmountable buffer between entrepreneurs and decision makers (buyers). In order to bridge the electronic divide you must be able to personally meet and educate the key decision maker on the unique features and benefits of your product. This is best accomplished at trade shows. 

Attending trade shows is an important part of retail buyer responsibility. It is easy for a buyer to accept an anonymous new product application from an on-line submission and electronically decline the offer. This is not only easy, but highly impersonal and a way to evade the additional work load that comes with adding new items to a stores retail mix. Management, however, expects buyers to not only attend trade shows, but to discover and bring home new, innovative products. 

On the floor of a trade show the entrepreneur can network, demonstrate and display their product and become personally familiar with key personnel in their class of trade. At every trade show I have ever worked there have been sales agents seeking new lines to carry and represent. There are competitors who want to buy or license new products that fit their space (or, beware, knock off your item). You will meet retail buyers from every conceivable size store, from big box to independent. The opportunity to properly present your product to the largest group of potentially important people is never greater than when you display your wares at a trade show. 

There are costs attendant to trade show participation. Travel, booth rental, display and sales collateral must be covered. There are also clever strategies available to minimize cash outlays while discovering how the decision makers in your space will react to your new consumer product or service. 

We just returned from a major high fashion jewelry industry trade show. Our client unveiled a brand new jewelry line by utilizing production quality prototype samples to demonstrate to the trade. Display was a one-off unit created by our preferred point-of-purchase manufacturer. Sales collateral was designed and produced utilizing a photo-shop graphic art technique. The result was that, with virtually zero inventory expense, the client was able to present his product and give every outward appearance of being an experienced, solid business, not a start-up. 

Orders are now being written, international distribution deals negotiated and inventory produced to cover commitments. This expensive step can now be undertaken with a high level of confidence gained by the experience realized by trade show participation. This is just one example of penetrating a highly competitive consumer product market while significantly mitigating financial risk.

Trade shows work and they are prevalent for that reason. Make use of them!

by: Geoff Ficke

How to Market a New Consumer Product Idea – The Mindset Required 

This will be the first in a series of self-help articles that will be of use to aspiring entrepreneurs, inventors and small businesses who seek to market a consumer product, idea or service that they have conceived. As a Product Development and Marketing Consultant I am approached every day by people desirous of, but not knowing how, to open the myriad doors that they must confront in order to get an idea, concept or prototype to store shelves. The process can appear overwhelming. It is not, but it is not for the faint of heart. 

The first issue any driven entrepreneur must confront is their personal reality. Do they have they temperament, drive, fearlessness and creativity to get into the most competitive game on earth; a game played with the goal of influencing consumers to buy their product and not the competitions. What is their current home and financial reality? Is the wife, husband, or significant other on board with the project? These types of questions must be answered honestly. 

If the above realities are not truly roadblocks, then another major issue must be addressed. Does the owner or conceiver of the product want to self-market or need to secure help in order to achieve stated goals? This is another “reality” consideration. Consider each option: 

Self-Market

The main reasons to pursue a self-marketing option is that there are no, or limited resources available to pay for professional guidance and the entrepreneur has a history of successfully overcoming challenges that would halt others. Ask yourself a question: If you are not mechanical, would you attempt to give your car a tune-up? Or, are you a person who knows nothing about car engines, but decides to read a book on the topic and learn how to complete the task? If your answer is the latter, you are a candidate to possibly become a successful self-marketer.

Consulting Help

The benefit of hiring competent, experienced Marketing Consulting and Product Development help is to save time, money and mistakes. In order to successfully get a consumer product to market dozens of steps must be undertaken and successfully addressed. Professional help in any field is paid to perform services. Whether you engage a plumber, accountant, landscaper or Marketing Consultant you will pay for service rendered. In every case you need to vet history, experience and references before contracting for services. Always speak to at least three candidates before deciding on which to use. Never hire without receiving a Gantt Chart with action items that will be accomplished in specific time spans. 

After you have carefully considered all of the aspects addressed above you will have a better idea of the best course open to you. You should know at this point whether you are ready to plunge into this exciting, but intimidating world of entrepreneurship. I have one further caution: put your dreams in storage! 

During my 35 years of working with micro-businesses and inventors the one predictor I have found to be absolutely solid is what I term the “dream quotient”.

This is easily spotted, usually during the first phone or e-mail contact. It goes something like this: “Let’s make $500,000,000 together”. Or, “I have a billion dollar idea”. Another goodie is: “I have an idea that I want to sell (or license)”. How about, “I don’t have any money, I want you to be, or to find me a partner”. 

The person that leads off an introductory meeting with this type of statement is a dream merchant. Successful entrepreneurs do a bit of dreaming, but they convert dreams to reality by hard work and commitment. There are no shortcuts allowed on the road to success. Grandiose projections, licensing an idea that has not been developed or selling an un-worked concept to a funding source is the cluttered thought process of a person with no prospect for success. 

No matter your financial reality, there are options and routes that can lead to success. They will take hard work, some outside of the box creativity and total commitment. Keep focus on your goals. Do not dilute effort with multiple ideas or products. Always know and understand this: you will hear many more “no’s” than “yes’ “. Marketing success is achieved only by those who do not let the plurality of “no’s” overwhelm their lust for the paucity of “yes’ “.

by: Geoff Ficke

Securing Professional Help – How to Market a New Consumer Product Idea 

The last article in this series considered the mindset and attitudes required to be a successful marketer of consumer products and services. We discussed whether to utilize professional Consulting firms or to take the plunge and self-market your project. Here are some ideas on securing talent on a local, regional, and possibly pro-bono basis. 

Professional Marketing Consulting and Product Development firms are hired on a contractual basis. They will offer a menu of services, everything from Brand Development, constructing a customized Marketing Strategy, managing Graphic Arts for packaging and Sales Collateral, Trade Show participation, Sales coverage and web-site construction. Some firms offer comprehensive services, other are highly specialized. 

A Professional Marketing Consulting and Product Development firm should be able to offer a strong value proposition. Savings in time, money and mistakes should be the benefit received from contracting service from these Companies.

There are other options to consider. 

Local Universities

Colleges and Business Schools have become very involved in entrepreneurial activity. Some schools are immersed in this area and their Business Schools offer majors and minors in entrepreneurial studies. Students can be assigned to work on independent projects for extra class credit and will assist in writing business plans, research, demographic studies, discovering vendors and sources of offshore supply and brand development. Contact the Dean of the local business school for entrée to a student to be assigned to your project. 

SCORE

This is the Service Core of Retired Executives, a group related to the Federal Government’s Small Business Administration. There is, as always with the government, a process to be followed before being assigned to a mentor in this program. SCORE is national and can be useful for simple, mainstream projects. 

Trade Groups

Many industry specific trade groups offer mentoring programs that will benefit start-up companies and entrepreneurs with projects of interest. Be careful here! You will want to have appropriate intellectual property protections in place (Patents, Trademarks, Copyrights, Trade Secrets, etc.) in place before you detail your product or service. 

Business Incubators

Many Chambers of Commerce promote small Business Incubators precisely to discover, nurture and grow local small businesses. The primary goal of these programs is to create employment opportunities. They will have a Venture Capital ethos and require a level of sophistication and detail that many early stage concepts will not possess. 

Government

Many cities, counties and regional state associations have been formed precisely to encourage and mobilize small business growth. Once again, when dealing with the government, be prepared for a phalanx of bureaucracy to navigate. 

Networking

This might be the best way to overcome the earliest, most formidable obstacle to getting started. I know it was for me, it was for Aristotle Onassis, and it can be for you. You have to be in position to meet people that can help. It can be through a relative who belongs to a club where the members are in related businesses to your opportunity. It might be at the Lions, Rotary or local Chamber of Commerce meetings. Maybe you need to spend some time volunteering at local corporate sponsored charity events such as golf or tennis tournaments and 5K races. Sometimes just asking a friend to organize a luncheon or coffee meeting can open the door enough to get your smallest toe in the door. 

The key to success for every entrepreneur I have known, and there are a bunch of them has been to talk to everyone they can about their product, idea or concept. People love to help other, truly ambitious, honest, hard-striving people. It makes them feel good and valued to be able to help others to succeed. If you are driven you will be able to secure professional guidance whether you decide to hire experience consultants or choose alternative resources.

by: Geoff Ficke

Successfully Approaching Marketing Professionals – How to Market a New Consumer Product or Idea 

Many inventors and entrepreneurs are so excited about their concept that they neglect to learn, or practice proper business etiquette when soliciting marketing or investment assistance. This can ruin their opportunity, or at the least set prospects back sharply. The following are some simple rules to follow when making initial contact or presentation of your exciting new product or marketing concept. 

Never Utilize Mindless Platitudes

My Company has been developing consumer products and marketing consulting for almost four decades. There is no bigger turn-off than to just meet a potential new client and hear something like: “I am going to put the Mattel Toy Company out of business with this new plush toy (or board game, or articulated doll, etc.)”.

Another golden oldie cold shower is, “This is a multi-billion dollar opportunity”.

We see this tried every day and it is a disqualifier. 

Be realistic, humble and factual about the opportunity you present. Professional marketers and venture capitalists will appreciate and are more likely to reward the sober tone. 

Always Tell the Truth, Never Embellish

The marketplace of ideas and new product ideas is huge, uber-competitive and non-forgiving. If you stretch the truth, embellish facts, or omit important facts that will affect your proposition two things will surely occur, they always do: You will be discovered. You will be dismissed. 

Be absolutely clear and truthful about everything you represent as factual. I cannot tell you how many times we have met entrepreneurs with great product ideas and we dismiss them out of hand because of obvious methane in their story. It is far better to detail a competitive disadvantage your product might possess and offer a solution to overcoming the handicap than to gloss over and try to mitigate the flaw. 

You Get One Chance to Make a Great First Impression!

I interview entrepreneurs for a living. I have certain screening questions that I use to separate the wheat from the chafe. Every venture capital firm, investment banker, consumer product marketing professional and licensing agent I know utilizes the same verbal qualifiers, or disqualifiers depending on how they are answered. The goal of your first contact is to get a face to face meeting with decision makers. 

Do not try to close a deal on the first call. Do not hard or over-sell. Never attempt any type of sale or screening technique on an e-mail if you wish to be considered serious. Present yourself as a professional person who has a project that is well-vetted, serious, offers unique product features and benefits that will benefit consumers and retailers and that you would be appreciative of a meeting that should be of interest to all parties. 

Do Not Detail Your Perceived Value of Your Project

Why? Because you do not have a clue what the REAL value of your project is. I have never read a non-professionally written business plan that offered an inkling of an iota of the true value, if any, ensconced in the project. You may have a wonderful idea. But without Execution, Cost of Goods balance, a customized Marketing Strategy that employ’s unique Branding concepts and Consumer Product Features and Benefits that can easily be conveyed to consumers in a cluttered marketplace even the best product will not succeed. 

Have a Great Elevator Speech

You will need to be able to excite decision makers in a brief few minutes of time. An initial call is always cold. This is the time to plant seeds of interest, not reap a harvest from a virgin field. The same principles that apply to the Executive Summary section of your Business Plan should apply to the Elevator Speech. Respect the time of the decision maker. Interest him (or her) with product features and benefits, a very brief summary of your due diligence and be prepared to answer questions, hopefully, if you have excited a level of interest from you target these will come. Remember, your goal should be to meet. 

Ask Questions

After an introduction and a short, tight Elevator Speech, you will be asked questions if there is any level of interest from your target. Assuming you have done your homework and pass the screening exam you will have the opportunity to ask questions of your target. Do not get too detailed and specific. Save that for the time when negotiations commence, and that is still a long way off. 

These are only a few of the most egregious flaws and shortcomings we see every day as our Marketing Consulting firm reviews projects. We get very interested in unique products. We only get truly excited when the entrepreneur is as good, or better, than the product they present.