Saturday, 27 July 2013

This is not a lascivious post !



Does man (and woman) have a foot fetish ? I think so. What is it about feet that makes people get completely bowled over by the marketers and pamper and cosset it. No I'm not talking about the ridiculous pedicure. I'm talking about footwear and the amounts we splash on it.Each one of us is an Imelda Marcos - before you snigger, go and count the footwear in the shoe rack.

Hyperbole dominates the footwear marketing industry. To think that by wearing "LeBron Zoom Soldier", I'll be able to dunk a basketball is pure fantasy, but it appears I am willing to buy the dream for $299 or thereabouts.  The sight of a Rajalakshmi tottering on high heels on the mistaken assumption that it makes her a 6 footer is equally humorous - I don't have the heart to tell her that her width is somewhat more than her height ! But surely the game has been taken to an altogether new level by Under Armour.

Under Armour is a sports outfit company. They mostly make sports clothing, shamelessly exploiting our fascination with looking good on the sports field about which I ranted here. Their footwear division is still small - so to pump up sales of footwear, they have hit upon the idea of a "bra for your feet" !!!

Apparently its made in a bra factory in China. It features a "cup" for your heel that is without any stitching. The whole shoe is "seamless".  It has a great fit and feels "smug". It feels like " a second skin". Multicolour no less. Can you please part with $150; thank you !

It has also been advertised that the equipment is built for linear motion, rather than horizontal jumping. I am not sure whether this advice has also been inspired by the concept it is trying to borrow from !

Under Armour's Senior Creative Director of Footwear (how does that sound on your business card) explained the concept with much delight and puns galore, but I think even he missed the delicious irony of this statement ; "Prototyping mostly took place in China at the bra factory for a more hands-on approach" !!

I must say I was much intrigued when I read all this. I am not sure I want to wear a bra on my feet, but perhaps there are some weird males who might relish the idea. Although I am not sure that its an aspirational thing - you might want to feel like Michael Jordon, wearing Air Jordan, but wearing one of these ...... Perhaps the aspiration is that its "eye catching" although as any sensible male will tell you, its not the covering, but what's inside that counts- the feet I mean :)

The more knowledgeable on these matters (women, I presume) might sneer saying that the shoe absolutely will not fit - given that its inspiration is also  notorious for that problem. And the damn thing always has a tendency to show, when it would have been far better to be discreet. And Yes,  I know that "Burn the Bra" was a 60s thing; but if it does catch the fancy again, what would happen to Under Armour shoes.

I am delighted to say, that for those of you who are captivated by the idea, you can order it for delivery in India too. The new revolutionary product is not yet on their online store, but it will soon be. And when you order, remember to specify Size 9.  If instead, you mention a large double digit with two alphabets after it, the store will not believe you :)

Sunday, 14 July 2013

Knock Knock ; Who's there ? Nobody !


By any reckoning, this should be an extremely successful business. You have a fantastic distribution set up - reaching every nook and corner of your geography that nobody else can - in what is essentially a distribution business. You have an envious relationship with the consumers. In many places your representative was a trusted friend and confidante. People looked forward to his arrival. You had a state sanctioned monopoly. You have a significant price advantage. You enjoy innumerable fiscal benefits that no competitor enjoys. You have a great brand , so great that collection of your merchandise was a major hobby with an English word specifically only for this. Songs have been written about you that have reached the top of the charts - here (this is the first version - the Beatles and the Carpenters came later) , in case you are musically inclined. 

With such advantages. you should be roaring away to glory, shouldn't you ? And yet you are a colossal failure and a sitting duck in almost every country. I am referring to the business of postal services. Everywhere in the world, the Post Office is a massive white elephant and a complete dinosaur, if you'll pardon the mixed metaphors. When was the last time you licked a stamp and sent something by post  ?

Popular perception is that the business has been made obsolete because of technology. The advent of E Mail and then subsequently, the mobile phone has made postal services. fit only for a museum. Nobody writes a letter any more. So goes the wisdom. Nothing could be farther from the truth.

The postal services have failed because they have a been a government monopoly, have never considered themselves as a business and have been the best example of the worst management in history. That's why they have failed. If you need any further proof of it, simply consider the number of courier companies, who essentially offer the same services and who are thriving.

There is actually a colossal increase in the volume of physical mail. The amount of commercial mail is massive - just consider the amount of stuff, you may consider as junk mail, but which still arrives at your doorstep. Just as the advent of computers actually increased the amount of paper consumed, the advent of email has done nothing to reduce the volume of snail mail. Yes, you may have never written an inland letter for a decade or more, but consider how many times you have couriered something. 

Postal services in every country, and especially so in India, have been subjected to such bad management that it must be considered almost a crime. There is a bloated workforce. There is very poor management talent working in the organisation.  There has been no modernisation and investment whatsoever - just peep into the local post office, in case you can find it, and you will be looking at the 18th century. Governments have contributed by keeping prices of some products ridiculously low - for example to send a post card anywhere in India costs 50 paise (provided you can find a 50p coin which is almost not legal tender nowadays).  If ever there was an example required of the grossest inefficiency of the public sector and a shameful case of a proud organisation brought to its knees, this has to be it.

Why is this so. There have been other government monopolies which have been threatened by technology, but which have still done reasonably well. Why is the Post Office an universal failure ? I can postulate, but I shall leave it to Distinguished Academics (at least two members of this species are readers of this blog) to perhaps present their research findings.

Friday, 12 July 2013

Reorganisations - the last refuge of the incompetent

There is one ritual that happens in all companies periodically without fail - an organisation restructuring. Old structures and divisions are thrown out of the window and new structures are announced. HR types take great pleasure in redrawing organisation charts, rewriting job descriptions and the like. Communication types have an orgasm designing communication packs and writing words like "restructuring to stimulate growth", "bringing the organisation closer to consumers" and such other waffle. CEOs like to stand up to the press and announce the change , to make up for lack of anything else to say about their companies. MIcrosoft did just that today, the trigger for this post. Steve Ballmer's version of the blah blah is "We are ready to take Microsoft in bold new directions". Balderdash. I have never seen a more futile activity than an organisation rejig. And yet companies do it all the time.

The pattern is all too predictable. If the current organisation is based on product lines, it will be made regional to "get closer to the consumers". If it is regional, it will be made based on product lines to globalise and take advantage of scale. People will be moved around in boxes on organisation charts. The new guys have to go on a round the world trip to familiarise themselves with their new responsibilities. Lots of presentations and power point charts. Every four years or so the charade is repeated.  None of this matters one iota to consumers and shareholders. The only gainers are probably the management consultants who make lots of money.

What a thorough waste of time and effort. Structures are important in organisations, but they matter less than you think. The primal instinct of marking territories and defending against invaders, is what structures are. Structures are boundaries where defences are erected , by petty minded egoistic manages who need to feel important. Much effort is actually expended in organisations in crossing structural boundaries. Seasoned operators build alliances and have informal channels through which they get things done.Formal structures matter little to the determined go getter.

The root of the problem is man's territorial instinct. Man likes to draw boundaries and defend everybody inside the boundary from everybody outside. Alpha males who inhabit the business world suffer from an acute affliction of this instinct. Chief Executives and Boards struggle to overcome this and get the entire organisation to operate seamlessly. Fat chance of that happening. In this quest, organisational restructuring is the placebo. The placebo is particularly touted by the HR function, as a magic cure, which gullible CEOs swallow all to easily.

If Microsoft's leaders think they can solve their fundamental problems and compete better with the likes of Google, by an organisational revamp, well, perhaps its time to write their obituary.

Friday, 5 July 2013

No men please



Apparently men are heavier than women.  Did you know that ?  In many parts of the globe, that is probably true, but in India ?? Can you believe that Rajalakshmi, she of the considerable proportions, is inferior to Ramamritham, when it comes to the weight stakes ?? I somehow, seriously doubt that. But not, it appears GoAir, an India based airline.  This is the news from GoAir, that set off this post.

Cabin attendants, flight attendants, stew, whatever name you wish to call them, are predominantly women, everywhere in the world. It all started in the initial days of flying. A pretty young air hostess was part of the decor of the plane. Nervous travelers, usually pot bellied men, could relax by looking at a smiling pretty face. As the years went by, the pot bellied business traveler remained the same, at least pot belly wise, but the nervousness disappeared. The flight attendants meanwhile aged, and age discrimination laws in the US and Europe ensure that these days its a matronly woman giving you a geriatric smile. It is not the most pleasant of sights, unless you have a major mothering need. That's why every regular traveler instantly closes his eyes and goes to sleep on entering a plane - those that don't are just waiting for the booze to come before doing exactly the same. Asian airlines however still consider a pretty flight attendant as an important component of air travel - the Singapore girl continues to be, well, a Singapore girl.  The strong preference of this blogger for Asian airlines, should not go unmentioned.

GoAir, being a sensible Asian airline, wants to do exactly the same.  But then, it is extremely incorrect politically to say so. They have therefore announced that they would only recruit female flight attendants, because ( wait with bated breath)...... because women are less heavier than men and therefore they can reduce the total weight of the aircraft and achieve fuel savings !! Wow ! Double Wow !! That is the most ingenious explanation you can ever imagine. Not only has it flattered all Rajalakshmis, who will rise in defence of this move, but it has also cleared the way for the airline to recruit petite sweet young things.  Isn't that brilliant ?

Well, airlines have been known to do all sorts of things to reduce weight. ANA took the cake, by asking all passengers to pee before boarding, as a means of reducing total load on the aircraft. Ryan Air tried to achieve the same thing by thinking of charging passengers to go to the loo onboard - thereby forcing them to go to the loo before boarding. American airlines achieved this by abolishing all food on board and replacing them with peanuts. But GoAir is scaling new heights by trying to reduce the weight of its crew.

Perhaps they will now do some in depth research on the weight habits of Indian travelers. You see, the men are mostly those, who can only see their toes by looking at the mirror, because there is a significant protuberance that obstructs the natural line of sight. The women have a different problem - they can only walk down the airplane aisle sideways as, the width somewhat precludes a straight-faced progression. In such an environment, imagine the plight of a petite flight attendant. When the aircraft lands and she opens the doors, the onrushing melee will probably knock her off the plane altogether !

GoAir has probably scored a march over its competition. India's "national airline", Air India, believes that it should accurately portray a representative Rajalakshmi in its cabin crew - they are therefore, shall we charitably say, non petite. Kingfisher, which practiced the policy of all flight attendants being hired personally by the Chairman, could have probably beaten GoAir hollow - the Chairman's ability to spot the right talent in this matter being somewhat legendary. Unfortunately the airline went bust, pun unintended. So the field is ripe for GoAir.

This blogger is significantly underweight. He therefore intends to fly GoAir next time and ask for a weight discount. And while flying, he can appreciate, the petite cabin crew. Of if you prefer , as the verbatim technical specs the airline has put out says - cabin crew with a minimum height of five foot three inches and weight proportionate to the height !!

Saturday, 29 June 2013

I want to be a garbage collector

The story that two garbage cleaners in New York were fined and forced to retire after being caught accepting a tip of $ 5 caught my eye.  Not for the reason you might think. This story would provoke hoots of laughter in my country where nothing happens in the public service without a gratuity.  Even in NY, this must be an incredulous story - every man and a dog demands tips shamelessly for just existing in the same space as you. But the real reason this story has prompted this post was buried somewhere in the middle.
 
The two garbage men apparently netted $100,000 each, including overtime. Granted that they had put in long years of service. Granted that they probably earned lots of overtime. But still a wage of $ 100,000 for a garbage collector shows everything that is wrong about the United States. No wonder they lose jobs by the droves to India and China. No wonder unemployment is a stubborn problem.
 
But this post is not to highlight the completely unrealistic pricing for labour in the US, as compared to the world. This post is instead about a global problem - automatic salary increases every year.
 
If you spend enough years on any job, even that of a garbage collector, you will reach levels of $ 100,000. If you start at $ 20,000 a year and get a 5% rise every year , you'll land up with a $100,000 salary in 33 years. That is presumably what happened to these two guys. Imagine the situation in India where anything less than a 10% raise a year leads to a strike. If you start at an annual salary of Rs 5 lakhs, an entry level salary for a qualified graduate,  and keep demanding 10% salary rises, by the time you retire after 35 years, your salary even staying in the same job, will be Rs 1.4 crores.
 
Now you see why there is age discrimination in employment and the older you are, the quicker you are fired. Now you see why there are large scale job losses.
 
Salary levels have to follow some form of a normal distribution over the years, if you stay on the same job.  You start low and as you gain more experience and you become more efficient, your salary should increase. It should probably reach a peak when you are say 40, and then begin a slow decline so that you can remain competitive with the younger folks who are trying to displace you. I know this sounds heretic, but I would rather take cuts in my salary than lose my job altogether. The trick is to price yourself, just a shade below the market rate (not go for the highest salary possible). If that involves annual salary decreases, then so be it.
 
Of course, you can, and should, upskill and move on to a higher value job. But if you stay in the same job, automatic salary increases every year is a one way ticket to losing the job.
 
So, how about negotiating a salary reduction, instead of a raise. At first read this might seem like an insane idea. But think about it .....
 
Its an altogether different matter as to why somebody who was earning $100,000 a year, asked and took a $5 gratuity !

Tuesday, 25 June 2013

Inquilab Zindabad ? No ! _____ (fill in the blanks) Murdabad .

What is common between a park demolition and a raise in bus fares. Well, something profound , I believe. Because in the last one month, I dare suggest that these were the two most important events in the world (NSA be damned ; as if that was a surprise)


The park issue was the first and it happened in Istanbul, Turkey.  The government had planned to demolish the Taksim Gezi Park and use the space to reconstruct the historic Taksim military barracks. About 50 environmentalists occupied the Park in protest. The police , predictably evicted them. That snowballed into massive nationwide protests and a huge Occupy Taksim Square movement started.  The issue of demolition of the Park has now given way to a protest against all sorts of unrelated issues and drawing crowds numbering in the tens of thousands. It is now an anti government protest without a coherent theme or leaders. A big section of the population is just protesting without a clear understanding of what they are protesting against and what the solution is. This mind you, in a country where the President Erdogan has won repeated elections with a strong mandate.



In Brazil, the government decided to raise some bus , train and metro fares. A few protested, notably the  Movimento Passe Livre (Free Fare Movement). The police broke up the protests. Again this has snowballed into a nationwide protest movement, involving millions of people. The government quickly withdrew the bus fare hike, but the protests have snowballed into something bigger - a whole range of issues, including protests against the Football World Cup and the Olympics all scheduled to be held in Brazil in the near future.  If Brazilians are protesting against football, something serious is happening. Again this is in a country where Dilma Rousseff won a resounding mandate in the elections and is the chosen successor of the extremely popular Lula.

As of today, both these protests are going on. You can see parallels with the Occupy Wall Street movement in the US and a few other places. In all these protests, there is no coherent theme, there is no leadership organising the protests. But these protests have been massive, cover a whole range of grievances and are significantly aided by social media.  They largely cover the middle class, not the poor. They tend to die down because they are not coherent and not "organised". But they are symptoms of a deep underlying problem.

This is a profound sociological change and one that should be researched deeply.  I believe the underlying issue is economic. Despite a big economic improvement globally across the last two decades, there is deep resentment. Large swathes of the population do not believe that there is a bright economic future ahead of them. This, despite the fact that the future is significantly brighter than what our parents, grandparents and forefathers ever had. And that is the problem governments and societies cannot ignore. There is no easy solution, and aspects of the solution will be different for different societies. But the root of the solution is economic. We have to have economic growth.


PS - In the title of the post - Inquilab Zindabad means Long live the revolution, in Urdu, a favourite phrase of protests of the past in the Indian subcontinent. Murdabad means "Down with".

Monday, 17 June 2013

Black yoga pants that "showed too much"

Some businesses I can completely relate to. Most businesses I understand,. But there are some that completely fox me .

Take the case of the quaintly named company,  Lululemon. I was, of course, blissfully unaware of its existence until I read a news item that its CEO was leaving (polite term for being fired). Naturally, with a name like that, I couldn't but help read up. Apparently this Vancouver based company is  in the business of "yoga inspired" athletic gear , whatever that means. They are fast growing , but reportedly had a product problem recently which led to the CEO's exit.

The "product problem" made further interesting reading, Apparently, their Luon range of black Yoga pants was getting too many customer complaints - the product was too sheer and ,er, "showed too much" ! A particularly sensitive topic when when doing yoga which involves stretching and contortions !! The outcry was so much that they had to pull the product from the shelves in March.  The CEO stayed long enough to resupply the product, hopefully this time,  not "showing too much", but then had to go.

What amazes me is that this company makes a margin of 50%, selling yoga pants and the like.  Products include "Wunder Under pant" priced at $92 


and "Om pant" also priced at $ 92



If you want more gems such as the above visit their website here.

What foxes me is this. Who on earth wants to pay $ 92 for a "Om pant".  Do yoga by all means, but concentrate on , well, the yoga. Does it matter an iota whether your pant is "om" or "not om" ?? There are many places on earth to make a fashion statement, but I doubt if a yoga session is one of them .

I am a sports nut, as regular readers of this blog would know. I have spent an insane amount of money on sports. But for rackets, bats, balls and the like which help me to play better. Not for looking like an Adonis on court (well, that would be an impossibility anyway, but you get the drift ... ). I thought the purpose of getting on to a training room, or a sports field, is, er, to train or to play.

Yeah, I know lots of people who dress up for the evening walk. This is a disease that especially affects the female of the species. The sight of a Rajalakshmi - she of the ample proportions - trying to look fashionable while huffing and puffing at 1 kmph, I can assure you, is not a sight for the Gods. You can spot a true sportsman or sportswoman from a mile away - just from their dress. Although I admit, that Pete Sampras, one of the all time greats hit new lows in dressing, wearing what I can only describe as a Kachha which a Sardarji would be proud to wear as an underwear !

Even I would blanch at that !

But seriously, you can run a very successful business by peddling yoga pants at outrageous prices ! While being called Lululemon !!

Now , that's a business I can never understand :)

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