Wanna Be a Billionaire? Then Move to China; Rainbows and Unicorns!: Twitter Might Finally Churn Out a Profit; Nike’s Game Plan Leaves No Room for the “Undifferentiated​”

Something tells me we’re doing it wrong…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

There’s a new report out published by UBS and PwC, called the Billionaires Insights report that tracked 1,542 billionaires all over the world and their combined $6 trillion. And while some might quickly assume that the United States might hold the top spot for the billionaires club, they would be wrong. As it turns out, Asia has the most billionaires, topping out at 637, whereas the United States can only boast 563 billionaire residents. In fact, every two days a new billionaire is minted in Asia, with China having the most.  But, to be fair, the wealth of the U.S. billionaires is much higher, coming in at $2.8 trillion, compared to Asia’s $2 trillion. So six in one, half dozen of the other, I suppose. Except not for long. The report also mentioned that the wealth of Asia and its billionaires will far surpass the U.S. in four years. One of the biggest “problems” listed for these poor billionaires face is how they intend to pass on their wealth. Rich people problems. But somehow they manage, whether they choose to pass it on to their heirs or leave it to charitable organizations. Decisions decisions. Of course, the more people the billionaires leave behind, the more complicated things get. But such is life when one is saddled with so much friggin’ cash.

Fairytales do come true…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

There’s a lovely rumor going around that maybe, possibly Twitter just might crank out its first-ever profit. We just need to wait until next quarter to see if that’s actually going to happen. But it’s not outside the realm of possibility since the social media company did make a major push to cut expenses while engaging in deals with other companies that don’t have them relying so heavily on advertising. Wall Street, at least is super stoked, causing shares of Twitter to soar 16% to over $20 per share.  And that company definitely needs all the share-soaring it can get. Twitter’s revenue was $590 million, a 4% dip from last year at this time but still decent since expectations were for $587 million. The other big news on the Twitter front is that the company made a very big mistake and is apparently trying to make amends for it. It seems that somehow an error was made in how user base was calculated for the last few years. But the company did revise the previous estimates, that had those numbers coming in a bit smaller than what was previously reported. Twitter insists that the difference amounted to less than one percent and that’s the story they’re sticking to. Their monthly active users, by the way, are up to 330 million and that number is supposed to be accurate, just disappointing since analysts expected that number to be 330.4 million. Oh well, Can’t win ’em all.

You’re out!

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Image courtesy of photostock/FreeDigitalPhotos.net

Nike’s annoyed at under-performing retailers and has put them on notice. Which is definitely one way to make enemies. But hey, Nike is all about competing and if a struggling retailer is unable to “just do it,” then they’re out. Because Nike has a plan – a big one – that’s got them trying to hit $50 billion in sales by 2020. Nike wants to just do it, naturally. However, Wall Street is not so sure it can. I have yet to decide who my money’s on at this point in time. Apparently, 40% of Nike’s wholesale business comes from “differentiated” retailers and they want to up that to 80%.  Those retailers have a way of presenting the merchandise that gets customers wanting to spend their money at those establishments. According to Nike brass, “undifferentiated mediocre retail” just won’t cut the mustard and can expect a nasty goodbye within five years. Ouch. Nordstrom and Foot Locker apparently have nothing to worry about. For now. There were some obvious omissions, though, including Macy’s and JC Penney. Just saying. Whatever Nike has in store for those “undifferentiated” retailers doesn’t seem to bother Wall Street. Investors sent the stock up 3.5% today.

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Where in the World is Über?; Harvard Professor Gives Whole New Meaning to Chinese Take-out; See Which Company Made “The List”

Mo’ money, mo problems…

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Über just picked up another $1.2 billion in funding and is now valued at $40 billon. Awesome, right? Not even close. On the heels of its most recent “tracking-customers” scandal comes even more…problems. So on which part of the globe should we begin? How about Portland, Oregon? You might have downloaded the Über app there but don’t bother using it. Hours after it launched, the city put the kibosh on the ride-sharing device. In Über’s home state of California, San Francisco D.A. George Gascón and Los Angeles D.A. Jackie Lacey have filed suit against Über for, among other issues, not being totally honest about the quality of the background checks it conducts on its drivers. Which brings us to Chicago where an Über driver allegedly raped a female rider. And just because gambling and prostitution is legal in Nevada, that doesn’t mean Über is. Yes, oddly enough, it’s banned there too. On the other side of the pond, good luck finding an Über ride. Denmark and Norway have filed complaints, a Dutch court ruled it illegal, France has yet to decide, while Spain already but the brakes on Über’s operations. In Asia, Thailand also nixed the service and India’s having huge issues with it as well. But on his blog, Travis Kalanick did mention that Über operates in 250 cities on 50 countries. He must mean on a different planet.

Can I get the sauce on the side?

Image courtesy of patrisyu/FreeDigitalPhotos.net

Image courtesy of patrisyu/FreeDigitalPhotos.net

If you’re going to overcharge your clientele, you best make sure they aren’t professors from Harvard’s Business School. Just ask Sichuan Garden’s Ran Duan. Except, he’s not so talkative lately. When Professor Benjamin Edelman ordered four dishes from the Boston eatery, he was over-charged a dollar more than the advertised price on the restaurant’s website.  So Professor Edelman, who, by the way,  fiercely and diligently took on the airline industry for misrepresenting fees, did the same with Mr. Duan. First, the professor suggested that Sichuan Garden refund him three times the amount of the over-charge. Mr. Duan, instead, offered to refund $3.00. After several emails were exchanged, which seemed to only fuel Professor Edelman’s irritation, he decided it was time to take the issue to the regulators, just as he had done with the airlines.  The lesson is? Well, there are several, aren’t there.

You call this work?

Image courtesy of portal/FreeDigitalPhotos.net

Image courtesy of portal/FreeDigitalPhotos.net

Is your company on Glassdoor’s 2015 50 Best Places to Work list? If not, maybe it’s time to polish your resume and start spending lots of time on LinkedIn, which by the way, takes the number 23 spot. It’s no surprise, I guess that Google made the list. After all, didn’t Vince Vaughn and Owen Wilson make a movie just about being interns there? However, this was the first time Google took the top spot. Among the many storied perks behind the company is twelve weeks maternity leave…for the father. So where does that leave mom? With an additional six weeks’ quality time with baby. Thinking of trekking down to Antarctica? Bain and Company, which ranks second, has got an expedition with your name on it. Just make sure they have a position you can fill. Facebook ranks at lucky #13 with one employee writing about it: “Transparency. Trust. Compassion. Food.” ‘Nuff said. Got IT problems? Great. Grab a beer and talk it over at Zillow’s “IT Happy Hour.” The real estate site ranks 33. Who is not in the top 50? Glad you asked. Twitter is noticeably absent from top 50 this year presumably thanks to some management “changes.”

 

Jimmy Choo: If the IPO Shoe Fits…; Inversions: The Good. The Bad. The Ugly; Soda Vs. the World

I Jimmy Choos you…

Image courtesy of biosphere/FreeDigitalPhotos.net

Image courtesy of biosphere/FreeDigitalPhotos.net

Arguably one of the world’s awesomest shoemakers (understatement of the year), Jimmy Choo, propelled to fame thanks to Carrie Bradshaw and “Sex and the City,” is now looking to put a little “pump” into the stock market by coming out with its own IPO next month. Granted, it will be nothing compared to Alibaba’s meteoric rise to the top of the index. Partly because it will be listed on the London Stock Exchange. The other staggering difference is that Jimmy Choo’s valuation, at about $1 billion, will be a wee bit smaller by about oh, I don’t know, $23 billion, give or take. Jimmy Choo has major plans to expand in Asia where  the shoes are not as easy to come by, yet so very many people there want them. And you know, Asia being a pretty huge place and all, has a lot of shoes to fill (sorry, I had to go for that one). The company has seen double digit growth on that continent, especially in China. Which is good because since you can’t score a new iPhone 6+ there, you can at least console yourself with a $2000 pair of shoes.

An inversion by any other name…

Image courtesy of Craftyjoe/FreeDigitalPhotos.net

Image courtesy of Craftyjoe/FreeDigitalPhotos.net

Inversions. They’re baaack. If you recall (and its okay if you don’t), corporations totally dig inversions as a way to reduce the heavy duty 35% tax burden imposed by sweet old Unlcle Sam. Simply put, companies move overseas. It’s a bit more complicated but I’ll spare you all the gory details. The government, this one anyway, gets really annoyed when companies do inversions, because it thinks money is being taken out and away from the US. Now, just as eight major US corporations, Burger King among them, are getting set to pack up their things and head for fiscally greener pastures, US Treasury Secretary Jacob Lew inconveniently announced plans to crackdown on inversions practices and the companies that do them. Lew hopes to “significantly diminish the ability of inverted companies to escape US taxation” and basically make it not worth it for companies to invert. However, Martin Regalia, who just so happens to be the chief economist at the super-important US Chamber of Commerce feels this crackdown is a very very bad idea and says that “the administration just assured that deferred income in the once foreign subsidiary will never come back to the U.S. to help create income, jobs and economic growth here.” Which basically means: “Bad public policy produces bad economic results.”

The skinny on soda…

Image courtesy of artzenter/FreeDigitalPhotos.net

Image courtesy of artzenter/FreeDigitalPhotos.net

Your soda is about to get a whole lot skinnier – 20% skinnier. And you can forget Coke vs. Pepsi vs. Dr. Pepper vs. whatever…It’s now soda vs. the world as beverage suppliers are getting their game on to try very hard to get Americans to stop consuming so much sugar,  at least from their beverages. This big unified soda announcement came during the Clinton Global Initiative. Apparently a study was conducted that found how between 2000-2013, the amount of sugar people got from their drinks fell over 12%. Which is all good. Especially because the beverage industry took note of this and will now push water and diet drinks more aggressively. Why, they are even going to market those cute smaller size cans of full calorie soda. Which is a really good thing. Especially because those darling little cans are so much more profitable. More so than the bigger regular-sized cans. Go figure. Oh, and they allegedly help with portion control too.