The Value For Money Strategy


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As slowdown takes its toll,luxury brands like Louis Vuitton are rising prices and curbing retail expansion to be perceived as Veblen Goods and hence turn a profit.

However Longchamp, the French company known for its folding nylon Le Pliage handbags, is sticking to its strategy of value for money luxury and in the process clocking larger revenue growth than companies like LMVH and growing their stores worldwide on the basis of better real-estate deals for retail locations.They especially  prefer locations in Europe frequented by travelers from Asia and the Americas since sales to non-Europeans are rising faster than sales to Europeans though Europeans account for a larger share of the total.

 

Motivation For Entrepreneurs


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The Playboy Story


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Hugh Hefner’s parents were teachers and he grew up in a conservative household.He worked on an army news paper in his service days and took creative writing lessons at university.He then went to work as a copywriter for Esquire.He quit Esquire in being denied a $5 raise.

Out on his own Hefner was determined to start his own publication, one that was similar to Esquire but better.

He mortgaged his furniture to raise a bank loan of $600 and raised $8,000 from 45 investors—including $1,000 from his mother,who believed in her son rather than his crack-pot idea—to launch Playboy magazine.

Hefner wanted to name the magazine “Stag Party” but was forced to change it to avoid a trademark infringement with the existing Stag magazine. A friend suggested the name “Playboy,” after a defunct automobile company in Chicago. Hefner liked the name, as he thought it reflected high living and sophistication.

Hefner produced the first edition of Playboy out of his Hyde Park, Chicago, kitchen. It hit newsstands in December 1953, but did not carry a date because Hefner was unsure as to whether or not a second issue would be produced. To help ensure its success, Hefner had purchased a color photograph of actress Marilyn Monroe in the nude—which had been taken before her movie star career—and placed it in the centerfold of the magazine. The first issue quickly sold 50,000 copies, and became an instant sensation.

A Joke Gone Right


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Sometimes businesses just happen.Gift Wrapped is one such example.Here is the story of how the company came about in the words of its founder Srikanth Acharya:

I started my first venture in April 2005. The idea was born out of an April fool’s prank on the 1st of April. I was working at Infosys at that point of time and that morning I told the first person I came across that I was planning to quit and start a company. He totally bought it. Then I did that to the second, then third and so on. Read more of this post

No Regrets


wealthymattersIn the very early days of Facebook, when it had fewer than 15 employees, a guy named Steve Chen decided after working there for only a few weeks that it just wasn’t for him.

He wanted to leave to found his own company, and his plan was to do a video startup.

Matt Cohler, the guy who had hired him in the first place, tried to convince him otherwise. “You’re making a terrible mistake. Facebook is going to be huge! And there’s already a ton of video sites. If you do this you’re going to regret it for the rest of your life!”

Chen wasn’t convinced, so he decided to do it anyway and left to start a company called YouTube.