К 100-летию журнала Forbes владелец компании Limited Brands Сorporation Лесли Векснер написал эссе о любопытстве
L Brands Inc. (LB) just released its third quarter fiscal 2017 earnings results, posting earnings of 30 cents per share and revenues of $2.6 billion.
Ulta Beauty (ULTA) is one of those few companies that has kept its robust surprise history intact even amid a tough retail landscape.
Victoria's Secret parent L Brands Inc. (LB) just released its first quarter fiscal 2017 financial results, posting earnings of 33 cents per share and revenues of $2.437 billion.
It’s been more than 25 years since Bill Gates dismissed retail banks as “dinosaurs,” but the statement may be as true today as it was then. Banking for small and medium-sized enterprises (SMEs) has been astonishingly unaffected by the rise of the Internet. To the extent that banks have digitized, they have focused on the most routine customer transactions, like online access to bank accounts and remote deposits. The marketing, underwriting, and servicing of SME loans have largely taken a backseat. Other sectors of retail lending have not fared much better. Recent analysis by Bain and SAP found that only 7% of bank credit products could be handled digitally from end to end. The glacial pace at which banks have moved SME lending online has left them vulnerable. Gates’ original quote contended that the dinosaurs can be ”bypassed.” That hasn’t happened yet, but our research suggests the threat to retail banks from online lending is very real. If U.S. banks are going to survive the coming wave in financial technology (fintech), they’ll need to finally take digital transformation seriously. And our analysis suggests there are strategies that they can use to compete successfully online. Lending to small and medium-sized businesses is ready to move online Small businesses are starting to demand banking services that have engaging web and mobile user experiences, on par with the technologies they use in their personal lives. In a recent survey from Javelin Research, 56% of SMEs indicated a desire for better digital banking tools. In a separate, forthcoming survey conducted by Oliver Wyman and Fundera (where one of us works), over 60% of small business owners indicated that they would prefer to apply for loans entirely online. In addition to improving the experience for business owners, digitization has the potential to substantially reduce the cost of lending at every stage of the process, making SME customers more profitable for lenders, and creating opportunities to serve a broader swath of SMEs. This is important because transaction costs in SME lending can be formidable and, as our research in a recent HBS Working Paper indicates, some small businesses are not being served. Transaction costs associated with making a $100,000 loan are roughly the same as making a $1,000,000 loan, but with less profit to the bank, which has led to banks prioritizing SMEs seeking higher loan amounts. The problem is that about 60% of small businesses want loans below $100,000. If digitization can decrease costs, it could help more of these small businesses get funded. New digital entrants have spotted the market opportunity created by these dynamics, and the result is an explosion in online lending to SMEs from fintech startups. Last year, less than $10 billion in small-business loans was funded by online lenders, a fraction compared to the $300 billion in SME loans outstanding at U.S. banks. However, the current meager market share held by online lenders masks immense potential: Morgan Stanley estimates the total addressable market for online SME lenders is $280 billion and predicts the industry will grow at a 47% annualized rate through 2020. They estimate that online lenders will constitute nearly a fifth of the total SME lending market by then. This finding confirms what bankers fear: digitization upends business models, enabling greater competition that puts pressure on incumbents. Sometimes David can triumph over Goliath. As JPMorgan Chase’s CEO, Jamie Dimon, warned in a June 2015 letter to the bank’s shareholders, “Silicon Valley is coming.” Can banks out-compete the disruptors? Established banks have real advantages in serving the SME lending market, which should not be underestimated. Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window. By comparison, online lenders face capital costs that can be higher than 10%, sourced from potentially fickle institutional investors like hedge funds. Banks also have a built-in customer base, and access to proprietary data on depositors that can be used to find eligible borrowers who already have a relationship with the bank. Comparatively, online lenders have limited brand recognition, and acquiring small business customers online is expensive and competitive. But banks’ ability to use these strengths to build real competitive advantage is not a forgone conclusion. The new online lenders have made the loan application process much more customer-friendly. Instead of walking into a branch on Main Street and spending hours filling out paperwork, borrowers can complete online applications with lenders like Lending Club and Kabbage in minutes and from their laptop or phone at any hour of the day. Approval times are cut to days or, in some cases, a few minutes, fueled by data-driven algorithms that quickly pre-qualify borrowers based on a handful of data points such as personal credit scores, Demand Deposit Account (DDA) data, tax returns, and three months of bank statements. Moreover, in instances where borrowers want to shop and compare myriad options in one place, they turn to online credit brokers like Fundera or Intuit’s QuickBooks Financing for a one-stop shopping experience. By contrast, banks — particularly regional and smaller banks — have traditionally relied on manual, paper-intensive underwriting processes, which draw out approval times to as much as 20 days. The questions banks should ask themselves We see four broad strategies that traditional banks could pursue to compete or collaborate with emerging online players—and in some cases do both simultaneously. The choice of strategy depends on how much investment of time and money the bank is willing to make to enter the new marketplace, and the level of integration the bank wants between the new digital activities and their traditional operations. Two of the four options are low-integration strategies in which banks contract for new digital activities in arms-length agreements, or pursue long-term corporate investments in separate emerging companies. This amounts to putting a toe in the water, while keeping current operations relatively separate and pristine. On the other end of the spectrum, banks choose higher-integration strategies, like investing in partnership arrangements, where the new technologies are integrated into the bank’s loan application and decision making apparatus, sometimes in the form of a “white label” arrangement. The recent partnership between OnDeck and JPMorgan Chase is such an example. Some large and even regional banks have made even more significant investment to build their own digital front ends (e.g. Eastern Bank). And as more of the new fintech companies become possible acquisition targets, banks may look to a “build or buy” strategy to gain these new digital capabilities. For banks that choose to develop their own systems to compete head-on with new players, significant investment is required to automate routine aspects of underwriting, to better integrate their own proprietary account data, and to create a better customer experience through truly customer-friendly design. The design and user experience aspect is especially out of sync with bank culture, and many banks struggle with internal resistance. Alternatively, banks can partner with online lenders in a range ways – from having an online lender power the bank’s online loan application, to using an online lender’s credit model to better underwrite and service bank loan applications. In these options, the critical question is whether the bank wants to keep its own underwriting criteria or use new algorithms developed by its digital partner. Though the new underwriting is fast and uses intriguing new data, such as current bank transaction and cash flows, it’s still early days for these new credit scoring methods, and they have largely not been tested through an economic downturn. Another large downside of partnering with online lenders is the significant level of resources required for compliance with federal “third party” oversight, which makes banks responsible for the activities of their vendors and partners. In the U.S., at least three federal regulators have overlapping requirements in this area, creating a dampening effect that regulatory reform in Washington could serve to mitigate. Banks that prefer a more “arm’s-length” arrangement have the option to buy loans originated on an alternative lender’s platform. This allows a bank to increase their exposure to SME loans and pick the credits they wish to hold, while freeing up capital for online lenders. This type of partnership is among the most prolific in the online small business lending world, with banks such as JPMorgan Chase, Bank of America, and SunTrust buying assets from leading online lenders. The familiar David vs. Goliath script of the scrappy, internet-fueled startup vanquishing the clunky, brick-and-mortar-laden incumbent is repeated so often in startup circles that it is sometimes treated as inevitable. But in the real world, sometimes David wins, other times Goliath wins, and sometimes the right solution involves a combination of both. SME lending can remain a big business for banks, but only with deliberate choices about where to play and how to win. Banks must focus on areas where they can build a distinct competitive advantage, and find ways to partner with or learn from the new innovators.
L Brands Inc. (LB) just released its fourth quarter fiscal 2016 earnings results, posting earnings, before non-recurring items, of $2.03 per share and revenues of $4.49 billion.
L Brands Inc. (LB) just released its third quarter fiscal 2016 financial results after the bell, posting earnings of 42 cents per share and revenues of $2.58 billion.
L Brands Inc. (LB) just released its second quarter fiscal 2016 earnings results, posting adjusted earnings of 70 cents per share and revenue of $2.89 billion.
Human trafficking, modern slavery, commercial exploitation. Whatever you call it, Evolving Perceptions is a series of interviews with individuals working to address the issue. Students, survivors, educators, parents and professionals all give readers a new and better understanding of this crime while teaching us how to respond more effectively to it. Ayush Khanna is the Director of Product & Marketing at LaborVoices where he is building a Glassdoor-like platform that guides workers to the best jobs and global brands to the best suppliers. Already, LaborVoices has data on tens of thousands of workers from more than one hundred factories and farms in 11 countries. He is passionate about developing products that delight users while also creating social impact. Previously, he has held analytics and research roles at PayPal, Wikimedia Foundation, and Duke University. Ayush has a Masters degree in Information Science from UC Berkeley and a Bachelors degree in Computer Science from Mumbai University. AP Photo, Rana Plaza Building Collapse Robert: How would you define Fair Labor? Ayush: To me, Fair Labor is about freedom. This means going beyond just fair wages, reasonable hours and safe working conditions, to giving workers the choice to work in a way that best suits their needs and helps them grow. Robert: What got you interested in helping to ensure fair labor around the world? Ayush: For many years now, I have been fascinated with mobile technology and its potential to create large scale global impact. Previously, I worked at Wikimedia Foundation providing analytical support to projects aimed at growing Wikipedia content in India, Brazil and Egypt. In 2013, I was working on data analytics for PayPal's mobile apps as the Rana Plaza tragedy struck Bangladesh. I was deeply disappointed then and I still am now, THREE years later, at the lack of responsiveness to this tragedy. I decided that I needed to do something about it and gave up my cushy tech job. I saw LaborVoices as an opportunity for me to best apply my skills to solving the global fair labor problem. Ayush Khanna Robert: How can technology save working people from labor abuse? Ayush: One word: scale. Large majorities of workers now have access to mobile phones (in many countries 90% or higher). They also have first-hand data about their working conditions: Who recruited them? Were false promises made? Are they paid on time and in full? Do they see underage workers in the factory? Do they experience verbal or physical abuse? If we can collect and organize this data, we now have real-time insights on recruiters and suppliers that can be used by global brands to work with ethical suppliers and to guide other workers towards the best (and safest) job opportunities. As more people start using phones that have internet access, this data will get even richer. I will add though - it's not just about the technology. We need to make sure that workers are protected from backlash for speaking up. Protecting their identities is key. Robert: Why do some big corporations test the limits of fair labor practices? Does it only have to do with the pursuit of profit? Or is it the fault of poor laws? A combination of the two? Or something else? Ayush: Like with most things it's a nuanced answer. I think it all starts with visibility. The average global brand, even with the best intentions, simply doesn't know enough about their supply chain. We've worked with big global names that had access to little more than an address and a phone number for many of their suppliers. Things are further complicated by the fact that there can be several tiers to the supply chain: Supplier X itself sources some materials from Supplier Y, and so on. Also, in many cases, suppliers indulge in unauthorized subcontracting - the practice of outsourcing production to other suppliers without the brand's knowledge. Lax laws that limit brand accountability mean that these problems receive less attention and hence less resources. Robert: What would the ideal law to restrict unfair labor practices in corporations look like? Ayush: That's a great question! I am by no means an international law or policy expert, and, as with any other law, enforcement is key. But here's an idea: it needs to start with shared accountability among brands, suppliers, and governments. Firstly, we need some kind of periodic reporting of issues across all suppliers. If an issue is discovered with a supplier, suppliers would be required to address them within a short time frame (1-3 months, depending on the severity of the issue) and invest in measures that prevent these issues from re-occurring. Once this process is repeated for a few suppliers, repeatable patterns of success will begin to emerge. If these changes are not made in time, brands would be required to drop the supplier. The reality is that most brands would rather invest in improving their present supplier base rather than finding a replacement. Robert: There are elementary and secondary school students reading this. What can they do to help end labor exploitation in the world today? Ayush: Ask questions. Look into where products are being made and how. Read the news about labor issues in specific industries. There is very limited data, but it's out there! Products like GoodGuide are a great starting point to gather information about specific products. At LaborVoices, we will be publicly releasing factory data later this year. Finally, speak with your wallet! Let brands know that you care about working conditions and demand answers. If more of us start asking the right questions brands will take these issues more seriously. This applies not only to students as potential consumers but also future members of the workforce. Robert: I guess that being a savvy consumer is about more than just shopping for the best price. Thanks Ayush! -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.
These days, when businesses think of promotion, they tend to think of Facebook ads. But what about the good old fashioned and traditional advertising methods? In the world of promotion, a business has to market its products and services and for many businesses, these traditional ways still play a strong role in the marketing plan. In today's intense digital environment, the well-known idiomatic expression "don't throw the baby out with the bathwater" applies to the traditional way of advertising one's business. One or more of these seven old fashioned advertising methods, could potentially translate into cold hard cash. So before saying, "traditional advertising is dead," consider one or more of these promotional strategies. Vinyl Banners Vinyl banners can be placed strategically for maximum visibility. Because there are so many sizes and types that can be used both outdoors and indoors, understanding your purpose for using them should be factored when deciding upon the best type of banner. Commercials and Advertisements Although television and radio commercials can be a costly way to brand and promote your business, consider also buying ad space in your local paper or magazine. When you're just starting out, promoting your business locally is better than trying to compete with national brands that have more visibility and traction. Eco Blimp Advertising Remember what it felt like to sit on the beach or park and watch a blimp go by on a sunny afternoon? These advertising blimps don't just offer that same kid appeal, but they also provide benefits and flexibility in terms of campaign options. Would your business benefit from one flight a week, several weeks or a year-long campaign? Fliers Consider passing out materials advertising your business such as pamphlets and fliers at trade shows, parking lots, store fronts and any area that generates traffic. The good thing about fliers is that there are cost effective and tangible. Direct Mail These days, many businesses complement their online promotional efforts by purchasing mailing lists that are targeted to their customer and then do a mail campaign with brochures, catalogues or postcards. This method can be highly effective if you intend to provide some kind of promotional merchandise such as coupons or business cards. Operate a pop-up stand Remember those hot dog and Italian ice stands that were (and still are) immensely popular in New York City? Now, it appears, these pop-up stands are an innovative way for businesses to spread the word about their products and services. Whether it's economically viable for a business with limited brand recognition to operate a pop-up stand is one thing, but what is clear is that a business has to do some out-of-the-box marketing and this article gives a few good ideas for approaching this method as an opportunity. Public Relations A public relations or PR firm has long been associated with promoting authors, but did you know that creating a long or short term campaign can also be effective in the form of press releases and outreach to potential customers thus building traction for your business? Will you consider utilizing one of these traditional advertising strategies for promoting your business? -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.
L Brands Inc (LB) just released their fourth quarter fiscal 2015 earnings results, posting earnings of $2.15 per share and revenue of $4.4 billion.