Yesterday I predicted the demise of American Giant sweatshirt company out of San Francisco, and claimed I had a pretty good track record. What was the last company I reviewed and predicted demise?
Why Hointer, on 20 Nov 2012, I panned Hointer and followed up a year later. How are they doing today? Six months on?
Oh.
The revolutionizing retail did not work out so well, perhaps for reasons I mentioned at their launch. They have repositioned themselves as a consultant to other stores, and recast their retail store as a "laboratory." I imagine trying to recover a sunk ten million dollars is an important job.
I believe the problem with these centimillionaires who made money in dotcoms is the dotcom itself is a false economy. They labor under what is called survivorship bias, they must be smart because they have the most money and the best degrees. They just know that wet sidewalks are what causes rain! How do they know? Because they have advanced degrees from prestigious schools and lots of money. So not only can they assure you wet sidewalks cause rain, very, very many people believe them. Because they have advanced degrees from prestigious colleges and lots of asset-less tallies to the name!
Until they try something else. She could have found with $100,000 what she dropped ten million into. Show might have found with $5000.
She is an Amazon veteran, and running a retail operation because Amazon cannot make money on eCommerce (supposedly a big secret, except for Amazon will readily tell you the model is not so good.) So she brought Amazon skills to brick and mortar. Nonperformance in eCommerce does not translate into performance in brick and mortar.
Nonetheless, I meet countless people who just know they will get rich with online ecommerce since it is simple, cheap, and foolproof. I wonder when a critical mass will come to understand the internet is an unlikely place to launch a business. I get cranky when lots of money is spent to promote bad ideas that other emulate because the proponent is rich. In all cases, whether rich or poor, you must talk to the customer. Rich and poor, everyone wants to skip that step.
Those who sell TO ecommerce sites, and stay away form eCommerce itself, especially any wholesale to consumer, have a much better chance.
Let's watch and see how Hointer does as a retail shop consultant. "My plans did not work out. Let me advise you on how to do what I did." Seems like a non-starter to me.
In the meantime, there are the photo-ops with no sales taking place to keep the image alive. Wow! Privy council! I swoon! (Does it sell jeans?)
Feel free to forward this by email to three of your friends.
Why Hointer, on 20 Nov 2012, I panned Hointer and followed up a year later. How are they doing today? Six months on?
Oh.
The revolutionizing retail did not work out so well, perhaps for reasons I mentioned at their launch. They have repositioned themselves as a consultant to other stores, and recast their retail store as a "laboratory." I imagine trying to recover a sunk ten million dollars is an important job.
I believe the problem with these centimillionaires who made money in dotcoms is the dotcom itself is a false economy. They labor under what is called survivorship bias, they must be smart because they have the most money and the best degrees. They just know that wet sidewalks are what causes rain! How do they know? Because they have advanced degrees from prestigious schools and lots of money. So not only can they assure you wet sidewalks cause rain, very, very many people believe them. Because they have advanced degrees from prestigious colleges and lots of asset-less tallies to the name!
Until they try something else. She could have found with $100,000 what she dropped ten million into. Show might have found with $5000.
She is an Amazon veteran, and running a retail operation because Amazon cannot make money on eCommerce (supposedly a big secret, except for Amazon will readily tell you the model is not so good.) So she brought Amazon skills to brick and mortar. Nonperformance in eCommerce does not translate into performance in brick and mortar.
Nonetheless, I meet countless people who just know they will get rich with online ecommerce since it is simple, cheap, and foolproof. I wonder when a critical mass will come to understand the internet is an unlikely place to launch a business. I get cranky when lots of money is spent to promote bad ideas that other emulate because the proponent is rich. In all cases, whether rich or poor, you must talk to the customer. Rich and poor, everyone wants to skip that step.
Those who sell TO ecommerce sites, and stay away form eCommerce itself, especially any wholesale to consumer, have a much better chance.
Let's watch and see how Hointer does as a retail shop consultant. "My plans did not work out. Let me advise you on how to do what I did." Seems like a non-starter to me.
In the meantime, there are the photo-ops with no sales taking place to keep the image alive. Wow! Privy council! I swoon! (Does it sell jeans?)
Feel free to forward this by email to three of your friends.
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