Why Amazon and Kohl’s Need Each Other

Amazon and Kohl’s are expanding a relationship that appears to be working for the two frenemies. As announced recently, all 1,150 Kohl’s stores across the United States will accept Amazon returns, thus expanding a program the two companies began to pilot in 2017. Kohl’s will accept eligible Amazon items (without a box or label) and return them for customers for free. As a result, Kohl’s becomes a product return center for Amazon. 

How Amazon Returns Work at Kohl’s

In early 2018, I visited a Kohl’s location in Woodridge, Illinois, shortly after the store began accepting Amazon returns. A giant banner at the front of the store made it clear that Amazon returns were welcomed. The designated Amazon returns station was set up near the entrance. I asked a sales associate why the Amazon returns center was at the front of the store. Wouldn’t it be better to place the center in the back, which would generate more foot traffic throughout the store? She replied that Kohl’s already operated its own returns counter at the back of the store, and having an Amazon returns counter at the same area was confusing to customers. But to encourage foot traffic, Kohl’s gave Amazon customers coupons with discounts for in-store purchases.

In April 2019, I visited the same store. I noticed that the Amazon returns desk had been moved to the back to an all-purpose service counter for customers of Amazon and Kohl’s (for both online pickup and returns). Signs throughout the store directed Amazon customers to the consolidated returns center.

Each person at the service counter accepted all returns, whether from Kohl’s or Amazon. It was clear that the associates had been trained to fulfill both types of returns based on how quickly they managed the process. An associate also confirmed that Kohl’s continues to provide coupons (with a one-week expiration date) to encourage Amazon customers to stay in the store and shop for Kohl’s merchandise. Someone at Kohl’s must have gotten the message: when you see an opportunity to get customers walking through your store, you take it. With the passage of time and the assistance of clear signage, customers will figure out where to take their returns.

In addition, near the entrance, an Amazon-branded pop-up store offered a wide range of Amazon products, including different Echo speakers and Fire products. Here was an attempt to make Kohl’s a distributor for Amazon as well via a pop-up store. But apparently the attempt failed to take root. Amazon recently announced the discontinuation of pop-up locations including those at Kohl’s stores. It should be noted, however, that Kohl’s will stock Amazon products, just not in an Amazon-branded space. So Kohl’s has become a retail outlet for Amazon after all. Why bother with a pop-up store if Kohl’s will stock your merchandise, anyway?

Does the Strategy Work?

Data from Earnest Research suggests that the partnership is paying off for Kohl’s. After Chicago stores began accepting Amazon returns in 2017, “Chicago sales, transactions, and customer growth all outpace the same metrics nationwide for 2018,” according to Earnest.

And the relationship certainly makes sense for Amazon even if the pop-up stores have failed. Having Kohl’s as fulfillment partner attacks one of the headaches of buying online: ease of returns. And Amazon enjoys the services of a returns counter without having to own a brick-and-mortar store. Of all Amazon’s services, such as retail, advertising, cloud computing, retail remains particularly costly. It behooves Amazon to find better ways to contain expenses (which the company is doing based on its latest quarterly earnings report). Even the mighty Amazon needs partners 

Meanwhile Kohl’s is maximizing the value of its floor space in other ways, such as by leasing locations to Planet Fitness. And Kohl’s is not the only retailer leasing floor space. Macy’s has been leasing space to retailers such as Sunglass Hut and LensCrafters

What’s Next?

It will be interesting to see how this relationship unfolds. Will Amazon lean on Kohl’s to sell more of its products, such as its fast-growing stable of house brands? In fact, Motley Fool speculates that Amazon could buy Kohl’s outright. The notion isn’t that far-fetched (see Amazon’s acquisition of Whole Foods). Retail apocalypse or opportunity? Stay tuned.

What Comes Next After K-Pop’s Big Week?

K-pop is having a moment in America, and for once, BTS is not the only reason. But is K-pop truly achieving mainstream popularity Stateside beyond its fan base? 

The genre of pop music born in South Korea is a global phenomenon, and although K-pop is bigger than BTS, the Korean boy band’s loyal and global fan base (the ARMY) is surely a major reason why BTS has been the face of K-pop in the United States for the past few years. During the weekend of April 12, BTS set a record for the song with the most YouTube views within 24 hours, racking up 74.6 million views for its single “Boy with Luv” (featuring Halsey) from an album, Map of the Soul: Persona– which had sold millions of copies long before its April 12 release.

And on April 13, BTS became the first K-pop group to appear on Saturday Night Live, prompting music veteran Bob Lefsetz to write, “What kind of crazy, f—ked-up world do we live in where a Korean boy band sings to track and blows away every performance on SNLthis year? . . . That’s right, the Koreans know more about music than the Americans, at least those in the music industry.” Meanwhile, Map of the Soul: Persona was on its way to becoming a Billboard Number One seller.

https://youtu.be/jSFIwS2b-kg

The Rise of Blackpink

And BTS has company. On April 12, Blackpink became the first-ever female K-pop act to perform at the Coachella Valley Music & Arts Festival — and on April 19, Blackpink performed during Coachella’s second weekend. Blackpink’s appearance was a coup because Coachella caters to the largest demographic in the United States, millennials. Of course, Blackpink was participating in a larger festival featuring headliners such as Ariana Grande and Janelle Monáe. Even still, Blackpink’s appearance stole buzz from BTS, creating, I suppose, K-pop’s equivalent of the Beatles-versus-Stones rivalry during the British Invasion. And consider these popularity signals:

  • When BTS accumulated the most YouTube views within 24 hours, the band broke a record that Blackpink had just set for their song “Kill This Love” a week earlier. 
  • The group’s EP Kill This Love debuted at 24 on the Billboard 200 chart.

As of this writing, Blackpink is keeping K-pop visible on the charts, not BTS. But stay tuned.

How Big Is K-Pop?

Meanwhile, whether K-pop has become a mainstream phenomenon in the United States is open to debate. True, we’re seeing K-pop acts achieving prominent roles in mainstream TV shows and concerts (after Coachella Weekend One, Blackpink performed on The Late Late Show with James Cordon. BTS is appearing on CBS Sunday Morning April 21). And BTS’s 2019 tour sold out quickly

On the other hand, the singles and album charts are dominated by mainstream pop and hip-hop, with K-pop barely visible (as you can see by reviewing the Apple Music Top 100Billboard 200, Billboard Hot 100, and Spotify Charts). And BTS’s SNL performance, while lauded, did not exactly win over mainstream American viewers. SNL suffered low ratings when BTS performed, especially among the 18-49 age bracket, an important age cohort with spending power. As Ashley King of Digital Music News points out, the low ratings reinforce a perception that BTS’s fan base remains firmly entrenched among digital natives as opposed to a larger American audience:

Teen girls in the United States may love BTS, but SNL viewers do not.  Adding to the mismatch, BTS’ younger base is far less likely to care about live television — or even know how to access it.

King goes so far as to state:

The no-show raises the possibility that BTS’ popularity in America may be a flash in the pan, with finicky younger audiences eventually moving onto the next boy band. The numbers suggest that BTS may already be past its prime in the U.S. The K-pop group placed 7 tracks in the top 10 on iTunes last Friday, but they are mostly gone now. Last August, the group claimed all 12 top spots on the U.S. iTunes chart with tracks from the Love Yourself album.

Incidentally, all 26 songs from the Love Yourself album featured in the top 50 when it debuted. This rapid success on the charts has prompted plenty of media outlets to highlight the craze, making it seem like K-pop is a huge media sensation. In reality, the genre still appears to be popular among a particular niche of fans.

Adam Buckley of Digital Music News argues that a vocal and relentless fan base makes K-pop seem bigger than it really is. (Side note: are Adam Buckley and Ashley King the same person?) Buckley points out that K-pop songs fall off the charts as quickly as they rise, and he also notes the paucity of K-pop songs on the Billboard lists.

That said, the popularity of the BTS tour cannot be denied although I’m sure Adam and Ashley will fold their arms and ask just how many of the stadium fillers are of legal age. At the risk of bringing the wrath of music fans on my head, I will say this: when the Beatles first hit it big, no one thought they’d really break through beyond the teen market, even after their triumph on Ed Sullivan (a historic ratings breakthrough unlike BTS’s paltry ratings on SNL). Beatlemania was about screaming teenage girls. And then things changed.

K-pop is having a moment. What comes next?

Amazon Prime Video Seeks Cultural Relevance with All Voices Film Festival

Amazon Prime Video wants to empower diverse voices with a new film festival. On April 8, Prime Video began accepting entries for the first annual All Voices Film Festival. According to Prime Video, the All Voices Film Festival is designed to uplift underrepresented communities. Prime Video invites filmmakers to submit short (40-minute) films with the following requirement:

The writer, director, cast or theme of the short must reflect underrepresented communities. This includes but is not limited to people of color, ethnic, gender and religious minorities, members of the LGBTQI community, people with disabilities, veterans, young, aspiring filmmakers as well as older adults, and other groups that are underrepresented or marginalized in the US or globally. 

A panel of judges will select winning entries in July. Prizes range from a $25,000 royalty bonus and paid trip to visit Amazon Studios to a $10,000 royalty bonus. 

My take: the All Voices Film Festival is a smart move for Amazon Prime Video, Amazon’s streaming service. The festival, if curated well, should lend cultural relevance to Prime Video, a follower to Netflix and Hulu.

Amazon Prime Video Plays Catch-Up

Amazon Prime Video distributes both third-party and original content (the latter made by Amazon Studios). Amazon CEO Jeff Bezos has characterized video content as a stepping stone for creating more Prime members. As he once said, “We get to monetize [our subscription video] in a very unusual way. When we win a Golden Globe, it helps us sell more shoes. And it does that in a very direct way. Because if you look at Prime members, they buy more on Amazon than non-Prime members, and one of the reasons they do that is once they pay their annual fee, they’re looking around to see, ‘How can I get more value out of the program?’”

The problem is that being a stepping stone for selling more shoes detracts from the legitimacy of Prime Video. Prime Video has certainly distributed popular and prestigious content. But Prime Video doesn’t create buzz and shape mainstream cultural tastes as Netflix – and, to a lesser extent, Hulu – does. Netflix creates cultural relevance by shaping pop culture (see Stranger Things and its impact on 1980s nostalgia) and influencing behavior (as Tidying up with Marie Kondo has done by making so many people want to streamline their homes that resale shops are being overrun). 

A Step in the Right Direction

The All Voices Film Festival is a step in the right direction. Netflix has been building a reputation as a haven for New Hollywood visionaries who want to make personal movies that Old Hollywood won’t touch, an example being Alfonso Cuarón’s Roma. The All Voices Film Festival may give Amazon Prime Video the high ground for emerging talent. And its focus on under-represented voices – ranging from LGBTQi to veterans – taps into an important national conversation about diversity and inclusion that is much bigger than the movie industry. Being a source of content that connects at a topical level nationally is what cultural relevance looks like.

As Latasha Gillespie, Amazon Studios’ head of diversity, equity, and inclusion, told Variety, “At Amazon Studios, we are looking for passionate storytellers who reflect and represent all backgrounds, specifically so that we can share their experiences and stories. We created this opportunity because we wanted a way for underrepresented voices to be heard.” 

A Warning Shot Across the Bow

The All Voices Film Festival also represents another warning shot across the bow of Old Hollywood. Although Netflix gets credit for challenging Old Hollywood, Amazon Studios was actually the first streaming service to release a movie nominated for Best Picture at the Academy Awards (Manchester by the Sea). Its feature-length titles include Cold War, nominated for Best Foreign Language Film Oscar. Amazon Studios is also producing the anticipated Lord of the Rings television series. The All Voices Film Festival could give Amazon Studios the inside track to emerging talent and position Amazon Prime Video well against Netflix, too.

Everything now comes down to execution: developing potentially exciting new talent and using good marketing to promote it. Amazon has deep pockets. Money doesn’t buy you good judgment and cultural relevance. But Amazon Prime Video is off to a promising start.

The Problem with Mick Jagger

America doesn’t know what to do with Mick Jagger.

Jagger famously captured the essence of rebellion and raw sexuality decades ago. At the height of his creative powers and cultural relevance in the 1960s, he was a threat to the established order and a voice for a younger generation. He was also aware of the limitations of that role. He once said, “I’d rather be dead than sing ‘Satisfaction’ when I’m 45.”

Now he’s singing “Satisfaction” well into his 70s. Why? Because performing is what he loves. Being a musician is his passion. And so he continues to tour and record music, as the Rolling Stones have been doing since 1962. But we don’t know how to handle a 75-year-old Mick Jagger prancing onstage, shaking his butt, and singing “Let’s Spend the Night Together,” “Start Me Up,” and, indeed “(I Can’t Get No) Satisfaction,” all of them staples of the Stones’s No Filter tour in 2018. 

Seventy-five-year-olds are not supposed to sing about sex and drugs. They’re supposed to move over and let a younger generation have the stage. It’s OK for older generations to occasionally entertain us so long as they do cute things such as escape nursing homes to attend heavy metal concerts. But Mick Jagger refuses to step aside and age quietly.

Our discomfort with Mick Jagger became clear when news broke that the Rolling Stones were going to postpone their 2019 tour because Jagger was suffering from an undisclosed medical condition. In due course, we would learn that he required a heart valve replacement, which was performed successfully April 4. Although the news triggered plenty of supportive comments, jokes about his age surfaced on social media, and The New York Times ran an ageist article that noted, “Jagger is not the first 1960s-era music icon to show signs of slowing down in old age” and chalked up his (then undisclosed) health problem as a result of the demands of touring.

I thought it was interesting and disappointing that The New York Times assumed Mick Jagger was suffering an age-related problem before anyone knew what was wrong with him. And citing the ravages of touring seemed odd given that Jagger has prided himself on how well he takes care of his body through a strict diet and rigorous exercise. If anything, touring energizes him. 

To be sure, the odds of requiring a heart valve replacement increase as you get older. But why is it necessary for publications such as CNN to point out repeatedly that Jagger is a 75-year-old grandfather and great grandfather when reporting the results of the surgery?  

We don’t know what to do about Mick Jagger because we don’t know what to do about the reality of growing old. We want to keep the elderly in the background because seeing them reminds us of our older selves. Perhaps this very personal fear of growing old helps explain rampant ageism in the workplace, as discussed in a recent Fast Company article, “Ageism is thriving, so what are companies going to do about it?” Ageism is not about rejection of The Other. Ageism is about negating our older selves. 

In fact, Mick Jagger is a reminder that our stereotypical notions about aging can be proven wrong. He’s a vibrant rock star dancing and singing about whatever he wants, even if the notion of a 75-year-old man singing about sex makes some people uncomfortable. Well, deal with it. And hope that your future is as bright as Mick Jagger’s.