The cost of washing machines is up by almost $100.

That's because a tariff is in fact a tax on consumers.  The Chinese aren't paying that extra $86 - $92.  You are.  And if you thought buying "American" would help, you are wrong.  Domestic machines went up by 5% - 17%, versus 12% for foreign brands.  (White, 2019)

It might not be just greed, because component parts for all machines have gone up thanks to President Trump's new taxes.  But, Whirpool CEO Marc Bitzer was one of the people who pushed for those tariffs in January 2018.  Just saying. 

So the question is how long can Trump keep sending out untruthful tweets like this one from Friday before people figure it out.

"Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S." — tweet Friday.

(2019)

After all, he is the master of miscommunication.  He tells his lies first and repeats them often.  Eventually people think what he is saying is true because they "have heard it somewhere."

But, I'd say the next time they buy a washing machine they are going to notice.  Maybe that's why category sales decreased by 9.7% in 1st quarter 2018.  (Statista, 2019)

You can fool some of the people, some of the time...

White, M. (2019, April 19)  Trump's washing machine tariffs are costing Americans almost $100 more per appliance. nbcnews.com.  Retrieved May 14, 2019, from https://www.nbcnews.com/business/consumer/trump-s-washing-machine-tariffs-are-costing-americans-almost-100-n999461

(2019, May 13) Trump's trade talk is full of misinformation, experts say. cbsnews.com.  Retrieved May 14, 2019, from  https://www.cbsnews.com/news/trump-china-trade-talk-misinformation-tweet-claim-review-2019-05-13/

Unit shipment of automatic washers in the U.S. from 1st quarter 2012 to 4th quarter 2019 (in 1,000's)  https://www.statista.com/statistics/221445/forecast-of-automatic-washer-shipments-in-the-us-by-quarter/

Just tell me what to do.

HBR did a story a while back discussing their observation that Millennials are less likely than previous generations to ask why they are being asked to do something, and simply want to be told what to do.

It's an interesting observation.  I imagine part of the reason for their behavior is the way that they have been raised.  A very articulate Millennial once said to me: "Imagine what it's like to have every moment of your life scheduled from the day you are born."  Sounds awful.  But you can start to see the problem.  They have been told exactly what to do from birth and have been encouraged not to ask questions.  Why change now?

The truth is that they are terrified of failure.  My Millennial spokesperson also pointed out that "they have been under pressure to succeed their entire lives - even having to compete to get into kindergarten."  Oh wow.  Now I am really feeling sorry for them. 

Their helicopter parents have made the situation worse by not allowing them to fail.  Not only does this short change their learning since you learn more from your failures than your successes, but it also overemphasizes their fear of failure.  And it doesn't allow them to learn how to bounce back from failure, and develop resilience, which is much more important in the scheme of things.

I'm not so sure that I believe that Millennials are less likely than previous generations to ask questions.  But if they are, I can certainly see why.  Can't you?

Are you supporting a boycott? Join the club

One out of three Millennials and Gen Xers have boycotted a brand in the past year. (Carufel, 2019)

The New York Times has a section online devoted to boycotts.  In April alone there were seven efforts covered.  Probably more were not.

https://www.nytimes.com/topic/subject/boycotts

While there is no doubt that activism is on the rise, I'm wondering if the increase in boycotts isn't more about the fact that all decisions are emotional.  Research shows that we decide emotionally and justify rationally.  It's not nearly as sad as it sounds.  The reason our decisions have to be made using emotions is that there are too many variables involved for them to be strictly rational.  Instead we listen to our guts.

Besides, buying a brand that supports a cause you care about can lift your self-esteem just as much, or perhaps more than buying one that is premium-priced.  So why wouldn't either criteria be equally valid?

Of course it's also true that our decision to join a boycott could be an extension of our desire to be part of the tribe.  While the need to belong has always been part of human nature one of the side effects of social media is that we see the perfect lives that others are living and long to join them.  And when we do, we follow their cues; which social media is only too happy to share with us.

78% of Americans participated in a boycott this year.  Were you one of them?  Why?

Carufel, R. (2019, February 7)  1 in 3 Millennials and Gen Xers have boycotted a brand in the past year.  agilitypr.com.  Retrieved May 1, 2019, from  https://www.agilitypr.com/pr-news/public-relations/1-in-3-millennials-and-gen-xers-have-boycotted-a-brand-in-the-past-year/

Will Green Millennial men chose Wrangler over Levi's?

Monday was Earth Day.  I remember the first one in 1970.  Probably because I won the poster contest.  This year I couldn't help thinking about how much worse the environment has gotten since then.  Such a shame.

But as an environmentally conscious Baby Boomer I do my best to limit my impact by eating mostly veggies, living in a small space, not owning a car, and recycling regularly. 

I also wear Levi's jeans.  The real ones made from denim.  My latest pair came with a label inside that says:  "Care for our planet: wash less, wash cold, line dry, donate or recycle."  That sentiment really works for me.

Last year, when Levi's sales started to surge I asked my students to weigh in on the interesting sales techniques that the company was using to see which one might be of the most appeal to Millennials and Z's.  You can check out their thoughts here...

http://pjlehrer.blogspot.com/2018/10/is-cause-marketing-reason-for-levis-11.html

Which brings me to Wrangler.  Last fall VR Corp, Wrangler's parent company, was considering selling the brand.  But now they are going in a different direction and launching the upscale "Wrangler Rooted Collection."  At $100 a pop these jeans are priced higher than Wrangler typically is.  But the jeans - men's only - come in five styles - one each for Texas, Alabama, Georgia, North Carolina and Tennessee.  All are made from sustainably grown cotton traceable to a family farm. (Mahoney, 2019)

Interesting idea - part green - part tribal customization.  Great story.

But will it be enough?  My gut is telling me that Levi's is still a Boomer brand at heart and we will keep buying them until one of us is no more.  According to my students they have also come to see Levi's as "cool."

Will they feel the same way about Wrangler after they learn about the rooted collection?  How important is a story to your purchase decisions?  What about the premium price?  Is it too much for Millennials?  How much does personalization matter?  Is having five designs the type of personalization that matters?  Finally, does concentrating on only five markets make sense?

Mahoney, S. (2019, April 22)  With $100 Hyperlocal Jeans, Wrangler Brings Sustainability Home.  mediapost.com.  Retrieved April 23, 2019, from

https://www.mediapost.com/publications/article/334783/with-100-hyperlocal-jeans-wrangler-brings-sustai.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=113597&hashid=ybq2buULrntyGS6NfbELk0afrrI

Why are yogurt sales down?

According to Nielsen data, yogurt sales fell 6% from February 2018 through February 2019.  And, Greek yogurt sales fell by 11%.  The category had been growing steadily in the past five years, from $8 billion to $8.8 billion in 2017, so it was a bit of a surprise. (Forbes, 2019)

There has been much speculation about why.

Chobani CMO Peter McGuinness attributes the decline to "too many choices" based on the fact that the average supermarket now carries 306 different varieties of yogurt.

Another possibility is that health conscious Millennials have moved on to dairy-free options.  That segment of the category is expected to grow 4.9% annually for the next decade.

Or perhaps the taste options are not up to Millennial standards.  That could be resolved by new recipe hacks like "Beets and Pistachio" from Lynne Ireland.

But mostly I keep thinking about how I sometimes have to go to several stores in my neighborhood to find Organic Plain Fat Free yogurt.  Maybe it's just a matter of better inventory management.

So why do you think yogurt sales are down?  Is it due to analysis paralysis from too many choices?  A shift to trendier non-dairy options (i.e. social proof)?  Desire for more exotic flavors?  Poor inventory control?  Or something else?

Forbes, T. (2019, April 10)  Is Diversity A Bane Or Boom For The Yogurt Culture?  mediapost.com.  Retrieved April 17, 2019, from  https://www.mediapost.com/publications/article/334329/is-diversity-a-bane-or-boom-for-the-yogurt-culture.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=113543&hashid=Pumyb0Zq27pukAWPYSxcJWfpafM