Category: Retail

Retail Cuba!

My wife and I had the unexpected pleasure of spending three days in Havana, Cuba last week, a coveted destination for me since the embargo was lifted.

Our official reason for going — the U.S. Government provides 12 — was people-to-people. Given my love of retail, we decided to make this the focus of our trip.

First, let me share a couple of details on Havana. It’s hard to describe, but everything is in shambles – from the roads to the roofs to the stairways inside every building. It’s almost impossible to escape the crumbling architecture. However, it’s easy to see the beauty that once existed and why Michael Corleone wanted to invest there. It’s hard not to close your eyes for a moment and daydream about a rebirth.

Second, it’s important to forget everything about our everyday way of life and remember that in Cuba the government owns almost everything with most products sold through government stores.

Recently, Cuba started allowing small businesses and entrepreneurs to sell directly to consumers. This has led to a proliferation of vendors around Havana – everything is a commerce opportunity. Cubans are selling goods in the stairwells of apartment buildings, offering everything from T-shirts with images of Che Guevara, to Cuban magic boxes and rattles, paintings and handbags with Cuban flags and images.

Third, the country has been under an embargo and so there’s no America there. No McDonald’s, no Starbucks, no Coca-Cola and no Yuengling (made at America’s oldest brewery for those of you not from Pennsylvania). I’m not saying whether this is a good or bad thing, I’m just pointing it out.

Retail, like in any major city, takes many different forms, from a roadside fruit stand to a kiosk to a tourist trap full of remembrances of your journey.

Becoming a retail-store owner requires a license from the government. Most retailers rent the space and pay the government a monthly license fee plus 10% of sales.

An example is this spot owned by Luis. He gets his goods both from the government and from locals who hand craft some of the items. Speaking of locals selling goods, during our visit the cracker guy, who sells door to door, stopped by to drop off an order. We witnessed this happening all over the place.

Markets (below-left picture) are located throughout Havana and are interesting to visit. Some are stocked with general items e.g. soda, fruits and vegetables, basic toiletries, while separate locations sell meat, fish, and poultry. In either scenario, access to products and supplies is limited and cleanliness is, well…yikes!

A few shops, such as this bespoke government-owned perfumery (below-right picture), were absolutely stunning and could have been seen in any hot shopping district in the U.S.

 

On the contrary, government-subsidized ration stores sell rice, sugar, oil, beans and salt and other basics. Customers bring a notebook to keep track of their purchases.

While American brands might not be present in Cuba, it doesn’t mean that big brands haven’t been adopted. We frequently saw Samsung, Nokia, Lacoste, Haier, Adidas, and Puma while exploring.

 

Despite our best intentions to bring back gifts for our friends and family, this proved to be quite difficult; unless of course, your vices are rum and cigars, in which case Havana is the place!

The question is, what is the real opportunity for retail growth in Havana. Our experience taught us the people are capable, ready and hungry for change. Paladars (homes converted into restaurants) and Airbnb’s are showing up everywhere and as we said commerce opportunities exist every five steps. The challenge is a combination of citizens with little to no disposable income, limited access to the goods they need, controls on how they can market them and an expensive and spotty Internet service.

We have high hopes for the people of Cuba, who are happy to see Americans as they stated we are good customers and spend money so I encourage you to book your flights, make the journey and let me know about your experience.  And most importantly, spend time talking and listening to the people!

Adios!

 

By the way, a good article and one that I referenced a few times in this one can be found here: https://nrf.com/news/cuba-rising.

I’m Your Huckberry

Like most people in the world who receive mail, I find myself inundated with catalogs that I have no recollection ever signing up for and more importantly that have nothing to do with anything I care about.

One day last week, as I was tossing the five I received into the recycling bin, one caught my eye. I’m not sure if it was the name, the logo, or maybe a combination of both, but something said to me, hmmm…this looks interesting.

It was from the guys at Huckberry, an independent online retailer, and magazine for adventurous guys, and after a flip through the story-telling pages of their magazine it turns out interesting was an understatement.

This particular issue, which they advise you enjoy under the influence, check, was telling me all about their 72ish hours in the San Juan Islands with a few of their compadres. With each turn of the page, I was transported a bit deeper into their journey feeling less and less like I was being sold to and more and more along for the ride.

As they state, their goal is to be equal parts store, magazine, and inspiration meaning that customers falling in love and finding value with the content and the company are just as important as the goods they are hawking! I found this to be the case.

The pieces that occupy each page are carefully curated, essentials for the Huckberry lifestyle, making it easier to conjure up why I would need the Bare Bones Forest Lantern, the Armogan Spirit of St. Louis Watch or everything on pages 40 & 41.

They don’t stop short at only caring about how I look. They also care about how I feel, ensuring I’ll be well nourished and well oiled, detailed by the Salt Baked Trout and Apple Maple Hot Toddy recipes.

The thing about this catalog, maybe the biggest difference,  was the sense of attainability, reminding me of an actual day in the life of my past versus a hopeful day in the life of my future. I know these guys; went to high school with these guys; drank beer and passed out on the porch and probably tripped over, or even onto, the fire with these guys. I didn’t have to stretch my imagination to connect to the brand as such is the case many of the others.

I look forward to the day they bring the 2D pages of their print and digital touch points to life with a physical experience; maybe in the shape of a pop-up shop on a houseboat or a stand on the side of the road to a picturesque Maine town.

Until then, I say well-done Huckberry!  I can’t wait to see where you take me next.