wallydownundy

On Canton Road in Tsim Sha Tsui it’s not unusual to see shoppers lined up, waiting to be granted permission to enter luxury retail outlets. It freaked Australian friends out when they visited. Ange was indignant - “I won’t queue for Chanel!”

Luckily when I snapped this photo I’d chosen the right retail outlet. Why?

Last week a Hong Kong couple tried to take photographs in front of the Dolce & Gabbana store in Harbour City mall on Canton Road in Tsim Sha Tsui. Details are sketchy, but a security guard and a sales person stopped them from photographing. It was stated that Mainland tourists can take photos but not Hong Kong locals. The man posted this on Facebook and his comments were flagged by local newspaper Apple Daily (circulation 280,000 - thanks Sunny!).

The next day, this tabloid newspaper sent a photographer - who was also sent away. Again it was explained that local Hong Kongers couldn’t take photographs, while Mainland tourists could. This was too good a story for Apple Daily to pass up. According to Wikipedia, this mix of fashion and controversy is tailor made:

“Apple Daily’s popularity as Hong Kong’s second best selling newspaper, according to AC Nielsen, is derived from its concentration on celebrity coverage, brash news style, sensationalist news reportage and its anti-government political positions.” (Source: Wikipedia)

From the coverage in Apple Daily, the issue escalated through social media. It appears the discrimination by a luxury retailer became a political issue, as some fear preferential treatment of Mainlanders means local rights are being overlooked. Others protest the power of large scale brands.

On Sunday a protest was held where over a thousand attended. Throngs blocked the entrance to the store. All carried cameras.

In response Dolce & Gabbana issued a statement denying their staff made the comments. No apology was offered. Yesterday, inflammatory remarks attributed to a D&G salesperson were widely circulated on-line. then reprinted in today’s mainstream newspapers. The South China Morning Post reprinted her accusations:

Woman claiming to be Dolce & Gabbana employee calls protesters ignorant

She used other terms - apparently labelling the protesters “mentally retarded” (see article above).

This is a classic example of a crisis that is spiralling out of control. In the absence of clarity from Dolce & Gabbana the on-line and mainstream media are making the news. In response the company needs to come out publicly and address these issues before the press. A large-scale media conference could prove unruly. But a series of in-person interviews offer a better opportunity to get the message across.

And first and foremost, this needs to start with an apology - whether it’s over the misunderstanding, the way the issues has escalated unreasonably, or the initial comments themselves. If not, D&G risks long-term brand damage.

What should have been a “one day wonder” is turning into another week of front page headlines.

UPDATE: Today ‘Campaign Asia’ ran a feature story on this issue, and quoted me. Read it here: http://tiny.cc/8szt7

The Australian Association of Convention Bureaux held their conference on the Gold Coast earlier this month. Attendees gathered under the banner of ‘Brain Power’. The aim was to find ways to link local intellectual assets to convention themes, such as a medical pioneer in neurosurgery and a health conference.

As part of the agenda, I was invited to present on the basics of media relations. From writing a press release to engaging in social media, there was a lot to cover in 45 minutes.

To ensure I covered all the right bases, I asked what was necessary for the presentation on the ‘Media Diplomat’ group on Linked In.  While many use Linked In for the networking connections, you can take the site to another level by accessing the numerous groups. These forums are as good as their members. Some have robust dialogues with active participants. Others are quite stale. It’s a good idea to explore the groups relevant to your industry - you can meet other professionals and continue learning.

The presentation covers the basic rules of engaging with journalists, to some core tools in media relations (writing a media release, hosting a press conference).  The end covers the basics of social media relations.

As always, the presentation is available to all on Slide Share - check out my page here for a copy of the slides.

The combination of record high floodwaters and the slow summer season means Australia’s media is awash with water stories. Just as there’s a gross excess of water, there’s a gross excess of coverage. Yet within all that news there’s a lesson for anyone preparing for a media interview.

Technical talk is always hard for laymen to understand. The best spokespeople are able to cut through with visual language. “The area flooded is the size of France and Germany combined.” That reference is easy to understand and has been used repeatedly. Whereas the following is harder to conceptualise:

“PrimeAg Australia Ltd., a producer, estimated about 2,000 hectares, or 13 percent, of its 15,200 hectare cotton crop had been inundated.” (Source: Bloomberg)

Last night on ABC Radio National, one expert discussed the increased amount of floodwater being released from a local dam to make space for oncoming floodwaters. Some 22 megalitres were released daily. Two questions later we learned that was up from a daily average of 10 megalitres. But the oncoming floods represented gigalitres of water.

What?

I wasn’t raised with the metric system. The Americans refuse to believe it exists (except for alcohol which is sold in litres versus quarts). But the “mega” and “giga” sounded suspiciously like my computer storage. Answers.com takes the easy route - their response to “how many litres in a megalitre” gains in simplicity what it loses in ease of understanding (1,000,000.0 L = 1 ML).

But leave it to the fishermen to be straight to the point. On an angler’s forum on Ausfish, the question is answered easily by Slates - a bronze fish member:

“One cubic meter of water is one thousand litres (one kilolitre) and very close to one thousand kilograms. Therefore, if you have a pool that’s 50m X 25m X 2m (guessing at the olympic size), you’d be looking at 2.5 megalitres.” (Source: Slates on Ausfish.com.au)

So let’s rewind to the ABC Radio National interview. It would have been clearer to say:

“On a normal day we release 10 megalitres of water - enough to fill four Olympic-size pools. We’ve jumped that to 22 megalitres every day - or the equivalent of 10 full pools.” (Source: Me!)

Got it? The lesson is simple - use your technical term, but then define it immediately in a context every person can understand. It will keep you from doing a belly flop on air.

A recent advertising and public relations campaign by high-profile retailers has struck a nerve - unfortunately, it wasn’t the one they aimed for.

A coallition of big name retail stores banded together to demand a level playing field. Their argument is that on-line sales allow consumers to dodge taxes for purchases under $1,000. Graphs showcasing why Levi Jeans cost $69 on-line versus $95 in-store aim to educate consumers. The real goal is to get government to impose restrictions like duty or taxes on any Internet sales. The problem - says the government - is that collecting tax globally on $100 sales will cost more than is raised.

It’s more than uncompetitive. According to retailer Gerry Harvey it’s “Un-Australian.” We’re told paying more “is the right thing to do.”

SIDEBAR: Three years ago the Australian dollar was mockingly called the “Pacific Peso” - at one stage the Australian dollar was worth 50 US cents. Flash forward to today and we’ve achieve parity - the US and Australian dollars are worth the same. So instead of paying AU$150 for a US$100 item we’re paying AU$100. By year-end analysts say AU$1 will equal US$1.10.

The arguments against retailers are diverse - from poor service to high prices to limited trading hours to high prices (did I say that already?). Moving from New York City to Sydney involved a number of culture shocks. The worst was the lack of a strong retail culture. There are stores - but back in 1990 you’d pay 3-4 times what Americans paid. And while manufacturing in China has driven down prices, what hasn’t changed is the limited selection, abbreviated hours and poor service. If you want to shop after 6:00 pm there’s one night a week - or your precious weekend.

What’s most frustrating is the challenge finding what you want. On the weekend we went to Westfield Bondi Junction - a glamorous and wonderful mall in Sydney. We didn’t have much in mind spare wasting time. When we decided to buy the second season of “Glee” we were directed to three separate stores. None had it in stock. One had stopped selling DVDs but no one had updated the store directory. That afternoon Amazon.com had the product - and a lot more. Once again we over-spent.

Australian retailers need to take advantage of the on-line trend and provide a robust shopping experience in their web stores. Most are horribly antiquated. Buying a book? Good luck - one local on-line store took the credit card - then said after the book would ship in three months when stock arrived. That wasn’t a transparent experience at all.

In the USA on-line and physical stores co-exist beautifully. There have been massive changes to the retail sector however the addition of good on-line options has been “additive” - more is sold than ever before. Stores are happy. On-line retailers are happy. And the customers? Well the kings are happy too.

Kings of Retail vs Customer is King?

Running a professional services firm is a constant guessing game of “What If?” While a vast majority of our clients are on retained programs, with set fees month after month, some are project-based. We are uncertain how the business will fluctuate month to month.

And as a growth business, we’re also engaged in a number of new business discussions. These are companies we’ve not worked with who wish to retain our services - or those of another firm. We need to plan the resources for each.

Our resource is the time of our professionals. And like any resource it is finite. There are so many hours int he day, and so many people working here. The math is quite simple. And before long, you run out of people and hours.

Like manufacturing, I can search for efficiencies. Less double-up in meetings. Smarter allocation of work from senior to junior professionals. Use of technology to suicken repetetive processes, whether that’s a report on the day’s newspaper headlines of a summary of work in a month.

But unlike manufacturing, I cannot pre-purchase machinery in advance of work orders. People aren’t as readily available and if they aren’t busy with clients, it’s a squandered resource. Yes, everyone can help with running and promoting the company. But that’s not the most effective use of valuable skills.

So most of the time managers in charge of an agency play “What If?” What if we secure the new client assignment? What if our existing client delays or cancels a major project? What if we have several people out sick? (Last week we lost seven people simultaneously to a virulent flu.)

Lately I’ve been silently planning for a major piece of new business. We’ve been preparing our strategy during the days, evenings and weekends. And initial signs are encouraging. That’s forced me to look at office space, technology, people, resources. In quiet I’ve found space for eight new desks, interviewed ten people and prepared a capital plan for new technology. And that’s all without the certainty of success.

The problem is, if you don’t play “What If?” then later down the track you’re forced to deal with “What Now?” In almost every instance I would prefer to be prepared. So it’s back to planning - but don’t tell anyone.

Poor Jothy Hughes. This “publicist” couldn’t get his client on national television. The firm bought gold, so Jothy arranged for actresses to pose as divorcees. At a staged event they would sell their wedding jewels and act excited by the value. Hooray for divorce!

But Jothy’s emails trying to tempt gold-diggersgold sellers were published. Now Jothy’s dodging camera crews in car parks and his employer refuses to acknowledge his existence. The story received national airplay in AUstralia on “Today Tonight” and “A Current Affair”.

A PR man’s worst nightmare? Maybe not.

One conspiracy theorist notes the responses and car park interviews are too polished. Was this guy caught out or stage managed? The crisis has forced gold buying parties into prominence never-before seen.

Now I know I’m supposed to be creative in my job. But it never occurred to me to fake a crisis in order to propel further media.

Is that what those Exxon Valdez guys were thinking?

This morning I presented at a Dow Jones seminar here in Sydney at the up-market Hilton Hotel. Apparently they host a series of forums across Asia Pacific, and this was the first social media event in Australia this year. A similar event had been held in Singapore a few weeks back.

The audience of 150 people were predominantly from the client side, with fair representation from the major agencies. Leading banks, corporations, government departments and others attended.

The first speaker was Social Media Senior Advisor at Telstra – a real coal-face position. The last speaker was regional salesman for Dow Jones, Lars Voedisch (and former FH Singapore person!). In-between was yours truly!

Knowing many would focus on the tools and tips and case studies, I focused on the meta-trends (erosion of trust in institutions, explosion of publishing and thus the death of top-down communications). I said it would be a good deck for counsellors to use with their CEOs so they understood the framework for engaging in social media.

There was one reporter in attendance – Glen Frost from “The PR Report”. Also there was our new Account Director, Paris Brimo. I paired Glen and Paris so she’s now the “cover girl” for the next edition!

All in all a great way to spend the morning (and the better part of a day preparing the deck). If you need the slides they are here: http://www.slideshare.net/Wallyballoo

Through the miracle of modern technology and a wide network of contacts, I am the guest lecturer this evening at the International Public Relations course at Indiana University. My former Ford colleague Jim Bright has been a professor there for several years. Given his troupe is preparing for a field trip to Japan - and to satisfy their interest in how a boy from New Jersey is lucky enough to land in Sydney - I get to speak to the class.

As I gaze out of the Skype video window into the classroom, I’ll see 16 students. Nate from Evansville has the wickedest sideburns I’ve ever seen. Ashley was inspired by a cruise at age 13 and one of her dream jobs is to work on a ship as liaison with international travelers. Sam is “super jealous” I get to live in Australia as he’s already been here - and is itching to get back! There’s Rachel from Chicago and Bene’ from Nashville (one of my favourite American cities). Alexei is keen to learn the cultures of Japan and India, while Shabrelle can’t decide between public relations and corporate law (is it because they’re both creative fields?).

Angela wants to know if we really say “G’Day Mate!” (We do.) Alex est Francophone parce’qu’elle adore la France (moi aussi)! Meanwhile Kristopher speaks Japanese which may not prove useful in South Bend (not South Park) but will be a bonus in Tokyo. Paula is from Tulsa and is keen to learn about Asian cultures (there’s a lot to learn). Samantha’s already done an internship and is fluent in Spanish. And Alexandra is already an officer with PRSSA - the student public relations association.

Finally I’ll see Professor Bright and his able assistant Kate Lee (who is privately cheering for her fellow Canadians in Vancouver now).

So as you all hunker in to the cold and wet and snow of Indiana, spare a moment’s thought for all of us trapped down here in Australia. (Speak to you soon!)

Yesterday Jetstar announced a partnership with AirAsia that starts with joint-procurement agreements and extends to service agreements at shared airports. The deal centres on two similarly aligned organisations looking to reduce costs.

Yet by carefully crafting messages – and relating those to the company’s core values – Jetstar placed its consumers at the centre of this ho-hum corporate deal. To showcase the power of public relations, think through these two different headlines:

JetStar Alliance To Cut Cost (hypothetical)

Jetstar Deal Means Lower Asia Fares (The Australian – front page)

In the front page article, new partner AirAsia said round trip fares between Melbourne and Kuala Lumpur should drop $200 to $600 per person. The ability to demonstrate an immediate consumer benefit means a lot. Consumers will support restructuring, even some job losses, if they perceive an immediate benefit.

Frequently companies seek public relations counsel to manage restructuring announcements. They’ll develop announcements with euphemisms for job losses. Downsizing. Restructuring. Business Process Reengineering. And my favourite, “Rightsizing”.

Author Don Watson developed a handy reference tool for those seeking to understand dense corporate-speak. “Weasel Words” is a collection of “contemporary clichés, cant & management jargon.” There Watson offers this definition to “rightsizing” – Job Eliminations.

When developing messages to support a restructure, think to the end consumer. What’s the benefit? Quicker call times? Lower costs? Better products? If you place the consumer at the heart of your messages you’re transactions are going to be better received.

Australian employers are coming back from holidays to find the return of high employment. In December job advertisements spiked – in a trend unseen before. Traditionally job ads over Christmas are dominated by casual and seasonal roles (gift wrapping at the mall, anyone?). Yet this past December recruitment advertisements increased 2.5% with an 18.5% increase in advertising and media. (See The Sydney Morning Herald.)

Dial back three years and you’ll recall the pre-crisis period. At that stage I was in a similar role at another firm (they who shall not be mentioned). I received a CV from a recruiter who enthusiastically recommended this bright candidate. She was unique and very qualified. And with 18 months experience she wanted a base salary of $75,000.

Now recruiters are human so I called and suggested the 4 key is right below the 7 key on the numeric keypad. Wasn’t this a typo?

Turns out the young candidate wasn’t the only enthusiastic one. No, the recruiter assured me, that was the salary expectation and once I met the young woman I would understand. On principle I refused the meeting.

In public relations we walk a razor-thin line. We have an obligation to provide a fair and equitable salary to our professionals. Yet clients are demanding the best services for the most reasonable fees. And after the horror year of 2008-09, we need to re-build and re-invest in technology, training and more.

Australia is also a talent pool where Asian companies love to swim. Singapore for three years? Seoul for a posting? Hong Kong for a change? With the growth in Mandarin classes even an in-land China posting is attractive to new professionals.

2010 will be a competitive year as the economic growth of Australia is compounded by the increased demand for talented people. I plan to play and play hard – but it’s never going to be a place where I’ll over-pay for 18 months experience!