Nobu. Where To Next?

Whilst I accept that the United States is not perfect, I have always been fascinated by the ideology behind 'The American Dream'. The possibility of someone rising to the top 'against all odds' and being able to achieve success, when starting from the bottom and having seemingly insurmountable obstacles, reads something from Hollywood. This does not only happen in fairytales. This happened to Nobu Matsuhisa, who literally ended up in Hollywood. Nobu Matsuhisa has created a restaurant empire. Having started out as a dishwasher in Tokyo, he now has established restaurants in the world's most glamorous cities. New York, London, Dubai, Hong Kong, Milan, Athen, Mykonos, Cape Town, just to name a few. Nobu attracted such interest with his restaurants, that after repeated attempts, Robert De Niro persuaded him to become his business partner. Nobu has become a 'fashion-symbol' and attracts clientele that range from Sports-icons to Movie-stars. Regardless of it's location, it has become the 'in' place to be in every city that boasts it's presence. I find it incredibly inspiring to read about 'rags to riches' stories. They give people from various different backgrounds and foundations, the belief that 'the sky is the limit'. I also feel that when I hear about these stories, it teaches me to be respectful of everyone I meet. Often in society, people working lower status jobs are looked down upon. There are unlikely to be many people that had faith in Nobu Matsuhisa when he was a dishcleaner in Tokyo. There are also unlikely to be many people that envisioned the future that he was destined to achieve. An entrepreneurial genius. In every sense of the word.

How Chef Nobu Built His Sushi Empire

Although I had known several aspects about Nobu's story and entrepreneurial career path, I learned various details from an article by 'CNNMoney'. The article begun with a few short paragraphs giving a brief introduction and this was followed up with an interview with Nobu Matsuhisa. There is no better way to gain an insight into someone's story, then through a printed interview. I was impressed by the questions that the author chose to ask Nobu. She started out by inquiring into his 'early days' and how he 'started out'. This gave the reader a good foundation of knowledge. The style of questions were 'thought-provoking' and gave the interviewer a chance to elaborate on his responses and provide a great amount of detail. An example of this is, 'When did you first know that you wanted to be a sushi chef?'. This differs greatly from a 'yes' or 'no' type question and due to its 'personal nature' is likely to persuade the interviewee to be thorough in his answer. I also felt it was extremely effective how the questions were revised, based on what the interviewee said. This flexible structure, provides for a much more interesting interview. After reading this interview, I must admit that I have a much higher degree of admiration for his accomplishments. I have always felt that it is never enough to simply have 'the talent' in the Business world. You need to possess an overpowering passion and tenacity to succeed.

Nobu Finds A Recipe To Keep The Hunger of Recession At Bay

Another article that I found quite interesting, was an article by 'The Telegraph'. It puts the success of the Nobu franchise into a current context, by looking at how the empire is being affected by the current economic turmoil. I enjoyed reading the article as it maintained a realistic yet optimistic tone. The author mentions how 'the company has yet to lay off any staff during the economic downturn' but maintains a sense of balance as he also confirms that 'it has not all been smooth sailing, as the company closed down in Canary Wharf.'


The article decides to approach the topic from a different angle and perspective to the previous author. In this article, it is not Nobu Matsuhisa that is interviewed, but instead one of Nobu's Managing Partners, Richard Notar. Whilst obviously not as integral as the primary owner, it was interesting to see the opinions of another important stakeholder in the company. I find that the article written by 'The Telegraph' showed more 'narrative flair'. In some ways this is difficult to compare with the article by 'CNNMoney' as that was predominantly an interview, but I was very impressed with the writting style of 'The Telegraph'. The author inter-weaves together facts as well as his own perspective. I have contemplated which of the two articles did I prefer reading. I think that they each have their attributes and it would be unfair to compare 'apples and oranges'. The 'CNNMoney' article was possibly more informative and interesting from the point-of-view that it was conducted with the 'man behind the vision'. However 'The Telegraph' article was very cleverly written and the style of writing of the author was unique and witty. In this sense, they have a 'collective synergy' and would recommend any interested readers to refer to them both.

The author reflects on how the next stage for Nobu's growth is to find prospective partners. The article refers to the final aspects of this strategy as it is reports that, 'Goldman Sachs was hired to find a buyer for 51% of the business - a deal that would have been worth £270 million'. I was shocked when I read these figures. It is absolutely remarkable how someone can go from the status of 'dishwasher in Tokyo' to 'owning a restaurant empire of nearly double £270 million'. The expose always mentions how the company has been considering on 'launching a range of hotels based on the Nobu concept of high quality individual service.' In my opinion, this move could really work. It is reported that plans to open up a hotel in Israel, were put on hold due to the economic recession, but given the right economic time-frame it could really work. Now that Nobu has established a successful brand-name and has become a 'household product' in the eyes of the celebrities, it really has 'the world at it's feet'. If this venture into the hotel industry proves successful, then there are a host of possibilities and methods of attracting this lucrative clientele base.

I chose to review these two articles for one primary reason. In my previous entries, I have tended to focus on two or more sources with very contrasting angles. This was beneficial from the point of view that the reader was able to get an holistic view on the issue and topic. However, in this instance I decided that I wanted to show how two differing articles could 'work together'. I found that it was almost as if each article was 'one half' of the puzzle and needed the other to be complete.

Websites Read:

http://money.cnn.com/2009/03/25/smallbusiness/nobu_fish_story.fsb/index.htm

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/5172886/Restaurant-chain-Nobu-finds-a-recipe-to-keep-the-hunger-of-recession-at-bay.html

You May Have Been Mocked In The Past. But Asia, Your Having The Last Laugh.

I have always found it fascinating how perspectives and ideas change over time, especially when these changes lead to role reversals. This is particularly evident with the way the world now views Asia. Before the 'opening of China' and other Asian power-houses, that saw an increasingly open trading environment with the West, there was a great divide between the 'Western mentality' and the 'Eastern mentality'. The mentalities were so contrasting that it was as if they viewed the other as 'aliens from a different planet'. However, slowly but surely, there has been a development in the relationship between these two philosophies. It seems that each side has acknowledged that there are positives to be taken from the opposing side. The 'West' has taken on several aspects such as the experimentation with various herbal health remedies that have supposedly worked better than many technologically advanced health procedures in the 'West'. It has also become 'fashionable' to eat Asian cuisine and in many of Europe's major cities these restaurants are amongst the most expensive and trendy. Yoga has become relatively main-stream and continues to grow in popularity.

There are also many predominantly 'Western' traits that are now being exposed to this up-and-coming Asian market. The 'Luxury Brands' certainly aren't complaining. Gone are the days when it was only Westerners that indulged in luxuries such as fancy sports cars, premium fashion brands and expensive liquors. It is progressively becoming just as likely to see a decadently dressed woman strolling down the streets of Beijing with a 'LV handbag' as it would be in Milan or Paris.

Designer Brands Battle For Slice of Booming Asian Market

During such economically uncertain times, it is in some ways surprising to see many 'Luxury Brands' expanding their presence in new regions. However, it does seem 'just as good a time as any' to take advantage of this lucrative opportunity. An article by 'SouthAsianPost' highlights the importance of this new market to these fashionable heavy-weights. It reveals that, "Major designer brands, including Christian Dior and Gucci, spent more than 60 million dollars on advertising in Hong Kong last year, 23% more than 2006." That is a tremendous increase that is made all the more significant considering that most companies are scaling back on divisions such as advertising. It seems that these companies have 'both eyes' on the region. The article boldly states, "With Asia being the world's biggest market for Western luxury goods, international brands are shifting their focus from Paris, New York and London to the fast-growing emerging markets in the region." This seems a far cry from the days where Westerners would make fun of 'those Asians with the gowns and silk cloths, and the Asians would mock 'those Western big-noses with the silly hats'. Whilst I think overall globalisation is a good thing and there is nothing wrong with cultures merging and taking the benefits from each, it is also important to maintain a sense of identity and tradition and not let these fade away into distant memories. This seems to be a distinct possibility, "The reason why Asians buy so many luxury brands is that in Asia, you are, what you wear. A luxury brand is a symbol that defines who you are and your social status. People judge each other by what brand of handbag they are carrying." It appears that there is now less emphasis on familial values and more on the notoriously superficial ideals of the West.

Whilst I am not surprised that these Asian economies are lucrative new target-markets for these companies, I was slightly taken-aback about how readily it appears that they are willing to neglect their European markets for the Asia. This is was embodied as Vincent Shaw, Chanel's president for Asia Pacific, claimed, "Hong Kong was carefully chosen as the best place to launch the exhibition before it tours other fashion capitals around the world, including London and New York." He continues by explaining the reasons behind this decision, "Asia has a huge population and an incredible liquidity. We believe that there's a huge opportunity and that Asia will be extremely successful." This view is given some credibility by Radha Chadha, author of the 'The Cult of the Luxury Brand', who adds in, "Asian consumers account for more than 50% of the annual 80 billion dollar sector, more than the U.S. and Europe combined." This willingness to try cash in on this market even during unstable times seems to remain true across the board. Louis Vuitton has seen similar opportunities in Asia as it steps up its battle for a bigger slice of the market with the re-opening of its massive store after a year of renovation. The new store is double the size of the previous one and is the company's second largest after its flagship building on the Champs Elysees in Paris.

China seems to be starting to take a leadership role in this rapidly growing movement. It is estimated that the country will overtake Japan as Asia's biggest luxury market within the next 7 years. Louis Vuitton already has 18 stores in the country, with 6 more expected to open this year. Jean-Baptiste Debains, Louis Vuitton's president for Asia Pacific, underlined the company's ambitious plans, "There are a lot of cities in China where we can have stores, maybe not today, but in three years." Such growth potential is not limited to China. The company also plans on opening stores this year in Indonesia, South Korea and Taiwan. Whilst Radha Chadha maintained a sense of caution that due to the economic slowdown in the United States, this was likely to hit the luxury goods consumption, Louis Vuitton's Debains seemed adamant that growth in Asia "was unstoppable". From current reflections, it seems that fortunately for Louis Vuitton and the other premium brands, he seems to be proven right.

Battered Luxury Brands Eye Chinese Market For Growth

An expose by 'ChinaDaily', starts off with the use of a little 'tongue-in cheek', "while people in the developed world tighten their belts and focus on daily necessities, the big luxury companies are looking to China's new rich to buy their jewellery, clothes and bags." This is a slightly exaggerated remark with the use of 'focus on daily necessities'. It makes out as if the whole of the "developed world" is on the bread-line. I think that this illustrates some remnants from the past cultural clashes and the author is taking her opportunity in offering a 'slight dig' at the former adversaries. Being a local journalist, for a Chinese paper, this bias is rather expected. It seems that the sources used were carefully planned out and each quotation appears to have atleast a little hint of nationalistic pride. This can be seen with comments made from Guo Zuli, director of the World Luxury Research Center, whom emphasizes, "The Chinese market shows remarkable resilience in the financial crisis because it has an increasing number of people able and willing to buy luxury goods. Unlike the mature traditional markets, demand in China is far from saturated either materially or psychologically."

The depressing reality of how the economic downturn has affected 'Luxury Brands' is reflected with the use of statistical figures. A study by the consultants at 'Bain and Company' illustrates the severity of the situation, "sales growth in the luxury goods sales were estimated to have slowed significantly to 3% during 2008. The slower growth rate stood in sharp contrast with 6.5% in 2007 and 9% growth in 2006." There appears to be further setbacks this year with Deutsche Bank indicating the market will contract between 5 to 10% in 2009. Similarly to the first article, there seems to be joint argreement that China can provide its 'saving grace'. Experts agree that the Chinese luxury goods market remains "resilient", due to the country's stable economic growth and rising number of rich with a steadily increasing purchasing power. It is estimated that during 2007, 415,000 Chinese had more than $1 million in disposable assets, more than any other country in the world.

The information provided in the first article is verified as 'ChinaDaily' similarly mentions the same luxury brands that are excited by the growth opportunities in China. Gucci is reported to have opened their flagship store in Shanghai during May of this year. Louis Vuitton is also mentioned, with profits estimated to have experienced a growth of 2.1% from 2008's figures. This is in stark contrast from its performance in other markets, "sales in the United States fell 4.03% and in Japan 5.16% last year." These poor financial results were mentioned in jest, as the company chose to focus on its successes in China which reflected, "strong and solid" growth.

The article uses Bain & Company repeatedly to reflect market predictions and reflections. Their consultants estimate that, "the Chinese luxury market would see a growth of 20 to 25% in the next 5 years." The Chinese Ministry of Commerce chimes in proudly, "China will become the world's largest luxury market by 2014, accounting for 23% of global business." I am sincerely shocked at the rapid speed in which the Chinese market has taken to these traditionally Western 'luxury brands'. Whilst I was never in doubt that it was only a matter of time before these luxuries were adopted by the East, I would be very surprised if anyone could have anticipated the tremendous growing demand during such an uncertain economic period.

Whilst I'm sure that the mentioned 'luxury brands' wouldn't agree with me, I feel as though this sudden and drastic 'adoption' of the Western lifestyle is a little unfortunate. The reason I am against this transition, is that it has come at the cost of local customs and traditions. In a growing population where nearly 13% of the people can now afford to buy luxury brands, there is going to be those who consequently suffer. This growth will come at the expense of the local fashion designers and even 'the man on the street selling hand-made bags' whose lively-hood now remains in the balance. After all, as Asia embraces such a superficial mentality, who is going to turn down the latest designer LV bag to help out the local street vendor by buying his?

Websites Read:

http://www.southasianpost.com/portal2/c1ee8c4418e1e94f011905dc070602db_Designer_brands_battle_for_slice_of_booming_Asia_market.do.

http://www.chinadaily.com.cn/bizchina/2009-04/11/content_7669126.htm

Football Is Not Just A Sport. It's A Life-Saver.

Football, or 'Soccer', as the Americans like to refer to it, has had a large impact on my life. There are times when it seems that my calendar revolves around the next set of matches and everything takes second priority. The amount of exhilarating football on offer these days is limitless, from the English Premier League, Italian Serie A or the Spanish Primera Liga to name a few. However there is no bigger stage then the World Cup. It is almost as if the world comes to a halt during this month-long tournament once every 4 years. It was estimated that around 715 million people tuned-in to watch the last World Cup Final between Italy and France. This is more than any other sports event, even more than any Olympics event in history. The tournament is turned into a colorful spectacle as people from all over the world go to support their team dressed in every color of the rainbow. Next year, the privilege of hosting the event is bestowed upon South Africa. Whilst the sporting benefits that comes along with hosting such an event is obvious, the economic and social positives that are presented cannot be understated.

World Cup 2010 Immune To Global Crisis

In an expose by 'Africagoodnews', the great importance and responsibility of hosting such a large event was highlighted from the opening line, "Africa waited decades to host its first soccer World Cup and when it comes, it's during an unprecedented global economic crisis." From first glance, this statement could take on two meanings. It could be beneficial that the tournament comes at a testing time as this would obviously bring investment and revenue into the country. However the situation could also be taken from the view-point that it is detrimental to host the competition during a period when people are less inclined to travel and spend as much during these uncertain times. The author appears to have taken the positive side of things, as he remarks, "not even the worst crisis since the Great Depression seems likely to deter millions of fanatical football fans or big commercial sponsors." This sense of optimism is given some credibility with the inclusion of quotes from the Marketing Manager of FIFA, "We are quite lucky that the recession has not touched FIFA, and in that regard the World Cup. Our sponsors are strong partners. They have suffered under the crisis, but all are clearly behind FIFA and the World Cup". FIFA is a football governing body and handles the organisation of the World Cup, so this positive outlook must be a huge relief to South Africa.

During the article things are still put into perspective. There is no denying that the world's major economies such as the United States and those in Europe which consist of the top footballing nations, have been struggling during the recession. This has affected every sports industry which has had to "counteract dwindling incomes". Colen Garrow, an economist for financial services group Brait, issues a cautionary message whilst trying to be upbeat, "there is a risk that the success could be hindered by the lack of tourist buying power. But by then the global economy will have recovered somewhat and people may feel more confident to spend." I have to agree with this argument. South Africa is fortunate that slowly-but-surely things look like they are recovering and it appears that the worst period is over. Had the World Cup been a year or two earlier, things may have turned out rather sourly.

The USP (Unique Selling Point) that the World Cup possesses is that it is only every 4 years and whilst people may not have the same amount of disposable income as before, there is the acknowledgment that it is a one-off event. The author of the article points this out, "The World Cup may just be the tonic that helps not just South Africa but its neighbors get through the economic downturn." Rightfully so, other countries in Africa are taking full advantage of this period of increased exposure for the continent. Mozambique has encouraged its private sectors to build more tourist hotels and countries like Botswana and Zimbabwe are hoping to attract teams and fans for practice matches. In my opinion, the World Cup could turn out to be a 'life-saver' to many countries in Africa. A country like Zimbabwe which has really struggled economically in recent times with its unprecedented inflation, needs to take full advantage of any opportunities that presents itself with the World Cup. The consultancy division of Nomura International has estimated that "the World Cup will add about 0.6% to 0.7% to South Africa's economic growth in 2010. This has occurred as a result of "the country pouring billions of dollars into infrastructure spending, leaving construction as virtually the only industrial sector left standing in the recession." This illustrates the impact that the sporting tournament can have on an economy. It has the power to enhance the performance of various sectors and industries within the local economy for a tournament that lasts no longer then a month.

Hopes Are High Africa's First World Cup Will Bring Tourists And Financial Benefits

There seems to be a universal agreement about the potential benefits that the World Cup can bring to South Africa and the continent in general. In an article written by 'GlobalPost', Nicolas Brulliard reinforces the honor and prestige presented in hosting the world's largest sporting event to a country that "less than 20 years ago was excluded from most international competitions because of sanctions against the apartheid regime." The inclusion of this point truly exemplifies the progress that South Africa has achieved in a short time period after overcoming one of the most repressive social systems in history and it has certainly improved its global image.

Like the first article, there is similarly the addition of a sense of caution. It notes that "the World Cup will be an immense logistical challenge for the country, which despite having the continent's largest economy, is plagued by a chronic skills shortage, widespread poverty and one of the world's highest crime rates." This is one of the fears looming over those responsible for hosting the tournament. Having been born in South Africa and having chosen to leave due to the escalating crime, I can personally testify first-hand at the destructive nature that this enormous social problem can have. I believe that its impact during the tournament will either be black or white. Either there will be no major issues and the tourists get to enjoy the competition in a relatively care-free environment, or it will be a major issue and could potentially spoil a magnificient event.

The 'GlobalPost' similarly highlights the vast array of benefits that South Africa has encountered due to the event. It is approximated that around "400,000 jobs have already been created, which is significant in a country that has an unemployment rate of 23.5%." The impact on the tourist industry is also considerable with "local organisers expecting around 450,000 overseas visitors and an economic benefit that could reach $7 billion." The article is concluded with a message that I thought was succinct but sweet in nature. "The elections of 1994 really changed the way the world thought of South Africa. Effectively, 2010 has the opportunity to take it to the next level."

The World Cup has presented Africa with a great opportunity to showcase its beauty and potential in front of the eyes of the world. The importance of putting on a show in a relaxed and friendly environment and not letting the social and economic problems that grip the continent get in the way, is paramount. I personally believe South Africa has the potential to put on the best World Cup the world has ever seen by some distance. However, having the potential counts for nothing unless it is realised. Fingers crossed South Africa.



Websites Read:

http://www.africagoodnews.com/2010-fifa-world-cup/world-cup-2010-seen-immune-to-global-crisis.html

http://www.globalpost.com/dispatch/south-africa/090610/one-year-hosting-world-cup-south-africa-looks-at-soccer-tournament