Consumed Update-O-Rama: Bankruptcy, murketing, collaboration

Well it’s been a long time since I’ve done a Consumed updates roundup, but three things came across the radar that I’ll note here at all at once.

1. Re the March 11, 2007 Consumed on the Starbury, sold exclusively through Steve & Berry’s: Steve Berry’s has filed for bankruptcy!

This surprised me: Turns out the mall-based super-discount chain has been in trouble for some months now, apparently owing to a debt management strategy that didn’t hold up in the current credit-challenged environment.

I’d been under the impression that shrewd real estate deals were a big part of the chain’s success. And on my couple of visits to a nearby Steve & Berry’s (admittedly, it’s been a while) consumer traffic was brisk. I guess I would have assumed that its reverse-sticker shock cheapness would have benefited the place in the current slow economy.

I guess not! Debt management is another one of those subjects that gets little coverage because it’s not particularly sexy (and because companies tend not to be forthcoming about it) — yet it can mean a lot more to the success or failure of a business than any amount of press coverage or any number of celebrity alignments.

I’m not sure if this turn of events makes me look bad … but it might. If it does, well, I have no excuses. Mea culpa.

2. Re the February 27, 2005 Consumed on the Victoria’s Secret Pink brand: Ad Age has a piece that says the “thriving” sub-brand is approaching $1 billion revenues. The piece also notes the newest Pink push will be “supported and promoted by a campus tour program and paid collegiate brand ambassadors.”

Pink is, for the first time, hiring two to three brand ambassadors at each of 15 campuses. Hundreds of résumés have been received, and the selected students will go through a training program in August to prepare them for the yearlong assignment.

In doing radio interviews for Buying In, every time the subject of word-of-mouth marketing comes up, either the host or a caller invariably says something like, “Oh, come on, how much of this is really happening?” A lot, okay? It’s routine. Especially (though not exclusively) for brands targeting youth. The “college rep” strategy that was maybe used by record labels a decade or two ago is now used by a wide range of consumer-products and apparel companies, basically signing up students to “get the word out” to their pals about brands. It’s an established tactic. It’s real. And it’ s just one facet of something that, I promise, I’m not making up.

3. Re the January 14, 2007 Consumed on Timbuk2, and the July 8, 2007 Consumed on Threadless: Timbuk2 has a line of bags with Threadless graphics on them. Via Josh Spear.