From armchairs to iPhones, India's millennials rent it all

MUMBAI -- At 29, Spandan Sharma doesn't own a flat, a car, or even a chair -- one of a growing number of Indian millennials bucking traditional norms and instead opting to rent everything from furniture to iPhones.

"Millennials in my age bracket want freedom and earlier what was seen as stability is now seen as a sign of being tied down," Sharma told AFP.

"My parents don't understand the concept of renting furniture at all. They have never been completely on-board with the idea," he said.

"They said it would be much better to buy rather than rent furniture in the long term."

For 4,247 rupees ($60) a month, the Mumbai-based executive furnished his entire home, sourcing furniture for his bedroom, living room and dining area as well as a refrigerator and microwave.

Sharma isn't alone. Tens of thousands of young Indians are switching from buying to renting so they can live life with few strings attached.

Even businesses are renting their office furnishings, said budding entrepreneur Vandita Morarka.

When Morarka set up her feminist non-profit One Future Collective in 2017, she rented nearly everything she needed and funneled the savings from not having a one-off outlay into paying salaries to her staff of 25.

"From study tables and chairs to even a laptop, I have rented them all as the prices are reasonable," the 25-year-old told AFP.

"This system allows me to take more risks... And in case things go south, we can wrap up without losing a large tranche of investments and begin elsewhere." 

'INVESTING IN EXPERIENCES'

From ride-hailing apps to communal office spaces, the sharing economy is a global phenomenon that is expected to generate annual revenues of $335 billion by 2025, according to PricewaterhouseCoopers. 

In the US, websites such as Rent the Runway and Nuuly offer fashion-conscious customers the option to try rather than buy clothing, while in China, consumers can rent BMWs via a tap on their smartphone.

In India, the boom has fueled the rise of new furniture and appliance-renting businesses such as Furlenco, RentoMojo and GrabOnRent -- and even jewellery rental apps -- in recent years.

The sector is a bright spot amid a severe slowdown as weakening consumer demand has led to tumbling sales including in the bellwether auto sector.

The country's furniture rental market alone is expected to be worth $1.89 billion by 2025, according to consulting firm Research Nester.

"We expect to grow by a million orders in under 30 months," RentoMojo founder Geetansh Bamania told AFP.

The Bangalore-based firm rents out furniture as well as appliances, gym equipment, iPhones and smart home devices such as Google Home and Amazon Echo.

"Renting smartphones works out well for the youngsters as they can keep upgrading to the latest launch at a cheaper price without burning through their finances," Bamania added.

Launched in 2012 by former investment banker Ajith Karimpana, Furlenco has catered to more than 100,000 customers and expects revenues to cross $300 million by 2023.

"Overall consumer behavior is shifting from owning to renting among millennials due to the flexibility and non-commitment it offers," Karimpana told AFP. 

In an indication of the trend's staying power, Swedish furniture giant Ikea has said it plans to test a subscription-based model in 30 markets in 2020.

For many millennials, choosing the rental option is as much about taking a road less traveled as it is about saving money.

When Sharma's father was 29, he was married, working in a public sector bank and setting aside funds to purchase a flat and buy a car.

Sharma envisions a different life for himself, one focused on "investing in experiences".

"Living in 5 different cities in 2 countries over a span of 7 years would be unthinkable for my father... but it is my reality," Sharma said, adding that some furniture rental apps offered free relocation services.

"It is a badge of pride for millennials that we can pack up and move within weeks."

source: news.abs-cbn.com

Trying to trademark a meme? OK Boomer

First came the “OK Boomer” memes on social media. Then came the T-shirts, phone cases and other merchandise emblazoned with the viral retort. Now, get ready for an all-out war at the US Patent and Trademark Office and a possible television series using the phrase.

On Nov. 11, Fox Media filed a trademark application for a TV show called “OK Boomer,” one among a handful of applicants hoping to secure rights to the phrase hurled by Generation Z and millennials to older people who don’t understand their positions on various issues and anyone issuing condescending remarks. (This month, Chloe Swarbrick, a 25-year-old New Zealand lawmaker, even used it in Parliament to respond to a heckler during a debate on a zero carbon bill.)

At least 5 current trademark applications are pending for the phrase, according to the federal office’s online database. Fox Media said in its application that it wanted to use it for an “ongoing television series featuring reality competition, comedy, and game shows.” A spokeswoman for Fox Media, Alex Gillespie, said Tuesday that the company had no comment about the filing. A spokeswoman for the federal patent office, Julianne Metzger, said Tuesday that the office “does not comment on trademark applications.”

Separate applications filed Oct. 31 (by a man named Kevin Yen) and Nov. 14 (by jewelry company Rust Belt Creations Co.) want to use the phrase on clothing items. Another application, filed Nov. 12 (also by Rust Belt Creations) plans to sell decals and stickers. And an application filed Wednesday (by William Grundfest, a television show producer known for “Mad About You”) plans to use “OK Boomer” for live stage performances and lectures.

The other applicants did not immediately respond to requests for comment Tuesday.

In light of the phrase’s popularity, it’s not likely that any of the applications will be approved, said Josh Gerben, a trademark lawyer and founder of Gerben Law Firm, who noticed the filing by Fox Media on Monday.

“I think they are all very likely to meet the same fate, which is the USPTO will issue what is called a widely used message refusal,” Gerben said in an interview Tuesday, adding that the definition of a trademark “has to identify a single company or individual as a source of a product or service.”

Once something like a meme goes viral and is widely used by people, it cannot legally function as a trademark, he said.

It will typically take the office around four months to deliver a decision on the applications, Gerben said, but a pending application should not stop a company from beginning work.

“There is no requirement under US law to own a trademark registration to make a product under a name,” he said.

It’s unlikely that merchandise sellers will have any issues selling “OK Boomer” gear, he said, but none of them will be able to stop the sale of competing products.

Attempts to trademark popular cultural phrases are not new.

Earlier this year, Cardi B filed an application to trademark the catchphrase “Okurrr” to use on clothing and paper goods. It was denied over the summer, according to CNN.

LeBron James met the same fate when he tried to trademark “Taco Tuesday.” In its rejection in September, the office said the phrase was “a commonplace term, message or expression” that is widely used.

While Gerben said he expected to see other applications to trademark “OK Boomer,” he noted that viral memes are short-lived.

People filing trademarks are typically hoping to hit a gold mine, he said.

“People are only going to want their ‘OK Boomer’ shirts in likelihood for a little while,” he said.


2019 The New York Times Company

source: news.abs-cbn.com

Harley struggles to fire up new generation of riders with electric bike debut

CHICAGO - Harley-Davidson Inc is betting on electric motorcycles to attract the next generation of younger and more environmentally conscious riders to reverse declining US sales.

But as Harley ships its first "LiveWire" bikes - priced at $29,799 - to dealers, there is little evidence the 116-year-old brand is catching on with new young customers.

The problem lies mostly with this "super-premium" product's price. The bike costs nearly as much as a Tesla Model 3, and aims for a market that does not really exist: young, "green" and affluent first-time motorcyclists.

The sleek sportbike has been available for preorder in the United States since January. However, the bulk of the orders are coming in from existing and old riders, according to interviews with 40 of the 150 dealerships nationwide that are carrying the bike this year.

The dealers Reuters spoke with account for little over a quarter of LiveWire dealerships and are spread across Wisconsin, Illinois, Indiana, Ohio, Michigan, California, Nevada, New Jersey and New York.

Harley has for years failed to increase sales in the United States, its top market accounting for more than half of its motorcycles sold. As its tattooed, baby-boomer base ages, the Milwaukee-based company is finding it challenging to woo new customers.

In 2018, Harley posted the steepest sales decline in four years in the United States. US sales are tipped to fall again this year.

The heavyweight motorcycle maker's stock price has declined by 42 percent in the past five years. By comparison, the S&P 500 Index has gained 47 percent.

PRICE BARRIER

When Chief Executive Officer Matt Levatich announced LiveWire's launch last year, his hope was the ease of riding motorcycles with no gears or clutch would help attract young and environmentally conscious urban riders.

In an interview with Reuters in February 2018, Levatich said the bike would help address Harley's demographic problem.

"It is more about the next century than the last century," he said at the time.

The preorders, thus far, have belied those hopes, according to the dealers.

"It is appealing to a demographic that is already riding," said Gennaro Sepe, a sales manager at a Harley dealership in Chicago. His store has received four preorders for the bike. All of them are from existing riders.

Harley declined to comment on LiveWire preorders.

The motorcycle maker is not the only company investing in battery-powered transportation.

Tougher emissions rules in Europe, China and the United States are forcing auto companies to switch to electrified models. A survey of US millennial motorcyclists, published in February by the Motorcycle Industry Council, found 69 percent of the riders interested in electric motorcycles.

Harley's dealers said they are getting inquiries from young customers, but are struggling to translate them into sales. A key reason: LiveWire's retail price.

"Interest is very high," said a sales manager at a New Jersey-based dealership, who declined to be named because he was not authorized to speak to media. "But once you get to pricing, interest is thrown out of the window."

Over half of young college graduates in America, whom Harley is courting with battery-powered bikes, are saddled with student loans that entail average repayment of $200 to $300 per month.

Harley is not offering any discount or incentives to push the sales, either, the dealers said.

In an interview with CNBC television in May, Levatich called LiveWire "one of the best engineered products on the market" and said it was worth its price.

Gary Jon Prough, general sales manager at a dealership in Countryside, Illinois, said the vast majority of millennials cannot afford the bike as LiveWire is targeted at young and affluent customers with incomes above $100,000 a year.

TESLA'S WAY

To drive up sales, Prough and other dealers expect Harley to go Tesla Inc's way: launch more affordable battery-powered vehicles after creating a buzz with the premium model.

Tesla's first electric car cost over $100,000, but prices came down with subsequent models. Its Model 3 now comes with a base price of $35,000 and was instrumental in lifting its vehicle deliveries to a record level in the latest quarter.

Traditional Harley Davidson entry-level bikes cost about $6,900.

The motorcycle maker has plans to bring out four more electrified models in the mid-power, low-power, e-bicycles and kids' two-wheeler segments by 2022.

But unlike Tesla, Harley does not enjoy the true first mover's advantage.

California-based Zero Motorcycles is already selling electric bikes in the United States with retail prices ranging from $8,500 to $21,000. Its top-end bike - SR/F - is similar to LiveWire, but costs nearly $9,000 less.

Still, Bob Clark, a dealer for Zero's bikes in Chicago, says he has not yet sold one SR/F to riders under the age of 35. All three electric bikes he sold to young riders this year were in the $10,000 price range.

"Young riders are environmentally conscious, but are also very price-sensitive," Clark said.

It is not just pricing. LiveWire's limited range is also hampering its sales.

The bike can travel 146 miles (235 km) in the city or 95 miles in combined city and highway riding per charge. An ordinary household outlet can provide an overnight charge, while Level 3 direct current fast chargers stationed at Harley dealers will fully charge the bike in 60 minutes.

This renders LiveWire less effective for longer-distance rides, limiting its appeal among rural riders who prefer touring bikes.

Seven Harley dealerships told Reuters they have not even bothered ordering the bike, which would require investing in a Level 3 charging station and training staff.

An Ohio-based dealer, who had initially signed up for LiveWire, said he pulled out at the last minute as he was not sure of the bike's demand in his area.

DELAYED ARRIVAL

A delay in LiveWire's arrival in stores has left the dealers in the Midwest and the East Coast with hardly a month to aggressively push the bike before the snow season sets in. Winter generally means a lull for motorcycle sales.

When dealers began taking preorders, the delivery was expected in August, but was later shifted to September. On Sept. 30, the dealers Reuters spoke with were still waiting for the first bike.

In a Twitter post on Oct. 2, Harley said the bikes are starting to arrive at authorized dealers. The tweet also carried a picture of the first LiveWire that was "rolled off the line" at its York, Pennsylvania, facility in late September.

With the demand rather limited, the dealers said, Harley has decided to keep the supplies tight in order to protect the bike's brand value and prevent any price-discounting pressure. The dealers said they are all expecting to receive less than 10 LiveWires this year.

James Hardiman, an analyst at Wedbush Securities, reckons Harley would sell between 400 and 1,600 LiveWires in the first year. That is not even 1 percent of the 228,051 bikes it sold worldwide last year.

"This is going to be largely a rounding error certainly this year and even next," Hardiman said.

(Reporting by Rajesh Kumar Singh in Chicago Editing by Caroline Stauffer and Matthew Lewis)

source: news.abs-cbn.com

US millennials a popular but elusive target for brands

NEW YORK - American millennials -- the generation of people aged 17-35 -- are a popular target for advertisers and brands, but companies risk missing out by approaching them as one homogenous population.

From Gillette razors to McDonald's and American Express, every major American company is touting its efforts to attract these young people, considered the workforce of tomorrow and the new generation of consumers.

ExxonMobil and Chevron no longer hesitate to highlight their late and forced conversion to the fight against climate change, a subject important to millennials, who will suffer its most serious consequences.

"I think it's a good idea to focus on millennials in the sense that it's a huge market," said Ajay Kohli, a professor at Georgia Tech University.

"But I don't think it makes sense to play millennials as a homogenous group of people who want the same products or same services, or believe in the same values, or are equally price sensitive or equally responsive to give a message," Kohli said.

RISK OF STEREOTYPES

It is an opinion shared by Kelly O'Keefe, a marketing professor at the University of Virginia, who notes that there is significant diversity in the 75 million millennials who reside in the United States.

"Some voted for Trump. Some for Clinton. Some drink craft beer. Some Pabst. Some only buy organic foods, but Millennials are also among the largest consumers of processed foods," O'Keefe said.

"Many companies make the mistake of treating Millennials like they share a single personality and a common set of values. They don't!"

Faced with public mistrust of banks after the financial crisis, Capital One is seeking to become the bank of choice for millennials by transforming branches into cafes where you can have a cappuccino while negotiating a loan.

"People who actually go to bank branches, we call them 'wanters' and 'needers.' You found millennials among 'wanters' and you also found millennials among 'needers,'" said David Allison, an expert in consumer habits whose firm has conducted thousands of surveys to form a database in the United States, Canada and China.

"'Wanters' are looking for a personal relationship with the banks; 'needers' are looking for a social status, for them a bank is a serious place, they will be looking after my money and that's going to make me feel like I'm a serious person who has money," Allison said, adding that what matters is what services to offer the two categories.

He urges companies to eliminate demography in their marketing approach because it often leads to stereotypes.

DIVERSE MILLENIAL POPULATION

His surveys show that millennials only agree on 15 percent of subjects, which is why, he believes, that a message would be more effective if it focused on what is important for the consumer -- what they think and want.

Last year, Nike used Colin Kaepernick, a controversial American football player known for kneeling during the national anthem to protest racial injustice, in an ad campaign.

As a result, the company has seen an increase in traffic to its website, especially from young and non-white consumers.

"We know it's resonated actually quite strongly with consumers, obviously here in North America but also around the world," said Mark Parker, Nike's CEO.

University of Maryland professor Hank Boyd, however, believes that the demographic approach remains effective.

If "I know your hometown, I know your gender, I know what socioeconomic class you grew up" in, that gives "me a clearer picture of who you are and how I might want to craft a message," Boyd said.

"It's having a hundred data points on customers that really allows you to say, I have the sense that we're forming an amazing relationship with our customers," he said.

source: news.abs-cbn.com

LinkedIn wants to help millennials deal with 'quarter life crisis'

MANILA - Professional network platform LinkedIn on Monday launched its new "Career Advice" feature in the Philippines, hoping to enable young professionals to connect with others for advice and deal with job-related "quarter life crisis." 

LinkedIn said that based on a study it commissioned, more than 60 percent of Filipino professionals aged 25 to 33 are worried that they are not earning enough, 54 percent feel unsure about what to do next in their lives or careers, and 53 percent are frustrated with their career options.

It added that 49 percent report feeling stuck in their current roles with no transferrable skills, 46 percent feel that their current workplaces don’t offer enough support to help them progress. 

LinkedIn also said 87 percent of young Filipino professionals deal with doubt and insecurity which can lead to anxiety or depression. 

Seventy-one percent want advice to help them figure out what to do next but don’t know where to go for answers, according to the LinkedIn study. 

"While there isn’t one simple solution to get over a quarter-life crisis, getting advice from people that have had similar experiences can help navigate these career crossroads,” Linda Lee, LinkedIn’s Head of Communications for Southeast Asia and North Asia, said. 

The professional network said that with "Career Advice" those interested in looking for job negotiation tips, switching careers, or pursuing one’s passions, among others, can find professionals who can help based on the type of advice needed or mutual interests.

"With the LinkedIn Career Advice feature, you will be able to connect easily with a range of mentors," LinkedIn said.

source: news.abs-cbn.com

13 years after quitting, Zuckerberg gets (honorary) Harvard degree

Thirteen years after dropping out of Harvard University to work on Facebook, Mark Zuckerberg on Thursday finally got his degree -- well, sort of.

Zuckerberg returned to the university where he launched what would become the world's biggest social network, and basked in the spotlight by receiving an honorary doctor of laws degree and addressing the 2017 commencement.

His speech capped a nostalgic visit for the 33-year-old billionaire, which included a visit to his old dorm room.

"Mom, I always told you I'd come back and get my degree," read the caption of a picture he posted of him posing with his honorary diploma and his parents.

Facebook -- now one of the biggest tech firms, with nearly two billion members worldwide -- grew out of a website he created on campus.

He left Harvard in May 2004, according to his Facebook profile.

In his address, which he said he'd been working on "for a long time," Zuckerberg urged graduates of his alma mater to "build great things."

He highlighted themes of equality, inclusiveness and opportunity, while urging students to be unafraid to take chances.

"I'm here to tell you that finding your purpose isn't enough," he told the rain-soaked crowd in Cambridge, Massachusetts.

"Our challenge is to create a world where everyone has a sense of purpose."
Zuckerberg said he is from the same generation as the new graduates, and that the so-called Millennials will be facing a challenge of inequality, disillusionment and a loss of jobs to automation.

"It's our generation's turn to build great things," he said.

"Let's do big things .. not just to create progress but to create purpose."

- 'New social contract' -

Zuckerberg said opportunity is hindered by "a level of wealth inequality that hurts everyone" and that this is one of the social problems that need to be addressed.

"Right now our society is way overindexed on rewarding people who are successful," he said.

"There is something wrong with our system when I can leave here and make billions of dollars in 10 years while millions of students can't even afford to pay off their loans, let alone start a business."

Zuckerberg said this generation needs to find creative solutions to social problems.

"We should explore ideas like universal basic income to make sure everyone has a cushion to try new ideas," he said.

"Now it's time for our generation to define a new social contract. We should have a society that measures progress not just by economic metrics like GDP but by how many of us have a role we find meaningful."

source: news.abs-cbn.com

414,000 Home Sales Won’t Happen This Year Thanks to Student Loan Debt

There’s been a lot of recent buzz about teens and Millennials being extremely bullish on homeownership. And with that comes hope of a stronger housing recovery and even higher home prices in the future.

But it’s one thing to say you’re going to buy a home (or want to buy a home), and another thing to actually do it.

While ambition doesn’t seem to be lacking, the question remains whether many of these young prospective home buyers will actually qualify for mortgages.

A recent report from John Burns Real Estate Consulting noted that 414,000 home purchases would not occur this year thanks to pesky student loan debt.



Using a typical purchase price of $200,000, that equates to nearly $83 billion in lost volume for the real estate industry.

And with 5.26 million new and existing home sales expected this year, that represents about an eight percent loss in transactions thanks to costly student loans.

 Nearly Six Million Pay More Than $250 a Month on Student Loans

There are a reported 5.9 million households under the age of 40 paying over $250 per month on student loans.

That represents 35% of such households and is up from 22% back in 2005. For these households, qualifying for a mortgage gets a lot more difficult thanks to restrictive debt-to-income limits.

It’s compounded by the new Qualified Mortgage rules that limit DTIs to 43%, coupled with the fact that home prices have risen dramatically. The only thing offsetting this is the fact that mortgage rates remain historically low.

For those who can still purchase a home, it reduces their purchasing power by $44,000. So you basically need to look at a smaller home, or a home in a less desirable area.

This can get pretty tricky if the recent grad has accepted a job in a certain locale and doesn’t want to spend half their day commuting.

The prevalence of households with student loan debt also mean it’s more difficult to save for a down payment. And with the FHA becoming a lot less viable for many prospective buyers, more money is needed to get the job done.


Record Number of First-Timers Are Using Gifts to Buy Homes


Perhaps this is why 27% of first-time home buyers received a gift from relatives or a friend last year, per the National Association of Realtors.

That’s up from 24% in 2012 and matches the highest level since NAR beginning tracking in 2009. It’s apparently even higher this year.

The Realtor group also revealed that 54% of first-time home purchases were delayed in 2013 because student loan debt hurt their ability to save for a down payment.

Simply put, college students are spending a lot more money on tuition but salaries don’t seem to be rising.

In fact, incomes appear to be dropping, with college graduates aged 18 to 34 years old working full time experiencing a $3,300 drop in average annual earnings from 2007 to 2012 (adjusted for inflation), per Census Bureau data.

Factor in all the competition in the housing market that demands either a larger down payment or a higher bid and you’ve got a recipe for renting.

Perhaps the home builders will take note of this trend and start constructing more affordable housing.

Tip: There’s nothing wrong with accepting a gift from a parent or relative because a low down payment can raise your mortgage payment three different ways, which could cost you a lot more long-term.

source: thetruthaboutmortgage.com