Alain Guillot

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https://www.alainguillot.com/the-decline-of-iconic-brands/ Big, iconic brands that once seemed untouchable are falling out of favor. These companies prided themselves on having a moat—a barrier that keeps competitors at bay. For example, Coca-Cola is such a powerful brand that any potential competitor must invest millions of dollars in marketing just to capture a small share of the soft drink market. However, things are changing rapidly; these moats are becoming less effective. Traditional marketing methods are evolving, and newcomer brands are eroding the power of established ones. So why are some brands losing their shine? Failure to Adapt to New Marketing Channels: The era of glossy magazines and TV advertising is over. The new generation consumes media on platforms like TikTok, Instagram Reels, and YouTube Shorts. Young influencers can emerge seemingly out of nowhere, building a following of millions and launching their own brands, challenging well-established brands in both reach and cost. For example: Rihanna, with over 300 million followers, owns the brand Fenty Beauty. Kylie Jenner, who has over 500 million followers, owns Kylie Cosmetics. Kim Kardashian, with over 400 million followers, owns the brand Skims. These influencers have gradually taken market share from established cosmetic brands such as Estée Lauder, Revlon, and L’Oréal. However, event the well stablished influencers are facing competition themselves from a new wave of younger influencers. 2. Intensified competition. Well established brands such as Macy’s and Gap are losing the battle to e-commerce giants like Amazon. New Balance and Hoka are taking a bigger and bigger piece of the pie of the sneaker’s market from Nike. Netflix has obliterated all traditional cable TV and other streaming services. 3. Brand stagnation: The attitude of many brands is as follows: “If it isn’t broken why fix it?” But the world keeps on changing and if you don’t change with the world, you are left behind. Several companies, much like Kodak, have experienced significant brand stagnation, often due to technological disruption, resistance to innovation, or a slow response to changing market trends. Other examples are: Blackberry, displaced by Apple Blockbuster, destroyed by Netflix Sears, displaced by Walmart and Amazon. 4. A backlash against WOKE culture. In an attempt to virtual signal, many brands, such as Bud Light, Ben & Jerry’s, Target, and Disney, have embraced “woke” culture and Diversity, Equity, and Inclusion (DEI) initiatives, prompting a backlash from consumers. Many people are frustrated with the ongoing discussions around gender issues and prefer to adhere to traditional definitions of gender, believing that a man is a man and a woman is a woman. This sentiment extends to a reluctance to use non-binary pronouns. Just because the person in from of them has mental health problems, doesn’t mean that they have to play along in their imaginary world. Additionally, there is considerable opposition to biological men participating in women’s sports and using girls’ bathrooms. Many consumers also express discomfort with the representation of fat people or transgender models in Victoria’s Secret lingerie advertisements, feeling that these changes do not align with their preferences. Furthermore, many advocate for meritocracy in hiring practices, asserting that qualifications should take precedence over considerations of gender, race, or sexual orientation. Just today Boing announced that they’re scrapping their global diversity, equity, and inclusion (DEI) department as part of an overhaul of operations, in order to compete, not on virtual signaling but on the quality of their products. Conclusion To survive, brans have to continuously reinvent themselves. A good example is Microsoft under the leadership of Satya Nadella. Under the leadership of Steve Ballmer Microsoft was stagnant, becoming irrelevant but then when Satya Nadella came into the leadership, Microsoft was revitalized and it’s now one if the most innovative and valuable companies in the world. Perhaps one of the secret to brand adaptability in the new market place, is to continuously look for CEOs who are more attune with the times. The bottom line is that the market is constantly evolving, and the companies that survive are those that embrace change.
The Decline of Iconic Brands in a Shifting Market
Abrar Alvalla is the co-owner of the Restaurant La Popessa, in Montreal. Abrar always wanted to provide healthy food to the general public at affordable price. Three years ago, he weighted about 285 lbs. He started by making pasta from scratch. We do entrepreneur's meetings once a month. Contact me if you have a story to share.
Entrepreneurship story, Abrar Alvalla, co-owner of Restaurant La Popessa
https://www.alainguillot.com/hopeless-about-money/ I have a few young friends and family members, and I often try to spark their interest in the stock market, investing, or starting new ventures. Sometimes, I get a few nods and smiles; other times I get an eye roll, but most of the time I get ignored or dismissed. When I came to Canada, I had one main goal in life: to learn about investments and become a millionaire. Although I’m not a millionaire yet, I’ve learned quite a bit about investing. I am so surprised that my younger friends don’t share the same interest in building wealth. I think young people are disillusioned with traditional financial goals, especially regarding retirement or buying a house. This attitude is shaped by several factors: housing is expensive, education is expensive and oftentimes it doesn’t get you a good job, and healthcare is difficult to get; wages are not enough to cover the cost of living; and there is a perceived lack of stability in the economy and job market. Additionally, young people are constantly bombarded with advertisements for products and lifestyles that they cannot afford, often leaving them financially hopeless. For all these reasons, the classic vision of “work hard, save, and retire” feels out of reach—and even irrelevant. While the stock market has become more accessible than ever through apps like Public and Robinhood, these platforms have also created unrealistic expectations. If you aren’t making 100% per year by buying the latest meme stock, or crypto currency, they wonder “why bother?” The typical investment in the stock market that produces a healthy 8% seems to be so inadequate for someone who is struggling to pay this month’s rent. For young people who are curious about investments, navigating the stock market is often challenging due to an avalanche of information, financial jargon, and unscrupulous advisors who want to sell them financial products with high management fees. There’s also a persistent myth that real estate is the best way to build wealth. However, with today’s high property prices, maintenance demands, and often modest returns after factoring in all costs, real estate isn’t the wealth-building path it once was. Yet, the myth endures due to cultural conditioning and stories of past successes. This trend means that while the bottom 50% of earners tend to have most of their wealth tied up in real estate, the top 10% are more likely to have their wealth in the stock market or private businesses. I believe we need to do better in educating our youth on how to become savvy investors, rather than relying on financial advisors or managers who prey on clients’ lack of knowledge. Young people need to understand how the stock market works—and that they can participate in it, even with small amounts of money. I think financial literacy should be taught in high schools, after all not everyone will need to know calculus, physics, or gender studies, but everyone will need to, at one moment or another, invest the money they earn from their labor. How would you inspire curiosity in young people about the stock market and investing? What strategies or approaches would you use to make these topics feel exciting and relevant?”
Why Young People Feel Hopeless About Money
https://www.alainguillot.com/why-elon-musk-turned-to-the-right/ Elon Musk is one of the business leaders I admire most. With the U.S. elections approaching and Elon Musk putting his support behind Donald Trump, I wanted to understand why, especially since he was once more aligned with the Democratic Party. His shift in political alliances is particularly interesting given that only a few years ago, his main concern was to alleviate climate change and that’s one of the reasons why he put most of his energy in creating Tesla. For those who may not know, Elon Musk is the head of Tesla, SpaceX, Starlink, and several other innovative companies. He is also the richest person in the world. There are multiple factors that contributed to this shift to the right, so let’s unpack some of them. It all started during the early days of COVID-19, when Musk became the world’s wealthiest person. Around that time, Senator Elizabeth Warren began attacking him for being a billionaire, labeling him the face of corporate greed. She blamed him for income inequality and accused him of not paying his fair share of taxes. Here is a clip of her criticizing Elon Musk when he bought Twitter. Personally, I believe that if someone contributes enough value to the marketplace to become a billionaire, they should be celebrated. After all, in the process of amassing wealth, they’ve created products and services that people want to buy, they have also created millions of job, and billionaires have made American an economic, global powerhouse. Instead of condemning billionaires, Warren and other politicians should be celebrating the fact that the U.S. allows creative, innovative, and risk-taking individuals to build wealth not only for themselves but for the broader economy. Things escalated further during the Biden administration. Biden, who prides himself on being the “most pro-union president in history,” clashed with Elon Musk over his opposition to unions in Tesla factories. There was a notable incident in Detroit when Biden praised the CEO of General Motors, Mary Barra, for their work on electric vehicles, completely ignoring Tesla—even though Tesla commands 80% of the U.S. EV market. Biden consistently praised GM’s CEO, Mary Barra, as the leader of the EV revolution, despite Tesla’s clear dominance in the sector. Here is a clip of Biden praising Mary Barra. I don’t believe in unions, I believe that unions are harmful for the economy and I think that politicians should not pressure employers to accept unions in their shops. If employees are unhappy with their jobs or think they deserve better, they should seek other opportunities somewhere else or, better yet they should start their own businesses. Another point of contention is the Democratic party’s support for DEI (Diversity, Equity, and Inclusion) initiatives such as affirmative action. The Democratic party believes that blacks and other minorities should get some kind of preferential treatment for the sake of having a more diverse workplace. Elon Musk on the other hand prefers a meritocratic system and insist on doing his hiring based on merit, not on the color, race, or sexual orientation of a person. I also believe it’s problematic to hire people based on their belonging to an underrepresented minority rather than on their merit. The final issue that turned Elon Musk to the right was more personal, Elon Musk has a transgender daughter, a man who dresses as a woman. He claims that California’s liberal policies makes it too easy for a teenager change sex, and interestingly enough transgender people feel more aligned with the Democratic party. This issue turned Elon Musk more to the right. Here is a clip of Elon Musk talking about losing his son to what he calls the “Woke Mind Virus.” Similarly, I tend to believe that a man is a man, a woman is a woman, and that transgender people are people who have mental health problems. In conclusion, while I’m not a huge fan of Donald Trump, I understand why Elon Musk felt compelled to align with him. In many ways, the Democratic Party pushed him to the right. He had no choice but to support Donald Trump.
Why Elon Musk turned to the Political Right
https://www.alainguillot.com/exploring-portugal-traveling-to-recharge-your-energy/ I think that taking vacations is essential to keep your energy going and to reset your ideas and reduce stress in your life. In addition it broadens your vision and knowledge of the world. One of the things I promised myself was that when I retire, I would travel more. Well, I am not retiring yet. In fact, I hope never to retire, but I decided not to prioritize making money anymore. Instead, I am prioritizing quality of life, and traveling is a big part of having a great quality of life. I started the trip by going to Lisbon. Lisbon is one of the oldest cities in the world, and it shows. In the oldest part of the city, the houses and buildings are placed without any sort of organized pattern. The other two peculiar things about the city are that many of the streets were built before automobiles were invented. A few of the streets were as wide as my arms stretched to the sides, and many didn’t have sidewalks or had sidewalks so narrow they were only wide enough for one person. Another peculiar thing is that most of the old streets were paved with small hand-cut tiles, which is beautiful to see but uncomfortable to walk on and extremely expensive and inefficient to maintain. In Lisbon, I fell in love with Rua Augusta, which is one of the most amazing avenues I have ever seen. It’s full of restaurants and charming little shops all around. The street leads to a huge arch called Arco da Rua Augusta, and on the other side of the arch is the sea. The other interesting landmark is the São Jorge Castle (Castelo de São Jorge), which has been standing since the Iron Age and has been occupied by the Romans, the Moors, and the Christians. One interesting thing about the castle is that the garden is full of peacocks that walk around, interacting with humans. The next landmark was the Belém Tower, which is just a gorgeous piece of architecture. It was built in the 1500s, during the time when the Portuguese were colonizing the Americas, Africa, and Asia. Another stop we made was to the Pena Palace (Palácio da Pena), located on a hilltop in the Sintra Mountains, near Lisbon. In addition to the beauty of the palace, the location is stunning. We had to rent a 4X4 vehicle to reach the top. I can only imagine the difficulty the builders must have faced to get up there. Despite the revenue it generates as a tourist attraction, I noticed that the palace seemed a bit neglected. On postcards, the palace looks bright and colorful, but in real life, it seems like it hasn’t been painted in many decades. Our next stop was the town of Cascais, a beautiful small town about half an hour from Lisbon. It has everything: beaches, old castles, and modern homes. I highly recommend going there and simply walking around. One thing that impressed me was the public transportation. The trains and buses were clean, organized, and efficient. Another interesting fact was that there weren’t that many people asking for money on the streets, unlike in Montreal, where in busy areas, there’s always someone asking for money. The final stop was the city of Porto, the second-largest city in Portugal. By the time we arrived in Porto, I had blisters on my feet from all the walking, and to be honest, we were a bit tired. We decided to hop on several tourist buses to get driven around the city. Porto is a mix of old and new. As someone who speaks three languages—Spanish, English, and French—I had no trouble communicating with the locals. Most of them are bilingual. Additionally, Portuguese is a very easy language to learn. Finally, I learned that Cascais is the most expensive city, Porto is the least expensive, and Lisbon is the city of choice for expats. Portugal is one of best choices for digital workers and remote workers because of: Affordable Cost of Living Mild Climate Exciting Culture and Lifestyle Reliable Internet Favorable visa Policies Expat-Friendly Communities Gateway to the Rest of Europe
Spending One Week in Portugal
https://www.alainguillot.com/the-solution-to-the-housing-problem-build-more-housing/ There is a huge hosing crisis in North America, and my life is being affected by it. I am being evicted from the place I have rented for about 13 years. The building was sold, and the new owner decided to increase profits by evicting me, renovating the property, and renting it out at a higher price. I am struggling to find rental units at the same price I was paying before. Rental prices have increased by about 18% in Montreal over the past 12 months. In the rest of Canada, rents have risen by around 9%, and in the U.S., the increase is about 8%. The primary reason for these rent hikes is not inflation—it’s largely due to a housing shortage. Understanding Economics: Scarcity Drives Prices Up If there’s one thing to understand about economics, it’s that whenever there is a scarcity of a desired product, prices go up. In our case, there is a shortage of housing, so speculators are trying to profit from any available units they can find. Governments are attempting to address the housing crisis, but many of their solutions are inadequate. Ineffective Solutions: What’s Not Working Rent Controls: When the government imposes rent controls, developers and entrepreneurs are discouraged from building housing at lower profit margins. As a result, they either stop building or refrain from investing in more housing. Housing Vouchers and Assistance: While government help, like housing vouchers, aims to support those in need, it doesn’t tackle the root issue: the lack of housing. Those who don’t qualify for assistance are left behind, and vouchers end up raising rents for everyone else. Vouchers increase the money available for housing but not the actual supply of housing. The Real Issue: Lack of Housing Where People Want to Live The problem isn’t that there isn’t enough housing overall, but rather that there isn’t enough housing in the places where people want to live. People want to live in cities like Montreal, Toronto, Vancouver, New York, and San Francisco. If someone wanted to live in Northern Quebec, for example, they would likely have no trouble finding an affordable place. The Real Solution: Change Zoning Laws Many cities, particularly in Canada and the U.S., have restrictive zoning laws that limit the construction of high-density housing like apartment complexes, especially in urban areas. These restrictions have led to fewer housing units being built where they are most needed. We need to start by legalizing the construction of more housing. People should be able to convert single-family homes into duplexes or triplexes. We should also allow for taller buildings to be constructed. A Call to Action: Protesting for Effective Change I see people protesting in the streets to protect the environment, even though China and other developing countries are the biggest polluters. I see people protesting to stop the war in Palestine. While these protests are important, they often don’t lead to immediate change. However, if people took to the streets to protest against restrictive zoning laws, we could have a direct impact on the local economy. If thousands of people demanded that local governments change zoning laws, it would make a tangible difference. In Summary: Build More Housing In conclusion, there is a clear solution to the housing crisis: build more housing. We need to let our local governments know that we demand a solution. If they fail to act, we should vote them out of office and elect leade
The Solution to the Housing Problem: Build More Housing
https://www.alainguillot.com/dating-apps/ After my divorce, I decided to give dating apps a try. I went on a few dates and, although I met some wonderful women, I found the whole process exhausting and extremely inefficient. For me, the juice wasn’t worth the squeeze. I spent hours scrolling, sending hundreds of messages, dealing with ghosting, waiting hours or even days for responses, and finally, when I met a woman in person, I often realized we weren’t a good match. Success Stories Amid the Struggles However, as a dance teacher, I’ve met many couples who met through dating apps. Good for them—many seem happy, and some even got married. But I believe that most people feel frustrated, as I did, and they are deleting the apps from their phones and computers, or at the very least, they don’t want to pay for the service. Investors Take Note: They are not seeing the growth From an investor’s point of view, this is worrisome. Revenues are not growing any more, if people don’t want to pay, then what’s the point of owning the stock. And this lack of paying members growth is being reflected in the stock prices. As we can see, while the S&P 500 has risen by 33% over the past 12 months, dating stocks are lagging behind. Match Group, which is the largest and most established player, has a portfolio of over 20 brands. Each brand is targeted towards specific types of online dating or to certain demographic groups (i.e. Tinder for short-term hook-ups, Hinge for long-term relationships, etc.) is up only 1%. Bumble, known for its female-first approach, is down 54%. Grindr, which focuses mostly on gay and bisexual men hooking up, is up 100%. So, what’s happening here? The Reality for Men on Dating Apps What I hear is that if you’re a good-looking man, you have all the options. Most women will want to date you. If you’re in the top 10% of attractive men, you could essentially have your pick. 50% of the women are liking your profile. If you’re in the top 50%, you have a decent chance of finding a partner. If you’re in the bottom 50%, you’re likely to struggle and may end up alone. Why Bumble’s Approach May Be Struggling I suspect Bumble is not succeeding because, despite the emphasis on female empowerment, many women still prefer to be approached rather than to make the first move. Historically, men have always been the ones to initiate, and they’ve learned to handle rejection. For women, this is a relatively new shift, and many are still adjusting to the idea of occasional rejection. User Fatigue and Conflicts of Interest In general, except for Grindr, people aren’t finding what they’re looking for, and many users are dissatisfied. According to various industry sources, the number of daily app users is just not growing. There’s also an inherent conflict of interest between dating apps and their users. Clients want to find love and leave the app, but the apps profit when you don’t find a match, and they keep you as a paying customer for as long as possible. Gen Z and the Future of Dating Demographic studies show that generation Z (those aged 12 to 27) is showing less interest in traditional dating compared to previous generations. They are prioritizing mental health, personal goals, and self-development. From an economic perspective, the cost of housing is also a serious issue. It’s hard to date someone when you’re living in your parents’ basement or juggling two jobs. Many young people finish their regular day job only to start driving for Uber or work another side hustle just to pay the rent. These challenges make dating less of a priority. Generation Z is supposed to represent the future of dating, but through dating apps some social norms are changing. Many young men are feeling disengaged or left out, with women under 30 often dating men over 30. Around 64% of men under 30 are single. On the other end of the spectrum, older women are also having difficulty finding partners, with 70% of women over 60 being single. Clearly, there’s a mismatch in dating demographics. So if this generation feels less enthusiastic about dating or can’t afford to pay for dating apps, the future for these apps seems bleak. Conclusion: The outlook for dating apps doesn’t seem promising, mostly because the dating market is not growing. In the stock market, if you’re not growing, there’s little incentive for investors to buy your stock. They would rather put their money in a certificate of deposit than in companies that aren’t growing. What’s your opinion on the future of dating? Would you pay for a dating app? Would you invest in a dating app?
Falling out of love with love (our relationship with dating apps)
https://www.alainguillot.com/china/ Admiring China’s Economic Growth For the past 10 years, I admired China’s rapid economic growth with great interest. I was convinced it would be a formidable challenger to the economic superiority of the U.S. However, over the past 12 months, I have changed my mind. China’s Global Advancements If you follow economic news, you might be impressed by China’s great advancements in artificial intelligence, military expansion, and global resource acquisition. China has also become a major economic partner in regions like Africa, Latin America, and Southeast Asia. China’s Growing Military Power Also China’s military, which once was seen as inferior, is now rapidly catching up with that of the U.S. From the outside, many would feel confident predicting that China will soon catch up with the U.S. economically, politically, and culturally. However, a closer look reveals significant weaknesses. The Demographic Time Bomb China is facing a major demographic crisis. The fertility rate needed to maintain a stable population is about 2.1 children per woman. China’s fertility rate is currently 1.1. The reason is simple: women no longer want to have children. There is insufficient infrastructure to support family growth, and as a result, families are simply not growing. Consequences of an Aging Population Without a younger generation to take over, the consequences are dire. An aging population is less productive, has higher healthcare costs, and they will start collecting pensions at the age of 55 for women and age 63 for men. There won’t be enough workers to fund these pensions or sustain the economy. Comparing the U.S. and China The U.S. is also experiencing a birth rate decline, with a rate of 1.7 children per woman. However, the U.S. can address this challenge because millions of people want to migrate to the U.S. The U.S. has a serious immigration influx, with people risking their lives to get there, while no one is risking their lives to migrate to China. In fact, many Chinese citizens aspire to move to the U.S. The Risks for Investors For investors, this information is crucial. You don’t want to invest your money in China without being aware of these risks. While investing in China might seem attractive in the short term, from a long-term perspective, China is far less appealing. Conclusion: The U.S. Remains the Better Bet My tip for you: keep investing in the U.S. It offers a liquid market, is full of creative people, and, for now, maintains a growing population.
Why China’s Economy Will Implode: A Look at the Hidden Risks
https://www.alainguillot.com/starlink/ This week United Airlines and Air France, announced that it will offer free Wi-Fi on every plane, joining Qatar and Hawaiian Airlines. Very soon, Wi-Fi will be a staple in every major airline in the world. This is in addition to many cruise ship companies and hundreds of private yacht and commercial boats already using the technology of Starlink. Elon Musk, through SpaceX and Starlink, is set to dominate global internet communication. When I think of Elon Musk, I picture superhero characters like Bruce Wayne (Batman) and Tony Stark (Iron Man). But even these fictional heroes pale in comparison to Elon Musk’s real-world achievements. Currently, Elon Musk is the richest and most influential man on the planet, and his wealth and influence are poised to grow even more. Elon Musk has turned science fiction into reality with groundbreaking innovations. Take Tesla, for example, which began as a prototype and has since become the most valuable automaker in the world. He changed the whole auto industry from gas engines to electric vehicles. Now, most car companies are building electric vehicles to catch up with the success of Tesla. Then he created SpaceX, which became the most advanced rocket company in the world, surpassing the technologies of NASA, the U.S., China, and Russia. He created the technology of reusable rockets, significantly reducing the cost of each rocket launch. Nowadays, SpaceX is launching a rocket every three days, or about 120 per year, as opposed to NASA which launches about 20 rockets annually. Now, Elon Musk is reshaping global communication through Starlink, providing internet service across the globe, even in the most remote locations—whether it’s the Amazon jungle, the Sahara Desert, or your cabin in the woods. Internet connectivity is crucial for the nation security of many countries, economic growth, education, knowledge sharing, and entertainment. At present, around 6,400 Starlink satellites orbit the Earth, connecting 3 million customers across 100 countries. This vast network gives Elon Musk immense power, connecting millions to the internet. Internet access has the potential to transform lives. A farmer in South Africa or India can check crop prices and determine the best time to sell, people around the world connect to Starlink even in countries where the service is banned. Many countries have banned Starlink because they fear the power of information in the hands of regular citizens, while other countries that want to leapfrog the communication of their citizens into the internet era are doing whatever they can to bring this technology to them. Starlink has the potential to impact billions of people, and yet it’s astonishing to realize that this technology is controlled by a single man in Boca Chica, Texas. There are 2.7 billion people worldwide without internet access, many of them in developing countries in Africa and Asia, but some of them in remote areas within the U.S. and Canada. Starlink has the potential to bridge this digital divide, reducing inequalities between the haves and the have-nots. Elon Musk is known for creating huge amount of value for shareholders. Since Tesla went public in June 2010, its stock has grown by an average of 44% annually. Over 14 years, Tesla’s stock has soared by an incredible 18,400%. While SpaceX and Starlink remain private companies for now, if Elon Musk decides to take them public, don’t hesitate to buy some shares. Many were skeptical when Tesla first went public, only to regret not seizing the opportunity to invest in a great company with groundbreaking products.
Starlink Dominates Space
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