The Baker Buzz Newsletter — June 2024
Welcome to the Spring 2024 edition of The Baker Buzz!
The Baker Retailing Center’s commitment to fostering a supportive and safe atmosphere for our students remains a top priority as universities around the country, including Penn, have continued to face expressions of discontent.
Penn’s Interim President J. Larry Jameson recently shared the final reports of the Task Force on Antisemitism which offers actionable recommendations that harness the collective strengths and core mission of Penn, while also countering antisemitism. Furthermore, the Presidential Commission on Countering Hate and Building Community aims to foster a supportive Penn community that leads with care and compassion. This commission will address the interconnectedness of antisemitism, Islamophobia, and other forms of hate, discrimination, and bias on campus. It has been a challenging semester, but I am heartened by the support from so many of you and thankful that the Class of 2024 experienced the graduation ceremonies they so deeply deserved.
We began our semester by hosting a “Dialogue on Antisemitism and Hate on Penn and Other University Campuses.” It was a unique gathering of students, administrators and retail executives who spoke candidly about current issues affecting our diverse campus. Their level of respectful discussion was sincere, meaningful, and encouraging.
As with almost everyone around the world, the topic of Artificial Intelligence is of great interest to our faculty and students alike. The Center hosted a discussion in New York for C-level executives on the topic, “A Look Beyond the Hype,” that focused on generative AI and offered them invaluable and practical perspectives from notable professors and leaders in the field.
In this issue of The Baker Buzz, you will find links to the latest AI research from Wharton’s faculty, such as Kartik Hosanagar’s article “Who Profits the Most from Generative AI,” and Ethan Mollick’s TIME article on the potential for AI’s positive impact.
I hope that you will enjoy a safe and relaxing summer. Best wishes from all of us at The Baker Retailing Center.
Thomas S. Robertson
Academic Director
Jay H. Baker Retailing Center
Joshua J. Harris Professor, Professor of Marketing
AI SALON
Our first salon event, titled "genAI: A Look Beyond the Hype," held at The Modern in NYC and sponsored by Lily AI, was the launch of the Baker Retailing Center's salon series.
An intimate group of twenty five C-suite executives delved into the transformative potential of generative AI technologies. Esteemed panelists included Wharton Professor Stefano Puntoni, and Emory Professor David Schweidel, along with Ahmed Naiem from Lily AI and Jarvis Bowers from Revere.
Panelists explored AI's ethical implications, its impact on consumer behavior, and the challenges of organizational adoption. They highlighted that while genAI can significantly cut costs and boost efficiency, human oversight and ethical guidelines are essential for responsible deployment. Retailers who leverage genAI wisely will gain a competitive edge, as it promises to revolutionize digital retail and brand marketing.
SPECIAL DIALOGUE
The Baker Retailing Center hosted a conversation at the Penn Club in New York City on January 23rd, bringing together students, administrators and retail executives to discuss current issues impacting campus life.
This gathering provided a platform for candid discussions on inclusivity, support, and the rise of hate speech. Participants engaged in thoughtful dialogue aimed at fostering a more inclusive and supportive environment. Following the discussion, feedback and insights shared during the meeting were taken forward to senior administrators at both Penn and Wharton. The respectful discourse demonstrated Penn's commitment to creating a safe campus community.
EXECUTIVE SPEAKER SERIES
Notable speakers who visited campus this spring included:
How Chip Bergh Made Levi’s Cool—And Profitable—Again
When former Levi’s CEO Chip Bergh was a middle-schooler, he wanted Levi’s jeans so badly he asked his mom to drive two towns over to buy him some. (“All the cool kids were wearing them to school.”) And when he took the reins of the company in 2011, in his mind it was still one of the most iconic brands in the world.
From AI to Zara: Luxury Retail’s Challenges and Opportunities
It was a star-studded evening for the Baker Retailing Center recently, as students were treated to the thought leadership of some of retail and journalism’s leading lights. Joining the Baker Executive Speaker Series panel were alice + olivia founder, CEO and Creative Director Stacey Bendet; Saks CEO Marc Metrick; and Glamour Editor-in-Chief Samantha Barry.
The conversation ranged far and wide: from AI, online personalization, and social influencers, to fast-changing trends, supply chain challenges, and the physical store experience. What emerged were unique, firsthand insights into luxury retail today.
Who Doesn't Like Stuart Weitzman?
The WALK interview by student reporter Sarahbelle Kim (C25)
Stuart Weitzman keeps it simple. He is classically charismatic, with a wry sense of humor and zany mannerisms like “Gollee!” He is fond of anecdotes because they remind him to “do things the right way” and his storytelling is slow but boisterous, with a pedagogic Dead Poets Society Keating-esque delivery. He prefaces tales with, “Well, I’ll tell you something” or “You’re gonna love this one.” Someone offers him a soda during our interview and he exclaims, “Oh boy! I love Dr. Pepper! Yippee!”
Find his interview with the DP and SiriusXM: Marketing Matters episode below.
Doug Howe, CEO, Designer Brands: "People always wonder what the new normal will be post Covid, but I don’t think there is a new normal. Things will continue to change."
Janie Yu, Partner, LFX Venture Partners: "The world is going to become an AI-driven world… but it has to work in a societal framework. You need a lot of humanities expertise to be able to use AI in a way that it can service our life rather than take over."
Sapna Parikh (W95), Chief Digital Officer, Kendo Brands: "The beauty industry is one of the most competitive out there. It is ever-changing and every year there are tons of ups and downs. The fundamental win is having the right product pipeline. It’s critical in any industry. You can launch but to get the consumer to buy again, it needs to be a really good product... and resonate with consumers."
Jason Del Ray, Tech Correspondent, Fortune : "If you’re a company like Amazon and Walmart, you can make medium sized bets and be okay but for a lot of retailers that decision [on utilizing AI in retail] is a big one and a tough one."
Alex Norton, Product Design, Google DeepMind : "Before social media, news was really centralized, but now of course it’s very fragmented... the way you experience news is dependent upon your own personal views and experiences. And it’s a question we’re working to figure out — to what degree is [algorithm] personalization useful?"
Sohiit Karol, UX Research Manager, Google : "One of the prominent methods that researchers use is surveys, and another that my team uses quite a bit is ethnographic research. We need to not only understand what they’re saying, but the context..."
Adam Ross (WG06), Co-founder, Heyday : "Consumers are demanding more so if you do one thing, you'd better do it well."
Jaclyn Lavy (C19), Specialist, Sotheby's: "Figure out what part of the [art] world you want to be in. Learning about all the different departments and areas of the art world is really interesting. Auction is a great place to start because you’re working with the gallery and helping the artist."
PARIS GLOBAL MODULAR COURSE
JANUARY 2024
In January, 35 Wharton MBA students traveled abroad to Paris, France, for the Luxury Retail Global Modular Course.
Students had the opportunity to delve into the dynamic landscape of French luxury brands, engage in dialogues with industry leaders and attend exclusive explorations of galleries, ateliers, and renowned boutiques including Dior, Hermes, Chanel, Christian Lacroix, and Le Bon Marche Rive Gauche.
All in all, the students were captivated by the essence of French luxury, created unforgettable memories and profound understandings of the value of balancing tradition and innovation, both in online and offline retail realms.
RETAIL TREK
In April, a group of Penn students enjoyed an opportunity to visit Centric Brands LLC and embark on an immersive tour with Retail Store Tours at Hudson Yards in New York City.
The visit to Centric Brands provided students with a comprehensive overview of the organization's strategic vision, including insights into their licensing model and a deep dive into their joint venture, Favorite Daughter.
During the tour of Hudson Yards, students explored stores designed to showcase the art of retail storytelling. They focused on how brands like Whole Foods Market, Tiffany & Co., Ray-Ban, Dior, and Muji craft compelling narratives, utilize technology to enhance customer engagement, and effectively communicate with their target audience.
STUDENT SPOTLIGHT
Starting a business is truly an achievement for anyone. But starting a luxury designer brand while still a student, with no formal fashion background… in the depths of a global pandemic, no less? June 2020 was when Chiso Osuji, now a first-year Wharton MBA, laid the groundwork for her luxury shoe brand Zena Ziora.
What’s more, she didn’t use any outside money.
“I bootstrapped the entire business,” says Osuji. “And this was on my first-job-out-of-college salary.”
FACULTY HIGHLIGHTS
In a recent paper published in the Academy of Management Discoveries, Global Careers and Compensation: From Initial Penalties to a “Superglobal” Premium, Utrecht University Assistant Professor Giovanna Capponi, Wharton Professor of Management Matthew Bidwell, London Business School Professor Isabel Fernandez-Mateo, and Wharton Professor of Management Martine Haas, investigate how international mobility impacts the financial compensation of knowledge workers in business careers.
John C. Hower Professor of Technology and Digital Business, Wharton Professor of Marketing Kartik Hosanagar and Carnegie Mellon University Professor Ramayya Krishnan, examines the burgeoning field of generative AI and its potential beneficiaries, including venture capital firms, corporations, and startups. Who Profits the Most From Generative AI?, outlines the elements of the generative AI stack and considers points of differentiation and value capture, such as computing infrastructure, data, foundation models, and applications.
With the buzz around AI's potential to reshape industries, Wharton Associate Professor of Management Ethan Mollick dispels fears of an impending AI apocalypse, arguing that concerns are exaggerated. In his recent Time article, We’re Focusing on the Wrong Kind of AI Apocalypse, he highlights AI's capacity for positive impact and suggests a balanced approach to its development, emphasizing collaboration between stakeholders.
From the Sharknado franchise to the wedding reception playlist classic, “Macarena,” Wharton Associate Professor of Marketing Patti Williams explores the appeal of “so bad it’s good” products and experiences. So Bad It’s Good: Why Consumers Love the Worst Stuff delves into the psychology behind this behavior, suggesting that people often find enjoyment or novelty in things that defy expectations or challenge traditional standards of quality.
The Jay H. Baker Retailing Center, established in 2002, is an interdisciplinary industry research center,
whose mission is to be the global leader in retail knowledge and education.
