**📅 Date:** ➤ ⌈[[2025-03-31-Mon〚Rapamycin - Dr. Pankaj Kapahi’s research ▪ Case Study - IP-Erewhon〛]]⌋ **💭 Note:** The role of IP and Marketing from yesterday's trip Conducting urgent due diligence… aka drinking a sugar bomb disguised as a wellness elixir — all in the noble name of marketing research. Someone’s gotta do the "hard work". 🧃💼 Stay curious, stay hungry… literally. #👾/Comment >[!info]Erewhon is more than a supermarket—it's a **wellness theatre**. > They’ve mastered **emotional luxury in health**, similar to what Apple did in tech ⇩ 🅻🅸🅽🅺🆂 ⇩ **🏷️ Tags**: #🌿/LG #🏙️/Case-Study **🗂 Menu**: ⌈[[₃ 🌟 ₃ Map Of Content/✢ M O C ➣ 03 ⌈M A R - 2 0 2 5⌉ ✢|2025-M A R-MOC]]⌋ ⌈[[✢ L O G ➢ 03 ⌈M A R - 2 0 2 5⌉ ✢|2025-M A R - LOG]]⌋ #👾/Private >[!Quote] #👾/My-Quotes >- Marketing is the modern philosopher’s dilemma: Can I buy into an illusion… _ironically_? >- Maybe the real product is not the smoothie, the tote bag, or the candle. It’s the _feeling_ of having your life together for 3.7 seconds >- I saw it, I knew it was marketing, and I bought it anyway. This must be what economists mean by ‘revealed preferences >- They say knowledge is power. But aesthetics… aesthetics is purchasing power. > --- ## 🚀 Erewhon Market Strategy: A Cult of Wellness Luxury ![[Pasted image 20250422010335.png]] ### 🧠 Positioning - **Ultra-premium wellness lifestyle brand**, not just a grocery store. - Targets a niche market: **health-obsessed, image-conscious, trend-driven millennials & Gen Z** in LA. - Blurs the line between grocery, café, influencer hub, and luxury retail experience. ### 🎯 Key Marketing Tactics - **Influencer Collaborations**: Smoothies co-created with celebs like Hailey Bieber or Bella Hadid become *viral wellness icons*. - **Aesthetic Branding**: Everything—from packaging to store layout—is *Insta-worthy*. - **Scarcity & Exclusivity**: Limited-time collabs, premium pricing, and selective locations (mostly LA) to maintain an "elite" vibe. - **Community Anchor**: Erewhon serves as a social hub for health-conscious creatives. ### 🧃 Product Psychology - Smoothies priced at $18+ act as *functional status symbols*. - Natural ingredients, but often **high in sugar and calories**—more indulgence than true daily nutrition. - Smart product curation around **buzzwords** like: adaptogens, nootropics, detox, raw, biodynamic, gut health, etc. --- ## 👾 My Thoughts #👾/Comment On Erewhon’s Famous Smoothies: Wellness Treat or Sugar Trap? Okay, I’ll admit it—Erewhon smoothies are tasty. But I am questioning… **how “healthy” are they really?** - ![[IMG_3433.jpeg|#left|200]] - I looked into the ingredients—things like **dates, coconut cream, nut butters, and honey**—all natural, yes, but when you combine them, some of these smoothies pack over **500+ calories and 30+ grams of sugar** in one go. That’s _more sugar than a can of Coke_. 🍯 --- ## 🇬🇧 UK High-End Supermarkets ### 🏪 Notable Examples - **Waitrose**: Traditional upper-middle-class supermarket; known for quality, service, and sourcing ethics. - **Whole Foods UK**: Similar to Erewhon but more focused on **organics + ethics** than trendiness. - **Planet Organic**: Urban-focused wellness grocer with strong values but more understated branding. ### ✨ Marketing Focus - Emphasis on **sustainability, quality sourcing, and trust**. - Less social media virality; more traditional loyalty (Nectar cards, recipes, Sunday shopping rituals). - High-end, but not **aspirational pop culture brands** in the way Erewhon is. - Serve as **"quality for families"** not "cool luxury" or "influencer hangout". --- ## 💰 Profitability & Business Models | Aspect | Erewhon | UK High-End Supermarkets | |---------------------------|--------------------------------------|--------------------------------| | **Target Customer** | Young elites, influencers, Gen Z | Affluent families, foodies | | **Margin Strategy** | Extremely high markup (esp. drinks) | Premium, but less dramatic | | **Growth Strategy** | Boutique expansion, curated hype | National scale, slow expansion | | **Brand Equity** | Lifestyle status brand | Traditional reputation | | **Perceived Value** | Cool, exclusive, wellness luxury | Trusted, ethical, quality food | | **Unit Economics** | High per-item margin, low volume | Lower margin, higher volume | 📊 **Most Profitable?** - **Erewhon** likely has higher **per square foot profitability** due to: - $20 smoothies - Direct-to-consumer merch - Less shelf volume, more curated sell-through - UK supermarkets win on **scale and loyalty**, but with **thinner margins per product**. --- ## ✍️ Learning Reflection > Erewhon is more than a supermarket—it's a **wellness theatre**. > They’ve mastered **emotional luxury in health**, similar to what Apple did in tech. ### 🧠 Insights: - **Storytelling and identity** create irrational loyalty (Erewhon is identity-driven; Waitrose is trust-driven). - Health brands can **still be indulgent** as long as they *feel* clean and elite. - In the UK, opportunity exists to merge **Erewhon-style aesthetics** with **UK nutrition science + transparency**. --- # IP & Profitability Comparison: Erewhon vs. Fortnum & Mason ### (IP) Strategy #### 🥤 Erewhon (U.S.) - **Owns & co-brands** signature smoothies (e.g., Hailey Bieber Smoothie) - **Licensing partnerships** with wellness influencers = viral IP - **Product design as IP**: exclusive packaging, in-store exclusivity - Operates like a *health-centric fashion house* → IP = identity #### 🫖 Fortnum & Mason (U.K.) - Heritage-based IP: **Royal Warrants**, brand story since 1707 - Owns **historic recipes**, signature hampers, teas, & preserves - **Trademarked packaging** (Eau de Nil blue, crest) - Cultural IP = *British luxury traditions* --- ### 💰 Profitability Models #### Erewhon - **High margins** on: - In-house branded health goods - Signature smoothies ($20–25) - Organic & wellness lifestyle products - Profits from **exclusivity, aesthetic, and social status** #### Fortnum & Mason - **Seasonal profitability peak**: - Christmas hampers & gifting goods - ![[Pasted image 20250422011425.png|#left|300]] - **Luxury food packaging** = high markup - ![[Pasted image 20250422011358.png|#left|300]] - Tourism & heritage as revenue stream - Long shelf-life premium products = low waste --- **🧭 Summary Insight:** - Erewhon monetises *influence and identity*. - Fortnum monetises *tradition and storytelling*.