Shinola is catering to consumers who have become increasingly interested in American-made products with a story behind

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Shinola is catering to consumers who have become increasingly interested in American-made products with a story behind them. The Detroit-based company not only manufactures luxury watches, bicycles, and leather goods but also has revitalized Detroit, a city once an integral part of America's automobile industry.

Headquartered in a building that was home to General Motors' design facility, the company has put Detroit residents back to work after a recession caused the decline of U.S. manufacturing. The Shinola website states: “of all the things we make, American jobs might just be the thing we're most proud of.”

Shinola was founded by Dallas–based entrepreneur Tom Kartsotis, also a co-founder of the Fossil watch and accessories brand. Kartsotis secured the rights to Shinola, an old shoe polish name. The company began as a watch factory in Detroit and hired nearly all of its employees from the Detroit area, half from the automobile industry.

Employees had an overlap of skills, sewing leather headrests, managing quality assurance, and managing workflow engineering.

In a few short years, Shinola has established itself as a high-end maker of consumer goods across a range of product categories including dog accessories, handbags, and even a soda brand. To date, there are over 500 employees, with close to 400 in Detroit. With more than 30 retail stores, Shinola's revenues recently topped $100 million—and if watches weren't enough, upcoming plans call for a 130-room boutique hotel in downtown Detroit.

While some might perceive Shinola as a sustainable luxury brand (its watches sell for up to $1,125 and its bicycles are priced up to $2,950), it may be attributed to the company's powerful narrative, which includes the renaissance of U.S. manufacturing in the Motor City of Detroit, Michigan.

Questions for Critical Thinking

1. Shinola has built credibility and market share by focusing on craftsmanship and creating social change. Do you agree that people want real, authentic luxury brands that tell a story? Why or why not?

2. Shinola employees joke that someday the company will even make a toaster. What are additional product categories that might make sense for Shinola?

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Related Book For  book-img-for-question

Contemporary Business

ISBN: 9781119498414

18th Edition

Authors: Louis E. Boone, David L. Kurtz, Susan Berston

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