Wealth in Wellbeing

p.3 6 FITNES S o r F A D ?

Th e ri se o f h ig h cost cla s s es

p .3 2 I nt e rv i e w w i t h MAT T O ’T O O L E: R e e b o k P re s i d e n t

p. 1 7 Delivering FRESH FO O D: Amazon ’ s tak e ove r

p. 4 6 Interview with DE VIN WENIG: CE O of e Bay

Published by students for students.

Wealth in Wellbeing

WORDS FROM THE

EDITOR n May, Australian real estate mogul Tim Gurner made headlines by telling millennials to stop buying avocado toast if they want to save up and buy a house. This advice seems groundless and almost comical at first - a piece of bread with smeared fruit is surely not such an extravagant purchase. However, Gurner raises an interesting and valid point: the wellness trends that we try to incorporate into our lives come at a very high price. Our growing concern for health has changed our spending habits, blurring the line between necessity and luxury.

From boutique gyms offering $34 dollar classes to spin frantically for an hour while an instructor bellows motivational mantras, to startups creating 3D-printed customized multivitamins, there is a lot to be said about the business surrounding health. Successful businesses are not only selling a product, they are selling an image of balance, calm and happiness. They are promises at a more fulfilling life, and a healthier you.

This issue of Business Today Magazine explores the wealth in wellness, looking at both the booming market for health, and it’s more worrisome consequences. Millennials do not want to occupy standard office jobs and do not want to work in the same place for more than a couple of years. Social media projects unattainable ideals of health, with countless accounts of yogis/nutritionists/naturopaths, many of whom are unqualified but have huge audiences.

And although we might be becoming more aware of the benefits of chia seeds or cycling, we are still glued to our smartphones hours throughout the day and live lives riddled with stress.

Yet, as you will see in our interviews with business leaders from Devin Wenig (CEO of eBay) to Rich Pierson (CEO of Headspace), we are in a time of immense richness of ideas, innovation, and consumer experience. Customers want to connect with the brands they buy, the sites they use, the clothes they wear or the food they eat. They want their purchases to have purpose, and the businesses that provide this will ultimately be the most successful. The demands for things like non-GMO ingredients or ethically-sourced cotton is making companies more thoughtful and responsible. It is also pushing them to advertise in a more genuine way, and become more client-focused. These are all fascinating implications of the rise of wellness, and our interviewees all agreed that such trends are here to stay.

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VICTOIRE HAYEK EDITOR-IN-CHIEF

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CONTRIBUTORS Business Today is America’s largest student-run publication. Published at Princeton University, the magazine is the most widely distributed student publication in North America and has extensive online readership at our website, www.businesstoday.org.

Business Today is dedicated to presenting the opinions of students and business leaders. By examining controversial issues facing our world and exploring life after college, we hope to help readers prepare for their futures. The magazine has been published by Princeton University undergraduates since 1968.

COLLEEN KANG President JAMIE DOWNEY director of strategy VICTOIRE HAYEK editor-in-chief of Magazine SOPHIE HELMERS editor-in-chief of online Journal NICOLE ZIVKOVIC director of International conference CAROLINE MARSHALL director of WoMen in Business conference HANSEUL NAM director of designation SWANEE GOLDEN director of seMinar series ARIA WONG director of design THEOdORE MARCU director of Web,tech & analytics WAQARUL ISLAM director of investMents PETER HOLT director of oPerations JARRED FELIX director of MeMbershiP & outreach PAUL KIgAWA director of finance & corPorate contacts YIjIA LIAng director of executive relations

Business Today Princeton University 48 University Place Princeton, NJ 08540 609.258.1111 magazine@businesstoday.org Business Today is a publication of the Foundation for Student Communication, Inc.. FSC, a 501(c) (3) non-profit foundation, is run entirely by students for students at Princeton University. In addition to the magazine, FSC sponsors International and Regional Conferences held across the country that bring together students and executives to discuss the future of business. For more information, visit our website, www.journal.businesstoday.org.

Photo by Lyra Katzman

VICTOIRE HAYEK EdITOR-In-CHIEf Of MAgAzInE WILLIAM LIU ExECUTIVE EdITOR Of MAgAzInE SOPHIE HELMERS EdITOR-In-CHIEf Of OnLInE JOURnAL COnOR fITzPATRICK ExECUTIVE EdITOR Of OnLInE JOURnAL ARIA WOng DIRECTOR Of DESIgn ASHLYn CHIn ExECUTIVE EdITOR Of DESIgn gLAdYS TEng MAgAzInE BUSInESS MAnAgER EdITORIAL BOARd CATHERINE BENEDICT JACK BURDICK MAYA EASHWARAN OLIVIA LESUEUR

WRITERS

DESIGNERS

SHAzIA’AYn BABUL BHAAMATI BORKHETARIA ELIzABETH dIgEnnARO MAHA AL fAHIM BETTY LIU AnAnYA MALHOTRA dEASEE PHILLIPS RASHA SULEIMAn EMILIE SzEMRAj gLAdYS TEng AngELA WAng

CHARLOTTE AdAMO ASHLYn CHIn HYUnnEW CHOI ILEnE E CLAIRE fELTEn LYRA KATzMAn CASEY KEMPER LIndA LUO SOnIA MURTHY SHAROn zHAng

Cover design by Aria Wong & Lyra Katzman

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TABLE

OF CONTENTS

BT BITS: Evolution of Wellness pg.6

An Interview with

An Interview with AGATHE ASSOULINE- LICHTEN Founder & CEO of Red Velvet NYC pg.8

President of Reebok pg.32

MATTHEW O’TOOLE

VIRAL FOOD How tech controls our cravings pg.10 An Interview with KIMBERLY SNYDER Celebrity nutritionist pg.14 DELIVERING FRESH FOOD Amazon’s Whole Foods takeover pg.17

DEAR: FEMALE ATHLETES FROM: THE BALLET WORLD Lessons on body image from the ballet world pg.26

GOODBYE DIAMOND RINGS, HELLO AVOCADO TOAST Changing millennial trends shape the economy pg.43

An Interview with RICH PIERSON Co-Founder & CEO of Headspace pg.21

CRUNCH THE NUMBERS Big data in the digital health tech industry pg.30

An Interview with DEVIN WENIG CEO of eBay pg.46

PACKAGING HEALTH How ‘healthy’ labels affect us pg.24

FITNESS OR FAD? The reality of high-end fitness classes pg.36

STAY WEALTHY & HEALTHY The hidden cost of staying healthy pg.53

An Interview with GREG CAPELLLI CEO of Apollo Education Grp. pg. 40

BE YOUR BEST SELF (Additional fees may apply) pg.56

An Interview with

CHRISTENE BARBERICH Editor-in-Chief of Refinery29 pg.50

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An Interview with MIKE McMULLEN CEO of Agilent Technologies pg.60 SALADS IN CHENGDU Millennial health habits spread to China pg.63

Empower every person and every organization on the planet to achieve more.

Microsoft is proud to sponsor the Business Today Conference in redefining innovation and leading the 21st Century Revolution.

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BT BITS:

EVOLUTION O

By Maha al Fahim

1869

Lululemon founded

First Health Food Store Founded in Oil City, PA in 1869, the Martindale’s is the oldest health food store in the US. The store manufactured its own coffee substitute made from dried figs, named “Figco.” It claims to sell “organic, local, fair trade and ethically processed natural foods and products.” The founder’s son, Thomas C. Martindale was passionate about nutrition and a pioneer in advocating ‘food consciousness.’ He spoke about the importance of healthy eating through weekly radio broadcasts, in-store lectures, and conversations with his customers. To him, healthy eating meant saying ‘yes’ to whole grains and fiber foods, and ‘no’ sugar and junk food.

1965

The company also hosts free yoga classes and fun fitness events every week.

One of the first gyms to franchise

One of the first franchise gyms in the US, Gold’s Gym was founded by bodybuilder and US Marine Joe Gold, in Venice California in 1965. Its first customers were bodybuilders from Muscle Beach, attracted to the gym’s no-frills environment. Unlike other gyms with comfortable changing rooms, juice bars and other pleasantries, Gold’s Gym was plain and gritty, as small as a regular store and with equipment Gold designed and built himself. The gym was propelled into the spotlight with the release of the 1975 movie “Pumping Iron,” featuring bodybuilder and later movie actor and California governor Arnold Schwarznegger, who often trained at Gold’s Gym. In 1980, the first franchise was opened it San Francisco.

While the gym maintains ties to the bodybuilding sport, it has modified its image to appeal to a wider clientele; it offers classes like Zumba, yoga, Pilates, and mixed martial arts in addition to personal training and pure weightlifting. Today, it is one of the largest gym chains in the world, with over 2.5 million customers worldwide and around 600 gyms in 27 countries.

1964 Nike founded This multinational corporation first began when a track and field coach, Bill Bowerman, grew dissatisfied with the running shoes in the market, many of which were made from heavy metal and leather.

As a coach, he knew the importance of lightweight shoes for speed. So he tinkered with dozens of textiles, from kangaroo leather, velvet and deer hide to snake and fish skins, attempting to find a flexible lightweight model. While his prototypes grew more refined with time, he had yet to find a footwear company to manufacture his models and materialize his dreams. In 1964, his student and Nike co-founder, Phil Knight, struck a deal with Onitsuka, a shoe company based in Japan. The following spring, Bowerman produced the Tiger shoes and later, the Cortez. However, Bowerman’s most famous innovation is the Waffle sole. The inspiration emerged on the breakfast table in 1970, when Bowerman was staring at his waffle – it’s crevices holding syrup. In it he saw the potential for excellent traction soles. He poured melted urethane into the family waffle iron.

The grid-like rubber soles we find on our shoes today was born.

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1998

1991 Equinox founded The company operates several fitness brands including Soul Cycle, PURE Yoga and Blink Fitness

F WELLNESS 2003 First Sleep Pod In 2003, after meeting many workers who were exhausted but too afraid to be caught ‘sleeping on the job’, MetroNap created the EnergyPod, which it dubs “The world’s first chair designed for napping in the work place.” The sleep pod is a sleek chair with a dome hood, and a “privacy visor” to block out external sights and sounds. The pod also has sleep music and programmed lights and vibrations to gently awake the napper. Seeing the link between sleep and higher employee productivity, health and satisfaction, many companies have bought the $13,000 sleep pod. Among MetroNap’s claimed clients are Google, NASA, Cisco, Huffington Post, Proctor & Gamble, and the Arizona Diamondbacks.

2007 Fitbit founded Fitbit was founded in 2007 when James Park and Eric Friedman saw the potential for using sensors in wearable devices. In the span of a few years, their company moved from a startup to a tech behemoth, averaging $754.4 million in total revenue in 2014 alone. As the company moves further into the frontier, it faces new obstacles, including complaints about skin irritation and privacy concerns regarding data. The “next big leap,” Park said to TIME, was to enter the medical industry and make “lightweight” medical diagnosis. Fitbit will have to withstand FDA regulations; however, from its short history, we are confident the company will keep leaping over hurdles as it pushes to the forefront of technology and consumer health.

2010 Cryotherapy in the US We are all used to the idea of icing our injuries, but whole-body cryotherapy was first developed in Japan in 1978 for patients suffering from arthritis. Users are exposed for two to three minutes to liquid nitrogen, chilling their skin to just above freezing temperature. This drop in temperature is claimed to reduce inflammation and pain and release a rush of endorphins. Cryotherapy companies like Cryo Wave , CryoHealth Care , and U.S. Cryotherapy are popping up around the US.

2012 REBBL founded REBBL’s name stands for Roots, Extracts, Berries, Bark and Leaves - the various plant parts it uses as ingredients in its super herb elixirs.

2009 First Wellness Travel Company Linden Schaffer founded Pravassa, the first wellness travel company, in 2009. She says, “Early on in my glamorous (and painfully fast-paced) fashion career, I realized the way I worked was turning me into a tightly wound little ball of stress and tension. So before every business trip I conducted hours of research planning for self-care in my few precious hours of downtime. It changed my life.” Now she helps others restore their energy and productivity through wellness tours. Leading wellness experts and top fitness instructors are also leading their clients on wellness tours.

Vacations no longer mean having to compromise on your healthy lifestyle and yoga sessions no longer have to last for only 60 minutes. Wellness tours now allow people to escape to exotic places and spend a week of clean eating, natural beauty treatments, daily massages and personalized workouts. Away from families and responsibilities, people can tune in to their personal needs.

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Agathe Assouline -Lichten Co-Founder and CEO at Red Velvet NYC

“We thought, if we can make this a lot easier, more convenient, more fun, and educational, then people would want to do it. And so we set out to innovate home baking.”

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Business Today: Tell us a bit about your background and what led you to come up with the concept of Red Velvet.

Agathe Assouline-Lichten: I spent the last decade working in luxury marketing, until I co-founded Red Velvet NYC almost 2 years ago. I grew up in the gourmet food business, so I’ve always been passionate about good food, cooking, baking, and entertaining. My sister and I both love to spend time in the kitchen, and as early adopters of the meal kit craze, we loved having “dinner in a box” show up at our door. Since we both have a strong sweet tooth, we always crave dessert at the end of our meals, we thought “why can’t dessert come in a box too”? After asking our friends and family of why they didn’t bake more often, it became apparent that many thought it was intimidating. Thus, we set out to innovate home baking, making this $12B market that hadn’t been disrupted since the 50’s more convenient, fun, and educational so that more people start baking.

BT: Were there any companies offering a similar product when you first launched?

How do you continue to ensure that Red Velvet is a unique company that stands apart

from its competitors?

AAL: No, we were the first to launch a complete baking kit, and we’re still the only company that provides both the dry and perishable ingredients. We’re unique in the way that we provide a complete and rich baking experience. The only thing we can’t ship are eggs, due to state laws, but we provide you with everything you need to pull off an impressive dessert at home, no matter what your pantry looks like. We also provide helpful baking accessories like oven-safe cupcake cups that don’t require a cupcake pan, disposable piping bags so frosting looks professional, and parchment paper liners to cakes come out of pans without sticking. The experience we provide is comprehensive and seamless, from the pre-measured ingredients, to baking “hacks”, to the ability to add bakeware onto any order through our online boutique.

BT: What is your target demographic? Has that changed since you launched and were there any surprises in your user base?

AAL: Our target is primarily women 35-60 who live in and around major cities. They’re busy raising families and working, so the ability to pull off an impressive feat is enticing. It

allows them to learn new skills in the kitchen, and gain baking confidence. They appreciate cosmopolitan flavors and elegant treats.

When we initially launched, we weren’t sure who was going to appreciate our baking kits the most, but we’ve found that novice bakers love to learn with us and can feel really great about pulling off our desserts with ease.

BT: Do you think Red Velvet could have existed 10 years ago? Given the wide success of startups like BirchBox or Barkbox, why do you think people are driven towards subscription-based services today?

AAL: 10 years ago, box services didn’t exist because shipping wasn’t as prevalent as it is today. These days, customers are spoiled - they’re used to having almost everything shipped to their door, thanks to Amazon.

Subscription box services have certainly educated consumers and taught them to expect anything from food to toys to makeup show up at their home. We have both a subscription and a-la-carte model, which allows our customers to pick and choose what they want and when they want it.

BT: How do you maintain a strong retention rate and keep people coming back for more?

AAL: Providing a unique experience, com-

bined with convenience, allows for our customers to keep coming back. We also continuously launch new desserts with new flavors and ingredients. Our customers love not only the fact that a beautiful, hand-packed box shows up at their doorstop, but that they can create an impressive dessert from a box of ingredients that’s 100% homemade. The ability to say that you made something “from scratch” is empowering and our bakers feel good about the treats they share with the people they care most about. It’s important for them to have something special for whatever it is they’re celebrating.

BT: Where do you seek out inspiration? Do you stay in the loop with all of the social media hype around baked goods like the Cronut?

AAL: Living in NYC, it’s easy to be inspired by the plethora of bakeries that exist in this innovative city. We definitely follow the popular dessert crazes on social media, but we know what sells the best - it’s tried and true recipes, that might remind you of what your grandmother might have baked. We’re always looking to tweak classic recipes and add uncommon ingredients to them, so we seek out local products or hard-to-find ingre-

dients that will add a special touch.

BT: We always hear that millennials are more concerned with experiences than products, and Red Velvet certainly confirms that idea. What details have you focused on to make sure the experience is as pleasant and seamless as possible?

AAL: We care so much about creating a unique and memorable experience with our baking kits. It’s important that our customers feel empowered through an experience they can share with their friends or family.

Dessert is for celebrating, from a birthday to an everyday sweet tooth, so we know how important it is to make that occasion a success. Our service focused on helping home bakers, novice or experienced, create an impressive homemade dessert. In doing so, they get to enjoy themselves, spend quality time with others, they learn a tip or baking technique, and get 100% bragging rights.

BT: Finally, what is your favorite dessert?

AAL: It depends on the season, but I will ALWAYS order bread pudding if it’s on a menu. I happen to be very proud of the one that’s on our menu. It even has NYC’s Balthazar brioche bread in it, and it’s delicious! ■

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viral FOOD How tech controls our cravings

by Liz DeGennaro

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wenty million. That’s the number of times that an INSIDER Food video depicting Black Tap’s decadent milkshakes has been viewed on Facebook. Black Tap, a self-described “craft burgers and beer” restaurant located in New York City, is well-known across the Internet for its extravagant milkshakes: over-the-top creations covered in frosting and piled high with everything from cotton candy, to lollipops, to slices of cake. Despite the millennial craze with health and fitness, such indulgent treats have garnered millions of followers on social media, growing Black Tap from a small cult following to a New York City favorite with impassioned fans traveling across the world to indulge in their treats. This is the magic of a product gone viral.

Scroll through any millennial’s Instagram or Facebook feed, and you’re bound to see short but showy videos featuring the latest entrepreneurial crazes. In fact, a growing number of social media accounts, both professional and amateur, are dedicated to showcasing the most recent rages in up-and-coming food, travel, and other product ventures. And these pages are a hit.

INSIDER Food, a food and beverage media page, has amassed more than seven and a half million Facebook followers while Thrillist, a page dedicated to showcasing food,

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travel, and other adventure attractions, has been followed by more than four and a half million people. Even personal Instagram travel and food blogs can amass hundreds of thousands of followers.

Like a biological virus, a viral product is successful because it spreads, and viral videos are their preferred vector for infection.

On social media platforms, users can share videos with their own followers, which are in turn re-shared with their followers, snowballing across the entire web. For example, an INSIDER Food video filmed on Cookie DO, a NYC-based raw cookie dough shop, was shared over 825,000 times on Facebook, contributing to its more than 73 million Facebook views. Additionally, many social media users try to fill their own posts with interesting and aesthetically pleasing images, which often includes many of the products featured in popular Internet videos. This can cause even greater online fame, as commodities spread across screens, and hashtags and location tags inform other users where they too can purchase the depicted good or service.

For products that achieve viral status, their newfound popularity can lead to immense business success. Take Black Tap for instance, whose recent rapid growth can be widely attributed to its rise to fame on

“Like a biological virus, a viral product is successful because it spreads, and viral videos are their preferred vector for infection. ”

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In 2014, Dollar Shave Club was valued at 270 million dollars

“Though viral videos are often entertaining and beneficial to the featured companies, their contents can often be controversial. ”

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In 2015, Dollar Shave Club was valued at 615 million dollars

In 2016, Unilever purchased Dollar Shave Club for one billion dollars

the Internet. Once a fifteen-seat burger bar, Black Tap has since opened several new locations across New York City, and often serves milkshakes to hundreds of eager guests each day. Dollar Shave Club, a men’s grooming product start-up that first gained notoriety after one of its razor commercials went viral, was awarded a 615 million dollar valuation in 2015. That same video has been viewed nearly 25 million times on YouTube, and Dollar Shave Club was purchased for almost one billion dollars by Unilever in 2016.

Though viral videos are often entertaining and beneficial to the featured companies, their contents can often be controversial. Just because a product is aesthetically-pleasing or camera-ready does not necessarily mean that it is particularly delicious, efficient, or otherwise better than competitors. For example, the rainbow bagel, a brainchild of the Bagel Store in Brooklyn, New York, is a fluorescently-colored bagel stuffed with confetti cream cheese that took the Internet by storm in recent years. Despite its popularity, its palatability often leaves customers disappointed. “All in all, it’s just all right. I wish it were either a little bit sweeter or not sweet at all and just rainbow-colored. Is it a destination-worthy treat? On the merits of flavor, definitely not. As Instagram and Snapchat fodder, perhaps yes,” writes Nicole Perry, a journalist for POPSUGAR’s food section.

Yet, viral products may not only spread like a disease, but some may include them

too. Cookie DO, the aforementioned sweet shop that garnered millions of online views, has recently been sued for allegedly spreading foodborne illness, with several Yelp reviews criticizing the conditions that had led to food poisoning. Though the company still stands by the quality and safety of its products, one can only imagine the consequences if seemingly innocent products reaching viral levels before their dangers are known.

Tales like the one above make one question the criteria that millennials use to critique product quality. When did viability as an “Instagram and Snapchat fodder” become an indication of product value, even over benchmarks like “merits of flavor”? What does this say about the traits that young consumers prioritize? Perhaps many more ‘worthy’ products may never receive the recognition and success deserve, simply due to their inability to appeal to social media. In this regard, maybe bandwagoning and groupthink are more prevalent than we would like to admit.

Nevertheless, viral videos and the products they depict are fun and desirable to millions of millennials, and a highly useful publicity tool to many companies and entrepreneurs. At the end of the day, whether we like it or not, just like real-life viruses, they are likely here to stay. With hundreds of social media publicity outlets and millions of online fans eagerly awaiting, the millennial world is left to wonder: what’s next? ■

With hundreds of social media publicity outlets and millions of online fans eagerly awaiting, the millennial world is left to wonder: what’s next?

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Kimberly Snyder Celebrity Nutritionist, Entrepreneur & Health Guru 14 FALL 2017 BUSINESS TODAY

DREW BARRYMORE DR. OZ REESE WITHERSPOON DEEPAK CHOPRA FERGIE CHRIS HEMSWORTH KATE MARA JENNA DEWAN-TATUM OWEN WILSON HAYLIE DUFF KERRY WASHINGTON BEN STILLER ROONEY MARA TOM HIDDLESTON JUSTIN LONG VINCE VAUGHN CHANNING TATUM HILARY DUFF Business Today: Can you tell us a bit about your nutrition background as well as your 3-year world trip? What led you to becoming the wellbeing and nutrition expert that you are known as today?

Kimberly Snyder: It all started for me over a decade ago when I was struggling with my own extreme acne, weight gain and low energy. I tried everything- every diet and skin treatment up until that point. My first job after graduating from Georgetown was in Sydney, Australia, where I learned from a nutritionist that digestion was the biggest factor in curing my problems. This opened up my eyes to the importance of nutrition, and lit a fire within me to learn more.

What started off as a small month long trip on my way back home to the US eventually stretched out for a full three years. Yet, what truly stretched the most were my travel funds: I ended up camping across Africa and living out of a used car I bought for $4k (and sold for $2k after my trip), backpacking across 50 countries. It was during this time that I became truly aware of the world around me, studying under dozens of teachers, primarily in Asia and Africa. Outside of the Western world, I was amazed to find gorgeous, healthy people living in Zimbabwe, Laos, Mongolia, etc. who had never counted calories or carbs in their lives, yet had glowing skin, optimal body weight, and high energy. This would later form the basis of my Beauty Detox philosophy.

When I got back to the U.S, I moved to New York (broke at that point!) and spent my time teaching yoga and working at a raw food café in the East Village while I did more nutrition training. I started a free blog designed to help people struggling with diets to find a better, healthier way to approach nutrition. Over time, I began contributing to major magazines, and my second TV appearance was with Good Morning America. Before I knew it, I had become a ‘celeb-

rity nutritionist’ and began working with A-list entertainers. I’m currently working on my fifth book now, and I’m more focused on creating information, courses and products that can help the most people possible. That has always been my guiding light, and it’s been an amazing journey that has unfolded from that goal.

BT: From publishing New York Times best-selling books like The Beauty Detox Solution to creating supplements and digital courses, to guiding celebrities on their nutrition, how did you turn your passion into a viable business?

KS: When I started, I wasn’t thinking about business, I was just focused on helping people through my website (www.kimberlysnyder. net). People came into my path that helped me fusing that vision into an actual business, with email collection and developing e-commerce. I’ve learned so lot along the way, and I’ve had some amazing partners (and a few really bad ones). I personally reach my community as much as possible, from my Facebook Live cooking show to lots of speaking appearances. Authenticity and really caring can’t be faked. There is SO much we are launching in the next year, so stay tuned!

BT: You have worked with many people, including high-profile celebrities, to promote plant-based lifestyles. How do you go about redesigning a client’s diet if they were previously eating significant amounts of meat, dairy and processed foods? How do you make sure that the foods you are providing them with remain tasty and interesting?

KS: I always say, “You are not what you eat, you are what you digest.” My program focuses a lot on optimizing digestion, so we add in healthy daily staples and starting off slowly. The key to success is “progress, not perfection”, and what I constantly tell people not to think of lifestyle changes as ‘all or nothing’. As people make gradual changes, they will feel less bloating, more energy, bet-

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“There is a deep vested financial interest behind many of the food recommendations such health organizations make, and it’s vital that we are all aware of that, and decide what is best for us and our families.”

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ter skin, and so on and will naturally make the adjustments that make them feel better without the deprived feeling that dieting can cause. There are amazing alternatives for meat and dairy and you should try some of my recipes! I’ve had some of the most stubborn anti-veggie eaters out there for clients, and I’ve been able to turn them with fresh, flavorful options that include lots of herbs, spices and great food combinations.

BT:With many people becoming holistic nutritionists and gaining large social media followings, how do you continue to distinguish yourself amongst growing competition?

KS: First of all, I think it’s so great that wellness is becoming more and more popular!

Also, someone might have a big social media following, but that doesn’t necessarily translate into having a successful, viable business.

I can say for me, the rise of wellness has only elevated my business, and we’ve seen an over 100% increase in our supplement and digital product sales in the last eighteen months, which has continued to grow. I think there’s always room for new people to come in, but what’s great about my brand is that we are long established and there is a long-standing trust there as a go-to source for wellness that continues to be propelled.

BT: Many college students tend to grab a large coffee and some sort of processed sugary snack in the mornings. What are the best foods to start the day off on the right foot that don’t require a kitchen?

KS: The Glowing Green Smoothie is a great source of natural energy to start your day with lots of greens! Aside from those, keeping healthy snacks on hand is key to avoid giving into temptation when you are busy or stressed. Keeping some nuts, fruits, veggies, or gluten-free crackers can keep you away from the candy machine during a marathon study session. You can make an enormous

batch of your own trail mix with your favorite seeds and nuts, Goji berries and dark chocolate chips and munch on that as a go to for weeks.

BT: How do you balance your work and your family life, especially after the birth of your son?

KS: Time is our most precious asset. Everyone says this, yet I’ve personally seen it in the context of my own life and interacting with the community. In all my roles: mother of a beautiful baby, author, multi-business owner, speaker, nutritionist to personal clients and others — my time has never been scarcer, and I know I’m not alone. Everyone in my community has to juggle work, relationships, family and/or children, health, social lives, and more. Yet my business has grown even as I work from home and spend nearly every waking moment with my son! How? Well, I’ve gotten better at saying no to things that don’t really matter, I’ve hired more people and gotten better at delegating work. I’ve also learned some working mom hacks like taking Bubs for walks in the stroller during conference calls, and doing my deepest book writing during his naps. If you can be really disciplined around your time and priorities, you can make things work!

BT: What is your favorite part of what you do? What continues to motivate you to expand your brand and help more people?

KS: I started my career and brand with the motivation to help people lead healthier, more conscious lives, and it’s never shifted since. When I go on my speaking tours, I can see and hug thousands of my readers, many of them crying from the impact my books and lifestyle advice have had, and this never ceases to motivate me to work even harder to reach even more people. I love the connection I have with my community, and it’s important to stay connected to that, and my mission, always. ■

Delivering Fresh Food Food

Amazon’s Whole Foods Takeover

by Emilie Szemraj

by Emilie Szemraj

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or areas in the US with little fresh food available. Currently, 23.5 million Americans live in food deserts, while 2.2% of Americans live in low-income areas more than ten miles from a grocery. Under Amazon’s direction and with the construction of more distribution centers, Whole Foods may be able to provide fresh food to currently inaccessible areas. The company has already committed to this cause, as demonstrated by its establishment of several food foundations, including The Whole Planet, Whole Kids, and Whole Cities’ Foundations, which work on fresh food development projects, partnerships, and food education.

Yet, the fresh food problem is too large of an issue for a few foundations to handle alone, and corporations will have to play their part as well. As Mr. Foraker says, providing fresh food to “food deserts” also means keeping the food financially accessible. “Amazon has a long history of figuring out how to drive efficiency out of a supply chain,” John Foraker told Business Insider.

“Managing a perishable logistics network is so difficult. But if anyone in the world can figure it out, it’s probably going to be them.”

This is where Amazon’s takeover becomes particularly pertinent. Amazon, across its multitude of branches ranging from retail to media to tech products to shipping to even cloud services, has mastered the art of efficiency. Jeff Wilke, a Princeton University alumnus and an Amazon chief who helped redesign the company’s warehouse process for prime shipping, is now responsible for integrating Whole Foods into Amazon and promises to incorporate this characteristic into their operations. “We’re going to learn with them how we can efficiently— and in a high-quality way—deliver groceries to our customers,” he told the Wall Street Journal. If Amazon can continue to drive its efficiency into all its holdings, and apply it to Whole Foods in the context of Amazon Fresh deliverables, it can both alleviate the food deserts and continue to produce healthier, fresher food.

One potential solution that Amazon could potentially apply involves expanding upon the tried and true local distribution networks that currently deliver fresh food throughout the lower reaches of the supply chain. Under this system, delivery services partner with networks of businesses to fill in gaps in their supply chain and distribution

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FA ST ,F fter acquiring Whole Foods in August for $13.7 billion, Amazon immediately implemented changes to the health food giant’s market approach.

They slashed prices on over 100 products, often by more than 30%, and promised further discounts for Prime members and enhanced delivery options for its grocery delivery program, AmazonFresh. In just one month following this acquisition, Amazon sold $1.6 million of Whole Foods-branded products.

Amazon’s business tactic behind slashing prices is simple: lower prices will beckon more people to purchase Whole Foods’ groceries. Whole Foods lives up to its name by providing better sourced and thus better tasting food, but this appeal comes at a price. Whole Foods, sometimes referred to as “Whole Paycheck”, may have kept some consumers away as a result of its expensive offerings. In introducing lower prices, Amazon seeks to target a consumer base that may have formerly settled for alternatives like Trader Joe’s or Wegmans.

Amazon’s announcement of acrossthe-board price cuts immediately following its acquisition resulted in a torrent of Buzzfeed articles and Twitter memes reveling in the new lowered prices of healthy consumer staples. Other strategic moves include incorporating Whole Earth products into the Amazon marketplace as well as the addition of Whole Foods’ offerings into the AmazonFresh delivery service. By making Whole Foods’ products more accessible, both logistically and financially, Amazon ensures the continuation of a food culture that results in more organic labels with fewer artificial ingredients.

However, Amazon’s exuberant takeover has set lofty expectations for the company.

Currently, AmazonFresh delivers to select zip codes in ten states, including New York, New Jersey, and Northern California. While many shoppers in the traditional tax brackets of Whole Foods shoppers wait for this convenient feature to arrive, other consumers can be expectant for different reasons. An Amazon takeover of Whole Foods lends a new power to fresh grocery delivery that can push the frontiers of health food consumers and attitudes. A worthy consideration raised

by John Foraker, President of Annie’s Homegrown food products, is the new prospect of Whole Foods’ ability to alleviate food deserts,

“Currently, 23.5 million Americans live in food deserts, while 2.2% of Americans live in low-income areas more than ten miles from a grocery.”

$13.7 billion dollars amount Amazon paid to acquire Whole Foods

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SO WHAT’S NEW?

Whole Foods will get cheaper over time

Whole Foods stores will have Amazon lockers

S Discounts for Amazon Prime members

Whole Foods private label products will be available online

20 FALL 2017 BUSINESS TODAY

areas while minimizing the need for new stores. This sort of network is already in use across the world for smaller fresh food enterprises, such as farm to table businesses, which link great taste and fresh food together in their communities.

Here at Princeton, the restaurant Agricola has been raising the standard for fresh and delicious food with its farm to table business model, starting with its local produce partners.

According to Agricola’s owner, Jim Nawn, “local improves the taste equation,” and Agricola’s business model has been formed around this firm belief. Agricola’s main source of produce is Great Road Farm, a 112 acre certified organic farm founded by Nawn and his wife. It is one of 53 organic farms in New Jersey and produces 2% of the state’s organic vegetables. This output provides 60% of Agricola’s vegetable produce.

The rest of Agricola’s produce is acquired from other farms via Zone 7, a distributor of New Jersey farms’ fresh produce. Other food items, such as protein sources, are obtained outside of New Jersey. “Beef raised in New Jersey is pretty tough [to find],” Nawn commented. “So we look for growers that share the same values as we do. Organic if it’s possible, natural, and humane, and no antibiotics, you just go down the list of all those things that you try to avoid.”

As is typical of small scale enterprises, a farm to table model comes with unique challenges. “Nobody’s getting rich off farming,” said Nawn. “It’s hard work to do it here in the northeast in a high coast area in New Jersey.”

Connecting the farmer to the chef can also be a challenge, because, as Nawn notes, “ a chef and a farmer on not typically wired the same way. . . it’s very intense in a restaurant when you’re in service industry but a farmer has a pace that’s based on nature’s clock.”

Yet, it is ultimately the end goal brings these disparate individuals together. Nawn notes of those involved in the process: “There’s a certain exhilaration of realizing that we’re in fact doing things the way they were kind of meant to be, that were moved away from, and are now being appreciated.”

The high costs of New Jersey also affect menu prices. Agricola has to factor in not only the work of the farmers to grow organic produce and the expertise of the cooks, but the high costs associated with living in New Jersey, specifically the rent and utilities of

downtown Princeton. Despite these factors, farm to table enterprises like Agricola have a stable future ahead. Nawn agrees that “the segment of the population that have been interested in eating the way we are talking about has grown.” Health food has, similarly to the ath-leisure trend in fashion, quickly become branded as hip and cool. Farm to table has been and will continue to be more than a trend, as the taste of the food is its own security. “It ultimately comes down to the visual taste and the taste on the tongue and that, to me, makes people come back,” said Nawn. “The superficial appearance of how we treated the ceiling or the walls or stuff like that—those add to it, but the taste of the food is really the most important thing.”

Likewise, it is the taste of the food that makes these challenges worthwhile. Agricola and other farm to table enterprises realize that they cannot output all the fresh food they need themselves. Partnership and distribution is crucial to their success—a network is crucial. The popularity of healthy foods comes down to taste and quality, but on a national scale, their continued success will come down to accessibility. If corporations like Whole Foods and grocery services like AmazonFresh improve their geographical reach, capitalize on their efficiency, and cut their own costs to lower prices for consumers, they will achieve great customer satisfaction with their services. But if Whole Foods decides to go a step further and truly commits to clearing food deserts, the company must consider employing a network system to source and deliver fresh food. Amazon’s purchase of Whole Foods has led the company one step forward, but developing such a network may require partnering with other companies (or as its parent Amazon is inclined to do, simply acquiring them) and using more local sources.

In either case, these companies simply cannot lose. If Whole Foods succeeds in its delivery aspirations, the nation will reciprocate with a growing desire for healthy, fresh food leading more customers to the company’s stores and subscriptions. Even if they fail, regulars at the grocery chain will continue to buy their kombucha, quinoa, and spinach anyways. Regardless, with Amazon holding one hand and its legacy reputation in the other, Whole Foods now has the greatest advantage to conquer the market of fresh, healthy grocery delivery. ■

Rich Pierson Co-Founder & CEO of Headspace BUSINESS TODAY FALL 2017

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“The vision has always been the same, which is to ask ‘how do we improve the health and happiness of the world?’”

22 FALL 2017 BUSINESS TODAY

Business Today: First of all, could you tell us a bit about your background and the career path that led you to co-founding a meditation app?

Rich Pierson: I started my career in advertising and I worked for a couple of agencies.

I ended up at an agency in London called Bartle Bogle Hegarty (BBH), and I was working on traditional accounts- one of the big ones was Axe, which was the last big account I worked on, and then I transitioned from running accounts to running the new business department and looking after the new business pitches. I did that while working for a department there called Zag, which was a brand invention ‘incubator’ where we would come up with brands from scratch and then launch them into market. So that is what kind of led me into the Headspace idea.

BT: What was the inspiration behind Headspace?

RP: My experience in advertising was very stressful, and I burnt out at a pretty young age. I didn’t know what to do with that stress and anxiety, so I started taking meditation courses with a friend at Andy Puddicombe’s clinic in London. I needed some help with dealing with my anxiety, so he would teach me meditation techniques and then we would go over the road from the clinic, and we would come up with ideas for his clinic.

That went on for about six months, so while he started off as my meditation teacher, he became my best friend and then my business partner. It was very organic and unplanned, but I got so many benefits from the practice [of meditation] immediately that I felt there was nothing more important or exciting that I could be working on, and I know that Andy had felt like that for many years, so we feel very lucky to get to work on it.

BT: People often say that technology and meditation might be incompatible, and to turn off all of your devices when you’re practicing mindfulness. How do you resolve this paradox?

RP: I think, one, you have to meet people where they are. Most people are on their

mobile devices, and it is pointless to build another space where people aren’t congregating. Second thing is that our phone is just glass and plastic sitting on a table or in our hand and it’s just an inanimate object. The actual object itself isn’t the problem. The problem is how we relate to that product or service. We’re just at the start of that journey; it hasn’t been that long since we’ve had these powerful computers in our pockets, so we’re still working out how we can use them in a healthy and sustainable way, and I would hope that products and services like Headspace start to teach people how to reflect on using them in a slightly different manner. I am very positive about technology and how it can help us. I think we’ve just got to learn how to use it in a thoughtful way.

BT: What obstacles did you face, both as a young co-founder and CEO and as someone who has tried to bring meditation into the mainstream?

RP: The hardest thing is that you are often trying to fly the plane while you are trying to build it at the same time, and that’s just the sheer pace of growth. We went from 30 people to 160 people in about a year, so that kind of growth is really, really challenging and I think managing the people side of it is very challenging. With leadership, you can’t fake it. You have to be authentic, and I always try my best but sometimes you make mistakes, and it’s hard to understand that you’re going to make mistakes. How you deal with those mistakes is actually a key thing. I think the daily meditation practice, which I’ve had for over nine years now, is a really key component in having thoughtful self-reflection about where you went wrong, without beating yourself up too much, and also understanding where you got things right. I think you have to look at it as a constant process of learning, and something you never master, but that you’re always improving and learning. If you have that mindset, it’s about the journey rather than the destination, and that makes it a more enjoyable experience.

BT: A search for meditation on the App

Store gives many results, each advertising different benefits. Headspace is obviously one of the most popular ones, with significant venture funding and consumer attention. How does Headspace continue to distinguish itself from its competition?

RP: There are a lot of meditation apps out there, yet the one thing I think is most important for consumers to investigate is who the teacher is, and understand the mindset and training that instructor has gone through.

The mind is a very sensitive thing, and in the same way that we would check a therapist’s credentials before trusting what they say, I think it’s just as important to understand who you’re trusting your mind with. In this day and age, there are far too many ‘teachers’ who had taken some 8 week mindfulness course and feel qualified to serve as a meditation teacher. Although this can be fine in some casual contexts, I feel a much greater degree of trust in my co-founder Andy, who has spent over 10,000 hours of training and study under many of the most respected masters in meditation around the world. That gives me, personally, a lot of confidence and for our community as well. I also think the quality of our product and our content, as a result, is very different. A lot of products are trying to use sounds or nature scenes as relaxation techniques, which I think is fine, but I wonder if that’s really teaching people a skill that they can bring into their life. If you always rely on feeling relaxed and calm when you’re looking at or hearing something, are you really changing the underlying cause of your stress or insomnia? I think that going on a skill-based journey, which is really what we think Headspace is, is a very important component for anyone that’s starting a practice to consider. Maybe people are just looking for a quick-fix relaxation here, but I think there’s something more powerful in learning a skill about how your mind works and how you can develop that over time.

BT: Millennials are increasingly concerned with both their physical and mental well being, and so they are willing to spend on

experiences and products that will contribute to their health. What do you think of this trend, and do you think it’s here to stay?

RP: “I do and I don’t think it’s just about millennials. We all live in a particularly fragile, tense environment on a global level and that brings a certain amount of mental anxiety and restlessness. Traditionally, when things externally are very unpredictable, we retreat to learning skills to manage our internal world, and meditation is a key method of handling this stress. I definitely think that this trend is here to stay, and the fact that meditation has been around for 2600 years speaks to the ubiquitous nature of this condition.

BT: What advice do you have for young entrepreneurs and what do you wish that you had known when you were turning your idea into a viable business?

RP: This has been such a hard and difficult journey and experience with lots of ups and downs. Andy and I met about nine years ago, and I think to sustain that level of energy and focus you need to really, really care deeply about what you’re doing. If you’re just doing an idea because you think it’s going to make you lots of money, I think it’s easy to run out of steam. You should always check your intentions, and I worry that a lot of young entrepreneurs are thinking of services that people will use a lot versus thinking of ‘what does the world really need?’ and ‘what needs to be fixed the most?’ I would love this new generation of entrepreneurs to really be thinking about the world’s biggest problems and how they can solve them, because I believe that would really help. One of the things I wish I’d known when I was turning the idea into a business is that it is about the journey and not the destination. For many years I was trying to get to the endpoint of something, thinking ‘when I get there, I’ll feel less stressed,’ but that has not been my experience. There will always be a different set of problems, and I just wish that I’d realized that it was a long game and a journey rather than being so impatient. ■

BUSINESS TODAY FALL 2017

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PACKAGING

HEALTH? How ‘Healthy’ Labeling Affects Our Purchases

by Ananya Malhotra

24 FALL 2017 BUSINESS TODAY

s that USDA Organic, Oregon Organic, of the actual health of the product. or Portland Organic?” “Are these hazelDr. Lindsey Smith Taillie, a researcher nuts local?” “How big is the area where at UNC Chapel-Hill, recently studied the the chickens are able to roam free?” “Do nutritional profiles of packaged food sold at you have a good relationship with this farm? Walmart and published her findings in the It’s not some guy with a yacht, who lives in American Journal of Preventative Medicine.

Miami, just saying that he’s organic?” Fans The data shows that the correlation between of the show Portlandia will recognize this a product’s ‘claim’ to being healthy (such as scene, where Fred Armisen and Carrie a label “sugar-free”), and its actual nutriBrownstein satirize two hipsters interro- tional profile based on its ingredients don’t gating their server at a restaurant on the actually always line up. Often times, prodauthenticity of their chicken. ucts whose packaging claimed to have lower Although it may seem like a clever bit of sugar actually still had higher sugar contents absurdity, it’s not far from the truth. The epi- than its competitors, while others may have sode is already several years old, and speaks lower sugar content, but higher levels of fat. to a trend that seems to define our current She concludes that for consumers, frontdecade. From smoothie stores to the produce of-package claims often tell little about the aisle, consumers want to know what is in the healthiness of what’s inside. food and drinks we consume. Popularized While poorly defined labels like “natby documentaries like Food, Inc. and books ural” might be ambiguous to consumers, like Michael Pollan’s Food Rules, the push to surely official FDA designations such as eat healthier, eat local, and know what we’re “low-fat”, “low sugar” or “organic” would putting in our bodies has shifted the industry. be better regulated? Yet, given how arbitrary The demand for ‘all natural’ has forced large and outdated these definitions are, even companies to contort their ingredient list to these labels often mean little in terms of real fit regulatory labels such as ‘reduced sugar’ health. One well known case involved KIND on packaging. bars, a favorite among health-conscious milIn short, the obsession with “fresher” lennials for its short ingredient list and clear and “less-processed” food is antithetical to packaging to connot simplicity and transparthe aims of large food companies, which ency. Yet, despite this image, the company profit from the use of highly-processed received a FDA warning in 2015 for higher ingredients like high fructose corn syrup and than regulation fat contents to be considered aspartame. Now that those ingredients have “healthy”. Justin Mervis, KIND’s General become taboo in upper-middle class commu- Counsel, holds that this is because the FDA’s nities, companies have had to shift. Although regulations were put in place in the early many might choose their local farmer’s mar- nineties, when the health trends focused kets for the sake of their health (and wallets), primarily on fat reduction rather than sugar health-conscious consumers who shop at intake, and that KIND bars’ high fat content grocery stores face yet another set of chal- come from natural sources such as almonds lenges to navigate. Labels like “gluten-free,” or avocados that have since been considered “GMO-free,” “sugar-free,” “organic,” and healthy. Yet, because FDA designations are “low-fat” pervade the snack, cereal, and even rarely updated and often subject to heavy candy aisles, yet little is said regarding the scrutiny by lobbyists, even packaging that health ‘benefits’ of these foods. is not designed to deliberately mislead conLabeling and marketing campaigns have sumers may place companies in a tight spot long since found themselves at the mercy of to comply with out-of-date regulations. recent health trends: while the nineties saw Looking to the future, we will have to see an emphasis on “low-fat” and “low-carb,” how the food industry responds to changing newer labels tend to include “gluten-free,” consumer demands for healthier food. In one “locally-grown,” and “organic.” Yet, now scenario, large food companies will slowly that even potato chips boasting the taglines decline as buyers turn to farmers’ markets of “gluten-free” or “GMO-free,” are such and other local sources, while in another, labels truly meaningful in terms health to large corporation follow trends closely and the general consumer? For many, this stra- promote “healthy” foods and drinks that from tegic label doesn’t even necessarily attempt a health perspective are no better than fast to exhibit health, rather establish the compa- food. In another seemingly outlandish sceny’s image and ethos as being hip and trendy. nario, consumers may tip the scales back to The same high-sugar, high-calorie pint of prioritizing taste over health: Pepsi-Co’s 2015 ice cream bearing labels of “all natural fla- attempt to rid itself of aspartame backfired vors” and “organic/GMO-free/gluten-free” horribly when the ‘healthier’ substitute could may connote that the company has higher not match the flavor of the original, lowering quality ingredients and allow consumers to sales instead of increasing them. As compaindulge in an unhealthy dessert without the nies continue to juggle the taste and health guilt of say, eating a Klondike bar. When the demands of consumers alongside stringent packaging of a snack allows the consumer regulations, we as consumers may find it best feel better about eating an unhealthy treat, to navigate the grocery aisle with a wary eye the company’s aims are achieved, regardless and savvy wallet. ■

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“Labels like ‘gluten-free’, ‘GMO-free’, ‘sugarfree’, ‘organic’, and ‘low-fat’ pervade the snack, cereal, and even candy aisles, yet little is said regarding the health ‘benefits’ of these foods. ”

Only 70% of ingredients need to be organic in order for a food item to be labeled ‘organic’

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To: Female Athletes 26 FALL 2017 BUSINESS TODAY

From: The Ballet World

By Deasee Phillips

BUSINESS TODAY FALL 2017

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Percentage of girls who play

3%

40%

1972 (Before Title IX)

2017

SPORTS: ccording to NPR’s 2015 Your Health article, sports participation among girls and young women has skyrocketed in recent decades. Since the establishment of Title IX in 1972, which dictated equal access for women’s varsity sports at federally-funded institutions, there has been a 37% increase in the number of female athletes. The Women’s Sports Foundation (WSF) notes that female athletes have become extremely prevalent, participating in sports like soccer, basketball, and water polo. However, even with the drastic increase in sports involvement from women, scientists have found that many girls are not eating enough to satisfy the demands of these sports. This lack of nutrition puts many young girls in danger for various health problems that can last a lifetime.

In the years before the lack of nutrition of female athletes became apparent, doctors tended to look only for symptoms that resembled anorexia, especially in extremely skinny women. Orthopedic surgeon Dr. Elizabeth Matzkin, chief of Women’s Sports Medicine at Brigham and Women’s Hospital in Boston, describes how times have changed. Describing how athletes nowadays can come in any shape, form, or weight, she notes that “typical ballerina physique” is not the only warning sign doctors notice in a young, active patient.

Although female athlete triad syndrome is prevalent among many young women, most of them, and even many of their primary care doctors, are not aware of its existence, putting many female athletes at risk.

A key distinguishing factor of Female Athlete Triad Syndrome is that it can be caused either by not eating at all or by not eating correctly. Female athlete triad syndrome or FATS consists of three interrelated condi-

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tions of energy deficiency, menstrual disturbances, and bone loss, and can range on a spectrum from mild to severe. Without treatment, these health risks can prevent proper development for young women, even leading to potential infertility in the future. According to Dr. Matzkin, anytime a young female athlete comes to her office with shin splits or fractures, she now asks about nutrition and menstruation. If caught quickly, female athlete syndrome can be stopped before serious damage is done, with treatment consisting of a modified diet and exercise plan that can restore energy levels. By increasing their intake to at least 30 kcal/kg, female athletes are able to maintain regular menstruation patterns and improve one’s bone mass density to healthy levels.

However, the most pertinent question surrounding Female Athlete Triad Syndrome pertains to how the epidemic began in the first place. Marie Camargo, an iconic ballet dancer, was perhaps the first famous athlete to embody the ‘dancer’ physique, sporting long lean muscles and graceful lines. Her technique and dance ability made her the crème de la crème in the ballet world, with popular culture coining the term “the ideal ballet body”: 5’5” and very slim. As this ‘perfect body’ mentality spread throughout the world of dance, it began to seep into women throughout society as well, with every woman seeking lean muscles and slim shoulders.

Thankfully, the ideal ballet body is already on the decline in the ballet world, with professional ballet companies recognizing the toll on dancers’ health and promoting healthier policies. For example, the Royal Ballet School in London has already implemented new standards and policies that actively target eliminating anorexia

“

Thankfully though, the ‘ideal ballet body’ is on the decline in the ballet world and eventually within the rest of the world as well.

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and promoting nutritious meals full of protein, fiber, and vitamins. In a world where near-starvation and eating disorders were common, ballerinas are now encouraged to eat full meals with salads, tofu, grilled chicken, and hard boiled eggs to ensure they receive the proper nutrition to perform their best. American Contemporary Ballet dancer, Theresa Farrell emphasizes how ballet dancers have developed a “not to be hungry” mentality. Instead of not eating certain food groups, Theresa states awareness is the key to success. Dancers of today are able to eat what they want as long as they know what they are actually eating through personal health and wellness diaries. These diets help dancers live their best life which provide them with the energy needed to execute technically challenging dance steps.

Given that ballet may have inadvertently led to the glorification of eating disorders and an obsession with body image, perhaps it will be able to end this pandemic as well. Through these progressive policies to eradicate body shaming and promote healthy living, ballet companies may be able to pave the road towards greater body positivity across disciplines ranging from dance to fashion to athletics. Ballet’s modernization in the 21st century has already created an opportunity for people to dance from different backgrounds.Whether it’s the widespread appreciation of Misty Copeland’s showcasing of her strong muscular physique or dance companies across the United States becoming more tolerant of differently-shaped women, ballet has truly reformed their take on the ideal body type. This stance on women’s physical appearance in the sports industry will hopefully set a path to a healthier lifestyle for women in all sports. ■

Disordered Eating Inadequate energy and nutrient intake

Osteoporosis

Amenorrhea

Low bone density

Menstrual dysfunction

FEMALE ATHLETE TRIAD

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CRUNCHTHE

NUMBERS

Big Data in the Digital Health Tech Industry

by Shazia’Ayn Babul

30 FALL 2017 BUSINESS TODAY

Patient health data is very complex and highly specific

Traditional data analysis has difficulty combining cases and spotting trends

BIG DATA allows for recent developments in analyics to process cases

ealthcare has traditionally been primarily based on human analysis, but recent innovations in technology are revolutionizing the industry. Almost all aspects of healthcare already intrinsically rely on data collection and analysis: diagnoses, developments of treatments, and even predicting future health issues. Because the data sets collected from many patients can be so large and complex, traditional data analysis techniques often fail, and collective analyses over multiple patient cases is almost impossible, merely due to the sheer volume of data available. However, the rise of “Big Data,” which harnesses the power of recent developments in software analysis to search for patterns and trends in extremely large data sets, has created a new way to analyze these vast reserves of health data.

Healthcare represents a massive industry in the United States. According to an article by the Office of the Actuary published in the Health Affairs journal, national health expenditure in the US is approximately 3 trillion dollars annually. Given the economic significance of the medical sector, it comes as no surprise that top technology companies are already investigating “Big Data” applications to healthcare. In April 2015, Apple partnered with IBM’s Watson Health analytical service to share an abundance of health data collected from Apple Watch users.

Google’s parent company, Alphabet, has developed a healthcare technology focused subsidiary named Verily, which works on projects ranging from sterilizing mosquitos to building robotic surgeons. Most recently, in Summer 2017, Amazon revealed the existence of its medical technology team, named 1492, which is currently working on creating a unified platform of electronic medical data and developing the field of telemedicine.

Many healthcare technology start-ups are also springing up, clamoring to capitalize on this new demand for data analysis. However, a 2015 report by Accenture, which analyzed 900 healthcare technology start-ups, found that around 50% of such companies failed within 2 years. While there are ever-growing reserves of funding for digital health companies, most start-ups fail to become profitable. Not only do health care technology start-ups face more stringent regulations from the government than most other tech companies, they must also market themselves to a slow-acting group

H

of buyers — physicians and hospitals. To complicate matters further, many of their products require direct access to patient data from hospitals, which can often be difficult to obtain for a fledgling startup with no established track record. Thus, it is often more common for tech giants like Apple, Google and IBM to acquire faltering healthcare start-ups that could be revived using a seemingly inexhaustible fund from the parent company.

One start-up that has managed to thrive despite these dire odds is Flatiron Health, founded in 2012 by former Google employees Nat Turner and Zach Weinberg. Inspired by the disorderly system of patient data organization Turner witnessed as his cousin fought leukemia, the partners sought to revolutionize cancer treatment by applying Big Data techniques to oncology data sets. Since their conception, Flatiron Health has been extremely prolific, examining trends in cancer data to understand the impacts of different treatment patterns, comparing common indicators of cancer to validate diagnoses, and looking for markers that could predict cancer. Flatiron offers its suite of products to cancer clinics, but also research institutions and pharmaceutical companies to impact both treatment and development of cures.

Over the past year, Flatiron Health has received multiple investments from large corporations, including a $175 million partnership from the pharmaceutical conglomerate Roche, as well as $138 million from Google Ventures (their second largest investment after Uber). According to Business Insider, Flatiron Health is now valued at over $500 million, and seems well on its way to becoming an established company.

Although Big Data has the potential to vastly improve understanding of trends and better inform healthcare decisions, health tech start ups still face daunting hurdles.

Institutionalized healthcare facilities can be slow to adapt to new technologies, and resistance to publicizing data remains a challenge, leading to incredibly high start-up failure rates. Flatiron Health is just one of many start-ups attempting to carve out a niche in the risky digital health technology industry.

However, its continued success, economic growth, and strong partnerships with healthcare providers, may indicate a forthcoming change in the face of the digital health industry. ■

together

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An Interview with

Reebok President

Matthew H. O’Toole President of Reebook 32 FALL 2017 BUSINESS TODAY

Business Today: Could you tell us a bit about your background and what led you to your position at Reebok today?

Matt H. O’Toole: I grew up in Chicago, Illinois, not too far from Wrigley Field. In my neighborhood, say one square mile, I had twenty eight cousins, so I was closely tied to my community and we often worked together to find creative ways to have fun.

We would be serial entrepreneurs, running hot dog stands, delivering singing telegrams with balloons, etc. Even though none of them were particularly successful, we constantly thought about ideas to make money and this inspired us to maintain an entrepreneurial mindset as we entered the digital age.

I would go on to receive an undergraduate degree in accounting and an MBA at Kellogg School of Management, which led me to the sales and marketing side of the business my whole career, particularly the sports and leisure sector.

BT: Reebok was one of the only brands with true athletic sportswear before leggings and sweats became the new jeans. How does the brand stay relevant and grab both the attention and loyalty of millennials?

MHT: I think the heritage and authenticity of our brand is a big part of what makes us relevant with younger people today. We don’t simply follow today’s trends, as with many denim brands shifting to leggings, but it is truly who we are. We were the first brand to make fitness shoes for women specifically, and it was one of the core ideas that founded the company. Back at the time Reebok was starting in the US, Title IX had just created a new generational interest of women in sports at the collegiate and professional level.

Yet, there was another generation of women a bit older who also wanted to workout and sweat their muscles, and Reebok was able to capture that underserved market through products designed specifically for women.

We have pursued this path for the last 30 years, and we continue to produce products that our consumers use every day in a real sense. Some of our biggest competitors brand themselves as targeting moonlighting fitness professionals, whereas we take a more human approach to our consumers.

We understand that our consumers are not working out to take a tenth of a second off their hundred meter dash, or join a professional soccer team. We want to workout because we want to feel better and have a

healthier life, and this is what sets us apart.

BT: What was the motivation behind Gigi Hadid’s Perfect Never campaign?

MHT: Gigi is a part of Perfect Never, but I think that the Perfect Never idea was really born from our “Be More Human” approach. Our focus is not about perfection, but rather to be who are you. We first started the campaign with MMA fighter Ronda Rousey, who at the time was an undefeated champion and medalist in the Olympics, yet she’s not perfect either and she’s happy with that. We continued on to Juxtapose that with a high fashion model to spread the message that even though others may perceive someone as ‘perfect’, we all understand that no one is, and that’s okay. No one should strive for perfection, and should simply strive to be yourself.

BT: What factors do you think contribute to millennials being more concerned with buying experiences rather than products?

MHT: I have a twenty one year old and a nineteen year old, and you can see that they have grown up with a generation ahead of them that was looking at success in terms of outward appearances, whether that was the car you drove, the vacation house you owned, etc. However, from their perspective, I believe they have found things that are more important to them, which often takes the form of ways to spend their time and the experiences they create. I do think that the digital world we now live in has been a big factor in that people want to share their lives and their experiences rather than the things they’ve accumulated, and I believe this is a good thing. We hope that you can buy a pair of our Nanos and use them for a year instead of buying four pairs a year and using the rest of that money to grab your friends on a weekend and do a race, or go ahead and do the Himalayan loop for the summer.

BT: A great example of Reebok reinventing itself and evolving is the Reebok Space Stride Space Boot which is the first design change to space boots in fifty years. Could you tell us a little more about what led the brand to reinvent astronaut footwear?

MHT: We’ve had a partnership for many years now with the company that makes all the spacesuits for NASA - David Clark Company- and they came to us with the goal of redesigning the suit to take as much weight out of the equation and help the astronauts perform in space. When they brought

“Some of our biggest competitors brand themselves as targeting moonlighting fitness professionals, whereas we take a more human approach to our consumers.”

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“We’re already combining teams of performance designers and engineers with fashion experts and pop culture icons, and I believe this will be a growing trend that will further blur the lines between form and function.”

34 FALL 2017 BUSINESS TODAY

their original boot and put it on one of our tables, it was so heavy that it nearly broke the table itself ! The team here got to work and brought forward creative ideas that we have applied to our running footwear in conjunction with the materials research we have used in developing durable training gear to create the next generation of space boots.

We could have easily turned down the project, given that we know we’re not going to sell a lot of space boots, yet we found it to be a great pet project that we could learn a lot from. By understanding what is required to develop a boot for the most difficult conditions possible, it allowed us to really push our development team to their limits and improve our overall durability for regular workout gear as well.

BT: Sneaker-heads are always anticipating the design releases of new shoes. What is the process like for a celebrity to design a shoe, and how much autonomy are they given?

MHT: I think one of the things that’s very cool that’s happening right now is the evolution of the involvement of a celebrity endorser. I’ve been in the business for a long time and in the past, arrangements would be more transactional in terms of being a more purely business deal. More recently, we have been particularly fortunate with people like Future who want to be very involved in bringing a unique perspective to the product, and this allows much deeper collaboration with our designers. I believe that this creates a more authentic partnership which I believe was missing in the past. In terms of artistic license, our answer is definitely yes.

However, this does make product development more difficult, since we generally fol-

low strict schedules, although we often have to be more flexible for these collaborations.

For example, we may get a sample that we don’t like, or want to try a different material, etc, which makes things take longer than we want, but it’s definitely worth it.

BT: Kanye West Yeezies might be running shoes but people rarely wear them to workout, there’s even a company called LSWOP that lets you rent them if you don’t want to pay $700 just to get them off eBay. In what ways do you think that fashion and exclusivity are affecting the sportswear industry?

MHT: I think that there’s definitely a merger in our society today between sport and fashion that we haven’t seen in such a big way in the past. It’s always been the case that a lot of the athletic products we sold weren’t actually used in the gym, as people would wear them casually to walk around town. Yet, what we see today is that consumers will choose athletic brands as a way to show their connection to sport more than ever before. That’s a very good thing if you’re in a business like we are, but it definitely makes putting these two worlds together in an authentic way both a challenge and an opportunity. You can’t only make fashionable products then limit supply and still maintain a strong foothold in the authentic performance world. Every company knows that keeping supply just below demand makes the company better off, and I think that many companies in our industry use this model in dealing with fashion products. In the future, I think we’re going to see more high fashion designers or celebrities involved in creating the right aesthetic for even high performance products. We’re already combining teams of performance

designers and engineers with fashion experts and pop culture icons, and I believe this will be a growing trend that will further blur the lines between form and function.

BT: Looking back, what advice would you give to your younger self straight out of college?

MHT: Don’t sweat the small stuff. I think that sometimes you kind of think that everything’s important and you realize that only certain things really are. Of course this is easier said than done, but I think if you look at the trajectory of your career arc, you won’t be measured by any single performance, idea, report, project, or product.

Another aspect my younger self underestimated is the importance of collaboration.

The most difficult person to promote in an organization is the person who is an absolute genius who knows everything and can do anything but doesn’t work well with everyone else in the organization. No matter how great you are, there is no way to run a big business like ours without a high level of collaboration.

BT: How did you decide to make the transition from having and including sports to not?

MHT: It really was not an easy decision, but up until 5-6 years ago, we were making sports product for almost every sport activity from soccer in America, to cricket in India, and everything in between. Although we were making really good products, we were tangentially participating in a lot of different activities but lacking a deeper relationship with our consumers in any particular place.

We began to spread ourselves too thin, and we wanted to focus on developing those deeper, more meaningful relationships with our consumers. I think the best place to start

was to return to our roots, and the authenticity of our initial launch of fitness and running was our biggest inspiration. Since then, we have replaced all the sports businesses we left (over 700 million euros worth) with new fitness products, and we will strive to devote ourselves to this fitness lifestyle brand through a steady stream of newness and ingenuity to our consumers. Although this was not a difficult strategic decision in the long run as it made a lot of sense, it was tough from a practical perspective to give up on that entire segment of the market and not collect that revenue. There were certainly more than a few butterflies in our stomachs when we made that call, but I’m certainly happy to see what we have accomplished since.

BT: What changes internally have you seen since then?

MHT: One of the biggest changes we faced was in redefining our culture of the organization to focus more on fitness and lifestyle experience. When we first decided on this plan, we took everyone in the company out onto the lawn and set up a workout together.

Although people were initially puzzled as to why we held this event, we announced that we wanted everyone to workout at least an hour a day during work, and that we firmly believed this would make everyone more efficient for the remaining hours. This was a huge shift in our culture to be centered on fitness, but we believe this has made us physically, cognitively, and socially stronger.

In this regard, practicing what we preach has certainly paid dividends in terms of the culture and work environment, as well as truly creating a passion for our product and the fitness lifestyle. ■

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FITNESS or FAD?

by Rasha Suleiman

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“What I’ve lost over the past year taking Pure Barre?

25 pounds. What have I gained? Everything.”

- Kelsey G

“For over a decade, I’ve watched Pure Barre change bodies across the nation.

The best part is that not only does it change bodies, it changes lives.”

- Carrie Rezabek Dorr, Pure Barre Founder

“Our mission is to bring Soul to the people.Our riders say it’s changing their lives. With every pedal stroke, our minds clear and we connect with our true and best selves.

Through this shared SOUL experience, our riders develop an unshakeable bond with one another.

Friendships are made and relationships are built. In that dark room, our riders share a Soul experience. We laugh, we cry, we grow — and we do it together, as a community.”

- Soul Cycle

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“The focus is no longer on the fitness component itself, but to create a demand (or perhaps obsession) with this specific type of exercise as an art form.”

ren’t these words amazing? According to these testimonials, health, happiness, strength, and community, an entire lifestyle overhaul can be obtained for just $34 dollars per 45 minute session.

Although SoulCycle may not offer class bundles, five sessions of Pure Barre can be bought at a rate of five lessons for only $125, a steal by any standard!

Over the last decade, fitness has developed a new face: one of exclusivity, fads, and near cult status amongst millennials and their parents alike. With branded fitness attire, trendy candle-lit studios, pumped-up playlists, and celebrity endorsements, fitness classes have taken the wellness industry by storm. These classes have managed to appeal to a wide audience, ranging from college students, to middle aged men, to moms fitting in a 5:20 a.m. class before work. Yet, why are these classes so successful? If one were to take four cycling classes a week, the cost would come out to over $500 a month, nearly 20 times more expensive than a basic gym membership! What can make a couple 45-minute spin classes worth hundreds of dollars? How can a Pure Barre studio in Princeton, New Jersey fill five classes of twenty individuals every single day? Even

A

$28

per Flywheel class 45 minutes

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the free gym membership available to all students can’t seem to compete with these studio classes, not to mention the thousands of free online tutorials or outdoor activities available for fitness.

For many individuals, the entire experience comes down to branding: SoulCycle, Pure Barre, and others promise to deliver what no elliptical or weight room can: happiness. These classes do not simply attempt to sell the workout as a function of calories burned and muscle mass gained; they sell a spiritual self-improvement course alongside dozens of companions to form tight knit communities. And most surprisingly, for many, these promises actually hold weight.

Many people admit to being moved to tears during their 45-minute spin classes, even exalting the experiences as “incredible” and “mesmerizing”. At this point, the focus is no longer on the fitness component itself, but to create a demand (or perhaps obsession) with this specific type of exercise as an art form.

The community aspect fosters client dependence upon the group, for no one wishes to be left behind as their friends and companions continue on to lessons without them. In a sense, this forms a self-fulfilling prophecy: by selling a community experience, people

$34

per 305 Fitness class 45 minutes

$34

per Soul Cycle class 45 minutes

are inherently tied to their classes and are obligated to attend more often, in turn creating that community through their continued participation. And this may not be the end to the psychological impact: just as people may convince themselves that pricier dishes taste better, so too does cognitive dissonance set in, convincing themselves that if they are spending nearly a dollar a minute in class, they had better be enjoying it. Through these feedback loops, such a cult following takes form.

Yet, such a phenomenon cannot be attributed to fitness alone: in the larger context of ‘wellness’ that has spread across the West, the concept of self-care has not only become an increasingly important aspect of people’s lives, but a rapidly growing industry as well. The rise in popularity of Whole Foods, the obsessions with kale and quinoa, and the increased demand for personal time spent in reflection and meditation all come to mind when the ‘wellness’ movement is discussed. In conjunction, major fitness brands capitalize on this movement, taking advantage of people’s eagerness to self-improve and constantly strive for personal advancement. By branding themselves as providers of ‘health,’ ‘strength,’ and ‘community’,

these providers have instilled in their customers a deeper emotional need. No longer do people seek tangible goals like weight loss, but rather abstract needs of feeling better about themselves and their lifestyle.

Pure Barre has already become an international chain, with 460 studios throughout the US and Canada, with new ones opening every month. Although SoulCycle only holds a modest 85 locations, it has made a name for itself despite being a privately owned company that is ubiquitous across America’s major cities. At the moment, these companies have certainly built successful enterprises, but what lies for the future of these fitness empires? Is the demand for emotional fulfillment through exercise merely a passing fad, or have these companies tapped into a deeper source of human need that will become a permanent fixture of a healthy lifestyle? What can be said about the selfcare and self-love moments? Is it admirable to promote and commoditize exercise as a fixture of the upper class, and can people truly achieve self-actualization from a simple spin class? Only time will tell, but in the meantime, perhaps it isn’t so bad for fitness gyms to replace fast food shops as America’s cultural icon. ■

$27

per Pure Barre class 60 minutes

“When people pay almost a dollar a minute for a class, cognitive dissonance is more than likely to kick in and convince that person that they enjoy it.”

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Greg Capelli CEO of Apollo Education Group 40 FALL 2017 BUSINESS TODAY

The Apollo Group owns and operates:

Business Today: We’d love if you could tell us a bit more about your background and what led to your position at Apollo now.

Greg Capelli: Ironically, my background has nothing to do with where I am right now.

I started up as a kid growing up in a musical family, whose parents were musicians, pianists, and had six kids, and every single one of them went to get their bachelor’s and master’s in musical performance. I have sisters who play the violin, one in Chicago with some of the symphonies, and my brothers are all musicians. I went to music school so I could pay my way through school. It was the only way we could afford to go to school.

I had heard about Wall Street and finance, and I soon gravitated towards learning more about business and finance, which eventually led me to work at the Chicago Corporation, a boutique investment bank which was later acquired by ABM AMRO. As a junior analyst, I was mentored by a very talented senior equity research analyst, and I picked up the trade. After a few years, I was hired by Credit Suisse, and I spent 10 years there on the Global Services Research Team, where I became deeply involved in the IPOs of education companies ranging from DeVry to University of Phoenix, to even Apollo itself.

BT: How did this inform you once you became the CEO of Apollo and how did your experience getting to visit those places edit and adjust your leadership style?

GC: For me, I took a different track. Some people run divisions of companies. I was in charge of hiring and managing my group at Credit Suisse. I hosted a conference every year with companies, management teams, and industry experts, so I was used to public speaking and interacting with other executives. I spent a lot of time interacting and getting to know management teams of all

different kinds and types of styles, and I really thought that was a gift, to be able to interact so closely. My style was never to insult the management team or to tell them they were doing something stupid, even if I had a holding in a company. I solely wanted to provide constructive feedback on how they could do better, and I wanted to make sure I had enough information to back up my decision to invest or not. Ultimately, I spent a lot of time with John Sperling, who founded Apollo, and over the years we talked about eventually doing something together. I focused my initial time on the international operations when we founded Apollo Global in partnership with the Carlyle Group. The greatest challenge was to build our international capabilities based off the lessons we learned from the US, and ironically enough, after completing that mission, John Sperling asked me to return to run the US division.

BT: We have heard a lot about the rise of massive online open courses and online education, with even Ivy League colleges releasing free online courseware. Do you think these courses will gain prominence, and how may they affect the education industry?

GC: I think MOOCs are naturally wonderful things that offer the opportunity to empower young people all around the world through transferring knowledge. However, thus far I have been rather disappointed in the limited progress such courses have made, primarily due to human nature and laziness.

I have written a lot about the potential of these courses to spread knowledge, but when you look at actual numbers, very few people actually complete the courses they start.

Those students who are very motivated with already good educations are the primary beneficiaries of this technology, but I would like to see more people from the working

“[MOOCs] offer the opportunity to empower young people all around the world through transferring knowledge.

However, thus far I have been rather disappointed in the limited progress such courses have made.”

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By 2025 there will be

262,000,000 students in higher education Today, the global higher education market exceeds

$1.9 trillion

“From my own research, I found that over 50 percent of the time, across the Fortune 500, all the billions of dollars that are spent recruiting, finding, hiring, employing talent never make a positive return on investment.”

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class, who may not be able to afford a college degree, to take advantage of these free opportunities to increase their human capital.

But I think the MOOCs will evolve into something much bigger and much better from a corporate standpoint. They’re going to help these people have more success inside corporations where they’re providing coursework, and the employees are being driven by the companies to ensure their success. However, they will need substantial work to ideally reach a wider audience and increase the completion rate. I personally tried to take a MOOC on the Obama healthcare bill, and I could barely understand it! It took me a while to get through it, but I can definitely see why so many people who either lack the time or motivation to push through such courses may never complete them. I see vast potential in this area, and they can really be a great gift to society, but I have also seen the reasons for why they are not more popular than they are currently.

BT: Since education might be very location specific, how have you made sure to implement programs that may fit in within the culture of that region or country?

CS: This is yet another lesson that I learned over time. There is a simple way to ensure that you’re in tune with what is needed in any country, including the U.S: you need to listen to the employers. I literally went on a listening tour around the U.S. and met with

over 100 Fortune 500 companies and their management. The whole time, I wasn’t selling them anything, and I solely focused on asking them what they wanted to say that investors weren’t listening to. And time after time, I heard that higher education doesn’t listen to the employers. Universities want companies to hire their graduates, yet none of them listen to the things companies want their recruits to know. “Here are the things we want deployed in the classroom along with your official classes. Here are the skills we need to be developed. We don’t want to spend billions of dollars retraining people when they come out of college, or as much as we do.” You start to hear patterns, and I’ll give you guys a statistic. From my own research, I found that over 50 percent of the time, across the Fortune 500, all the billions of dollars that are spent recruiting, finding, hiring, employing talent never make a positive return on investment. That’s what happens in this country. We hire people that leave early, in a lot of cases, and we do it all over again. You need to partner, listen, to the employers, because ultimately that’s why most people go to school; they want to get a job, they want to learn the skills, whether they’re social skills, medical skills, appliance skills, whatever they are, and they want to learn so they can use those skills to work for their families and build a career. We definitely don’t do enough of that, and still don’t do enough of that here. ■

Goodbye Diamond Rings, Hello Avocado Toast Spending habits of millenials

by Betty Liu

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hen the topic of millennials comes up, one might think of a few buzzwords: Starbucks, avocados, Netflix. Upon seeing these changes in tastes, older generations often complain that millennials are losing the American dream in exchange for frivolous spending. Yet, this paints an overly simplistic picture of one of America’s largest generations. As millennials are coming into their own, becoming financially independent as they move into their prime working years, people are becoming more and more interested in finding out what millennials truly value.

In the last few years, there has been a steady increase in the focus on millennials.

This generation, consisting of the children born between 1980 and 2000, are starting to come into their peak spending years. Millennials already make up one of the largest generations in American history, even outnumbering the Baby Boomers, putting them in a position to greatly impact in the overall market.

According to Google Trends, the search term “millennials are killing…” reached peak popularity in August 2017, when a slew of articles detailing the spending habits of millennials were published. Publications including Business Insider, the New York Post, and Forbes Magazines released articles detailing the various goods and services that were no longer enticing millennials. These services ranged from luxury goods such as diamond rings to products as quotidian as cereal and paper napkins.

Taking a look at all of the industries that have seen a recent decline, two trends become increasingly obvious: millennials want to spend less money and waste less

W “Millennials want to spend less money and waste less time. Luxuries that have seen a downturn include vacations, cruises, cars, and sit-down dinners.”

time. Luxuries that have seen a downturn include vacations, cruises, cars, and sit-down dinners. On the convenience side, there have been declines in goods such as bar soap and fabric softener. These declines open the door for others to lambast millennials for being lazy, or complain that millennials are changing America’s cultural landscape by not spending money on traditional luxury goods. Millennials have been referred to as selfish and entitled, with Time Magazine even referring to them as the “Me Me Me Generation.” While it is understandable why older generations may hold these views, these complaints fail to take into consideration the massive societal changes that have occurred in the last 20 years.

In previous generations, the ideal picture of American life was “The American Dream,” which involved getting a degree from a leading institution, earning success in your career, getting married and having kids, and climbing higher than your parents on the socioeconomic ladder. Consumption habits reflected this idea, with commodities such as a house and car serving as status symbols representing various stages of success. For millennials, the first generation to approach adulthood in conditions less favorable than their parents, this dream may not be so easily obtained.

As quoted in a data story from Goldman Sachs, “Millennials have grown up in a time of rapid change, giving them a set of priorities and expectations sharply different from previous generations.” As they grew up, millennials witnessed their parents lose their life savings in the subprime mortgage crisis of 2008. As the economy plummeted into the greatest recession since the 1920s, those who were entering

44 FALL 2017 BUSINESS TODAY

August 2017

June 2017

January 2017

Google search count of “Millenials are killing...”

the job market had few opportunities to pursue. As the economy recovered, new opportunities emerged. However a new problem arose: student debt.

In the last decade, higher education has also become increasingly important in finding a job, but tuition prices have also rapidly increased, with average national tuition at private universities soaring 157% in the past 20 years, and average public university costs rising 195%. As a result, an entire generation of young people are saddled with enormous amounts of debt at the beginning of their careers.

With their financial futures on shaky ground, millennials are less likely to purchase a house, car, or other assets due to their fear of acquiring more debt. They are also less likely to start a family because of the lack of stability. Upon entering the workforce, many millennials choose to live with their parents to save on housing cost. Even those millennials who wish to become homeowners are often squeezed out of the market, given housing prices have risen at twice the rate of inflation in 2016.

So if millennials are no longer spending money on houses, cars, and diamond engagement rings, what are they spending their limited income on? Surprisingly, one answer to this is wellness. Along with the financial crisis, millennials also grew up alongside the digital revolution. They are the first generation with the ability to be exposed to new and diverse lifestyles on a massive scale. For many millennials, “wellness” no longer means “not sick.” It reflects a different type of lifestyle that encompasses social, emotional, and spiritual wellbeing along with any physical factors.

According to Euromonitor Interna-

tional, the global market for health and wellness offerings reached $686 billion in 2016 and it is expected to grow at a 3.5% compound annual growth rate to $815 billion by 2021. There is an increasing inclination towards healthy and natural products, particularly organics and ‘free form’ food that exclude wheat or dairy ingredients.

Along with the push for healthier food, there is also an increase in the pursuit of fitness. The growth of athletic apparel and footwear brands have seen significant growth, with a year-to-year growth average hovering around 15%. There has also been an increase in the prevalence of fitness tracking, with 65% of millennials describing fitness tracking as important, according to a survey conducted

by MobiHealthNews. While traditional gym memberships have declined, there has been an increase in the prominence of boutique studios such as CrossFit and SoulCycle.

According to a study conducted by Harvard Divinity School, many of these boutiques are popular among millennials because of the camaraderie and community offered, when compared to the more individual experience of a gym membership.

With all of these different factors shaping the consumption factors of millennials, there is one main takeaway: millennials value experiences over goods. In keeping with this mindset, millennials are willing to spend money on wellness as a daily pursuit. As retailers adapt to the increasing number of millennials coming into their spending power, wellness is one aspect that they must consider. Contrary to the beliefs of older generations, millennials aren’t killing the American Dream; they are simply changing it to suit a broader, more holistic standard of well-being. ■

“Millennials are the first generation with the ability to be exposed to new and diverse lifestyles on a massive scale.”

65% of millennials describe fitness tracking as important

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“I love the transformative nature of technology and I love the disruption of technology. I love the energy, the creativity, and the speed at which it operates.”

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Business Today: Could you tell us a little bit about your background? What kind of skills or insights did you gain from working with Nastech and Reuters before taking the helm at eBay in 2011?

Devin Wenig: A common theme throughout my career has been the love of technology and its applications to solve issues and make an impact on the world. I started in the biotech industry briefly, at Nastech, and I ended up being the CEO for a year.

I realized there that healthcare was not my passion, but technology was. I then went to Reuters for quite a few years. I spent a lot of time working on technology-related products at Reuters, passionately, until I became the CEO of that business. Then in 2011, eBay reached out to me and asked me to come out. I really thought it was the culmination, in many ways, of my career, because in Silicon Valley, eBay was the equivalent of the Super Bowl for any tech executive. It has been a real privilege to be able to come out and lead eBay, and that’s what I have done for the past six years.

BT: What is it exactly about technology that you find so much more attractive than the healthcare industry?

DW: I love the transformative disruptive

nature of technology. I love the energy, the creativity, and the speed at which it operates.

I personally am a builder, and as a CEO you have to manage, but what fuels my energy and passion is building things. I’m kind of an engineer at heart, and whatever the application of technology to build things that people love, great products, or early-on a cure for a disease, or whatever it might be. I don’t lead companies for the sake of leading them.

I only want to lead a company that I love where I’m passionate about what they do, and generally that involves product-based companies. It is ultimately the passion for these tech-enabled products that ties one’s career together through the industry, and this is what I love to do.

BT: Being millennials and growing up surrounded by the Silicon Valley start-up culture, many students are considering tech as an exciting career option. Do you have any advice for those students pursuing a career in your field?

DW: I would say that it’s really important for students to understand what drives them.

There was a period when a lot of students aspired to go to Wall Street; some still do, and there’s nothing wrong with that. Of course everyone wants to make money, but

CEO

Devon Wenig monetary incentives should be considered a means to an end, rather than an end in itself.

You should find out what really drives you. A lot of students are similar to me, in that they want to build things, leading many of them to work in Silicon Valley and at large corporations. In this regard, money just accumulates as they work towards their passion, and salary need not be the primary motivator.

BT: “Shifting gears more specifically on eBay, I wanted to ask you a little bit more about your experience there. Over the years, have you noticed any sort of demographic shifts or changes that eBay has gone through, and how active and engaged have millennials been on eBay compared to other demographics and population groups?”

DW: “Historically, e-commerce in general and eBay specifically has been a little bit more male and skewed a bit older, but it has quickly becoming younger and more female driven. In the past we would sell more commodity items like electronics or car parts, and people were skeptical of selling fashion items due to a lack of in-person fitting. As more women and millennials have become comfortable shopping for fashion online, they are quickly becoming a much greater market force than even their parents. As this online-

only cohort ages and gain more money, they will also buy more from online markets like eBay, naturally tipping the demographic scale in their favor.

BT: More specifically, are there any movements or efforts that eBay specifically has been engaged in to try to capture millennial customers?

DW: Marketing has evolved along with our customer base. On marketing, everything from our brand to the way we show up online to even the way our homepage looks, is very targeted at the evolving demographics of our customer base. If you look at our new advertisements, they’re very oriented to a diverse group of shoppers, including young people, in emerging categories like fashion. There’s no doubt that we’re looking toward the future as this enormous group of young people forms a key demographic for online shopping. They’re our future, so we are absolutely building our products and our marketing towards that.

BT: Supposedly, a growing trend among millennials is their concern with lifestyle and experiences, rather than physical products.

They’re rapidly adopting of principles of the sharing economy. How do you think that the words ‘lifestyle’ and ‘well-being’ fit into the

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200 million people shop with eBay each month

“Millennials don’t necessarily value expensive brands, they are willing to try brands that are functional, they’re willing to try products that are cost-effective, they’re even willing to participate in the re-use economy.”

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millennial customer?

DW: I think it’s true that millennials value experiences, but it’s also true that millennials buy a lot of products. I think that they are more willing to experiment with different kinds of products, and that really suits us very well. Millennials don’t necessarily value expensive brands: they are willing to try brands that are functional, they are willing to try products that are cost-effective and they are even willing to participate in the re-use economy. Look at our business: we now sell mostly new items, but we are also still the world’s largest marketplace of secondhand items. In particular, we have a huge fashion business in secondhand articles, and millennials are really willing to participate in this market when many older consumers are not. This value-oriented sharing economy not only saves money, but helps the environment by cutting emissions. In many ways, eBay invented the sharing economy - before house-sharing and ride-sharing, there was object-sharing, and that really was eBay’s first business.

BT: The point about the environment speaks to me really strongly, because I love going to secondhand retailers, whether it’s a thrift store or eBay or other sites that are popping up, being a conscientious and green consumer is also really important to a lot of young people, and buying secondhand is a big part of that. So when we were around in San Francisco, we saw a lot of your “fill your cart with color” campaign, and we saw that it expanded to the UK recently to encourage shoppers to celebrate their individuality. So could you tell us a bit more about the campaign and the inspiration behind that marketing?

DW: “We’re doing more brand advertising, historically we haven’t done as much. We’re telling eBay’s story, and not just selling individual items now. We’re a big company with nearly 200 million customers, but we want to have a billion. Even though almost everyone knows eBay, not everyone is aware of what we do today, so telling that story through all channels is important. The campaign itself is about how we want eBay to be distinct: we don’t follow anyone else’s playbook, and we think that a lot of digital shopping has gotten monotonous. This “press a button and receive a beige box” process has become too commoditized rather than a joyful exploration of shopping. We think that eBay is a more discovery-based marketplace where you get incredible items, sometimes unique, at incredible prices and that’s the story we tell. People that want to shop individually

don’t want to be drones following the latest trends and really want to express themselves through the things they buy or even the way they buy it. For these shoppers, eBay is the perfect place, and those people comprise the 200 million who shop with us every month.

We march to our own drum and tell that story of individuality, which sends a strong message to the highly individualistic millennial generation. They don’t want to be the same as their parents, friends, or even their friends: they want to express themselves and be unique. And that is exactly what our business is about.

BT: eBay’s business model certainly seems to be a great platform for self-expression.

How is eBay combating the monotony of the online retail business and remaining a primary source for online retail? Specifically, how are you differentiating yourself from all of the other sites that are in a similar space?

DW: We remain one of the biggest e-commerce sites in the world. To me, eBay’s success comes from a relentless focus on the customer and customer experience. As long as we have incredible things to sell at incredible prices, both commodities and unique items, shoppers will come to shop at eBay. However, we must prioritize crafting a great shopping experience: simple, beautiful, and personalized, with a seemingly bottomless inventory that is always unique and inspiring to browse. There are 25,000 people in this company that wake up every morning worried about whether we can meet the demands of our consumers, and because of this, we are much more focused on our own consumer base rather than what our competitors are doing.

BT: Let’s change track a little and talk more about the tech side of your business. How has the rise of new methods of payment ranging from Venmo to cryptocurrency influenced eBay’s business, if at all? Have you perceived growing demand for anonymity or increased security with your online transactions?

DW: There’s always existed a need for anonymity and security, and that’s what intermediate marketplaces like eBay provide. I am a believer in cryptocurrencies, and I do think they will have an important role to play in the future. The volatility of cryptocurrency prices currently presents an obstacle to its integration in e-commerce. You could pay someone on eBay with bitcoin, and the time the payment reached the counterparty, the price might have moved 20%, and there’s currently no effective way to hedge that volatility. While I definitely think there will be a role for cryptocurrency in the future,

I don’t think it’s had a very large impact at this point on eBay or Amazon or anybody else. Potentially more interesting than the cryptocurrency is the blockchain that they are built on. The blockchain itself is a great innovation, and provides public record of ownership. We’re looking really carefully at how that might work, and particularly in certain categories where tracking ownership might be important, like art or high-priced automobiles. Having a public block chain that shows the record of ownership could be very interesting.

BT: While it’s obviously important to keep your future plans under wraps, could you give some insight about the future direction eBay will be taking, especially as the company tries to distinguish itself in e-commerce?

DW: We’re very focused on emerging technology platforms, and being among the first to adapt them to global commerce. eBay was the first company to allow people to sell things on the Internet. eBay was the first for mobile commerce, and we’re now working on a few really profound platform changes like AI and even VR and AR. I’m not sure if people fully see that yet, but eBay is making significant investments in machine learning and artificial intelligence because ultimately, the ability to highly personalize the experience for our 200 million customers is incredibly important. Even platforms like augmented reality seem rather sci-fi now, but there will be very real and practical uses in commerce in the near future. AR and VR will introduce the ability to see things and immerse yourself in them, and experience shopping in ways that really no one has been able to do digitally before.

BT: That will be a revolutionary development, if it happens in the next few decades.

DW: Look at what we’ve already done with Stubhub since our acquisition. We’ve built an amazing virtual reality application that is already getting a lot of usage in just the single year it’s been out. Using the application, you can walk right into the stadium and sit in your seat before you buy it, and look around to see the view. Customers love that, and it’s just a little sample of what’s coming.

BT: As a law school graduate who’s taken quite a varied career path, do you have any advice for college students today on how to choose a career to dedicate themselves to?

DW: I think the most important thing is that you explore and try different things. That’s what I’ve done, and I’ve never known anyone that had a career plan that worked out exactly the way they thought it would. The

people that I know that are the happiest are the people who tried different things and ultimately found what makes them happy.

People that are happy and passionate about what they do generally have great success in their careers. You may never know that unless you explore and try different things so I think my best advice is for everyone to find what they love and are truly passionate about.

BT: Apart from tech, what inspires and drives you on a daily basis?

DW: What really inspires me is that the corporate entity can make human lives better.

“The volatility of cryptocurrency prices currently presents an obstacle to its integration in e-commerce.”

When we look at all of the employees working on building this platform, entrepreneurs who use our platform, and consumers that shop with us on a regular basis, these are not simple numbers and statistics. These are real people, small businesses, and entrepreneurs who are supporting their families and making a living off eBay. We’re a very purpose-driven company, and although we are technology-oriented, our core inspiration comes from the people who support us and the difference we can make to their lives. The application of technology to solve pertinent human problems is an incredible mission, and it’s very unique to our company. This is certainly why I’m here. ■

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Christene Barberich Editor-in-Chief of Refinery29

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Business Today: Tell us a bit about your background. After working at publications like CITY Magazine, what led you to co-found Refinery29 and how has the brand’s vision changed from its inception?

Christene Barberich: In 2004, when I first met Philippe and Justin (Piera and I had already worked together at CITY), the industry was already in a state of upheaval— social media was beginning to show its power and capabilities and e-commerce was also on the rise. It was just a really exciting time in digital media, and I was interested in learning how to adapt my skills in storytelling to that space.

BT: How do you and your editorial team make sure Refinery29 is always up-to-date with current trends and movements?

CB: That all comes down to the editorial team—they’re the ones tracking the news cycle and paying close attention to the conversations and reactions happening in real time when it comes to information we know is critical to our audience. I offer guidance, feedback, and occasionally, editing when it comes to notable pieces we know are going to reach a wide array of users. But I really defer to the team and our excellent editorial leadership for dialing into the news and ideas that make sense for R29 and knowing exactly how to translate those opportunities into unique, engaging stories, and, ultimately, time well spent for our readers.

BT: What factors do you think contribute to millennials being more concerned with buying “experiences” rather than “products”?

CB: I think that observation is a testament to millennials, but really comes down to everyone feeling overwhelmed by choice online— the lean toward experience over product is, to me, evidence of the value and quality of life people crave. They don’t just want stuff, they want special things, tools, and experiences that allow them to better connect with their ambitions and identity. Experiences offer a deeper payoff; it’s not just transactional—it’s potentially life-affirming.

BT: How does Refinery29 use audience insights to its advantage? For example, how have you tweaked content based off consumer behavior and feedback?

CB: We’re constantly in conversation with our audience -- they are our lifeblood, our first line of defense, and our biggest and most engaged focus group. Audience insights plays a huge role in our content strategy -- a great example of this would be The Money Diaries, our editorial series that gives a peek into how real women spend their money over a week. We have such an engaged, loyal readership around that franchise — one of our most successful to-date — and we have an ongoing dialogue with them — via email, Facebook, and the comments section — on everything from the subjects they’d like to see featured more regularly to the publishing cadence of new entries. It’s also all user-generated content, so it’s literally powered by our readers and gives us real time feedback on what topics they want to hear about.

BT: What is the target demographic for Refinery29?

CB: Our main demographic is women 18-34, so understanding millennial women has become one of our core principles— however, we have a fast growing Gen Z audience, thanks to our expanding reach, especially on Snapchat. We’re learning a lot from that demographic from our research and interaction through great video and content experiences.

BT: As a Creative Writing and Visual Arts major, what led you to become the business woman that you are known for today?

CB: Being drawn to writing and visual arts as a college student was an early indicator of my entrepreneurial aspirations. I’m constantly motivated by new ideas and confronting what is possible. I’ve never been someone who adapted terribly well to rules and tradition, which is probably why I’ve always been drawn to startups and visionaries who take those kinds of risks. To me, it’s not just a business or professional pursuit: being cre-

“Brands [are] finding their voice; Understanding that to connect with a new younger consumer means knowing how to talk to them, not just with products, but with purpose.”

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Photo from 29 Rooms by Refinery 29

“Fashion and how a person uses it to explore their own identity isn’t just an important practice, it’s an art form”

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ative and enterprising is how I live my life.

BT: What is your favorite part of what you do and where do you get your inspiration?

CB: I most enjoy working with the various content team on big tentpole programs like our 67% Project, our initiative to promote body positivity and plus-size visibility in the industry. Projects like these not only help shape people’s perceptions, but have the potential to shift an entire industry, and we see our content as a driving force of change, both personal and societal. Working with our teams that build these content programs is always incredibly inspiring to me, especially so when we see the reactions from our audience.

BT: What are the things that drive you every day? What do you hope to bring to your readers through Refinery29, your social media, and the UnStyled podcast?

CB: I am, by design, a hopeful person, and if the conversations we spark in the Refinery29 universe can shift a dialogue in a new direction, challenge stigmas or stereotypes, open minds, and bring fun and sense of connection to people, I am thrilled. It’s simply not enough to just make content: anyone can do that, and many already are. Our goal is not simply to generate clicks, but to drive real impact that can improve and enhance women’s lives and I believe that women need Refinery29 now more than ever.

As for the UnStyled podcast, it’s my greatest hope that these conversations I have with women I admire can make our listeners feel more connected to their own experiences, to feel more empowered to take risks and claim their own expression of identity. I was so tired of fashion and personal style being equated with superficiality and materialism!

Fashion and how a person uses it to explore their own identity isn’t just an important practice, it’s an art form. I wanted to host a series of talks that touched on that within the space of ALL the incredible things these women do, from psychology and filmmaking

to politics and body positivity. Style isn’t just about clothes, it’s a reflection of ALL the things that make these women’s lives so fascinating.

BT: What does the future of the business of fashion look like in your mind? How have you seen the two merge and in what ways do you see them converging moving forward?

CB: The most important shift I see happening that will continue to happen is brands finding their “voice.” Understanding that to connect with a new younger consumer means knowing how to talk to them, not just with products, but with purpose.

BT: What are the biggest challenges you’ve encountered in leading a women’s media brand?

CB: I don’t think the challenges we’ve faced are different than anyone else trying to get a business off the ground. Our biggest challenge is not just being, but staying the best at what we do. That means keeping close tabs on what our audience needs and wants, and tempering that with a strong and ever-adapting content vision. Balancing the two is always the key.

BT: What advice do you have for undergraduates who have a passion for beauty and fashion, and strive to be taken seriously in the business world? What would you say to those that don’t consider fashion and beauty “serious” business topics?

CB: Anyone who automatically assumes a fashion or beauty idea/interest isn’t serious doesn’t know very much about the industries. Just look at Glossier, Reformation, or any of the most innovative fashion and/or beauty companies literally laying the foundation for what all innovative brands and businesses can become. There is so much opportunity to impact these industries, not just for consumers but for the planet. Most importantly, undergrads should know that from where they stand, anything is possible.

You just have to get out there and do it...and then KEEP doing it. ■

uring the past decade, the emergence of boutique gyms like SoulCycle, Barre, Crossfit have taken over major cities all over the world, while healthy foods like acai bowls and cleanse juices have risen hand in hand alongside this fitness craze.

Yet, as great as a focus on health may sound, it takes a certain amount of income to afford the ins and outs of such a lifestyle. So, how much does it actually cost to afford these ‘healthy’ products, what are you getting for your money, and is such a lifestyle sustainable for those from more humble means?

The first component to this lifestyle would certainly be none other than the gyms where people spend a good portion of their day. In terms of the economics of gym classes, Pure Barre, for example, costs 225 USD for one month unlimited membership. Given that each single drop-in class is priced at $23, any unlimited member would be getting their money’s worth by going at least once every three days, with the ‘savings’ from that membership increasing for every additional session attended. If someone went all 30 days in a month, each session would only cost $7.50 compared to the original $23 price tag! Yet, just as gym attendance spikes immediately following New Year’s Resolutions and quickly decline within a matter of weeks, economic factors can only go so far in ensuring attendance, even if the price commitment has been made.

It’s no secret that most people enjoy the

D

company of their friends and peers in group gym sessions, and this can be a major motivating factor in ensuring continued attendance. Through series of ‘tucks’ and ‘lifts’ in Barre classes, sweating with the instructors at SoulCycle, and training military-style with other ‘warriors’ at Crossfit, one can feel like he or she belongs to that group. Over time, one becomes connected with new friends and acquaintances, building up social capital and becoming part of a small tight-knitted group that motivates each other to continue showing up to classes. Even in college where university students have free entrance, having friends who also work out is key to holding each other accountable for attendance.

Without such sociological motivations, individuals may quickly finding themselves without consequence for missing a day, which may quickly snowball to skipping for a week to a month to never going at all.

So, how much does cost actually factor in for those who are interested in being part of this semi-exclusive boutique gym clique? From a geographic standpoint, these gyms are mostly located along the shoreline, namely well-off regions where people are driven to stay in shape. In some of the most boutique friendly cities we see per capita incomes far higher than the national average of $45,016: Virginia Beach ($61,436), South Hampton ($77,130), and San Diego ($63,400), while the average boutique gym member earns over 40% over the national

“Over time, one becomes connected with new friends and acquaintances, building up social capital and becoming part of a small tight-knitted group”

by Angela Wang

Stay

WEALTHY HEALTHY

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average. Currently, 23% of millennials have bought into the social opportunities and individual attention that boutique gyms bring, yet this leaves a further 77% that are not quite convinced.

For many individuals, the prices of such have prevented them from being the best option. Given a national minimum wage of $7.20, the $23/hr price tag on a Barre class, or a $32/hr cost for SoulCycle could cost half a day’s worth of salary (before tax!).

Although other free options such as outdoor biking, jogging, or hiking exist, it is not necessarily the direct cost of exercise that holds people back from working out. Even with the advent of home based workout instructions, ranging from online video tutorials to workout apps such as SWEAT require no more than a yoga mat and two dumbbells to exercise, the biggest limiting factor remains time.

Those earning six figures can much more easily afford to take an hour or two of free time to exercise, while those working two jobs and taking classes may barely be able to find time to sleep, much less go to a gym.

Yet, as important as working out is for overall health, the saying that fitness is “80% diet and 20% exercise” may hold quite a bit of truth, even if it should be taken with a grain of salt. In recent years, the demand for organic and non-GMO foods have soared in recent years, with stores like Whole Foods making substantial market share gains. Furthermore, the concept of “farm-to-table” restaurants that use as many locally grown ingredients as possible have rapidly taken off, with a notable at-home example being Agricola Eatery right here in Princeton. According to owner Jim Nawn, the ideal meal will provide “the most nutrients for the fewest calories”, and this quality certainly comes at a price: an exquisite local salad can cost $15 while a meat-based entrée may set you back $35. Although a $50+ dinner is not for everybody, Mr. Nawn believes that such meals are a lifestyle choice, and organic, freshly made, farm to table meals can be a go-to option for a health-conscious crowd.

Here, we can once again see the striking inverse relationship between calories and price. While a box of chicken nuggets at McDonalds can provide 590 calories for a mere $4.49 and fill up your stomach, those

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with means would much prefer to diet with a $10 bottle of cleanse juice that provides 230 calories. Given this trade off, where can lower-income individuals go to find healthy food without breaking the bank? A primary alternative lies with buying healthy groceries and preparing meal: instead of buying a few high quality organic items, even regular supermarket fruits and veggies would be far healthier than fast food. Compared to a single farm to table meal at a restaurant that may comprise half a college-students average shopping trip bill, buying higher quality ingredients from stores like Whole Foods can offer a more affordable alternative while remaining healthy. Following the Amazon acquisition, prices at Whole Foods have dropped 25% nationwide, making its fare more accessible to many individuals. In a shopping experiment at Whole Foods and Trader Joe’s by blogger Kathleen Eklins, the same grocery basket (including bananas, avocado, kale, etc.) cost $41.45 at Whole Foods compared to $37.15 at Trader Joe’s.

Although Trader Joe’s was still cheaper, Whole Foods only cost marginally more and was within a comparable price range rather than being a tier unto itself. At the same time, the increase in health-related websites and blogs has allowed for do-it-yourself options for healthy meals, snacks, and desserts using simple ingredients, allowing for delicious home-made and healthy meals.

Through the health revolution, there are more opportunities than ever for people to exercise and eat well, both with luxury options for the 1% as well as low cost alternatives. With low cost gyms, healthy grocery stores, and DIY exercises and meal preparation available, it certainly does not take a great degree of wealth to be healthy.

Yet, the key issue that remains is time and convenience: those with wealth have no qualms dropping a substantial sum to stay in good health, while those who would rather prepare their own meals and workouts for a cheaper price must also invest more time. Although there is much work to be done before there is true equality in opportunity for healthy living, at the very least we can safely say that healthy living is truly in reach for anyone, given enough time investment. ■

ONE DAY OF WORK at MINIMUM WAGE:

$58 =

10.3 ONE MONTH of THE AVERAGE GYM MEMBERSHIP EQUALS ONE FULL DAY’S WAGES.

DAYS

=

20 CLASSES

=

ONE MONTH

=

ONE MONTH

at SOUL CYCLE

OF WAGES

5.2

DAYS

of CROSSFIT

OF WAGES

3.9

DAYS

of PURE BARRE

OF WAGES

2.6

DAYS

=

ONE MONTH of YOGA CLASSES

OF WAGES

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ADDITIONAL FEES MAY APPLY

by Gladys Teng

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he first changes are always small: snacking on fruit at night when pizza cravings kick in. Go jogging for twenty minutes once a week. Spend Sunday afternoons working on a personal goal, a project you keep putting off, or a hobby that takes your mind off the mundane. Invest time and money into that project to make it grow. Buy a gym membership. Start waking up an hour or two earlier. Eat organic. Enroll in courses, seminars, or even get another degree. Be philanthropic and donate to causes. Travel the world. Hire a life coach. Go to spa and spirituality retreats to align your chakras, cleanse your body of toxins, and receive fullbody wellness treatments. According to the new-age market of “self actualization” consumption, signing up for and buying these goods will grant you a noticeably improved quality of life.

Someone like Abraham Maslow, the psychologist known for his theory of humans’ ‘hierarchy of needs,’ might say these actions aid one’s progress toward self-actualization, the ultimate realization of one’s potential.

Unlike many of his peers who focused primarily on mentally ill individuals, Maslow preferred to study those who he believed were living their lives to the fullest, endlessly striving for self-improvement and fulfillment.

To Maslow, the biggest question to ponder was why only some individuals were able to reach this level, even after all their lower prerequisites on the pyramid, such as food, shelter, and emotional well-being have been met.

Once merely an abstract concept in psychology theory, the term self-actualization today describes an entire lifestyle. The people who adopt it share not only character traits and habits, but also consumption patterns. The acronym “LOHAS” (Lifestyles of Health and Sustainability) refers to the demographic that corresponds to self-actualizing consumption, with individuals spending and consuming in a way that is aligned with their personal life path, alongside their values and beliefs. Such consumers tend to spend more on personal development in areas such as life and career coaching.

When shopping for groceries, individuals who prescribe to LOHAS are more likely

T

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to buy local, non-GMO produce. In other purchases, they tend towards brands that are known for ethical sourcing and are transparent about their values.

In this regard, such a lifestyle can almost be recognized as a luxury good in itself, despite its intangible nature. However, the existence of an entire industry associated with LOHAS consumption can also be problematic on multiple levels. For one, it makes self-actualization seem like a rather pricey endeavor. According to Noomii, a directory for professional coaches, the average hourly cost of a life or career coach is between $75 and $200. LOHAS consumers are also willing to pay a premium for organic food and sustainable products. Regardless of intent, such purchases are inherently forms of conspicuous consumption: just as luxury cars, handbags and clothing signal the wealth and status of the owner, LOHAS purchases may indicate that the consumer is humanitarian, socially conscious, and self-actualized. Yet, because LOHAS purchases have such positive connotations, the lack of such purchases may not solely be construed as a lack of wealth, but rather a categorical lack of social awareness.

From here, the natural question to ask is whether self-actualization actually has to be as costly as it appears. Given the prerequisites of Maslow’s hierarchy of needs, lower level needs must be satisfied before higher level ones can even be considered. At the very baseline needs of food and shelter, it seems obvious that income would be directly correlated to satisfaction, yet once we move to mid-level needs such as safety, security, community, and self-esteem, the relation is less clear.

When considering purchases that bear intangible benefits such as emotional comfort and intellectual stimulation, consumption behavior can vary tremendously from person to person. Although having a baseline level of wealth to satisfy basic needs are certainly crucial, even the most tired cliche of “one cannot simply buy happiness” once again rings true. Although a lack of worry for material difficulties may make it easier for one to pursue his or her passions, the

steps towards fulfillment are inherently tied to one’s own goals and personal development.

The concept of purchases tied towards self-improvement is hardly a new idea: the entire genre of self-help media ranging from books to videos to courses by self-proclaimed gurus have existed for decades. As people move from self-help to achieving fulfillment, the market has responded with a plethora of products commoditizing the concept of self-actualization, with a price tag to match. Yet, just because a product exists doesn’t mean that we certainly need it to achieve a better life. Personal development means just that: it has to be personal and will be different for each individual. As soon as marketing enter the mix, corporations and popular culture may attempt to standardize a broad set of values into a singular mold of what can make most people happier, at least those who can afford it. For some, using money to buy their way out of problems may seem like a simple solution, and if it works for most people, perhaps it can be an easy way out.

At the end of the day, what can we truly learn about how to lead a better life? There may not be a one-size-fits-all solution to this problem, but there are certainly good places to start. There may not be need to join that boutique gym, hire a life coach, and take additional courses if they aren’t what make you happy, but they may not be a bad place to start. And if you feel the strain on your wallet, non-monetary alternatives certainly exist and could even be better for you. Some may enjoy the community culture of the gym, but you might prefer a walk in nature instead. You may enjoy the presence of friends and family, yet sometimes you may want to make some time for yourself as well.

If you don’t like a crowded classroom, consider going to the library to browse unfamiliar books and pick up a new subject of interest. Maybe even reach out to a potential mentor who could provide life guidance without monetary incentive. Realizing your potential may be priceless, but the moment it begins to strain your wallet, perhaps consider approaching it another way. ■

“Realizing your potential may not be priceless, but the moment it begins to strain your wallet, consider approaching it another way.”

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Mike McMullen CEO of Agilent Technologies

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Business Today: Can you speak a bit on your background and the career path that eventually led you to Agilent?

Mike McMullen: I grew up in Newark, Delaware and went to the University of Delaware for my undergraduate degree.

Growing up in the region, landing a job at DuPont was the ultimate goal, the equivalent of landing a job with Google or Apple today.

Yet, once I actually began working there, I realized the culture didn’t really match me: there were many solid values and a focus on integrity, but there was too rigid of a hierarchy to really feel like part of a team or family. Once I saw indications that senior employees began leaving, I took the opportunity to work for Hewlett-Packard for two years before I went back to school to get my MBA in Finance from Wharton. After completing this program, I had an inkling to go into investment banking or consulting just as many of my classmates had planned to, but I felt that I wanted to be part of a company and build something I can call my own.

I turned down my opportunities in finance and went back to HP for a few more years, including a five year stint in Japan before eventually moving to California as the CEO of Agilent. I suppose the main theme of my career is uncertainty, particularly in not taking the conventional path and finding my own way around.

BT: It seems that you certainly took quite a few risks along your path. Did you ever have any doubts or question yourself before making some of these decisions?

MM: I don’t believe that I’m reckless, but I do want to take calculated risks where I can.

I don’t want to sit around and wait for things to happen to me, but I also don’t want to try and plan out every single tiny step towards a goal. It’s important to have a game plan, but thinks will never happen exactly the way you want them to. If you told me when I was a college student in Delaware that I was going to be the CFO of a company in Japan, I would never have believed you. But

I somehow ended up in that position, and I did my best in transforming the business and making connections with people with the opportunity I was given. Afterwards, I would take this experience and move on to the next stage in my life. Life happens one step at a time, and I could never reach where I am not had I not had these experiences, so I have no regrets about any of the detours I took along the way.

BT: One of the key factors towards building a successful team is to have a positive corporate culture, and I realize you mentioned that regarding the difference in DuPont and HP. Can you elaborate a bit on how this came into play regarding creating the right atmosphere with Agilent?

MM: One of the first things I learned in working as CEO is that a lot of time, people tell you what they think you want to hear rather than what I actually need to hear. I tend to spend a lot of time talking with people in a casual environment, doing my own surveys, and building personal connections with the people I work with. Often times, the best way to get an honest opinion from people is to put them at ease, sort of an old HP style with an employee thank-you barbecue with plenty of food and beer. Aside from this casual approach, we definitely focus on having open communication all throughout the company. The classic C level boardroom style of management is no longer effective, and we cannot afford to be walled off from our employees. Every six months, we have our team submit leadership surveys and we invite people to send in written comments to me. It is far too easy to become disconnected and delusional about the state of the company from these conference rooms, and we have to be very down to earth in managing situations. Our people are very smart, and I have to be willing to commit time to visit them, ranging from our engineers and manufacturers to our sales people and customers.

BT: As a follow-up to your leadership style, how have your colleagues or mentors

“One of the first things I learned in working as CEO is that a lot of time, people tell you what they think you want to hear rather than what I actually need to hear.”

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We no longer live in a society where it is expected for you to stay with a company for thirty years, so go out there and explore everything there is to offer.

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affected your views on how to run a corporation?

MM: One of my greatest mentors was Chris van Ingen who unexpectedly passed away just a few weeks prior. He was an amazing business leader and executive at Agilent whom I worked with for the greater part of 20 years. Interestingly enough, he followed a similar path as me: we worked together at HP, and while I was heading sales in Japan, he had become the global sales manager.

When I was most lost and trying to figure out my next step post-MBA, he was the one who stepped in, instructing me to not simply serve as an advisor, but to become the one that would lead the team, and ultimately the company. His advice would steer me away from finance and back into the core business that I care most about. Without him, I would have remained a back-office finance guy in a technology business that glorifies the R&D team, and I would never have been able to become CEO. BT: A major theme you had talked about was regarding the unconventional paths that you had taken. Was there any guiding compass that you followed in choosing this route?

MM: I suppose the main driving question has always been “can I learn something new from this?” I’m a naturally curious person, so I am drawn to anything that I find interesting, where I can potentially make a difference. At the start of each one of my jobs, I was definitely in a completely new environment with new things to learn and experiment with, but once I had learned the job and found limited room to make a difference, I would seek out new and better opportunities. In each place I have ever worked, the key was that I wanted to be able to look back on my work and say “I picked the right

place, and I am very glad to be here”. If you don’t enjoy what you do every day and are simply going through the motions to get by, you can never expect more than mediocre performance.

BT: A lot of current college students may assume that they have to do two years in finance or consulting before moving on with their lives, which from your perspective may not be the correct option. Do you have any advice for these students on perhaps taking a different path?

MM: I think that first time for each experience is everything. The main reason I was able to become CEO was because I had worked in so many different companies, regions, and types of work, and ultimately found my place in solving problems through management. We no longer live in a society where it is expected for you to stay with a company for thirty years, so go out there and explore everything there is to offer. Regarding investment banking, my son actually decided to follow through with taking a two year analyst program before potentially going back for an MBA. For some, perhaps the well beaten path is the correct one, and you don’t need to be a contrarian to succeed, but if you know what’s important to you and have found a path you wish to follow, don’t be afraid to pursue it.

During my time at Wharton there were two distinct groups of people: those who previously worked in banking and couldn’t wait to get out, and those who couldn’t wait to start their career in finance. Yet, neither choice is right or wrong: there are plenty of options and regardless of the detours along the way, as long as you have your own priorities, you will continue learning and someday find your way to success. ■

QUINOA, CHICKPEA, & ASPARAGUS SALADS IN CHENGDU

by Bhaamati Borkhetaria

BUSINESS TODAY FALL 2017

63

t seems that whenever millennials set foot, quinoa,whole grains, and flax seeds seem to follow. Even across the ocean, similarly millennial friendly fare has appeared all across Asia, even in the culturally isolated communities of Chengdu, China.

Chengdu is a major city in a Southern province of China, known for its gayfriendly bars, hipster fashion and growing community of expats. Yet, unlike Beijing or Shanghai, non-Chinese foreigners are still a novelty. Chengdu has yet to be “discovered” by the masses, yet given its rapidly growing economy, foreigners are sure to follow.

A large portion of expats currently residing in Chengdu are generally teachers in flourishing international high schools or professors in the local colleges, while other foreigners with a less permanent foothold in China often teach English at local schools for a year or two before moving on. As costs of living here are rather low, these foreigners have significant spending power in the city.

In a city best known for its spicy Hot Pot and Mao Cai stew, healthy dieting would seem to be the least of the residents’ concerns, yet expat millennials have nonetheless established a market for the health food industry here.

Startups like GoVegan have sprung up in Chengdu to meet this demand. In an interview with Asher Marshad, one of the founders of GoVegan, he discussed the rise of healthy eating in Chengdu, and the appearance of Western food trends.

“Millennials often come to China and believe they can follow the diets they followed back home. Unfortunately they often encounter the language barrier and discover that the Chinese diet is very different

I “In the US, veganism [and] vegetarianism are getting more popular and in China it is slowly starting to become a trend”

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from what they were getting back home.

So, many end up going to places they are familiar to them, such as McDonalds, KFC or Pizza Hut. Given that so many millennials are more aware about their health, the appearance of vegetarian and vegan diets have quickly gained popularity. From here, GoVegan is able to provide a great option for anyone who wants to eat healthy while living in Chengdu. ” GoVegan supplies and delivers plantbased products around China, with products ranging from dairy and meat alternatives to nuts, seeds, grains, legumes, fresh meals, and even non-toxic home care products. The company is something of a super store where customers can order at a “one-stop-shop” for all things vegan and healthy. This company was co-founded in Chengdu in 2015 by Asher Marshand and Zaccary Atlan, both non-Chinese entrepreneurs hailing from Israel and France respectively. When asked on how this idea was started, Marshand shared the following anecdote: “Zac and I were discussing nutrition. As a body builder, I tried all kinds of diets that were supposed to be optimal until I discovered the plant-based diet or vegan diet. By far it was better than any other diets I had tried. So, Zac challenged me to sell this diet to the people of Chengdu, and the rest is history.”

Marshad and Atlan have been met with success on their endeavor: after two years, GoVegan is a profitable company with over five thousand people subscribed to its WeChat feed, China’s primary social media platform. According to Marshad’s analytics, eighty-five percent of their consumer base is comprised of expats and foreigners, which is

hardly surprising given that the entire business is conducted in English instead of Chinese. Yet, Marshad believes there’s plenty of room to grow, reinvesting every cent of profit back into the company to expand production and marketing. In the near future he hope to open “grab & go” locations which would make it even more convenient for expats and foreigners to have immediate access to all the different products that GoVegan provides.

For those who are less inclined to cook their own meals but still want to eat healthily, Healthy Gourmet offers freshly prepared hot and cold meals delivered directly to consumers. Founded by the Taiwan born and Philippines raised Han Lin, Healthy Gourmet is also a foreigner to Chengdu. Founded in February 2017, the company has already taken off with twenty five thousand subscribers to their WeChat account and nearly 50 meals delivered per day. In addition to delivering food, Healthy Gourmet also has a restaurant style venue for anyone hoping to come by for some delicious vegan quesadillas or sushi bowls.

During my time in Chengdu, Lin introduced more and more vegan options into the menu which makes it an attractive option for a vegetarian millennial such as myself. My friends and I could always rely on Healthy Gourmet to deliver something to offset all the hot pots and noodles we had consumed the previous day. The fact I had personally found out about them through my own friends lends credence to Lin’s assertion that the company primarily spreads through word of mouth, in addition to its WeChat feed, which also serves as the app to make an order.

Even in the city of Chengdu, GoVegan and Healthy Gourmet are hardly alone

in delivering healthy eating alternatives to the ath-leisure obsessed millennial market.

Many other restaurants run by and marketed to foreigners in Chengdu also champion the “green” and the vegan lifestyle, posting to WeChat groups with hundreds of locals. Recently, restaurants like Munchwich or Safari, both well-established within the Chengdu expat community, have offered promotions on the vegetarian and vegan options on their menu in an effort to appeal to same key demographic that both GoVegan and Healthy Gourmet are targeting.

Yet, despite the success that such companies have had in delivering healthy eating options to Chengdu, the future of such a trend remains uncertain. It’s no secret that restaurants catering to “Westerners” in Chengdu have come and gone, with Tripadvisor listing countless restaurants that had been thriving just months prior disappear seemingly overnight. One day, the hole in the wall will be a whole food store and the next it’ll be refurbished into a restaurant.

It remains to be seen if these companies can continue thriving if they market only to traveling millennials and expats. Whether travelling millennials and established immigrants will continue to spend money on relatively expensive food items from “healthy” sources is a toss-up. After all, when the millennials leave their summer internships or their two-year English-teaching contracts, who will be left to buy the quinoa-chickpea-asparagus salads for forty yuan (~$6)? Ideally, alongside the millennial and health-conscious foreigners, native locals may start subscribing to these institutions, although these companies had better start putting up flyers in Mandarin as well! ■

25k subscribers to the Healthy Gourmet WeChat account

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