MONEY MAY 2015 ISSUE 30

BUSINESS | LIFESTYLE | DESIGN

THE RETAIL ISSUE ISSUE 30

POWER OF PURCHASE INTERVIEW:

GRTU PRESIDENT PAUL ABELA

TOTAL SHOPPING EXPERIENCE RETAIL START-UPS Money / Issue 30 - 1

2 - Money / Issue 30

Money / Issue 30 - 3

WELCOME

CONTENTS Can shopping be considered a hobby? It's the kind of question that isn't really one because you can answer yes or no and you will be correct in both instances. It's like jogging, no? You huff and puff along the Sliema front because you enjoy it as a hobby. But it's also a necessity: you need to attack those stubborn couple of kilos with plenty of will power and quick steps.

THE RETAIL ISSUE MAY 2015

31 FINE TASTING

Sean Cassar from Design Hub Malta gets inspired through the grapevine and designs a space that celebrates wine.

And it's the same with shopping. We all enjoy it, especially when thanks to special discounts, our money goes further that we thought it would. Yet it is also a necessity: we need stuff. And that's the foundation of any economy: people work and earn money and then they spend it.

39 THE GREAT OIL GAMBLE

In this issue of Money, we focus on retail from manufacturing to till.

42 A MIX OF NEW AND SOLD

Are there winners or losers in the oil price collapse, asks Alexander Mangion.

Is Dubai still the shopping capital of the world?

Gone are the days when you could pop something in the window and people would flock to buy it. Actually, I'm not sure that those days ever existed. There has always been a science to retail: from how you display your products to the retail model adopted and what kind of training you give your sales staff.

Nowadays, that science is much more complex. In-store marketing solutions, retail start-ups and POS solutions: these are all tools at retailers' disposal that, if used correctly, can help cut down on operational costs, increase turnover and attract more customers.

These solutions are all geared towards one thing: customer loyalty.

Because it is the trust between retailer and consumer that ensures the eternal cycle of retail. In this issue of Money, we discuss how to build and strengthen this trust.

Given the limited size of the island, competition in Malta's retail sector is cutthroat. However, GRTU President Paul Abela says, by adapting to trends, changing their business plans when and if necessary, and investing carefully, retailers can survive and thrive.

In this issue of Money, we also analyse how Dubai has built and retains its status as shopping capital of the world, explore the luxury market, discuss brand protection and lay out a spread of glittering gifts.

Read on and enjoy.

8 SHOPPING FOR COMPLIMENTS?

It's a dog eat dog situation in Malta's retail scenario. But being sharp and adapting to trends is the only way to compete and grow.

GRTU President Paul Abela talks shop with Veronica Stivala.

11 HACKING THE RETAIL INDUSTRY

Simon Azzopardi meets two local start-ups that are looking to change the retail industry in their own way.

15 KEEP THEM COMING BACK

Invest in customer loyalty: it's worth it. Money boosts sales with a six-step guide to attracting repeat custom.

19 THE DETAIL IN RETAIL

Editor Anthony P. Bernard anthony@moneymag.me Consulting Editor Stanley Borg stanley@moneymag.me Design Roderick Peresso www.peresso.com Printing Print It Distribution Mailbox Direct Marketing Group

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45 THE CARTOONIST OFTHETIMES Steve Bonello's cartoons are a biting commentary, says Victor Calleja.

56 BEHOLD THE BEAUTY

Money will make you fall in love with beautiful things.

A combination of shop design, connecting with customers' emotions, staff training and the right price creates the total shopping experience, says George Larry Zammit.

23 THE POWER OF PURCHASE Chris Mifsud goes beyond the number crunching to get an idea of the real local spending power.

58 A VERY GOOD MORNING VIETNAM

26 BATTLE OF THE BRANDS

62 THE BLUESMAN’S BLOG

Luxury brands will go to great lengths to protect their distinguishing marks, says Dr Doran Magri Demajo.

Mona Farrugia plays Miss Saigon in Ho Chi Minh City.

The Bluesman gets to grips with the weather, presidential hopefuls and police brutality.

Money is published by BE Communications Ltd, No. 81, Howard Street, Sliema, Malta SLM 1754 All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in Money are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration.

4 - Money / Issue 30

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Money / Issue 30 - 7

RETAIL

SHOPPING FOR COMPLIMENTS? It's a dog eat dog situation in Malta's retail scenario. But being sharp and adapting to trends is the only way to compete and grow. GRTU president Paul Abela talks shop with Veronica Stivala.

he majority of General Retailers and Traders Union members have been complaining on a regular basis about decrease in sales and the feeling among business owners of retail outlets is unfortunately more negative than positive.

t

GRTU president Paul Abela does not beat around the bush when describing the local retail scenario. We discuss the recent survey conducted by the GRTU that shows that 40 per cent of retailers reported a drop in business in 2014 when compared to the previous year.

Abela notes how there are a number of problems that these retailers feel have contributed to such a negative outcome. He says these can be divided into two categories: those that the retailers themselves can do something about and those that require government intervention.

One of the biggest problems retailers struggle with on a daily basis is competition. Some feel that the Maltese market is too small for the amount of retail outlets and shopping complexes on the island. But Abela is realistic in his analysis and says that even though it is a dog eat dog situation out there, if you are sharp and willing to change, then you will survive.

"Competition is a daily reality and only the fittest survive. Retailers that have coped and adapted to competition have survived and others that have ignored competition and change have struggled and even failed," he says.

Photo: Jamie Iain Genovese 8 - Money / Issue 30

Effectively meeting constantly evolving consumer demands is an inherent part of the game. The reality is that consumer demands are always evolving and consumers shift their attention and spending to where they feel provides a more attractive retail experience and product.

While a number of what are referred to as traditional shops can still be found, these tend to have a specific clientele and are still constantly losing clients and market share.

"The absolute majority of retailers today have understood that competition is not something that can be stopped and they need to constantly reinvent themselves," Abela says.

Speaking about where the government stands on this, Abela discusses issues such as opening hours.

Things are looking bright as retailers should soon be given more flexibility in their opening hours. What are Abela's views on this?

"The GRTU believes this will help retailers selling different products and services to adapt their opening hours so that they can better cater for the needs of their clients. Many GRTU members are eagerly waiting for the final developments in this regard so that they can bid farewell to the era of restricted opening hours and having to pay a hefty fee simply to be able to stay open. The GRTU believes that this is one element that will help retailers compete with 24-hour online shopping."

Indeed online shopping is another reality Maltese retailers have to adapt to. Abela is aware that some consumers are intent - due to lack of time, lack of parking facilities or other reasons - to only or mainly shop online. And if a retail outlet does not cater for such a need, the client will simply look elsewhere.

“apart from the natural challenges which retailers must find a way to cope with, there are also other unfair challenges that are causing an immense amount of harm.�

"The GRTU believes this is an area where there is significant room for improvement," he says.

However, the learning curve is a steep one, ranging from helping retailers understand the value of changing their business plans and carrying out the necessary investment, to organising the logistics involved in delivery. One of the biggest obstacles remains trying to find a way to organise cheap deliveries both to and outside Malta because the characteristics of our country make this particularly difficult. This is

something the GRTU and the government are working together on.

Abela underlines how the GRTU is not against, and cannot be against competition, as long as this is fair.

"Unfortunately," he concedes, "apart from the natural challenges which retailers must find a way to cope with, there are also other unfair challenges that are causing an immense amount of harm to the retail community and require immediate government intervention."

These include the EU crisis that has brought a wave of Europeans, especially Sicilians, to target the Maltese market.

"In principle," he says, "there is nothing wrong with this. However the GRTU has reason to believe, and this has also been acknowledged by government, that foreigners and also some Maltese operators are avoiding paying VAT, under the excuse that the goods are for export. Others are also avoiding paying ecocontribution, because it is a Maltese tax. Avoiding such taxes heavily affects the price of a product and places the law-abiding retailers at a disadvantage."

In response, along the years different governments have committed stricter controls. In the last budget, the current government has committed itself to establishing a special enforcement unit. Sadly, comments Abela, five months down the line this has not materialised as yet and the damage being done in the meantime will not be rectifiable.

In the last budget, finance minister Edward Scicluna underlined that government is aware of unfair competition. Government has already started addressing this through the eco-contribution reform, which is underway.

However, as the finance minister explained in the budget speech, government is also aware that this is not enough, saying that, "A level playingfield is required where customs clearance is concerned". Minister Scicluna also explained that government is determined to ensure that, "While fully-respecting the single market, whomever is competing with honest Maltese and Gozitan enterprises, locally or abroad, is shouldering the same responsibilities".

Minister Scicluna announced that government will adopt the model used in various countries, namely that of a unit specialised in enforcement, such as the Guardia di Finanza in Italy or the Border Agency in the UK. This new unit will incorporate what is today known as the Revenue Security Corps. Work on the setting up of this unit is also well underway.

Abela's assessment of the local retail scenario is realistic and grounded. While he acknowledges problems, he also focuses on the positive and notes how despite the stiff competition, "retailers are looking into ways of innovating, restructuring and increasing their attractiveness in the eyes of consumers and therefore prospects for the future are brightening up."

Money / Issue 30 - 9

10 - Money / Issue 30

technoInterview logy

Simon Azzopardi is a product consultant who assists start-ups to grow and corporates to innovate like a start-up.

HACKING HACKING THERETAIL THE INDUSTRY Simon Azzopardi meets two local start-ups that are looking to change the retail industry in their own way.

R

etail has seen drastic changes in the last few years with the emergence of e-commerce and mobile commerce.

Giant companies are creating new retail-related industries previously unimaginable. New technologies such as 3D printing will further increase the pace of change of the industry.

Technology undoubtedly brings new opportunities in every sector, including retail. Just by being around local start-ups that embrace such possibilities sheds light on what will be happening in the near future.

I sit down with two start-ups residing at Takeoff Incubation Centre at the University of Malta to understand their views and the impact they want to have on the industry.

The first start-up I meet is Riccardo Lora, CEO of CalypseLab. This company has developed a software solution that uses in-store video analytics to track, record and process human behaviours in a retail outlet.

Their highly effective pitch is that they are the "in-store Google Analytics."

I ask Lora how sees this product impacting retail space.

"The traditional approach involves building strategies on the basis of sales data and the sensitivity or impulses of the staff," Lora explains.

"But how do we measure store performance other than sales?

"Imagine you make a change in a shop. For instance, you change the window display. You can measure the performance improvement, apply the change to all the chain, and all the outlets within the chain will be more profitable in only a few days. We measured a shop's performance where we have installed our product and saw that an increase of 0.5 per cent of walk-ins coupled with a two per cent increase in engagement can generate an increase of 29.6 per cent in sales."

"What we want to do is give stores the ability to apply key performance indicators in real time to affect strategies in retail stores," Lora adds. "For instance, we can measure the performance of a shop window. Using security cameras to capture images, we process data to give you a conversion rate of walk-ins."

The impact that this has on how a store is managed is significant. If you had to look at e-commerce by comparison, it is entirely a numbers game based on conversions and ratios. Applying the same philosophy of data driven decision making to the retail space is certainly a game changer.

This is e-commerce speak in a retail environment. How will this challenge and affect the management skills within the industry?

"We are seeing that managers need new skill sets and are working with change management partners to assist our clients. However, we are also seeing data driven decisions. This means that managers are a lot more confident when deciding on change.

Money / Issue 30 - 11

technology

“FOR INSTANCE, WE CAN MEASURE THE PERFORMANCE OF A SHOP WINDOW. USING SECURITY CAMERAS TO CAPTURE IMAGES, WE PROCESS DATA TO GIVE YOU A CONVERSION RATE OF WALK-INS.�

"The model clearly works and we are continuously getting requests to add more products. Our experience in hedging and gaming allows us to offer such a service profitably."

"Big retail giants have already made the shift in focus from product to consumer, measuring and analysing their behaviour. Our tool simply gives you more data to measure and analyse more accurately, delivering less risk and more opportunity," Lora says.

Analytics in a retail environment using existing infrastructure and the cloud is certainly an exciting proposition. The second start-up I meet mixes retail with an industry that is well engrained in Malta's economy.

Lewis Holland is the CEO of DiscountIF, another local start-up.

Is DiscountIF a gaming or retail company?

"We are most definitely a retail company. We offer products at a reasonable price, irrespective of outcome, within a new, gamification-type of customer experience."

Therefore, what the start-up is doing is mixing retail with a game of chance. How has the market reacted?

"We are offering consumers cashback on everyday items, based on the outcome of a sporting event.

We call it the power of if.

"We have reached six million people on Twitter with our offers trending, many using hashtag #NoBrainer. For an early stage company, that is pretty significant. We have backing from major global brands and entrepreneurs further spurring growth."

"The concept is simple. For instance, one proposition could be: buy this Samsung TV and get 100 per cent cash back if Chelsea, a team sponsored by Samsung, win the league."

Holland explains how the concept has been tried before with companies like Toshiba selling 10,000 televisions under cash back promises if England won the last edition of the World Cup.

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DiscountIF and CalypseLab have not changed the retail space - rather, they are looking to offer their own take on what it could be. Both start-ups are being incubated in Malta and are currently going through investment rounds, backed by teams with high aspirations.

The retail industry is continuing to change and great start-ups will accelerate the pace at which it evolves. New skill sets will emerge and customer experiences will increasingly become the focus of the industry. Retailers need to decide whether they are ready for new customer expectations.

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CUSTOM Interview -ERS

KEEP THEM

COMING BACK Invest in customer loyalty: it's worth it. Money boosts sales with a six-step guide to attracting repeat custom.

A

nyone will tell you that in order for your business to thrive, you need to build a steady customer base. Yet it's not a numbers game. It's like with tourism. Attracting millions of one-off visitors is fine, but it is more viable for a country to draw repeat visitors. The same goes for any business: the cost of attracting new customers is higher than that involved in maintaining existing ones.

Moreover, while a lot of businesses tend to direct their efforts in pursuit of new customers, it's repeat customers that tend to have a higher spend than new ones. It's the trusted 80:20 ratio: a business will typically see 80 per cent of its business come from 20 per cent of its customers.

But what are the ingredients to attract and maintain a core group of customers?

COMMUNICATION

How do you keep in contact with your friends?

By fuelling a conversation, whether in person, by e-mail or through social media. The same applies to customers: whether it's a newsletter, e-mail, flier, greeting card or snail mail catalogue, you need to communicate with your core customers in order to keep them updated on new products and services, but also to make them feel that they are important to you. Which, of course, they are.

However, don't engage in a one-way conversation.

It's good to speak to your customers, but it's even better to listen. Ask your customers what they think of your business, listen and act on their complaints and suggestions. And make yourself accessible: whether it's in person or by phone, e-mail or social media, you need to be present.

CUSTOMER SERVICE

Excellent customer service is key to attracting new customers but also to maintain core ones.

Treat your every customer with respect and make sure that you treat them well. The proof of the customer service pudding is when things go wrong: when customers let you know that they are dissatisfied, make sure that you resolve the issue and tell them how important their feedback is in helping you improve your service.

Money / Issue 30 - 15

CUSTOM Interview -ERS

“WHEN CUSTOMERS MEET THE MANAGEMENT OR OWNERS, THEY FEEL APPRECIATED AND PART OF YOUR STORY.�

GET PERSONAL

Whatever platform you choose to communicate with your core customers, make sure that it is personal.

Loyal customers should not be treated as if they were new or potential customers: you need to show them that you care and that you appreciate their loyalty. And you do this by getting personal.

Remember your loyal customers' special occasions and send them birthday and anniversary cards.

And reward them with small gifts. You don't have to spend a fortune to show that you care.

When communicating with your loyal customers, don't see this as a task and don't get a member of your staff to do it. Do it yourself. It's like going to a restaurant and meeting the chef. It's nice to shake the hand that tossed your pasta or grilled your meat. And it makes you feel important. The same goes for any business: when customers meet the management or owners, they feel appreciated and part of your story.

By being part of your story, your loyal customers will become true ambassadors for your business. Brand

and business ambassadors are key to the success of a business because they share their good experiences and fuel priceless word of mouth marketing.

CUSTOMER INCENTIVES

If every customer is a VIP, then repeat customers are VVIPs. Reward them by giving them perks such as early access to sales, discount cards, and small gifts. You need to let your best customers skip the proverbial line.

Customer loyalty is important, but so is employee loyalty. They say charity begins at home - so does loyalty. If you are competent, treat your employees well and show that you appreciate them, in turn, they will give you their respect. A happy employee trusts you, is a great advert for your business, and passes this loyalty along to your customers.

A side note on technology is a must here. While using technology to communicate is fine, don't hide behind it. Give a face to the conversation: your face.

And don't let technology get in the way. Make sure that your communication lines are seamless.

To ensure that you show your appreciation, you need to reward your loyal customers. This works in two ways: customers are happy with the perk and also feel that, beyond the value of the perk, you appreciate their custom.

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16 - Money / Issue 30

REPUTATION FOR RELIABILITY

If you want your customers to trust you, then you need to show that you are reliable and trustworthy. First of all, your products and services should be reliable: if they are, then they will reflect well on your company's image. Trustworthiness is also built on efficiency: honour your promises and warranties and make sure that you deliver on time. And if you don't, compensate your customers for the inconvenience caused.

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Money / Issue 30 - 17

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MARKET Interview -ING

George Larry Zammit is a chartered marketer who invigorates businesses through his consultancy Tiki-Taka Marketing (www.tiki-taka.com.mt).

DETAIL RETAIL

THE

IN

A combination of shop design, connecting with customers' emotions, staff training and the right price creates the total shopping experience, says George Larry Zammit.

T

raditional retailing is doomed. Gone are the days of brick-and-mortar stores and customers are now flocking to the internet.

Amazon, eBay, and many more online stores have taken over the planet. At least that is what many customers think. Online shopping is convenient but realistically it's just another channel in satisfying the needs of customers. It's only another method for brands to distribute their products.

It has been estimated that global retail sales will top $24 trillion in 2015 (eMarketer). Of that amount only $1.6 trillion will come from e-commerce. So while that's nearly seven per cent of the global turnover of retails sales, it just goes to show how customers have not abandoned the experience of shopping in physical stores. Their appetite is still strong for the physical outing of shopping.

It's true that retailing as we knew it has become brutally challenging. Customers have more choice, higher expectations, continuously seek individuality, and have every means to compare. Branding has certainly played a part in differentiating one product from the other. But branding is no longer about a name, logo, and corporate colours. Those retailers who have remained successful are those who focused their endeavours in offering a total shopping experience.

SOLVE YOUR CUSTOMERS’ PROBLEMS

A common mistake among retailers is that they continuously harp about the product. How good it is. How durable it is. How affordable it is. What they don't really tell customers is why they need it and why they must have it. Why the product should be yours. Why it was actually made for them to own and cherish.

Successful retailers present themselves as the solution to the customers' needs. This can be done so easily in a physical shop rather than online. The one-to-one interaction with the customer can build a circle of trust, a relationship where any recommendation by the sales person is considered and valued.

Who knows how many times you have mulled over the purchase of buying a laptop. With so many brands and configurations, choosing the right model for you can be a bit confusing. Of course the first thing a seasoned IT person will ask is what do you want the laptop for. Is it for home or for work? To leave at home or for travelling?

TREAT CUSTOMERS LIKE KINGS AND QUEENS

No customer is a charity. It's the actual shopping experience that makes the trade-off between the customer's money and the product possible.

Therefore it's obvious that customers would prefer to purchase online if they feel that they are not properly served in a physical shop. It's surprising how some shop owners and staff don't even acknowledge their customers with a simple smile or hello when entering a shopping outlet.

Of course there is much more to this. For instance, the state of changing rooms. Do you have any idea how customers can be inspired by the sheer experience of a decent yet chic changing room?

Unfortunately the changing rooms can be the most neglected space in the whole shop. The same goes for the general impression of a restaurant on how clean their restrooms are.

Money / Issue 30 - 19

MARKET Interview -ING

How many times have you been stuck in a changing room and if shopping alone not one customer assistant approached you to see if you need a different size? Let alone an opinion on how you look? Or maybe even taking the initiative in suggesting something else which matches or complements the full outfit?

Even when making a simple purchase at the cashier. Time and time again you see cashiers chucking items into a shopping bag, taking care of their long fake nails while tapping away on the point-of-sale system, and offering no eye contact at all when asking for payment.

Taking the cue from upmarket boutique shops, it makes such a difference when the cashier gives you a courteous smile, handles the items you plan to purchase as if they were the last ones on the planet, and makes that extra effort by bringing out the shopping bag from behind the cash desk instead of handing it over the counter. That is certainly a total experience which makes you feel like you made an investment out of a simple purchase.

CONNECT WITH YOUR CUSTOMERS’ EMOTIONS

It's a well-researched fact that shopping therapy is a proven method for individuals to improve their mood. Research in 2013 by the Journal of Psychology and Marketing revealed that 62 per cent of shoppers had purchased something to cheer themselves up, while another 28 per cent had made a purchase to celebrate something.

This simply shows that the shopping experience is a form of escape from the daily routine. It's a solution for customers to pamper and reward themselves.

The physical store can be transformed into a sanctuary by connecting with customer emotions.

This is why many leading retailers invest in constant staff training to learn the traits of reading customer behaviour and utilising that knowledge into developing better shopping experiences. Welltrained staff can improvise according to the mood of customers. Customers who might seem difficult, or those who just want their moment of comfort, or simply a moment where they can find respect.

The shop environment itself is a main feature of the experience and this is where designers try to stimulate the customers' four senses. From appropriate lighting and music to engineered scents, avant-garde retailers are putting in a lot of science into developing the shopping experience. Upmarket outlets are even serving complementary espressos and canapes to discerning customers to make the shop environment an oasis for customers.

Successful retailers are also those who are good at commercial and seasonal planning. Not only do

20 - Money / Issue 30

they know what their customers want: they know when they want it. For instance, you would be surprised at how much thought has to be put into maintaining a successful stationer. There are so many events throughout the year that the retailer needs to look out for and plan ahead: back-toschool, weddings, Valentine's, Mother's Day, Father's Day, first communion and many more occasions like these transform the product selection of a stationer.

Proactive retailers make that desired switch when needed to anticipate and satisfy their customer needs. Happy customers lead to stronger sales which can deliver better profits.

SET THE FAIREST PRICE

Yes, the price needs to be right. But that doesn't necessarily mean it has to be the lowest. Many retailers are sucked into price wars especially with the introduction of new competitors and massmarket retailers.

This doesn't necessarily mean that you should rip off your customer. On the other hand offering best value for money does not mean your price should be the cheapest. Retailers should constantly strive to seek other reasons for customers to purchase from them.

The last reason should be price.

“IT MAKES SUCH A DIFFERENCE WHEN THE CASHIER GIVES A COURTEOUS SMILE AND HANDLES THE ITEMS YOU PLAN TO PURCHASE AS IF THEY WERE THE LAST ONES ON THE PLANET”

Tesco is a great example of a retailer that dominated the British grocery market while being blamed for the destruction of the traditional high street. As they would famously say, pile it high and sell it cheap.

In the meantime traditional retailers have been doing their bit to sustainably increase convenience for customers through longer and later opening hours. Apart from this, visual merchandising plays a critical role in making the shopping experience convenient.

Of course from an extremely successful retailing champion, today Tesco too is finding it hard to compete in the UK with the advent of low-cost operators Aldi and Lidl. This year alone Tesco reported the biggest loss in British business history.

Why? Because their core customer base was purely motivated by price and nothing else. No retailer can ultimately survive the cheap and cheerful trap if it can't sustain its low-cost position. Hence successful retailers price fairly but make it a point of creating a more dynamic value proposition.

While many might think that visual merchandising is literally about making the shop look pretty, it does have a scientific role in making the shopping path more structured and easier for customers to find what they want. There are various methods to merchandise products like by category or fashion story. It all depends on the brand experience the shop wants to present to its customers which ultimately is inspired by their own customer behaviour.

One thing that customers are increasingly lacking is time. Therefore those retailers who identify ways to make the shopping experience swifter and more convenient win the hearts and minds of their customers.

Retailers can also save their customers' precious time by ensuring their staff are attentive and proactive to the needs of the customer. This does not necessarily mean that sales assistants need to be pushy or nosy but it does help if the sales assistants give attention to what the customer mission is and quickly intervenes to save the day and nudge the customer to that much desired purchase.

While online shopping is perceived as the most convenient form of purchasing products, it's still not very convenient that you have to wait a few days to receive your goods which you could not physical touch or try before making your purchase. There is the convenience of wider choice and the opportunity to compare prices, but not surprisingly all that online research can be a very timely manner.

Last and not least retailers need to keep it simple.

Modern retailing has become a very complex affair but that doesn't mean that the complexity of the business operation has to be transferred to the customer. Customers most of the time have a clear idea what they want. If not, they will know it once they see it. Therefore eliminate any unnecessary clutter and simplify the process in finding and/or identifying the desired the product.

SAVE YOUR CUSTOMERS' TIME

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Money / Issue 30 - 21

Golden opportunities – physical gold and silver deposits made easy.

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Chris Mifsud is a director of a marketing communications agency and holds an MBA from SDA Bocconi, Milan.

FINANCE

THE POWER

OF PURCHASE

Chris Mifsud goes beyond the number crunching to get an idea of the real local spending power.

T

here's an article that has taken meme form lately on a popular social media platform that goes on about how today the largest transport company owns no vehicles (Uber) on to the largest retailers not owning any shops (Amazon, Alibaba).

This is arguably a sound theory if you discount balancesheet side value and of course the risk pegged to shifting market capitalisation nearly solely on brand equity, or to use a classical term, goodwill.

But undeniably, the presence of online trading has if nothing served as the great equaliser where spending powers from all corners of the globe are equalised with one great gavel strike powered by Adam Smith's legendary invisible hand.

This introduction is extremely useful before starting a discussion on the more pragmatic approach of assessing spending power, for the simple reason that it reminds us of how technology inevitably serves to diminish, dilute and hopefully equalise economic, social and even political disparities.

GDP per capita is an economical bread and butter tool that gives a degree of measurement to the user on national wealth distribution. GDP per capita is simply an equation that divides all the value generated by a sovereign state (easily compared to turnover or total revenue if it were a company) by its population, with a few economic adjustments on the way.

Comparisons, as they say, are odious. And they are more so when comparing wealth. However no less shabby method has yet been developed, so a crude comparison of GDP per capita shows Malta at just under $23,000 per capita per annum (World Bank, 2013). At this level, the growth prospects for Malta are set to outperform the average Euro area. An indication of where this sits is easily revealed when we see that the Netherlands has one of the highest ranks at just over $50,000 (ECB, 2013) and Bulgaria, at the lower end with $7,500 (ECB, 2013). But enough of this ersatz financial Eurovision contest.

“WHAT WE REALLY CARE ABOUT HERE ON THE GROUND IS THE RELATIVE INDIVIDUAL ABILITY THAT A MALTESE WORKER OR CAPITAL OWNER HOLDS ON SPENDING THEIR DISPOSABLE INCOME, VERSUS BOTH THE PERFORMANCE OF THE MALTESE ECONOMY AND FOREIGN NATIONS OF SIMILAR SOCIAL FABRIC.�

We might have answered that comparing local spending power is an argument Malta might want to pursue knowing full well that its standing is not a shameful one. There is however as always, an elephant at the dinner table that far brighter economists before me have sought to slay by the use of PPP. Purchasing Power Parity adjusts economic indicators to relative values and therefore it seeks to level the value of one dollar spent by individuals at opposite ends of the globe (in hugely different market) to each other through the mathematical wonder that is indexing.

In practicable terms, no one made this theory simpler than The Economist no less, by inventing the Big Mac Index. An initially quasi-humorous attempt of comparing the price of a Big Mac (an arguably identical retail item regardless of the country it is served in) across the globe, adjusting it for currency prices and therefore finding out if and where currencies are overvalued. (Today more complex 'baskets of good' are used such as the Harmonised Index of Consumer Prices, which was developed by the European Central Bank to level economic indicators via a weighted average of price indices).

Moving back to spending power, what we really care about here on the ground is the relative individual ability that a Maltese worker or capital owner holds on spending their disposable income, versus

both the performance of the Maltese economy and foreign nations of similar social fabric.

And here lies the great local distortion lies.

Disposable income is exactly that: your income after all taxes is paid. Most commonly you then start reducing other obligations, most notably a house loan. Given the property prices locally, propped up by foreign demand and supply issues (and the fact that many still pursue home ownership rather than rental, which is another economic argument all together) you might conclude that while local spending power is actually at an admirable level when compared to at least the Euro area, on a touch and feel level many are the struggling (albeit distant from the poverty line).

We started off talking about technology, and we can conclude on that line of thought for the simple reason that any challenge needs an approach beyond fine-tuning and figure fumbling.

Tangible changes are historically the result of paradigm shifts, a form of deus ex machina solution that has most notably come about through technology. The modern version is the digital dimension that will inevitably dissolve many price differences, inflated costs and financial barriers towards a greater redistribution of value and purer power of purchasing.

Money / Issue 30 - 23

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PROMO

THE RETAIL ADVANTAGE

Shireburn offers a modular, end-to-end retail solution to help you boost your business performance.

T

he year was 1900. Two salesmen set off looking for opportunities to sell shoes in the far reaches of the world. After a few weeks that they had been gone, the first salesman sent a telegram back: "Situation is hopeless! Nobody wears shoes here." The second salesman, however, wrote quite a different message: "Glorious opportunity!

They don't yet have any shoes here."

Making the most out of market opportunities requires the right perception - a product of both knowledge and creativity. In a constantly changing world, knowledge is one of the most valued assets sought by businesses in any market. It allows for measured risks and informed decisions, which are two of the most important ingredients in a successful business.

CRACKING THE MAZE CODE

Data has changed the face of how businesses operate in any given market. Acquiring and using data is the Holy Grail for businesses where competition for customers' attention is stronger than ever. Having operational data gives businesses the competitive advantage needed to learn and adapt to the changing needs of the market, iterate and succeed.

Business software can allow a wealth of data to be gathered and processed, providing businesses with the automation and opportunities to expand in a digitised world. Through different software and hardware components, the entire process can be automated and optimised, saving the business money and increasing market accessibility.

Much like a team's effectiveness can be measured by the ability to communicate with each other without bureaucracy, software and data should be able to communicate with each other flawlessly in a way that only systems built to work together can. Many systems are localised for the Maltese market as an afterthought, leading to expansion restrictions, bugs and compatibility issues.

A LOCAL SOLUTION FOR THE LOCAL MARKET

In the retail sector, Shireburn Software has made great strides in both the local and international markets when it comes to offering a modular, endto-end solution. From single-location stores, through chains and franchises, shopping malls and airports

with hundreds of stores, Shireburn caters for every commercial set-up at the right price point with all the required options to expand operations when needed.

it is also fully compatible with local laws including tax, shipping and other reporting requirements and is supported by Shireburn's local team.

Shireburn's POS is the front-end component of the retail solution, providing a configurable point-of-sale solution with an easy-to-use interface optimised for touch screens and barcoded products. It offers all the functions required to run and promote your business including a built-in punch clock for recording staff attendance, promotional and discount schemes. It is also internet-ready allowing you to check stock levels for an item across multiple stores in real-time.

As your business expands online, Shireburn's eStore provides real-time connection to Shireburn's Inventory Management system ensuring you never miss a sale while developing your customer's trust in your business as a dependable and trustworthy choice. This greatly reduces your workload allowing you to focus on running your business.

Complementing the POS solution, Shireburn also offers a stock management solution that has been designed from the ground up to work seamlessly with the rest of the Shireburn Business Suite.

With sales, purchasing, distribution and inventory modules available as required, it offers complete control over the entire process while remaining cost-effective and modular enough to grow with your business. Since it is designed for the Maltese market

Tying it all together is Shireburn Business Intelligence that runs ad-hoc and pre-set reports and graphical dashboards on real-time data giving you the insight and information required to make decisions right when it matters most.

Shireburn's retail solution offers a true 360-degree, multi-channel solution ensuring that the entire process is catered for without hindering the data process flow or profit while supporting you in boosting your business's performance.

Money / Issue 30 - 25

Interview LUXURY

BATTLE

OF THE

BRANDS Luxury brands will go to great lengths to protect their distinguishing marks, says Dr Doran Magri Demajo.

A

ny woman with an incurable passion for shoes will make it her life's mission to have at least one pair of Christian Louboutins in her shoe closet.

Is it because they are comfortable? Definitely not. In Mr Louboutin's words, "I hate the whole concept of comfort… I'll do shoes for the lady who lunches…" meaning that there is no way a woman can flaunt her Louboutins while shaking it on the dance floor unless she is prepared to suffer.

Is it because of the design? Again, no. Mr Louboutin's popular court shoes are simply just that: court shoes.

Is it because they are affordable? Not quite. The cheapest pair of Louboutins will set you back around €400.

The reason why a pair of Louboutins is an absolute must-have for shoe lovers is because of the trademark red sole. The red sole has become distinctive of the Louboutin brand, so much so that his shoes are often referred to simply as "red bottoms". Whether considered by some as a manifestation of glamour and privilege or a marketing gimmick by others, through his mark, Mr Louboutin has rendered a simple design into a

26 - Money / Issue 30

product which is instantly recognisable, not only by women but also by men. It is this mark that Mr Louboutin will protect, through trademark and copyright laws, to ensure that it will be recognised as his brand and nobody else's.

On January 1, 2008, the US Patent and Trademark Office issued a trademark registration for Louboutin's lacquered red soles (the 'Red Sole Mark'). In 2011, Louboutin sued YSL in connection with four shoe designs from YSL's 2011 'Cruise' collection, all-red shoes bearing red soles, claiming trademark infringement on the basis that the use of the colour red was too similar to his Red Sole Mark and was capable of confusing customers.

The US Court held that: "The lacquered red outsole, as applied to a shoe with an 'upper' of a different colour, has 'come to identify and distinguish' the Louboutin brand, and is therefore a distinctive symbol that qualifies for trademark protection." The protection of Louboutin's trademark was therefore limited to situations when the red sole is matched with a contrasting upper. The US Court concluded that the red sole mark's ability to stand out from competitors depended on the colour contrast between the red sole and a non-red upper of the shoe.

Dr Doran Magri Demajo is a partner at Be Legal Advocates and is primarily responsible for the firm's corporate and commercial law practice.

Secondly, the judge concluded that, "Courts have uniformly restricted trademark counterfeiting claims to those situations where entire products have been copied stitch-for-stitch." Therefore the court concluded that Guess had diluted Gucci's logos, rather than counterfeited them.

“INTELLECTUAL CREATIVITY IS AN ASSET THAT MUST BE PROTECTED.�

Even though Louboutin's trademark claims were dismissed on the grounds that YSL's shoe was completely red and as such his mark was not being used, this case confirmed that colour can indeed serve as a trademark in the fashion industry, and that Louboutin's famous Red Sole trademark is valid, protectable and enforceable.

Gucci is another brand immediately recognisable because of its 'GG' trademark, registered in 1984 in the UK in four different classes covering handbags, t-shirts, watches and cosmetics. Gucci is now one of world's most valuable brands raking in $4.7bn in total sales in 2013.

The legal battle between Gucci and Guess in respect of Gucci's claims of trademark violation

by Guess is never-ending and well known to the fashion enthusiasts of both the luxury Italian label and the American clothing company. In 2009 the House of Gucci sued Guess Inc. claiming that it Gucci-ised many of its products by copying Gucci's trademarked designs on wallets, belts, shoes and other items. In 2012 a US District Court ruled in favour of Gucci and awarded the fashion powerhouse $4.66m in respect of four trademark infringement claims: (i) Gucci's green-red-green stripe mark; (ii) a script logo (the repeating GG pattern); (iii) a stylised 'Square G'; and (iv) a group of four interlocking 'Gs' known as a 'Quattro G.' Even though Gucci walked away victorious, the payout was small considering that Gucci's initial claim was for $124m. Two issues appear to have weakened Gucci's lawsuit. In the first place the judge noted that Guess was founded in 1981 and started producing the designs in question around 1995. It was impossible for Gucci to have been ignorant of the Guess designs until 2009, that is, the date of filing of the law suit, especially since the Gucci and Guess stores were, very often, located close to each other in the same mall.

Louis Vuitton is the world's most valuable luxury brand with a brand value of $29.9bn as of November 2014. Its products range from handbags and shoes, to watches, jewellery and chic accessories. What is it that makes the brand easily recognisable? The famous "LV" monogram of course. Aside from the trade name "Louis Vuitton", other notable registered trademarks include the interlocking LV initials in a circle design, the LV initials and monogram canvas design, Louis Vuitton Malletier A Paris in rectangle design, and the LV initials brass lock design.

In 2007 Louis Vuitton filed a lawsuit for trademark dilution and copyright infringement against pet product company Haute Diggity Dog in connection with its product line called Chewy Vuitton, a chew toy for dogs. The famous "LV" was represented instead by a "CV". On its part, Haute Diggity Dog argued that the product line was only a parody, similar to other of its parody products for luxury brands such as Chewnel No. 5 (Chanel No. 5) and Jimmy Chew (Jimmy Choo).

The US Court of Appeals upheld Haute Diggity Dog's arguments and stated that the pet product company did not infringe on the copyrights or trademarks of Louis Vuitton. The Court rejected the argument that the Chewy Vuitton products would cause confusion for customers of Louis Vuitton and concluded that the parody line was as an amusement that was meant to entertain its customers.

The colour red, the letter G and the famous LV: these represent big brands which are the result of their proprietor's intellectual creativity in the fashion industry and ambition to be different and distinctive. This intellectual creativity is an asset that must be protected to avoid the copycat from acquiring an unfair advantage by trying to cash in on somebody else's vision, innovation and creative expression. If you value your brand, regardless of the size of your enterprise or the type of industry you are in, be it fashion, financial services, igaming or otherwise, inform yourself on your intellectual property rights. The IP legal framework is there to protect you, so use it.

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The colour of Chivas Regal Extra is dark in shade with a warm amber glow. The nose if fruity sweet with notes of ripe pears and melon, creamy toffee, milk chocolate, cinnamon and a hint of ginger. With a taste of sweet ripe pears in syrup, vanilla caramel, cinnamon sweets and almonds in the background, the finish is a beautifully rounded mouth feel, leading to a long, luxuriant sweet finish.

Chivas Extra is marketed and distributed by Farsons Beverage Imports Co. Limited. For trade enquiries call on 2381 4400.

This article contains general information only and neither Be Legal Advocates nor any of its affiliate/s, partner/s and/or associate/s is/ are, by means of this publication, rendering professional legal advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult with your professional advisors.

Money / Issue 30 - 27

Interview INNOVATION

PUTTING THE

IN supermarket

We are creating the future of supermarket retail, says Chris Borg, Director, Park Towers Supermarkets, as he gives Money a preview of a new concept store opening this summer.

How does a supermarket shopping experience vary from other retail models?

Ours is a completely different idea from any traditional supermarket found on the Island.

Ambiance is something that has always been neglected in supermarkets, and this is something we shall be giving our customers in our newly refurbished store Adding to this you will find that the shelving and aisles are set up to improve the ease of shopping and minimise the stress that goes with it. Aisles are not the extremely long ones that you would find in traditional supermarkets.

28 - Money / Issue 30

Shelves and aisles are split into groups where customers will find what they are looking for much easier while also having things that complement each other close by in dedicated and spacious aisles.

We are also proud in being able to give our customers that something extra, a new shopping environment. An environment not seen in any other supermarket in Malta, and may only be matched with Northern European supermarkets.

Supermarket shopping is all about choice, efficient service and affordability of products: how do these elements feature at Park Towers?

As a company we strongly believe in both efficient service, and the affordability of our customer's total spend. These have been the foundations of our success throughout our 20 years in business, and will remain our strength in the future.

Presentation is everything: what elements contribute to good supermarket design?

We have gone to great lengths with our designers to find the best possible layout in our store, emphasizing on comfort when shopping, giving a great atmosphere, improved product presentation, innovative furniture displays, latest retail technology in lighting, and other elements

“THE UPPER FLOOR LEVEL WILL SHOWCASE A NEW CONCEPT IN RETAIL WITH A FULLY OPERATIONAL KITCHEN.�

To complement all this we have researched and taken great care in setting up new store lighting. This is also very innovative where we are lighting only the products on the shelves, rather than the whole store as is usual in other traditional supermarkets.

What role does technology play in supermarket shopping?

In a store like ours, technology is an essential element. Technology is present in all areas, from refrigeration to lighting and lifts.

Moreover, technology has to be environmentally friendly while also ensuring cost savings.

John and Chris Borg, Directors of Park Towers Supermarkets

that give the store a total feeling of ease and hygiene whilst shopping.

The store is undergoing a total transformation - with the help of our experienced Northern European designers, we are creating the future of supermarket retail.

What innovative elements have you introduced in your supermarkets?

The store will be offering a new concept of fresh food retail at ground level. This will give this space the feel of a market. Departments like the fruit and vegetables, butcher and cheese counter will all be having new equipment and a new look and feel. We will also be introducing two new departments: a fresh fish section and a fresh bakery.

The upper floor level will showcase a new concept in retail with a fully operational kitchen, having chefs cooking and teaching new recipes to our customers while also enjoying tasting these products in a relaxed ambiance surrounded with a state of the art wine section. A new kids area will also be close by and will be equipped with video games and other games.

The lower level of the store welcomes it customers to a beautiful piazza showcasing ones every day needs, and also some high quality level products.

Another innovation is our new shelving which is more hygienic and customer-friendly.

How important is customer care training in retail?

This is one of the fundamental elements in retailing and one which can never be ignored. We believe that good customer care training has made us leaders in our sector and is one of our strengths.

How do additional elements such as catering and parking contribute to an overall good supermarket shopping experience?

Parking is definitely something no large store can do without in today's world. This has also been one of our improvements in our Santa Venera store and we have ensured easier parking in our car park.

As for catering, this is something that we shall be improving through our kitchen in our upper level.

We believe that this will give our customers another advantage when shopping in our store.

Money / Issue 30 - 29

Tyde Developed by Vitra in Switzerland Design: Ronan & Erwan Bouroullec Available through the following Vitra dealer: Dex Workspaces Mdina Road · Qormi · Malta · QRM 9011 · T. +356 22 77 3000 · www.dex.com.mt Member of the Vivendo Group

www.vitra.com/tyde

Dex Workspaces

DESIGN

Sean Cassar is the managing director and lead designer at Design Hub Malta.

FINE TASTING

Sean Cassar from Design Hub Malta gets inspired through the grapevine and designs a space that celebrates wine.

THE CONCEPT

I have long had this idea of designing a wine boutique shop. Wine can be enjoyed by most people - however, with all the vintages, years, growers, producers and taste profiles, it can sometimes be difficult to approach. Therefore, I wanted to design a space that makes it easy for consumers to approach wine, learn more about it and, overall, enjoy it.

Money / Issue 30 - 31

ITALIAN FLAIR AND STYLE

FORM AND FUNCTION

The floorspace is divided into two. At the front there is the retail area which proposes a sales counter, a central station with space for storage, a sales counter and a temperature-controlled wall storage. The central station also doubles up as a working top for when the space is hosting events such as wine tastings.

At the back there is another space which is separated by a timber-cladded door.

This space includes a kitchenette, office and bathroom facilities. When closed, this space serves as administration space for management and staff. But during an event, the door can be opened and the space becomes an extension of the front area.

Although floorspace is limited, I designed it in a way that there is a comfortable flow for customers. You can walk around the space without obstructing other customers and without running the risk of toppling some expensive bottle of wine.

The wine boutique has a double function. During the day, the space is dedicated to retail. In the evening and at night, the space can be used to host wine-related events such as wine tastings, launches and private functions.

32 - Money / Issue 30

MATERIALS

For the floor and walls, I used timber oak boxes sourced from different wine producers. These are sanded, lacquered and finished to give the overall space a vintage, wine-related feel. For the surface tops, I used polished concrete which is both visually attractive and extremely functional.

All the fittings are made of copper. Again, this is a continuation of the wine theme as copper makes a reference to vintage equipment such as copper fermentation barrels. Also, visually copper looks good when paired with timber.

I have also used cork, which is a very versatile material. For instance, the feature base of the sales counter is made of a cluster of wine bottle corks. Behind every individual cork I have placed small lights - when lit up, this creates a spread of light diamonds. This feature is both a design element and point of interest.

LIGHT

I wanted the wine boutique shop to have a muted yet elegant ambiance. Therefore, I used ambient lighting as well as recessed and directional lights.

I also placed uplighters underneath some of the wine shelving - this turns wine bottles into objects of interest and focus.

Vivian Corporation Limited hosted an elegant event to celebrate the recently opened fashion store Garbo at The Point Shopping Mall in Tigne. The chairman Mr Vivian Gatt welcomed guests with a short speech before inviting them to enjoy the rest of their evening. Models wearing the latest clothes from the store mingled with guests, giving them an opportunity to view the Garbo collection more closely.

Representing renowned Italian brand names like Henry Cottons, Cerruti 18CRR81 and Marina Yachting, Garbo is aimed at those looking for a combination of Italian flair, urban style and excellent craftsmanship.

MALTA INSTITUTE OF MANAGEMENT

YACHT & SUPER YACHT

SYMPOSIUM

MALTA

11 June 2015 For more information contact: Malta Institute of Management

T. +356 2145 6819 E. info@maltamanagement.com

www.maltamanagement.com

Money / Issue 30 - 33

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34 - Money / Issue 30

PROMO

Raluca Filip is an Investment Manager at Calamatta Cuschieri and she comanages the Calamatta Cuschieri Bond Funds. She holds an MA in Financial Analysis and has also completed the Chartered Financial Analyst (CFA) program.

INVESTMENT STRATEGY Raluca Filip outlines the bond market prospects for the second quarter of 2015.

What is your general outlook for fixed income markets as we gear into Q2 2015?

In the following few months, we expect steady returns for both Eur and USD high yield bonds rated lower than BBB. We will also see room for further gains in the Eur investment grade space.

What underpins your optimism on high yield bonds?

After a sharp correction in late 2014, the Eur high yield bonds are on track to recover their losses after relative valuations for the B-rated names had reached recession-like levels.

A similar trend was observed for the US high yield market which also has the advantage of higher spreads on offer (relative to its Eur counterpart) partly given the longer average maturities.

As markets come to realise that an increase in the US Central Bank's rate is not at all imminent, we would expect the spread tightening in the US high yield space to gather pace, barring a renewed downtrend in oil price. Should markets become convinced that oil has bottomed we could also experience a gradual rotation from US equities into US high yield bonds as the yield for the latter is over five per cent as opposed to two per cent for the S&P500.

Given that economic growth has failed to pick-up significantly shouldn't investors be increasingly worried about defaults?

Whereas we reckon that the global growth outlook is by no measures bullish, we are in agreement with the rating agencies that the default rates are likely to remain low.

This reflects the low financing costs and the refinancing (lengthening) of the debt maturities over the past few years.

As such, Moody's expects the global default rate to stand at 2.5 per cent in 2015, well below the long-term average of 4.5 per cent.

with the USD appreciation acting as a headwind for multinational corporates, (iv) limited, if any, scope for gains in benchmark bonds (US government bonds).

What is your advice for high-rated bond investors?

In the investment grade space, we see scope for further gains but we continue to have a tactical preference for Eur denominated bonds over USD bonds. As such, we find that the mild setback experienced in March against a backdrop of strong issuance is a buying opportunity, particularly as supply is due to gradually fade as earnings season opens.

Where are you looking for yield today?

As the universe of negative yield securities has been expanding, we are looking for some yield pickup in (i) longer term investment grade bonds, (ii) bonds issued by peripheral countries such as Italy, (iii) subordinated bonds and (iv) high yield bonds.

However, our positive stance on Eur investment grade is well supported by expectations for lower spreads and benchmark rates. Eur government yields (which are a benchmark for investors in corporate bonds) are in our opinion likely to decline further in the following months as the European Central Bank continues to buy such securities and supply (after accounting for maturating amounts) is expected to slow down.

In our opinion, the investment grade bond spreads, measured as the excess of corporate yields over government yields, will experience further tightening (price gains) with the longerterm bonds leading the rally.

Indeed, we expect the spreads across maturities to gradually converge (yield curve flattening) as investors, as well as asset managers and pension funds, strive to increase the yield of their portfolio by lengthening maturities.

With regards to the US investment grade bond markets, we maintain a neutral stance for Q2 as the higher yields on offer are offset by a series of negatives, namely (i) higher M&A activity, (ii) higher share buybacks, (iii) earnings growth has peaked

The Fed has guided that it might increase interest rates in 2015. How should bond investors position their portfolios?

We see limited risks for high yield bonds as, in our opinion, the first increase in rates will not come before Q4 2015. We actually see the possibility of an additional delay. As such, over Q2 US credit should post strong returns whereas in Q3 we could see coupon-like returns. For IG investors it is advisable to gradually shift towards longer maturities as longer term rates are less sensitive to movements in short term rates. Having said this, we caution that the greater downside risk for both IG and high yield bonds is that the monetary policy change could take place prematurely in which case high yield bonds would be hurt. Given the downward revision of the Fed forecasts we think (and hope) that this is not the case.

For more information visit www.cc.com.mt. The information, views and opinions provided in this article are solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Limited (CC) does not accept liability for losses suffered by persons as a result of information, views or opinions appearing in this article. CC is licensed to conduct investment services in Malta by the Malta Financial Services Authority.

Money / Issue 30 - 35

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36 - Money / Issue 30

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Interview HR

Gianfranco Capozzi is a director of Erremme Recruitment, an employment agency which focuses on HRM outsourcing solutions specialised for the financial services sector.

THE HUMAN TOUCH Is human capital an asset or a liability for small and medium enterprises, asks Gianfranco Capozzi.

I

n this era of high technologies, social media, applications and tools becoming even more cutting-edge, we are discovering that, even in different work realities, we are losing some of the human touch. The impact of high-tech on the business world may change certain traits commonly valued, such as the importance of personnel in every organisation and operational effectiveness of the company among others.

Why is human capital important for companies and what are the implications for small and medium enterprises?

In the past, employees were considered a liability due to the cost of wages - nowadays, however, we are more inclined to see them as an asset for any organisation. This is attributed to the fact that we have moved from an industrial society to a knowledge-based era determined by the information society. As the number of services provided is continuously increasing, much more than goods, we must appreciate the importance of the people delivering such services.

For small businesses, staff is the most important and tangible asset we have: such significance is developed further and professionals in human resources management agree in defining it as a strategic factor and a source to gain competitive advantage, diversifying and achieving organisational success.

Competitors can replicate the products or services that you offer, but no competitor can replicate your people who are serving those products or services.

Who should be responsible for the employees' professional development plan?

When I was working in a junior executive role, I was constantly eager to learn new things in order to develop my knowledge and skills. My own incentive was that if I grew professionally, the business would grow with me. This intuition can be envisaged from both the employer's and the employee's side and no one should be afraid to achieve business growth.

Personally, I believe that all of us, as individuals, are in charge of our professional development.

This is particularly the case nowadays: following the economic crisis we have lost the notion of a job for life and we should continuously aim to

achieve new skills, develop our competences as much as possible, and embrace lifelong learning.

Rather than targeting a permanent job, we should aim to enhance our employability: improving and increasing our skill set and competences and so increasing the value that we all have as recognised assets to our company.

Thus, potential employee development represents one of the most notable resources and investments for small businesses.

What can SMEs do in order to hire and retain talent?

As employers, we should be willing to give our staff adequate room to grow and use new skills eventually acquired. There may be cases of internal vertical promotions, but also interesting horizontal career paths - where employees gain certain skills that can be applied when working in a different department - and other incentives designed to keep staff engaged and challenged. Such incentives should not be limited to a salary increase but can also include the adoption of a flexible work environment or giving staff the opportunity to carry out part of their work from home.

“EMPLOYEES NEED TO KNOW WHY WHAT THEY DO IS IMPORTANT.�

Willingness to innovate and progress should be cultivated and shared within the core values of the organisation, while all the other values should be directly linked to everyday duties and responsibilities. Employees need to know why what they do is important.

An additional advantage would be to implement a career entrepreneurship model, where instead of relying on loyalty, you will be coaching and offering your employees the option to set their

career goals, measure their accomplishments and managing their own careers, paying back with commitment and their service.

Malta in attractive to various nationalities.

What effects do multicultural employees have on small businesses?

A multicultural workforce is an opportunity: therefore, it all depends how you take, manage and develop this opportunity. In certain cases, it's an incentive in itself to attract talented people who gained experience out of the country - this can offer different perspectives, as executives and managers coming from different backgrounds bring their unique cultural experience to the business.

Even in the context of small businesses, managing diversity might be used to gain consensus from a particular niche of clients, extend the business to a broader coverage in the marketplace, and transform cultural and language barriers into a business advantage.

In any business, diversity should be strategically analysed when drafting the human resources management plan, as a proactive and long-term element which is ultimately perceived as an investment pointing to business benefits.

Do you foresee that the human capital will retain a dominant role in the business world?

Despite the high technologies, we will always need human capital to realise works otherwise impossible. Even though automation can save the manual work of 100 employees, we still need the knowledge and skills of engineers and technicians to design and maintain such machinery. Knowledge is an intrinsic aspect of human capital that cannot be imitated or recreated. Consequently, the future of your business depends on what you know, and in the case of companies, what your employees know, experience and bring to you.

Money / Issue 30 - 37

38 - Money / Issue 30

MARKEAT market REPORT

Licensed stockbroker Alexander Mangion is Managing Director at MPM Capital Investments since 2009.

The company is authorised by the Malta Financial Services Authority (MFSA) to provide financial services in Malta and holds a Category 2 licence. Mr Mangion holds a Bachelor of Commerce (Hons) degree in Banking & Finance (University of Malta) and a Master of Finance & Investments (University of Nottingham.)

TH E GREAT

OI L GAM BLE Are there winners or losers in the oil price collapse, asks Alexander Mangion.

O

il prices have either risen sharply - or fallen sharply, as they have in the past few months - just a dozen times or so in the past 40 years. Usually, the sharp price increase is in response to wars or natural disasters. But the sharp drop in the second half of 2014 - when crude oil prices fell from a high of $115 a barrel in June 2014 to a low of $45 a barrel this past March - wasn't precipitated by such natural or man-made calamities. However, that didn't prevent things from going a bit haywire.

The sudden collapse in crude oil prices launched all manner of conspiracy theories, even as the prices created unanticipated ripple effects throughout the global economy. There are winners and losers in all this. Russia loses about $2bn in revenues for every dollar fall in the oil price. The World Bank has warned that Russia's economy would shrink by at least 0.7 per cent in 2015 if oil prices do not recover.

Despite this, Russia has confirmed it will not cut production to shore up oil prices.

Venezuela is one of the world's largest oil exporters, but thanks to economic mismanagement it was already finding it difficult to pay its way even before the oil price started falling. Inflation is running at about 60 per cent and the economy is teetering on the brink of recession. The need for spending cuts is clear but government faces difficult choices.

Saudi Arabia, the world's largest oil exporter and Opec's most influential member, could support global oil prices by cutting back its own production, but there is little sign it wants to do this. There could be two reasons for this: to try and instil some discipline among fellow Opec oil producers, and perhaps to put the US's burgeoning shale oil and gas industry under pressure.

Money / Issue 30 - 39

MARKEAT REPORT

“ ALTHOUGH SAUDI ARABIA NEEDS OIL PRICES TO BE AROUND $85 IN THE LONGER TERM, IT HAS DEEP POCKETS WITH A RESERVE FUND OF SOME $700BN.

Although Saudi Arabia needs oil prices to be around $85 in the longer term, it has deep pockets with a reserve fund of some $700bn. This means that it can withstand lower prices for some time. Alongside Saudi Arabia, Gulf producers such as the United Arab Emirates and Kuwait have also amassed considerable foreign currency reserves, which means that they could run deficits for several years if necessary.

Other Opec members such as Iran, Iraq and Nigeria, who have greater domestic budgetary demands because of their large population sizes in relation to their oil revenues, have less room for manoeuvre.

Nigeria, which is Africa's biggest oil producer, has seen growth in the rest of its economy but despite this it remains heavily dependent on oil.

Energy sales account for up to 80 per cent of all government revenue and more than 90 per cent of the country's exports.

The technological advances that have allowed energy companies to coax oil and natural gas out of so-called tight shale beds have certainly been a boon to the American energy industry over the last six years. In its closely watched monthly report, the International Energy Agency said US oil production was up 115,000 barrels a day in February, some of it going into bulging storage inventories whose capacity may soon be tested.

"That would inevitably lead to renewed price weakness," the report said.

40 - Money / Issue 30

It has been this growth in US energy production, where gas and oil is extracted from shale formations using hydraulic fracturing or fracking, that has been one of the main drivers of lower oil prices.

With Europe's flagging economies characterised by low inflation and weak growth, any benefits of lower prices would be welcomed by beleaguered governments. Some say that a 10 per cent fall in oil prices should lead to a 0.1 per cent increase in economic output. In general consumers benefit through lower energy prices, but eventually low oil prices do erode the conditions that brought them about.

China, which is set to become the largest net importer of oil, should gain from falling prices.

However, lower oil prices won't fully offset the far wider effects of a slowing economy.

Japan imports nearly all of the oil it uses.

However, lower prices are a mixed blessing because high energy prices had helped to push inflation higher, which has been a key part of

Japanese Prime Minister Shinzo Abe's growth strategy to combat deflation.

India imports 75 per cent of its oil and analysts say falling oil prices will ease its current account deficit. At the same time, the cost of India's fuel subsidies could fall by $2.5bn this year, but only if oil prices stay low.

Economists argue that the oil price collapse would benefit the motorists on the road. In the US, consumers spent $8 billion less on energy on an annual basis in December, but savings aren't expected to peak until March at $16 billion.

Petrol usage gradually increases as the weather warms and doesn't peak until August. The real savings, in other words, will start to hit home when Americans who have been bunkered down for winter start venturing out again. But it's also true that good news simply takes time to sink in. Consumers tend to take some six months of declining gasoline prices to start believing that the cheaper price is there to stay. However, the US job growth, as evidenced in non-farm payroll data, is faster than at any time since 1999.

/ Issue 301086 - 41 The Point Shopping Mall, Level -1, Tigne SliemaMoney | 2060

COUNTRY Interview PROFILE

A MIX OF

NEW & SOLD

Is Dubai still the shopping capital of the world?

hat Dubai is a bit over the top could be the understatement of the century. Of course, there's nothing wrong with that because the most populous and second largest emirate in the United Arab Emirates prides itself in its grandeur, drama and exaggeration.

T

But let's start from the beginning: the airport.

Especially if you're travelling to Dubai for the first time, Dubai's airport is impressive for its sheer size, activity, organisation and opportunities to spend your money. It is a destination in itself: you could spend a week here and not see the same things twice.

But underneath the glitz and glamour is a welloiled machine that has made Dubai what it is today: a trade, travel and cargo hub for the Middle East and South Asia. And it's constantly growing. Last year, a total of 68.9 million passengers passed through Dubai airport, compared with 67.8 million at Heathrow. This made it 2014's busiest airport in the world for international passenger traffic. The oil-rich Gulf city's airport is also strong in cargo, thus fuelling worldwide trade. It is currently sixth in the world for cargo carried.

A taxi ride away, the opulence and excess continue in the city. If you can imagine it anywhere, it is

42 - Money / Issue 30

here. The world's tallest building in the world, the Burj Khalifa, rules Dubai's skyline. The Burj Khalifa is lit up by a Guinness World Record winning LED illumination. Man-made islands and huge shopping malls? Done that. The longest graffiti scroll in the world, entitled Our Journey, is in Dubai. Snow in the middle of the desert? Sure: it's at Ski Dubai, in the Mall of the Emirates.

And it's not just the emirate that lends itself to breaking records. People here are always trying to do something bigger, better, more impressive.

Just a couple of months ago, French climber Alain Robert scaled the Burj Khalifa using just chalk and sticky tape on his fingers.

Given Dubai's scale today both as a travel destination as well as a global business hub, it's hard to imagine that the emirate has such humble beginnings. After years of successful trade, in the 1920s, Dubai started feeling the pinch due to the collapse of the pearl industry and the loss of trade networks during World War II. The turning point was the dredging of Dubai Creek in 1963, which enabled any vessel to dock at the port. Dubai began to expand and when it discovered oil in 1966, it served to accelerate its early development.

However, unlike popular impressions, Dubai's economy is not based on oil. Dubai's oil reserves are limited and today, less than five per cent of Dubai's revenue comes from oil.

Rather, what drives Dubai's economy is the scale of its innovation. Its Western-style model of business and hunger for greatness has inspired the emirate to take innovation further, whether it is in travel, financial services, aviation, tourism, sports and real estate. It is this gigantic drive

The Burj Khalifa is

15 %

Only of the population are Emiratis, the rest are foreigners

Dubai covers an area of

828m TALL

3,885km2

At Ski Dubai,

22,500m2

are covered with real snow all year round

The Dubai Mall has more than

1,200 stores attracts more than

80 million

customer visits a year and shoppers are reported to spend around

The peak temperature is in June-September

48oC

€4bn

18

months

The Dubai metro system is 76km long. It was built in just 18 months

“WHAT DRIVES DUBAI’S ECONOMY IS THE SCALE OF ITS INNOVATION.”

that, in just four decades, has transformed Dubai from a destination no one had ever heard of to one of the world's most futuristic, glamorous and talked-about destinations. True, Hong Kong has the same economic drive and Shanghai a similar appetite for construction: however, nowhere is quite like Dubai.

discounts and special offers - thinking that you are actually saving money. Dubai Mall attracts more than 80 million customer visits a year and shoppers are reported to spend around €4bn a year. Shopping in Dubai is an activity: you shop, stop to have coffee or lunch, and then shop some more: you never leave the mall.

And nowhere is as consumer-driver. What do you do in Dubai? You shop. You spend money while simultaneously - thanks to the constant sales,

Dubai is frequently misunderstood. Yes, there is glitz, excess and sheen. And yes, you can call it superficial. Yet underneath its beauty is

a powerful brain. Which is why Dubai knows where it is going. It knows its future. And its future is, for lack of a better word, futuristic.

Right now, Dubai is building the Dubai Design District, a new neighbourhood that will mix major brand outposts and small boutiques with office space, workshops and artists' studios. And that is just one of its hundreds of construction projects. Because that is the secret of Dubai. It never stops to count its money rather, it reinvests it and reinvents itself.

Money / Issue 30 - 43

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CALAMATTA CUSCHIERI & CO. LTD (CC) IS LICENCED BY THE MFSA. THE HIGH INCOME BOND FUND EURO IS A SUB-FUND OF CALAMATTA CUSCHIERI FUNDS SICAV PLC AND IS AUTHORISED BY THE MFSA. PERFORMANCE FIGURES QUOTED REFER TO THE PAST AND ARE NOT A GUARANTEE FOR FUTURE PERFORMANCE. THE VALUE OF THE INVESTMENT MAY RISE AS WELL AS FALL. INVESTORS MAY INCUR A SUBSCRIPTION CHARGE AND MAY BE SUBJECT TO TAX ON DISTRIBUTIONS. INVESTMENT 44 - Money / Issue 30 SHOULD BASED ON THE CCFS PLC PROSPECTUS, WHICH MAY BE OBTAINED FROM CC OFFICES. ISSUED BY CC.

market ART

THE

S T N I o O CAR T OF THE TIMES Steve Bonello's cartoons are a biting commentary, says Victor Calleja.

I

first got to know Steve Bonello through his work as editorial cartoonist for The Sunday Times of Malta, a sardonic, pithy man whose pen might not be lethal but is certainly memorable.

We then became virtual friends. We traded barbs and some sinful cynicism about humans, hunters, electors, elections and misguided folk in general. We sounded like old men, weary from a life well lived.

But being introduced virtually is just that - an introduction. Wanting to know more about Bonello, I made my way to his house on a cold, blustery day, meandering around the old quaint village of Attard in search of this man of many parts.

I found his house, we part-introduced ourselves (as we had already been virtually introduced) and I was asked to make myself comfortable in his studio. This is one of those near-perfect rooms for someone with an artistic bent. It has plentiful light, books, posters, pens, pencils, a giant computer screen and papers strewn

in collected abandon with old and nascent drawings adorning them.

An unframed Kafka looking sombrely at the coffee cup in front of him seemed to be contemplating whether to take his coffee or not. Would - he seemed to be wondering - the coffee keep him up all night and thoughts of turning into an insect take over? This is Bonello at his unstated best.

I passed a breezy opening comment about Bonello's world and art to set the pace, to make it flow, to ease the words in. Instead of the expected pleasantries he told me not to trade in bullshit.

Told by anyone else this would sound offensive but with Bonello it is akin to what he draws. His barbs are full of fun, but punchy and even pugnacious.

Bonello is cartoonist, artist, writer, amateur photographer, intrepid walker and, till his early

50s, an employee with Air Malta. After leaving the national carrier, Bonello took a job with Arriva.

The bus company, which created a total public transport debacle in the country, must have been the world's best breeding ground for cartoons, bad jokes, and stinging digs. Before it was saved by the Government, which terminated its sorry stay in Malta, Arriva made a few employees including our cartoonist - redundant.

This hardly saved the day for Arriva but it did give Bonello the needed push to launch into writing, artistry and biting cartoons. While in full-time employment, he had already been commissioned as a cartoonist with The Sunday Times. Not a bad CV for the man.

Before he started his lampooning in newspapers he was already dipping into pen and pencil drawings, mainly dark Munch-like stuff with blackness and bleakness the predominant theme.

Money / Issue 30 - 45

ART

Today, besides cartoons, he also takes on design work for books as well as producing sundry collectibles and prints to be turned into clocks, mugs and other receptacles for his devilry in art.

It was when visiting a cartoon exhibition abroad that Bonello's life was transformed. He says it blew his mind open and triggered him into dipping into cartoons professionally. His visual dexterity coupled with his wicked ways then went into overdrive.

“I WILL NOT IGNORE ANYTHING WHICH I THINK DESERVES A COMMENT.�

A mentor and inspiration was the late Maurice Tanti Burlo, better known as Nalizpelra, The Times of Malta cartoonist par excellence for many years till his death a few months ago.

I mention a cartoon I remember by Nalizpelra in which a prime minister's wig - a terribly cheaplooking one to boot - was daringly drawn, or mentioned, for the first time in the mainstream media. An old lion - Dom Mintoff - is seen looking most satisfied after gulping down Alfred Sant, the prime minister in question, in this cartoon sans wig.

Next to the sated lion is a tiny wig. Is it acceptable, I ask Bonello, to visually exploit a person's character?

Bonello practically bows in reverence to the master cartoon: to him that was the best cartoon ever drawn in Malta. The man I was interviewing was coming out loud and clear about what he likes. He doesn't just say it was a great cartoon but one he wishes he had come up with himself. He feels nothing should be too sacred to lampoon but he does accept that depicting Maltese society, even if we made giant strides, still needs some restraint.

So you condone self-censorship, I ask him?

"That is the scary part - but more than censorship it is accepting boundaries - and knowing when to break them without doing it just for the cheap sake of sensationalism," is Bonello's dry explanation.

This gets me to prod Bonello about the Charlie Hebdo shootings. Did such an incident change Bonello and would he now tread more carefully in what he drew and implied?

46 - Money / Issue 30

Bonello, like everyone in the civilised world, was people, the jokers who poke fun to point out Shotby on location at Onepercent, Valley Road, Msida www.onepercent.com.mt shocked to the core the incident, incredulous the deficiencies in society in general, are what how such barbaric ways could even be thought of give oxygen to us in our continuous journey to in today's world. achieve true freedom. "'But no,"' Bonello tells me without any hesitation, "'I didn't, and won't, change. I will not ignore anything which I think deserves a comment."'

He has more anger reserved for the plight of fellow cartoonists jailed and suffering in Pakistan, Turkey and other countries all over the world. That these are hardly mentioned by the media is a sad part of our life. These

Laughing at our pompous governors is what keeps us going, what gives us hope.

Bonello is a true artist with the sharpest of minds and pen. Today all his cartoons are produced on a computer - and our move to the virtual is practically complete. But what I have learnt from seeing, hearing and researching Bonello is that all bullshit aside - he is a true virtuoso.

Money / Issue 30 - 47

GROUND FLOOR, BAYSTREET SHOPPING COMPLEX, ST JULIAN’S

Interview PROMO

EVERYDAY PRACTICALITY Anthony Bernard drives the new BMW 2 Series Gran Tourer in Zadar, Croatia.

W

ith the new BMW 2 Series Gran Tourer, BMW has carved out yet another new vehicle segment. With its generous space, versatility and groundbreaking flexibility, the BMW 2 Series Gran Tourer is the world's first premium compact model to offer up to seven seats and fully meet the mobility requirements of young families.

The international launch of this new model was held in the historic city of Zadar, Croatia.

Here, BMW also set up several static displays to highlight the versatility of the new car and also chose a selection of driving routes around the city, along mountain roads and seaside villages.

Despite its compact dimensions - measuring just 4,556mm long, 1,800mm wide and 1,608mm high - the new BMW 2 Series Gran Tourer offers ample space and a generous luggage compartment that can be extended in capacity from 645 to 805 litres. With the rear-seat backrests folded down, this rises to an impressive 1,905 litres of

48 - Money / Issue 30

load space. Ensuring maximum variability is the standard-fitted fore-aft sliding rear seat bench with a 40:20:40-split backrest that folds down at the press of a button - which allows three child seats to be fitted. Extending the possibilities even further is an optional third row of seats which can be completely lowered into the loading floor.

Maximising the vehicle's everyday practicality is a range of storage options for all three rows of seats, as well as rails on the front-seat backrests with fold-out tables attached. The new BMW 2 Series Gran Tourer is a pioneer in

uniting the segment's traditional attributes such as spatial functionality and comfort - with the hallmark BMW values of dynamics, elegance and premium quality.

Five newly developed turbo engines with three and four cylinders (85kW/116hp to 141kW/192hp, fuel consumption combined: 6.4-3.9 l/100km, 44.1-72.4 mpg, CO2 emissions combined: 149-104 g/km, depending on the specified tyre format and optional equipment) team up with the unique BMW EfficientDynamics package of measures to guarantee a unique driving experience that

Peter Krist, Head of Project BMW 2 Series Gran Tourer at the dinner in Zadar

couples sporty dynamics with maximum efficiency and the lowest CO2 emissions in the segment. The only vehicle in the premium compact class to offer up to seven seats, the BMW 220d xDrive Gran Tourer will be available with all-wheel drive right from market launch.

The assistance systems and information and entertainment options available under the umbrella of BMW ConnectedDrive enhance both driving safety and convenience. Take the head-up display, for instance, which projects all relevant information directly into the driver's field of view, or the traffic jam assistant that helps the driver accelerate, brake and stay in lane.

Thanks to the new myKIDIO app (initially available in Germany only), long journeys can be fun even for younger passengers. The app makes its debut in the BMW 2 Series Gran Tourer and provides appropriate content for children and families on tablets to keep rear passengers entertained. The driver or front passenger remains in complete control of the content being played: the app is easily operated via the iDrive controller and control display as soon as the mobile device is connected to the car. At this point the myKIDIO app enables the control and release of ageappropriate content on the hooked-up tablets, turning long-distance drives into an enjoyable

experience even for children. The control display shows what the children are watching on their tablet at any time, while the kids in the rear can also use the BMW Kids Cockpit to check out information relevant to the journey (e.g. time of arrival, speed and outside temperature) in a simple and fun way.

In addition to the standard version, the new BMW 2 Series Gran Tourer is available in a further four model variants. The Advantage model offers enhanced functionality over the standard model, including, among other features, two-zone automatic air conditioning, park distance control at the rear, cruise control with braking function and a multifunctional steering wheel. The Sport Line model accentuates the sporting aspect with exclusive exterior specifications, special light-alloy wheels and sports seats, while the Luxury Line highlights its exclusivity with chrome applications, select light-alloys and leather appointments. Beyond these, the M Sport model comes with a choice of the M Aerodynamics package, BMW Individual high-gloss Shadow Line, M leather steering wheel and M Sport seats, among other features.

For more information visit www.bmw.com.mt or contact the BMW sales team at Muscats Motors, the official BMW dealership in Malta, on 2326 4582 and e-mail info@mml.mizzi.com.mt.

Anthony Bernard test driving the Gran Tourer in Zadar, Croatia

Money / Issue 30 - 49

Photography Nicky Scicluna Stylist Luke Engerer Hair 1866 The New Age Hair Shop Model Stan Janowicz (Noticed Models Management)

// Tommy Hilfiger polo, €89.90 // Scotch & Soda shorts, at IQ, €74.95 // Pikolinos shoes, at King Shoes, €129.90 //

// Esprit shorts, €49.99 // Scotch & Soda sweatshirt, at IQ, €59.95 //

// Esprit shirt, €35.99 // Esprit t-shirt, €19.99 // Scotch & Soda shorts, at IQ, €69.95 // Pikolinos shoes, at King Shoes, €129.90 //

// Tommy Hilfiger shirt, €99.90 // Scotch & Soda blazer, at IQ, €179.95 // // Ben Sherman shorts, at IQ, €67.50 //

// Henry Cottons polo, at Garbo, €95.00 // Tommy Hilfiger jacket, €249.00 // // Tommy Hilfiger shorts, €99.90 // BHS shoes, €48.00 //

// Tom Tailor blazer, €119.99 // Tom Tailor shorts, €39.99 // Tom Tailor t-shirt, €25.99 //

// Esprit blazer, €69.99 // Scotch & Soda t-shirt, at IQ, €39.95 // Esprit shorts, €49.99 //

Interview GIFTS

BEHOLD

THE

BEAUTY

LOVE DIY This beautiful tool set by WohnGeist includes 24 tools. The case, tool handles and ruler are made from Swiss pear wood, which resists splintering in moist conditions.

Money will make you fall in love with beautiful things.

WE'RE LISTENING The Parrot Zik 2.0 wireless headphones feature noise cancellation, impressive audio quality and intuitive touchpad input, all packed in a design by Philippe Starck.

TO A TEE FAST AS A FERRARI A fantastic third year of collaboration between Ferrari and Hublot is coming to an end.

Following the launch of the first two watches, two new Big Bang Ferrari racing versions have now been unveiled.

56 - Money / Issue 30

This compact tee set by Daines & Hathaway can hold tees, a pitch mark and ball markers.

BEAUTIFUL WRITING Montblanc's Meisterstuck LeGrand Solitaire fountain pen is an exquisite writing instrument. The silver piece is beautifully weighted and the gold-plated nib is carefully crafted to produce a smooth line.

READ AND CYCLE The Golden Age of Handbuilt Bicycles by Rizzoli unveils the design history and incredible craftsmanship behind 50 classic bicycles.

SHAVE THE DAY FINE AND DANDY Take care of your hands and nails with this leatherbound manicure set by Czech & Speake. From the hand and toe nail scissors to the cuticle care tools and file, all these fine tools are handmade.

Il Ceppo is a Florentine firm that has been manufacturing distinct shaving products since 1964. This four-piece shaving set by Il Ceppo Vespucci will get you to a smooth morning start. The pieces are in polished chrome plated finish and gunmetal accents.

WHERE'S THE MONEY This metal studded walled by Saint Laurent is crafted from smooth leather and contains a zipped coin pouch and card slots. Attach it to your jeans with the chain and hook for a bit of rock 'n' roll.

GET GREEN The Eva Solo watering can is perfect when caring for potted plants and urban gardens.

Design meets nature.

Money / Issue 30 - 57

Interview TRAVEL

Vietnam

A VERY GOOD MORNING

Mona Farrugia plays Miss Saigon in Ho Chi Minh City.

T

his is the day and age of telling everybody where you're going, complete with Facebook check-ins from the VIP lounge at the airport - look! I'm so posh! - and a string of selfies by the sea featuring toes set against an azure horizon. But many readers will immediately identify with me when I say that I simply don't. Tell anybody, that is.

It was my father who taught me, well before the internet, let alone social networking, that privacy is the most important thing in life. We come from

58 - Money / Issue 30

an overpopulated island where every breath you take, every move you make, will be registered by neighbours, colleagues and all those who are interested in what everybody else is doing. He would go to great lengths to disguise his and my mother's holidays. At the time, it was because of fears that somebody would break into your house. These days, breaking in can happen in so many ways. And with Wi-Fi connecting us even on planes, we don't even have that no communication slot for comfort. That means one thing: privacy is even more important.

Yet I do tell a few chosen friends (ones I am positive will not break into my house, dad) where I'm going.

"Vietnam? But why?" all those over 50 exclaim. The

30-somethings are excited and have just returned from there. It is quite amazing how Vietnam divides the generations that remember the war and those that don't. I don't, except from films.

My decision is clear: no war memorials, jeeps turned into monuments or battlefield tours.

Vietnam wants to move on: decades of civil war were more than enough.

I also decide to travel with Turkish Airlines, especially because I can't get enough of Ataturk airport and the connections are great. Turkish Airlines don't have first class, only business and economy. That means that when you're flying business, you do so in the pleasant company of the thought that no one has it much better

Food and travel writer Mona Farrugia runs Angelica in Valletta. www.angelicamalta.com

When I found it online, the rate was upwards of €500. So I called them and asked if, since they were not even officially open yet, they would give me a better price. In true Vietnamese bargaining style, I got a 50 per cent discount. Not bad in exchange for an international phone call.

“IT IS DAZZLINGLY BEAUTIFUL AND RICH IN DESIGN AND DETAIL.” than you do further up front. They also have a fabulous lounge with fresh food and chefs on board. Although the latter is a bit of a marketing amuse bouche (the chefs do not cook at all) it turns out to be entertaining and keeps me occupied on the long trip. The service is haphazard and its quality depends highly on which crew you get: I had morose on the way up and fabulously jolly on return. Still, the food is outstanding throughout.

As it was in Ho Chi Minh City, or Saigon as it is affectionately still known. After much confusion as to whether I should stop overnight or not, I decide to recover from my jetlag at The Reverie in Saigon, a newer than new hotel on Nguyen Hue Boulevard.

The Reverie is an outstanding property. It is dazzlingly beautiful and rich in design and detail. The view from the rooms overlooks the river. These days I have learnt to not bother taking photos myself and to just immerse myself mentally and let my eyes wallow. Outside it starts to drizzle. Then it stops. The city lights up: stars and high-rise buildings twinkle like it's Christmas.

Christina, the wonderfully affable rooms manager, asks me if I want to eat at the R&J (Romeo and Juliet) Italian restaurant at The Reverie.

"Seriously?" I ask her. "I come from a country where every other restaurant is Italian."

The last thing I wanted to eat after 16 hours of travelling was Italian fare. So I dine at The Reverie's Chinese restaurant. At 9pm, the diners have already thrown down the napkin and left: in Vietnam, people dine very early.

The food is good but not breathtaking, the result of a kitchen which has not settled at all but one day will.

And when that day comes, it will be great.

Breakfast makes for a very good morning. The kitchen and prep areas, which can be seen from behind the massive glass panels, are the stuff of chefs' dreams. The service is attentive and the girls are absolutely lovely.

Breakfast establishes a pattern: from here on, for three whole weeks I will be served by beautiful women who could all be Miss Vietnam and the food is fresh and inventive. And that's enough to make me fall in love with a country.

24 HOURS IN HO CHI MINH CITY STAY>>The Reverie Saigon. A Leading Hotel of the World that is attracting rave reviews.

EAT>> Khanh Casa, a tearoom with food, noodles, coffee and hipster credentials.

SHOP>> Get lost in the little streets, home to shoe stores like Born in Saigon in Dong Du, a haven of handmade products and beautiful shoes.

For handmade shoes crafted in leather and suede, there is an eight-week lead but they can measure your feet and then deliver later.

EAT>> Ngon, where the delicious menu packs more than 300 fresh items including endless variations of pho, clams, oysters and cockles.

AT NIGHT>> Observatory in District 1 combines cocktails, DJs, music and art shows.

Money / Issue 30 - 59

Interview FOOD

hot

PLATE

Money dishes out a taste of Vietnam.

FRIED CRABS WITH CHILLI SAUCE

You need

1kg sea crabs 1 bunch dried anchovies 1tsp miso soup 1tbsp chilli sauce

Method

1tbsp chilli powder 3tbsp black soy sauce 1tbsp rice wine Garlic, ginger and pepper

Clean the sea crabs, using a brush to wash the legs. Separate the shells and bodies and keep the eggs separately in a bowl. Boil the crabs, including the shells, in 1.5 litres of water with the dried anchovies and miso soup. Cook for five minutes and remove the anchovies.

Mince the garlic and ginger. Put in a pan with the black soy sauce, rice wine, chilli sauce and some water. Stir until you have a consistent sauce. Add the sauce to the pan with the crabs and cook for five minutes. Add pepper.

Serve with steamed rice.

BEEF NOODLE SOUP WITH RICE NOODLES

You need

2kg oxtail, chopped 4tbsp salt 1 garlic bulb 4 onions 150g ginger 2kg beef brisket 185ml fish sauce 80g rock sugar 1.6kg rice noodles 400g sirloin 4 spring onions Coriander 2 chillies 1 lime, cut into wedges

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Method

Submerge the oxtail in cold water, add 3tbsp salt and soak for an hour. To make a spice pouch, dry roast the spices separately until fragrant. Cool and then grind.

Put the spices in a muslin square and tie up tightly. Heat a pan and grill the unpeeled garlic, onions and ginger for 15 minutes. Peel and chop. Put the oxtail, brisket and six litres of cold water in a pot and bring to the boil. When boiling, skim the surface for impurities and reduce the heat. Add the fish sauce, remaining salt, rock sugar, garlic, onions, ginger and spice pouch. Cover and simmer for three hours. Strain the stock. Remove the brisket and slice. Cook the noodles. Serve the noodles with slices of brisket and raw sirloin on top. Pour over the hot stock and garnish with spring onions, coriander and black pepper. Add the chilli and a squeeze of lime.

The Bluesman is a Maltese sound engineer working in New York.

Interview NEW YORK

The

Bluesman’s Blog The Bluesman gets to grips with the weather, presidential hopefuls and police brutality.

I

t's not that we hadn't had cuttingly nippy weather before but this year took the cake for the sheer amount of the white stuff we had and that, thanks to vicious wind chills, stayed and stayed.

My former neighbour gloated from the safety of Seattle where he had absconded to, oblivious for the moment to the increasing drought on the West Coast. It was almost like the weather mantle slipped towards the East and we caught the blizzards normal to states like the Dakotas and Minnesota while balmy Pacific air settled over the West.

The long-term consequence of this situation hovers over California's agriculture. The amount of water required to produce a single almond is 1.1 gallons. Think of the number of almond orchards needed to produce the 80 per cent of the world's supply coming out of this State and then add all the other fruit and veg grown there. It's not all silicon chips and surf and the economy will suffer if production tanks. In fact Governor Jerry Brown's water usage regulations did not cover agriculture in recognition of this possibility.

Brown, quite an interesting character, has been Governor for three terms in various decades, as well as occupying many other positions: Mayor, DA, Linda Ronstadt's boyfriend, Democratic Party presidential hopeful. He deserves a longer piece, but it'll have to wait for another time.

Speaking of prospective candidates, I was present at a dinner given for a bunch of influential (read wealthy and with access to media) people in honour of Governor of Wisconsin Scott Walker. Walker is 'looking into' a presidential run and the attendees were looking into whether they should support him.

An audition, if you will.

Walker, who has been stepping on a lot of non Republican toes has made a number of statements that Right-wingers think offer insight to how well suited for president he is. You know, like how beating down the Trade Unions has prepared him to deal with ISIS. Ex NYC mayor Rudy Giuliani was also present and he gave the Governor a glowing introduction. Walker beamed like a boy scout getting his bob for his job and then spoke of his dealings with the Great State of Wisconsin and God. Giuliani should have ended it there but tactics and discretion are not his strong

62 - Money / Issue 30

points, which is why he had his backside handed to him by Hillary Clinton in the race for senator for New York in 2000, causing him to withdraw.

In a Q&A session Giuliani went off on how this president, referring to Obama, is "not like us", "apologises for America" and "doesn't love America like we do". Pretty strong words which given the presence of Fox, News, Politico and Mort Zuckerman, publisher of the NY Daily News, hit the headlines the next day. Giuliani had a little backtracking to do. And they were worried about whether my mics were on or off?

In other slightly more world-shaking news, a fairly important piece of conflict resolution seems to have been agreed upon and John Kerry brought home the basis of a firm agreement with Iran about their nuclear arsenal aspirations. This was immediately greeted with howls of disappointment from the Right who see the money-making opportunities of McCain's bomb Iran policy evaporating in a cloud of dove feathers. That this is what Iran can be doing without the agreement escapes their logic and given the scrutiny the Iranians are subjecting themselves to after ratification, they will be found out and the sanctions come back on. There's no love lost between Shiites and ISIS so Shiite Iran has an interest in battling and eliminating the Islamic State, but it goes beyond that. It's a good thing for the US to have less hostile countries in the Middle East and the young Iranian population craves the lessening of the hard liners' power there. As folk may recall, the beginnings of a revolution led by students was poised to take off until Bush the W came up with his Axis of Evil thing and eventually without the, at least

moral, support from the outside, the protests were put down. Remember Neda Soltan gunned down at 26 by paramilitary police gunmen? The pause in the movement this caused gave the government a renewed upper hand.

As more video clips surface, highlighting what is not only police brutality but out and out murder and conspiracy to conceal evidence, adding to what the media-sorts like to refer to as the conversation regarding the reform of over-policing methods and reforming the justice system, up pops a case out of Alabama of a fellow released from Huntsville's death row. Anthony Ray Hinton was finally exonerated of the crime he was found guilty of because his family was too poor to get a proper defence and the prosecution's practically blind eye' witness's testimony was allowed to stand. He is among the longest serving condemned prisoner to be freed and the 152nd person exonerated from death row since 1983. His case was taken up by the Equal Justice Initiative, a group of lawyers similar to Barry Scheck's Innocence Project, who successfully presented evidence of innocence. Thankfully these and other groups who give their services for free have arisen as evidence of injustices grows and are a necessary last bastion advocating for inmates.

Finally a sad acknowledgement that Jon Stewart's tenure at the Daily Show will come to an end later this year 17 years after taking over from Craig Kilborn. The show spawned The Colbert Report, John Oliver's This Week Tonight and The Nightly Show.

Intelligent cutting satire. I can't see anyone else filling his shoes. Thank goodness for YouTube.

Money / Issue 30 - 63

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