MONEY OCT/NOV 2017 ISSUE 45

BUSINESS | LIFESTYLE | DESIGN

THE BUSINESS ISSUE ISSUE 45

INTERVIEW

ABIGAIL MAMO GRTU

THE LEADEN FOOT OF POLITICS MANUEL DELIA

ONLINE FRAUD VICTOR PAUL BORG

COVER STORY

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INTERVIEW WITH EMAN PULIS

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CONTENTS

WELCOME The cold-blooded murder of Daphne Caruana Galizia shook the nation: nothing on this scale has rocked our faith in law and order since the killings of Raymond Caruana and, to a greater extent, Karin Grech decades ago. We had hoped that those days of hatred and violence were long behind us.

It is, at the time of writing, too soon to analyse what brought us to this crossroads in our history. At this stage, the only emotion is outrage at the loss of her unique voice, and deep compassion for her family.

For some 25 years, she has informed, shocked and even entertained us.

Even her initials were recognised everywhere and her blog was the place we all went to when something happened, as we knew that she would always have something to say, something provocative, insightful, challenging and sometimes just plain… well, plain Daphne.

We cannot forget that there were times that she simply did not know when to stop, when she became personal, when she allowed the excitement to reveal to overcome any sense of decency, when we read her and cringed. There were times that she destroyed lives and reputations, for reasons which were not always justified, at least not to the readers who knew only the tip of the iceberg.

But whoever her sources were, they went to her because they knew that she was up for it, always ready to publish and be damned.

We lament that her life was a high price to pay but in reality, she has been paying the price for what she wrote for decades. She has sacrificed so much over the years, her need to reveal her truth always much more compelling than the need to be part of the masses – her libel cases were proof of that.

Who else in the media landscape was willing and able to take such risks, to be so fortright, to be so controversial?

And yet her murder is about much more than just the loss of her voice. This is the fact that we as a Maltese nation sensed immediately when the news broke, which encouraged a vigil that very evening, but which we perhaps have not yet fully appreciated: it is the fact that without her, certain truths may never emerge, that the country has no other system on which to rely, that there is no faith in governance to prevent corruption, or law and order organisation to catch its perpetrators, let alone courts we can rely on to ensure that the guilty are punished.

Other media have contributed greatly to the stack of revelations, but there will never be another Daphne. Perhaps someone will rise to fill her shoes, but the fact that she was the first to challenge the highest and most powerful, without fear, makes her a legacy that will be respected for decades to come.

Editor Anthony P. Bernard anthony@moneymag.me Design Peresso Design Studio peresso.webflow.io Printing Print It Distribution Mailbox Direct Marketing Group

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THE BUSINESS ISSUE

OCTOBER 2017

10 THROWING SCAMMERS OFF THE TRAIL IN CYBERSPACE

Victor Paul Borg outlines some of the places where scammers hit gold.

14 THE LEADEN FOOT OF POLITICS

Manuel Delia wishes that more people would heed the warnings about reputational risk and does not hesitate to spell out the dire consequences of failing to do so.

16 QUALITY OVER QUANTITY

Are shopping trends shifting to a willingness to pay more for quality, individual items? Veronica Stivala explores the market.

20 COVER STORY INFINITE CONNECTIONS

MONEY sat down with Eman Pulis to talk about Malta, gaming, SiGMA, and more.

24 WHY PLASTIC IS MAKING THE WORLD GO AROUND David Farrugia has taken over Visa’s operations in Malta at what is sure to be one of the most exciting times for card payments.

26 SHOPPING TILL YOU DROP BY THE WAYSIDE?

Who better for Giselle Borg Olivier to ask than Abigail Mamo, the CEO of the GRTU – Chamber for Small Businesses.

31 CONVERTING THE UNCONVINCED

Kristel Jo Bishop explains how to turn your stumbling blocks into stepping stones.

43 BRAND IS THE KEY TO SUCCESSFUL RECRUITMENT

Brand guru Richard Muscat Azzopardi explains why knowing your company’s identity helps you pick the right people for your team.

47 CREATING LEADERS WORTH FOLLOWING

We all have those we look up to and want to emulate. Richard Muscat Azzopardi explains the role of the influencer in marketing.

50 KEEPING THINGS IN FOCUS

Luke Engerer has developed a wide-ranging portfolio, which has developed over the years into a recognisable brand for fashion shoots. He spoke to MONEY about his inspirations.

58 “WATER, WATER EVERYWHERE NOR ANY DROP TO DRINK” The Bluesman ponders how water that is meant to sustain communities can be sold to companies.

COVER CREDITS Eman Pulis, SiGMA PHOTO BY ALEKSEY LEONOV

READ THE FULL INTERVIEW ON PAGE 20

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.

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SECURITY

THROWING SCAMMERS OFF THE TRAIL IN CYBERSPACE

We give away far too much information about ourserlves on the internet, particularly on social media.

Victor Paul Borg outlines some of the places where scammers hit gold.

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Victor Paul Borg has published more than one million words, as well as hundreds of pictures, published in books and magazines and newspapers in every corner of the world.

H

ow many people know the date of your birthday? Probably hundreds, even thousands, since like most people you probably put down the date of your birthday on social media.

Indeed we broadcast a lot about our personal lives on social media, and all of that constitutes valuable nuggets of information for online fraudsters, scammers and cybercriminals. A profile of our lives can be built up from the information we reveal in drips about ourselves online, and that’s information that scammers can use to target potential victims.

All that information online can also be used for identity theft – a common plot in which criminals assume someone’s identity in a bid to scam or defraud friends or work colleagues, or assume that identity as an alias in committing fraud. It’s nothing less than the stuff of nightmares, to be blamed for crimes someone else committed while disguised as you, at least electronically.

These statistics are hardly surprising given that the survey also found that the Maltese are the third least likely to worry about online shopping systems. All of this can be avoided with some basic precautions.

I shop online regularly – I make most of my purchases online – but I have never been scammed or cheated. My precaution: I only buy from reputable vendors, and that means the large vendors that have a reputation to maintain or small vendors that have built a reputable track record.

The former are easy to identify; you can check out the latter through lateral enquiry.

For example, if a small or obscure vendor also has a presence on Amazon or another large e-commerce site, then that vendor is likely to be reliable. Ditto with a vendor who has many good, verifiable reviews – the key word here is verifiable reviews (not simply reviews put up on the vendor’s site, because those could be made up, but reviews on independent third-party sites, including reviews on social media).

ONE OF THE GREATEST MISTAKES THAT PEOPLE MAKE IS TO SHOP FROM WEBSITES THAT ARE SET UP TO SELL ONE-OFF HOT PRODUCTS THAT THEY MARKET ON SOCIAL MEDIA, PARTICULARLY ON FACEBOOK Luckily, identity theft is not that common, but lesser scams and fraud online are rife. And Malta is particularly hard hit: in an EU survey published in the middle of September, it emerged that Maltese people were among the three top nationals most likely to be targets of online criminality.

A staggering 20% were victims of online shopping fraud and, since around 60% of Maltese people have shopped online at least once, this means that a significant proportion of Maltese people who shop online regularly have been defrauded, or at least cheated – paying for goods that never arrived, goods that were counterfeit or at least not as marketed online.

One of the greatest mistakes that people make is to shop from websites that are set up to sell one-off hot products that they market on social media, particularly on Facebook.

These are usually breakthrough products at good prices that are slickly marketed and offered for sale in time-limited discounts.

The discounts, the expiry of the discount, the hyperbole about how many of the products have been sold or how few remain – these tantalising details have the potential to make us reach for our credit card to secure our specimen before it runs out or before the discount expires. But a thorough examination of these slick websites reveals very little about the provenance of the product or website,

Money / Issue 45 - 11

SECURITY

or anything about the people behind it – you get an address but otherwise it looks like a website hastily cobbled together. Would you trust those websites blindly with your money?

I certainly do not.

Of course, there are also other ways to get defrauded on the internet because so much of our lives and sensitive data are online now. We are also at the mercy of online vendors who store our contact and payment details on their sites – they can get hacked, and our details would leak out in that manner. These companies, especially the large ones, go through pedantic procedures to protect users’ data because their business relies on it: a leak or hack can ruin their reputation and even survival.

From our end, we have to be pedants with passwords. That is most people’s greatest vulnerability: most people still use passwords that they can remember, and these passwords are easy to decipher by sophisticated software that criminals deploy.

Good passwords have to have a combination of letters, symbols, numbers, and one or more letters in upper case. It is, of course, not possible to remember such complex passwords, and that means you have to have a way of recording them. There are two ways

12 - Money / Issue 45

to do that: either write passwords on paper and keep the paper somewhere safe, or write passwords as a combination of memorable words and numbers and symbols in a code only you would know the meaning of (and then write the pointers of the code on paper).

Either way, you should never use the same password for different sites.

The issue of passwords can become very complex given the range of sites and passwords we use nowadays, but there is no simpler way around it (the simpler way would be exposing yourself to criminals – for the same reason I avoid master passwords).

More complex still is to follow the advice of changing passwords every six months. It can be time-consuming and impractical to keep changing passwords, so the least you can do is to have complex passwords in the first place. The EU-wide survey did find that Maltese do change their passwords regularly – half said they had changed their e-mail passwords, a third the passwords of their social media sites.

Scams coming through e-mail are another problematic area. In fact 40% of Maltese respondents in the EU survey also said that they had received bogus e-mails asking for their details, including passwords and

bank details. Most of these e-mails operate on the basis of probability: the criminals send out hundreds of thousands of e-mails in the knowledge that a tiny percentage would fall for their trap. Yet other criminals are using more smartly-targeted e-mails; these build a profile of their target from social media gleanings, then concoct an e-mail that sounds legitimate and get the target to reveal sensitive data in that manner. It’s for this reason that personal stuff we post on social media can be used by criminals – either in scams or fraud attempts, or in identity theft.

Let’s take, for example, a company that you are a regular client of, or a charity you regularly contribute to. A scammer can then send out an e-mail on your birthday from an e-mail address that appears to be originating from that company – it’s easy to imitate legitimate e-mail addresses – in which you are wished a happy birthday and offered to partake in some special offer. It might all seem so legitimate, so you part with sensitive details that are then used to complete an identity theft operation, or hack your credit card details. That’s all it takes.

And that is why I put down a wrong birthday address on my social media sites; it throws potential scammers off trail.

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OPINION

THE LEADEN FOOT OF POLITICS

Manuel Delia wishes that more people would heed the warnings about reputational risk and does not hesitate to spell out the dire consequences of failing to do so.

T

o imagine that a significant and particularly sensitive industry like financial services can exist in a jurisdiction completely indifferent to the political context in which it must operate is unforgivably naïve. Financial services thrive in an environment where words like ‘trust’, ‘confidence’, ‘stability’ and ‘consistency’ can be mouthed without irony.

We have seen Malta build its financial services industry on the back of its transformation from an iron curtain satellite of Libya, to an

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off-shore maverick on to a European Union member state that met ahead of time the strict criteria of euro adoption.

That transformative process was a political program. It was driven by a political class intent on achieving more than treaties and legislation. They needed to shake up the economic foundations of the country and reinvent its culture and work ethic.

Malta of 1987 would have been a grossly unsuitable destination for financial services.

Malta of 2003 was only just coming on the world stage. A political program enabled the industry’s growth. And a political program – or a lack of one – might just as well bring about its downfall.

Even as they put on a brave face and paper over the cracks, local service providers are deeply concerned about the changing attitude of target clients that are nowhere near as enthusiastic as their predecessors were up to a couple of years ago. Intermediaries’ questions are becoming tougher. Due diligence exercises

Emanuel Delia worked for several years in Maltese politics including as press secretary to then prime minister Eddie Fenech Adami and chief of staff for senior government ministers in PN administrations. He is a graduate of the London School Economics and currently works in the software industry.

THE CHIEF JUSTICE SPOKE OF A CULTURE OF IMPUNITY AND POINTED AT THE COMPLICIT INACTIVITY OF THE POLICE AND THE ATTORNEY GENERAL. IT IS STUNNING ENOUGH THAT HE HAD TO SAY IT are going deeper than what would normally be thought due. Alternatives that unsuccessfully competed with Malta’s offer are being considered more favourably.

The pipeline has not dried up but the flow through it is showing worrying signs that should be concentrating minds on causes and how to address them.

Except that the concentration of minds quickly points to fundamental causes that are seemingly beyond repair.

Malta’s Chief Justice in a speech from his throne this year diagnosed the deep-seated illness of rule of law in Malta. The matter has been on the national agenda for some time but up to now it has been a matter of political controversy. It was the main theme of the June 2017 general elections which, however, did not elect the PN who clamoured for the reinstitution of the rule of law but rather the incumbent PL that ignored the issue.

The subsequent takeover of the PN by a Trump-like outsider relegated issues of good governance from the top of the PN’s agenda and since the PN was really the only party speaking about the matter, the political class appears to have lost interest in putting pressure on the corrupt, let alone prosecuting them.

The Chief Justice spoke of a culture of impunity and pointed at the complicit inactivity of the police and the attorney general. It is stunning enough that he had to say it. What is more stunning is the almost universal indifference to his remarks.

and hardship. Huge economic disparities were virtually unknown in post-war Malta. But a combination of aggressive concentration of property in the hands of a favoured land-owning class and a virtual freeze on public sector infrastructural and social developments have created an economy with the right indicators of public sector surplus and full employment but with economic fundamentals that are creating inherent disaffection and uncertainty.

Ninety thousand people, one in five of the population, are at best at risk of poverty if not well and truly trapped in it. For a small island city state that is supposed to be experiencing its greatest ever economic boom that is a staggering statistic.

THE PIPELINE HAS NOT DRIED UP BUT THE FLOW THROUGH IT IS SHOWING WORRYING SIGNS THAT SHOULD BE CONCENTRATING MINDS ON CAUSES AND HOW TO ADDRESS THEM

And of course the fact that evidence of Panama companies set up for senior ministers and aides upon entering office and inexplicable transactions with the Azerbaijan government have all but quit the local political discourse is cultural evidence of that impunity.

The concentration of wealth in a landed class has also unleashed an unstoppable enthusiasm for property development apparently free of any town-planning, particularly with respect to density, allowance for open space and proper provision for mobility and transportation. Development also appears to be entirely divorced from any sound projection of demand and a realistic forecast of what the indigenous population can reasonably be expected to afford.

On a parallel rail, the Archbishop of Malta recently spoke of the formation of an oligarchy that sits on concentrated wealth as ever greater numbers fall into poverty

All these factors, persistently ignored by a political agenda inebriated by quick wins – and, as is alleged, corrupted by personal and illicit motivations – combine to sully

the sheen on Malta’s offer to a financial industry that looks for stable and attractive jurisdictions for its business.

To imagine that just because the majority of the voting population is ambivalent about crumbling rule of law, increased economic inequalities and a degraded environment, these factors are also ignored by people looking for financial service centres is both obtuse and utterly, utterly mistaken.

Banks and pension funds are particularly sensitive to reputational risks, particularly at a time of increased pressures from governments of the jurisdictions these funds typically fly out of. Their analysts will be assessing the prospects of economic sustainability for their destination investment country and the prospect that an investment location might be forced to resort to increased fiscal revenues from their activities.

In this context, one central concern is that the Maltese authorities will find it ever harder to resist EU pressures to harmonise tax rules and reduce fiscal gaps within the single market. Without moral authority, the naturally handicapped political clout of the Maltese, already bereft of Britain’s friendship – their traditional ally in the EU – will continue to suffer.

No one wants to be around if Malta ever faces the cataclysmic collapse experienced

by Cyprus a few years back. If the perception of a risk of this scale gathers ground, the current slowdown in growth will be remembered with fond nostalgia.

Being the harbinger of bad news is an unpopular activity in a country where politics appears to only really make any headway if it drinks Kool-Aid and celebrates the drunken glories of the here and now.

The former leaders of the PN know this full well. It is easy to retort that there has been no marked exodus of the financial services industry from Malta and news of its demise is groundless and premature.

Perhaps.

But one must remember that every single financial services client has no real exit cost if they decide it is time for them to leave. They just fold their laptop and off they go. This is a consummation no one wishes for but unless the political community recognises we have a problem, wishing it away will not fix things.

Money / Issue 45 - 15

RETAIL

QUALITY OVER QUANTITY

Enrika Pizzuto

Saz Mifsud

Are shopping trends shifting to a willingness to pay more for quality, individual items? Veronica Stivala explores the market.

A

few years ago I was in the States, with a travel partner for whom one of the delights of the trip was to try out as many India Pale Ales as was liver-friendly possible.

The beers were not cheap, sometimes costing close to $10 because many were made in private breweries, or because they were particular to the place.

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The trend has gathered pace and such beers, including local ones, are available in Malta, also at a premium price. And this trend is not only specific to beer. From hand-painted mugs, to one-of-a-kind silk scarves, place mats, and so on, people are willing to pay more for something that is special, not mass produced and of good quality. Is this a trend

we will be seeing more of? Is this the future of consumer behaviour?

To answer this question, one first needs to delve into what sets off this interest and the willingness to pay for such items. One reason could be that people are becoming more environmentally conscious. We may

WE MAY BE SEEING A VERY SLOW SHIFT AWAY FROM THE HABIT OF BUYING CHEAP CLOTHES, ONLY TO REPLACE THEM AFTER A SEASON OR TWO be seeing a very slow shift away from the habit of buying cheap clothes, only to replace them after a season or two.

Saz Mifsud, a designer of silk scarves, notes how “slowly people are seeking better quality, long lasting items”. However, she is quick to add: “We still have a long way to go”.

Secondly, cheap clothing is unfortunately many times produced where working conditions are poor and wages are very low. “It is so important to know where your product is coming from and sometimes this means spending more,” asserts Mifsud.

Finally, in Malta, people seem to be becoming more interested in shopping for local brands.

“They feel that their item is special because it in some way or another forms part of their cultural identity,” notes Mifsud.

One’s cultural identity can be seen as the way one fits into society, into its history, its story. Indeed the idea of a story behind a product appears to play a big role in the way we relate to products. Blake Mycoskie in his book Start Something That Matters states that “when you have a memorable story about who you are and what your mission

is, your success no longer depends on how experienced you are or how many degrees you have or who you know. A good story transcends boundaries, breaks barriers, and opens doors. It is a key not only to starting a business but also to clarifying your own personal identity and choices”.

Enrika Pizzuto, founder of The Eclecticist, a boutique shop whose aim is “to make consumers more aware of good quality products designed to last, by offering selections built around unique qualities”, also sees the importance of the story behind a product: “Mentalities are changing, and even though most consumers are caught up in purchasing the mainstream, mass-produced and copied products just because they are cheaper, I feel societies are becoming more aware and conscious of good quality, design products, and pieces that were designed with a story, pieces that have survived and can survive the essence of time.”

The story behind the product must, naturally, also appeal to the retailer, who in turn sells the product. In Pizzuto’s words: “Besides the obvious qualities which are usually the material and details, I am usually also interested in the designer, the reason

for the choice or material, why and how they were designed and what makes that particular product better than others. Only once these questions are answered can people start to understand why certain products cost more than others.”

Of course, a story is not enough for a business to thrive and, among other things, having a vision is key to success. “Having a strong vision is what makes one brand stand out more than another,” comments Mifsud.

So what does the future of retail look like?

Awareness about the origins of the products we buy still has a long way to go. Mifsud believes we need to keep spreading awareness on the importance of quality

Money / Issue 45 - 17

RETAIL

SOCIETIES ARE BECOMING MORE AWARE AND CONSCIOUS OF GOOD QUALITY, DESIGN PRODUCTS, AND PIECES THAT WERE DESIGNED WITH A STORY products created in safe, fair working environments. But things are looking up in terms of what the consumer is interested in: “People are increasingly becoming more interested in made-to-measure garments and this is a very exciting thing for both designer and client. It allows the designer to create something new with each new client while giving the client the dress of their dreams,” she said.

Quality items do not go out of fashion. This, the Eclecticist’s motto, stems from Pizzuto’s scepticism about fashion and trends. In her view, well-designed pieces will remain beautiful despite current style trends: Rather than buying ‘cheaper’ products, that will highly likely need to be replaced in a matter of time, she prefers to invest in pieces that look good whenever, wherever, and which contribute to the perfect definition of the eclectic style.

This certainly is a more ecologically-friendly outlook. While many of us surely wish that retail business would shift entirely to one that is more world-conscious, one has to keep in mind that what is required is a huge shift in mentality: just because something is cheap, it does not mean that you are saving money, because you will soon need to buy another one.

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One also cannot ignore the consumerist society we live in, where we are constantly being bombarded with advertising to buy, buy, buy. Will things change? I hope so. Time will tell, and it is up to each and every one of us to influence a shift in purchasing items that have been fairly produced and created.

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INTERVIEW

INFINITE CONNECTIONS

“I’m just a salesman that’s been hustling since day one” says Eman Pulis of himself, but the results he and his projects achieve seem to belie this simple philosophy. Curious, MONEY sat down with Eman Pulis to talk about Malta, gaming, SiGMA, and more.

E

man Pulis, best known for the runaway success of SiGMA, has described himself as a “startup-romantic”. But what does this mean, and how does it describe Pulis’ business approach?

“I have been a startup all my life, trying new things, often failing because I didn’t know better and also because I could have used a little more support and mentoring,” intones Pulis.

Though he still considers his projects to be startups, albeit with a solid proof of concept, Pulis has seen healthy growth across all of them, be they events (SiGMA, Affiliate Grand Slam), software development (SMSwarriors), or affiliation (BonusVikings).

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A rarity in that he has a policy of limiting his businesses’ scope, Pulis has made it clear that he does not do business in gambling outside of SiGMA. “I have been unofficially blessed with the privilege of putting the spotlight on Malta thanks to this event called SiGMA and I want to carry this project with no conflicting interests. Imagine me, as the CEO of SiGMA, trying to sell sponsorship to a games developer if I have vested interests in another game development company? Or trying to sell a casino a booth while at the same time competing for traffic with my own casino brand. Would these companies trust their brands with me and with SiGMA?”

As a result of this line of thinking, Pulis has respectfully declined offers for shares in a number of companies, even when profits were lucrative. Pulis believes that his neutrality is what made them approach him or SiGMA in the first place and that with this ‘neutrality clause’, they can rest easy that Pulis would never have vested interests in any other gaming company.

“This, I must say, is an intangible asset that I hold very dear,” continues Pulis.

The journey, however, started a thousand paces ago. Recounting the early days, Pulis says that his experience was purely working with events and that his knowledge in gaming

I HAVE BEEN UNOFFICIALLY BLESSED WITH THE PRIVILEGE OF PUTTING THE SPOTLIGHT ON MALTA THANKS TO THIS EVENT CALLED SIGMA AND I WANT TO CARRY THIS PROJECT WITH NO CONFLICTING INTERESTS later on, a student representative on university senate. I became an ‘eternal student’, and I kept doing events – to the extent that every time I graduated, I started a new degree the following Autumn, mainly so I could stay close to campus and the students – my event attendees. Then I got older, as happens, and my age gap with the rest of the students grew.”

Photo by Aleksey Leonov

Malta Gaming Awards, 22nd November, MFCC www.gamingawards.com.mt

four years ago was “embarrassing”: “I couldn’t tell the difference between an affiliate, an operator and a vendor,” he says.

“I started putting on events as a university student; a party with Bob Sinclar back in 2006 attracted 6,000 party-goers. These parties and concerts catapulted me to the heart of campus life; I became president of the Malta University Sports Club, then a student council member and

Pulis realised that it was time for reinvention – from parties he moved to concerts, then to expos: photographic expos, a boat show and then a gaming expo – SiGMA. Fast forward to the present day, and SiGMA is king of the crop in igaming events. It has doubled in size year on year for the past four years, and in 2017, is anticipating 300 sponsors and exhibitors, 150 speakers, and around 7,000 delegates. The floor plan has been sold out for six months, which Pulis jokes is “unprecedented in this industry”.

True to his startup mentality, a massive undertaking like SiGMA is run and manned by

a team of just five year round, with numbers being bolstered closer to the show. Pulis readily admits he is somewhat obsessive, striving for perfection in every little step the team makes – be it content writing, manning of stands or customer service.

“The bigger the show gets the more I realise the importance of delegating and resisting the temptation to micromanage everything. To this extent, surrounding yourself with the best talent is paramount,” he continues.

So how does SiGMA’s success translate into more startup love for Pulis and his team?

“I am a startup romantic myself and the energy around some startups is truly mesmerising. Last year we had eight startups at SiGMA; this year we have close to 100.

Jarek, Sophie, and myself went hammer and tongs on the startups this year, investing a lot of money to help connect bright minds with deep pockets and experienced mentors.”

Crucially, neither SiGMA nor Pulis charge anything to startups, and yet they are provided with mentoring, office space in Malta, a free booth and and also, a big number of venture capitalists and investors – many from outside gaming – who are fond of experimenting with this vertical.

“This is an important point worth pointing out,” says Pulis. “I think having such VCs interested in gaming for the first time is doing a lot of good to gaming – fuelling the industry with brain power and expertise which could have been lacking before.”

Pulis is not averse to big, bold statements that grab attention either, and he certainly follows up the statements with big actions. Last year, SiGMA gave away 300 flights. This year, that number is up to a 1,000.

H.E. the President of Malta, at the Malta Gaming Awards 2016

“Last year we were inspired by the action movie 300; this year we upped the ante. A thousand flights is €500,000 worth of flights and VIP dinners to attract the best minds and industry

Money / Issue 45 - 21

INTERVIEW

SiGMA 2016 Expo

shifters to SiGMA. We took heed of advice and are flying 500 affiliates to keep our exhibiting operators happy, as well as 500 C-level operators to keep our exhibiting vendors happy.

Anyone exhibiting at the show is guaranteed to meet new faces and fresh business leads.

Flights aside, SiGMA 2017, November, in Malta. What should we know?

And it’s not just venues. An endorsement by the IGML is big news, as is the GPI European Poker Conference, which shifted to Malta at SiGMA this year. There will be dedicated conferences on DFS, blockchain and cryptocurrencies, bingo, live gaming, and a top-tier SEO masterclass. New world-class investors have joined the fray, including Mark Blandfort, Simon Collins, Walker Parker, Julie Meyer and many more.

“After three years, we felt the time was right to shift to a bigger venue that meets the needs of a growing show. This year SiGMA will be situated a stone’s throw away from the charming ancient city of Mdina.

By day, the focus will be at the Malta Fairs and Convention Centre (MFCC), then once the sun sets, the focus will shift back to

“World class brands are gracing our floor plan for the first time – Bet365, Ladbrokes, PokerStars, Processing.com, Kindred, iGaming Platform, NetRefer, MyAffiliates, Twin, Casino Cruise, White Hat Gaming, Ikibu, Viarsys, Authentic Gaming, Blexr, Booming Games, Gambling Affiliation, Af2Af and many more first time exhibitors are joining us.”

“Ours is a long-term plan – to keep increasing awareness about the show and about Malta.

I’m keeping my best fingers crossed, hoping that it will work!”

SiGMA 2016 Expo

22 - Money / Issue 45

the official hotel, Corinthia San Gorg, and the surrounding restaurants in the city that seldom sleeps, St Julian’s.”

WE WANT AFFILIATES TO WALK ACROSS THE SIGMA FLOOR PLAN KNOWING THAT ALL EXHIBITING OPERATORS ARE GENUINE

From startup to expansion and consolidation; what does Pulis have in mind for the future?

Will we see a SiGMA event elsewhere in Europe, or maybe Asia, or the Americas?

“Only time will tell whether we expand the show further – for the time being SiGMA belongs in Malta and there is little scope for us to relocate elsewhere. Malta has been very kind to us and we feel right at home with the show in this charming Mediterranean state.”

EVERY TIME I GRADUATED, I STARTED A NEW DEGREE THE FOLLOWING AUTUMN, MAINLY SO I COULD STAY CLOSE TO CAMPUS AND THE STUDENTS Additionally, in an unprecedented move in the industry, anyone who purchased stand space at SiGMA needed to be approved by at least two judges.

“We want affiliates to walk across the SiGMA floor plan knowing that all exhibiting operators are genuine, that the traffic sent to them will be handled well, and that commissions are paid in full and in due time,” said Pulis.

that the event works. Ultimately everyone wants to make money and if you can provide operators with solid affiliates and vendors with C-level operators on their booths, you bet they’ll sign up eventually,” quips Pulis.

SiGMA isn’t in the business of just putting up a two-day event every year. Far from that, Pulis insists that his team’s relationship with the exhibitors is year round.

“Throughout the rest of the year we make sure to keep the industry tight together by organising lavish dinners in Malta for operators and vendors as well as two Affiliate Grand Slams outside of Malta.

“Ultimately it’s people doing business with people – we’re there to take the backseat, never the limelight, and to facilitate an ideal business environment and help business flourish.”

So what is it exactly that convinced companies such as Bet365, Ladbrokes, and PokerStars to join SiGMA this year?

“I’m just a salesman that’s been hustling since day one. I’ve been turned down hundreds of times, but sometimes you just don’t accept ‘no’ for an answer because you know you have a winning formula, so you patiently wait for the following year, for another chance for a sales pitch. With the bigger companies you just need to be a little more patient and show

SiGMA 2016 Expo

CAREERS CONVENTION AT SIGMA It is well-known that recruitment remains one of the trickiest aspects, often leaving developers in short supply and an increasing number of graduates looking to form part of the gaming industry.

This is where SiGMA can provide an excellent platform on Maltese shores. For this reason, on day two of SiGMA, November 24, the doors will be open to all ICT, law, accountancy and other graduates between 2pm and 6pm. It is strongly encouraged that HR departments of exhibiting gaming companies be present on day two of the summit. Any graduate interested in joining the gaming industry is encouraged to update CV, print multiple copies, or bring business cards and head to the SiGMA Careers Convention, where hundreds of gaming companies will be recruiting. www.gamingawards.com.mt ; www.sigma.com.mt

Money / Issue 45 - 23

INTERVIEW

WHY PLASTIC IS MAKING THE WORLD GO AROUND...

David Farrugia has taken over Visa’s operations in Malta at what is sure to be one of the most exciting times for card payments.

Online purchases in Malta actually overtook bricks and mortar ones for the first-time last year, according to the Malta Communications Authority statistics. It must be an exciting time for you to take up your post: where do you see things going in the next five years?

The payments industry has been constantly growing and evolving from the day it was created. Thanks to various payment technologies, consumers can now buy products and services on the internet, through

24 - Money / Issue 45

an app, on the phone or face to face. With the introduction of new products and services, new payment systems are created to enable the sale of such products.

Malta is still a very cheque- and cash-based economy, although this is slowly changing.

From published Central Bank statistics it is clear that most Maltese citizens already own a card. Card payments are available; however, we need to work to improve usage of card payments – and the benefits they offer.

David Farrugia

The introduction of ‘contactless’ payments in Malta should make the payment process for low value payments a lot faster and smoother. With fewer cash-based payments, merchants do not need long end-of-day reconciliation processes.

The cost of carrying cash is never really quantified as if it were, it would make merchants more readily accept electronic forms of payments over cheques and cash! If this shift in payment habits were to change in the near future, I would not be surprised if card payments were to overtake e-commerce payments in Malta.

HISTORY HAS SHOWN THAT THE BEST WAY TO COMBAT FRAUD IS TO BE AHEAD OF THE CURVE AND NOT BE AFRAID OF INTRODUCING NEW TECHNOLOGY I do believe that we will see a change in how payments are effected through new factors such as mobile payments, wearables and other technologies being developed

by Visa. Unfortunately, Malta tends to be a late entrant in terms of adoption of new payment technologies but I will be working hard to make sure that that changes. Together with the payment institutions, government entities and various Maltese retailers I think it is possible to bring Malta up to speed in adopting electronic payments.

Visa issued a new One Vision document last August, which gave the company’s mission as: “To connect the world through the most innovative, reliable and secure digital payment network that enables individuals, businesses and economies to thrive”. What innovations should we expect?

Visa has always been at the forefront of technology. We see ourselves as a technology company facilitating payments. Visa has deployed technologies like tokenisation which transforms sensitive account data into a form that cannot be used by criminals for fraud. Visa Token Service replaces the 16-digit account number, with a unique digital identifier called a token, which enables payments to be processed without exposing actual account details that could be potentially compromised.

Much has been written about recent breakthroughs in AI and the emerging field of deep learning. The ability of powerful computers and algorithms to understand and analyse vast amounts of data has led to breakthroughs in speech and image recognition, robotics and intelligent devices, such as self-driving cars.

At the Visa Futures event, held in September 2017 new technologies were also displayed such as connected shopping carts and other devices, as well as a number of startup companies presenting their products all linked to the payment eco-system.

The mission statement refers to the network being reliable and secure, but are the advances in technology also creating more opportunities for fraud?

Electronic payments have managed to effectively eradicate fake money. In Malta, we still see merchants testing euro notes to ensure they are valid. If all payments were made electronically, this would be a problem of the past. History has shown that the best way to combat fraud is to be ahead of the curve and not afraid of introducing new technology.

The list of products and services created

by Visa to ensure safety and peace of mind for users of the card payment system is endless. Visa is applying AI and machine learning to reduce fraud and address cyberattacks by harnessing the vast amounts of data flowing through VisaNet. VisaNet is effectively the network of all the banks and Visa-connected devices

around the world. Specialist teams have Visa Advanced Authorisation, Visa Risk Manager, Visa Consumer Authentication Services, CyberSource Decision Manager and Visa Checkout Merchant Risk Advice Score at their disposal, which all use machine learning models.

In 2015, Visa launched Visa Research to apply AI, machine learning and deep learning in areas such as data analytics, security and the future of commerce.

Blockchain seems to be the current buzz word. Does it have any applications for a company like Visa?

Blockchain continues to mature. Discussions on blockchain, distributed ledgers, and related technologies – including a fair amount of hype – have begun to come together around a sense that there is much to appreciate in the technology, but there is also a fundamental lack of expertise as well as a lack of clarity on many issues regarding how the technologies work, a common vocabulary for discussing it, and where it will best be applied.

Visa is always on the lookout for new technologies as long as it brings a safe and regulated way of making payments.

Should clarity and expertise on blockchain be made available, Visa is always open to discuss new opportunities.

To encourage the proliferation of technologies that improve and expand our reach, we are making Visa – which was built on the notion of universal access – even more open.

We have transformed our proprietary technology network, VisaNet, into the world’s largest open commerce platform. The Visa Developer Platform provides application developers with access to VisaNet, as well as certain products, services and technology via Application Protocol Interfaces (APIs) – in a virtual sandbox that allows anyone to transform great ideas into new commerce experiences.

We are fundamentally changing the VisaNet architecture to enable global and domestic processing to be quick and secure. We are working with clients and governments to support their domestic processing needs.

Money / Issue 45 - 25

RETAILING

SHOPPING TILL YOU DROP…

BY THE WAYSIDE?

Is the retail industry finding new ways to overcome threats like online shopping and the death of the high street. Who better for Giselle Borg Olivier to ask than Abigail Mamo, the CEO of the GRTU – Chamber for Small Businesses.

In recent years, shopping malls have become a commonplace sight in Malta and Gozo with developments opting for the ‘under one roof’ convenience approach. Is this infrastructure seen as a threat to the standalone high street shops? Do consumers prefer one over the other?

26 - Money / Issue 45

The successful development of shopping malls has certainly increased competition both in terms of numbers and quality.

There is, in fact, evidence that businesses in shopping malls have been faring better on the whole. This emerged from surveys carried out by the GRTU but also when

speaking to individuals who have their shops in both high streets and shopping malls.

With today’s brisk pace of life consumers are looking for increased convenience and better-quality family time. Within shopping malls, consumers have access to numerous

the shift online because that is where the consumer is shopping.

Abigail Mamo

products under one roof, while enjoying the comfort of being indoors – whether providing shelter in bad weather, or airconditioning during the warmer months.

Time is another commodity that is highly valued, so being able to use a mall car park adds to the convenience and other added value such as easy access to public conveniences, collective entertainment, etc... Having said that, this does not mean that shops located in high streets are not in demand. We are working with these shops because they have bigger challenges to overcome in order to win the consumer’s attention.

Data from 2015 reports that 51% of Maltese people shop online, while another report from 2016 indicates that 70% of shoppers conduct their research online before purchasing goods. What is the pull factor that encourages consumers to shop online rather than going to a retail outlet?

If convenience is the reason, then isn’t that a worrying factor considering the small size of the island?

Convenience is, in fact, a main factor and this is understandable considering the time everyone wastes stuck in traffic and then looking for a parking space. Going out to the shops is something that needs to be scheduled and planned because it is time consuming.

While Maltese businesses are increasingly being found online, these are still limited, and it’s important that local businesses make

Another reality is that consumers find more competitive prices online. It’s true that cheaper prices are not the only thing that consumers look for, especially when considering boutique shops with niche products, excellent customer service, and the shopping experience – which cannot be replicated online; however, prices are often the deciding factor when making a purchase online. Trading online poses different challenges to having a retail outlet, because nowadays it’s no longer a matter of just allowing customers to purchase your products online at the same offline price.

Online, a Maltese business is competing with the ‘big boys’ in terms of economies of scale and businesses with no overheads who only have their merchandise, warehousing and delivery to compute in the price tag. The business model therefore needs to change to be competitive online.

Most international fashion retailers now label items with a multi-currency tag; however, there are still local retailers that cover the original euro price with their inflated uuro price. Is that legal? And do they really have the grounds to charge extra on each item?

PEOPLE WORKING ON THE ROAD SUCH AS DELIVERY PEOPLE, CHAUFFEUR DRIVERS AND COACH DRIVERS SHOULD HAVE A SPECIFIC LICENCE WITH SPACES IDENTIFIED WHERE THEY WOULD BE ALLOWED TO PARK ‘ILLEGALLY’ SO AS TO ALLOW FOR PICK-UPS/ DROP OFFS

The euro has been adopted as the Maltese currency since 2008 and is the only legal tender.

This means that retailers are obliged to only accept this currency. As we know, however, the absolute majority of retailers accept other currencies on a regular basis. International retailers sell on numerous markets with different currencies and they print standard price tags with multiple currencies.

With regard to the price that local retailers sell at, that is entirely up to them. Retailers in Malta have additional costs which they have to incorporate in the price tag, mainly due to the country’s insularity and lack of economies of scale.

What are your views on the recent trend of importing goods from Sicily? What market surveillance is in place to control such activities?

Goods can be imported from Sicily and this is being done both by businesses and consumers directly. Market surveillance is essential in this case but we do not feel we are doing enough. Market surveillance is important primarily to know what is coming into the island. At least some of the goods coming in are checked for quality – mainly for health and safety reasons – and are treated in the same way as is done with local retailers.

Market surveillance is also important to guarantee a level playing field. VAT must be paid in Malta for services and goods purchased by Maltese consumers, while excise tax must be paid within days of importation.

Recently the plight of delivery men was in the news; the traffic and parking situation in Malta is already dire without delivery vans double parking. What feasible solutions can help them do their job without affecting other motorists?

Delivery persons find it impossible to park properly. Driving all day in the traffic, trying to find a good place to stop, and then having to carry goods back and forth is a job certainly not envied by many of us. The Maltese roads are very limited and we need to be patient, understanding and sensitive to the needs of different motorists.

Loading/unloading bays are by far not enough and abuse of the few that exist is not uncommon.

Money / Issue 45 - 27

RETAILING

One must consider that, come rain or shine, delivery people spend their day driving around in far from ideal conditions to deliver their goods to clients. Due to these traffic limitations, businesses have had to increase their costs by sending two delivery people with every van because the parking situation is such a nightmare.

GRTU believes that we need to find ways to alleviate the pressure until more longterm solutions are found. People working on the road such as delivery people, chauffeur drivers and coach drivers should have a specific licence with spaces identified where they would be allowed to park ‘illegally’ so as to allow for pick-ups/drop offs. This allowance would depend on the size of the vehicle, the length of the stay, and whether the driver will stay in the vehicle. Double parking might also be included as a potential ‘solution’, provided that the vehicle doesn’t create a traffic bottleneck and doesn’t park in a dangerous place, of course.

As part of its electoral manifesto, the government promised to compensate workers for public holidays that fall on weekends; the GRTU, along with other lobby groups, have asked for real compensation. What is it that the GRTU wants to secure in this regard?

Loss of productivity is the biggest worry for businesses. Those in favour are arguing that these specific public holidays were taken away in a time of economic downturn, so now that we are experiencing an economic boom they should be given back. The argument, however, is not that simple.

RETAILERS IN MALTA HAVE ADDITIONAL COSTS WHICH THEY HAVE TO INCORPORATE IN THE PRICE TAG, MAINLY DUE TO THE COUNTRY’S INSULARITY AND LACK OF ECONOMIES OF SCALE 28 - Money / Issue 45

Even if one had to disregard the fact that, as things stand, Malta is already at the top of the charts among countries with the highest number of public holidays and sick leave, we are facing a human resources crisis. Enterprises are struggling and this has become the biggest challenge facing businesses today. Employing someone has become extremely difficult and expensive; so, at a time when human resources are already insufficient, it is difficult to forgo another four days of productivity next year and six days the following year. This decision impacts both large companies, where the total cost will increase in the millions, as well as small companies which don’t have surplus personnel to fall back on.

The bottom line is that somebody will need to work on these days and the cost to cover this would be significant. We therefore are looking at things in this context.

Our plans for the future are clear and well planned. Further growth is what we will be pursuing, ensuring our continuous support to the Maltese

economy

whilst

protecting

the

investment of our shareholders.

Our vision is clear.

Issued by: Bank of Valletta p.l.c., 58, Triq San Ĺťakkarija, Il-Belt Valletta VLT 1130, Malta

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bov.com

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2131 2020

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INSIGHT

Kristel Jo Bishop is project manager at Keen Ltd. She has been working in e-Business and digital projects for the past 17 years. She has lectured on behalf of different Universities and other institutions in topics related to digital marketing strategies.

CONVERTING THE UNCONVINCED

Stuck in a CRO rut? Kristel Jo Bishop explains how to turn your stumbling blocks into stepping stones. n today’s digital world, business people often claim that they are swamped with data, drowning in numbers and terms that seem to originate from a rare language, sounding either like a contagious disease or alphabet practice by a first grader.

I

about making window shoppers enquire, book or request and turn them into eventually loyal customers. CRO is all about outstanding userexperience, audience-oriented web components and continuous improvement by observation, testing, analysis and best practice.

the number of times people clicked on the advert within a page, as this is ultimately what generates revenue. In short, any kind of website can be optimised to improve its performance and, really and truly, there’s no business that is exempt from considering CRO.

Considering the fact that the phrase “time is money” has never been as true and crucial to businesses as it is in today’s digital era, focusing on the right figures is vital to survive and prosper. There is one component in particular that you should never ignore: the conversion rate. This piece of data is the backbone of the return on investment generated through your company’s website.

This could be a customer who fills up a contact form, makes a purchase, views a video, downloads a pdf, uses a chat facility, clicks on a banner, takes up an offer, or places a booking.

Benefits and assets of CRO

What does CRO actually stand for?

Stripping it down to its basics, the conversion rate is a measure of the behaviour that the site owner is expecting from visitors. While Search Engine Optimisation (SEO) focuses on increasing valuable traffic towards your web presence, conversion rate optimisation (CRO) is

Does my business/customer need CRO? Naturally, if you have an online store, the conversion metric is immediately grasped as the number of purchases, but this is a limited view of the expression. If you provide a business-to-business service, your conversion rate might be the number of people who used the contact form that generates leads or subscribed to your newsletter.

For a blogger who is selling advertising spaces on the website, the conversion rate can be

The main objective of conversion rate optimisation is transforming website traffic into sales, in other words moving more people through the sales funnel. Once someone has landed on your site and is browsing your pages, the site should be intuitive enough to nudge the user into the right direction until the person makes a purchase, asks for an appointment or becomes the next lead.

Ultimately, the advantages of conversion rate optimisation are about capturing more opportunities for generating revenue. This can be in terms of both guiding new customers and selling more to the same customers. From a strategic perspective, conversion rate analysis

Money / Issue 45 - 31

INSIGHT

SOMETIMES EVEN A SIMPLE CHANGE IN THE LOCATION OF A BUTTON WILL HAVE A DRAMATIC IMPACT ON THE NUMBER OF TIMES IT IS USED and optimisation cannot be a secondary issue, not least because it is tied to short-term benefits like boosting the cash-flow as well as long-run benefits such as establishing a lasting relationship with customers that bolsters the value of the brand itself.

Conversion rate optimisation is costeffective and actually lowers the cost of customer acquisition. At the same time, the extra money gained can be spent to acquire additional new users through the most effective funnels determined during your initial analysis and research.

The constant cycle of learning and enhancement is a great way to holistically understand the needs and shifts of your target audience and to complement efforts within your marketing mix.

Steps towards conversion optimisation So where do you start? If you already have people visiting your website, then you are at a good starting point. The first task is identifying which conversions need to be tracked, and ensuring that the website analytics have been set up appropriately to follow these action points in the future.

CRO is an ongoing process that kicks off with an in-depth exercise of the overall business environment, the current website statistics and conversion rate. The customers’ activity online has to be viewed as a journey during which their interests are nurtured, until they take the desired action. Conversion rate optimisation can only work well when we wear the customers’ shoes and try to follow their course of action.

Experts will look into what is helping or hindering the customer during the flow. The relevant page/s are scrutinised in detail in order to ensure that facets like aesthetic balance, information needs, and calls-for-action are being handled in the most appropriate way. It is worth noting that if the customer journey is made up of a series of steps, then it is paramount to optimise the whole sequence.

In this process, specific tools can bring more insight and help decisions. For example, heat-mapping software can capture real visitor sessions and once you have a good amount of these visits, then you might pinpoint major stumbling blocks on the website.

32 - Money / Issue 45

Every insight has to be translated either into a proactive or reactive measure for implementation. Reactive fixes are those that are aimed at sorting out particular problems and are usually the first to be tackled as they might indicate some glaring negative issue.

Typically, they involve changes in wording related to calls-for-action and the size, colour and location of important buttons.

Taking a proactive stance usually entails being more sales-savvy and roping in tactics on the site, such as suggestions for a related item or complementing options.

An A/B testing tool is usually of great help because it eliminates guesswork and helps to implement the right decision relatively quickly. Sometimes even a simple change in the location of a button will have a dramatic impact on the number of times it is used. In such a case, it pays to try out two or more options via an A/B testing tool and monitor which location is the most effective before rolling out the changes on the live site.

THE MAIN OBJECTIVE OF CONVERSION RATE OPTIMISATION …

IS MOVING MORE PEOPLE THROUGH THE SALES FUNNEL

that the customer is still on track, following the journey that eventually results in the ‘desired’ behaviour, be that of a purchase, a download, or a subscription.

One has to make it easier for the user by utilising a call-to-action that is direct, specific and clear.

A website with a poor navigational system or a cluttered and disorganised menu does not yield a delightful online experience.

Big online stores are known to go through sorting exercises related to the menus and the products they sell, in order to ensure that they are providing different ways for the user to reach the same information. For example, furniture can be presented according to type (kitchens, bedrooms, etc.) but the same products can also be presented according to their style, colour and price range. Having navigational systems with appropriate filters is a step in the right direction.

Apart from a user-centric menu, the website has to provide search facilities that allow the user to conduct specific searches.

Soliciting a feeling of ‘trust’ is also highly important to ensure that prospective customers who are interested in acquiring a service or product from you are not thrown off kilter because the website lacks elements that indicate safety, security and a good quality service. Testimonials, reviews and certifications are key elements that contribute to increasing conversions.

Implementing the hints such as the above will bring in a visible surge in the conversion rate and there is no doubt that a 20% boost can be achieved.

Tips & best practice

The cycle of analysis & adaptation

First impressions always count. The number one tip is looking at your website in terms of page fold (the first screen that downloads in front of the user). You have to shy away from being critical about your own website and try to decipher if there is anything above the fold that causes the business to be ditched by the customer. In an age where no one wants to wait, a quick loading time and mobile response website are two essential factors that can improve your conversion rate.

Patience is a virtue. Indeed, in order for the conversion magic to happen, it usually takes a minimum of six to 12 months.

Improving and optimising your website is really a continuous task, based on what works best for your target audience through comprehensive testing and analysis. The more we understand the data captured and the results from testing, the greater the opportunity to improve the conversion rate.

Thus, it is important to keep the focus on optimising to retain loyal customers and win new ones, which will eventually result in a steady and habitual business growth.

Moving on to imagery and the visual appeal of the website, an image is indeed worth a thousand words and in this case, the images are an important force to ensure

Understand your user’s stumbling blocks and convert these into your stepping stones!

If you don’t have time to read this, you definitely need to read this.

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For more information Call 2380 2389 Visit one of our branches Visit hsbc.com.mt/fusion

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PROMO

MALTA’S GATEWAY TO

ONLINE EXPORT

Companies are getting more and more sales thanks to disappearing borders, exporting seamlessly across countries. Express Trailers realised that there was a real need for a company that could provide the last step: delivery.

R

ecognising the shift in consumer patterns towards the online shopping galaxy, Express Trailers launched an online platform in 2012 to assist consumers to bring their online shopping to Malta.

Express Trailer’s ShipLowCost.com rides on the strength that no size or weight limitations apply and, therefore, both online shoppers and holiday makers can have practically anything they buy shipped to Malta, right to their preferred address.

The service has grown from strength to strength in popularity and use, and also gained a solid reputation as a reliable service delivered by the trusted Express Trailers.

Company chairman and CEO Franco Azzopardi said: “The success of ShipLowCost stems from the fact that Express Trailers has transposed its philosophy of obsessive customer centricity, to providing total logistic solutions online with the aim of complementing e-commerce business.”

Maltese retailers and business, in agile and cost efficient ‘pick-pack-deliver’ online sales made through the retailers’ own websites.

“ShipLowCost.com saw an expansion in its service offering all over Europe where Express Trailers truckers drive through the network of strategically located depots over the continent.

In fact, we also witnessed an increase in the demand for the service among travelling customers who buy goods while abroad, or who have oversized or overweight luggage.

“It has also complemented e-commerce and become the online shoppers’ preferred solution to bring their purchases home. The solution also became the preferred mode for carrying cargo booked online by importers and retailers,” Mr Azzopardi said.

Express Trailers’ experience in export, the extent and coverage of its network, dedicated partners abroad, the company’s capacity and readiness to innovate and the propensity towards investment led Express Trailers to enhance its product offering and take its service to the next level.

Mr Azzopardi said that the company’s constant contact with clients and the local business community made it realise that taking your business online is more than just showcasing your product on a website.

communication with a robust logistics platform where a retailer will be enabled in such a way that from the moment the order is received by the retailer, a reliable logistics partner will be handling the picking, packing and delivery of items from the warehouse or store to the door of the buyer anywhere in the world.

“We have invested in a solid online logistics platform that bolts onto the retailer’s e-shop back-end, or else get updated through batch uploads. Based on pre-established rules set by the retailer, the system will process those sales and trigger the logistics side of the transaction to complete the delivery in the least time and with the service level and provider of the retailer’s choice.

“The platform will offer a network of logistics service providers for the retailers to choose from. It is a strong e-shopping infrastructure and our service is backed by our long years of experience in the transport business, which has already given us an excellent reputation. Our reliability and safety have been tried and tested and we are proud of this service which we plan to keep expanding and improving for the benefit of the local business community.”

Mr Azzopardi concluded that the local Maltese business community “can take advantage of our expertise in logistics and trust our professional risk awareness and solutions to mitigate unwanted risks, directly through the new service by accessing ShipLowCost.com”.

In tandem with this solution for the endcustomer, which has also gained popularity among importers opting for online booking, Express Trailers started research and work on a logistics platform for retailers venturing into the world of international e-commerce.

“A lot of effort has been make in this regard and unfortunately not enough has been done to strengthen the various components of the supply chain. E-commerce success is a function of a good visible website and e-shop, a recognised payment gateway, and a logistics gateway solution.”

Aware of the challenges that the Maltese retailer and small businesses face when it comes to e-commerce – specifically in exporting their products at a reasonable and affordable price – Express Trailers is in the final stages of launching an export-oriented online logistic solution to enable and enhance the service offering of

In fact, Express Trailers is about to launch a new affordable service aimed at bridging these gaps for those who want to export their products through e-commerce.

“The new service, which is being launched early in 2018, is supported by our continuous investment through which we keep expanding our managed warehousing offering also for retailers, our continental road and international courier transportation infrastructure network and our ICT backbone and tools.”

Mr Azzopardi said that the company would soon be launching an automated

For more information call Express Trailers on 2558 9330 or email info@expressgroup.com Money / Issue 45 - 35

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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. He holds a Bachelor of Commerce (Hons) degree in Banking & Finance (University of Malta) and a Master of Finance & Investments (University of Nottingham).

WORLD ECONOMY: A DAMPENED RECOVERY

Can it be that the 10th anniversary of the Lehman crisis is already on the horizon? Who would have imagined that the threats and opportunities would now be so varied in different corners of the globe?

A

s we approach the 10th ‘anniversary’ of the world’s worst financial and economic crisis in modern history, it finally seems that global recovery is truly on its way. Most parts of the world are now registering closeto-healthy growth figures. However, the prospects of a sustained recovery remain at risk. This was the key conclusion of the World Economic Forum’s Global Competitiveness Report for 2017-2018.

No surprises among the top ranked nations in terms of competitiveness, with Switzerland claiming top spot for the ninth consecutive year, above the United States and Singapore.

Among EU countries, Germany came first at number five with the UK at eighth, slipping two places since the Brexit vote.

In discussing the reasons behind its doubts on a sustained recovery, the WEF points towards a “widespread failure on the part of leaders and policy makers to put

in place reforms necessary to underpin competitiveness and bring about muchneeded increases in productivity” as the obstacles towards further progress.

The Forum highlights three main issues that are hindering a complete expansion of the economy. First, the financial system, since, according to the report, not only has its soundness not yet fully recovered from the crisis, but it is actually declining in certain parts of the world. Secondly, in terms of job creation, the WEF expresses its doubts on the political leaders’ readiness and drive to create the necessary conditions to support workers whose jobs would be affected by the advent of newer technology and the advent of higher-end robotics. Thirdly, the report cites an inadequate level of investment in innovation and development.

A lot of catching up still needs to be done in Europe, with investment in research,

REGIONAL TROUBLES Never a dull moment for European investors and traders. Now that most electoral worries seem to have subsided, a new, big worry has rattled the markets. Spain’s benchmark bonds fell to the lowest in almost three months after the Catalan regional government indicated there was no way back from independence.

The Spanish yield was increasing on a daily basis against the German benchmark, at the time of publication. The extra premium that investors demand to hold Spanish 10-year government bonds over similar-maturity German bunds – the euro-region’s benchmark sovereign securities – widened 10 basis points to 124 basis points in just a week after the referendum.

Investors’ attention over the past days focused on moves by credit rating agencies. Partly calming fears, Standard and Poor’s confirmed

Spain’s BBB+/A-2 ratings and left its positive outlook unchanged. However, it did highlight the fact that tensions between the government and Catalonia’s regional government could, if not properly addressed, start to weigh on business confidence and investment, and restrict growth prospects. Until last month, investors were adding very little political risk in their pricing strategies, banking on the fact that independence seemed a distance prospect.

However, the development of the latest weeks accelerated this possibility, and the markets have reacted – or some would say panicked – accordingly. It is too early to predict what might happen, but certainly the mere possibility of the break-up of a European state – and the potential impact on other countries having regions with separatist aspirations – will send shivers down every investor’s spine.

development and innovation still lagging behind Northern American counterparts, which lead the way in innovation, business sophistication and technological readiness, and ranking close to the top in the other pillars of competitiveness.

In the latest report, as mentioned above, the US rose to second place, while Canada moved to 14th.

ABE’S GAMBLE Very little, in my opinion, is written in the financial media about Japan. When it comes to the Far East, China is the first name for many. It is very easy to forget that the economy of Japan is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity and is the world’s second largest developed economy.

Japan is now recovering from a hard-fought electoral campaign. But even before the election was called, as soon as word got out that Prime Minister Shinzo Abe was considering such a step, foreign buyers were rushing to buy Japanese bonds and shares.

According to the Osaka Exchange, $19 billion worth of Japanese stock was bought during a 10-day period before the election was called.

Abe’s successful gamble should mean the continuation of what has been termed Abenomics, which includes monetary easing, a flexible fiscal policy and reregulation that has spurred Japan towards its longest sustained period of economic growth over the last decade.

Market experts were clearly predicting that the value of such an investment would rise if Abe were given another mandate, and this was confirmed by the fact that the Nikkei 225 in Tokyo rose for a record 15th consecutive sessions following the landslide election win.

Money / Issue 45 - 37

COUNTRY REPORT

WHY THE RAIN IN SPAIN IS FALLING…

And so it ended: Catalonia’s brief taste of freedom was effectively ended on October 21 when Spain’s Prime Minister Mariano Rajoy said he would curb the powers of the parliament of Catalonia, sack its government and call an election there within six months.

H

e felt that he had no choice: it was, in his mind, imperative to – as Reuters put it – “restore the law, make sure regional institutions were neutral, and to guarantee public services and economic activity as well as to preserve the civil rights of all citizens”.

There are a number of issues to consider: why does Spain – the fourth largest economy in the eurozone – want to block Catalonia’s independence, why did Catalonia want to break away, and what would the result have been.

First of all, Catalonia felt that it would be better off without Spain, and that it could make it on its own. It is the most prosperous of Spain’s 17 regions, and many resent the fact that while its 7.5 million people are 16% of the Spanish population, it generates around 20% of its Gross Domestic Product: €223.6 billion a year, according to the regional government.

38 - Money / Issue 45

It contributes 19.49% of the central government’s tax revenue, but only receives 14% of central government’s spending.

There is, however, a strong historical context to why it does not feel like a part of Spain. Back in the 17th century, it was actually French for a while, but once it was swept up into Spain, it managed to keep its autonomy.

Resentment started to ferment when the Francoist dictatorship abolished Catalan institutions and banned the official use of the Catalan language.

The post-war period saw Catalonia flourish, with Barcelona becoming a major industrial area and the region a major tourist attraction. The Spanish Constitution of 1978 re-established Catalonia’s political and cultural autonomy. But the 1979 Statute of Autonomy, approved after a referendum in 2006, was not universally accepted.

The conservative Popular Party challenged it in the Constitutional Court of Spain, which, in 2010, declared that some aspects of autonomy were not valid, including the justice system, some of the financing frameworks, and even the status of the Catalan language. Demands for independence started to rumble. In 2014, a referendum was held which indicated that 92% of the 2.3 million voters supported Catalonia’s transformation into a state, with 80% going a step further and saying that this state should be independent.

In 2015, Catalan lawmakers approved a plan for secession from Spain by 2017 with a majority vote 72 to 63 but once again the Spanish Constitutional Court intervened to stop it.

Undeterred, the Catalan government announced last June that a referendum would be held on October 1. Again, the Spanish courts reared their head and said this would

be illegal, and the world watched in dismay as ballot boxes and promotional materials were confiscated, officials were detained, and peaceful protests turned violent.

TURNOUT

Perhaps independence is not all that it was cut out to be. For a start, Catalonia does not have an automatic right to membership in the European Union, something that echoes the issues that arose during Scotland’s independence referendum in 2014.

43.03% YES

Being out of the EU is certainly no picnic, as the UK is finding out to its chagrin. The EU accounts for some 66% of Catalan exports, after all.

92.01%

But the impact on business could be even more profound. Had it managed to get independence, its exports to Spain – a third of all it produces – would have been affected.

Business Insider calculated that the immediate impact would have been positive, as Catalonia would no longer have had to pay taxes to Spain, reducing the country’s GDP by about 2 percent. But the Spanish Economy Minister Luis de Guindos was far more negative, forecasting that Catalonia would have seen its economy shrink by 25 to 30% and its unemployment double.

Another thorny question was where Catalonia stands with regards to its 16.34% share of Spain’s €1 trillion public debt (2016). Would the fledgling state have had to assume part of it?

As it happens, the “Yes” side got 92.01% of the votes but the turnout was just 43.03%.

The Catalan government estimated that up to 770,000 votes were not cast due to polling stations being closed off during the police crackdown.

The turbulence of the protests had an immediate impact on businesses with 700

The Catalan government estimated that up to

770,000 votes

were not cast due to polling stations being closed off.

700

companies moving out of the region after the referendum, according to the Spain’s companies registry, and Banco Sabadell is considering moving its headquarters to Madrid.

In the latest grim prediction, Spain’s independent budget watchdog warned this week that continued uncertainty could wipe as much as €12 billion off potential economic growth next year, cutting forecasts by between 0.4 and 1.2 percentage points.

companies moving out of the region after the referendum.

Banco Sabadell

is considering moving its headquarters to Madrid.

Tourism also took a hit, with activity falling 15% in October, and predictions that the last quarter would see revenue fall by €1.8 billion.

Was it worth it? For those Catalonians who are turning out in ever greater numbers to protest against Madrid’s heavy-handedness, there seems to be little doubt that their belief in the quest remains as strong as ever, no matter the economic implications.

15%

drop in tourism activity in October 2017.

Money / Issue 45 - 39

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PROMO

BANIF BANK BECOMES BNF BANK AS IT STEPS INTO THE FUTURE B anif Bank (Malta) has unveiled its new brand identity as BNF Bank, in a forwardlooking move that reflects its vision to grow its presence in Malta and abroad.

Speaking at a press conference, CEO and managing director Michael Collis said the new name, BNF Bank, evolved from the bank’s proud history. The brand brings new features that clearly denote the bank’s forward thinking and aspirations.

“Although the name and image have changed, our clients will continue to be our first priority.

We are embarking on a new journey, which we believe will deliver even greater benefits to our customers,” Mr Collis said.

through a network of 12 branches, and three corporate and business banking units.

BNF Bank has ambitious plans to expand its business into asset management and investment banking services and is in the process of putting in place the necessary infrastructure for growth.

individual client, tapping the potential of private banking, and optimising Malta’s geographic location to attract more business and increase revenue streams,” Mr Collis said.

From a practical perspective, the new brand identity will not impact daily operations. Clients do not need to make any changes or updates to their internet banking access, and can continue to make use of existing debit and credit cards and cheque books – which will be refreshed with the new logo once they expire.

WE ARE EMBARKING ON A NEW JOURNEY, WHICH WE BELIEVE WILL DELIVER EVEN GREATER BENEFITS TO OUR CUSTOMERS

Banif Bank (Malta) was acquired by Al Faisal Holding – one of Qatar’s largest privately held diversified groups last year. It has operated in Malta since 2008 and today employs a team of more than 200 employees and has €523 million in assets.

“In the coming months, we will be rolling out new products to gain a greater market share.

We recognise there is a generational shift in the way clients bank and do business and we want to be at the forefront of this.

“Our clients bank with us because we are there for them on life’s journey. Our vision is to remain a valued member of the community helping our customers to build a new future,” Mr Collis said.

It provides a full range of commercial banking services to personal and business customers

“Our aim is to accelerate our growth with a focus on understanding the needs of every

www.bnf.bank.

Money / Issue 45 - 41

BOV Investment Funds Some people think investments are complex. We can help you better understand and choose the right investment strategy that fits your personal risk tolerance.

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Issued by BOV Asset Management Limited, registered address 58, Triq San Ĺťakkarija, Il-Belt Valletta VLT 1130. Tel: 2122 7311, Fax: 2275 5661, Email: infoassetmanagement@bov.com, Website: www. bovassetmanagement.com. Source: BOV Asset Management Limited.

RECRUITMENT

Richard Muscat Azzopardi is the CEO of Switch – Digital & Brand, a marketing agency that forms part of ICOM, the world’s largest network of independent agencies. You can get in touch on richard@switch.com.mt

BRAND IS THE KEY TO SUCCESSFUL RECRUITMENT

Brand guru Richard Muscat Azzopardi explains why knowing your company’s identity helps you pick the right people for your team.

I

was having a conversation with a friend of mine recently. He started up a company with a few friends and it’s doing brilliantly. They’re growing at a phenomenal rate, but he was complaining that as they grow, even though they can delegate most of the jobs they used to do, they still can’t delegate recruitment.

This is because one of the founders needs to be in the room (or on Skype, at any rate)

to vet the new hire “because otherwise we can’t tell if they fit in the team”. He thought it was an HR issue, but I pointed out that it’s not. It’s an issue that can only be solved by having a well-defined brand.

I have to admit that when I first joined Switch, I was quite a brand virgin. I was under the wrong impression that a brand is defined by the visual identity: the logo, the colour

scheme, the font chosen and the way the company T-shirts look.

I had spent a year working on a rebrand exercise for a multinational company in my previous job. To me, the brand exercise had boiled down to massive excel sheets that covered every single bit of collateral that had the brand logo and colours on it, and we’d work through it all to make sure that all the

Money / Issue 45 - 43

RECRUITMENT

IT IS ALSO IMPORTANT TO IDENTIFY A PURPOSE THAT IS NOT TIED DOWN TO A SPECIFIC TECHNOLOGY OR SKILLSET BECAUSE THAT CHANGES documents, product shots, web pages, and e-mails had the new logo on them.

Maybe my position at the company was too far down the pecking order, but we never spoke about the identity of the brand. So when I eventually joined Switch, one of the things I needed was a crash-course in the concept of brand identity.

A brand identity is something that defines your company from its very core because it sets out (if done at the beginning) or verbalises (if you’re carrying out a brand exercise of an existing brand) the two main parts of a brand: its purpose and its values.

PURPOSE A brand’s purpose, when you think about it, is pretty self-explanatory. We ignore the obvious ones (“to make money” for commercial brands) because they are underlying purposes of any commercial entity. When you remove that, you get to a point where you need to express the raison d’etre of the venture.

It is also important to identify a purpose that is not tied down to a specific technology or skillset because that changes and you need to move with the times.

The obvious flaw of a technology-based purpose is that it can hamper evolution. A classic (and oft-quoted) example of this is American trains.

In the heyday of the American industrial revolution, trains were the ‘be all and end all’. The big train companies of the time were as large as Facebook and Google are today. Their brand purpose was tied to being the best train service providers on the continent. But then cars came along, with commercial airlines following half a century later. Train companies just kept on making better, bigger, faster and more comfortable trains. But people did not love trains because they were trains. People wanted

44 - Money / Issue 45

WHAT WOULD THE BRAND BE LIKE IF IT WERE A HUMAN BEING? to get from A to B in the most efficient way possible. If the train company had said “Our purpose is to get people from one place to another in the most efficient way possible”, then it would have been logical for them to move to cars and planes.

It took me quite a bit of time to understand their value, but when I was talking to my friend about their recruitment problem, it dawned on me that we’ve done an excellent job of it ourselves (thanks to Ed, who leads our brand efforts).

A brand’s values help us understand what the brand would be like if it were a human being.

Would it be fun, would it be serious? Would it be nimble or would it win because it amasses incredible numbers early on? Would it hanker for stability or is it willing to gamble to be the first in every area it approaches, even at the expense of perfectionism?

In fact, we had a similar situation a few months ago. I was on an interview board with a potential junior copywriter but one of my younger colleagues, who was on the board with me, came out of the interview and told me: “I love her content, I love her writing, but she’s just not Switch”. There I saw that I could sit out of some of these interviews going forward because my colleagues understood the set of values that’s needed to make a candidate a good Switch candidate.

These values are usually what really help from an HR point of view. No matter which one of the partners is in the room, we instinctively know that if a potential candidate does not match our core values, then they are a definite ‘no’.

And it doesn’t just stop at the recruitment stage.

For this to be effective, you have to be sure that you live and breathe your brand every minute of the day. You can’t promote “enthusiasm” as a value and then shoot down employees’ ideas for being put forward exuberantly.

We sat at the boardroom table with one of the best designers we knew, but did not offer them the role because they were clearly not collaborative, and we define ourselves as being a collaborative brand.

The quicker (and better) you sit down and define your brand values, the easier everything becomes across the board. Don’t put it off, and if you feel lost, bring in professionals to help you out with the process. It’s definitely worth your time and effort, and is also generally a fun process that results in everybody knowing the brand better, even people who have been breathing it from day one.

VALUES

Values are not something that you publicise, they’re usually only used internally to help everyone get on the same page.

Pride can lead to great things.

We are proud of what we achieve, through our ability, our services the reliability we offer and the trust we enjoy.

Orange is our pride. #WeAreOrange.

We deliver your cargo from wherever to anywhere, and however, whether by road, sea freight, airfreight or multimodal We are experts in total logistics.

PHOTO: ONE OF OUR EMPLOYEES’ PHOTOS IN THE 2016 EXPRESS TRAILERS PHOTOGRAPHIC COMPETITION THEMED ‘WE ARE ORANGE’.

Express Group Malta Velbro House, Qormi Road, Luqa LQA 9040, MALTA

Tel: (+356) 21 242311 Email: info@expressgroup.com www.expressgroup.com

MARKETING

Richard Muscat Azzopardi is the CEO of Switch - Digital & Brand, a marketing agency that forms part of ICOM, the world’s largest network of independent agencies. You can get in touch on richard@switch.com.mt

CREATING LEADERS WORTH FOLLOWING

We all have those we look up to and want to emulate. Richard Muscat Azzopardi explains the role of the influencer in marketing.

I

nfluencers are dead. Long live influencers.“OMG the latest glasses from #brandname are life.”

If you’re on Instagram at all, you might have had enough of influencers already. If you’re not, you might be blissfully unaware of their existence entirely, even though Facebook is becoming full of influencers locally. Which might be a good thing.

The idea behind influencers is brilliant. We love recommendations from people we can trust. They’re far more valuable than recommendations from a brand itself. In theory, they should be unbiased. Independent. Honest.

They started out that way, but that’s gone down the drain with most of the bigger names in the industry, especially locally.

But, before I go into more detail about the issue with influencers, let me stop for a minute and explain them for people who might still be in the dark.

audience. The digital world has given rise to a new breed of celebrity, people with a large following that looks up to them for their opinions about a particular subject.

An influencer is technically someone who can, yes, you guessed it – influence an

Instagram, for example, is full of incredibly fit people who post regularly about their fitness regime. It makes perfect sense to capitalise on that to simply make sure that they’re only seen in your training gear, or that they add your protein supplement to their post-workout shake and shake it in a branded bottle.

THE DIGITAL WORLD HAS GIVEN RISE TO A NEW BREED OF CELEBRITY, PEOPLE WITH A LARGE FOLLOWING THAT LOOKS UP TO THEM FOR THEIR OPINIONS ABOUT A PARTICULAR SUBJECT.

This usually starts off naturally, and eventually becomes a paid gig when you have enough followers and engagement on your posts, but is best kept as subtle and as honest as possible (i.e. if you’re tagging a protein supplier because you were paid to do so, you should technically say so: ethically, if you want

Money / Issue 45 - 47

MARKETING

THIS SMALL POOL OF INFLUENCERS HAS BECOME AN OBVIOUS CHOICE FOR LAZY BRANDS, AND HAS THEREFORE BECOME COMPLETELY SATURATED

So are we over influencer marketing? Will we, as an agency, recommend that you don’t use influencers? Nope. We’re still completely enamoured by the concept; however, we believe that it’s no longer as easy as it seemed in the beginning.

to follow the rules of Instagram, and because of laws in countries where this kind of thing is controlled, like the US and the UK).

If you are going to run an influencer campaign then we’d recommend doing a hell of a lot of homework. Ignore people who have become obvious influencers – your audience is seeing through that already. Ignore influencers who haven’t carved out a niche for their content. You can’t be posting about make-up one day, tyres the next, and desks the following. Well, if you’re a Kardashian maybe you can, but that’s celebrity endorsement – and it’s a completely different ballgame. Just because you have 5,000 followers doesn’t mean you’re an expert about all the subjects under the scorching Maltese sun.

There is also a set of mega-influencers who get their status as a by-product of their fame elsewhere, not because of some specific skill set they bring to the social network. Reality TV stars, B-list movie celebrities and famous sports personalities are all making bucket loads off the influence they can exert on social media.

All this is brilliant. Influencers do work. A study commissioned by Linquia, who, admittedly makes money off influencer marketing, found that in 2016, “94% of marketers [who tried influencer marketing] found influencer marketing to be effective. As a result, influencer marketing budgets are set to double in 2017”.

So why am I writing about the death of influencers? Well – I’m not. But there’s a problem with the current model. The problem is simple, especially locally. We have a small pool of people who make it into the spotlight, and, as their name grew, everybody flocked to them. Brands all want a piece of them (as one of them told us, quite candidly, recently). This means that this small pool of influencers has become an obvious choice for lazy brands, and has therefore become completely saturated.

48 - Money / Issue 45

Just like any other medium, the people who managed to harness the power first made the best investments. They got a lot of coverage in exchange for very little money (or no money at all in most cases).

THEY’VE DILUTED THEIR PERSONALITY COMPLETELY AND HAVE TURNED THEIR PROFILES INTO HUMAN BILLBOARDS It’s not that easy any longer. Head over to any “major” influencer’s page and all you see are sponsored posts. They’ve diluted their personality completely and have turned their profiles into human billboards. They never post unless it’s going to benefit them financially. This is probably because most of them don’t know how to manage their personal brand. They do not realise that they themselves are a brand that needs nurturing.

They start accepting every deal that comes their way, losing the sense of who they are and what made them become influencers in the first place. And slowly they start killing the goose that laid the golden eggs.

The issue with smaller influencers is that you have to work harder with them. First of all they will be harder to find, but there are means and ways of doing so. Next, they probably don’t even know that they can be considered as influencers because they just post about a niche out of love for the subject. But it will be worth it. They will be far better at discussing your brand, they’ll do it with authority and they’ll communicate to an audience that’s primed to listen to you.

So go out there – find an agency with a good database of influencers (I can think of a good one ;) ) or sort yourself out with a database for your industry. Don’t be lazy about it, be nice to them and you should be benefitting from one of the most anticipated trends in marketing in 2018.

REPUBLIC STREET, VALLETTA BAY STREET, ST JULIAN’S THE POINT, SLIEMA

FASHION

KEEPING THINGS IN FOCUS

Luke Engerer has developed a wide-ranging portfolio, which has developed over the years into a recognisable brand for fashion shoots.

He spoke to MONEY about his inspirations.

Luke Engerer

What adjective would best describe your style?

Alternative. I like to stand out but I don’t like to be the centre of attention and I think my style reflects that. I’m not mainstream and tend to hover on the fringe of fashion.

We no longer live in a formal society, we do not need to blend in, we are not dictated by social norms, we are free to wear whatever we like and I choose to do so.

Which was your favourite image and why?

It would be impossible to choose my favorite image; I’ve been doing this for over a decade and racked up quite a portfolio.

Just like looking at old photos of some bad outfit choices which you thought were so cool at the time, I look back and cringe at some of my work, but there are those few which still make me smile.

The more experience I gained, the better I understood my aesthetic. I lean more towards a minimalist approach and tend to prefer more simple compositions; it took me a few years to get there. I do enjoy a bit of layering and also mixing patterns.

How do you keep the clothes as the subject when fashion shoots have become so slick – and distracting?

I’ve never really been one to follow trends; obviously I use clothing from current collections so generally the clothes determine the concept. Especially when it comes to commercial styling, the clothes should remain the main focus. Details are important and it is essential for a fashion stylist and photographer to understand the clothing.

Like most things in life it all comes down to balance. While the set-up and location are important to tell the story, they should never be the star of the show. It is up to the stylist to make sure this doesn’t happen.

The background and the clothing should complement and not clash.

It isn’t always easy coming up with new locations especially on our little island and you always need to factor in the logistics of moving around a team of people and a wardrobe of clothes. Winter shoots get particularly tedious as clothing is heavier and bigger.

FM December ‘12 // Photo by Kris Micallef

FM October ‘10 // Photo by Tonio Lombardi

FM December ‘16 // Photo by Luke Engerer

Is there one location for a fashion shoot that you would love to try?

I would love to shoot in the snow or in a forest – or a snow-covered forest! I do also like an industrial location: concrete and steel.

What advice would you give an aspiring model?

If you don’t love it, don’t do it. Be persistent and take all criticism and suggestions as a positive thing: it is all a learning experience.

Listen to what is being asked of you.

You might not be everyone’s first choice but that doesn’t mean you should give up. Take care of your skin and your body. I would also recommend yoga.

Money May ‘15 // Photo by Nicky Scicluna

What’s are you working on at the moment?

Styling has never been my full time gig, it would be impossible to make a decent living solely off styling; there just isn’t enough demand locally.

For the past year I’ve been working in iGaming and it’s been a really interesting experience, so far. For the time being I’m taking some time out from styling and photography and in my spare time I’m working on some new fashionrelated projects. I’ve been mulling over some design ideas and will be working on a mini alternative streetwear collection, which I will hopefully launch

by Spring 2018.

Interview FASHION

GET THE LOOK

Saint Laurent sunglasses

Valentino t-shirt

Money’s essential trends for this Autumn/Winter season.

Y-3 sweatpants

THE DOWN JACKET Moncler’s ‘Jeanbart’ jacket is made from lightweight water-repellent shell that’s quilted to ensure the insulating blend of goose down and feathers within is evenly distributed. It’s thoughtfully detailed with a detachable hood and has elasticated trims to keep out any draughts.

Common Projects sneakers

LEATHER AND JEANS Alexander McQueen’s jacket has been crafted in Italy from robust black leather that’s faded along the seams for an authentic lived-in feel. This piece has a detachable shearling collar and stretch wool-blend ribbed-knit borders for flexibility even when it’s fastened. It’s detailed at the chest with intricate Persian zardozi embroidery, which literally means ‘sewing with gold string’, and features a peacock’s quill – a reference to the dandyism of Mr Oscar Wilde and the label’s Fall ‘17 leitmotif.

Maison Margiela t-shirt

Valentino jeans

Alexander McQueen necklace

Alexander McQueen 2

Alexander McQueen snakers

54 - Money / Issue 45

Alexander McQueen shearling trimmed leather jacket

MILITARY BOOTS “Unbound by convention and driven by innovation”, Officine Creative prides itself on sophisticated design and masterful handcraftsmanship, which is undertaken by specialist Italian artisans. These wingtip brogue boots are made from glossy brown leather that’s burnished for a rich patina, and set on robust rubber-trimmed soles. The hook eyelets ensure a secure stride.

Officine Generale cardigan Boglioli blazer

Gucci shirt

Officine Creative boots

Turnbull & Asser

PLEADED TROUSERS These Gucci trousers, like so much of the brand’s output, defer to classic styles while wholeheartedly embracing the new. They’re crafted from dark-green wool and trimmed along the seams with distinguishing velvet and satin piping - a reference to traditional military and dress trousers as well as sportier ones. Have the hems tailored with or without turn-ups.

Turnbull & Asser tie Gucci bomber jacket

Gucci boots Gucci shirt Gucci slim fit trousers

Money / Issue 45 - 55

Interview DESIGN

TOP OF THE NOTCH

Money’s pick from the world’s best designer and tech gear

NORTHERN LIGHTS Danish design usually comes at a price – enter Vita Copenhagen, whose flat pack light shades are as beautiful as they are affordable.

The flagship multi-leafed Silvia comes in a range of sizes and finishes, for pendant, floor or even table lamps.

THE MANN, THE MYTH

LIVE WELL

London-based architect and designer Sebastian Mann launched his own furniture in 2013. The Well Hung table is made of American black walnut and pre aged copper. This dramatic 2m long cantilevered table encapsulates the studio’s signature sharp mitred edge trim and seductive sculptural style.

Inspired by boxers’ punching bags, the Rondo armchair is upholstered with premium quality Nobilis Tegola leather in a rich tan hue. The Rondo armchair transforms the aesthetic of the sporting accessory into a contemporary masterpiece; its soft cushioning is emphasised by the black metal frame, which presses into the leather on either side, inviting you to relax into it.

56 - Money / Issue 45

VISION, EXPRESSED Mounted on a silver oak floor stand, Loewe’s Bild 5 television is all the proof you need that the design of your home tech is just as important as your furniture.

GET LIT Two knights of the realm take up arms together in this special edition Anglepoise Type 75 desk lamp. Product designer Sir Kenneth Grange was behind a 2004 rethink of the classic design, and now British fashion’s leading light Sir Paul Smith has lent his vision to this bold new colourway.

PUT YOUR FEET UP In solid American walnut and upholstered by master saddlers, American-born designer Amy Somerville’s New Objectivity stool is a masterclass in statement furniture.

FLIGHT OF FANTASY Fabric experts Beaumont & Fletcher’s “Couture” cushions deliver a hit of heavy-duty glamour. The hand-embroidered beadwork bird iconography of the Elvira can be applied to almost any fabric, from silk and velvet to organza and leather.

Money / Issue 45 - 57

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

Interview LAST WORD

“WATER, WATER EVERYWHERE NOR ANY DROP TO DRINK” The Bluesman ponders how water that is meant to sustain communities can be sold to companies. n The Rime of the Ancient Mariner by Samuel Taylor Coleridge, a grizzled greybeard approaches a group of wedding guests as they head to the feast ‘and he stoppeth one of three’.

the crew returned to their sleep and the sole survivor was greeted by a pilot’s boat. The pilot marveled at the weather-beaten ship and took the old man to safety.

He regales him with a lengthy story of one of his sea voyages. It’s a long tale, the impatient guest finds out but he was caught in the stare of the thin, bearded sailor.

As the bride and her bridesmaids approached and the church bell rang, the mariner explains that he walks the lands, compelled to recount his story from time to time, leaving the wedding guest with the exhortation:

I

The voyage started well enough as they headed towards the Equator. They eventually came across an albatross which flew alongside the ship. Mindful of the luck these birds were said to bring, the sailors would lay out scraps of food and every day the seabird would approach and eat and perch on the masts. The days went by and a brisk sweet breeze pushed the ship along its course. The bird followed.

One day for no reason, the mariner shot the bird with his crossbow. Maybe like the indiscriminate blasting out of the sky of migrating birds.

Soon the breeze dropped and they found themselves becalmed in the mist-swathed Sargasso Sea, teaming with the eels that breed there among the algae-covered flotsam that gathers in the waters below the Gulf Stream because of the minimal ocean currents.

“We stuck, nor breath nor motion; As idle as a painted ship Upon a painted ocean.”

It was a desperate situation: fresh water running out, the heat of the sun by day and St Elmo’s Fire by night.

Sailors are superstitious and this crew was no exception. They pointed the finger of blame at our old grey and hung the dead bird around his neck. He goes on to describe the visions and hallucinations as the crew died of thirst.

Eventually in his visions he blessed the dead and found himself uttering a prayer whereupon the albatross fell off his neck and he was able to sleep. He was awakened by rain and wind filling the sails.

The corpses of the dead came to life and crewed the ship. They finally made harbour,

58 - Money / Issue 45

“He prayeth well, who loveth well Both man and bird and beast.”

The take-away from this, other than peaceful co-existence between humanity and nature, is the undeniable necessity for water in sustaining life, so basic a necessity as to make access to clean water a right, one would think. Well surprise, surprise; maybe not so much.

In Flint, Michigan (hometown of Michael Moore the film maker, as it happens), the source of water was the Flint River, which was discovered to be full of industrial pollutants, bacteria and fecal matter. Three years ago the governor was briefed that contamination was getting worse so, as a fix, they dumped more chlorine into the water.

This soon caused GM to stop using the water for manufacturing because it was corroding engine parts but, even worse, it was also leaching lead out of the old pipes, effectively poisoning the water supply and causing irreversible brain damage to the children among the population, 41% of which lives below the poverty line. But Governor Snyder didn’t feel the need to take any steps to correct the situation. Some officials have been indicted but the residents are still forced to pay for water they cannot drink and struggle to make do with bottled water purchases and donations.

Meanwhile back at the ranch, speaking of bottled water, Nestle was making a grab, a water grab. In Traverse City, Michigan (again), Nestle found themselves in conflict with Native American Tribes protecting their water rights against attempts to increase the water drawn off the trout stream headwaters. The tribes

have treaties delineating fishing rights. In fact, Michigan has a legal duty to protect these treaty rights and the tribes are concerned that the 400 gallons-per-minute that would be taken from the Muskegon River watershed would seriously affect the habitat.

Nestle has already lost the first round and is now appealing the decision because, of course, they make a lot of wampum from selling bottled water.

Immediately across the border in Canada, a small town trying to keep a hold on its water supply was outbid by Nestle for its well, causing the Council of Canadians action group to stress the necessity of rethinking the bottled water industry.

In California, in the mountains outside Los Angeles, tens of millions of gallons annually ‘flow naturally’, to quote Nestle’s Larry Lawrence, into a tunnel through a pipeline to tanker trucks and to a plant bottling their Arrowhead branded water.

During California’s drought a couple of years ago, certain crops like almonds were blamed as wasteful of water as claims were made that each nut took a gallon to mature, and exporting almonds was tantamount to exporting the precious liquid. The facts were somewhat unfair to the almond as the by-products – some used as animal feed for instance – were not taken into account. But emotions generated by the fear of a lack of drinking water run high.

“I understand people questioning,”’ said Lawrence “but water belongs to no one.”

“Here you go!” said Hurricane Harvey, accompanied by partner Irma and their son Jose, as 2017 turns out to be the wettest since 1998.

It seems inconceivable that natural resources are purchased from general use only for the water to be sold in plastic bottles (this is a whole other discussion) for large profits when rain falls for free.

Unfortunately, as the population of Puerto Rico has found out, water, water everywhere does not always mean one drinks.

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