May 24, 2013

Will JLo Succeed as Mobile Phone Merchant?

Jennifer Lopez has a new role and this time it’s on the really small screen. Ms. Lopez is the new creative force and majority shareholder behind Viva Móvil, a new mobile retail concept catering to Latinos.

"As Latinos, we do things differently, including how we shop for wireless devices," said Ms. Lopez at the CTIA wireless industry trade show in Las Vegas. "Right now, there are stores geared to everybody, but not ones that are made specifically for our community. The Latino community has been underserved."

According to a press release put out by Verizon Wireless, a partner with Ms. Lopez in the venture, a higher percentage of Latinos (75 percent) own smartphones than the population as whole (63 percent).

"We used to do things on our own, but we realized partnering was the best way to go here," Marni Walden, CEO of Verizon Wireless, told CNN. "To stay on the path of having the best customer experience, we knew we had to do more, and that’s why Viva Móvil is so important to us."

The first Viva Móvil will open June 15 in Manhattan. The venture plans to open stores in at least 14 other cities with large Latino populations, including Los Angeles and Miami.

In the meantime, consumers interested in experiencing Viva Móvil can order from its website (getviva.com) or through its Facebook page.

Discussion Questions

How likely is the Viva Móvil concept to be a success? How do you expect the marketing and merchandising to differ from conventional mobile stores? What will be the keys to the company’s ultimate success or failure?

Poll

6 Comments
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Janet Dorenkott
Janet Dorenkott

I asked my sister-in-law from Venezuela who lives in Miami about the quote above from JLo, “As Latinos, we do things differently, including how we shop for wireless devices.” First she laughed. Then she actually found it a bit insulting. JLo is an icon regardless of heritage. If Viva Movil wants to use her to target the Latino community, I think that is wise. However, they should be careful about the messaging.

George Anderson
George Anderson

I know that age plays a significant role in how consumers use smartphones and tablets. Does ethnic descent? I don’t know the answer to that question, but there are worse things than building a store for an audience and letting them know you did it with them in mind. At the very least, having Spanish speakers on the sales floor will make those less comfortable with English more comfortable shopping at Viva Movil.

Carol Spieckerman
Carol Spieckerman

The most interesting and potentially precedent-setting aspect of the deal is that a carrier is dipping into celebrity branding and multi-format retailing. Others will (should) be watching closely.

Karen S. Herman

Verizon Wireless is making a bold strategic move in partnering with Jennifer Lopez as chief creative officer and the face of the Viva Movil brand.

Verizon could have tested the market with pop up retail but instead announced a rollout of 15 mobile retail concept stores in cities with large Latino populations. The in-store experience will feature bilingual employees, play areas for children and lots of opportunity to test products before purchasing. Online, customers can shop for service plans, phones and accessories through the website. I’m certain the Viva Movil brand will be highly visible on social networks and with its Facebook page.

These mobile retail concept stores should position Verizon well within the Latino market, which continues to grow in population and purchasing power.

Jennifer Lopez positions herself as an advocate for the Latino community and she will likely profit nicely by selling branded mobile accessories.

Sets up to be a win/win if over-saturation of the JLo brand does not become an issue.

Ed Dunn
Ed Dunn

The third rail issue with Viva M vil is that corporations tend to present JLo as the only authority representative for the Latino market. This has been done with others such as Magic Johnson for example.

Verizon may just want to market JLo as the household name instead of marketing Viva M vil as the only channel to the Latino market.

Ed Rosenbaum
Ed Rosenbaum

Help me on this. I do not understand Ms. Lopez comments about the need for smartphones geared for the Latin community? Somehow this seems out of line with the mainstream Latin community. I can see Ms. Lopez having an influence on the younger Latin women. So be it. Let’s move on.

6 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Janet Dorenkott
Janet Dorenkott

I asked my sister-in-law from Venezuela who lives in Miami about the quote above from JLo, “As Latinos, we do things differently, including how we shop for wireless devices.” First she laughed. Then she actually found it a bit insulting. JLo is an icon regardless of heritage. If Viva Movil wants to use her to target the Latino community, I think that is wise. However, they should be careful about the messaging.

George Anderson
George Anderson

I know that age plays a significant role in how consumers use smartphones and tablets. Does ethnic descent? I don’t know the answer to that question, but there are worse things than building a store for an audience and letting them know you did it with them in mind. At the very least, having Spanish speakers on the sales floor will make those less comfortable with English more comfortable shopping at Viva Movil.

Carol Spieckerman
Carol Spieckerman

The most interesting and potentially precedent-setting aspect of the deal is that a carrier is dipping into celebrity branding and multi-format retailing. Others will (should) be watching closely.

Karen S. Herman

Verizon Wireless is making a bold strategic move in partnering with Jennifer Lopez as chief creative officer and the face of the Viva Movil brand.

Verizon could have tested the market with pop up retail but instead announced a rollout of 15 mobile retail concept stores in cities with large Latino populations. The in-store experience will feature bilingual employees, play areas for children and lots of opportunity to test products before purchasing. Online, customers can shop for service plans, phones and accessories through the website. I’m certain the Viva Movil brand will be highly visible on social networks and with its Facebook page.

These mobile retail concept stores should position Verizon well within the Latino market, which continues to grow in population and purchasing power.

Jennifer Lopez positions herself as an advocate for the Latino community and she will likely profit nicely by selling branded mobile accessories.

Sets up to be a win/win if over-saturation of the JLo brand does not become an issue.

Ed Dunn
Ed Dunn

The third rail issue with Viva M vil is that corporations tend to present JLo as the only authority representative for the Latino market. This has been done with others such as Magic Johnson for example.

Verizon may just want to market JLo as the household name instead of marketing Viva M vil as the only channel to the Latino market.

Ed Rosenbaum
Ed Rosenbaum

Help me on this. I do not understand Ms. Lopez comments about the need for smartphones geared for the Latin community? Somehow this seems out of line with the mainstream Latin community. I can see Ms. Lopez having an influence on the younger Latin women. So be it. Let’s move on.

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