The burst of the Beanie Baby bubble

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Qatar is planning to ramp up investments in Egypt

Good afternoon friends, and happy hump day. There are plenty of stories hitting our news cycle as we approach the midpoint of this cooler weather week.

THE BIG STORY TODAY

Qatar makes investment pledges at investment forum: Qatar’s Al Mana Group plans to invest “at least” USD 60 mn in Egypt in 2024, Asharq Business quotes Vice Chairman and CEO Saud Al Mana as saying. The investments will likely be earmarked for an automotive assembly plant in the Suez Canal Economic Zone, Al Mana said, with the company still considering which automotive brand it intends to set up the plant with. Al Mana’s remarks come on the sidelines of the Egyptian-Qatari Investment Forum earlier today, during which Egyptian and Qatari companies signed a number of unspecified MoUs, according to a Trade and Industry Ministry statement.

THE BIG STORY ABROAD

It’s a mixed bag in the international press this afternoon: About 200k Palestinians are evacuating to the south of Gaza to escape the worsening conditions in the north as patients, newborns, and medics are left stranded in and around the hospitals Israel is attacking with no electricity and dwindling supplies, reports the Associated Press. After pressure from the US to limit civilian casualties, Israel’s Economy and Industry Minister, Nir Barakat, reportedly told Bloomberg that the military will achieve its objective with “minimal collateral damage.” Meanwhile in Russia, almost no oil is being sold below the US-led price cap of 60 USD, say western officials quoted in the Financial Times, forcing countries to figure out other ways to reinforce their economic sanctions. UBS expects the US Federal Reserve to cut interest rates by as much as 2.75% in 2024 on the back of slower growth, rising unemployment, and disinflation, according to CNBC.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

We’re getting more gas from Israel as the Tamar field resumes production: Israeli natural gas exports to Egypt have risen by 60% to 350-400 mn cubic feet a day, up from 250 mn earlier this month.
Fitch Ratings has downgraded the credit ratings of three major Egyptian banks a week after it cut the country’s sovereign credit rating deeper into junk territory. The agency cut the ratings of National Bank of Egypt, CIB, and Banque du Caire to B- from B, reflecting the impact of the government’s credit profile on the lenders.
The African Export-Import Bank (Afreximbank) has agreed to extend USD 3 bn of credit facilities to Egyptian companiesto help support their infrastructure projects across Africa.

⛅TOMORROW’S WEATHER- Look for a high of 27°C during the daytime with the temperature dropping to a cooler 20°C in the evening, our favorite weather app tells us.

Entrepreneurial ventures can begin at 40 + Archeologist is finally recognized nearly a century later

GOOD NEWS- You’re (probably) not too old to start your own business. People aged 55-64 are increasingly starting up new businesses, accounting for a significant percentage of new entrepreneurial activity across the US, UK, France, and Germany, according to the Global Entrepreneurship Monitor.

Many older entrepreneurs have emerged where they’ve stepped down from their successful careers utilizing the skills they gained to create their aspired ventures.

What is behind Gen X’s success? Experience, really. They bring their valuable networks, professional experience and grit in the face of adversity that often the younger generation may not be able to handle, the article explains.

The pandemic was the trigger, again. During that time there was a rise in start-ups founded by people aged 45 to 64, particularly in the UK, where the percentage of businesses started by this age group increased by 7.9 percentage points y-o-y to 33.3% in 2021, according to a separate GEM report (pdf).

This reflected the rise of asset-rich individuals as well as allowed them to combat issues like rising costs and workforce reductions that were caused by the 2020 pandemic, according to Financial Times.

The complications of mid-life still present challenges. Juggling family responsibilities and personal well-being is the greatest challenge, explains the article, but older entrepreneurs often have more to gain due to their industry experience and the higher likelihood of achieving success compared to their younger counterparts.

A 50-year-old entrepreneur has a higher chance of achieving great success compared to a 30-year-old entrepreneur. Why? Having prior experience in a specific industry greatly influenced the likelihood of creating a business with rapid growth, according to a National Bureau of Economic Research paper (pdf).

There is still some bias. VCs are still wary of backing older entrepreneursas they believe that twenty-somethings are just more creative,cheaper, and have less to lose, shares Eileen Burbidge, partner of emerging technology fund Passion Capital.

It only took nine decades, but a woman archaeologist who was instrumental in understanding the culture of ancient Greece’s Olynthus was finally credited for her work. After having her work plagiarized by a male colleague, the Library of Congress has taken a historic step to acknowledge Mary Ellingson’s work, the University of Evansville said in a press release. Ellington was a former archaeologist at the university and led excavations that gave unprecedented insight into the domestic architecture and culture of Olynthus, an ancient Greek city. But, the male professor who led the project eventually took her work and put his name on it. This came to light when Ellingson’s photo album and letters from 1931 were rediscovered.

Women’s contributions to academia often lack recognition. Think of Marie Curie, who had to fight for a nomination but became the only person to win two Nobel prizes in different sciences. Or, Henrietta Leavitt who discovered a way to measure astronomical distances but was ignored until after her death. The phenomenon is nothing new, which is why the university called this “a triumph for all those who have tirelessly sought justice for a woman unjustly omitted from the pages of history,” in the press release.

The problem persists. In fact, in a 2013 paper by historian Margaret Rossiter titled “The Matilda Effect in Science Communication,” she finds that men and women find research papers by men to be stronger than those by women, and showed preference for the male authors as possible future collaborators.

Rossiter coined the term The Matilda Effect in 1993, naming it after Matilda Gage, a suffragist who had her own work overlooked by historians. She then calls for institutions to rectify the issue of misplaced credit.

Beanie Bubble tackles the rise and fall of fad products

📺 ON THE TUBE TONIGHT-
(all times CLT)

The Beanie Bubble explores the fiasco behind the Beanie Baby craze in the 90s. The film, directed by Kristing Gore and Damian Kulash, is an adaptation of Zac Bissonnette’s 2014 book The Great Beanie Baby Bubble: Mass Delusion and the Dark Side of Cute.

Everybody had to have a beanie: In 1993, the creator of Beanie Babies, Ty Warner (Zach Galifianakis), gave the toy market a limited edition plush toy worth USD 5. The toy transformed into a fad due to its scarcity and exclusivity, morphing it into a rare item. It eventually became available for resale on the internet on sites like eBay at skyrocketing prices.

The film depicts Ty Warner as a creepy and immature tycoon, while Robbie (Elizabeth Banks) and Sheila (Sarah Snook) are his two girlfriends who seemingly are unaware of the position Ty is putting them in even though they overlap throughout his success.

These characters are based on Warner’s real-life partners, along with the addition of Maya (Geraldine Viswanathan), a composite character representing the intelligent young people whom Warner exploited for their web-savviness.

“How insane is it that USD 5 bean bag animals were treated like gold by people for three years?” Kristin Gore tells Forbes.For the first time, this transparent market was accessible to anyone. You could buy something at a gift store for USD 5 and then say, “I could sell this for USD 25 or USD 30 or up to USD 5k or USD 10k. It got a little out of control, and that was really intoxicating,” she says.

A significant portion of the film focuses on infographics illustrating Beanie Baby sales figures, archived news footage of crazed shoppers, and Beanie-related milestones, such as the company’s early endeavors in e-commerce. The film also channeled marketing films like Air, Tetris, Flamin’ Hot, and Blackberry.

The film attempts to extract social significance from this seemingly insignificant moment in time but struggles to provide substantial insights. It concludes weakly by suggesting that there will always be another fad, mentioning crypto and NFTs.

WHERE TO WATCH- You can catch the series on Apple TV+.

Dine for Palestine is an exclusive dinner event with Chef Dina Hosny hosted by ThatReally Cool Studio this Thursday, 16 November, that will offer genuine Palestinian food on a large, family-sized table to give a delicious communal experience. To find out more about signing up, click here.

Ibero-American Film Week has kicked off and will continue until this Saturday, 18 November. Catch a different film every day at 6:30pm at Zawya cinema, Downtown. Catch the full lineup of titles here. Entrance is on a first-come, first-served basis.

The exhibition Forever Is Now is back again at the Pyramids, open 9am until 4pm daily through this Saturday, 18 November. Book your ticket here or buy one on arrival.

Listen to some authentic oud atA3dat Saad El Oud. The musician Saad Al Oud and his band will be performing on Tuesday, 21 November at Room Art Space and Cafe, New Cairo. The concert will start at 9pm and you can book your tickets here.

Catch a rendition of Tawfiq al-Hakim’s Bank of Anxiety this week. It follows two friends who establish a private bank that uses anxiety as the currency. The play runs at the Falaki Theater at AUC’s Tahrir campus until next Sunday. No charge for admission, but you’ll need to show a photo ID at the door.

Catch a Christmas Charity Bazaar to bring on the warmth of the holiday season on Friday, 1 December, at All Saints’ Cathedral, Zamalek. The bazaar runs from 10:30am until 4pm. Proceeds will benefit a variety of charities here in Egypt.

The Syrian-German band Shkoon is performing in Egypt for Gaza. The concert will be held at the Pyramids on Friday, 1 December. Part of the concert’s proceeds will be donated to humanitarian aid dedicated to Gaza. Tickets are available here.

A River Dies of Thirst is a poignant collection of poems addressed by one of the prominent Palestinian voices, Mahmoud Darwish. The renowned Palestinian poet and author lyrically captures the tumult of 2006 Israel’s attacks on Gaza, the West Bank, and Lebanon. He was witnessing these deadly events from his home in Ramallah.

The book marks his last published collection which was released eight months before his death in 2008. Darwish touchingly addresses themes of love, loss, and exile against this turbulent backdrop, leaving hardship with notes of hope, humanity, and joy. The book was originally released in Arabic and then translated by Catherine Cobham.

Among the collection of over one hundred poems, A River Dies of Thirst holds a significant place. In this particular poem, Darwish paints a vivid picture of a small, tranquil river that flows between two banks, nurtured by its “heavenly mother” who sustains it with drops from the clouds — but the poem takes a somber turn as it reaches its conclusion. The river’s heavenly mother is tragically kidnapped, causing the river to slowly wither and perish from the torment of thirst.

Darwish is an essential addition to any bookshelf and is a timeless symbol of Palestinian identity, culture, and resistance.

What the markets are doing on 14 November, 2023

The EGX30 fell 0.1% at today’s close on turnover of EGP 4.0 bn (54.5% above the 90-day average). Local investors were net sellers. The index is up 64.0% YTD.

In the green: Ezz Steel (+5.8%), TMG Holding (+5.0%) and Alexandria Mineral Oils Company (+3.1%).

In the red: Credit Agricole (-5.3%), Telecom Egypt (-3.9%) and E-Finance (-3.8%).

Meet our founder of the week: Mayar Soliman, co-founder of Locken

OUR FOUNDER OF THE WEEK – Every Tuesday, Founder of the Week looks at how a successful member of Egypt’s startup community got their big break, asks about their experiences running a business, and gets their advice for budding entrepreneurs. Speaking to us this week is Mayar Soliman (LinkedIn), co-founder of Locken.

My name is Mayar Soliman and I’m one of the co-founders of Locken, a hair and skin cosmetic brand. Before Locken, I worked in marketing, after graduating with a bachelor’s degree in Business Marketing from the American University in Cairo.

I began my career working in Vodafone for four and a half years in the marketing department where it felt like a learning experience and I had the chance to explore different functions of the marketing department.

I also have a side venture calledMy Closet, which is an Instagram page I started in 2016 where I sell imported makeup like Huda Beauty, Kylie Cosmetics, SKKN by Kim Kardashian and more.

I realized that the demand for beauty cosmetics was high no matter how much I priced my items. So I kept thinking what if I was actually able to meet those demands and create products that were affordable to people and create high quality goods that meet international standards — with cool packaging to round it all out.

I had a really big issue with buying products in Egypt. Every time I would buy something from the local market, by the time I got home something about it would break, whether it be the bottle being broken or the pump would just snap. That experience made me want to create something that looked visually pleasing and was a good product.

It all started with my co-founders Hana Ghoneim and Amr El Kaissy (LinkedIn) who I met from university. It was a random day by the beach and we talked about the whole high-demand situation with the beauty products that I import. Hana had by that time amassed a huge follower base on Instagram, TikTok, and Youtube and advised me to capitalize on it and do something in cosmetics because there’s a huge gap in the market.

A couple of months later I made the sacrifice of quitting my job. I made this leap of faith while trying to figure out what I was going to do. Hana was with me every step of the way, and Amr joined as well, and that’s how Locken was born — we wanted to penetrate the local market with international standards in terms of everything.

It was not a lonely journey at all; I’ve met more people the past three years than I have met during my time in Vodafone, which had 10k employees. New suppliers, trying to form collaborations with other brands — there’s also so many startup events that I’m always attending to network with other people to expand and develop.

In terms of financing and long term plans, we’ve been bootstrapped from the start until now but we’ve started seeking investments to really grow regionally, not just in Egypt. So the plan is to become a global cosmetics brand, to be placed in international chains like Sephora, Selfridges, and Harrods to represent the high capabilities of Egyptian and Arab products.

We’re currently challenged by international payment limits on Egyptian credit cards, which aren’t enough to cover our media buying and website renewal fees. That’s why it’s important for us to start exporting to bring in foreign currency revenues.

My family is actually really proudthat I have my own brand and they love that when they go to the supermarket or the hair salon they get to see their daughter’s brand sitting on the shelves. Their excitement makes me happy.

In my freetime I love kickboxing — it’s one of my favorite activities to do in general. It really releases all your negative energy and it’s a good full body workout as well.

I do many things to get inspired: I’m always tracking new trends globally to see where that market is heading even if it’s not cosmetics related. It could literally be anything and it always reflects on every industry — usually, when there is a specific trend whether it’s on TikTok or it’s a trend where people are doing something specific or if they’re boycotting specific items — so you’re always trying to capitalize on different activities that people are doing.

Staying current and innovative is what I look for. I also like seeing what other cosmetic brands are doing, especially abroad, because they are more developed than the Egyptian market. I look at how they take different types of products and kind of merge them together.

The toughest thing about starting a business in Egypt is the currency fluctuation, especially when a lot of your raw materials are imported and you’re charged in USD. But at the same time you need to strike a balance between maintaining your prices in the local market to provide affordable prices, while maintaining margins.

If I didn’t have Locken I would’ve tapped into the real estate industry. I would’ve started a prop-tech type of thing, just because the real estate market is really blowing up in Egypt given the economic situation. People are looking for different forms of investments and one of which is real estate.

A startup that I really admire and is successful is Lucky One, a B2C loyalty app, because I was in charge of loyalty in Vodafone and one of the projects I’ve worked on with the people who founded Lucky One was another B2B loyalty company, Dsquares.

The biggest strength for startups in Egypt is that it’s so unsaturated there’s still so much you can do, name any industry in the market and you’ll find a gap.

The biggest challenge to startups in Egypt is the labor force and most of the factory suppliers are not as skilled and not that attentive to detail. As a business owner you need to be very attentive to detail to get them on board and convince them to do things that are not within their scope of knowledge and experience — they’re usually capable of doing these things but they’re not used to it — they don’t want to disrupt the market with any faults in the product.

My advice for anyone thinking of starting a business would definitely be to find a product that you like and go for it, especially if you’re in Egypt — the market here is massive with an appetite to match and will surely absorb new products, services, applications, and tech products.

The economic crisis is also making local high-end reasonably-priced products more appealing as all imported products have just become ridiculously expensive. Plus, if you mass produce you should be able to maintain an affordable price.

THE ENTERPRISE ENTERTAINMENT CALENDAR

NOVEMBER

26 October-18 November: Forever Is Now Exhibition, Pyramids of Giza.

6-18 November (Monday- Saturday): The Ibero-American Film Week, Zawya cinema, Downtown.

13 November (Monday): Taste of Books seminar, Institut français d’Egypte, Mounira.

14-15 November (Tuesday-Wednesday): Destination Africa Expo at Royal Maxim Palace Kempinski.

15-24 November (Wednesday-Friday): Cairo International Film Festival (CIFF).

16 November (Thursday): ELFIT Sports and Fitness Games at New Capital Sports City.

21 November (Tuesday): A3det Saad El Oud concert, Room Art Space and Cafe, New Cairo.

23 November (Thursday): Saad ElOud Concert at Arkan Plaza.

25 November (Saturday): Masr El Gedida Carnival at Maryland.

26 November (Sunday): Souad Massi concert at Tap East.

DECEMBER

1 December (Friday): Cairo Fun Festival by Bike Zone Egypt in Heliopolis.

1 December (Friday): The Christmas Charity Bazaar, All Saints’ Cathedral, Zamalek.

1 December (Friday): Skhoon band concert, Pyramids, Giza.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Q1 2024: Opening of the newly developed Pyramids Plateau in Giza.

2024

JANUARY

7 January (Sunday): Coptic Christmas.

25 January (Thursday): Revolution Day.

APRIL

9 April (Tuesday): Eid El Fitr (TBC).

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (TBC).

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC).

30 June (Sunday): June 30 Revolution Day (TBC).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

23 July (Tuesday): Revolution Day (TBC).

SEPTEMBER

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

6 October (Sunday): Armed Forces Day.

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