For some brands sponsorships aid in research and product development, motorsport and mountaineering are two sports where this the case. Other sponsorship deals, for instance college athletes and premier league footballers depend on the individuals effect as an influencer as much as their role on pitch. All of these complexities will affect the perception of the sponsorship value and effectiveness. Sponsorship being unmanaged and unmeasured isn’t a new phenomenon. – Sponsorship ‘unmanaged and unmeasured’, WFA warns – The Media Leader. Shirt sponsors are basically dependent on the amount of time on screen. Sponsoring celebrities like Jackie Chan is more about attracting eyeballs to the companies advertising campaigns.
(Jackie Chan represents a particular problem in this sector of sponsorship because he represented over 12 brands at the same time. From local companies that made game consoles suspiciously similar to Nintendo systems to Japanese multi-nationals Canon and Mitsubishi.)
Part of this focus on sponsorship measurement might be about the culture change digital advertising created: How the digital revolution led to a greater justification for advertising – The Media Leader. Famously, telecoms executives love of particular sports influenced sponsorship programmes of their companies. Sir Peter Bonfield was a keen sailor and BT sponsored the Global Challenge yacht race series.
Sir Chris Gent, over at Vodafone was a big cricket fan. The sponsorship would have been difficult to measure as a lot of the impact would have been in cementing existing relationships and facilitating new ones through corporate entertainment. With both, there would be some efforts to demonstrate the relevance of the sponsorship, but it was very much putting the cart before the horse.
Grateful Dead x Stundenglass Bong | Esquire – yes the Grateful Dead now have an official bong for resale, but the author’s deadhead memories are the thing to read on this article
Louis Vuitton is selling a €6,000 digital mini trunk by Nicolas Ghesquière | Vogue Business – Louis Vuitton is selling a €6,000 digital mini trunk by Nicolas Ghesquière. The next product available to LV’s exclusive group of NFT holders is a mini trunk bag designed by the brand’s women’s artistic director. Only 200 are available, and the physical will land in March.
I was sparked to lead this post based on footage that I watched about a priest in South India with regards a robotic elephant. Robots in religion have taken off in both Shinto and Hindu ceremonies.
Japan
Academics have widely talked about how the Shinto-based belief system have aided Japanese societal acceptance of robots, in comparison to western society. Secondly, Japanese authors have been exploring what it means to be human and what kind of dilemmas and opportunities do robots and AI bring in a future society. Robots in religion are a natural extension of robots in society.
Buddhism leads the way
What’s less commented on is that Japan’s buddhist temples have been leading robots in religion. The reality is that many Japanese see Shinto and Buddhism as complementary in nature and get involved in both beliefs.
Japan has some unique religious challenges that are interlinked. Temples are struggling as less people are active in their religious practice, the factors for this decline is multi-factorial in nature.
A second challenge that as the population shrinks roles need to be automated. What started in factories is now impacting the food and beverage sector (vending machines and restaurant robo-serving staff), so it was only a matter of time that robots in religion would supplement the clergy.
India
In India robots in religion is about kindness and de-risking religious ceremonies. In South India elephants take part in religious ceremonies. However the conditions that elephants are kept in can be cruel in nature and even result in death. Secondly, elephants can unintentionally kill or injure people involved in a religious celebration. This report on NHK World shows how robots in religion have been adapted to Hindu needs.
Finally, the elephant robot is used in celebrations over a large geographic area and is easily transported around. Robots in religion are likely to make even more sense as India urbanises even further, as the benefits are amplified in the denser environment.
How confucianism, communism (in particular Stalin’s take on Leninism) and an accident of history has led to the nationalistic, fragile, insecure Chinese state with imperial ambitions we know today.
China’s ‘trinket town’ at heart of push for renminbi trade | Financial Times – Yiwu was one of the first cities in China to allow individual merchants to settle larger cross-border deals in renminbi. Most cities have an annual cap of $50,000. Given Yiwu’s reputation for cheap goods and flexible terms, helped by the fact that wholesalers do not pay either corporate tax or market rent, exporters have sufficient bargaining power to request settlement in renminbi. “When you have only one place to go to purchase something, the seller sets the terms on how transactions are settled,” said James Wu, a Yiwu-based furniture exporter who began demanding renminbi payments from Middle Eastern clients last year – the last quote is a great example of
Interesting video from NHK World on how temples are adapting to a lack of new attendees and priests. I am not sure whether this is down to demographic change or the secularisation of society
A Pokémon-Card Crime Spree Jolts Japan – WSJ – Japan has been staggered by a Pokémon crime spree. Stores are now paying for banklike security to ward off villains who go to extraordinary lengths, even rappelling down the side of buildings, to plunder Pokémon. Hosaka was working in senior care when he had the idea of opening a cozy card shop in the suburb of Machida where customers could mingle at tables. Instead, he says, the little cards, “have become like Rolex watches, gold, silver, platinum or used cars.” – It makes sense when you think of the cards being ‘real life NFTs’
Criminal Rolex Gangs and Traveling with Watches, Part I – WOE – crime affecting luxury consumption. Interesting that London is a crime centre is prominently name checked alongside Johannesburg, South Africa. This will impact luxury retailers, luxury travel and hospitality and auction houses
Luxury
Bay Area Lawsuit Alleges Man Spent $220,000 To Get A Watch He Never Got – there’s also the added complexity of Shreve recently losing its status as a Patek AD. The lawsuit brings some ten causes of action against Shreve, including breach of contract, intentional and negligent misrepresentation, fraudulent concealment, false promise, and unfair business practices, pursuant to California’s Unfair Competition Law – this was only a matter of time. Its the same in the UK
Ad agencies and clients clash: tension over transparency in fees, services | Ad Age – a talent shortage has left agencies without enough senior executives to service accounts. Combined, such factors contribute to what marketers see as an increasing lack of transparency. One executive who leads procurement across marketing and content for a major consumer goods company said the discounts and rebates that media agencies, in particular, get from a media buy have always been “murky,” but one area agencies have always been transparent in is breaking down their fees. The brand executive said auditors, working on behalf of the marketers, have previously been able to get agencies to disclose their margins, overheads and salaries without protest—it’s standard practice and allows clients to know they are being charged a fair price. But that’s starting to change, they said, having run into issues with getting shops to break down their fees in the recent agency review their company underwent
Media
This Year Next Year: 2023 Global Mid-Year Forecast – GroupM – calls the end of radio’s global growth story. Even taking into account streaming, WPP says that, globally, ad-supported audio has peaked. It will grow just 0.3% this year, says GroupM then “remain roughly flat over the next five years”. It’s about to join newspapers, magazines and broadcast television in a downward trajectory. GroupM also tackles the impact of AI on the industry. It reckons that within five years, the portion of “AI-enabled” advertising revenue globally will be worth $800bn. What is impossible to quantify is whether any of that is new money. Most likely, none of it. What is also impossible to quantify is just how dramatic the AI-driven reductions in cost of production will be. That sounds a relatively benign question until one realises that all those reduced costs are human jobs. GroupM identifies five key themes: Regulation (particularly around data privacy); connected TV (and an annualised 10%+ growth in the segment)’; AI “is likely to inform, or touch in some way, at least half of all advertising revenue by the end of 2023”; retail media to overtake TV by 2028; and “new business growth” (which sounds like the sort of thing an agency person would put in their predictions). Most importantly though, the GroupM outlook points to a more more significant factor. We’re at the end of a cycle that was defined by shifts between advertising channels, and then the disruption of Covid. “We are at an inflection point where the secular drivers of advertising growth above and beyond GDP growth are maturing, the pandemic upheaval is receding and the dynamic rise of digital advertising has slowed. This is the basis of our underlying forecast of mid-single-digit advertising growth over the next five years. However, the pervasive impact of AI on the world of advertising could change that.”
AI at Work: What People Are Saying | BCG – leaders love it, workers don’t. Businesses have only addressed the needs of leaders, which probably dialled up the anxiety with a sense that AI is something that happens to you and your career rather like a bad car accident
Beeper — All your chats in one app. Yes, really. – clients like Adium became less useful as Google and other services went away from common protocols and the IM giants AOL, MSN and Yahoo! disappeared. Beeper are trying to address this
Silicon Valley Bank funded this documentary about their history from their founding in 1983 to 2003. It’s now preserved by the Computer History Museum in Mountain View – one of the towns that make up Silicon Valley.
Bloomberg have done a programme explaining about what happened with Silicon Valley Bank and how it went under so quickly. Silicon Valley Bank had problems due to raising interest rates, issues with their risk management and an abnormally high amount of customers withdrawing funds. However there was also an issue about the way Silicon Valley Bank communicated with the market, which in turn created a crisis in depositor confidence.
Health
Alphabet’s keynote and plans for the health industries. Usual nod to privacy (hahahaha), cloud computing, consumer devices and AI.
Chinese tourists unwilling to pay extra for sustainable travel options even as concern about climate change on the rise, McKinsey and Trip.com report says | South China Morning Post – Chinese travellers are increasingly concerned about climate change and are aware of their environmental footprint, but are still not ready to pay extra for sustainable travel, according to a recent report by consulting firm McKinsey & Company and Chinese travel services provider Trip.com Group. Data from McKinsey, which surveyed a total of 5,457 respondents from 13 countries including China, the United States, India and Saudi Arabia, showed that more than 60 per cent of Chinese travellers were worried about climate change and believed that commercial aviation should become carbon neutral in the future, putting China near the top among the countries surveyed. A separate survey conducted by Trip.com last year showed that almost 85 per cent of Chinese travellers rated sustainable travel as important or very important. However, compared to travellers from other countries, Chinese tourists are reluctant to pay a premium for sustainable travel. Only 20 per cent of surveyed Chinese tourists said they would pay 2 per cent extra for carbon-neutral airline tickets, ranking near the bottom among the countries surveyed – well what would you expect when you have been repeatedly told by your government and media that the west and the United States is to blame for it all anyway? Secondly, civil society like Greenpeace or the Sierra Club can’t operate in China which will also affect awareness
More on the serious issue of violent crime for luxury watches in London. I wrote recently about the ‘London Watch‘ where watch wearers have an empty wrist when going around central London. This is going to negatively impact everything from luxury sales to hospitality and tourism in the UK at a time when the economy can ill-afford to turn down business.
For a while Vice News was the hotness in news reporting, now they seem to have got their mojo back with a report on Chinese business people taking advantage of corruption at the highest level in Guyana. British Hong Konger Isobel Yeung did an amazing report on how Chinese business, especially state owned enterprises, had supercharged corruption in Guyana.
Hyundai N Vision 74
Korean car manufacturer has been following the path taken by the likes of Toyota to expand from being a manufacturer of value, but low margin cars. This involved making a luxury division – Genesis is a clear Lexus analogue but with Korean characteristics. N is their version of what used to be Toyota’s TRD or Gazoo Racing as it is now.
The N Vision 74 shows a reignition of Hyundai’s interest in hydrogen fuel cells for passenger cars, Hyundai had paused hydrogen fuel cell development for passenger cars in 2021. Presumably the higher energy density of fuel cells together with the skyrocketing price of lithium and cobalt has caused to them to resurrect the programme? The design is a homage to Italdesign’s Hyundai Pony Coupe concept from 1974. The same year Italdesign had also designed the first Volkswagen Scirocco and the Alfa Romeo GTV. Many commentators have compared it to the later DeLorean DMC 12. The DMC 12 was also designed by Italdesign in 1981.
There is a good deal of 1970s and 1980s track car vibes in there as well including a louvred back window and muscular arches. The wheels seem to use vintage Speedline influenced guards that would funnel air into the brake discs but keep rocks, sand and snow ingress to a minimum.
Japanese itchiness
Japanese skincare brand Muhiis a line of products that deal with itchy or irritated skin from the likes of allergies or insect bites. They have launched a campaign that deals with the subject of crotch itch including an e-sports tournament and a branded series of anime. The e-sport tournament is a clever way of getting attention for the series of crotch related games that they have on the Muhi website.
Perun
Perun has done some of the better analysis for armchair warriors following the Ukraine war. The analysis is thoughtful and doesn’t have an inherent bias. He had used to run a mediocre gaming channel, but analysis seems to be his strength.
Davis Polk Asia chair withdraws from Hong Kong security law forum | Financial Times – Guessing that Davis Polk Asia didn’t do a thorough opportunity cost analysis before agreeing to participate in the Hong Kong National Security Law Forum. An alternative hypothesis that I have heard about Davis Polk Asia could be due to being really screwed globally and will ANYTHING for some billings. Even if David Polk Asia really desperate, I can’t imagine that there will be that much upside in the greater China market and maybe some backlash in the law firm’s other international and US domestic offices. The backlash happened as soon as the FT published news of their forthcoming participation. I can also imagine that the subsequent Davis Polk Asia withdrawal will cause blowback with mainland clients and government contacts. The smart play for Davis Polk Asia would have been to decline the place in the first instance. It is even more surprising when David Polk Asia could have looked at Mayer Brown pulling away from representing Hong Kong University last year was a case study in likely outcomes. Given that one would want solid wise heads in the senior staff of a law office rather than status seeking sycophants, the Davis Polk Asia chairman Mr Rogers doesn’t look like a credit to his firm. Discretion might have been the better part of valour in this case.
Shanghai lockdown exposes global supply chain strains | Financial Times – the Port of Los Angeles, for example, is monitoring data from China on energy consumption, traffic patterns and pollution, to understand how busy the country’s factories are so it can prepare for the volumes of cargo to come. “I’m on the phone most evenings with friends . . . in Shanghai telling me what’s happening on the ground,” – interesting how they’re having to rely on abstract data
As Q1 results disappoint, should brands look beyond China? | Advertising | Campaign Asia – brands were able to offset these losses thanks to the strength in North America and Europe. Aeffe, the parent company of Mochino, nearly tripled its net income in the three month period, as Europe (which represents almost one-third of its total revenue) jumped 37.5% thanks to Germany and the UK. Tapestry shares even climbed on May 12 after it posted that sales in North America rose 22% year-on-year, fully offsetting mid-teens decline in China. These two regions will be crucial as China slowly recovers from its worst Covid wave since 2020. Although the mainland is on track to become the world’s largest luxury market by 2025, the US is still in top spot, accounting for 31% of the global market (China accounts for 21%). As such, it is important for brands to continue building traction in North America and Europe to cushion against near-term losses in Asia
China Brief: Expanding State Power Still Tops Xi Jinping’s Agenda – The published speech shows how much of Xi’s economic thinking is about control, tied to what he sees as a necessary expansion of government power. The speech frames China’s problems as coming down to the “reckless expansion of capital,” or private industry, which can only be curbed by expanding the CCP’s power. That idea relates to one of Xi’s favorite terms from last year: “common prosperity,” achieved via the redistribution of wealth. Publishing the 2021 speech now may be an attempt to revitalize that language. Other Chinese officials, such as Premier Li Keqiang, are focused primarily on addressing economic issues, but party power still tops Xi’s agenda. One part of the speech may seem incompatible with its profession of socialist values: how conservative it sounds about welfare. Xi explicitly states that “common prosperity” isn’t welfare. His words also suggest a fear of overpromising what the government can deliver, but they also echo an idea I’ve heard from rich and powerful people in China—that people living in democracies never vote to cut welfare benefits because the public is lazy and entitled
Consumer behaviour
“Macho pink” menswear takes over in China | Vogue Business – “Macho pink” can be seen as a kind of “rebellion”, however, this rebellion currently remains limited to product categories considered mainstream for men, such as e-sports, sneakers and electronics. As male consumers in China put more emphasis on self-expression, this is validated to some extent by pink goods. – this reminds me of the bold neon colours of 1980s skiwear brands like Nevica. More on the social impact here: Millennial Pink Begone, Enter the Age of Hot Pink Fury | High Sobriety
Liberals Should Be Worried About the Conservative Comedy Scene – POLITICO – Conservative humorists aren’t merely catching up to their liberal counterparts in terms of reach and popularity. They’ve already caught them — and, in some cases, surpassed them, even as the liberal mainstream has continued to write conservative comedy off as a contradiction in terms. “[Liberals] are ceding ideological territory in the culture wars to the right via comedy,” Marx told me, noting that once-beloved liberal comedians like Stewart are struggling to find their footing in the treacherous landscape of post-Trump humor. “This thing that we thought we have owned for the last 20 years has been leaking, and the borders are slowly getting shifted.”
Company Reviews on Glassdoor: Petty Complaints or Signs of Potential Misconduct? – HBS Working Knowledge – Whether it’s Theranos and its fraudulent blood testing technology, Wells Fargo and its fake financial accounts, or Volkswagen and its bogus emissions data, a whistleblower eventually comes forward to expose the behavior, and executives are held accountable. “But what you start to realize is that the problems that have been uncovered have been going on for a very long time,” says Dennis Campbell, a professor of business administration at Harvard Business School. Far from being just a few bad apples, most business improprieties occur within a widespread culture of bad behavior—or at least, a lot of people looking the other way as misconduct is taking place, he says.
Koreans Think AI Is the Future – The Chosun Ilbo – 1/ artificial intelligence 2/ robotics 3/ future mobility 4/ hydrogen fuel 5/ energy 6/ biotechnology 7/ aerospace 8/ new materials 9/ batteries 10/ semiconductors – skews to Korea’s current strengths in semiconductors, hydrogen fuel cells and robotics
Luxury
LVMH-owned watchmaker Tag Heuer to accept crypto payments | Vogue Business – terrible timing given the bear market in crypto at the moment. Its also part of the odder financial aspects happening in the watch sector. From companies going vertical into the pre-owned marketplace to Breitling adopting a car lease type model for watches
Marketers, investing in market research is not superfluous – there is the big initial deep dive that happens when a new CMO arrives or a new product or market is contemplated. Second, there is the lesser but more common annual research that updates the organisation on the market, its segments and associated behaviour that feeds annual market planning. Finally, there is the more occasional inquiry into a specific micro issue that springs up. A pricing problem, a sudden reduction in market share or some other occasional issue that demands customer insight to guide management action
Hong Kong Considers Blocking Telegram Messaging App, Local Paper Says – Bloomberg – Hong Kong authorities are deliberating whether to curtail public access to the messaging service Telegram, the Sing Tao Daily reported, potentially reviving fears the former British colony is moving closer toward Beijing-style internet controls. The Privacy Commissioner for Personal Data is considering invoking regulations for the first time to restrict access to a platform it found to be rampant with doxxing, the local newspaper reported Tuesday. The widespread doxxing — or online exposure of sensitive and personal data — was aimed at government officials as well as citizens, the newspaper said, citing unidentified people.
Chinese Hackers Tried to Steal Russian Defense Data, Report Says – The New York Times – The emails landed on March 23 in the inboxes of scientists and engineers at several of Russia’s military research and development institutes, purportedly sent by Russia’s Ministry of Health. They carried a subject line that offered seemingly tantalizing information about a “list of persons under U.S. sanctions for invading Ukraine.” But the emails were actually sent by state-sponsored hackers in China seeking to entice their Russian targets to download and open a document with malware, according to a new report to be released Thursday by the Israeli-American cybersecurity firm Check Point… The Chinese campaign targeted Russian institutes that research airborne satellite communications, radar and electronic warfare
