Category: branding | 品牌推廣 | 브랜드 마케팅 | ブランディング

The dictionary definition of branding is the promotion of a particular product or company by means of advertising and distinctive design.

I have covered many different things in branding including:

  • Genesis – the luxury Korean automotive brand
  • Life Bread – the iconic Hong Kong bread brand that would be equivalent of wonder loaf in the US
  • Virgil Abloh and the brand collaborations that he was involved in
  • Luxury streetwear brands
  • Burger King campaigns with Crispin Porter Bogusky
  • Dettol #washtocare and ‘back to work’ campaigns
  • Volkswagen ‘see the unseen’ campaign for its Taureg off road vehicle
  • SAS Airline – What is truly Scandinavian?
  • Brand advertising during Chinese New Year (across China, Hong Kong, Singapore and Malaysia)
  • Lovemarks as a perspective on branding
  • BMW NEXTGen event and Legend of Old McLanden campaign
  • Procter & Gamble’s Gillette toxic masculinity ads
  • Kraft Mother’s Day campaign
  • Kraft Heinz brand destruction
  • Porsche Design in the smartphone space
  • Ermenegildo Zegna
  • Nike’s work with Colin Kaepernick
  • Counterfeit brands on Instagram, Alibaba and Amazon
  • Gaytime Indonesian ice cream
  • Western Digital
  • Louis Vuitton collaboration with Supreme
  • Nokia
  • Nike Korea’s ‘Be Heard’ campaign
  • Mercedes SLS coupe campaign
  • Brand collaborations in Hong Kong
  • Beats headphones
  • Apple
  • Henrion Ludlow Schmidt’s considerations of branding
  • Cathay Pacific
  • Bosch
  • Mitt Romney’s failed presidential bid
  • Microsoft Surface launch
  • Oreo Korean campaign
  • Chain coffee shop brands and branding
  • Samsung’s corporate brand
  • North Face’s brand overeach in South Korea
  • Mr Pizza Korean pizza restaurant and delivery service brand
  • Amoy Hong Kong food brand
  • Chevrolet Corvette ‘roar’ campaign promoting a build your own car service
  • 2024 Christmas advert collection

    The idea for this 2024 Christmas advert collection was two-fold. Collect and reflect on the European ad industries most creative period of work, which tends to happen at this time of the year. In advertising at this time of the year, we’re usually head-down getting things done until the middle of December, so it made sense to pull it all together.

    Aldi

    Aldi do Christmas adverts right. I don’t mean the the creative is amazing, but they get basics right. It builds on previous campaigns linked by Kevin the Carrot. It has engaging storytelling. It’s the communications strategists Christmas ad rather than the height of creative excellence. Consistency, fluent objects stacking up its brand building power to reinforce memory structures about what Aldi is at Christmas.

    Amazon

    Amazon’s Midnight Opus was designed to be used in the US as well as Europe so it has more of a ‘holidays’ than Christmas vibe to it. But the emotional storytelling is top-notch.

    ASDA

    If Aldi is the communications strategist’s Christmas ad, ASDA’s is the copy-based creative’s Christmas ad. It’s based on the kind of wordplay that fuelled the likes of the comparethemarket meerkat.

    Barbour

    Leaning into Barbour’s favoured status with the rural set in the UK, the Shaun the Sheep collaboration makes perfect sense.

    https://youtu.be/8XS_SG76kQ0?si=xzSFyCeIE9aSk4Gw

    Boots

    Boots 2024 advert was something I had only ever seen in a cut down 15 or 30 second spot centred around ‘slaying’ scene in the advert. In totality it made a lot more sense and was based on some nice insights. The advert implies that Boots is expecting to be the destination for last-minute present shopping – which puts it in an interesting cross-segment competitive space alongside the local off-licence as much as department store beauty counters.

    Christian Dior

    Christian Dior’s Ball of Dreams is as visually opulent as you’d expect from the luxury brand. Its vibe is very similar to the 2022 Christmas Christian Dior advert The Atelier of Dreams implying a certain amount of campaign consistency. While I won’t swing around on a chandelier I do like Dior’s Eau Sauvage.

    Disney

    Disney’s 2024 Christmas advert focuses on the brand’s core strength of storytelling. It manages to make the customer the hero, rather than leaning more heavily on its IP library too much.

    JD Sports

    JD Sports would find it hard to top last years Christmas ad that tapped into something deep in a working class Christmas. This year’s version is more like a fever dream of vignettes, definitely relatable but not the joyful apex of last years effort.

    They are tapping into similar ideas about family that Tesco did, but taking it in a very different direction. It also represents a vision of an ‘imperfect’ Christmas, rather than the usual ideal.

    John Lewis

    John Lewis has high expectations on their adverts. Their 2024 Christmas advert ‘The Gifting Hour’ captures the generosity and self-imposed stress of giving.

    Lidl

    Lidl’s 2024 Christmas advert A Magical Christmas has a nice twist on the Christmas ad with it leaning into Lid’s Toy Bank to help local communities. It looks like they did a pan-European ad to give it a Christmas card feel.

    M&S Christmas Food

    M&S keep consistent in their ‘this isn’t just food, it’s M&S Christmas food’ in their voice over harking back to when Nigella Lawson used to do their intros. This is more interesting in production than the vintage food porn M&S historically used.

    Morrisons

    Morrisons uses oven gloves as fluent objects, but the benefits would only be appreciated if it is repeated as a creative motif in future campaigns a la Aldi’s Kevin the Carrott. As an ad it could have been screened anytime in the past forty years and not stood out, its curiously atemporal in nature.

    Sainsburys

    Sainsbury’s draws on the intellectual property rights of Roald Dahl’s books with an appearance of The BFG. It’s a big production but could it have worked harder creatively?

    Shelter

    Homeless charity Shelter moved beyond the usual poverty porn of NGOs in their World of Their Own film and humanises their clients. The creative and storytelling are both on point. If this doesn’t win awards next year; it’s probably only because they didn’t enter.

    Tesco

    #FeedYourChristmasSpirit is a solid highly emotive Christmas ad. It challenges what many younger British people feel about family such as tightly knit house share friends like the 1990s era show This Life and its American counterpart Friends.

    Tesco pulls it back to traditional familial ties and memorable moments that home baking creates.

    Vodafone UK

    Vodafone makes an interesting play on its heritage to differentiate itself from the likes of Three, EE, and the mobile virtual network operators (MVNOs). From a brand perspective, it’s the last network standing. Creatively, they’ve done a good job of incorporating emotion, which has led to strong performance in System 1 testing.

    Interesting that they didn’t have a Roman Kemp-fronted advert, which would have been more consistent with the rest of the creative that they’ve ran this year.

    The cynic in me suspects that this ad could also be a way for the marketing team to pre-position themselves ahead of political manoeuvring for roles, should Vodafone UK and Three UK merge. This would likely be a first step in enabling their owners to exit the UK’s low-growth, financially challenging market.

    Waitrose

    Waitrose put a greater focus on the product with its dramatisation of ‘Sweet Suspicion’ a minor Enid Blyton-esque mystery. Clever, but is it emotionally engaging?

    Honourable mentions

    Aldi Australia

    Aldi Australia offers a very localised perspective of the Christmas experience. Part work-of-art; part comedy.

    Deutsche Telekom

    Deutche Telekom looks at the higher calling of telecoms rather than the way its knit into our daily lives with its 2024 Christmas advert. The production is beautiful. It’s a direction that Three or Vodafone could have taken given their global footprint, but Deutsche Telekom manage to carry it off.

    McDonald’s Philippines

    This 2024 Christmas ad for the Filipino part of McDonald’s features the local chairman George Yang and Jose Mari Chan – a well-known singer-songwriter. The tonality and twist in the tale are so well done.

    If you like this, you might want to compare and contrast it with Chinese New Year advertising from across Asia.

  • Klad + more stuff

    Klad

    Klad is a new trends in illegal drug distribution. Klad sprang out of the online anonymity of the darknet. Breaking Klad: Russia’s Dead Drop Drug Revolution | Global Initiative goes into detail about how the Klad system works. Klad seems to be the narcotics equivalent of an Amazon locker. The customer pays the money via a dark web service and is directed to a concealed geocache with their product in it. These caches are refreshed by low level network members whose soul role is to service the klad network.

    Understanding Russia’s darknet markets and the logistics systems underpinning it offers insight into the future of drug trafficking (and other crimes) worldwide.

    Klad is likely to be further complicated by the tight linkage between the Russian state and international organised crime groups.

    China

    Blackpink’s Lisa ignites controversy on Chinese socials with cabaret performance | Jing Daily – an old article but shows the tension of feminist and male-centric themes, modern mindset versus tradition.

    Consumer behaviour

    The Future of Men from TEDWomen 2017 – by Jack Myers

    Climate emotions, thoughts, and plans among US adolescents and young adults: a cross-sectional descriptive survey and analysis by political party identification and self-reported exposure to severe weather events – The Lancet Planetary Health – more data supporting the idea of climate despair – poor mental health related to concerns about climate change.

    The Game Theory of Democracy – The New York Times – Adam Przeworski developed a theory that democracy is best understood as a game, one in which the players pursue power and resolve conflicts through elections rather than brute force. Democracies thrive when politicians believe they are better off playing by the rules of that game — even when they lose elections as it maximises their self-interest over time. It works when the stakes of power remain relatively low, so that people don’t fear electoral defeat so much that they seek other methods reversing it. Winners of elections need to act with restraint. They can’t make life miserable for the losers, or foreclose the possibility that future elections would allow the losers to win. But recent years suggest that even “working” democracies can be far more fragile than was once believed; Przeworski doesn’t see an obvious way to protect it from being weakened further.

    Using F-word at work is no sacking offence in the north, rules judge | The Times – As rude as the comment was, the so-called f-word had become commonplace “in the public sphere” — and that was particularly the case in the north of England. “Mong” is a derogatory term for someone with a learning disability, especially related to Down’s syndrome, and is also used as a synonym for “idiot”. Shergill was hearing a claim from Robert Ogden, who was said to have made the jibe during an office discussion about doughnuts and losing weight. His colleague was said to have felt “violated and shocked” by the remark and was left in tears before reporting Ogden to bosses, who eventually sacked him. Ogden is now in line for compensation after the judge ruled that his “lawless and toxic” office was rife with similar comments.

    Design

    Ideas We Love: Re.Uniqlo Studio

    Energy

    Norway’s electric car sales set new world record | VoA

    Finance

    Inside Goldman Sachs’ years-long power struggle over its China venture FT – Goldman Sachs had their face ripped off and they are still enthusiastic about the Chinese market. Senior executives gave themselves bonuses while the business shelled out a billion dollars for very little. In addition, looking at market timing it’s unlikely Goldman Sachs will realistically get the kind of returns their shareholders would want ever.

    FMCG

    Starbucks needs to cut the crap from its brand positioning | MarketingWeekStarbucks is more than coffee. It does have brand appeal. But it’s more basic than its highfalutin mission would have you believe. It’s a combination of being in the right places to answer the right category needs at the right time, with a small but not unimportant wedge of American quality and efficient delivery.

    There is plenty of brand equity in Starbucks, it’s just apparent that Starbucks never actually worked out what it was. Professor Dolly Parton has the best definition for positioning: find out who you are and do it on purpose. To use her analogy, Starbucks never got to first base never mind second.

    Yes, Starbucks grew under Schultz’s second tenure. He was an exceptional leader twice over. However, there was a vacuity within the brand that was palpable when you entered its stores. The commoditisation of Starbucks that Schultz spotted so brilliantly continued, offset by other excellent decisions that kept it growing.

    The brand’s nonsensical mission statement did not harm it. It did not lose the company money. But its fundamental stupidness and overreach meant that the potential benefits of a more prosaic, practical, accurate position were missed. A problem deferred. Contrast with Why am I optimistic about Starbucks China ☕ | Following the Yuan

    Gadgets

    Why has the Internet of Things failed? « Pete Warden’s blog

    Interesting video by The Verge that covers how supply chains are crippling cassette players and compact disc players. Bottle necks include magnetic heads, cassette mechanisms (one factory in China makes a bad dupe of an old Japanese company design), laser pick-ups and compact disc mechanisms have a similar problem. The programme also misses out that the likes of Dolby Labs no longer licence their noise reduction technology.

    Health

    Telehealth’s GLP-1 ‘gold rush’ is powered by these medical groups | STAT News

    Hispanics and Mental Health: Gaming as a Pathway to Self-Care | Ideas Exchange by Klick Health

    Hong Kong moves to restrict business use of medical terms such as ‘treatment’, ‘clinical’ | South China Morning Post – Under the planned ban, which has already been added to the Private Healthcare Facilities Ordinance but not yet enforced, premises other than licensed healthcare facilities or exempted clinics would not be allowed to use terms such as “clinical”, “healthcare”, “medical”, “treatment” and “therapeutic”. Currently, it is not uncommon to see such descriptions used in non-medical settings. An online check by the Post found a gym claiming it could offer “targeted pain treatment” with a procedure called myofascial release. Another centre also claimed to treat various pain conditions “commonly seen in the city” by stretch therapy.

    Hong Kong

    Trump, Harris both like ‘poison’ for Beijing, says former top US envoy to Hong Kong | South China Morning Post – while the story leads on Kurt Tong being the former US consul general – you could rewrite the precise of the article as head of strategic advisory firm advises Hong Kong to employ advocacy tactics to detoxify Hong Kong government reputation in Washington (presumably including lobbying and think tanks).

    Innovation

    Watching Nintendo think out loud about radar and music (Interconnected)

    Marketing

    Great video hosted by Kantar featuring Mark Ritson on the benefits of consistency in brand building. I can’t embed here, you have to go to YouTube to watch it.

    Huddle 001 – Is strategy sick? – Outside Perspective

    Media

    OnlyFans Has Paid $20 Billion to Creators Since 2016, CEO Says | Variety

    Retailing

    Asos CEO ‘not worried’ about Vinted or Shein despite mounting losses | Retail Gazette – interesting. I wonder how the brand building work is going? I have seen lots of ads, but they’ve felt disjointed and flat

    John Lewis partners with Klarna for ‘buy now pay later’ option – Retail Gazette – the middle class now need the digital equivalent of ‘lay away’ – not a great economic indicator

    Security

    Chinese Group Accused of Hacking Singtel in Telecom Attacks – Bloomberg

    Software

    Split mixed tracks with LANDR Stems | SOS – this is huge

    Style

    Kizik Hires Nike Footwear Veteran Andreas Harlow as SVP of Design – Footwear News – moving prior to the new CEO Harlow was responsible for design of the Jordan line of footwear, but makes sense when you read my John Donahue and Nike related post.

    Technology

    She Built a Microcomputer Empire From Her Suburban Home | Every

    Telecoms

    Interesting article on the state of the internet. It looks as if the network might be maturing: Is the (US) Internet Really Slowing? – On my Om

  • October 2024 newsletter

    October 2024 newsletter introduction

    Welcome to my October 2024 newsletter, this newsletter marks my 15th issue. This is the second year that I have written about Hallowe’en sharing my Mam’s recipe for barmbrack – an Irish household standard. When I lived in Hong Kong, the locals enthusiastically adopted western Hallowe’en culture with local amusement parks Ocean Park and Hong Kong Disneyland competing to create the scariest experience for young people and dating couples. They mixed western and local horror motifs. It’s amazing how thanks to the mass media Hallowe’en has become a global cultural event. More on that later.

    As for the significance of the number 15? It seems to have deep significance in modern culture with a wide range of artists including Taylor Swift and Marilyn Manson using it as the title of songs, albums or mixtapes. Additionally, the number has some significance in Judaism. The number 10 represents the hand of God and the number 5 represents to save or rescue. If we add 10 plus five, we get 15. The symbolic meaning of 15 translates to “mercy,” which means compassion and forgiveness.

    New reader?

    If this is the first newsletter, welcome! You can find my regular writings here and more about me here

    Strategic outcomes

    Things I’ve written.

    • An honest review of the Apple Watch Ultra 2 – which is as much a critique of wearables as a category, as the device itself.
    • Cocaine Cowboys is a book on Irish crime, but the title is as interesting as the book in terms of its particular cultural resonance in Ireland and a reflection of the Irish experience.
    • Nike changes CEO John Donahue, as it faces unprecedented challenges due to unforced self-inflicted strategic errors.
    • Pagers and more things can be found here.

    Books that I have read.

    • Taylor Lorenz’ Extremely Online is a history of the social web from bloggers to the present day. Lorenz’ telling is very US-orientated but an interesting account of how influencers and brands evolved their social presence adapting to platform changes such as the disappearance of Vine. Aspects that I found fascinating included how influencers accelerated their following through offline events rather similar to Japan’s idol industry and the career resilience of the Paul brothers
    • The Murderers by Frederic Brown provides a criminal side view to a story in a world that one would recognise from James Ellroy‘s neo-noir crime world of Los Angeles.

    Things I have been inspired by.

    Tourism Ireland: Halloween.

    halloween
    Tourism Ireland

    Hallowe’en was a huge part of my childhood in an Irish household, bairn brack and tea, going around and collecting apples, dried fruit and hazelnuts from neighbouring houses, carving out a turnip lantern, making a papier-mâché mask, enjoying ghost stories on RTÉ radio and strange noises that came from the worsening weather and wildlife. However, America seems to have defined a lot of the narrative and globalised behaviours around the festival.

    Living in Asia, I saw revellers in Hong Kong and Japan enjoy the festival and borrow heavily from Hollywood from ET to the Halloween franchise. Like Irish-American cuisine, American Halloween is based on the European traditions brought to the new world and then reinterpreted.

    So I was fascinated to see Tourism Ireland’s campaign to reclaim Halloween from internally pervasive American soft power and Hollywood; going back to the festival’s pagan origins.

    Meaningful patient engagement

    Measuring and Demonstrating the Value of Patient Engagement Across the Medicines Lifecycle is a call to action to assess and measure patient engagement for the pharmaceuticals industry. It redefines the concept of patient-centricity – a popular concept that has become increasingly prominent and popular in the industry. (Disclosure, the paper involved a couple of former Concentric HX Wegovy launch colleagues: Fay Weston and Zoe Healey).

    The Change Makers

    Brand purpose has lost a good deal of unalloyed credibility in marketing circles (for some very good reasons). But that doesn’t mean that consumers got the memo. Havas’ The Rise of the Change Makers report looks at change through this lens. Like the Edelman Trust report, it has tracked the change in consumer zeitgeist over the past few years.

    Social effectiveness

    There was a couple of interesting research papers in the International Journal of Advertising. Firstly, digital detoxing by consumers seems to have a temporary inoculation against social media advertising when they return to using a social platform. Secondly, romance sells, or the psycho-romantic aspect of parasocial relationships sells – which should be taken into account when weighing up influencers that brands might want to partner with.

    Things I have watched. 

    Series three of ITV’s Van Der Valk’s reboot is a sleeper series that I have enjoyed watching with my Dad. Season 4 has debuted in the US on PBS, but there is no sign of it being picked up in the UK yet.

    Barry Foster
    Barry Foster

    The series is based on a series of thrillers written in the 1960s by Nicolas Freeling; the first one was Love in Amsterdam. The original TV adaptation featured Barry Foster as Van Der Valk whose performance gave the original show a unique look-and-feel.

    I watched some vintage Jack Ryan with a young Ben Affleck playing the CIA analyst in an adaption of The Sum of All Fears. This version is usually overlooked in favour of the modern TV series and the Harrison Ford films. Alan Bates played a delicious villain; an Austrian politician with far right tendencies. Bates’ character felt the most prescient of all the characters, while the thawing relationship with Russia feels further away with each passing week. Unfortunately, the franchise was left on the shelf for a while after this film was made; Ben Affleck made a good Dr Ryan and Liev Schreiber was a good foil as character John Clark – the real muscle in Tom Clancy’s books.

    Amazon Prime Video has some sleeper films if you dig around. Deliver Us From Evil is a respectable Korean action film with the classic ‘tragic hero’ plot line popularised in Hong Kong and Japanese cinema. While it has been compared to The Raid, there is an Old Boy feel to the violence. Much has been made of it starring Lee Jung-jae – known to global audiences for his role in Netflix’ Squid Game. It’s just under two hours of enjoyable escapism.

    I rewatched Inception for the first time since I saw it in the cinema. Since then we’ve had COVID and a generative AI-filled media sphere and the film hit different. It no longer felt exceptional in the way that films like Blade Runner and the Studio Ghibli back catalogue still do.

    Il Divo was one of a couple of DVDs that I bought instead of paying the Netflix tax. Il Divo appealed to me because of my love of real-life Italian intrigue, sparked by watching The Mattei Affair for the first time several years ago. I became reacquainted with it more recently again when I rewatched it. Il Divo covers the political intrigue of the 1970s and 1980s, in particular Giulio Andreotti, an Italian prime minister and failed presidential candidate. At the time Italy suffered from far left terrorist attacks and a reactionary right-wing movement that revolved a freemason lodge known as P2. Andreotti’s leadership is directly linked to a succession of deaths of enemies and associates during his career – which the film displays in an artful tableau at the beginning.

    It is a very complex time in modern Italian history and the story tries to pull different strands of the story in through different vignettes. Like The Mattei Affair before it, a certain amount is left up to the audience’s interpretation.

    Central Intelligence

    Not television, but my current favourite show on BBC Radio 4 is Central Intelligence, which is part of their Limelight drama content. I love it for a few reasons:

    • I grew up with cold war-era espionage books and The Troubles in Northern Ireland, so the security services stories owned a bit of real estate in my head. Given the way things have been going over the past decade, this kind of world has been raising its head again.
    • It’s a really well researched show with high production values on the history of the CIA told from the prospective of Eloise Page who joined the agency at its start and had a 40-year career.
    • Fantastic voice talent. Accomplished high profile film actress Kim Cattrall who has appeared in iconic film and television roles playing both comedic and meaty characters. Ed Harris is a fantastic, but less well known actor who appeared in classic movies from The Right Stuff and Walker to portraying The Man in Black in the Westworld TV series.

    Useful tools.

    Downloading images on a web page

    Imageye is a browser extension that helps you download all pages on a given web page. It can be handy for mood boards and social research.

    Getting to Heathrow

    I have had to do a bit of travel. Thankfully it has been well planned. One of the things that helped my planning and saved money is the Heathrow Express’ £10 Advanced Discounted Tickets. More details on the caveats surrounding the discount here.

    Buying cheaper

    MoneySavingSupermarket has a search engine of products available via Amazon Warehouse. If you’re a jobbing freelancer or just looking for something for your home – it allows you to buy that item a bit cheaper.

    The sales pitch.

    I am now taking bookings for strategic engagements from January 2025 onwards; or discussions on permanent roles. Contact me here.

    More on what I have done here.

    bit.ly_gedstrategy

    The End.

    Ok this is the end of my October 2024 newsletter, I hope to see you all back here again in a month. Be excellent to each other and onward into November, but not before you’ve charged your energy levels up on Hallowe’en treats!

    Don’t forget to share, comment and subscribe!

  • The John Donahue post

    Who is John Donahue?

    John Donahue is the outgoing CEO at Nike. Full disclosure, I have Nike in my wardrobe and I own a share in the company at the time of writing. Anyway back to Donahue, according to his biography on the Nike website:

    John Donahoe is President & CEO of NIKE, Inc. He is responsible for the continued growth of NIKE’s global business portfolio, which includes the Nike, Jordan and Converse brands. John became president and CEO of NIKE in January 2020 and has served on the Board of Directors since 2014. Previously, he was the president and CEO of ServiceNow and of eBay Inc., and he continues to serve as chairman of the board at PayPal. Earlier in his career, he worked for Bain & Company for nearly two decades, becoming the firm’s president and CEO in 1999. A former basketball player and lifelong sports fan, John received an MBA from Stanford Graduate School of Business and a bachelor’s degree in economics from Dartmouth College.

    john-donahoe
    John Donahue via the Nike website.

    He is a business strategy wonk and has extensive experience in online businesses and online commerce. When Apple had the vision thing, they hired Tim Cook – a famed operations and logistics executive in the technology industry to deliver. John Donahue had been hired to do great operational execution, by a company that was running low on the vision thing.

    Donahue may not have had permission to deal with some of the systemic issues in Nike and some of them issues might be due to the board itself.

    Penetration

    Nike’s collective strategy to move to D2C via its own retail stores and e-tailing platform was ostensively a way to increase profitability and presumably focus on heavier, brand loyal users. I can understand why they might have felt that due to the ubiquity of their products on the backs and feet of customers around the world.

    Secondly, prior to 2010 (and in most business schools still) the perceived wisdom was that modern marketing is supposedly about focusing on loyal, heavier buyers; focusing on retention (not acquisition) and return on investment.

    However, things changed in 2010; Ehrensberg Bass researchers Byron Sharp and Jenni Romaniuk summarise the marketing science research that their institution had been doing in their books How Brands Grow part one and part two. A key part of their findings was that brand loyalty is positively correlated with brand penetration – if you have higher levels of penetration then your customers will tend to be more loyal. However, if you have lower levels of penetration then your customers will tend to be less loyal. Smaller brands suffer from a double jeopardy of sorts: their sales are lower because they have fewer buyers, who buy the brand less often. 

    Which kind of makes sense. When you go to a supermarket, you can only buy what’s on the shelf when you’re in the supermarket. It would take a lot to go and try another supermarket to just buy one product. Most people will just buy what they can on their list and maybe look at substitute products.

    Nike is a huge brand, but it wilfully reduced its marketing penetration, by reducing the amount of places it appeared. It withdrew or reduced engagement with a range of partners:

    • Amazon
    • DSW
    • Footlocker
    • JD Sports
    • Macys
    • Olympia Sports
    • Urban Outfitters
    • Zappos

    When Nike goes back to those partners, there will be a shift in the power dynamic away from Nike. These retailers have options because Nike let other brands in to fill the void it chose to leave behind.

    On LinkedIn, people have talked about this as Nike has a brand problem. This is far beyond a brand problem; but brand has suffered.

    Where’s the community?

    Nike’s Londoner celebrated community back in 2018. Nike has continued to win in culture with collaborations including Nigo and Yoon Ahn of Ambush. But the culture didn’t translate into the degree of sales that Nike wanted so far.

    Part of the reason for this is Nike’s focus on sub-cultures rather than broader transformational trends in middle class and working class consumers.

    On Running have built their brand around running groups. Nike used to have running clubs ran by staff at their retail outlets. They were also were supporting Charlie Dark’s Run Dem Crew in the early 2010s.

    When did Nike give competitors space in communities? Was it down to a pivot win focus from retail to online? Given that part of the rationale for Nike’s move to selling direct to customers was to be closer to them, this all seems really odd.

    Charlie Dark has since become a global running ambassador for Lululemon.

    Core competences

    In the late 1990s and early 2000s Nike sold watches. The most famous of which was the Triax range that angled the display to make it glanceable for runners. There were also Nike MP3 players made with Philips. There was also the Nike fuelband, an in-house attempt at a wearable.

    The company decided to focus on what it did well and has since made products that are complementary to Apple’s product line like watch straps and apps. Under Donahue’s watch Nike extended itself into the technology space with NFT offerings and metaverse experiences. Both of which seem to have been expensive follies.

    Fading stars

    Nike was formed at a unique point in time and over the decades has worked with a range of game-changing athletes who were known globally thanks to mass media and the internet.

    Nike’s biggest brand and star is still Michael Jordan. The Air Jordan 1 was launched in 1984. That means that the shoe design and when he played in it is older than the young people it is sold to. The linkage between the iconic jumpman performance and his signature shoe is becoming elongated by time.

    Granted Adidas sells the Superstar, the Stan Smith, the Samba and Gazelle shoes which are older than the Jordan 1. But Adidas doesn’t lean as heavily on any one design. Instead they rotate in and out of style. Even then Adidas has suffered from problems executing consistently such as the Yeezy scandal.

    Nike’s Dunk design comes from 1985, the Air Force 1 came out in 1982. They are not bad shoes, but they will fade in and out of style.

    Nike had also been relatively slow to take advantage of the surge of interest in women’s basketball with Caitlin Clark only getting a signature shoe deal this year.

    Nike also managed to grossly underestimate the demand for replica jerseys of its England and Australia women’s football teams.

    Jordan has since expanded into a brand that Nike has used to sponsor the likes of French football team Paris St Germain.

    In golf, Nike parted ways with Tiger Woods this year. Woods is launching his own line instead. While Nike has other golfers on its roster, they don’t have the cultural impact that Woods had on the game.

    The brand has better news in football where it has a deep bench of both teams and player sponsorships to draw on. Nike still has a great bench of athletes comparable to rivals like Adidas, and that’s the problem. They glitter like the Milky Way rather than radiate like the sun.

    The secondary market

    Hypebeasts

    The rise of streetwear as an industry took off in the late 1980s. Its origins go further back. You had Dapper Dan in Harlem in the 1980s, football casual culture, Japanese fashions and the California surf culture influence. Soon after it took off you had unobtainable items:

    • Major Force t-shirts – (Major Force was a Japanese hip hop and house label featuring artists like Hiroshi Fujiwara)
    • The Tommy Boy Carhartt Detroit jacket
    • Numerous Stüssy Tribe letterman jackets
    • Supreme drops from 1994 onwards

    Trying to scratch that itch made you a hype beast. I know hypebeasts who are 60 years old and have college age children. The signs of this secondary market being bubbly could be seen back before COVID.

    The end of easy money

    Nike like other premium brands benefited during COVID-19, when interest rates were low and consumers had money in their pockets. Interest rate rises, inflation and an economic dip took away the easy money. Nike doesn’t seem to have factored this into its expectations. The decline in Chinese economic growth, seems to have hit Nike particularly hard.

    The polyurethane problem

    Nike shoes took off on them being tradable alternative assets like sports cards, or vintage bottles of wine. Nike trainers have a shelf life due to the materials that they are made from. Adhesive bonds can be reapplied, stitching can be repaired, but polyurethane midsoles crumble over time and can’t be replaced.

    The plastic breaks down and and the soles disintegrate. I have had pairs go at the four year mark. Chemistry undermines the collector segment that supports much of the secondary market for Nike products.

    A long train running

    Passengers relax and view the scenery from the lounge car of the Empire Builder enroute from Chicago to East Glacier Park Montana, and Seattle, Washington, June 1974

    John Donahue was in charge when Nike had unprecedented decline in sales. But there have been issues for a long time. Donahue was executing on a strategy for direct-to-consumer sales via its own retail stores and online, that Nike had committed to prior to his arrival as CEO.

    This is obvious from John Donahue’s recruitment process.

    • Donahue’s reputation was helped by his roles at ServiceNow and eBay
    • Donahue was a former partner at Bain and a friend to many in Silicon Valley
    • He received his MBA from Stanford School of Business – which is a great institution and happens to be the one that Phil Knight went to.

    What Nike didn’t do was commission a headhunter, hold a beauty parade or anything akin to a rigorous recruitment process in hiring their CEO.

    All of which points a board-wide issue rather than just a CEO issue. Which begs the question, will Nike become the sports apparel version of Yahoo!? A rotation of CEOs, intractable board level issues and an inevitable slide out of the limelight? Nike has been wrong-footed before, it was clobbered by the rise of Timberland in the early 1990s driven by the brown boots usefulness for standing on cold wet street corners in the criminal underworld adjacent to hip hop culture. But Nike came back. That was a different Nike with a more energetic Phil Knight and Tinker Hatfield.

    The scale of this stumble seems bigger and faster than before. Nike might not be resilient enough to withstand it.

    The innovation problem

    Former Nike designer Steve McDonald has painted a very different picture on Nike innovation internally within the company than has been seen on the outside. Outdoor sub-brand ACG was ‘never supported‘ when it was launched back in 1989. It was an immensely political environment with star-designer Tinker Hatfield warring with rival designers. Instead Nike used golden birdcage contracts to lock up and stifle talent. Hatfield is in charge of Nike’s Innovation Kitchen, but there seems to be a lack of commercially beneficial output.

    Hatfield’s days as a star designer are numbered following several decades at the top and there doesn’t seem to be a star-status worthy successor coming though.

    Nike seemed to abandon mainstream sustainable innovation some time after 2012, with its ISPA range as a sporadic tokenism to green issues.

    NikeLab – a premium line that fits in with On Running’s apparel seems to receive only sporadic support. All of which implies that product innovation had problems way before Hoka and On Running turned up.

    Nike’s Vaporfly running shoes were originally released back in 2018 and by 2020, World Athletics rule changes meant that Nike has a range of competitors providing similar shoes.

    The next battle ground has been fought over consumers focusing on wellness and fitness. When Hoka and On Running did turn up, Nike didn’t have much in the tank to respond.

    It was really brought home to me in sportswear-loving Merseyside where On Running shoes are the universal choice of everyone from office workers to scallies. Before COVID they’d all be in Nikes with the Air Max 95s being particularly popular.

    More information

    Nike withdraws full-year guidance ahead of CEO transition | FT

    Nike tries to get back in the race as sneaker sales gather pace | FT

    As Nike cuts ties with retailers, competitors try to take its wholesale place | Modern Retail

    Steve McDonald on Instagram

  • Cocaine Cowboys + more things

    Cocaine Cowboys

    Cocaine Cowboys by Nicola Tallant tells the story of the Kinahan organisation. The Kinahan organisation is a group that wholesales and retails illegal drugs in association with other organised crime groups. Tellant explains how deprivation, geography and economic growth fuelled drug trafficking and abuse in Ireland. Isolated council estates and economic hardship drove a heroin epidemic. The subsequent Asian Tiger economy only uplifted young professionals who then were a ripe market for cocaine. Cocaine added to Ireland’s already difficult relationship with alcohol use and abuse.

    Crime journalism such as this is popular in Ireland because it is so concentrated through blood and marriage ties. We don’t have the kind of diversity that the British criminal underworld has. This means that it’s much more ‘relevant’ to Irish society.

    But the book title itself is very interesting. There is a clear parallel to the scale of the cross-border drug trade between the US and Mexico.

    Opry le Daniel ar Thuras
    Irish country music star Daniel O’Donnell courtesy of TG4

    But there is also an underlying western theme across Irish culture. The vast majority of us are at most a few generations from the farm. We have had hard times which is why country music appealed and even morphed into a localised genre Country and Irish popular in rural areas and amongst lorry drivers (or in American truck drivers that drive ‘semis’.)

    Scania r620 at Kilcock, Co. Kildare - April 2012

    Tallant’s stance is definitely anti-Kinahan; but the book title Cocaine Cowboys gives them the hero status and taps deeply into the mainline that the cowboy and related elements like country music have into Irish culture at home and abroad. Cocaine Cowboys might be the inspiration for the next generation to replace the Kinahans.

    If you want to know more beyond the book Nicola Tallant and her colleagues at Irish tabloid the Sunday World host a podcast called Crime World.

    Branding

    Mozilla’s brand update gives its old T-Rex logo a fresh new look – The Verge

    China

    China threatens Calvin Klein owner with blacklist over Xinjiang cotton | FT

    China’s first industrial leases are expiring. Will their holders renew? | South China Morning Post – it will be interesting to see what the Hong Kong tongs do

    Consumer behaviour

    Death of the corkscrew? Only 27% of young people in UK own one, report says | The Guardian – Prevalence of screw-top bottles and abstinence among young people blamed for falling popularity of gadget

    Understanding Desire in the Age of Ozempic – The Atlantic – fascinating study in how GLP-1 treatments are not only reducing the desire for food, but also other products like alcohol and tobacco.

    After peak woke, what next? The Economistin the past decade, a form of wokeness has arisen on the illiberal left which is characterised by extreme pessimism about America and its capacity to make progress, especially on race. According to this view, all the country’s problems are systemic or structural, and the solutions to them are illiberal, including censorship and positive discrimination by race. This wokeness defines people as members of groups in a rigid hierarchy of victims and oppressors. Like the Puritans of old, adherents focus less on workable ideas for reducing discrimination than on publicly rooting out sinful attitudes in themselves and others (especially others). The Economist has analysed how influential these ideas are today by looking at public opinion, the media, publishing, higher education and the corporate world. Using a host of measures, we found that woke peaked in 2021-22 and has since receded. For example, polling by Gallup found that the share of people who worry a great deal about race relations climbed from 17% in 2014 to 48% in 2021, but has since fallen to 35%. Likewise, the term “white privilege” was used 2.5 times for every 1m words written by the New York Times in 2020. Last year it was used 0.4 times per 1m words. – Of course, woke’s failure could be viewed by proponents as a sign of deep-rooted systemic prejudice

    Economics

    Why Britain has stagnated? | Foundations – this reads true and hits hard. My parents came to the United Kingdom when the motorway network was being built, power stations were being constructed and the first generation of nuclear submarines were being constructed. In London the Victoria line was constructed. Now the UK struggles to build any infrastructure and its strategic industrial capabilities have been hollowed out or disappeared.

    FMCG

    Unilever moves on ‘sub-par’ marketing | WARCThat means consistent execution in marketing innovation, marketing quality, proposition sharpness, execution of pricing, execution of distribution. Fernandez suggested that, on a scale of 1-10, the business is currently at around six but needs to get to eight or nine (“ten doesn’t exist”). A&P spending is increasing as a proportion of revenue, from 13% in 2022, to 14.3% in 2023, and 15.1% in H1 2024. “There is an implicit recognition that our level of investment was not in line with our ambition of volume growth,” he said. That increased investment is not there to fund a growing volume of marketing content, he added. “I’m much more concerned about the quality of the stuff that we put in the market than the amount”. And that also means a focus on brand-building. “We see other people putting much more focus on promotional pricing,” he said, “but we always will prefer to invest in long-term, equity-building activities.” – CFO burns marketing teams ‘I believe our marketing was subpar”

    Hong Kong

    Dinner with strangers? Hongkongers craving real-world connections turn to ‘secret’ meet-ups | South China Morning Post – In a tapas restaurant in Hong Kong’s Causeway Bay, about 80 people are chatting away on the packed second floor, clinking glasses and sharing small plates while discussing issues ranging from mental health to childhood dreams.

    Innovation

    How a Chinese billionaire’s Silicon Valley splurge caught the eye of the FBI | FT

    Kyoto company developing autofocus glasses for sufferers of presbyopia and other conditions | SoraNews24 -Japan News-

    Luxury

    Burberry shares tumble to 15-year low amid questions over its luxury brand status – Retail Gazette contrast with top-tier luxury brand trajectory: Hermès chief eyes haute couture push as Paris house rides out luxury gloom – but has to wonder about Hermès leaning even further into Chinese market.

    Marketing

    Is marketing entering its ‘era of less’? | WARC – based on Gartner CMO surveys marketers are increasingly being seen as cost centres and are being asked to do more with less which is affecting mar tech spend, staffing and agency spend.

    Colgate-Palmolive: ‘The advertising is working’ | WARC

    EZ Newswire Signs Exclusive Distribution Deal with Reuters | Reuters – sounds like a PR placement automation?

    What’s fueling America’s Zyn obsession? | On Point

    Innovative research that literally put people in the driver’s seat | WARC – More than half of strategists (59%) are integrating AI into their strategy development process in a cautiously progressive way. They need to identify the skills that AI can’t replace, such as getting buy-in for a strategy, and double down on them. Speedy access to research and insight (74%) and streamlining repetitive tasks (74%) are the top opportunities strategists see in leveraging AI in the strategy process.

    Future of Strategy 2024: Synthetic data – speedy saviour or another example of the industry’s arrogance? | WARC it’ll be useful when time is of the essence, and you want to ‘speak’ to people and get their thoughts on your hypotheses, ideas or campaigns. In that scenario, I can see how that approach may replace an ad-hoc focus group set up hastily in the agency’s boardroom. But we’re not here purely to understand people. If the role of communications is to move people emotionally, shouldn’t we also be here to feel people? As Richard Huntington, CSO of Saatchi & Saatchi says: “You can’t feel data.” The beauty of humans (and the beauty of ethnography) is that so often it’s not what we say that powers an ‘insight’ or a strategy, a campaign or some NPD… it’s what people don’t say. It’s the nods and winks, the gestures, the objects with meaning they have in their homes and in their lives. That texture isn’t picked up by a typical conversation – be that with synthetic data or in a focus group. These feelings that are elicited from ethnography are the special sauce that can separate the wheat from the chaff.

    Break Through: How new and returning brands can grow with TV – System1 Group

    The Rise of The Populist Brand – Eavesdrop

    Online

    The TikTok, Shein, and Temu Conundrum – by Ivy Yang – TikTok’s defence: Shein and Temu have worse privacy profiles than we do

    Launch of Social Web Foundation | Social Web Foundation – set up by the great and the good of web 2.0, notably Tom Coates who brings a wealth of product expertise.

    AI Training is Copyright Infringement | Initiative Urheberrecht and The Intelligence Age | Sam Altman

    Security

    The Netherlands will not back EU-wide screening of app messages – DutchNews.nl

    The Pig Butchering Invasion Has Begun | WIRED

    Technology

    Qualcomm has approached Intel over buy-out | EE News Europe – antitrust related issues around the world

    OpenAI Is A Bad Business | Ed Zitron – the economics of generative AI are still bad, despite improvements in hardware design.

    How AlphaChip transformed computer chip design – Google DeepMind

    Tools

    How I Replaced Notion with Reminders, Numbers, and Notes | by Joan Westenberg – this is a prime example of what I have been hearing from other people. I have been using Notes app in particular from the get-go.

    Home | LibreOffice – Free and private office suite – Based on OpenOffice – Compatible with Microsoft – I have 35 years of content saved, and LibreOffice can open them all. When you’ve been writing for years, your manuscript formats will often be obsolete (though I’ve tried to make decisions that make my poems available platform agnostic, such as using plaintext, but line breaks and stanza breaks don’t always translate well in markdown). LibreOffice is an incredible tool for opening 25 year old wordperfect files when I need them.

    Web-of-no-web

    Meta’s Orion smart glasses look like the future of AR – The Verge

    Apple Knew Where the Puck Was Going, But Meta Skated There – the PAN or personal area network has been talked about for 20+ years. What this misses is that the Orion glasses were possible thanks to silicon carbide lens which are a non-trivial thing to manufacture at scale