Ged Carroll

Category: china | 中國 | 중국 | 中華

Ni hao – this category features any blog posts that relate to the People’s Republic of China, the Chinese communist party, Chinese citizens, consumer behaviour, business, and Chinese business abroad.

It is likely the post will also in other categories too.  For example a post about Tong Ren Tang might end up in the business section as well. Inevitably everything is inherently political in nature. At the moment, I don’t take suggestions for subject areas or comments on content for this category, it just isn’t worth the hassle.

Why have posts on China? I have been involved in projects there and had Chinese clients. China has some interesting things happening in art, advertising, architecture, design and manufacturing. I have managed to experience some great and not so great aspects of the country and its businesses.

Opinions have been managed by the omnipresent party and this has affected consumer behaviour. Lotte was boycotted and harassed out of the country. Toyota and Honda cars occasionally go through damage by consumer action during particularly high tensions with Japan.

I put stuff here to allow readers to make up their own  minds about the PRC. The size of the place makes things complicated and the only constants are change, death, taxes and the party. Things get even more complicated on the global stage.

The unique nature of the Chinese internet and sheltered business sectors means that interesting Galapagos syndrome type things happen.

I have separate sections for Taiwan and Hong Kong, for posts that are specific to them.

  • Kindle – tenth anniversary

    I was blown away when I realised that it was the tenth anniversary of the the Amazon Kindle. Ten years, think about that for a moment.

    Amazon Kindle & Sony eBook

    If you look at the original Kindle versus the latest model you can see how the design language moved from a ‘BlackBerry’ type product design to a smartphone type design. Along the way it benefited from improvements in e-ink display technology to provide a crisper viewing experience. Sony’s competitor might have looked more modern bit it didn’t manage to get the marketing mix and the hardware / services mix right.

    Sony’s failure indicated while you could be successful in a number of media markets, it didn’t guarantee success in other media.

    Rather like Apple products Kindle is a combination of hardware, software (including content), payment infrastructure and the Whispernet global mobile virtual network.

    Like Apple, Amazon came in and refined an existing business model. Companies like Sony made very nice e-readers, but they didn’t have the publisher relationships and market access that Amazon had.

    Context rather than convergence

    In a time where consumer electronics thinking was all about convergence, from the newly launched iPhone to the Symbian eco-system, Amazon were determined to come up with a single purpose device.

    Amazon resisted the trend and created a dedicated device for reading. That is why you have a black-and-white e-ink screen and an experience exclusively focused on seamless content downloads.

    Yes, they’ve rolled out tablets since, but even the latest range stick to the original Kindle playbook. Some of their decisions were quite prescient. The Kindle was deliberately designed so that it didn’t require content to be side loaded from personal computer like an iPod.

    The Kindle has survived the smartphone and the tablet device as a reading experience. Even if ebooks didn’t conquer the book publishing market in quite the way Amazon had planned.

    Using the U.S. legal system to clear the field

    Amazon was helped out by the US government prosecuting Apple under the Sherman Act. Wikipedia has a good summary of this case. On the face of it Apple was doing a similar structured deal with publishers on book pricing to what it had done previously with record companies for iTunes music.

    This case effectively stalled Apple book store momentum and lumbered Apple with overzealous US government overwatch. The consumer benefit has been minimal – more on that later. The irony of all this is the way Amazon has leveraged its monopolistic position to decimate entire sectors of the retail economy.

    The interesting thing about this case, say compared to the Apple | Qualcomm dispute is that Apple still kept Audible audio book sales in iTunes throughout this dispute and didn’t look at ways to bounce the iPad Kindle app from the app store. Audible is an Amazon-owned company.

    By comparison, Amazon bounced Apple’s TV from its own e-commerce platform and has taken a long time to support the AppleTV app eco-system – long after the likes of Netflix.

    Piracy in China

    Amazon hasn’t had it all its own way. China had a burgeoning e-book market prior to the Kindle and Chinese consumers used to read these books on their laptops.  Depending which store you used; it might have more books at a cheaper price because intellectual property wasn’t ironed out. This has undermined Amazon’s slow entry into the Chinese e-book marketplace.

    A cottage industry sprang up that saw Kindles acquired in the US and Japan shipped back to China and reflashed with software that made them compatible with the local app stores. These Kindles were bought at a subsidised price as Amazon looked to sell devices to sell books.

    The Kindle brain phenomenon

    I moved from the UK to Hong Kong to take up a role and tried to lighten my burden by moving my reading from books to the Kindle. I found that I didn’t retain the content I read. I enjoyed the process of reading less and did it less often. I wasn’t an e-book neophyte I had enjoyed reading vintage pulp fiction novels as ebooks on Palm devices and Nokia phones in the early 2000s as a way of passing them time on my commute.

    Talking to friends their experience was similar. I now read on the Kindle or listen to audio books only for pleasure. I tend to buy my reference books in the dead tree format. There is something more immediate about the process of reading from a ‘real book’ rather than an e-book.

    It seems that digital natives aren’t ready to give up books just yet. Studies about the use of digital technology and e-books in education are mixed and anecdotal evidence suggests that technology industry leaders liked to keep the level of digital content in their children’s lives at a low threshold.

    The Kindle hasn’t replaced the bookshelf and the printing press yet.

    Pricing

    Disposing of the medium didn’t mean that we got cheaper e-books. On Amazon it is worth looking carefully to see what is the cheapest format on a case by case basis. Kindle competes against print books and secondhand books.

    Secondhand books win hands down when you are looking at materials beyond bestsellers. A real-world book is easier to gift and Amazon Prime allows for almost instant gratification. The Kindle starts to look like Amazon covering all the bases rather than the future of publishing. This may change over time, a decade into online news was a more mixed media environment than it is now – but Kindle feels as if it has reached a balance at the moment. More related content here.

    More information

    New study suggests ebooks could negatively affect how we comprehend what we read | USA Today
    Shelve paperbacks in favour of E-books in schools? | BBC
    Study challenges popular beliefs on e-reading | The Educator
    Are Digital Textbooks Finally Taking Hold? | Good eReader – makes the case for a heterogenous book environment of standard textbooks, e-books and used books
    Do ‘Digital Natives’ Prefer Paper Books to E-Books? | Education Week
    Our love affair with digital is over | New York Times (paywall)

  • Tencent Ad Hub + more news

    Tencent Ad ‘Hub’ Connects Brands And Chinese Consumers | The Holmes Report – interesting that they have created a hub for this, the data implications and opportunities are huge. Tencent Ad Hub builds on the huge data set that Tencent already has with WeChat

    Energy

    Amid global electric-car buzz, Toyota bullish on hydrogen – not surprising to proof against lithium bubble

    FMCG

    McDonald’s flips fortunes with back to basics approach – they seem to yo-yo between price/convenience and product innovation. I wish they would bring back drip coffee

    Luxury

    Why Luxury Brands’ Approach to “Chinese Aesthetics” Fail | Jing Daily – interesting read with great examples. I’ve even noticed Shanghai Tang making a few mistakes

    Media

    Facebook blocks viral website Unilad’s page  | Telegraph – it is foolish to build something purely on a platform you don’t own

    Trust Indicators let you know more about a publisher on Facebook | TheNextWeb – guess this is part of the attempt against fake media, but its only a small part of the solution

    Here’s What You Should Be Talking About Instead of Video | Digital – AdAge – (paywall)

    The Economist unwinds: the luxury of print | The Drum – print as ‘lean back’ content

    Online

    Flickr: The Help Forum: Sorry, the photo couldn’t be added to the group because it is already in the maximum number of group pools. – Oath hasn’t been in the driving seat all that long and there are already issues in platform management. This follows on from shutting down the Yahoo! Finance data APIs

    Security

    How the Chinese Government Fabricates Social Media Posts for Strategic Distraction, not Engaged Argument by King, Pan & Roberts – Chinese regime’s strategy is to avoid arguing with skeptics of the party and the government, and to not even discuss controversial issues. We show that the goal of this massive secretive operation is instead to distract the public and change the subject, as most of the these posts involve cheerleading for China, the revolutionary history of the Communist Party, or other symbols of the regime (PDF) – fascinating study, more online related content here.

    Technology

    Sony: Colour Matching Between OLED and CRT | EETE LED Lighting – interesting that CRTs we’re still the reference standard (reg wall) (PDF) – Trinitron still counts for something

    The best laptop ever made – Marco.org – Marco nails it, the newer machines fall short and require a bag of dongles

  • TV synced online ads & other news

    TV synced online advertising

    TV synced Facebook News Feed ads yield 60% lift | Facebook Marketing Partners – TV synced advertising seems to have a similar effect to TV synced radio campaigns (PDF)

    Culture

    Hip-hop is getting old, man | Quartz – interesting discussion on cultural cycles.

    Soothsayer in the Hills Sees Silicon Valley’s Sinister Side – The New York Times – “If you’re a mark of social media, if you’re being manipulated by it, one of the ways to tell is if there’s a certain kind of personality quality that overtakes you,” he says. “It’s been called the snowflake quality. People criticize liberal college kids who have it, but it’s exactly the same thing you see in Trump. It’s this kind of highly reactive, thin-skinned, outraged single-mindedness. I think one way to think of Trump, even though he is a con man and he is an actor and he’s a master manipulator and all that, in a sense he’s also a victim. I’ve met him a few times over 30 years. And what I think I see is someone who has moved from kind of a New York character who was in on his own joke to somebody who is completely freaked out and outraged and feeling like he is on the verge of a catastrophe every second. And so my theory about that is that he was ruined by social media.”

    Design

    IBM Type – IBM have open sourced their tailor-made corporate font Plex

    Marketing

    Huawei’s new global corporate brand swagger | Analysis | Campaign Asia  – Huawei so closely reflects China’s new ambitions that it would be easy to consider the tech giant as a proxy for Brand China. But Tan bristles at the suggestion. “Huawei is a global company,” she reminds us. “You can see our overseas revenue is larger than China, so we really want to position our brand as a global brand.”

    Online

    Amazon to Sell Part of Its Cloud Business in China – WSJ – something to think about with your China data shards

    Long Live Short Video in China | The Daily | L2 – you also have streaming video, OTT etc

    CompuServe’s forums, which still exist, are finally shutting down | Fast Company – I remember my Landlord in college used CompuServe on dial-up and met his current wife though it

    Software

    Entering the Quantum Era—How Firefox got fast again and where it’s going to get faster – Mozilla Hacks – the Web developer blog – interesting insight into desktop software development now. Let’s see how this works for Firefox’s market share

    Web of no web

    Review: Jibo Social Robot | WIRED – interesting bits about robot human interaction

    Wireless

    WeChat users send 38 billion messages per day | Techinasia – WhatsApp is on 55 billion messages a day – according to Benedict Evans

  • The One Device: The Secret History of the iPhone by Brian Merchant

    I bought The One Device when it came out in July and have gone back and forth reading it. I’d read books on Silicon Valley before; the Apple eulogy  Insanely Great by Steven Levy which told of the graft and hard work that went into the original Macintosh or Where Wizards Stay Up Late by Hafner & Lyon which discussed engineers working really long works. My favourite one is still Robert X Cringely’s Accidental Empires that portrays Gates as a coupon-clipping megalomaniac and Steve Jobs as a sociopath cut from the same cloth as Josef Stalin.

    Merchant’s The One Device is different. It doesn’t eulogise in the same way, but it also lacks immediacy as it feels detached from its subject matter. Unlike Levy’s work, Apple didn’t cooperate with Merchant at all. The book is broad in scope and sometimes loses its way, each one of the chapters could have been an interesting short book in their own right and this leaves it being faintly unsatisfactory.  I guess this is one of the reasons why it took me so long to read it.

    In the meantime the book stirred controversy over quotes attributed to Tony Fadell about then colleague Phil Schiller.  This made me cast a critical eye over some of Merchant’s adventures in the book. In particular inside the Foxconn industrial complex.

    On a more positive note, Merchant’s vision is grander than previous authors. One man’s mission to pull all the intellectual threads together on what made up the iPhone. The iPhone moves from becoming the child of an over-worked and under-appreciated Apple engineering team to being the totem of a global village.

    If you’ve read a quality newspaper you know what he’s going to say about the global supply chain. He also touches on the decades of software and technology development that led up to the iPhone.  How its multi-touch interface came out of a 1990s doctoral thesis. Ultimately the value of Merchant’s book many not be his writing, but instead becoming a new template for journalists writing on Silicon Valley to look beyond the David & Goliath mono-myth and instead dig into the tangled history of innovation. More book reviews here.

  • Out and about: Chasing the Dragon

    October has been amazing month of cinema releases for me. The last I am going to write about is Chasing The Dragon. Hong Kong cinema is considered to be in its death throws. There are small independent films of course, but its far from its hey day with production houses known around the world like Shaw Brothers, Golden Harvest or Media Asia.

    Mainland productions have the money and many technical experts and directors now work across the border. Korea has come on in leaps and bounds taking up the overseas arthouse audience.

    There aren’t many new stars coming through, even in Chasing the Dragon; character actors and main stars are largely industry veterans since the 1990s. However, Chasing the Dragon gives me some hope for the Hong Kong film. Its an unashamedly Hong Kong film focusing on the economic boom of the 1960s and mid-1970s. It is a technical tour-de-force. Much of the Hong Kong shown in the film from old Wan Chai to the Kowloon walled city only exist in fading photographs. So much of it was green screened in instead.

    https://www.youtube.com/watch?v=Adj5dtSKF8U

    It is probably too local for a mainland audience to fully appreciate the nuances and historical references. It shows a Hong Kong on the ascendancy, rather than suffering under a century of shame. It also holds up an unflinching view of British colonialism with its rampant individual corruption.

    A modern British audience would have very little idea of how serving British police officers at all levels and government officials were central cogs in the corruption. Eventually the stench got to much when chief superintendent Peter Godber was found to have over $600,000 US stashed away.

    Andy Lau plays ‘Lee Rock’ a clear analogue of Lui Mo Lok (呂慕樂) a corrupt policeman known as the The Five-Hundred-Million-Dollar Inspector by Hong Kong people. In some respects one can view Chasing The Dragon as a reboot of the 1991 film Lee Rock II where Lau played the same character through the same time period. Chasing the Dragon adds verve, detail and taunt storytelling to the mix.

    The film is being shown at the Odeon in Panton Street.